VAN BUREN TOWNSHIP, Mich.,
Nov. 6, 2014 /PRNewswire/ --
- Achieves solid financial performance – consistent with
2014 guidance
- Sales of $1.97
billion
- Quarterly adjusted EBITDA of $142
million (excluding discontinued operations and including
approximately $21 million of
unfavorable currency); net loss attributable to Visteon of
$21 million
- Cash from operations of $53
million
- Reaffirms 2014 guidance despite unfavorable currency
impact
- Projects record incremental new business wins and rewins
for 2014
- Continues progress under comprehensive shareholder value
creation plan
- Completed sale of majority of interiors business to
Cerberus affiliate on Nov.
1
- Acquired Johnson Controls' electronics business effective
July 1
- Acquired thermal and emissions product line of
Cooper-Standard Automotive effective Aug.
1
- $500 million accelerated
stock buyback program substantially completed; additional
$375 million remains authorized for
repurchase through 2015
Visteon Corporation (NYSE: VC) today announced third-quarter
2014 results, reporting sales of $1.97
billion and a net loss attributable to Visteon of
$21 million, or a loss of
$0.46 per diluted share. Adjusted
EBITDA excluding discontinued operations, a non-GAAP financial
measure as defined below, was $142
million, compared with $126
million in the same period last year.
"We had a solid quarter and are on track to achieve our
full-year 2014 financial guidance," said Timothy D. Leuliette, president and CEO. "On
Nov. 1, we completed the sale of the
majority of our interiors business, underscoring our focus on our
two core growth businesses – cockpit electronics and thermal energy
management. We expect record incremental new business wins and
rewins of $2.4 billion to $2.8
billion this year, reflecting market support of our recent
acquisition of Johnson Controls' electronics business and the
inherent strength of our thermal energy product portfolio. We are
focused on introducing disruptive technologies that will drive
growth in each of our core businesses."
Cash from operating activities including discontinued operations
in the third quarter totaled $53
million, compared with $21
million from the same period in 2013. Adjusted free cash
flow, a non-GAAP financial measure as defined below, including
discontinued operations, was $18
million for the third 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 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), which is 70 percent owned by Visteon,
completed the purchase of the automotive thermal and emissions
product line of Cooper-Standard Automotive Inc., a subsidiary of
Cooper-Standard Holdings Inc. The transaction, valued at
$46 million, expanded HVCC's thermal
energy management product portfolio and diversified its customer
base.
Interiors Divestiture
On Nov. 1, Visteon completed the
previously announced divestiture of a majority of its interiors
business to Reydel Automotive Holdings B.V., an affiliate of
Cerberus Capital Management, L.P. This is the first in a series of
transaction closings with the Cerberus affiliate, with timing
dictated by government approvals and expected to continue through
the end of the first quarter of 2015. Terms of the sale are
consistent with those announced by Visteon on May 2, 2014. The transaction supports Visteon's
focus on its two global core automotive businesses: cockpit
electronics and thermal energy management.
Third Quarter in Review
Visteon reported third-quarter sales of $1.97 billion, an increase of $486 million compared with the same quarter a
year earlier. Climate sales totaled $1.21
billion, an increase of $80
million from the third quarter last year. Electronics sales
of $760 million were up $420 million year-over-year, primarily
attributable to the acquisition of the global automotive
electronics business of Johnson Controls Inc., effective
July 1, 2014, and the acquisition of
a controlling ownership interest in Yanfeng Visteon Automotive
Electronics Co., Ltd. (YFVE), effective Nov.
7, 2013.
Hyundai-Kia accounted for approximately 32 percent of Visteon's
third-quarter sales and Ford Motor Company accounted for 25
percent. On a regional basis, Asia
accounted for 47 percent of sales, Europe represented 28 percent, North America 22 percent, and South America 3 percent. An additional
$208 million of sales were
reclassified as discontinued operations.
Gross margin for the third quarter was $192 million, compared with $135 million a year earlier. The $57 million increase included the impact of a
$25 million pension settlement gain
related to the company's purchase of a non-participating annuity
contract resulting in the settlement of approximately $350 million of the U.S. defined benefit pension
plan's outstanding pension benefit obligation. Selling, general and
administrative (SG&A) expenses were $107
million, or 5.4 percent of sales, for the third quarter of
2014, compared with $73 million a
year earlier. Year-over-year results for gross margin and SG&A
were both impacted by the Johnson Controls electronics business
acquisition and the YFVE consolidation.
Equity in net income of non-consolidated affiliates decreased by
$46 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 third quarter of 2014, the company reported a net loss
attributable to Visteon of $21
million, or a loss of $0.46
per diluted share. Net income attributable to Visteon decreased
$64 million compared with the same
period a year ago, reflecting lower equity in net income of
non-consolidated affiliates of $46
million. The $25 million
pension settlement gain was offset by increased losses related to
the company's discontinued operations. Adjusted EBITDA excluding
discontinued operations for the third quarter of 2014 was
$142 million, compared with
$126 million for the same period a
year earlier, primarily reflecting the impact of the Johnson
Controls electronics and YFVE acquisitions. Increased volume,
including new business, and positive cost performance were offset
by $21 million of unfavorable
currency impacts and higher engineering expenditures to support
future growth.
Cash and Debt Balances
As of Sept. 30, 2014, Visteon had
global cash balances totaling $1.06
billion, including restricted cash of $12 million, cash held for sale of $99 million, and restricted cash held for sale of
$13 million. Total debt as of
Sept. 30 was $994 million, including debt held for sale of
$13 million.
For the third quarter of 2014, Visteon generated $53 million of cash from operations including
discontinued operations, compared with $21
million in the same period a year earlier. The $32 million increase was primarily driven by
timing of working capital, partially offset by lower
non-consolidated affiliate dividends and increased transformation
costs. Capital expenditures including discontinued operations in
the quarter were $82 million, up from
$50 million in the third quarter of
2013. Adjusted free cash flow including discontinued operations was
$18 million in the quarter, compared
with a use of $1 million in the third
quarter of 2013.
Full-Year 2014 Outlook
Visteon affirmed 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.
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 31
countries and about 29,000 people as of Sept. 30, 2014. Visteon had sales of $7.4 billion in 2013. Learn more at
www.visteon.com.
Conference Call and Presentation
Today, Thursday, Nov. 6 at
9 a.m. ET, 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
21376213. 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
Sept. 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
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
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
1,970
|
|
|
$
|
1,484
|
|
|
$
|
5,470
|
|
|
$
|
4,680
|
|
Cost of
sales
|
1,778
|
|
|
1,349
|
|
|
4,905
|
|
|
4,232
|
|
Gross
margin
|
192
|
|
|
135
|
|
|
565
|
|
|
448
|
|
Selling, general and
administrative expenses
|
107
|
|
|
73
|
|
|
272
|
|
|
223
|
|
Restructuring
expenses
|
9
|
|
|
10
|
|
|
23
|
|
|
31
|
|
Interest expense,
net
|
6
|
|
|
9
|
|
|
20
|
|
|
27
|
|
Equity in net income
of affiliates
|
2
|
|
|
48
|
|
|
15
|
|
|
134
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Other
expenses
|
20
|
|
|
6
|
|
|
40
|
|
|
14
|
|
Income from
continuing operations before income taxes
|
52
|
|
|
85
|
|
|
202
|
|
|
287
|
|
Provision for income
taxes
|
22
|
|
|
23
|
|
|
94
|
|
|
59
|
|
Net income from
continuing operations
|
30
|
|
|
62
|
|
|
108
|
|
|
228
|
|
(Loss) income from
discontinued operations, net of tax
|
(29)
|
|
|
(2)
|
|
|
(200)
|
|
|
2
|
|
Net income
(loss)
|
1
|
|
|
60
|
|
|
(92)
|
|
|
230
|
|
Net income
attributable to non-controlling interests
|
22
|
|
|
17
|
|
|
65
|
|
|
53
|
|
Net (loss) income
attributable to Visteon Corporation
|
$
|
(21)
|
|
|
$
|
43
|
|
|
$
|
(157)
|
|
|
$
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.18
|
|
|
$
|
0.91
|
|
|
$
|
0.69
|
|
|
$
|
3.51
|
|
Discontinued operations
|
(0.66)
|
|
|
(0.04)
|
|
|
(4.09)
|
|
|
—
|
|
Basic (loss) earnings
per share attributable to Visteon Corporation
|
$
|
(0.48)
|
|
|
$
|
0.87
|
|
|
$
|
(3.40)
|
|
|
$
|
3.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.18
|
|
|
$
|
0.89
|
|
|
$
|
0.67
|
|
|
$
|
3.44
|
|
Discontinued operations
|
(0.64)
|
|
|
(0.04)
|
|
|
(3.98)
|
|
|
—
|
|
Diluted (loss)
earnings per share attributable to Visteon Corporation
|
$
|
(0.46)
|
|
|
$
|
0.85
|
|
|
$
|
(3.31)
|
|
|
$
|
3.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
44.0
|
|
|
49.4
|
|
|
46.2
|
|
|
50.4
|
|
Diluted
|
45.4
|
|
|
50.4
|
|
|
47.5
|
|
|
51.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income:
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
$
|
(105)
|
|
|
$
|
115
|
|
|
$
|
(185)
|
|
|
$
|
205
|
|
Comprehensive (loss)
income attributable to Visteon Corporation
|
$
|
(112)
|
|
|
$
|
82
|
|
|
$
|
(236)
|
|
|
$
|
161
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
|
September
30
|
|
|
December
31
|
|
|
2014
|
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
Cash and
equivalents
|
$
|
936
|
|
|
$
|
1,677
|
|
Restricted
cash
|
12
|
|
|
25
|
|
Accounts receivable,
net
|
1,270
|
|
|
1,227
|
|
Inventories,
net
|
562
|
|
|
472
|
|
Assets held for
sale
|
350
|
|
|
—
|
|
Other current
assets
|
345
|
|
|
352
|
|
Total current
assets
|
3,475
|
|
|
3,753
|
|
|
|
|
|
|
|
Property and
equipment, net
|
1,403
|
|
|
1,414
|
|
Intangible assets,
net
|
431
|
|
|
447
|
|
Investments in
affiliates
|
167
|
|
|
228
|
|
Other non-current
assets
|
217
|
|
|
185
|
|
Total
assets
|
$
|
5,693
|
|
|
$
|
6,027
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
141
|
|
|
$
|
106
|
|
Accounts
payable
|
1,118
|
|
|
1,207
|
|
Accrued employee
liabilities
|
179
|
|
|
202
|
|
Liabilities held for
sale
|
285
|
|
|
—
|
|
Other current
liabilities
|
248
|
|
|
287
|
|
Total current
liabilities
|
1,971
|
|
|
1,802
|
|
|
|
|
|
|
|
Long-term
debt
|
840
|
|
|
624
|
|
Employee
benefits
|
428
|
|
|
440
|
|
Deferred tax
liabilities
|
129
|
|
|
137
|
|
Other non-current
liabilities
|
148
|
|
|
151
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Stock
warrants
|
4
|
|
|
6
|
|
Additional paid-in
capital
|
1,243
|
|
|
1,291
|
|
Retained
earnings
|
799
|
|
|
956
|
|
Accumulated other
comprehensive loss
|
(91)
|
|
|
(12)
|
|
Treasury
stock
|
(749)
|
|
|
(322)
|
|
Total Visteon
Corporation stockholders' equity
|
1,207
|
|
|
1,920
|
|
Non-controlling
interests
|
970
|
|
|
953
|
|
Total
equity
|
2,177
|
|
|
2,873
|
|
Total liabilities and
equity
|
$
|
5,693
|
|
|
$
|
6,027
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
(Dollars in
Millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
OPERATING
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
1
|
|
|
$
|
60
|
|
|
$
|
(92)
|
|
|
$
|
230
|
|
Adjustments to
reconcile net (loss) income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
long-lived assets
|
15
|
|
|
—
|
|
|
188
|
|
|
—
|
|
Depreciation and
amortization
|
75
|
|
|
68
|
|
|
205
|
|
|
200
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Equity in net income
of affiliates, net of dividends remitted
|
2
|
|
|
(29)
|
|
|
7
|
|
|
(111)
|
|
Pension settlement
gain
|
(25)
|
|
|
—
|
|
|
(25)
|
|
|
—
|
|
Stock-based
compensation
|
1
|
|
|
3
|
|
|
7
|
|
|
14
|
|
Other non-cash
items
|
7
|
|
|
3
|
|
|
12
|
|
|
(2)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
83
|
|
|
109
|
|
|
5
|
|
|
22
|
|
Inventories
|
(15)
|
|
|
(31)
|
|
|
(33)
|
|
|
(74)
|
|
Accounts
payable
|
(79)
|
|
|
(150)
|
|
|
(58)
|
|
|
33
|
|
Accrued income
taxes
|
2
|
|
|
—
|
|
|
14
|
|
|
(56)
|
|
Other assets and
other liabilities
|
(14)
|
|
|
(12)
|
|
|
(73)
|
|
|
(77)
|
|
Net cash provided
from operating activities
|
53
|
|
|
21
|
|
|
180
|
|
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(82)
|
|
|
(50)
|
|
|
(209)
|
|
|
(164)
|
|
Acquisition of
businesses, net of cash acquired
|
(308)
|
|
|
—
|
|
|
(308)
|
|
|
—
|
|
Proceeds from
business divestitures and asset sales
|
4
|
|
|
—
|
|
|
64
|
|
|
39
|
|
Other
|
(4)
|
|
|
—
|
|
|
(8)
|
|
|
—
|
|
Net cash used by
investing activities
|
(390)
|
|
|
(50)
|
|
|
(461)
|
|
|
(125)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt,
net
|
7
|
|
|
(1)
|
|
|
42
|
|
|
42
|
|
Proceeds from
issuance of debt, net of issuance costs
|
28
|
|
|
—
|
|
|
618
|
|
|
204
|
|
Repurchase of
long-term notes
|
—
|
|
|
—
|
|
|
(419)
|
|
|
—
|
|
Principal payments on
debt
|
(12)
|
|
|
—
|
|
|
(16)
|
|
|
(5)
|
|
Payments to
repurchase common stock
|
—
|
|
|
(125)
|
|
|
(500)
|
|
|
(250)
|
|
Dividends paid to
non-controlling interests
|
(39)
|
|
|
—
|
|
|
(84)
|
|
|
(22)
|
|
Other
|
8
|
|
|
4
|
|
|
15
|
|
|
5
|
|
Net cash used by
financing activities
|
(8)
|
|
|
(122)
|
|
|
(344)
|
|
|
(26)
|
|
Effect of exchange
rate changes on cash and equivalents
|
(19)
|
|
|
5
|
|
|
(17)
|
|
|
(16)
|
|
Net (decrease)
increase in cash and equivalents
|
(364)
|
|
|
(146)
|
|
|
(642)
|
|
|
12
|
|
Cash and equivalents
at beginning of period
|
1,399
|
|
|
983
|
|
|
1,677
|
|
|
825
|
|
Cash and equivalents
at end of period
|
$
|
1,035
|
|
|
$
|
837
|
|
|
$
|
1,035
|
|
|
$
|
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. The Company's definition of Adjusted EBITDA
includes the impacts of discontinued operations for all periods
presented. 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
|
|
|
Nine Months
Ended
|
|
|
Estimated
|
|
September
30
|
|
|
September
30
|
|
|
Full
Year
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Adjusted
EBITDA
|
$
|
136
|
|
|
$
|
128
|
|
|
$
|
499
|
|
|
$
|
432
|
|
|
$700 -
$730
|
Interest
expense, net
|
6
|
|
|
9
|
|
|
20
|
|
|
27
|
|
|
30
|
Provision for income taxes
|
22
|
|
|
23
|
|
|
94
|
|
|
59
|
|
|
135
|
Depreciation and amortization
|
75
|
|
|
60
|
|
|
196
|
|
|
179
|
|
|
268
|
Equity
in affiliates/Non-controlling interests
|
20
|
|
|
(31)
|
|
|
50
|
|
|
(81)
|
|
|
85
|
Restructuring expenses
|
9
|
|
|
10
|
|
|
23
|
|
|
31
|
|
|
35
|
Other
expenses
|
20
|
|
|
6
|
|
|
40
|
|
|
14
|
|
|
62
|
Loss on
debt extinguishment
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
Non-cash, stock-based compensation expense
|
3
|
|
|
4
|
|
|
9
|
|
|
14
|
|
|
12
|
Pension
settlement gain
|
(25)
|
|
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(25)
|
Other
|
4
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
25
|
Discontinued operations
|
23
|
|
|
4
|
|
|
221
|
|
|
12
|
|
|
385
|
Net (loss) income
attributable to Visteon
|
$
|
(21)
|
|
|
$
|
43
|
|
|
$
|
(157)
|
|
|
$
|
177
|
|
|
$(335) -
$(305)
|
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 and transformation-related payments. Free cash
flow and Adjusted free cash flow include amounts associated with
discontinued operations. 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
|
|
Nine Months
Ended
|
|
Estimated
|
|
September
30
|
|
September
30
|
|
Full
Year
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
*
|
Cash provided from
operating activities
|
$
|
53
|
|
|
$
|
21
|
|
|
$
|
180
|
|
|
$
|
179
|
|
|
$300 -
$340
|
Capital
expenditures
|
(82)
|
|
|
(50)
|
|
|
(209)
|
|
|
(164)
|
|
|
(320)
|
Free cash
flow
|
$
|
(29)
|
|
|
$
|
(29)
|
|
|
$
|
(29)
|
|
|
$
|
15
|
|
|
($20) -
$20
|
Restructuring/transformation-related
payments
|
47
|
|
|
28
|
|
|
93
|
|
|
81
|
|
|
145
|
Adjusted free cash
flow
|
$
|
18
|
|
|
$
|
(1)
|
|
|
$
|
64
|
|
|
$
|
96
|
|
|
$125 -
$165
|
*Full year guidance excludes any Fourth Quarter impact from
entities being divested.
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
|
|
Nine Months
Ended
|
|
Estimated
|
|
September
30
|
|
September
30
|
|
Full
Year
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Diluted (loss)
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Visteon
|
$
|
(21)
|
|
|
$
|
43
|
|
|
$
|
(157)
|
|
|
$
|
177
|
|
|
$(335)-$(305)
|
Average shares outstanding, diluted (in millions)
|
45.4
|
|
|
50.4
|
|
|
47.5
|
|
|
51.5
|
|
|
47.0
|
Diluted (loss)
earnings per share
|
$
|
(0.46)
|
|
|
$
|
0.85
|
|
|
$
|
(3.31)
|
|
|
$
|
3.44
|
|
|
$(7.13)-$(6.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Visteon
|
$
|
(21)
|
|
|
$
|
43
|
|
|
$
|
(157)
|
|
|
$
|
177
|
|
|
$(335)-$(305)
|
Other
expenses
|
10
|
|
|
17
|
|
|
71
|
|
|
50
|
|
|
125
|
Discontinued
operations related
|
23
|
|
|
(1)
|
|
|
210
|
|
|
8
|
|
|
350
|
Adjusted net
income
|
$
|
12
|
|
|
$
|
59
|
|
|
$
|
124
|
|
|
$
|
235
|
|
|
$140-$170
|
Average shares outstanding, diluted (in millions)
|
45.4
|
|
|
50.4
|
|
|
47.5
|
|
|
51.5
|
|
|
47.0
|
Adjusted earnings per
share *
|
$
|
0.26
|
|
|
$
|
1.17
|
|
|
$
|
2.61
|
|
|
$
|
4.56
|
|
|
$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