Viasystems Group, Inc. today announced preliminary consolidated financial results for the fourth quarter ended December 31, 2009. Viasystems, a leading provider of complex multi-layer PCBs and electro-mechanical solutions, expects to become publicly traded on the NASDAQ market in the coming weeks, pending its successful merger with Merix Corporation.

Fourth-Quarter Highlights, Preliminary 

• Net sales of $131.4 million represents sequential sales growth of 8.5%.
• Gross margins, excluding depreciation, improved 180 basis points sequentially, to 22.5%.
• Adjusted EBITDA increased to $18.6 million, and Adjusted EBITDA margin increased 140 basis points over the prior quarter to 14.2% of net sales.
• Unrestricted cash on hand at December 31, 2009 was $109.0 million.
• The company announced its proposed merger with Merix Corporation.

"Viasystems, like Merix and the rest of our industry, experienced broad-based improvement in sales and bookings," said David Sindelar, CEO of Viasystems, "and our strong Adjusted EBITDA performance in the fourth quarter is evidence of our successful efforts to align our cost structure with demand."

Sindelar continued, "Upon the successful completion of the merger with Merix, Viasystems will list its shares on the NASDAQ. Although a group of current Viasystems shareholders will own a majority of the combined company, we expect that we will adopt all the governance and reporting standards applicable to widely held public companies under the NASDAQ Listing Standards, including maintaining a board of directors composed of a majority of independent directors and the establishment of independent audit, compensation and nominating committees."

Viasystems expects to publish its fourth quarter and full-year 2009 financial results and hold an investor conference call and Webcast later this quarter.

Use of Non-GAAP Financial Measure

In addition to condensed consolidated financial statements presented in accordance with U.S. GAAP, management uses certain non-GAAP financial measures, including "Adjusted EBITDA." Adjusted EBITDA is not a recognized financial measure under U.S. GAAP, and does not purport to be an alternative to operating income or an indicator of operating performance. Adjusted EBITDA is presented to enhance an understanding of our operating results and is not intended to represent cash flows or results of operations. Owners and management use Adjusted EBITDA as an additional measure of operating performance for matters including executive compensation and competitor comparisons. The use of this non-GAAP measure provides an indication of our ability to service debt, and Viasystems considers it an appropriate measure to use because of the company's highly-leveraged position.

Adjusted EBITDA has certain material limitations, primarily due to the exclusion of certain amounts that are material to consolidated results of operations, such as interest expense, income tax expense and depreciation and amortization. In addition, Adjusted EBITDA may differ from the Adjusted EBITDA calculation of other companies in the industry, limiting its usefulness as a comparative measure.