PMTR with nice news out after the bell...
...should help the bottom line out nicely this quarter and in the future...
PEMSTAR Restructures Lease Obligations; Company Estimates in Excess of $2.5 Million Will Be Returned to Operating Profits
Thursday June 29, 4:05 pm ET
ROCHESTER, MN--(MARKET WIRE)--Jun 29, 2006 -- PEMSTAR Inc. (NasdaqNM:PMTR - News), a leading provider of global engineering, product design, manufacturing and fulfillment services to technology, industrial and medical companies, today announced a restructuring of the company's lease obligations under three separate lease termination agreements. The lease terminations are in relation to the Company's previously announced site closures, for which restructuring charges have been taken in the past three years. The amounts paid in settlement of these obligations were fully accrued in the remaining provisions for restructuring costs at March 31, 2006. The Company estimates that in excess of $2.5 million of such provisions will be returned to operating profits in the first quarter of its current fiscal year 2007 as a result of the lease termination agreements.
In addition, as a result of the lease termination agreements, PEMSTAR's future minimum payments under operating leases as of March 31, 2006 have been reduced to $10.7 million from $23.4 million.
As As
Previously Adjusted
(In thousands) Disclosed for Settlements
------- -------
Year Ending March 31,
2007 $ 6,596 $ 3,758
2008 4,982 2,020
2009 4,383 1,289
2010 3,861 1,010
2011 1,968 972
Thereafter 1,624 1,624
------- -------
Total minimum lease payments $23,414 $10,673
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Worrying does not empty tomorrow of it's troubles, it empties today of it's strength.
