VAN BUREN TOWNSHIP, Mich.,
Aug. 6, 2014 /PRNewswire/
--
- Solid financial performance
- Sales of $2.04 billion
($1.78 billion excluding discontinued
operations)
- Record quarterly adjusted EBITDA of $193 million ($175
million excluding discontinued operations)
- Cash from operations of $31
million
- Continued progress under comprehensive shareholder value
creation plan
- Reached agreement to sell majority of interiors
business
- Completed acquisition of Johnson Controls' electronics
business on July 1
- Completed HVCC acquisition of thermal and emissions product
line of Cooper-Standard Automotive
- Purchased group annuity contract settling about one-third of
U.S. pension liability at cost approximately equivalent to balance
sheet liability
- Launched $500 million share
repurchase via an accelerated stock buyback
- Refinanced 6.75 percent bonds with 7-year Libor + 275 bps
term loan
- Increased full-year 2014 guidance for adjusted EBITDA,
adjusted free cash flow and adjusted earnings per share
- Reflects improved performance and impact of discontinued
operations, addition of newly acquired Johnson Controls electronics
for second half, and other transactions
- Announced preliminary guidance for 2015 reflecting 13
percent increase in revenue and 16 percent increase in adjusted
EBITDA compared with 2014
Visteon Corporation (NYSE: VC) today announced second-quarter
2014 results, reporting sales of $1.78
billion and a net loss attributable to Visteon of
$155 million, or a loss of
$3.35 per diluted share, which
includes a $173 million loss related
to the agreement to sell a majority of the interiors business.
Adjusted EBITDA, a non-GAAP financial measure as defined below, was
$193 million, compared with
$163 million in the same period last
year. As a result of the previously announced agreement to divest a
majority of its interiors business, Visteon reclassified a
significant portion of interiors results to discontinued operations
and recast prior periods accordingly.
![Visteon Corporation Logo. Visteon Corporation Logo.](http://photos.prnewswire.com/prnvar/20001201/DEF008LOGO)
"We achieved record quarterly adjusted EBITDA on the underlying
strength of our core thermal energy management and cockpit
electronics businesses," said Tim
Leuliette, president and CEO. "Our performance was buoyed by
some positive customer agreements, and we also completed several
actions under our value creation strategy – most notably the
acquisition of Johnson Controls' electronics business. With our two
profitable, technology-focused core businesses, Visteon is nicely
positioned for growth and for continuing to deliver exceptional
value to customers and shareholders."
Cash from operating activities including discontinued operations
in the second quarter totaled $31
million, compared to $36
million from the same period in 2013. Adjusted free cash
flow, a non-GAAP financial measure as defined below, including
discontinued operations, was a use of $18
million for the second quarter of 2014.
Continued Progress on Shareholder Value Creation Plan
Johnson Controls Electronics Acquisition
On
July 1, Visteon completed the
purchase of the automotive electronics business of Johnson Controls
in a cash transaction valued at $265
million, subject to adjustment. The newly combined
electronics enterprise has annual sales of more than $3 billion and holds the No. 2 global position in
driver information, with above-average growth rates for the cockpit
electronics segment.
HVCC Acquisition of Thermal and Emissions Product Line of
Cooper-Standard Automotive
On July 31, Halla Visteon Climate
Control Corp. (HVCC) completed the purchase of the automotive
thermal and emissions product line of Cooper-Standard Automotive
Inc., a subsidiary of Cooper-Standard Holdings Inc., in a move that
expands HVCC's thermal energy management product portfolio and
further diversifies its customer base. HVCC, which is 70 percent
owned by Visteon, announced the cash transaction, valued at
$46 million, on June 30.
Purchase of Group Annuity Contract for Certain U.S.
Pension Assets
Visteon on July
16 announced that it had entered into an agreement to
transfer certain U.S. pension assets to Prudential Insurance
Company of America, a subsidiary of Prudential Financial, Inc., to
settle approximately $350 million of
Visteon's $1.1 billion in outstanding
U.S. pension obligations. The transaction furthers Visteon's
objective of reducing risk in the pension plan and better managing
the ongoing cost volatility of such plans, while continuing to meet
its obligation to all current participants. The annuity purchase
requires no immediate cash contribution from the company and will
be funded by existing plan assets.
Refinancing Actions
In April, Visteon entered
into a credit agreement for a total commitment of $800 million, including a $600 million seven-year delayed draw term loan B
with a final maturity date of April 9,
2021, and a $200 million
five-year revolving credit facility with a maturity date of
April 9, 2019. On June 23, 2014, Visteon drew the $600 million term loan. In the second quarter of
2014, Visteon also redeemed its remaining $400 million of outstanding 6.75 percent senior
notes due April 15, 2019.
Share Repurchase Program
In May, Visteon entered into agreements with a third-party
financial institution to repurchase $500
million of its common shares under an accelerated stock
buyback (ASB) program. Visteon subsequently paid the $500 million and received initial share
deliveries totaling 4,523,158 shares in May. The total number of
shares that the company ultimately will receive will be determined
when the ASB program is completed, based generally on the daily
volume-weighted average share price of the company's common stock
during a period of up to approximately 12 months, minus an agreed
discount, 50 percent of which will be subject to a maximum per
share price.
Second Quarter in Review
Visteon reported second-quarter sales of $1.78 billion, an increase of $172 million compared with the same quarter a
year earlier. Climate sales totaled $1.33
billion, an increase of $85
million from the second quarter last year; electronics sales
of $443 million were up $89 million year-over-year. Hyundai-Kia accounted
for approximately 39 percent of Visteon's second-quarter sales and
Ford Motor Company accounted for 30 percent. On a regional basis,
Asia accounted for 51 percent of
sales, including the impacts of Yanfeng Visteon Electronics Co.
Ltd. (YFVE), in which Visteon acquired a controlling ownership
interest effective in November 2013;
Europe represented 27 percent;
North America 19 percent; and
South America 3 percent. An
additional $258 million of sales were
reclassified as discontinued operations.
Gross margin for the second quarter of 2014 was $194 million, compared with $163 million a year earlier. The $31 million increase included YFVE consolidation
impacts, higher sales volume and new business impacts, partially
offset by exchange. Selling, general and administrative (SG&A)
expenses were $84 million, or 4.7
percent of sales, for the second quarter of 2014 compared with
$77 million, or 4.8 percent of sales,
a year earlier. Equity in net income of non-consolidated affiliates
decreased by $31 million as a result
of the 2013 sale of the company's 50 percent ownership interest in
Yanfeng Automotive Trim Systems Co., Ltd.
For the second quarter of 2014, the company reported net loss
attributable to Visteon of $155
million, or a loss of $3.35
per diluted share. Net income attributable to Visteon decreased
$220 million compared with the same
period a year ago, reflecting an impairment loss on long-lived
assets held for sale of $173 million,
included in loss from discontinued operations; lower equity in net
income of non-consolidated affiliates of $31
million; and a loss on debt extinguishment of $23 million relating to the redemption of the
6.75 percent senior notes due April 2019. Adjusted EBITDA for
the second quarter of 2014 was $193
million, compared with $163
million for the same period a year earlier, primarily
reflecting the impact of YFVE, favorable volume and new business,
partially offset by currency impacts.
Cash and Debt Balances
As of June 30, 2014, Visteon had
global cash balances totaling $1.4
billion, including restricted cash of $12 million, cash held for sale of $114 million, and restricted cash held for sale
of $14 million. Total debt as of
June 30 was $960 million, including debt held for sale of
$32 million.
For the second quarter of 2014, Visteon generated $31 million of cash from operations including
discontinued operations, compared with $36
million in the same period a year earlier. The $5 million decrease was primarily driven by
timing of working capital, partially offset by higher
non-consolidated affiliate dividends. Capital expenditures
including discontinued operations in the quarter were $75 million, up from $51
million in the second quarter of 2013. Adjusted free cash
flow including discontinued operations was a use of $18 million in the quarter, compared with
$2 million generated in the second
quarter of 2013.
Full-Year 2014 Outlook
Visteon adjusted its full-year 2014 guidance for its key
financial metrics to reflect improved performance and the impact of
discontinued operations and several transactions, including the
Johnson Controls electronics acquisition. The company projects 2014
sales of $7.6 billion, adjusted
EBITDA including discontinued operations in the range of
$700 million to $730 million,
adjusted free cash flow in the range of $125
million to $165 million, and adjusted earnings per share in
the range of $2.98 to
$3.62.
Preliminary 2015 Guidance
Visteon provided preliminary guidance for 2015. The company
projects 2015 sales in the range of $8.5
billion to $8.7 billion, and adjusted EBITDA in the range of
$780 million to $820 million.
About Visteon
Visteon is a global automotive supplier delivering value for
vehicle manufacturers and shareholders through two high-growth core
businesses: automotive cockpit electronics and thermal management.
Visteon owns 70 percent of Halla Visteon Climate Control Corp., the
world's second largest provider of vehicle thermal management
solutions. Visteon designs, engineers and manufactures innovative
components and systems for virtually every vehicle manufacturer
worldwide. With corporate offices in Van
Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; Visteon has facilities in 32
countries and employs about 29,000 people. Visteon had sales of
$7.4 billion in 2013. Learn more at
www.visteon.com.
Conference Call and Presentation
Today, Wednesday, Aug. 6 at
9 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:
800-326-9418
Outside U.S./Canada:
706-643-3752
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, the financial
results news release, related presentation materials and other
supplemental information will be accessible through Visteon's
website at www.visteon.com.
A replay of the conference call will be available through the
company's website or by dialing
855-859-2056 (toll-free from the U.S. and Canada) or 404-537-3406 (international). The
conference ID for the phone replay is 74778818. The phone replay
will be available 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) conditions within
the automotive industry, including (i) the automotive vehicle
production volumes and schedules of our customers, (ii) the
financial condition of our customers and the effects of any
restructuring or reorganization plans that may be undertaken by our
customers or suppliers, including work stoppages, 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; (2) 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; (3) our ability
to satisfy pension and other post-employment benefit obligations;
(4) our ability to access funds generated by foreign subsidiaries
and joint ventures on a timely and cost-effective basis; (5) our
ability to execute on our transformational plans and cost-reduction
initiatives in the amounts and on the timing contemplated; (6)
general economic conditions, including changes in interest rates,
currency exchange rates and fuel prices; (7) the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations; (8) 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 (9) those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the
fiscal year ended Dec. 31,
2013).
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 financial results will be included in the
company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2014. New business wins and
rewins 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.
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 (U.S. GAAP). Such non-GAAP
financial measures are reconciled to their closest U.S. GAAP
financial measures at the end of this press release. The provision
of these comparable U.S. GAAP financial measures for full-year 2014
and 2015 is not intended to indicate that Visteon is explicitly or
implicitly providing projections on those U.S. 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 OPERATIONS
|
(Dollars in
Millions, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
June
30
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
1,782
|
|
|
$
|
1,610
|
|
|
$
|
3,500
|
|
|
$
|
3,196
|
|
Cost of
sales
|
1,588
|
|
|
1,447
|
|
|
3,127
|
|
|
2,883
|
|
Gross
margin
|
194
|
|
|
163
|
|
|
373
|
|
|
313
|
|
Selling, general and
administrative expenses
|
84
|
|
|
77
|
|
|
165
|
|
|
150
|
|
Loss on debt
extinguishment
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Restructuring
expenses
|
13
|
|
|
2
|
|
|
14
|
|
|
21
|
|
Equity in net income
of non-consolidated affiliates
|
11
|
|
|
42
|
|
|
13
|
|
|
86
|
|
Interest expense,
net
|
6
|
|
|
8
|
|
|
14
|
|
|
18
|
|
Other expenses
(income)
|
14
|
|
|
(3)
|
|
|
20
|
|
|
8
|
|
Income from
continuing operations before income taxes
|
65
|
|
|
121
|
|
|
150
|
|
|
202
|
|
Provision for income
taxes
|
41
|
|
|
39
|
|
|
72
|
|
|
36
|
|
Net income from
continuing operations
|
24
|
|
|
82
|
|
|
78
|
|
|
166
|
|
(Loss) income from
discontinued operations, net of tax
|
(165)
|
|
|
4
|
|
|
(171)
|
|
|
4
|
|
Net (loss)
income
|
(141)
|
|
|
86
|
|
|
(93)
|
|
|
170
|
|
Net income
attributable to non-controlling interests
|
14
|
|
|
21
|
|
|
43
|
|
|
36
|
|
Net (loss) income
attributable to Visteon Corporation
|
$
|
(155)
|
|
|
$
|
65
|
|
|
$
|
(136)
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
(0.04)
|
|
|
$
|
1.24
|
|
|
$
|
0.51
|
|
|
$
|
2.60
|
|
Discontinued operations
|
(3.31)
|
|
|
0.06
|
|
|
(3.40)
|
|
|
0.04
|
|
Basic (loss) earnings
per share attributable to Visteon Corporation
|
$
|
(3.35)
|
|
|
$
|
1.30
|
|
|
$
|
(2.89)
|
|
|
$
|
2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
(0.04)
|
|
|
$
|
1.23
|
|
|
$
|
0.49
|
|
|
$
|
2.57
|
|
Discontinued operations
|
(3.31)
|
|
|
0.06
|
|
|
(3.30)
|
|
|
0.04
|
|
Diluted (loss)
earnings per share attributable to Visteon Corporation
|
$
|
(3.35)
|
|
|
$
|
1.29
|
|
|
$
|
(2.81)
|
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
46.2
|
|
|
50.0
|
|
|
47.1
|
|
|
50.8
|
|
Diluted
|
46.2
|
|
|
50.5
|
|
|
48.4
|
|
|
51.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
$
|
(107)
|
|
|
$
|
50
|
|
|
$
|
(80)
|
|
|
$
|
90
|
|
Comprehensive (loss)
income attributable to Visteon Corporation
|
$
|
(131)
|
|
|
$
|
38
|
|
|
$
|
(124)
|
|
|
$
|
79
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Dollars in
Millions)
|
(Unaudited)
|
|
|
|
|
|
June
30
|
|
December
31
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
|
Cash and
equivalents
|
$
|
1,285
|
|
|
$
|
1,677
|
|
Restricted
cash
|
12
|
|
|
25
|
|
Accounts receivable,
net
|
1,129
|
|
|
1,227
|
|
Inventories,
net
|
462
|
|
|
472
|
|
Assets held for
sale
|
432
|
|
|
—
|
|
Other current
assets
|
305
|
|
|
352
|
|
Total current
assets
|
3,625
|
|
|
3,753
|
|
|
|
|
|
|
|
Property and
equipment, net
|
1,280
|
|
|
1,414
|
|
Intangible assets,
net
|
416
|
|
|
447
|
|
Investments in
non-consolidated affiliates
|
160
|
|
|
228
|
|
Other non-current
assets
|
168
|
|
|
185
|
|
Total
assets
|
$
|
5,649
|
|
|
$
|
6,027
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
127
|
|
|
$
|
106
|
|
Accounts
payable
|
1,036
|
|
|
1,207
|
|
Accrued employee
liabilities
|
152
|
|
|
202
|
|
Liabilities held for
sale
|
344
|
|
|
—
|
|
Other current
liabilities
|
274
|
|
|
287
|
|
Total current
liabilities
|
1,933
|
|
|
1,802
|
|
|
|
|
|
|
|
Long-term
debt
|
801
|
|
|
624
|
|
Employee
benefits
|
418
|
|
|
440
|
|
Deferred tax
liabilities
|
128
|
|
|
137
|
|
Other non-current
liabilities
|
148
|
|
|
151
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Stock
warrants
|
6
|
|
|
6
|
|
Additional paid-in
capital
|
1,236
|
|
|
1,291
|
|
Retained
earnings
|
820
|
|
|
956
|
|
Accumulated other
comprehensive loss
|
—
|
|
|
(12)
|
|
Treasury
stock
|
(752)
|
|
|
(322)
|
|
Total Visteon
Corporation stockholders' equity
|
1,311
|
|
|
1,920
|
|
Non-controlling
interests
|
910
|
|
|
953
|
|
Total
equity
|
2,221
|
|
|
2,873
|
|
Total liabilities and
equity
|
$
|
5,649
|
|
|
$
|
6,027
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
|
(Dollars in
Millions)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
June
30
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
OPERATING
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(141)
|
|
|
$
|
86
|
|
|
$
|
(93)
|
|
|
$
|
170
|
|
Adjustments to
reconcile net (loss) income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
long-lived assets
|
173
|
|
|
—
|
|
|
173
|
|
|
—
|
|
Depreciation and
amortization
|
64
|
|
|
65
|
|
|
130
|
|
|
132
|
|
Loss on debt
extinguishment
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
7
|
|
|
(41)
|
|
|
5
|
|
|
(82)
|
|
Stock-based
compensation
|
3
|
|
|
5
|
|
|
6
|
|
|
11
|
|
Other non-cash
items
|
5
|
|
|
(5)
|
|
|
5
|
|
|
(5)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
12
|
|
|
(45)
|
|
|
(78)
|
|
|
(87)
|
|
Inventories
|
—
|
|
|
8
|
|
|
(18)
|
|
|
(43)
|
|
Accounts
payable
|
(110)
|
|
|
(7)
|
|
|
21
|
|
|
183
|
|
Accrued income
taxes
|
10
|
|
|
1
|
|
|
12
|
|
|
(56)
|
|
Other assets and
other liabilities
|
(15)
|
|
|
(31)
|
|
|
(59)
|
|
|
(65)
|
|
Net cash provided
from operating activities
|
31
|
|
|
36
|
|
|
127
|
|
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(75)
|
|
|
(51)
|
|
|
(127)
|
|
|
(114)
|
|
Proceeds from
business divestitures and asset sales
|
25
|
|
|
22
|
|
|
60
|
|
|
39
|
|
Other
|
(1)
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
Net cash used by
investing activities
|
(51)
|
|
|
(29)
|
|
|
(71)
|
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt,
net
|
39
|
|
|
31
|
|
|
35
|
|
|
43
|
|
Proceeds from
issuance of debt, net of issuance costs
|
590
|
|
|
—
|
|
|
590
|
|
|
204
|
|
Repurchase of
long-term notes
|
(419)
|
|
|
—
|
|
|
(419)
|
|
|
—
|
|
Payments to
repurchase common stock
|
(500)
|
|
|
—
|
|
|
(500)
|
|
|
(125)
|
|
Dividends paid to
non-controlling interests
|
(29)
|
|
|
(22)
|
|
|
(45)
|
|
|
(22)
|
|
Other
|
3
|
|
|
(3)
|
|
|
3
|
|
|
(4)
|
|
Net cash (used by)
provided from financing activities
|
(316)
|
|
|
6
|
|
|
(336)
|
|
|
96
|
|
Effect of exchange
rate changes on cash and equivalents
|
7
|
|
|
(10)
|
|
|
2
|
|
|
(21)
|
|
Net (decrease)
increase in cash and equivalents
|
(329)
|
|
|
3
|
|
|
(278)
|
|
|
158
|
|
Cash and equivalents
at beginning of period
|
1,728
|
|
|
980
|
|
|
1,677
|
|
|
825
|
|
Cash and equivalents
at end of period
|
$
|
1,399
|
|
|
$
|
983
|
|
|
$
|
1,399
|
|
|
$
|
983
|
|
1 The Company has combined cash flows from
discontinued operations with cash flows from continuing operations
within the operating, investing and financing categories. As such,
cash and equivalents above include amounts reflected in assets held
for sale on the Consolidated Balance Sheets.
VISTEON CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited, Dollars in Millions)
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 equity in net income of
non-consolidated affiliates, net income attributable to
non-controlling interests, asset impairments, gains or losses on
divestitures, net restructuring expenses and other reimbursable
costs, non-cash stock-based compensation expense, certain employee
charges and benefits, reorganization items, and other non-operating
gains and losses. Because not all companies use identical
calculations, this presentation of Adjusted EBITDA may not be
comparable to similarly titled measures of other companies.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Estimated
|
|
Estimated
|
|
June
30
|
|
June
30
|
|
Full
Year
|
|
Full
Year
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
2015
|
Adjusted
EBITDA
|
$
|
193
|
|
|
$
|
163
|
|
|
$
|
363
|
|
|
$
|
304
|
|
|
$700 -
$730
|
|
$780 -
$820
|
Interest expense,
net
|
6
|
|
|
8
|
|
|
14
|
|
|
18
|
|
|
30
|
|
35
|
Provision for income
taxes
|
41
|
|
|
39
|
|
|
72
|
|
|
36
|
|
|
135
|
|
155
|
Depreciation and
amortization
|
61
|
|
|
59
|
|
|
121
|
|
|
119
|
|
|
260
|
|
290
|
Equity in
affiliates/Non-controlling interests
|
3
|
|
|
(21)
|
|
|
30
|
|
|
(50)
|
|
|
95
|
|
110
|
Loss on debt
extinguishment
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
—
|
Restructuring
expenses
|
13
|
|
|
2
|
|
|
14
|
|
|
21
|
|
|
30
|
|
50
|
Other expenses
(income)
|
14
|
|
|
(3)
|
|
|
20
|
|
|
8
|
|
|
42
|
|
25
|
Non-cash, stock-based
compensation expense
|
3
|
|
|
4
|
|
|
6
|
|
|
10
|
|
|
15
|
|
15
|
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
25
|
|
10
|
Discontinued
operations
|
183
|
|
|
10
|
|
|
198
|
|
|
8
|
|
|
375
|
|
—
|
Net (loss) income
attributable to Visteon
|
$
|
(155)
|
|
|
$
|
65
|
|
|
$
|
(136)
|
|
|
$
|
134
|
|
|
$(330) -
$(300)
|
|
$90 - $130
|
Adjusted EBITDA is not a recognized term under U.S. 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) because the Company's credit
agreements use similar measures for compliance with certain
covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash
flow and Adjusted free cash flow are presented as supplemental
measures of the Company's liquidity that management believes are
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 operating activities less capital expenditures. The
Company defines Adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, as further
adjusted for restructuring payments net of customer recoveries and
transformation-related payments. Because not all companies use
identical calculations, this presentation of Free cash flow and
Adjusted 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
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Cash provided from
operating activities
|
$
|
31
|
|
|
$
|
36
|
|
|
$
|
127
|
|
|
$
|
158
|
|
|
$300 -
$340
|
Capital
expenditures
|
(75)
|
|
|
(51)
|
|
|
(127)
|
|
|
(114)
|
|
|
(320)
|
Free cash
flow
|
$
|
(44)
|
|
|
$
|
(15)
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
($20) -
$20
|
Restructuring
payments, net
|
12
|
|
|
11
|
|
|
22
|
|
|
26
|
|
|
95
|
Transformation-related payments
|
14
|
|
|
6
|
|
|
24
|
|
|
27
|
|
|
50
|
Adjusted free cash
flow
|
$
|
(18)
|
|
|
$
|
2
|
|
|
$
|
46
|
|
|
$
|
97
|
|
|
$125 -
$165
|
Free cash flow and Adjusted free cash flow are not recognized
terms under U.S. GAAP and do not purport to be a substitute for
cash flows from operating activities as a measure of liquidity.
Free cash flow and Adjusted free cash flow have limitations as
analytical tools as they do not reflect cash used to service debt
and do not reflect funds available for investment or other
discretionary uses. In addition, the Company uses Free cash flow
and Adjusted free cash flow (i) as factors in incentive
compensation decisions and (ii) for planning and forecasting future
periods.
Adjusted Net Income and Adjusted Earnings Per Share:
Adjusted net income and Adjusted earnings per share are presented
as supplemental measures that management believes are useful to
investors in analyzing the Company's profitability. The
Company defines Adjusted net income as net income attributable to
Visteon plus net restructuring expenses, reorganization items,
discontinued operations and other non-operating gains and losses.
The Company defines Adjusted earnings per share as Adjusted net
income divided by diluted shares. Because not all companies use
identical calculations, this presentation of Adjusted net income
and Adjusted earnings per share may not be comparable to other
similarly titled measures of other companies.
|
Includes
Discontinued Operations
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Estimated
|
|
June
30
|
|
June
30
|
|
Full
Year
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Diluted (loss)
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Visteon
|
$
|
(155)
|
|
|
$
|
65
|
|
|
$
|
(136)
|
|
|
$
|
134
|
|
|
$(330)-$(300)
|
Average shares outstanding, diluted (in millions)
|
46.2
|
|
|
50.5
|
|
|
48.4
|
|
|
51.3
|
|
|
47.0
|
Diluted (loss)
earnings per share
|
$
|
(3.35)
|
|
|
$
|
1.29
|
|
|
$
|
(2.81)
|
|
|
$
|
2.61
|
|
|
$(7.02)-$(6.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Visteon
|
$
|
(155)
|
|
|
$
|
65
|
|
|
$
|
(136)
|
|
|
$
|
134
|
|
|
$(330)-$(300)
|
Other
expenses
|
54
|
|
|
3
|
|
|
61
|
|
|
33
|
|
|
130
|
Discontinued
operations related
|
182
|
|
|
3
|
|
|
187
|
|
|
9
|
|
|
340
|
Adjusted net
income
|
$
|
81
|
|
|
$
|
71
|
|
|
$
|
112
|
|
|
$
|
176
|
|
|
$140-$170
|
Average shares outstanding, diluted (in millions)
|
46.2
|
|
|
50.5
|
|
|
48.4
|
|
|
51.3
|
|
|
47.0
|
Adjusted earnings per
share*
|
$
|
1.75
|
|
|
$
|
1.41
|
|
|
$
|
2.31
|
|
|
$
|
3.43
|
|
|
$2.98-$3.62
|
Adjusted net income and Adjusted earnings per share are not
recognized terms under U.S. GAAP and do not purport to be a
substitute for profitability. Adjusted net income and Adjusted
earnings per share have limitations as analytical tools as they do
not consider certain restructuring and transaction-related payments
and/or expenses. In addition, the Company uses Adjusted net income
and Adjusted earnings per share for planning and forecasting future
periods.
* Full year adjusted earnings per share guidance excludes the
impacts of discontinued operations.
Logo - http://photos.prnewswire.com/prnh/20001201/DEF008LOGO
SOURCE Visteon Corporation