VAN BUREN TOWNSHIP, Mich.,
July 28, 2016 /PRNewswire/ --
- Solid financial performance
- Sales of $773 million
- Net income of $26 million
- Adjusted EBITDA of $77
million
- Electronics performance
- Electronics sales of $762
million
- Adjusted EBITDA of $79
million
- Adjusted free cash flow of $87
million
- Electronics backlog of $15.9
billion
- Secured $2.8 billion of new
business awards (lifetime revenue) in first half of 2016
- Second-quarter awards totaling $1.6
billion represent all-time quarterly record for Visteon's
Electronics business
- Completed acquisition of AllGo Embedded Systems Pvt. Ltd.,
gaining vertical integration of multimedia playback and smartphone
connectivity technologies
- Reaffirmed 2016 full-year adjusted EBITDA and adjusted free
cash flow guidance; established sales guidance range of
$3.1 billion-$3.2 billion
![Visteon Corporation Logo. Visteon Corporation Logo.](http://photos.prnewswire.com/prnvar/20001201/DEF008LOGO)
Visteon Corporation (NYSE:VC) today announced second-quarter
2016 results, reporting sales of $773
million and net income attributable to Visteon of
$26 million, or $0.76 per diluted share. Adjusted EBITDA, a
non-GAAP financial measure as defined below, was $77 million for the second quarter, compared with
$60 million in the same period last
year. Adjusted net income, a non-GAAP financial measure as defined
below, was $42 million for the second
quarter, or $1.22 per diluted
share.
In the first half of 2016, global vehicle manufacturers awarded
Visteon new business wins amounting to $2.8
billion of lifetime revenue. Second-quarter wins totaled
$1.6 billion, an all-time quarterly
record for Visteon's Electronics business. The ongoing backlog,
defined as cumulative remaining life-of-program booked sales, was
approximately $15.9 billion as of
June 30, 2016.
"We delivered another solid quarter and are on pace for a strong
year as automakers around the world experience the benefits of our
cockpit electronics technology," said Visteon President and CEO
Sachin Lawande. "As a result of our
first-half performance, we are reaffirming our guidance for
adjusted EBITDA and adjusted free cash flow for the year. The
record pace at which customers are awarding us new business,
coupled with our focus on new technology and cost efficiency,
solidifies our position as a leader in the fast-growing cockpit
electronics segment."
Second Quarter in Review
Visteon reported second-quarter sales of $773 million, a decrease of $39 million compared with the same quarter last
year. The decrease is primarily related to the sale of a
Germany interiors facility during
the fourth quarter of 2015 and customer pricing, partially offset
by higher production volumes and new business.
Electronics sales totaled $762
million, a decrease of $18
million from the second quarter last year. For the
Electronics Product Group, on a regional basis, Asia accounted for 34 percent of sales,
Europe 34 percent, North America 30 percent, and South America 2 percent.
Gross margin for the second quarter of 2016 was $109 million, compared with $99 million a year earlier. Selling, general and
administrative (SG&A) expenses were $54
million, or 7.0 percent of sales, for the second quarter,
compared with $65 million, or 8.0
percent of sales, a year earlier.
For the second quarter of 2016, Visteon reported net income
attributable to Visteon of $26
million, or earnings per share of $0.76 per diluted share, compared with net income
attributable to Visteon of $2,208
million and earnings per share of $49.73 for the same period in 2015. Net income
attributable to Visteon in the second quarter of 2015 included the
climate transaction gain and related taxes within discontinued
operations net income of $2,159
million and a gain on the sale of non-consolidated
affiliates of $62 million.
Second-quarter 2016 net income included a loss of $9 million related to discontinued operations and
$7 million of restructuring,
transformation integration and related costs. Adjusted net income,
which excludes these costs, was $42
million, or $1.22 per diluted
share.
Adjusted EBITDA for the Electronics Product Group was
$79 million for the second quarter of
2016, compared with $60 million for
the same quarter last year. The improvement primarily
reflected cost efficiencies impacting both gross margin and
SG&A. Adjusted EBITDA for Other Operations was a loss of
$2 million, $2
million lower than adjusted EBITDA for the second quarter
last year.
Cash and Debt Balances
As of June 30, 2016, Visteon had
global cash balances totaling $852
million. Total debt as of June
30 was $372 million.
For the second quarter of 2016, Visteon generated $72 million of cash from operations, compared
with $31 million in the same period a
year earlier. Capital expenditures for the second quarter of 2016
were $12 million, compared with
$67 million during the second quarter
of 2015, reflecting the impacts of the climate business
divestiture. Adjusted free cash flow was $79
million in the quarter, compared with $33 million in the second quarter of 2015.
Visteon generated $92 million of
cash from operations related to the Electronics Product Group in
the second quarter. Electronics capital expenditures totaled
$12 million, and adjusted free cash
flow for Electronics totaled $87
million.
Completion of AllGo Acquisition
On July 11, 2016, Visteon
announced completion of its acquisition of AllGo Embedded Systems
Pvt. Ltd., an India-based leading
supplier of embedded multimedia and smartphone connectivity
software solutions to the global automotive industry. The
acquisition makes Visteon the only automotive supplier with
vertically integrated multimedia playback and smartphone
connectivity technologies for infotainment and display audio
systems. The transaction includes AllGo's technology assets and
automotive business and approximately 140 employees – primarily
software engineers based in India
– supported by sales offices in the U.S., Europe and Asia.
Full-Year 2016 Outlook
Visteon reaffirmed its full-year 2016 guidance for adjusted
EBITDA and adjusted free cash flow. Visteon established a range for
Electronics Product Group sales guidance of $3.1 billion to $3.2 billion. Adjusted EBITDA for
the Electronics Product Group is projected in the range of
$305 million to $335 million.
Adjusted free cash flow, as defined below, for the Electronics
Product Group is projected in the range of $110 million to $150 million.
About Visteon
Visteon is a global company that designs, engineers and
manufactures innovative cockpit electronics products and connected
car solutions for most of the world's major vehicle manufacturers.
Visteon is a leading provider of instrument clusters, head-up
displays, information displays, infotainment, audio systems, and
telematics solutions; its brands include Lightscape®, OpenAir® and
SmartCore™. Visteon also supplies embedded multimedia and
smartphone connectivity software solutions to the global automotive
industry through AllGo Embedded Systems Pvt. Ltd. Headquartered in
Van Buren Township, Michigan,
Visteon has nearly 11,000 employees at more than 40 facilities in
18 countries. Visteon had sales of $3.25
billion in 2015. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, July 28, 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:
855-855-4109
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
47130364. 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, 2015).
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 fiscal quarter
ended June 30, 2016. 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 ("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 2016 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
OPERATIONS (Dollars in
Millions, Except Per Share Data) (Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30
|
|
June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Sales
|
$
|
773
|
|
|
$
|
812
|
|
|
$
|
1,575
|
|
|
$
|
1,628
|
|
Cost of sales
|
664
|
|
|
713
|
|
|
1,345
|
|
|
1,417
|
|
Gross margin
|
109
|
|
|
99
|
|
|
230
|
|
|
211
|
|
Selling, general and administrative
expenses
|
54
|
|
|
65
|
|
|
110
|
|
|
123
|
|
Restructuring expense
|
7
|
|
|
12
|
|
|
17
|
|
|
15
|
|
Interest expense, net
|
3
|
|
|
6
|
|
|
5
|
|
|
11
|
|
Equity in net income of non-consolidated
affiliates
|
3
|
|
|
12
|
|
|
3
|
|
|
11
|
|
Loss on debt extinguishment
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Gain on sale of non-consolidated
affiliates
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Other (income) expense, net
|
—
|
|
|
(4)
|
|
|
4
|
|
|
8
|
|
Income before income taxes
|
48
|
|
|
89
|
|
|
97
|
|
|
122
|
|
Provision for income taxes
|
9
|
|
|
24
|
|
|
22
|
|
|
33
|
|
Net income from continuing
operations
|
39
|
|
|
65
|
|
|
75
|
|
|
89
|
|
(Loss) income from discontinued operations, net of
tax
|
(9)
|
|
|
2,159
|
|
|
(22)
|
|
|
2,205
|
|
Net income
|
30
|
|
|
2,224
|
|
|
53
|
|
|
2,294
|
|
Net income attributable to non-controlling
interests
|
4
|
|
|
16
|
|
|
8
|
|
|
36
|
|
Net income attributable to Visteon
Corporation
|
$
|
26
|
|
|
$
|
2,208
|
|
|
$
|
45
|
|
|
$
|
2,258
|
|
|
|
|
|
|
|
|
|
Earnings per share data:
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.03
|
|
|
$
|
1.34
|
|
|
$
|
1.85
|
|
|
$
|
1.76
|
|
Discontinued
operations
|
(0.26)
|
|
|
49.54
|
|
|
(0.61)
|
|
|
49.79
|
|
Basic earnings per share attributable to Visteon
Corporation
|
$
|
0.77
|
|
|
$
|
50.88
|
|
|
$
|
1.24
|
|
|
$
|
51.55
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.02
|
|
|
$
|
1.31
|
|
|
$
|
1.83
|
|
|
$
|
1.71
|
|
Discontinued
operations
|
(0.26)
|
|
|
48.42
|
|
|
(0.60)
|
|
|
48.58
|
|
Diluted earnings per share attributable to Visteon
Corporation
|
$
|
0.76
|
|
|
$
|
49.73
|
|
|
$
|
1.23
|
|
|
$
|
50.29
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (in
millions)
|
|
|
|
|
|
|
|
Basic
|
34.0
|
|
|
43.4
|
|
|
36.3
|
|
|
43.8
|
|
Diluted
|
34.4
|
|
|
44.4
|
|
|
36.7
|
|
|
44.9
|
|
|
|
|
|
|
|
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
Comprehensive income
|
$
|
29
|
|
|
$
|
2,303
|
|
|
$
|
71
|
|
|
$
|
2,323
|
|
Comprehensive income attributable to Visteon
Corporation
|
$
|
27
|
|
|
$
|
2,288
|
|
|
$
|
65
|
|
|
$
|
2,296
|
|
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
|
|
|
|
|
|
June 30
|
|
December 31
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Cash and equivalents
|
$
|
846
|
|
|
$
|
2,728
|
|
Short-term investments
|
—
|
|
|
47
|
|
Restricted cash
|
6
|
|
|
8
|
|
Accounts receivable, net
|
483
|
|
|
502
|
|
Inventories, net
|
187
|
|
|
187
|
|
Other current assets
|
189
|
|
|
581
|
|
Total current assets
|
1,711
|
|
|
4,053
|
|
|
|
|
|
Property and equipment, net
|
342
|
|
|
351
|
|
Intangible assets, net
|
123
|
|
|
133
|
|
Investments in non-consolidated
affiliates
|
58
|
|
|
56
|
|
Other non-current assets
|
110
|
|
|
88
|
|
Total assets
|
$
|
2,344
|
|
|
$
|
4,681
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Distribution payable
|
$
|
15
|
|
|
$
|
1,751
|
|
Short-term debt, including current portion of
long-term debt
|
25
|
|
|
37
|
|
Accounts payable
|
455
|
|
|
482
|
|
Accrued employee liabilities
|
96
|
|
|
132
|
|
Other current liabilities
|
279
|
|
|
370
|
|
Total current liabilities
|
870
|
|
|
2,772
|
|
|
|
|
|
Long-term debt
|
347
|
|
|
346
|
|
Employee benefits
|
259
|
|
|
268
|
|
Deferred tax liabilities
|
23
|
|
|
21
|
|
Other non-current liabilities
|
81
|
|
|
75
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
Preferred stock
|
—
|
|
|
—
|
|
Common stock
|
1
|
|
|
1
|
|
Additional paid-in capital
|
1,245
|
|
|
1,345
|
|
Retained earnings
|
1,239
|
|
|
1,194
|
|
Accumulated other comprehensive
loss
|
(170)
|
|
|
(190)
|
|
Treasury stock
|
(1,699)
|
|
|
(1,293)
|
|
Total Visteon Corporation stockholders'
equity
|
616
|
|
|
1,057
|
|
Non-controlling interests
|
148
|
|
|
142
|
|
Total equity
|
764
|
|
|
1,199
|
|
Total liabilities and equity
|
$
|
2,344
|
|
|
$
|
4,681
|
|
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
1 (Dollars in
Millions) (Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30
|
|
June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
|
|
|
|
|
|
|
|
Net income
|
$
|
30
|
|
|
$
|
2,224
|
|
|
$
|
53
|
|
|
$
|
2,294
|
|
Adjustments to reconcile net income to net cash
provided from operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
20
|
|
|
59
|
|
|
41
|
|
|
127
|
|
Equity in net income of non-consolidated affiliates,
net of dividends remitted
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
(2)
|
|
Non-cash stock-based compensation
|
2
|
|
|
3
|
|
|
4
|
|
|
6
|
|
Gain on Climate Transaction
|
2
|
|
|
(2,332)
|
|
|
2
|
|
|
(2,332)
|
|
Losses on divestitures and
impairments
|
1
|
|
|
2
|
|
|
2
|
|
|
16
|
|
Gain on sale of non-consolidated
affiliates
|
—
|
|
|
(62)
|
|
|
—
|
|
|
(62)
|
|
Loss on debt extinguishment
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Other non-cash items
|
1
|
|
|
3
|
|
|
1
|
|
|
3
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
51
|
|
|
44
|
|
|
27
|
|
|
(18)
|
|
Inventories
|
(4)
|
|
|
(3)
|
|
|
5
|
|
|
(32)
|
|
Accounts payable
|
(21)
|
|
|
(78)
|
|
|
(17)
|
|
|
32
|
|
Accrued income taxes
|
(6)
|
|
|
141
|
|
|
(49)
|
|
|
142
|
|
Other assets and other liabilities
|
(1)
|
|
|
25
|
|
|
(52)
|
|
|
25
|
|
Net cash provided from operating
activities
|
72
|
|
|
31
|
|
|
14
|
|
|
204
|
|
INVESTING
|
|
|
|
|
|
|
|
Capital expenditures
|
(12)
|
|
|
(67)
|
|
|
(37)
|
|
|
(122)
|
|
Climate Transaction withholding tax
refund
|
—
|
|
|
—
|
|
|
356
|
|
|
—
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
47
|
|
|
—
|
|
Loan to non-consolidated affiliates
|
(4)
|
|
|
—
|
|
|
(12)
|
|
|
(10)
|
|
Net proceeds from Climate
Transaction
|
—
|
|
|
2,664
|
|
|
—
|
|
|
2,664
|
|
Proceeds from asset sales and business
divestitures
|
1
|
|
|
91
|
|
|
4
|
|
|
91
|
|
Payments associated with business divestitures,
net
|
—
|
|
|
(16)
|
|
|
—
|
|
|
(24)
|
|
Other
|
—
|
|
|
2
|
|
|
—
|
|
|
5
|
|
Net cash (used by) provided from investing
activities
|
(15)
|
|
|
2,674
|
|
|
358
|
|
|
2,604
|
|
FINANCING
|
|
|
|
|
|
|
|
Short-term debt, net
|
(10)
|
|
|
4
|
|
|
(10)
|
|
|
(6)
|
|
Principal payments on debt
|
—
|
|
|
(247)
|
|
|
(1)
|
|
|
(250)
|
|
Distribution payment
|
—
|
|
|
—
|
|
|
(1,736)
|
|
|
—
|
|
Repurchase of common stock
|
—
|
|
|
(500)
|
|
|
(500)
|
|
|
(500)
|
|
Dividends paid to non-controlling
interests
|
—
|
|
|
(28)
|
|
|
—
|
|
|
(31)
|
|
Exercised warrants and stock
options
|
—
|
|
|
9
|
|
|
—
|
|
|
19
|
|
Stock based compensation tax withholding
payments
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
Other
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Net cash used by financing
activities
|
(10)
|
|
|
(763)
|
|
|
(2,258)
|
|
|
(769)
|
|
Effect of exchange rate changes on cash and
equivalents
|
(3)
|
|
|
8
|
|
|
4
|
|
|
(9)
|
|
Net increase (decrease) in cash and
equivalents
|
44
|
|
|
1,950
|
|
|
(1,882)
|
|
|
2,030
|
|
Cash and equivalents at beginning of
period
|
803
|
|
|
907
|
|
|
2,729
|
|
|
827
|
|
Cash and equivalents at end of
period
|
$
|
847
|
|
|
$
|
2,857
|
|
|
$
|
847
|
|
|
$
|
2,857
|
|
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 as assets held for sale within other
current assets 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 the Company
adjusted to eliminate the impact of depreciation and
amortization, restructuring expense, net interest expense,
loss on debt extinguishment, equity in net income of
non-consolidated affiliates, loss on divestiture, gain on
non-consolidated affiliate transactions, other net expense,
provision for income taxes, discontinued operations, net income
attributable to non-controlling interests, non-cash stock-based
compensation expense, pension settlement gains 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
|
|
June 30
|
|
June 30
|
Total Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Electronics
|
$
|
79
|
|
|
$
|
60
|
|
|
$
|
173
|
|
|
$
|
144
|
|
Other
|
(2)
|
|
|
—
|
|
|
(7)
|
|
|
(6)
|
|
Adjusted EBITDA
|
77
|
|
|
60
|
|
|
166
|
|
|
138
|
|
Depreciation and amortization
|
20
|
|
|
21
|
|
|
41
|
|
|
42
|
|
Restructuring expense
|
7
|
|
|
12
|
|
|
17
|
|
|
15
|
|
Interest expense, net
|
3
|
|
|
6
|
|
|
5
|
|
|
11
|
|
Loss on debt extinguishment
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Equity income of non-consolidated
affiliates
|
(3)
|
|
|
(12)
|
|
|
(3)
|
|
|
(11)
|
|
Gain on sale of non-consolidated
affiliates
|
—
|
|
|
(62)
|
|
|
—
|
|
|
(62)
|
|
Other (income) expense, net
|
—
|
|
|
(4)
|
|
|
4
|
|
|
8
|
|
Provision for income taxes
|
9
|
|
|
24
|
|
|
22
|
|
|
33
|
|
Loss (income) from discontinued operations, net of
tax
|
9
|
|
|
(2,159)
|
|
|
22
|
|
|
(2,205)
|
|
Non-cash, stock-based compensation
expense
|
2
|
|
|
2
|
|
|
4
|
|
|
5
|
|
Net income attributable to non-controlling
interests
|
4
|
|
|
16
|
|
|
8
|
|
|
36
|
|
Other
|
—
|
|
|
3
|
|
|
1
|
|
|
3
|
|
Net income attributable to Visteon
|
$
|
26
|
|
|
$
|
2,208
|
|
|
$
|
45
|
|
|
$
|
2,258
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
Estimated
|
Electronics *
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Full Year 2016**
|
Adjusted EBITDA
|
$
|
79
|
|
|
$
|
60
|
|
|
$
|
173
|
|
|
$
|
144
|
|
|
$305 - $335
|
Depreciation and amortization
|
20
|
|
|
21
|
|
|
41
|
|
|
41
|
|
|
85
|
Restructuring expense
|
—
|
|
|
12
|
|
|
10
|
|
|
15
|
|
|
15
|
Interest expense, net
|
3
|
|
|
6
|
|
|
5
|
|
|
11
|
|
|
10
|
Equity in net (income) loss of non-consolidated
affiliates
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
1
|
|
|
(5)
|
Other expense, net
|
1
|
|
|
15
|
|
|
4
|
|
|
22
|
|
|
10
|
Provision for income taxes
|
9
|
|
|
16
|
|
|
22
|
|
|
33
|
|
|
55
|
Net income attributable to non-controlling
interests
|
4
|
|
|
7
|
|
|
8
|
|
|
12
|
|
|
15
|
Loss on debt extinguishment
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
Non-cash, stock-based compensation
expense
|
2
|
|
|
5
|
|
|
4
|
|
|
8
|
|
|
8
|
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
Net income
|
$
|
43
|
|
|
$
|
(27)
|
|
|
$
|
81
|
|
|
$
|
(4)
|
|
|
$110 - $140
|
Loss (income) from discontinued operations, net of
tax
|
9
|
|
|
(2,159)
|
|
|
22
|
|
|
(2,205)
|
|
|
|
All other loss, net of tax
|
8
|
|
|
(76)
|
|
|
14
|
|
|
(57)
|
|
|
|
Net income attributable to Visteon
|
$
|
26
|
|
|
$
|
2,208
|
|
|
$
|
45
|
|
|
$
|
2,258
|
|
|
|
* During the first quarter of 2016, the Company combined
corporate costs with the Electronics product group.
** Guidance excludes Other operations and discontinued
operations.
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
|
|
Six Months Ended
|
|
June 30
|
|
June 30
|
Total Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash provided from operating activities -
Electronics*
|
$
|
92
|
|
|
$
|
66
|
|
|
$
|
79
|
|
|
$
|
78
|
|
Cash (used by) provided from operating activities -
discontinued operations and other
|
(20)
|
|
|
(35)
|
|
|
(65)
|
|
|
126
|
|
Cash provided from operating activities total
Visteon
|
$
|
72
|
|
|
$
|
31
|
|
|
$
|
14
|
|
|
$
|
204
|
|
Capital expenditures
|
(12)
|
|
|
(67)
|
|
|
(37)
|
|
|
(122)
|
|
Free cash flow
|
$
|
60
|
|
|
$
|
(36)
|
|
|
$
|
(23)
|
|
|
$
|
82
|
|
Restructuring/transformation-related
payments
|
19
|
|
|
69
|
|
|
74
|
|
|
90
|
|
Adjusted free cash flow
|
$
|
79
|
|
|
$
|
33
|
|
|
$
|
51
|
|
|
$
|
172
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30
|
|
June 30
|
|
Estimated
|
Electronics*
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Full Year 2016**
|
Cash provided from operating
activities
|
$
|
92
|
|
|
$
|
66
|
|
|
$
|
79
|
|
|
$
|
78
|
|
|
$150 - $180
|
Capital expenditures
|
(12)
|
|
|
(14)
|
|
|
(36)
|
|
|
(37)
|
|
|
90 - 80
|
Free cash flow
|
$
|
80
|
|
|
$
|
52
|
|
|
$
|
43
|
|
|
$
|
41
|
|
|
$60 - $100
|
Restructuring/transformation-related
payments
|
7
|
|
|
5
|
|
|
22
|
|
|
22
|
|
|
50
|
Adjusted free cash flow
|
$
|
87
|
|
|
$
|
57
|
|
|
$
|
65
|
|
|
$
|
63
|
|
|
$110 - $150
|
* During the first quarter of 2016, the Company combined
corporate costs with the Electronics product group.
** Guidance excludes Other operations and discontinued
operations.
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 and other non-operating gains and losses, as
further adjusted to eliminate the impact of discontinued
operations. 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.
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30
|
|
June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
Net income attributable to Visteon
|
$
|
26
|
|
|
$
|
2,208
|
|
|
$
|
45
|
|
|
$
|
2,258
|
|
Average shares outstanding,
diluted (in millions)
|
34.4
|
|
|
44.4
|
|
|
36.7
|
|
|
44.9
|
|
Diluted earnings per share
|
$
|
0.76
|
|
|
$
|
49.73
|
|
|
$
|
1.23
|
|
|
$
|
50.29
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share:
|
|
|
|
|
|
|
|
Net income attributable to Visteon
|
$
|
26
|
|
|
$
|
2,208
|
|
|
$
|
45
|
|
|
$
|
2,258
|
|
Restructuring expense
|
7
|
|
|
12
|
|
|
17
|
|
|
15
|
|
Loss on debt extinguishment
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Gain on sale of non-consolidated
affiliates
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Other (income) expense, net
|
—
|
|
|
(4)
|
|
|
4
|
|
|
8
|
|
Other
|
—
|
|
|
17
|
|
|
1
|
|
|
32
|
|
(Loss) income from discontinued operations, net of
tax
|
(9)
|
|
|
2,159
|
|
|
(22)
|
|
|
2,205
|
|
Adjusted net income
|
$
|
42
|
|
|
$
|
17
|
|
|
$
|
89
|
|
|
$
|
51
|
|
Average shares outstanding,
diluted (in millions)
|
34.4
|
|
|
44.4
|
|
|
36.7
|
|
|
44.9
|
|
Adjusted earnings per share
|
$
|
1.22
|
|
|
$
|
0.38
|
|
|
$
|
2.43
|
|
|
$
|
1.14
|
|
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.
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SOURCE Visteon Corporation