VAN BUREN TOWNSHIP,
Mich., May 2, 2012
/PRNewswire/ --
First Quarter Financial Summary
- Sales of $1.72
billion
- Net loss of $29 million,
includes $63 million of restructuring
and related costs
- Adjusted EBITDA of $150
million
- Cash from operations of $19
million, up $69 million
year-over-year
- Cash balances of $721
million; total debt of $596
million
Visteon Corporation (NYSE: VC) today announced first-quarter
2012 results, reporting a net loss of $29
million, or $0.56 per diluted
share, which includes $63 million of
restructuring and related costs, on sales of $1.72 billion, compared with $1.85 billion in the first quarter of 2011. Cash
provided from operating activities was $19
million for the first quarter of 2012, an improvement of
$69 million compared with the same
period a year earlier. First quarter cash flow included
$41 million of restructuring related
cash payments primarily associated with a facility closure.
(Logo: http://photos.prnewswire.com/prnh/20001201/DEF008LOGO
)
Hyundai-Kia accounted for approximately 32 percent of Visteon's
first-quarter product sales, with Ford Motor Company accounting for
26 percent, Renault-Nissan 10 percent and PSA Peugeot-Citroen 5
percent. On a regional basis, Asia
accounted for 43 percent of total product sales -- up from 42
percent a year earlier -- while Europe represented 36 percent, North America 16 percent and South America 5 percent.
"To deliver improving returns, we are investing in and winning
new business in our climate and electronics businesses," said
Donald J. Stebbins, chairman, chief
executive officer and president. "We are committed to increasing
customer and shareholder value in the growing worldwide automotive
industry. We will do so with a strong balance sheet, innovative
Visteon technology and with one of the strongest global
manufacturing and engineering footprints in the automotive supplier
industry."
The deconsolidation of a Korean Interiors joint venture from the
company's financial statements lowered sales on a year-over-year
basis by $114 million. Unfavorable
currency of $33 million and customer
pricing were partially offset by higher production volumes and new
business.
Gross margin for the first quarter of 2012 was $134 million, compared with $143 million a year earlier. Gross margin
decreased $9 million year-over-year,
reflecting unfavorable currency and product mix, partially offset
by positive cost performance. Selling, general and
administrative (SG&A) expense of $91
million for the first quarter of 2012 decreased $5 million, to 5.3 percent of product sales.
During the first quarter of 2012, Visteon recognized
$42 million of equity in the net
income of non-consolidated affiliates, compared with $44 million in the first quarter of 2011.
Visteon's 50 percent-owned affiliate, Yanfeng Visteon Automotive
Trim Systems Ltd. (YFV), and related affiliate interests
contributed $40 million in equity
income. On a U.S. GAAP basis, YFV's first-quarter 2012 sales
totaled $793 million, compared with
$720 million a year earlier -- a
10 percent increase.
For the first quarter of 2012, the company reported a net loss
of $29 million, or $0.56 per diluted share, which included
$63 million of costs associated with
restructuring and related activities. This compares with net income
of $39 million for the same period in
2011. Adjusted EBITDA (a non-GAAP financial measure, as defined
below) for the first quarter of 2012 was $150 million, compared with $160 million for the same period a year earlier.
On a year-over-year basis, decreases in adjusted EBITDA from
unfavorable product mix, currency, and equity in the net income of
non-consolidated affiliates were offset by net cost
performance.
Cash and Debt Balances
As of March 31, 2012, Visteon had
global cash balances of $721 million,
including $25 million of restricted
cash. Total debt was $596 million as
of March 31, 2012.
Visteon generated $19 million in
cash from operations in the first quarter of 2012, an improvement
of $69 million over the same period a
year earlier, when $50 million in
cash was used. Free cash flow (a non-GAAP financial measure, as
defined below) improved $71 million
in the first quarter of 2012 compared with the same quarter in
2011.
Updated Sales and Earnings Guidance for 2012
Visteon adjusted its sales and earnings guidance for full year
2012 to reflect discontinued operations associated with the
company's lighting business and to give full effect to the sale of
Grace Lake Corporate Center in Van Buren
Township, Mich. Based on these adjustments, the company
currently expects full-year 2012 product sales in the range of
$6.6 billion to $7.0 billion and
adjusted EBITDA in the range of $620 million
to $660 million. Free cash flow is expected to be in the
range of $5 million to $30
million.
Visteon is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, interior, electronic
and lighting products for vehicle manufacturers. With corporate
offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 27 countries and employs
approximately 25,000 people. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Wednesday, May 2, at
8:30 a.m. EDT, the company will host
a conference call for the investment community to discuss the
results and other related matters. The conference call is available
to the general public via a live audio webcast. The dial-in numbers
to participate in the call are:
U.S./Canada: 888-452-7086
Outside U.S./Canada:
706-643-3752
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, along with the
financial results release, presentation material and other
supplemental information, will be accessible through Visteon's
website at www.visteon.com.
Those interested in hearing a replay of the conference call can
do so through the company's website or by calling 855-859-2056
(toll-free if dialing from the U.S. and Canada) or 404-537-3406 (international). To
access the replay by phone, enter conference ID 72322435. The
replay will be available by phone for one week following the
conference call.
Forward-looking Information
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including, but not limited to: (1) our ability to
satisfy future capital and liquidity requirements; including our
ability to access the credit and capital markets at the times and
in the amounts needed and on terms acceptable to us; our ability to
comply with financial and other covenants in our credit agreements;
and the continuation of acceptable supplier payment terms; (2) our
ability to satisfy pension and other post-employment benefit
obligations; (3) our ability to access funds generated by foreign
subsidiaries and joint ventures on a timely and cost-effective
basis; (4) conditions within the automotive industry, including (i)
the automotive vehicle production volumes and schedules of our
customers, and in particular Ford's and Hyundai-Kia's vehicle
production volumes, (ii) the financial condition of our customers
or suppliers and the effects of any restructuring or reorganization
plans that may be undertaken by our customers or suppliers or work
stoppages at our customers or suppliers, and (iii) possible
disruptions in the supply of commodities to us or our customers due
to financial distress, work stoppages, natural disasters or civil
unrest; (5) new business wins and re-wins do not represent firm
orders or firm commitments from customers, but are based on various
assumptions, including the timing and duration of product launches,
vehicle productions levels, customer price reductions and currency
exchange rates; (6) general economic conditions, including changes
in interest rates, currency exchange rates and fuel prices; the
timing and expenses related to internal restructurings, employee
reductions, acquisitions or dispositions and the effect of pension
and other post-employment benefit obligations; (7) increases in raw
material and energy costs and our ability to offset or recover
these costs, increases in our warranty, product liability and
recall costs or the outcome of legal or regulatory proceedings to
which we are or may become a party; and (8) those factors
identified in our filings with the SEC (including our Annual Report
on Form 10-K for the fiscal year ended Dec.
31, 2011).
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our view only as of the
date of this release, and which we assume no obligation to update.
The financial results presented herein are preliminary and
unaudited; final interim financial results will be included in the
company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 2012.
Use of Non-GAAP Financial Information
This press release contains information about Visteon's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
comparable GAAP financial measures for full-year 2012 is not
intended to indicate that Visteon is explicitly or implicitly
providing projections on those GAAP financial measures, and actual
results for such measures are likely to vary from those presented.
The reconciliations include all information reasonably available to
the company at the date of this press release and the adjustments
that management can reasonably predict.
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Dollars in Millions, Except Per Share
Data)
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31
|
|
|
2012
|
|
2011
|
Sales
|
|
$
|
1,717
|
|
|
$
|
1,850
|
|
|
|
|
|
|
Cost of
sales
|
|
1,583
|
|
|
1,707
|
|
|
|
|
|
|
Gross
margin
|
|
134
|
|
|
143
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
91
|
|
|
96
|
|
Restructuring and other expenses
|
|
63
|
|
|
2
|
|
Operating (loss) income
|
|
(20)
|
|
|
45
|
|
|
|
|
|
|
Interest
expense
|
|
12
|
|
|
15
|
|
Interest
income
|
|
3
|
|
|
6
|
|
Equity in
net income of non-consolidated affiliates
|
|
42
|
|
|
44
|
|
|
|
|
|
|
Income
before income taxes
|
|
13
|
|
|
80
|
|
|
|
|
|
|
Provision
for income taxes
|
|
27
|
|
|
28
|
|
|
|
|
|
|
(Loss)
income from continuing operations
|
|
(14)
|
|
|
52
|
|
Income
from discontinued operations, net of tax
|
|
3
|
|
|
4
|
|
Net
(loss) income
|
|
(11)
|
|
|
56
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
|
18
|
|
|
17
|
|
|
|
|
|
|
Net
(loss) income attributable to Visteon
|
|
$
|
(29)
|
|
|
$
|
39
|
|
|
|
|
|
|
Per
share data:
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per share:
|
|
|
|
|
Continuing operations
|
|
$
|
(0.62)
|
|
|
$
|
0.69
|
|
Discontinued operations
|
|
0.06
|
|
|
0.08
|
|
Basic
(loss) earnings per share attributable to Visteon
|
|
$
|
(0.56)
|
|
|
$
|
0.77
|
|
|
|
|
|
|
Diluted
(loss) earnings per share:
|
|
|
|
|
Continuing operations
|
|
$
|
(0.62)
|
|
|
$
|
0.67
|
|
Discontinued operations
|
|
0.06
|
|
|
0.08
|
|
Diluted
(loss) earnings per share attributable to Visteon
|
|
$
|
(0.56)
|
|
|
$
|
0.75
|
|
|
|
|
|
|
Average
shares outstanding (in millions)
|
|
|
|
|
Basic
|
|
51.9
|
|
|
50.7
|
|
Diluted
|
|
51.9
|
|
|
52.0
|
|
|
|
|
|
|
Comprehensive income:
|
|
|
|
|
Comprehensive income
|
|
$
|
36
|
|
|
$
|
119
|
|
Comprehensive income attributable to Visteon
Corporation
|
|
$
|
11
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
|
March
31
|
|
|
December 31
|
|
2012
|
|
|
2011
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
696
|
|
|
|
$
|
723
|
|
Restricted
cash
|
25
|
|
|
|
23
|
|
Accounts
receivable, net
|
1,191
|
|
|
|
1,063
|
|
Inventories, net
|
381
|
|
|
|
381
|
|
Other
current assets
|
394
|
|
|
|
304
|
|
Total
current assets
|
2,687
|
|
|
|
2,494
|
|
|
|
|
|
|
Property
and equipment, net
|
1,384
|
|
|
|
1,412
|
|
Equity in
net assets of non-consolidated affiliates
|
679
|
|
|
|
644
|
|
Intangible
assets, net
|
340
|
|
|
|
353
|
|
Other
non-current assets
|
68
|
|
|
|
66
|
|
Total
assets
|
$
|
5,158
|
|
|
|
$
|
4,969
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
Short-term
debt, including current portion of long-term debt
|
$
|
93
|
|
|
|
$
|
87
|
|
Accounts
payable
|
1,155
|
|
|
|
1,010
|
|
Accrued
employee liabilities
|
161
|
|
|
|
189
|
|
Other
current liabilities
|
297
|
|
|
|
267
|
|
Total
current liabilities
|
1,706
|
|
|
|
1,553
|
|
|
|
|
|
|
Long-term
debt
|
503
|
|
|
|
512
|
|
Employee
benefits
|
417
|
|
|
|
495
|
|
Deferred
tax liabilities
|
196
|
|
|
|
187
|
|
Other
non-current liabilities
|
245
|
|
|
|
225
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Preferred stock
|
—
|
|
|
|
—
|
|
Common stock
|
1
|
|
|
|
1
|
|
Stock warrants
|
13
|
|
|
|
13
|
|
Additional paid-in capital
|
1,243
|
|
|
|
1,165
|
|
Retained earnings
|
137
|
|
|
|
166
|
|
Accumulated other comprehensive income
(loss)
|
15
|
|
|
|
(25)
|
|
Treasury stock
|
(11)
|
|
|
|
(13)
|
|
Total
Visteon Corporation shareholders' equity
|
1,398
|
|
|
|
1,307
|
|
Non-controlling interests
|
693
|
|
|
|
690
|
|
Total
shareholders' equity
|
2,091
|
|
|
|
1,997
|
|
Total
liabilities and shareholders' equity
|
$
|
5,158
|
|
|
|
$
|
4,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31
|
|
|
2012
|
|
2011
|
Operating Activities
|
|
|
|
|
Net (loss)
income
|
|
$
|
(11)
|
|
$
|
56
|
Adjustments to reconcile net (loss) income to net
cash
provided
from (used by) operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
65
|
|
77
|
Equity in net income of non-consolidated
affiliates,
net of dividends remitted
|
|
(42)
|
|
(44)
|
Other non-cash items
|
|
25
|
|
10
|
Changes in
assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(102)
|
|
(122)
|
Inventories
|
|
(21)
|
|
(41)
|
Accounts payable
|
|
126
|
|
75
|
Other
|
|
(21)
|
|
(61)
|
Net cash
provided from (used by) operating activities
|
|
19
|
|
(50)
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
Capital
expenditures
|
|
(53)
|
|
(55)
|
Other
|
|
—
|
|
1
|
Net cash
used by investing activities
|
|
(53)
|
|
(54)
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
Short-term
debt, net
|
|
—
|
|
3
|
Proceeds
from issuance of debt, net of issuance costs
|
|
2
|
|
—
|
Principal
payments on debt
|
|
(4)
|
|
(3)
|
Cash
restriction, net
|
|
—
|
|
4
|
Other
|
|
—
|
|
5
|
Net cash
(used by) provided from financing activities
|
|
(2)
|
|
9
|
Effect
of exchange rate changes on cash
|
|
9
|
|
21
|
Net
decrease in cash and equivalents
|
|
(27)
|
|
(74)
|
Cash
and equivalents at beginning of period
|
|
723
|
|
905
|
Cash
and equivalents at end of period
|
|
$
|
696
|
|
$
|
831
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Millions)
(Unaudited)
In this press release the Company has provided information
regarding certain non-GAAP financial measures including "Adjusted
EBITDA" and "free cash flow." Such non-GAAP financial
measures are reconciled to their closest GAAP financial measure in
the schedules below.
Adjusted EBITDA: Adjusted EBITDA is presented as a
supplemental measure of the Company's performance that management
believes is useful to investors because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful
in evaluating and comparing the Company's operating activities
across reporting periods. The Company defines Adjusted EBITDA as
net income attributable to Visteon, plus net interest expense,
provision for income taxes and depreciation and amortization, as
further adjusted to eliminate the impact of asset impairments,
gains or losses on divestitures, net restructuring expenses and
other reimbursable costs, certain non-recurring employee charges
and benefits, reorganization items, and other non-operating gains
and losses. Additionally, amounts below are inclusive of the
Company's discontinued operations. Because not all companies use
identical calculations this presentation of Adjusted EBITDA may not
be comparable to other similarly titled measures of other
companies.
|
|
Three
Months Ended
|
|
Estimated
|
|
|
March
31
|
|
Full
Year
|
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Visteon
|
|
$
|
(29)
|
|
|
$
|
39
|
|
|
$30 -
$70
|
Interest
expense, net
|
|
9
|
|
|
9
|
|
|
40
|
Provision
for income taxes
|
|
27
|
|
|
28
|
|
|
150
|
Depreciation and amortization
|
|
64
|
|
|
72
|
|
|
270
|
Restructuring expenses
|
|
41
|
|
|
2
|
|
|
70
|
Other
non-recurring costs, net
|
|
27
|
|
|
5
|
|
|
40
|
Discontinued operations
|
|
11
|
|
|
5
|
|
|
20
|
|
|
|
|
|
|
|
Total
Adjusted EBITDA
|
|
$
|
150
|
|
|
$
|
160
|
|
|
$620 -
$660
|
Adjusted EBITDA is not a recognized term under GAAP and does not
purport to be a substitute for net income as an indicator of
operating performance or cash flows from operating activities as a
measure of liquidity. Adjusted EBITDA has limitations as an
analytical tool and is not intended to be a measure of cash flow
available for management's discretionary use, as it does not
consider certain cash requirements such as interest payments, tax
payments and debt service requirements. In addition, the
Company uses Adjusted EBITDA (i) as a factor in incentive
compensation decisions, (ii) to evaluate the effectiveness of the
Company's business strategies, and (iii) the Company's credit
agreements use measures similar to Adjusted EBITDA to measure
compliance with certain covenants.
Free Cash Flow: Free cash flow is presented as a
supplemental measure of the Company's liquidity that management
believes is useful to investors in analyzing the Company's ability
to service and repay its debt. The Company defines free cash flow
as cash flow provided from (used by) operating activities less
capital expenditures. Because not all companies use identical
calculations, this presentation of free cash flow may not be
comparable to other similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Estimated
|
|
|
March
31
|
|
Full
Year
|
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
|
|
|
|
Cash
provided from (used by) operating activities
|
|
$
|
19
|
|
$
|
(50)
|
|
$245 -
$270
|
Capital
expenditures
|
|
(53)
|
|
(55)
|
|
240
|
|
|
|
|
|
|
|
Free cash
flow
|
|
$
|
(34)
|
|
$
|
(105)
|
|
$5 -
$30
|
|
|
|
|
|
|
|
|
|
Free cash flow is not a recognized term under GAAP and does not
purport to be a substitute for cash flows from operating activities
as a measure of liquidity. Free cash flow has limitations as an
analytical tool and does not reflect cash used to service debt and
does not reflect funds available for investment or other
discretionary uses. In addition, the Company uses free cash
flow (i) as a factor in incentive compensation decisions, and (ii)
for planning and forecasting future periods.
SOURCE Visteon Corporation