Visteon Corporation (NASDAQ: VC) today reported third quarter 2023
financial results. Highlights include:
- Sales of $1,014
million, representing base sales growth of
9%1
- 18th consecutive quarter of growth-over-market
2
- Net income of $66 million
or $2.32 per diluted share
- Adjusted EBITDA of $128
million
- New business wins of $5.8 billion
year-to-date
- $46 million of share repurchases in the third
quarter
- Updating guidance to
reflect strong year-to-date performance and market
outlook
Third Quarter Financial
Results
Visteon reported net sales of $1,014 million compared to $1,026
million in the third quarter of last year. When excluding the
impact of currency and pricing from supply chain recoveries,
Visteon's base sales grew 9% from the prior year, driven by the
ongoing ramp up of our recent product launches. Total global
vehicle production increased 4% from the prior year, however
Visteon customer production was flat over the same period. The
company's sales performance represents 9% growth-over-market, the
18th consecutive quarter of market out-performance.
Gross margin in the third quarter was $143 million, and net
income attributable to Visteon was $66 million or $2.32 per diluted
share. Adjusted EBITDA, a non-GAAP measure as defined below, was
$128 million for the third quarter or 12.6% of sales, an increase
of $33 million compared to the prior year. The increase in adjusted
EBITDA primarily reflects the favorable impact of higher sales
volumes and strong operating performance combined with the timing
of favorable commercial items.
For the first nine months cash provided by operations was $169
million, capital expenditures were $82 million, and adjusted free
cash flow, a non-GAAP financial measure as defined below, was $93
million. The company ended the third quarter with cash of $485
million and debt of $341 million.
Visteon's products launched on 33 vehicle models in the third
quarter. Key product launches included a follow-on digital cluster
launch on the Mercedes EQE, a new hybrid cluster program on the
Ford Transit Custom and Transit Courier in Europe, and follow-on
digital cluster launches on three high volume vehicle lines for
Tata in India.
Visteon has secured $5.8 billion in new business through the
first nine months of the year. Third quarter wins included our
first AllGo™ App Store and connected services win for an Indian
OEM. Visteon also won a conquest digital cockpit system with a
premium German OEM. Additional wins in the quarter included a 10"
Android-based infotainment system for a global OEM and a 25" dual
display and passenger display win for an electric SUV platform in
the North American market.
“We delivered strong results in the third quarter and continued
to strengthen our foundation for future growth,” said Sachin
Lawande, President and CEO. “I am proud of our recent win for our
AllGo™ App Store, which demonstrates that our product portfolio
continues to anticipate market trends.”
Visteon is updating its full-year 2023 guidance and anticipates
sales in the range of $3.950 – $4.025 billion, adjusted EBITDA in
the range of $415 – $445 million, and adjusted free cash flow in
the range of $115 – $165 million.
About Visteon
Visteon is advancing mobility through innovative
technology solutions that enable a software-defined and electric
future. With next-generation digital cockpit and electrification
products, Visteon leverages the strength and agility of its global
network with a local footprint to deliver a cleaner, safer and more
connected vehicle experience. Headquartered in Van Buren Township,
Michigan, Visteon operates in 17 countries worldwide, recorded
approximately $3.76 billion in annual sales and booked $6 billion
of new business in 2022. Learn more at
https://investors.visteon.com/.
Conference Call and
PresentationToday, Thursday, Oct. 26, 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: 1-888-330-2508Outside U.S./Canada:
1-240-789-2735Conference ID: 8897485
(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 replay of the conference call will be available through the
company’s website or by dialing 1-800-770-2030 (toll-free from the
U.S. and Canada) or 1-647-362-9199 (international). The conference
ID for the phone replay is 8897485. The phone replay will be
available for two weeks 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 2023, 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;
- continued and
future impacts related to the conflict between Russia and the
Ukraine including supply chain disruptions, reduction in customer
demand, and the imposition of sanctions on Russia;
- 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;
- failure of the
Company’s joint venture partners to comply with contractual
obligations or to exert influence or pressure in China;
- 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
avoid or continue to operate during a strike, or partial work
stoppage or slow down at any of our principal customers;
- 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;
- disruptions in
information technology systems including, but not limited to,
system failure, cyber-attack, malicious computer software (malware
including ransomware), unauthorized physical or electronic access,
or other natural or man-made incidents or disasters;
- 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, 2022, 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 September 30, 2023. 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/Visteonhttps://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 CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)(In millions except per share
amounts)(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
| Net sales |
$ |
1,014 |
|
|
$ |
1,026 |
|
|
$ |
2,964 |
|
|
$ |
2,692 |
|
| Cost of sales |
|
(871 |
) |
|
|
(922 |
) |
|
|
(2,607 |
) |
|
|
(2,438 |
) |
| Gross margin |
|
143 |
|
|
|
104 |
|
|
|
357 |
|
|
|
254 |
|
| Selling, general and
administrative expenses |
|
(52 |
) |
|
|
(47 |
) |
|
|
(156 |
) |
|
|
(134 |
) |
| Restructuring and
impairment |
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(12 |
) |
| Interest expense, net |
|
(1 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
| Equity in net (loss) income of
non-consolidated affiliates |
|
(1 |
) |
|
|
(1 |
) |
|
|
(8 |
) |
|
|
3 |
|
| Other income, net |
|
3 |
|
|
|
5 |
|
|
|
(4 |
) |
|
|
15 |
|
| Income (loss) before income
taxes |
|
92 |
|
|
|
58 |
|
|
|
180 |
|
|
|
119 |
|
| Provision for income
taxes |
|
(21 |
) |
|
|
(9 |
) |
|
|
(48 |
) |
|
|
(24 |
) |
| Net income (loss) |
|
71 |
|
|
|
49 |
|
|
|
132 |
|
|
|
95 |
|
| Less: Net (income) loss
attributable to non-controlling interests |
|
(5 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(5 |
) |
| Net income (loss) attributable
to Visteon Corporation |
$ |
66 |
|
|
$ |
44 |
|
|
$ |
120 |
|
|
$ |
90 |
|
| |
|
|
|
|
|
|
|
| Comprehensive income
(loss) |
$ |
58 |
|
|
$ |
15 |
|
|
$ |
114 |
|
|
$ |
21 |
|
| Less: Comprehensive (income)
loss attributable to non-controlling interests |
|
(4 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
4 |
|
| Comprehensive income (loss)
attributable to Visteon Corporation |
$ |
54 |
|
|
$ |
15 |
|
|
$ |
108 |
|
|
$ |
25 |
|
| |
|
|
|
|
|
|
|
| Basic earnings (loss) per
share attributable to Visteon Corporation |
$ |
2.35 |
|
|
$ |
1.57 |
|
|
$ |
4.26 |
|
|
$ |
3.20 |
|
| |
|
|
|
|
|
|
|
| Diluted earnings (loss) per
share attributable to Visteon Corporation |
$ |
2.32 |
|
|
$ |
1.54 |
|
|
$ |
4.20 |
|
|
$ |
3.16 |
|
| |
|
|
|
|
|
|
|
| Average shares outstanding (in
millions) |
|
|
|
|
|
|
|
| Basic |
|
28.1 |
|
|
|
28.1 |
|
|
|
28.2 |
|
|
|
28.1 |
|
| Diluted |
|
28.5 |
|
|
|
28.5 |
|
|
|
28.6 |
|
|
|
28.5 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In millions)
| |
(Unaudited) |
|
|
| |
September 30, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
| ASSETS |
|
|
|
| Cash and equivalents |
$ |
481 |
|
|
$ |
520 |
|
| Restricted cash |
|
4 |
|
|
|
3 |
|
| Accounts receivable, net |
|
679 |
|
|
|
672 |
|
| Inventories, net |
|
318 |
|
|
|
348 |
|
| Other current assets |
|
140 |
|
|
|
167 |
|
| Total current assets |
|
1,622 |
|
|
|
1,710 |
|
| |
|
|
|
| Property and equipment,
net |
|
377 |
|
|
|
364 |
|
| Intangible assets, net |
|
83 |
|
|
|
99 |
|
| Right-of-use assets |
|
115 |
|
|
|
124 |
|
| Investments in
non-consolidated affiliates |
|
36 |
|
|
|
49 |
|
| Other non-current assets |
|
124 |
|
|
|
104 |
|
| Total assets |
$ |
2,357 |
|
|
$ |
2,450 |
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
| Short-term debt |
$ |
18 |
|
|
$ |
13 |
|
| Accounts payable |
|
595 |
|
|
|
657 |
|
| Accrued employee
liabilities |
|
86 |
|
|
|
90 |
|
| Current lease liability |
|
30 |
|
|
|
29 |
|
| Other current liabilities |
|
219 |
|
|
|
246 |
|
| Total current liabilities |
|
948 |
|
|
|
1,035 |
|
| |
|
|
|
| Long-term debt, net |
|
323 |
|
|
|
336 |
|
| Employee benefits |
|
104 |
|
|
|
115 |
|
| Non-current lease
liability |
|
87 |
|
|
|
99 |
|
| Deferred tax liabilities |
|
30 |
|
|
|
27 |
|
| Other non-current
liabilities |
|
64 |
|
|
|
64 |
|
| |
|
|
|
| Stockholders’ equity: |
|
|
|
|
Common stock |
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
1,349 |
|
|
|
1,352 |
|
|
Retained earnings |
|
1,908 |
|
|
|
1,788 |
|
|
Accumulated other comprehensive loss |
|
(225 |
) |
|
|
(213 |
) |
|
Treasury stock |
|
(2,309 |
) |
|
|
(2,253 |
) |
| Total Visteon Corporation
stockholders’ equity |
|
724 |
|
|
|
675 |
|
| Non-controlling interests |
|
77 |
|
|
|
99 |
|
| Total equity |
|
801 |
|
|
|
774 |
|
| Total liabilities and
equity |
$ |
2,357 |
|
|
$ |
2,450 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions) (Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
OPERATING |
|
|
|
|
|
|
|
| Net income (loss) |
$ |
71 |
|
|
$ |
49 |
|
|
$ |
132 |
|
|
$ |
95 |
|
| Adjustments to reconcile net
income (loss) to net cash provided from (used by) operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
24 |
|
|
|
27 |
|
|
|
79 |
|
|
|
79 |
|
|
Non-cash stock-based compensation |
|
9 |
|
|
|
6 |
|
|
|
26 |
|
|
|
19 |
|
|
Equity in net loss (income) of non-consolidated affiliates, net of
dividends remitted |
|
1 |
|
|
|
4 |
|
|
|
8 |
|
|
|
— |
|
|
Impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
Other non-cash items |
|
1 |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(12 |
) |
|
|
(170 |
) |
|
|
(19 |
) |
|
|
(244 |
) |
|
Inventories |
|
6 |
|
|
|
(50 |
) |
|
|
23 |
|
|
|
(112 |
) |
|
Accounts payable |
|
35 |
|
|
|
175 |
|
|
|
(54 |
) |
|
|
173 |
|
|
Other assets and other liabilities |
|
(8 |
) |
|
|
35 |
|
|
|
(23 |
) |
|
|
(10 |
) |
|
Net cash (used by) provided from operating activities |
|
127 |
|
|
|
74 |
|
|
|
169 |
|
|
|
2 |
|
|
INVESTING |
|
|
|
|
|
|
|
| Capital expenditures,
including intangibles |
|
(31 |
) |
|
|
(18 |
) |
|
|
(82 |
) |
|
|
(54 |
) |
| Contributions to equity method
investments |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
| Settlement of derivatives
contracts |
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
9 |
|
| Other |
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
2 |
|
| Net cash used by investing
activities |
|
(31 |
) |
|
|
(13 |
) |
|
|
(80 |
) |
|
|
(44 |
) |
|
FINANCING |
|
|
|
|
|
|
|
| Borrowings on term debt
facility |
|
— |
|
|
|
350 |
|
|
|
— |
|
|
|
350 |
|
| Payments on term debt
facility |
|
— |
|
|
|
(350 |
) |
|
|
— |
|
|
|
(350 |
) |
| Short-term debt, net |
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
| Principal repayment of term
debt facility |
|
(4 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
| Dividends to non-controlling
interests |
|
(12 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
— |
|
| Repurchase of common
stock |
|
(46 |
) |
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
| Stock based compensation tax
withholding payments |
|
(1 |
) |
|
|
— |
|
|
|
(16 |
) |
|
|
— |
|
| Proceeds from the exercise of
stock options |
|
4 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
| Other |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
| Net cash used by financing
activities |
|
(62 |
) |
|
|
(3 |
) |
|
|
(119 |
) |
|
|
(7 |
) |
| Effect of exchange rate
changes on cash |
|
(8 |
) |
|
|
(18 |
) |
|
|
(8 |
) |
|
|
(41 |
) |
| Net decrease in cash,
equivalents, and restricted cash |
|
26 |
|
|
|
40 |
|
|
|
(38 |
) |
|
|
(90 |
) |
| Cash, equivalents, and
restricted cash at beginning of the period |
|
459 |
|
|
|
325 |
|
|
|
523 |
|
|
|
455 |
|
| Cash, equivalents, and
restricted cash at end of the period |
$ |
485 |
|
|
$ |
365 |
|
|
$ |
485 |
|
|
$ |
365 |
|
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, provision for income
taxes, non-cash stock-based compensation expense, restructuring and
impairment expense, net interest expense, net income attributable
to non-controlling interests, equity in net income of
non-consolidated affiliates, gain on non-consolidated affiliate
transactions, 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 |
|
Nine Months Ended |
|
Estimated |
| |
September 30, |
|
September 30, |
|
Full Year |
|
Visteon: |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
| Net income attributable to
Visteon Corporation |
$ |
66 |
|
|
$ |
44 |
|
|
$ |
120 |
|
|
$ |
90 |
|
|
$ |
170 |
|
|
Depreciation and amortization |
|
24 |
|
|
|
27 |
|
|
|
79 |
|
|
|
79 |
|
|
|
105 |
|
|
Provision for income taxes |
|
21 |
|
|
|
9 |
|
|
|
48 |
|
|
|
24 |
|
|
|
65 |
|
|
Non-cash, stock-based compensation expense |
|
9 |
|
|
|
6 |
|
|
|
26 |
|
|
|
19 |
|
|
|
35 |
|
|
Restructuring and impairment expense |
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
12 |
|
|
|
5 |
|
|
Interest expense, net |
|
1 |
|
|
|
2 |
|
|
|
7 |
|
|
|
7 |
|
|
|
10 |
|
|
Net income attributable to non-controlling interests |
|
5 |
|
|
|
5 |
|
|
|
12 |
|
|
|
5 |
|
|
|
15 |
|
|
Equity in net (loss) income of non-consolidated affiliates |
|
1 |
|
|
|
1 |
|
|
|
8 |
|
|
|
(3 |
) |
|
|
10 |
|
|
Other |
|
1 |
|
|
|
— |
|
|
|
15 |
|
|
|
12 |
|
|
|
15 |
|
| Adjusted EBITDA |
$ |
128 |
|
|
$ |
95 |
|
|
$ |
317 |
|
|
$ |
245 |
|
|
$ |
4303 |
|
| |
|
|
|
|
|
|
|
|
|
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 |
|
Nine Months Ended |
|
Estimated |
| |
September 30, |
|
September 30, |
|
Full Year |
|
Visteon: |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
| Cash provided from (used by)
operating activities |
$ |
127 |
|
|
$ |
74 |
|
|
$ |
169 |
|
|
$ |
2 |
|
|
$ |
260 |
|
| Capital expenditures,
including intangibles |
|
(31 |
) |
|
|
(18 |
) |
|
|
(82 |
) |
|
|
(54 |
) |
|
|
(130 |
) |
| Free cash flow |
$ |
96 |
|
|
$ |
56 |
|
|
$ |
87 |
|
|
$ |
(52 |
) |
|
$ |
130 |
|
| Restructuring related
payments |
|
2 |
|
|
|
3 |
|
|
|
6 |
|
|
|
12 |
|
|
|
10 |
|
| Adjusted free cash flow |
$ |
98 |
|
|
$ |
59 |
|
|
$ |
93 |
|
|
$ |
(40 |
) |
|
$ |
1404 |
|
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 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 and impairment expense, loss on
divestiture, gain on non-consolidated affiliate transactions, 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 |
|
Nine Months Ended |
| |
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net income
attributable to Visteon |
$ |
66 |
|
|
$ |
44 |
|
|
$ |
120 |
|
|
$ |
90 |
|
| |
|
|
|
|
|
|
|
| Diluted earnings per
share: |
|
|
|
|
|
|
|
| Net income attributable to
Visteon |
$ |
66 |
|
|
$ |
44 |
|
|
$ |
120 |
|
|
$ |
90 |
|
| Average shares outstanding,
diluted |
|
28.5 |
|
|
|
28.5 |
|
|
|
28.6 |
|
|
|
28.5 |
|
| Diluted earnings per
share |
$ |
2.32 |
|
|
$ |
1.54 |
|
|
$ |
4.20 |
|
|
$ |
3.16 |
|
| |
|
|
|
|
|
|
|
| Adjusted net income
and adjusted earnings per share: |
|
|
|
|
|
|
|
| Net income attributable to
Visteon |
$ |
66 |
|
|
$ |
44 |
|
|
$ |
120 |
|
|
$ |
90 |
|
| Restructuring and impairment
expense |
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
12 |
|
| Other, including tax effects
of adjustments |
|
1 |
|
|
|
— |
|
|
|
15 |
|
|
|
12 |
|
| Adjusted net income |
$ |
67 |
|
|
$ |
45 |
|
|
$ |
137 |
|
|
$ |
114 |
|
| Average shares outstanding,
diluted |
|
28.5 |
|
|
|
28.5 |
|
|
|
28.6 |
|
|
|
28.5 |
|
| Adjusted earnings per
share |
$ |
2.35 |
|
|
$ |
1.58 |
|
|
$ |
4.79 |
|
|
$ |
4.00 |
|
| |
|
|
|
|
|
|
|
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.
1 Excludes Y/Y impact of currency fluctuations and supply chain
recoveries2 Visteon Y/Y sales growth (ex. FX and net pricing)
compared to production for Visteon customers weighted on Visteon
sales contribution3 Based on mid-point of the range of the
Company's financial guidance4 Based on mid-point of the range of
the Company's financial guidance
Visteon Contacts:
Media:
Media@Visteon.com
Investors:
Investor@Visteon.com
Visteon (NASDAQ:VC)
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From Nov 2024 to Dec 2024
Visteon (NASDAQ:VC)
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From Dec 2023 to Dec 2024
