News

Sensata Technologies Announces Fourth Quarter and Full Year 2010 Results

January 25, 2011 by Jeff Shepard

Sensata Technologies Holding N.V. announced results of its operations for the fourth quarter and full year ended December 31, 2010. Fourth quarter 2010 net revenue was $387.8 million, an increase of $49.8 million, or 14.7%, from the fourth quarter 2009 net revenue of $338.1 million. Fourth quarter 2010 net income was $68.6 million, or $0.38 per diluted share, versus net income of $13.9 million or $0.10 per diluted share for the same time period in 2009. Fourth quarter Adjusted Net Income(1) was $80.6 million, or $0.45 per diluted share, which is 20.8% of net revenue, versus the fourth quarter 2009 Adjusted Net Income(1) of $50.3 million, or $0.34 per diluted share, which is 14.9% of net revenue.

For the full year ended December 31, 2010, net revenue was $1,540.1 million, which was an increase of $405.1 million, or 35.7%, from $1,134.9 million for the same time period in 2009. Net income was $130.1 million, or $0.75 per diluted share, versus a net loss of $27.7 million or $(0.19) per share for the full year ended December 31, 2009. Adjusted Net Income(1) was $306.4 million, or $1.77 per diluted share, which is 19.9% of net revenue versus Adjusted Net Income(1) of $124.1 million, or $0.86 per diluted share, which is 10.9% of net revenue for the same time period in 2009.

Tom Wroe, Chairman and Chief Executive Officer, said, "We believe that our strong fourth quarter and full year results demonstrate the success of our strategy, our business model and the strength of our execution." Mr. Wroe added, "For 2011, we will continue to execute on our objectives of maintaining Sensata’s leadership position and growing revenues through increasing content, growth in both emerging and mature markets and identifying accretive acquisitions."

The company spent $22.2 million, or 5.7% of net revenue, on research, development and engineering related costs in the fourth quarter of 2010. These costs reside in both the cost of revenue and the research and development lines of the Statement of Operations.

Ending cash balance at December 31, 2010 was $493.7 million. During the fourth quarter, the Company generated cash of $98.4 million from operations, used cash of $17.8 million in investing activities and generated cash of $10.2 million from financing activities.

The company’s cash conversion cycle, which is defined as days sales outstanding (DSO) plus days on hand inventory (DOH) less days payable outstanding (DPO), was 49.3 days at the end of the fourth quarter compared to 53.4 days at September 30, 2010.

The company’s indebtedness at December 31, 2010 was $1.9 billion. The company’s net debt was $1.4 billion resulting in a leverage ratio of 3.1x. As of December 31, 2010, the company was in compliance with all of its financial ratios and reporting covenants included in its debt agreements related to its primary operating subsidiary, Sensata Technologies B.V.

Jeff Cote, Chief Administrative and Financial Officer, said "Sensata delivered a solid fourth quarter driven by continued growth in sensors and controls across geographies and product categories. Gross margin increased to a record 39.2%, while our robust cash generating capability allowed us to decrease our leverage in line with the targets we outlined earlier this year. We remain on track to further reduce leverage and drive profitable growth in 2011."