C&D Technologies, Inc. announced financial results for the fiscal 2011 third quarter ended October 31, 2010. For the third quarter, the company reported revenues of $87.6 million, up sequentially from $83.8 million in the second quarter of this fiscal year and the highest quarterly revenues this fiscal year. Third quarter gross profit was $10.8 million, little changed from $11.0 million for the immediately preceding quarter. Excluding restructuring charges as well as charges associated with the company’s recapitalization efforts, the company reported adjusted EBITDA of $3.5 million for the quarter. North American backlog is currently at $47.8 million, the highest monthly backlog since December 2008.
Dr. Jeffrey A. Graves, President and CEO, said, "The global strength of the C & D brand was demonstrated this quarter. Despite extremely challenging circumstances, we achieved our best revenue quarter of the fiscal year, a better than one book-to-bill ratio, and enter the fourth quarter with a stronger backlog than we have seen for a considerable time. Revenues in the quarter reflect sequential volume growth, driven by strong performance in Asia, a rebound in Europe, as well as the success of our new products, offset by the ongoing weakness in the North American large Uninterruptible Power Supply market. In addition, we continue to make progress improving operations, although large UPS volumes are weighing on margins and in managing Selling and Administrative costs. We generated over $3.5 million of adjusted EBITDA in the quarter through these efforts. Market uncertainties arising from our capital structure were certainly a factor on our business during this period, especially early in the quarter. But, these have largely been overcome on the strength of our deep customer relationships, our effective and ongoing communications with the market, and the steady progress of our restructuring efforts. With the market focused on value for price, C & D Technologies is benefitting from its industry leading reputation for providing the best-performing, highest-quality, most reliable and dependable energy storage solutions available to our markets."
For the third quarter, the company report a net loss of $6.4 million, or ($0.25) per diluted share on a GAAP basis. Excluding $1.8 million restructuring charges related to the previously announced closure of our Leola, PA manufacturing facility and professional fees associated with our recapitalization efforts of $1.3 million, the net loss in the quarter would have been $3.4 million. This compared to an adjusted net loss of $4.9 million in this year’s second quarter and a GAAP loss of $3.4 million, or ($0.13) per diluted share, in the comparable year ago quarter when there were no non-operational charges similar to those expensed in the second and third quarter of this year.
Dr. Graves concluded, "We are making progress with our capital restructuring efforts, which are required to address our capital structure challenges. As those activities proceed, our many dedicated employees remain focused on improving operations to more efficiently and effectively meet global energy storage needs, and for that, I am proud of all of our loyal employees. For over 100 years C & D Technologies has endured various business and economic cycles, and we are committed to continuing that legacy well into the future."
