Visteon Corporation (NASDAQ: VC) today announced first-quarter net
sales of $746 million, representing a year-over-year increase of
14% excluding the impact of currency. Visteon’s sales performance
represented a 14% growth-over-market compared to the production
volumes of its customers.
Gross margin in the first quarter was $73
million, and net income attributable to Visteon was $16 million or
$0.56 per diluted share. Adjusted EBITDA, a non-GAAP measure as
defined below, was $64 million for the first quarter or 8.6% of
sales, an increase of $31 million or 350 basis points compared to
the prior year. Adjusted EBITDA margin benefited from higher
volumes as well as cost improvements initiated throughout 2020,
partially offset by incremental supply chain costs that impacted
margins by approximately 190 basis points.
During the first quarter, the company won $1.8
billion in new business, including its first win for microZone™
display technology. MicroZone™ is the first display technology in
the industry to offer premium optical performance without
sacrificing reliability or lifespan, thereby providing OEMs a
superior alternative to OLED displays. Also notable is the
company’s continued SmartCore™ domain controller momentum with
approximately $850 million total SmartCore™ wins in the first
quarter.
The company launched six new products in the
first quarter, with more than 50 total launches expected for the
full year. Most first-quarter launches were for digital clusters,
which are based on Visteon's industry-leading platform that enables
quick market introduction of this technology across multiple OEMs.
Highlights include a 12-inch digital cluster for Nissan, a
multi-display digital cluster for Jiangling Motors in China, and a
10-inch digital display for Hyundai.
Cash from operations for the first three months
was $11 million and capital expenditures were $18 million. Adjusted
free cash flow, a non-GAAP financial measure as defined below, for
the first three months of 2021 was positive $9 million, compared to
a use of cash of $14 million for the same period in 2020. The
company ended the first quarter with cash of $486 million and debt
of $349 million, representing a net cash position of $137
million.
“Following our strong performance in the second
half of 2020, Visteon continued to execute its growth strategy in
the first quarter of 2021," said President and CEO Sachin Lawande.
“The $1.8 billion of new business booked in the first quarter shows
the strength of our core products and their alignment with the key
industry trends of digitalization and electrification."
About Visteon
Visteon is a technology leader in automotive
electronics dedicated to creating a more enjoyable, connected and
safe driving experience. Our platforms leverage proven, scalable
hardware and software solutions that enable the digital, electric
and autonomous evolution of our global automotive customers.
Visteon products align with key industry trends and include digital
instrument clusters, displays, Android-based infotainment systems,
domain controllers, advanced driver assistance systems (ADAS) and
battery management systems. Visteon reported net sales of
approximately $2.5 billion and booked $4.6 billion of new business
in 2020. Learn more at https://investors.visteon.com/.
Conference Call and
Presentation
Today, Thursday, April 29, 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: 866-411-5196 Outside U.S./Canada:
970-297-2404Conference ID: 1997539
(Call approximately 15 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 first-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 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 1997539.
The phone replay will be available for one week following the
conference call.
__
Use of Non-GAAP Financial Information
Because not all companies use identical
calculations, adjusted EBITDA, adjusted net income, adjusted EPS,
free cash flow and adjusted free cash flow used throughout this
press release may not be comparable to other similarly titled
measures of other companies.
In order to provide the forward-looking non-GAAP
financial measures for full-year 2021, the company provides
reconciliations to the most directly comparable GAAP financial
measures on the subsequent slides. The provision of these
comparable GAAP financial measures is not intended to indicate that
the company 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.
Forward-looking Information
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "will," "may," "designed to,"
"outlook," "believes," "should," "anticipates," "plans," "expects,"
"intends," "estimates," "forecasts" and similar expressions
identify certain of these forward-looking statements.
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:
- continued and future impacts of the
coronavirus (COVID-19) pandemic on our financial condition and
business operations including global supply chain disruptions,
market downturns, reduced consumer demand and new government
actions or restrictions;
- significant or prolonged shortage of
critical components from our suppliers, including but not limited
to semiconductors, and particularly those who are our sole or
primary sources;
- 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, including work
stoppages at our customers, 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;
- our ability to execute on our
transformational plans and cost-reduction initiatives in the
amounts and on the timing contemplated;
- 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;
- our ability to access funds generated
by foreign subsidiaries and joint ventures on a timely and
cost-effective basis;
- general economic conditions, including
changes in interest rates and fuel prices; the timing and expenses
related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations;
- 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;
- changes in laws, regulations, policies
or other activities of governments, agencies and similar
organizations, domestic and foreign, that may tax or otherwise
increase the cost of, or otherwise affect, the manufacture,
licensing, distribution, sale, ownership or use of our products or
assets; and
- those factors identified in our
filings with the SEC (including our Annual Report on Form 10-K for
the fiscal year ended December 31, 2020, as updated by our
subsequent filings with the Securities and Exchange
Commission).
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 March 31, 2021. New business wins and re-wins do not
represent firm orders or firm commitments from customers, but are
based on various assumptions, including the timing and duration of
product launches, vehicle production levels, customer price
reductions and currency exchange rates.
Follow Visteon:
https://www.linkedin.com/company/visteon
https://twitter.com/visteon
https://www.facebook.com/VisteonCorporation
https://www.youtube.com/user/Visteon
http://www.slideshare.net/VisteonCorporation
https://www.instagram.com/visteon/
https://mp.weixin.qq.com/?lang=en_US
https://m.weibo.cn/u/6605315328
http://i.youku.com/u/UNDgyMjA1NjUxNg==?spm=a2h0k.8191407.0.0
Visteon Contacts:
Media: |
Investors: |
|
|
Dave Barthmuss |
Kris Doyle |
805-660-1914 |
201-247-3050 |
dave.barthmuss@visteon.com |
kdoyle@visteon.com |
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)(In millions except per share
amounts)(Unaudited)
|
Three Months Ended |
|
March 31, |
|
2021 |
|
2020 |
|
|
|
|
Net sales |
$ |
746 |
|
|
|
$ |
643 |
|
|
Cost of sales |
(673 |
) |
|
|
(590 |
) |
|
Gross margin |
73 |
|
|
|
53 |
|
|
Selling, general and
administrative expenses |
(45 |
) |
|
|
(54 |
) |
|
Restructuring, net |
1 |
|
|
|
(33 |
) |
|
Interest expense, net |
(2 |
) |
|
|
(2 |
) |
|
Equity in net income of
non-consolidated affiliates |
— |
|
|
|
1 |
|
|
Other income, net |
4 |
|
|
|
4 |
|
|
Income (loss) before income
taxes |
31 |
|
|
|
(31 |
) |
|
Provision for income
taxes |
(12 |
) |
|
|
(5 |
) |
|
Net income (loss) |
19 |
|
|
|
(36 |
) |
|
Less: Net (income) loss
attributable to non-controlling interests |
(3 |
) |
|
|
1 |
|
|
Net income (loss) attributable
to Visteon Corporation |
$ |
16 |
|
|
|
$ |
(35 |
) |
|
|
|
|
|
Comprehensive income
(loss) |
$ |
1 |
|
|
|
$ |
(73 |
) |
|
Less: Comprehensive (income)
loss attributable to non-controlling interests |
(2 |
) |
|
|
1 |
|
|
Comprehensive income (loss)
attributable to Visteon Corporation |
$ |
(1 |
) |
|
|
$ |
(72 |
) |
|
|
|
|
|
Basic earnings (loss) per
share attributable to Visteon Corporation |
$ |
0.57 |
|
|
|
$ |
(1.25 |
) |
|
|
|
|
|
Diluted earnings (loss) per
share attributable to Visteon Corporation |
$ |
0.56 |
|
|
|
$ |
(1.25 |
) |
|
|
|
|
|
Average shares outstanding (in
millions) |
|
|
|
Basic |
27.9 |
|
|
|
27.9 |
|
|
Diluted |
28.4 |
|
|
|
27.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In millions)
|
(Unaudited) |
|
|
|
March 31, |
|
December 31, |
|
2021 |
|
2020 |
ASSETS |
|
|
|
Cash and equivalents |
$ |
482 |
|
|
|
$ |
496 |
|
|
Restricted cash |
4 |
|
|
|
4 |
|
|
Accounts receivable, net |
466 |
|
|
|
484 |
|
|
Inventories, net |
188 |
|
|
|
177 |
|
|
Other current assets |
152 |
|
|
|
180 |
|
|
Total current assets |
1,292 |
|
|
|
1,341 |
|
|
|
|
|
|
Property and equipment,
net |
414 |
|
|
|
436 |
|
|
Intangible assets, net |
123 |
|
|
|
127 |
|
|
Right-of-use assets |
162 |
|
|
|
172 |
|
|
Investments in
non-consolidated affiliates |
57 |
|
|
|
60 |
|
|
Other non-current assets |
123 |
|
|
|
135 |
|
|
Total assets |
$ |
2,171 |
|
|
|
$ |
2,271 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Accounts payable |
$ |
486 |
|
|
|
$ |
500 |
|
|
Accrued employee
liabilities |
69 |
|
|
|
83 |
|
|
Current lease liability |
31 |
|
|
|
32 |
|
|
Other current liabilities |
189 |
|
|
|
209 |
|
|
Total current liabilities |
775 |
|
|
|
824 |
|
|
|
|
|
|
Long-term debt, net |
349 |
|
|
|
349 |
|
|
Employee benefits |
307 |
|
|
|
322 |
|
|
Non-current lease
liability |
137 |
|
|
|
146 |
|
|
Deferred tax liabilities |
30 |
|
|
|
28 |
|
|
Other non-current
liabilities |
67 |
|
|
|
92 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
1,337 |
|
|
|
1,348 |
|
|
Retained earnings |
1,639 |
|
|
|
1,623 |
|
|
Accumulated other comprehensive loss |
(321 |
) |
|
|
(304 |
) |
|
Treasury stock |
(2,272 |
) |
|
|
(2,281 |
) |
|
Total Visteon Corporation
stockholders’ equity |
384 |
|
|
|
387 |
|
|
Non-controlling interests |
122 |
|
|
|
123 |
|
|
Total equity |
506 |
|
|
|
510 |
|
|
Total liabilities and
equity |
$ |
2,171 |
|
|
|
$ |
2,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions) (Unaudited)
|
Three Months Ended |
|
March 31, |
|
2021 |
|
2020 |
OPERATING |
|
|
|
Net income (loss) |
$ |
19 |
|
|
|
$ |
(36 |
) |
|
Adjustments to reconcile net
income (loss) to net cash provided from (used by) operating
activities: |
|
|
|
Depreciation and amortization |
27 |
|
|
|
25 |
|
|
Non-cash stock-based compensation |
4 |
|
|
|
5 |
|
|
Equity in net income (loss) of non-consolidated affiliates, net of
dividends remitted |
— |
|
|
|
(1 |
) |
|
Other non-cash items |
1 |
|
|
|
6 |
|
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
4 |
|
|
|
102 |
|
|
Inventories |
(17 |
) |
|
|
(16 |
) |
|
Accounts payable |
2 |
|
|
|
(42 |
) |
|
Other assets and other liabilities |
(29 |
) |
|
|
(18 |
) |
|
Net cash provided from
operating activities |
11 |
|
|
|
25 |
|
|
INVESTING |
|
|
|
Capital expenditures,
including intangibles |
(18 |
) |
|
|
(44 |
) |
|
Loan repayments from
non-consolidated affiliates |
2 |
|
|
|
2 |
|
|
Other |
1 |
|
|
|
1 |
|
|
Net cash used by investing
activities |
(15 |
) |
|
|
(41 |
) |
|
FINANCING |
|
|
|
Borrowings on revolving credit
facility |
— |
|
|
|
400 |
|
|
Repurchase of common
stock |
— |
|
|
|
(16 |
) |
|
Dividends paid to
non-controlling interests |
— |
|
|
|
(7 |
) |
|
Net cash provided from
financing activities |
— |
|
|
|
377 |
|
|
Effect of exchange rate
changes on cash |
(10 |
) |
|
|
(5 |
) |
|
Net increase (decrease) in
cash |
(14 |
) |
|
|
356 |
|
|
Cash, cash equivalents, and
restricted cash at beginning of the period |
500 |
|
|
|
469 |
|
|
Cash, cash equivalents, and
restricted cash at end of the period |
$ |
486 |
|
|
|
$ |
825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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 divestiture, equity in net income of
non-consolidated affiliates, 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 |
|
March 31, |
Visteon: |
2021 |
|
2020 |
Net income (loss) attributable to Visteon Corporation |
$ |
16 |
|
|
|
$ |
(35 |
) |
|
Depreciation and amortization |
27 |
|
|
|
25 |
|
|
Provision for income taxes |
12 |
|
|
|
5 |
|
|
Non-cash, stock-based compensation expense |
4 |
|
|
|
5 |
|
|
Interest expense, net |
2 |
|
|
|
2 |
|
|
Net income (loss) attributable to non-controlling interests |
3 |
|
|
|
(1 |
) |
|
Restructuring, net |
(1 |
) |
|
|
33 |
|
|
Equity in net income of non-consolidated affiliates |
— |
|
|
|
(1 |
) |
|
Other |
1 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
64 |
|
|
|
$ |
33 |
|
|
|
|
|
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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, including intangibles. The
Company defines adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, including
intangibles as further adjusted for restructuring 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 |
|
March 31, |
Visteon: |
2021 |
|
2020 |
Cash provided from operating activities |
$ |
11 |
|
|
|
$ |
25 |
|
|
Capital expenditures,
including intangibles |
(18 |
) |
|
|
(44 |
) |
|
Free cash flow |
$ |
(7 |
) |
|
|
$ |
(19 |
) |
|
Restructuring related
payments |
16 |
|
|
|
5 |
|
|
Adjusted free cash flow |
$ |
9 |
|
|
|
$ |
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
Adjusted Net Income (Loss) and Adjusted
Earnings (Loss) 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, net, loss on divestiture, gain on
non-consolidated affiliate transactions, discontinued operations,
other gains and losses not reflective of the Company's ongoing
operations and related tax effects. 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 |
|
March 31, |
|
2021 |
|
2020 |
Net income (loss) attributable to Visteon |
$ |
16 |
|
|
|
$ |
(35 |
) |
|
|
|
|
|
Diluted earnings per
share: |
|
|
|
Net income (loss) attributable
to Visteon |
$ |
16 |
|
|
|
$ |
(35 |
) |
|
Average shares outstanding,
diluted |
28.4 |
|
|
|
27.9 |
|
|
Diluted earnings (loss) per
share |
$ |
0.56 |
|
|
|
$ |
(1.25 |
) |
|
|
|
|
|
Adjusted net income
(loss) and adjusted earnings (loss) per
share: |
|
|
|
Net income (loss) attributable
to Visteon |
$ |
16 |
|
|
|
$ |
(35 |
) |
|
Restructuring, net |
(1 |
) |
|
|
33 |
|
|
Other non-operating |
1 |
|
|
|
— |
|
|
Adjusted net income
(loss) |
$ |
16 |
|
|
|
$ |
(2 |
) |
|
Average shares outstanding,
diluted |
28.4 |
|
|
|
27.9 |
|
|
Adjusted earnings (loss) per
share |
$ |
0.56 |
|
|
|
$ |
(0.07 |
) |
|
|
|
|
|
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 internal planning
and forecasting purposes.
Visteon (NASDAQ:VC)
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From Jun 2024 to Jul 2024
Visteon (NASDAQ:VC)
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From Jul 2023 to Jul 2024