Kemet's sales flat; all $355 million of long-term debt due in 2018

By Lisa Kerner

Charlotte, N.C., May 29 - Kemet Corp.'s sales in its Americas business have been flat over the last five quarters. The company's biggest declines geographically were in Asia due to changes in the laptop market, according to a presentation on Wednesday at the 2013 KeyBanc Capital Markets Industrial, Automotive and Transportation Conference in Boston.

Total sales over the five quarters were as high as about $224 million to a low of $203 million.

"We ended last quarter with $135 million in the bank," said executive vice president and chief financial officer Bill Lowe during the presentation.

There were no changes on the debt side of the balance sheet for the quarter ended March 31, Lowe said.

All of Kemet's $355 million of long-term debt is due in 2018.

"We have a $50 million revolver, (and) $34 million of it is available, said Lowe.

A $16 million letter of credit is outstanding related to OEM contract debt.

The company is targeting a 25% gross margin on a consolidated basis and EBITDA margins of 10%, according to Lowe.

Roughly $12 million in overhead reductions are expected through fiscal year 2014.

"All in all, the balance sheet is stable," said Lowe.

Kemet is a Greenville, S.C.-based capacitor manufacturer.

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