Visteon Corporation (NASDAQ:VC) today announced second-quarter 2018
results, reporting sales of $758 million, compared with $774
million in the second quarter of 2017. Second-quarter net income
attributable to Visteon was $35 million or $1.17 per diluted share
for 2018, compared with $45 million or $1.41 per diluted share in
2017.
Adjusted EBITDA, a non-GAAP financial measure as defined below,
was $81 million for the second quarter, compared with $84 million
in the same period last year. Adjusted net income, a non-GAAP
financial measure as defined below, was $41 million for the second
quarter or $1.37 per diluted share, compared with $44 million or
$1.38 per diluted share in the second quarter of 2017.
During the second quarter, global vehicle manufacturers awarded
Visteon new business of $2.2 billion in lifetime revenue. This new
business included the largest infotainment win and the largest
instrument cluster win in the company's history. The infotainment
win is for a cross-platform, global system with a large European
automaker, with anticipated lifetime revenue of $640 million and
launching in early 2020. The digital instrument cluster win is for
high-volume, compact vehicles for a global European automaker, with
expected lifetime revenue of $585 million and launching in late
2020. Visteon's ongoing backlog, defined as cumulative remaining
awarded life-of-program expected booked sales, was $21.1 billion as
of June 30, 2018, up from $19.4 billion at the end of
2017.
"Our second-quarter results were impacted by lower vehicle
production volumes, particularly in North America, and new
emissions regulations in Europe, offset by continued strong
performance in China," said Visteon President and CEO Sachin
Lawande. "Our products and technology continue to enable us to win
record levels of new business in the evolving cockpit and safety
electronics segments. Visteon's core business remains strong and
our order backlog keeps us on track to achieve our long-term
targets despite near-term industry headwinds."
Second Quarter in Review
Sales totaled $758 million and $774 million during the second
quarter of 2018 and 2017, respectively, for a decrease of $16
million. Sales decreased in the Americas, primarily reflecting
lower vehicle production volumes. Sales increased in Europe,
reflecting favorable currency, and in Asia, driven by new product
launches. On a regional basis, Asia accounted for 39 percent of
sales, Europe 34 percent, and the Americas 27 percent.
Gross margin for the second quarter of 2018 and 2017 was $104
million and $111 million, respectively, for a decrease of $7
million. Adjusted EBITDA was $81 million for the second quarter of
2018, compared with $84 million for the same quarter last year, for
a decrease of $3 million. Adjusted EBITDA margin was 10.7 percent
for the second quarter of 2018, 20 basis points lower than the
prior year.
Gross margin and adjusted EBITDA were impacted by lower
production volumes and product mix, partially offset by favorable
currency and a positive business equation. Business equation is
defined as cost performance net of customer pricing.
For the second quarter of 2018, net income was $35 million or
$1.17 per diluted share, compared with net income of $45 million or
$1.41 per diluted share for the same period in 2017. Adjusted net
income, which excludes restructuring charges and discontinued
operations, was $41 million or $1.37 per diluted share for the
second quarter of 2018, compared with $44 million or $1.38 per
diluted share for the same period in 2017.
Cash and Debt Balances
As of June 30, 2018, Visteon had total cash of $528
million. Total debt as of June 30, 2018, was $378 million.
For the second quarter of 2018, cash from operations was $45
million, and capital expenditures were $25 million. For the first
half of 2018, cash from operations was $126 million, and capital
expenditures were $69 million. Total Visteon adjusted free
cash flow, a non-GAAP financial measure as defined below, for the
second quarter and first half of 2018 was $29 million and $77
million, respectively.
During the second quarter of 2018, the company repriced its $350
million term facility to reduce the applicable margin by 25 basis
points, from LIBOR plus 2.00 percent to 1.75 percent.
Share Repurchases
During the first half of the year, the company executed
agreements to purchase $200 million of shares, including an
accelerated share buyback program of $150 million. As of
June 30, 2018, the company had 29.9 million of diluted shares
of common stock outstanding. Subsequent to the end of the quarter,
the company concluded the accelerated share buyback program and
received an additional 229,986 shares.
Visteon is authorized to purchase an additional $500 million of
shares through Dec. 31, 2020, under the Board of Directors' Jan.
15, 2018, resolution.
Full-Year 2018 Outlook
Visteon updated its full-year 2018 guidance with sales in the
range of $3.10 billion to $3.15 billion, adjusted EBITDA in the
range of $350 million to $360 million, and adjusted free cash flow
in the range of $160 million to $170 million.
About Visteon
Visteon is a global technology 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, SmartCore™ cockpit domain controllers, vehicle
connectivity, and the DriveCore™ autonomous driving platform.
Visteon also supplies embedded multimedia and smartphone
connectivity software solutions to the global automotive industry.
Headquartered in Van Buren Township, Michigan, Visteon has
approximately 10,000 employees at more than 40 facilities in 18
countries. Visteon had sales of $3.15 billion in 2017. Learn more
at www.visteon.com.
Conference Call and Presentation
Today, Thursday, July 26, 2018, 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: 866-411-5196Outside U.S./Canada: 970-297-2404
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, related presentation
materials and other supplemental information will be accessible in
the investors section of Visteon’s website. A news release on
Visteon’s second-quarter results will be available in the news
section of the website.
A replay of the conference call will be available through the
company’s website or by dialing855-859-2056 (toll-free from the
U.S. and Canada) or 404-537-3406 (international). The conference ID
for the phone replay is 3594194. The phone replay will be available
for one week following the conference call.
Forward-looking InformationThis 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, 2017).
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, 2018. 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 2018
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.
Follow Visteon:
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Contacts:
Media:
Jim Fisher734-710-5557734-417-6184 –
mobilejfishe89@visteon.com
Investors:
Bill Robertson734-710-8349william.robertson@visteon.com
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(Dollars in Millions, Except Per Share
Data)(Unaudited)
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
June 30 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Sales |
$ |
758 |
|
|
$ |
774 |
|
|
$ |
1,572 |
|
|
$ |
1,584 |
|
Cost of sales |
(654 |
) |
|
(663 |
) |
|
(1,339 |
) |
|
(1,344 |
) |
Gross margin |
104 |
|
|
111 |
|
|
233 |
|
|
240 |
|
Selling, general and
administrative expenses |
(55 |
) |
|
(54 |
) |
|
(99 |
) |
|
(106 |
) |
Restructuring
expense |
(5 |
) |
|
(3 |
) |
|
(10 |
) |
|
(4 |
) |
Interest expense,
net |
(2 |
) |
|
(4 |
) |
|
(4 |
) |
|
(9 |
) |
Equity in net income of
non-consolidated affiliates |
4 |
|
|
3 |
|
|
7 |
|
|
5 |
|
Other income, net |
3 |
|
|
5 |
|
|
10 |
|
|
7 |
|
Income before income
taxes |
49 |
|
|
58 |
|
|
137 |
|
|
133 |
|
Provision for income
taxes |
(12 |
) |
|
(10 |
) |
|
(33 |
) |
|
(26 |
) |
Net income from
continuing operations |
37 |
|
|
48 |
|
|
104 |
|
|
107 |
|
(Loss) income from
discontinued operations, net of tax |
(1 |
) |
|
— |
|
|
1 |
|
|
8 |
|
Net income |
36 |
|
|
48 |
|
|
105 |
|
|
115 |
|
Net income attributable
to non-controlling interests |
(1 |
) |
|
(3 |
) |
|
(5 |
) |
|
(7 |
) |
Net income attributable
to Visteon Corporation |
$ |
35 |
|
|
$ |
45 |
|
|
$ |
100 |
|
|
$ |
108 |
|
|
|
|
|
|
|
|
|
Earnings per share
data: |
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
|
|
|
|
|
Continuing operations |
$ |
1.22 |
|
|
$ |
1.43 |
|
|
$ |
3.29 |
|
|
$ |
3.12 |
|
Discontinued operations |
(0.03 |
) |
|
— |
|
|
0.03 |
|
|
0.25 |
|
Basic earnings per
share attributable to Visteon Corporation |
$ |
1.19 |
|
|
$ |
1.43 |
|
|
$ |
3.32 |
|
|
$ |
3.37 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
|
|
|
|
|
Continuing operations |
$ |
1.20 |
|
|
$ |
1.41 |
|
|
$ |
3.26 |
|
|
$ |
3.07 |
|
Discontinued operations |
(0.03 |
) |
|
— |
|
|
0.03 |
|
|
0.24 |
|
Diluted earnings per
share attributable to Visteon Corporation |
$ |
1.17 |
|
|
$ |
1.41 |
|
|
$ |
3.29 |
|
|
$ |
3.31 |
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions) |
|
|
|
|
|
|
|
Basic |
29.6 |
|
|
31.5 |
|
|
30.1 |
|
|
32.1 |
|
Diluted |
29.9 |
|
|
32.0 |
|
|
30.4 |
|
|
32.6 |
|
|
|
|
|
|
|
|
|
Comprehensive
income: |
|
|
|
|
|
|
|
Comprehensive
income |
$ |
(9 |
) |
|
$ |
56 |
|
|
$ |
83 |
|
|
$ |
146 |
|
Comprehensive income
attributable to Visteon Corporation |
$ |
(3 |
) |
|
$ |
52 |
|
|
$ |
79 |
|
|
$ |
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Dollars in Millions)(Unaudited)
|
|
|
|
|
June 30 |
|
December 31 |
|
2018 |
|
2017 |
ASSETS |
|
|
|
Cash and
equivalents |
$ |
525 |
|
|
$ |
706 |
|
Restricted cash |
3 |
|
|
3 |
|
Accounts receivable,
net |
438 |
|
|
530 |
|
Inventories, net |
197 |
|
|
189 |
|
Other current
assets |
173 |
|
|
175 |
|
Total current
assets |
1,336 |
|
|
1,603 |
|
|
|
|
|
Property and equipment,
net |
372 |
|
|
377 |
|
Intangible assets,
net |
125 |
|
|
132 |
|
Investments in
non-consolidated affiliates |
48 |
|
|
41 |
|
Other non-current
assets |
155 |
|
|
151 |
|
Total assets |
$ |
2,036 |
|
|
$ |
2,304 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Short-term debt,
including current portion of long-term debt |
$ |
30 |
|
|
$ |
46 |
|
Accounts payable |
435 |
|
|
470 |
|
Accrued employee
liabilities |
76 |
|
|
105 |
|
Other current
liabilities |
162 |
|
|
180 |
|
Total current
liabilities |
703 |
|
|
801 |
|
|
|
|
|
Long-term debt |
348 |
|
|
347 |
|
Employee benefits |
260 |
|
|
277 |
|
Deferred tax
liabilities |
22 |
|
|
23 |
|
Other non-current
liabilities |
87 |
|
|
95 |
|
|
|
|
|
Stockholders’
equity |
|
|
|
Common
stock |
1 |
|
|
1 |
|
Additional paid-in capital |
1,302 |
|
|
1,339 |
|
Retained
earnings |
1,545 |
|
|
1,445 |
|
Accumulated other comprehensive loss |
(195 |
) |
|
(174 |
) |
Treasury
stock |
(2,137 |
) |
|
(1,974 |
) |
Total Visteon
Corporation stockholders’ equity |
516 |
|
|
637 |
|
Non-controlling
interests |
100 |
|
|
124 |
|
Total equity |
616 |
|
|
761 |
|
Total liabilities and
equity |
$ |
2,036 |
|
|
$ |
2,304 |
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
1 (Dollars in Millions)(Unaudited)
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30 |
|
June 30 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
OPERATING |
|
|
|
|
|
|
|
Net income |
$ |
36 |
|
|
$ |
48 |
|
|
$ |
105 |
|
|
$ |
115 |
|
Adjustments to
reconcile net income to net cash provided from operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
23 |
|
|
22 |
|
|
45 |
|
|
41 |
|
Equity in
net income of non-consolidated affiliates, net of dividends
remitted |
(4 |
) |
|
(3 |
) |
|
(7 |
) |
|
(5 |
) |
Non-cash
stock-based compensation |
6 |
|
|
4 |
|
|
— |
|
|
6 |
|
Gain on
India operations repurchase |
|
|
— |
|
|
— |
|
|
(7 |
) |
Gains on
divestitures and impairments |
— |
|
|
(3 |
) |
|
(3 |
) |
|
(2 |
) |
Other
non-cash items |
2 |
|
|
— |
|
|
2 |
|
|
3 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
37 |
|
|
47 |
|
|
85 |
|
|
8 |
|
Inventories |
(8 |
) |
|
— |
|
|
(14 |
) |
|
(8 |
) |
Accounts
payable |
(38 |
) |
|
(38 |
) |
|
(8 |
) |
|
(20 |
) |
Other
assets and other liabilities |
(9 |
) |
|
19 |
|
|
(79 |
) |
|
(46 |
) |
Net cash provided from
operating activities |
45 |
|
|
96 |
|
|
126 |
|
|
85 |
|
INVESTING |
|
|
|
|
|
|
|
Capital expenditures,
including intangibles |
(25 |
) |
|
(15 |
) |
|
(69 |
) |
|
(47 |
) |
India operations
repurchase |
— |
|
|
— |
|
|
— |
|
|
(47 |
) |
Proceeds from asset
sales and business divestitures |
— |
|
|
3 |
|
|
— |
|
|
13 |
|
Loan repayments from
non-consolidated affiliates |
— |
|
|
— |
|
|
2 |
|
|
— |
|
Settlement of net
investment hedge |
— |
|
|
5 |
|
|
1 |
|
|
5 |
|
Net cash used by
investing activities |
(25 |
) |
|
(7 |
) |
|
(66 |
) |
|
(76 |
) |
FINANCING |
|
|
|
|
|
|
|
Short-term debt,
net |
(4 |
) |
|
(8 |
) |
|
(16 |
) |
|
7 |
|
Principal payments on
debt |
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
Distribution
payments |
— |
|
|
— |
|
|
(14 |
) |
|
(1 |
) |
Repurchase of common
stock |
— |
|
|
(35 |
) |
|
(200 |
) |
|
(160 |
) |
Dividends paid to
non-controlling interests |
— |
|
|
(11 |
) |
|
(1 |
) |
|
(11 |
) |
Other |
1 |
|
|
— |
|
|
(2 |
) |
|
(3 |
) |
Net cash used by
financing activities |
(3 |
) |
|
(54 |
) |
|
(233 |
) |
|
(170 |
) |
Effect of exchange rate
changes on cash |
(15 |
) |
|
7 |
|
|
(8 |
) |
|
13 |
|
Net increase (decrease)
in cash |
2 |
|
|
42 |
|
|
(181 |
) |
|
(148 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
526 |
|
|
692 |
|
|
709 |
|
|
882 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
528 |
|
|
$ |
734 |
|
|
$ |
528 |
|
|
$ |
734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The Company has combined cash flows from
discontinued operations with cash flows from continuing operations
within the operating, investing and financing categories. 2017 cash
flow statement recast for adoption of Accounting Standards Update
No. 2016-15, “Statement of Cash Flows (Topic 230):
Classification of Certain Cash Receipts and Cash Payments.”
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION 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, equity
in net income of non-consolidated affiliates, loss on divestiture,
gain on non-consolidated affiliate transactions, provision for
income taxes, discontinued operations, net income attributable to
non-controlling interests, non-cash stock-based compensation
expense, and other gains and losses not reflective of the Company's
ongoing operations. 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 |
|
June 30 |
|
June 30 |
|
Full Year |
Visteon |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
Adjusted EBITDA |
$ |
81 |
|
|
$ |
84 |
|
|
$ |
185 |
|
|
$ |
185 |
|
|
$350 - $360 |
Depreciation and amortization |
(23 |
) |
|
(22 |
) |
|
(45 |
) |
|
(41 |
) |
|
(92) |
Restructuring expense |
(5 |
) |
|
(3 |
) |
|
(10 |
) |
|
(4 |
) |
|
(20) |
Interest
expense, net |
(2 |
) |
|
(4 |
) |
|
(4 |
) |
|
(9 |
) |
|
(8) |
Equity in
net income of non-consolidated affiliates |
4 |
|
|
3 |
|
|
7 |
|
|
5 |
|
|
13 |
Provision
for income taxes |
(12 |
) |
|
(10 |
) |
|
(33 |
) |
|
(26 |
) |
|
(58) |
(Loss)
income from discontinued operations, net of tax |
(1 |
) |
|
— |
|
|
1 |
|
|
8 |
|
|
1 |
Net
income attributable to non-controlling interests |
(1 |
) |
|
(3 |
) |
|
(5 |
) |
|
(7 |
) |
|
(12) |
Non-cash,
stock-based compensation |
(6 |
) |
|
(4 |
) |
|
— |
|
|
(6 |
) |
|
(10) |
Other |
— |
|
|
4 |
|
|
4 |
|
|
3 |
|
|
4 |
Net income attributable
to Visteon |
$ |
35 |
|
|
$ |
45 |
|
|
$ |
100 |
|
|
$ |
108 |
|
|
$168 - $178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Estimated |
|
June 30 |
|
June 30 |
|
Full Year |
Total
Visteon |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
Cash provided from
operating activities total Visteon |
$ |
45 |
|
|
$ |
96 |
|
|
$ |
126 |
|
|
$ |
85 |
|
|
$240 -
$250 |
Capital expenditures,
including intangibles |
(25 |
) |
|
(15 |
) |
|
(69 |
) |
|
(47 |
) |
|
(110 - 105) |
Free cash flow |
$ |
20 |
|
|
$ |
81 |
|
|
$ |
57 |
|
|
$ |
38 |
|
|
$130 -
$145 |
Restructuring/transformation-related payments |
9 |
|
|
6 |
|
|
20 |
|
|
18 |
|
|
30 - 25 |
Adjusted free cash
flow |
$ |
29 |
|
|
$ |
87 |
|
|
$ |
77 |
|
|
$ |
56 |
|
|
$160 - $170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, providing comparability between periods by
excluding certain items that may not be indicative of recurring
business operating results. The Company believes management and
investors benefit from referring to these supplemental measures in
assessing company performance and when planning, forecasting and
analyzing future periods. The Company defines Adjusted net income
as net income attributable to Visteon adjusted to eliminate the
impact of restructuring expense, loss on divestiture, gain on
non-consolidated affiliate transactions, discontinued operations
and related tax effects and other gains and losses not reflective
of the Company's ongoing 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 EndedJune 30 |
|
Six Months EndedJune 30 |
Net income
attributable to Visteon: |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Electronics |
|
$ |
36 |
|
|
$ |
45 |
|
|
$ |
99 |
|
|
$ |
100 |
|
Discontinued
operations |
|
(1 |
) |
|
— |
|
|
1 |
|
|
8 |
|
Net income attributable
to Visteon |
|
$ |
35 |
|
|
$ |
45 |
|
|
$ |
100 |
|
|
$ |
108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
Six Months Ended June 30, 2018 |
|
Electronics |
|
DiscontinuedOperations |
|
TotalVisteon |
|
Electronics |
|
DiscontinuedOperations |
|
TotalVisteon |
Diluted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
36 |
|
|
$ |
(1 |
) |
|
$ |
35 |
|
|
$ |
99 |
|
|
$ |
1 |
|
|
$ |
100 |
|
Average shares
outstanding, diluted (in millions) |
29.9 |
|
|
29.9 |
|
|
29.9 |
|
|
30.4 |
|
|
30.4 |
|
|
30.4 |
|
Diluted earnings per
share |
$ |
1.20 |
|
|
$ |
(0.03 |
) |
|
$ |
1.17 |
|
|
$ |
3.26 |
|
|
$ |
0.03 |
|
|
$ |
3.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
36 |
|
|
$ |
(1 |
) |
|
$ |
35 |
|
|
$ |
99 |
|
|
$ |
1 |
|
|
$ |
100 |
|
Restructuring
expense |
5 |
|
|
— |
|
|
5 |
|
|
10 |
|
|
— |
|
|
10 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
— |
|
|
(4 |
) |
Loss (income) from
discontinued operations, net of tax |
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Adjusted net income
* |
$ |
41 |
|
|
$ |
— |
|
|
$ |
41 |
|
|
$ |
105 |
|
|
$ |
— |
|
|
$ |
105 |
|
Average shares
outstanding, diluted (in millions) |
29.9 |
|
|
29.9 |
|
|
29.9 |
|
|
30.4 |
|
|
30.4 |
|
|
30.4 |
|
Adjusted earnings per
share |
$ |
1.37 |
|
|
$ |
— |
|
|
$ |
1.37 |
|
|
$ |
3.45 |
|
|
$ |
— |
|
|
$ |
3.45 |
|
*Tax impacts of adjustments less than $1M. |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017 |
|
Six Months Ended June 30, 2017 |
|
Electronics |
|
DiscontinuedOperations |
|
TotalVisteon |
|
Electronics |
|
DiscontinuedOperations |
|
TotalVisteon |
Diluted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
45 |
|
|
$ |
— |
|
|
$ |
45 |
|
|
$ |
100 |
|
|
$ |
8 |
|
|
$ |
108 |
|
Average shares
outstanding, diluted (in millions) |
32.0 |
|
|
— |
|
|
32.0 |
|
|
32.6 |
|
|
32.6 |
|
|
32.6 |
|
Diluted earnings per
share |
$ |
1.41 |
|
|
$ |
— |
|
|
$ |
1.41 |
|
|
$ |
3.07 |
|
|
$ |
0.24 |
|
|
$ |
3.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
45 |
|
|
$ |
— |
|
|
$ |
45 |
|
|
$ |
100 |
|
|
$ |
8 |
|
|
$ |
108 |
|
Restructuring
expense |
3 |
|
|
— |
|
|
3 |
|
|
4 |
|
|
— |
|
|
4 |
|
Other |
(4 |
) |
|
— |
|
|
(4 |
) |
|
(3 |
) |
|
— |
|
|
(3 |
) |
Income from
discontinued operations, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
|
(8 |
) |
Adjusted net income
* |
$ |
44 |
|
|
$ |
— |
|
|
$ |
44 |
|
|
$ |
101 |
|
|
$ |
— |
|
|
$ |
101 |
|
Average shares
outstanding, diluted (in millions) |
32.0 |
|
|
— |
|
|
32.0 |
|
|
32.6 |
|
|
32.6 |
|
|
32.6 |
|
Adjusted earnings per
share |
$ |
1.38 |
|
|
$ |
— |
|
|
$ |
1.38 |
|
|
$ |
3.10 |
|
|
$ |
— |
|
|
$ |
3.10 |
|
*Tax impacts of adjustments less than $1M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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