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Stock Market & Financial Investment News

News Breaks
May 7, 2014
06:49 EDTMAGMagnetek reports Q1 EPS 35c, one estimate 32c
Reports Q1 revenue $24.1 vs. $25-06M a year ago.
News For MAG From The Last 14 Days
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February 23, 2015
17:08 EDTMAGMagnetek sees Q4 adjusted EPS $1.00-$1.02, may not compare to one estimate 65c
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17:03 EDTMAGMagnetek sees Q4 EPS ($9.50)-($9.35), may not compare to one estimate 65c
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16:51 EDTMAGMagnetek sees Q4 settlement charge of $37.1M
During 2014, in an effort to reduce the size, volatility, mortality risk, and costs of the pension plan, the company offered a lump sum payout of pension benefits to 2,970 eligible deferred vested participants. The program, which was funding-neutral, was completed in December 2014. A total of 2,230 participants, or 75%, elected the lump sum option, with a total amount of $46.9M paid out of pension plan assets. The company’s pension liability was reduced by a similar amount. In connection with the lump sum window, the company expects to record a non-recurring, non-cash settlement charge of $37.1M as a component of its pension expense in the fourth quarter of fiscal 2014. The settlement charge had no impact on the company’s cash flow or financial position and is expected to reduce future pension expense. As of the end of fiscal 2014, the company measured its pension plan for accounting purposes using a discount rate assumption of 3.55%, down from 4.45% at the end of fiscal 2013. The company currently expects to report a net pension liability in the range of $25M-$30M as of December 28, 2014. The net pension liability entering fiscal 2014 was $48M. From a funding standpoint, the company is not required to make any mandatory contributions to the pension plan in fiscal 2015, while projected future contributions to achieve fully funded status are currently estimated at $25M.

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