VAN BUREN TOWNSHIP, Mich.,
Aug. 2, 2012 /PRNewswire/
--
- Second quarter in line with company's
expectations
- Board of directors authorized $100
million share repurchase program
- Continued cost cutting resulted in 13 percent reduction
in SG&A
- Completed sale of lighting operations
- Announced sale of ownership stake in R-TEK Ltd., a UK
interiors joint venture
- Value creation through further portfolio optimization is
a priority
Visteon Corporation (NYSE: VC) today announced second-quarter
2012 sales of $1.69 billion, compared
with $2.05 billion during the same
period in 2011. Lower sales resulted from the deconsolidation of
Duckyang Industry Co. Ltd. and unfavorable currency
translation.
(Logo:
http://photos.prnewswire.com/prnh/20001201/DEF008LOGO )
Visteon reported net income of $75
million, or $1.40 per diluted
share, in the second quarter of this year, compared with net income
of $26 million, or $0.50 per diluted share, in the second quarter of
2011. Net income for the second quarter of 2012 included a net
positive impact of $32 million
related to an equity investment gain and the related tax impact,
restructuring and other expenses, and other non-recurring
costs.
"The quarter was in line with our expectations," said
Don Stebbins, chairman, chief
executive officer and president. "While we saw some impact from
lower vehicle production volumes in Europe and South
America related to economic weakness in those regions, as
well as from currency fluctuation, our performance was solid. We
continue to win new business through our innovative products and
technologies and take actions to achieve a full market
valuation."
Adjusted EBITDA (a non-GAAP financial measure, as defined below)
for the second quarter of 2012 was $151
million, compared with $203
million in the second quarter of 2011. Cash from operating
activities for the second quarter of 2012 was a use of $12 million, compared with a positive
$70 million in the second quarter of
2011, while free cash flow (a non-GAAP financial measure, as
defined below) was a use of $61
million, compared with a use of $1
million in the same period last year. The company ended the
second quarter of 2012 with total cash balances of $702 million and total debt of $597 million, compared with $861 million and $596
million, respectively, the year before.
Sale of Lighting and R-TEK
On Aug. 1, Visteon completed the
previously announced sale of its lighting business to Varroc Group
for $72 million, subject to price
adjustments. Visteon also agreed to sell its 50 percent equity
stake in the R-TEK Ltd. interiors joint venture in the UK for about
$30 million, with the transaction
expected to be completed by the end of August.
"Following recent successful transactions to strengthen our
business portfolio, we will continue to direct capital investments
to our climate and electronics businesses, while focusing on
driving the performance of the business and pursuing options for
the interiors segment," Stebbins said. "The sharp focus of the
executive team and Visteon's board of directors is on creating
accelerated near-term and consistent long-term value for our
customers and shareholders."
Share Repurchase Program
Visteon announced that its board of directors has authorized the
repurchase of up to $100 million
worth of its common shares over the next two years. Shares would be
repurchased from time to time in open market transactions or in
privately negotiated transactions depending on market and economic
conditions, share price, trading volume, alternative uses of
capital and other factors. Such purchases will be made in
accordance with applicable U.S. securities laws and
regulations.
Second Quarter in Review
Net sales of $1.69 billion for the
second quarter of 2012 decreased $353
million from $2.05 billion in
the same quarter a year earlier. Hyundai-Kia accounted for
approximately 33 percent of Visteon's second-quarter product sales,
with Ford Motor Company representing 27 percent, Renault-Nissan 8
percent and PSA Peugeot-Citroen 5 percent. On a regional basis,
Asia accounted for 43 percent of
total product sales – unchanged from a year earlier – while
Europe represented 34 percent –
down from 35 percent a year earlier. North America represented 17 percent of total
product sales for the second quarter of 2012, compared with 15
percent during the same quarter last year, and South America accounted for 6 percent,
compared with 7 percent in the second quarter of 2011.
Gross margin for the second quarter of 2012 was $128 million, compared with $192 million a year earlier. Gross margin
decreased $64 million year-over-year,
reflecting the non-recurrence of certain customer agreements,
unfavorable currency and volume, and the impact of Duckyang.
Selling, general and administrative (SG&A) expense of
$87 million for the second quarter of
2012 decreased $13 million.
During the second quarter of 2012, Visteon recognized
$103 million of equity in the net
income of non-consolidated affiliates, compared with $43 million in the second quarter of 2011.
Visteon's 50 percent-owned affiliate, Yanfeng Visteon Automotive
Trim Systems Co., Ltd. (YFV), and related affiliated interests
contributed $97 million in equity
income, including a non-cash gain of $63
million at YFV. The gain resulted from the step-up in
carrying value of an equity investment to fair value that was
consolidated effective June 1,
2012.
For the second quarter of 2012, the company reported net income
of $75 million, or $1.40 per diluted share. This compares with net
income of $26 million for the same
period of 2011. Adjusted EBITDA for the second quarter of 2012 was
$151 million, compared with
$203 million for the same period a
year earlier. On a year-over-year basis, decreases in adjusted
EBITDA from the non-recurrence of customer agreements, unfavorable
currency and volume, and equity in the net income of
non-consolidated affiliates were partially offset by positive net
cost performance.
Sales by Segment
Climate sales increased during the second quarter of 2012 by
$7 million, compared with the same
quarter last year. Higher production volumes and net new business
increased sales by $86 million,
primarily attributable to Asia,
Europe and North America. Unfavorable currency related to
the euro, Indian rupee and Korean won resulted in a decrease of
$55 million.
Electronics sales decreased during the second quarter of 2012 by
$52 million, compared with the second
quarter of 2011. Production volume declines, including the impact
of weakened economic conditions in Europe, resulted in a $30 million decline in sales. Unfavorable
currency, driven by the weakening of the euro, further decreased
sales by $17 million.
Interiors sales decreased during the quarter by $320 million, compared with the second quarter of
2011. Sales decreased $199 million
due to the deconsolidation of Duckyang. Sales were further
decreased by lower production volumes in Europe and South
America of $41 million and
$17 million, respectively.
Unfavorable currency related to the euro and Brazilian real
decreased sales $36 million.
First Six Months of 2012
For the first six months of 2012, the company reported net
income of $46 million, or
$0.86 per diluted share. This
compares with net income of $65
million for the same period of 2011, or $1.25 per diluted share. Adjusted EBITDA for the
first half of 2012 was $301 million,
compared with $363 million for the
same period a year earlier.
Cash and Debt Balances
As of June 30, 2012, Visteon had
global cash balances of $702 million,
including $21 million of restricted
cash. Total debt was $597 million as
of June 30, 2012. Year-to-date
through June 30, 2012, free cash flow
was a use of $95 million, an
improvement of $11 million compared
with the first six months of 2011.
Updated Sales and Earnings Guidance for 2012
Visteon adjusted its sales and earnings guidance for full-year
2012 to reflect the impact of lower vehicle production volumes in
Europe, South America and China, and the impact of unfavorable currency.
Based on these adjustments, the company currently expects full-year
2012 product sales in the range of $6.6
billion to $6.8 billion and adjusted EBITDA in the range of
$580 million to $620 million. Free
cash flow is expected to range from a use of $20 million to positive $20 million.
About Visteon
Visteon is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, interior and
electronic products for vehicle manufacturers. With corporate
offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 28 countries and employs
approximately 22,000 people. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, Aug. 2, at
8 a.m. EDT, the company will host a
conference call for the investment community to discuss the
quarter's results and other related items. 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 87656749. 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 production 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
June 30, 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
|
|
Six
Months Ended
|
|
|
June
30
|
|
June
30
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Sales
|
|
$
|
1,693
|
|
$
|
2,046
|
|
$
|
3,410
|
|
$
|
3,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,565
|
|
1,854
|
|
3,148
|
|
3,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
128
|
|
192
|
|
262
|
|
335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
87
|
|
100
|
|
178
|
|
196
|
Restructuring and other expenses
|
|
11
|
|
26
|
|
74
|
|
28
|
Operating income
|
|
30
|
|
66
|
|
10
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
10
|
|
12
|
|
22
|
|
27
|
Interest
income
|
|
4
|
|
5
|
|
7
|
|
11
|
Loss on
debt extinguishment
|
|
—
|
|
24
|
|
—
|
|
24
|
Equity in
net income of non-consolidated affiliates
|
|
103
|
|
43
|
|
145
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
127
|
|
78
|
|
140
|
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
42
|
|
34
|
|
69
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
from continuing operations
|
|
85
|
|
44
|
|
71
|
|
96
|
(Loss)
income from discontinued operations, net of tax
|
|
(1)
|
|
—
|
|
2
|
|
4
|
Net
income
|
|
84
|
|
44
|
|
73
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests
|
|
9
|
|
18
|
|
27
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Visteon
|
|
$
|
75
|
|
$
|
26
|
|
$
|
46
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.43
|
|
$
|
0.51
|
|
$
|
0.83
|
|
$
|
1.20
|
Discontinued operations
|
|
(0.02)
|
|
—
|
|
0.04
|
|
0.08
|
Basic
earnings per share attributable to Visteon
|
|
$
|
1.41
|
|
$
|
0.51
|
|
$
|
0.87
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.42
|
|
$
|
0.50
|
|
$
|
0.82
|
|
$
|
1.17
|
Discontinued operations
|
|
(0.02)
|
|
—
|
|
0.04
|
|
0.08
|
Diluted
earnings per share attributable to Visteon
|
|
$
|
1.40
|
|
$
|
0.50
|
|
$
|
0.86
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
53.3
|
|
51.0
|
|
53.1
|
|
|
50.9
|
Diluted
|
|
53.7
|
|
51.9
|
|
53.5
|
|
|
52.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
$
|
31
|
|
$
|
93
|
|
$
|
67
|
|
$
|
212
|
Comprehensive income attributable to Visteon
Corporation
|
|
$
|
29
|
|
$
|
66
|
|
$
|
40
|
|
$
|
158
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
June
30
|
|
December 31
|
|
2012
|
|
2011
|
ASSETS
|
|
|
Cash and
equivalents
|
$
|
681
|
|
|
$
|
723
|
|
Restricted
cash
|
21
|
|
|
23
|
|
Accounts
receivable, net
|
1,166
|
|
|
1,071
|
|
Inventories, net
|
380
|
|
|
381
|
|
Other
current assets
|
430
|
|
|
296
|
|
Total
current assets
|
2,678
|
|
|
2,494
|
|
|
|
|
|
Property
and equipment, net
|
1,264
|
|
|
1,412
|
|
Equity in
net assets of non-consolidated affiliates
|
714
|
|
|
644
|
|
Intangible
assets, net
|
328
|
|
|
353
|
|
Other
non-current assets
|
60
|
|
|
66
|
|
Total
assets
|
$
|
5,044
|
|
|
$
|
4,969
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
Short-term
debt, including current portion of long-term debt
|
$
|
94
|
|
|
$
|
87
|
|
Accounts
payable
|
1,067
|
|
|
1,010
|
|
Accrued
employee liabilities
|
171
|
|
|
189
|
|
Other
current liabilities
|
227
|
|
|
267
|
|
Total
current liabilities
|
1,559
|
|
|
1,553
|
|
|
|
|
|
Long-term
debt
|
503
|
|
|
512
|
|
Employee
benefits
|
408
|
|
|
495
|
|
Deferred
tax liabilities
|
199
|
|
|
187
|
|
Other
non-current liabilities
|
247
|
|
|
225
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
Preferred stock
|
—
|
|
|
—
|
|
Common stock
|
1
|
|
|
1
|
|
Stock warrants
|
13
|
|
|
13
|
|
Additional paid-in capital
|
1,250
|
|
|
1,165
|
|
Retained earnings
|
212
|
|
|
166
|
|
Accumulated other comprehensive loss
|
(31)
|
|
|
(25)
|
|
Treasury stock
|
(12)
|
|
|
(13)
|
|
Total
Visteon Corporation shareholders' equity
|
1,433
|
|
|
1,307
|
|
Non-controlling interests
|
695
|
|
|
690
|
|
Total
shareholders' equity
|
2,128
|
|
|
1,997
|
|
Total
liabilities and shareholders' equity
|
$
|
5,044
|
|
|
$
|
4,969
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
June
30
|
|
June
30
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Operating Activities
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
84
|
|
|
$
|
44
|
|
|
$
|
73
|
|
|
$
|
100
|
|
Adjustments to reconcile net income to net cash (used
by)
provided
from operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
67
|
|
|
85
|
|
|
132
|
|
|
162
|
|
Equity in net income of non-consolidated affiliates,
net
of dividends remitted
|
|
(92)
|
|
|
(39)
|
|
|
(134)
|
|
|
(83)
|
|
Loss on debt extinguishment
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
Other non-cash items
|
|
17
|
|
|
6
|
|
|
42
|
|
|
16
|
|
Changes in
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
9
|
|
|
(73)
|
|
|
(91)
|
|
|
(195)
|
|
Inventories
|
|
(11)
|
|
|
1
|
|
|
(32)
|
|
|
(40)
|
|
Accounts payable
|
|
(62)
|
|
|
4
|
|
|
64
|
|
|
79
|
|
Other assets and liabilities
|
|
(24)
|
|
|
18
|
|
|
(47)
|
|
|
(43)
|
|
Net cash
(used by) provided from operating activities
|
|
(12)
|
|
|
70
|
|
|
7
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(49)
|
|
|
(71)
|
|
|
(102)
|
|
|
(126)
|
|
Proceeds
from asset sales
|
|
79
|
|
|
9
|
|
|
80
|
|
|
10
|
|
Other
|
|
(1)
|
|
|
(5)
|
|
|
(2)
|
|
|
(5)
|
|
Net cash
provided from (used by) investing activities
|
|
29
|
|
|
(67)
|
|
|
(24)
|
|
|
(121)
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
Short-term
debt, net
|
|
4
|
|
|
6
|
|
|
4
|
|
|
9
|
|
Proceeds
from issuance of debt, net of issuance costs
|
|
—
|
|
|
502
|
|
|
2
|
|
|
502
|
|
Principal
payments on debt
|
|
—
|
|
|
(503)
|
|
|
(4)
|
|
|
(506)
|
|
Cash
restriction, net
|
|
—
|
|
|
48
|
|
|
—
|
|
|
52
|
|
Rights
offering fees
|
|
—
|
|
|
(33)
|
|
|
—
|
|
|
(33)
|
|
Dividends
to non-controlling interests
|
|
(22)
|
|
|
(24)
|
|
|
(22)
|
|
|
(24)
|
|
Other
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
Net cash
(used by) financing activities
|
|
(18)
|
|
|
(9)
|
|
|
(20)
|
|
|
—
|
|
Effect
of exchange rate changes on cash and equivalents
|
|
(14)
|
|
|
14
|
|
|
(5)
|
|
|
35
|
|
Net
(decrease) increase in cash and equivalents
|
|
(15)
|
|
|
8
|
|
|
(42)
|
|
|
(66)
|
|
Cash
and equivalents at beginning of period
|
|
696
|
|
|
831
|
|
|
723
|
|
|
905
|
|
Cash
and equivalents at end of period
|
|
$
|
681
|
|
|
$
|
839
|
|
|
$
|
681
|
|
|
$
|
839
|
|
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
|
|
Six
Months Ended
|
|
Estimated
|
|
|
June
30
|
|
June
30
|
|
Full
Year
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
|
$
|
75
|
|
|
$
|
26
|
|
|
$
|
46
|
|
|
$
|
65
|
|
|
$60 -
$100
|
Interest
expense, net
|
|
6
|
|
|
7
|
|
|
15
|
|
|
16
|
|
|
50
|
Loss on
debt extinguishment
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
Provision
for income taxes
|
|
42
|
|
|
34
|
|
|
69
|
|
|
62
|
|
|
140
|
Depreciation and amortization
|
|
67
|
|
|
79
|
|
|
131
|
|
|
151
|
|
|
265
|
Restructuring and other expenses
|
|
11
|
|
|
26
|
|
|
74
|
|
|
28
|
|
|
110
|
Equity
investment gain
|
|
(63)
|
|
|
—
|
|
|
(63)
|
|
|
—
|
|
|
(63)
|
Gain on
sale of R-Tek Ltd.
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
Other
non-recurring costs, net
|
|
2
|
|
|
—
|
|
|
7
|
|
|
5
|
|
|
10
|
Discontinued operations
|
|
11
|
|
|
7
|
|
|
22
|
|
|
12
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
Total
Adjusted EBITDA
|
|
$
|
151
|
|
|
$
|
203
|
|
|
$
|
301
|
|
|
$
|
363
|
|
|
$580 -
$620
|
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
|
|
Six
Months Ended
|
|
Estimated
|
|
|
June
30
|
|
June
30
|
|
Full
Year
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Cash (used
by) provided from operating activities
|
|
$
|
(12)
|
|
|
$
|
70
|
|
|
$
|
7
|
|
|
$
|
20
|
|
|
$220 -
$260
|
Capital
expenditures
|
|
(49)
|
|
|
(71)
|
|
|
(102)
|
|
|
(126)
|
|
|
(240)
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
$
|
(61)
|
|
|
$
|
(1)
|
|
|
$
|
(95)
|
|
|
$
|
(106)
|
|
|
($20) -
$20
|
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