LIVONIA, Mich., Feb. 14, 2017 /PRNewswire/ -- Tower
International, Inc. (NYSE: TOWR), a leading integrated global
manufacturer of engineered automotive structural metal components
and assemblies, today announced fourth quarter 2016 results,
provided a preliminary outlook for 2017, and discussed its outlook
for revenue growth through 2019.
- Revenue for the fourth quarter was $462.3 million, up 2% from $454.9 million in the fourth quarter
2015.
- Net income in the fourth quarter was $16.9 million or $0.81 per diluted share, compared with
$145.1 million of $6.76 per diluted share last year. As
detailed below, this year's fourth quarter included certain items
which adversely impacted results by $4.3
million. Certain items in the fourth quarter a year ago
favorably affected results by $128.5
million, reflecting primarily the release of a U.S. tax
valuation allowance. Excluding these certain items in both
periods, Diluted Adjusted Earnings Per Share were $1.02 in the fourth quarter 2016, compared with
$0.77 a year ago.
- Adjusted EBITDA for the quarter was $56.2 million, compared with $45.9 million a year ago, an increase of 22
percent from last year. The year-over-year increase reflected
primarily the benefit of major new business wins, lower launch
costs and favorable commercial settlements.
- In the fourth quarter the company generated $62.6 million of free cash flow bringing full
year 2016 free cash flow to $21.4
million.
- Net debt at December 31, 2016 was
$327.5 million, an improvement of
$66 million from September 30 (excluding cash attributable to
discontinued operations). This reflected the significant free
cash flow generation in the fourth quarter and $4 million received for the previously disclosed
divestiture of a joint venture in China.
- Year-end liquidity was $292
million increasing $54 million
from the end of the third quarter.
- For full year 2017, the preliminary outlook includes:
- 1% growth in revenue, to $1.925
billion, despite an anticipated currency translation
headwind of $35 million (with an
average Euro assumption of $1.05),
and a 1.5% year-over-year decrease in forecasted North American
industry production;
- Adjusted EBITDA up 4%, to about $210
million;
- Adjusted EBITDA margin increasing by 40 basis points, to
10.9%;
- Diluted Adjusted Earnings Per Share of $3.60, an increase of 7% from 2016; and
- Free cash flow of $55 million
with strong cash flow in the second half of the year more than
offsetting the cash outflow in the first half of the year.
- The Company's outlook for first quarter 2017 includes revenue
of $480 million, Adjusted EBITDA of
$43 million, and Diluted Adjusted
Earnings Per Share of $0.60.
- The Company has also secured approximately $225 million in net new business for 2018 and
2019. About two thirds of this incremental revenue is
expected to occur in 2019, and the average Adjusted EBITDA margin
of the new business is expected to be about 15%. The launch
of these programs should allow the Company to grow significantly
faster than the overall automotive market and contribute to
Adjusted EBITDA margin expansion, which is expected to increase by
more than 100 basis points from the 10.5% recorded for full year
2016.
"Tower delivered solid financial results in the fourth quarter
as revenue, Adjusted EBITDA, Adjusted EPS and free cash flow were
all above our previous outlook," said CEO Jim Gouin. "With a solid order book of net
new business through 2019, Tower is well positioned to grow revenue
at a CAGR of 5 points above industry compared to 2017, while
expanding margins and generating significant free cash flow."
Tower to Host Conference Call Today at 11 a.m. EST
Tower will discuss its fourth quarter 2016 results, the outlook
for 2017, and other related matters in a conference call at
11 a.m. EST today. Participants
may listen to the audio portion of the conference call either
through a live audio webcast on the Company's website or by
telephone. The slide presentation and webcast can be accessed
via the investor relations portion of Tower's website
www.towerinternational.com.
To dial into the conference call, domestic callers should dial
(866) 393-4576, international callers should dial (706)
679-1462. An audio recording of the call will be available
approximately two hours after the completion of the call. To
access this recording, please dial (855) 859-2056 (domestic) or
(404) 537-3406 (international) and reference Conference I.D.
#66570867. A webcast replay will also be available and may be
accessed via Tower's website.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures: "Adjusted EBITDA", "Adjusted EBITDA margin", "Diluted
Adjusted Earnings Per Share", "free cash flow", and "net debt."
We define Adjusted EBITDA as net income / (loss) before
interest, taxes, depreciation, amortization, restructuring items
and other adjustments described in the reconciliations provided in
this presentation. Diluted Adjusted Earnings Per Share
exclude certain income and expense items described in the
reconciliation provided in this press release. Free cash flow
is defined as cash provided by operating activities less cash
disbursed for purchases of property, plant and equipment.
Adjusted free cash flow is free cash flow excluding cash
received or disbursed for customer tooling. Net debt
represents total debt less cash and cash equivalents. We use
Adjusted EBITDA, Adjusted EBITDA margin, adjusted earnings per
share, free cash flow, free cash flow and net debt as supplements
to information provided in accordance with generally accepted
accounting principles ("GAAP") in evaluating our business and they
are included in this press release because they are principal
factors upon which our management assesses performance.
Reconciliations of these non-GAAP financial measures to the
most directly comparable financial measures calculated in
accordance with GAAP are set forth below. The non-GAAP
measures presented above are not measures of performance under
GAAP. These measures should not be considered as alternatives
for the most directly comparable financial measures calculated in
accordance with GAAP. Other companies in our industry may
define these non-GAAP measures differently than we do and, as a
result, these non-GAAP measures may not be comparable to similarly
titled measures used by other companies in our industry; and
certain of our non-GAAP financial measures exclude financial
information that some may consider important in evaluating our
performance. Given the inherent uncertainty regarding mark to
market adjustments of financial instruments, fair value adjustments
to our pension plan, potential gain or loss on our discontinued
operations, potential restructuring expenses, and expenses related
to our long-term incentive compensation programs in any future
period, a reconciliation of forward-looking financial measures to
the most directly comparable financial measures calculated and
presented in accordance with GAAP is not feasible.
Consequently, any attempt to disclose such reconciliations would
imply a degree of precision that could be confusing or misleading
to investors. The magnitude of these items, however, may be
significant.
Forward-Looking Statements and Risk Factors
This press release contains statements which constitute
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, including but not limited
to statements regarding the Company's projected revenue, adjusted
EBITDA, diluted adjusted earnings per share, free cash flow and
statements regarding new sources of profitable growth, future
financial results and the Company's future business outlook. The
forward-looking statements can be identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend,"
"project," "target," and other similar expressions.
Forward-looking statements are made as of the date of this press
release and are based upon management's current expectations and
beliefs concerning future developments and their potential effects
on us. Such forward-looking statements are not guarantees of
future performance. The following important factors, as well
as risk factors described in our reports filed with the SEC, could
cause our actual results to differ materially from estimates or
expectations reflected in such forward-looking statements:
- global automobile production volumes;
- the financial condition of our customers and suppliers;
- our ability to make scheduled payments of principal or interest
on our indebtedness and comply with the covenants and restrictions
contained in the instruments governing our indebtedness;
- our ability to refinance our indebtedness;
- risks associated with our non-U.S. operations, including
foreign exchange risks and economic uncertainty in some
regions;
- any increase in the expense and funding requirements of our
pension and other postretirement benefits;
- our customers' ability to obtain equity and debt financing for
their businesses;
- our dependence on our largest customers;
- pricing pressure from our customers;
- work stoppages or other labor issues affecting us or our
customers or suppliers;
- our ability to integrate acquired businesses;
- risks associated with business divestitures including
volatility in the capital markets, the capacity of potential
bidders to finance transactions and the difficulty of predicting
the outcome of negotiations; and
- costs or liabilities relating to environmental and safety
regulations.
We do not assume any obligation to update or revise the
forward-looking statements contained in this press release.
Contact:
Derek
Fiebig
Executive Director, Investor & External Relations
(248) 675-6457
fiebig.derek@towerinternational.com
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share amounts -
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
462,274
|
|
$
454,922
|
|
$
1,913,641
|
|
$
1,796,103
|
Cost of
sales
|
|
403,332
|
|
406,549
|
|
1,675,232
|
|
1,578,231
|
Gross profit
|
|
58,942
|
|
48,373
|
|
238,409
|
|
217,872
|
Selling, general, and
administrative expenses
|
|
35,427
|
|
33,857
|
|
131,552
|
|
124,459
|
Amortization
expense
|
|
105
|
|
-
|
|
449
|
|
249
|
Restructuring and
asset impairment charges, net
|
|
2,607
|
|
835
|
|
5,389
|
|
7,819
|
Operating
income
|
|
20,803
|
|
13,681
|
|
101,019
|
|
85,345
|
Interest
expense
|
|
3,451
|
|
6,026
|
|
21,618
|
|
23,847
|
Interest
income
|
|
506
|
|
109
|
|
614
|
|
125
|
Other
expense
|
|
-
|
|
-
|
|
6,481
|
|
-
|
Income before provision
for income taxes and income / (loss) from
discontinued operations
|
|
17,858
|
|
7,764
|
|
73,534
|
|
61,623
|
Provision /
(benefit) for income taxes
|
|
3,476
|
|
(129,131)
|
|
17,246
|
|
(123,844)
|
Income from
continuing operations
|
|
14,382
|
|
136,895
|
|
56,288
|
|
185,467
|
Income / (loss) from
discontinued operations, net of tax
|
|
2,991
|
|
8,764
|
|
(17,008)
|
|
10,324
|
Net
income
|
|
17,373
|
|
145,659
|
|
39,280
|
|
195,791
|
Less:
Net income attributable to the noncontrolling interests
|
|
488
|
|
577
|
|
701
|
|
1,739
|
Net income attributable
to Tower International, Inc.
|
|
$
16,885
|
|
$
145,082
|
|
$
38,579
|
|
$
194,052
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
20,345,078
|
|
21,110,291
|
|
20,864,321
|
|
21,093,387
|
Weighted average
diluted shares outstanding
|
|
20,775,024
|
|
21,449,037
|
|
21,222,183
|
|
21,408,301
|
|
|
|
|
|
|
|
|
|
Basic income per
share attributable to Tower International, Inc.:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
0.68
|
|
$
6.46
|
|
$
2.66
|
|
$
8.71
|
Income / (loss) per
share from discontinued operations
|
|
0.15
|
|
0.42
|
|
(0.82)
|
|
0.49
|
Income per
share
|
|
0.83
|
|
6.87
|
|
1.85
|
|
9.20
|
|
|
|
|
|
|
|
|
|
Diluted income per
share attributable to Tower International, Inc.:
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
0.67
|
|
$
6.36
|
|
$
2.62
|
|
$
8.58
|
Income / (loss) per
share from discontinued operations
|
|
0.14
|
|
0.41
|
|
(0.80)
|
|
0.48
|
Income per
share
|
|
0.81
|
|
6.76
|
|
1.82
|
|
9.06
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
$
0.11
|
|
$
0.10
|
|
$
0.41
|
|
$
0.10
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Amounts in
thousands, except share data - unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
62,788
|
|
$
121,594
|
Accounts receivable,
net of allowance of $961 and $1,277
|
|
178,251
|
|
223,735
|
Inventories
|
|
71,710
|
|
66,648
|
Assets held for
sale
|
|
102,252
|
|
113,664
|
Prepaid tooling,
notes receivable, and other
|
|
103,023
|
|
68,242
|
Total current
assets
|
|
518,024
|
|
593,883
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
465,569
|
|
427,887
|
Goodwill
|
|
56,383
|
|
59,340
|
Deferred tax
asset
|
|
112,645
|
|
127,207
|
Other assets,
net
|
|
9,902
|
|
7,180
|
Total
assets
|
|
$
1,162,523
|
|
$
1,215,497
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current maturities of capital lease obligations
|
|
$
34,211
|
|
$
29,492
|
Accounts
payable
|
|
258,129
|
|
268,008
|
Accrued
liabilities
|
|
114,079
|
|
100,529
|
Liabilities held for
sale
|
|
53,310
|
|
44,157
|
Total current
liabilities
|
|
459,729
|
|
442,186
|
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
351,232
|
|
409,116
|
Obligations under
capital leases, net of current maturities
|
|
4,863
|
|
5,984
|
Deferred tax
liability
|
|
5,594
|
|
6,167
|
Pension
liability
|
|
61,627
|
|
65,621
|
Other non-current
liabilities
|
|
65,539
|
|
79,704
|
Total non-current
liabilities
|
|
488,855
|
|
566,592
|
Total
liabilities
|
|
948,584
|
|
1,008,778
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Tower International,
Inc.'s stockholders' equity
|
|
|
|
|
Common
stock
|
|
221
|
|
220
|
Additional paid in capital
|
|
340,623
|
|
337,864
|
Treasury
stock
|
|
(35,645)
|
|
(16,067)
|
Accumulated deficit
|
|
(14,021)
|
|
(44,030)
|
Accumulated other comprehensive
loss
|
|
(83,383)
|
|
(80,492)
|
Total Tower International,
Inc.'s stockholders' equity
|
|
207,795
|
|
197,495
|
Noncontrolling
interests in subsidiaries
|
|
6,144
|
|
9,224
|
Total
stockholders' equity
|
|
213,939
|
|
206,719
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
1,162,523
|
|
$
1,215,497
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
17,373
|
|
$
145,659
|
|
$
39,280
|
|
$
195,791
|
Less: Income / (loss)
from discontinued operations, net of tax
|
|
2,991
|
|
8,764
|
|
(17,008)
|
|
10,324
|
Income from
continuing operations
|
|
$
14,382
|
|
$
136,895
|
|
$
56,288
|
|
$
185,467
|
|
|
|
|
|
|
|
|
|
Adjustments required
to reconcile income from continuing operations to net cash provided
by
continuing operating activities:
|
|
|
|
|
|
|
|
|
Deferred income tax
provision / (benefit)
|
|
$
3,691
|
|
$
(130,726)
|
|
$
9,546
|
|
$
(130,964)
|
Depreciation and
amortization
|
|
19,086
|
|
18,315
|
|
72,469
|
|
72,542
|
Non-cash share-based
compensation
|
|
910
|
|
508
|
|
2,455
|
|
2,322
|
Pension income /
(loss), net of contributions
|
|
5,852
|
|
(3,849)
|
|
(1,999)
|
|
(14,116)
|
Change in working
capital and other operating items
|
|
61,412
|
|
41,784
|
|
(1,051)
|
|
(13,838)
|
Net cash provided by
continuing operating activities
|
|
$
105,333
|
|
$
62,927
|
|
$
137,708
|
|
$
101,413
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash disbursed for
purchases of property, plant, and equipment, net
|
|
$
(42,767)
|
|
$
(63,311)
|
|
$
(116,283)
|
|
$
(119,749)
|
Return from joint
venture
|
|
4,546
|
|
-
|
|
4,546
|
|
-
|
Acquisition, net of
cash
|
|
-
|
|
-
|
|
-
|
|
(21,740)
|
Net cash used in
continuing investing activities
|
|
$
(38,221)
|
|
$
(63,311)
|
|
$
(111,737)
|
|
$
(141,489)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings
|
|
$
123,081
|
|
$
31,338
|
|
$
581,833
|
|
$
125,290
|
Repayments of
borrowings
|
|
(169,482)
|
|
(37,282)
|
|
(587,146)
|
|
(133,116)
|
Repayments on Term
Loan Credit Facility
|
|
-
|
|
-
|
|
(50,000)
|
|
(25,000)
|
Proceeds from
termination of cross currency swaps
|
|
-
|
|
-
|
|
-
|
|
32,377
|
Dividend payment to
Tower shareholders
|
|
(2,236)
|
|
(2,111)
|
|
(8,570)
|
|
(2,111)
|
Proceeds from stock
options exercised
|
|
237
|
|
42
|
|
305
|
|
204
|
Purchase of treasury
stock
|
|
(1,045)
|
|
-
|
|
(19,578)
|
|
(6,551)
|
Noncontrolling
interest dividends and other activity
|
|
-
|
|
(2,633)
|
|
-
|
|
(2,633)
|
Net cash used in
continuing financing activities
|
|
$
(49,445)
|
|
$
(10,646)
|
|
$
(83,156)
|
|
$
(11,540)
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Net cash from / (used
in) discontinued operating activities
|
|
$
2,318
|
|
$
(5,965)
|
|
$
6,032
|
|
$
15,586
|
Net cash from (used
in) discontinued investing activities
|
|
(1,479)
|
|
40,815
|
|
(3,589)
|
|
41,809
|
Net cash used in
discontinued financing activities
|
|
(542)
|
|
(1,711)
|
|
(3,441)
|
|
(11,361)
|
Net
cash from / (used in) discontinued operations
|
|
$
297
|
|
$
33,139
|
|
$
(998)
|
|
$
46,034
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on continuing cash and cash equivalents
|
|
$
(2,392)
|
|
$
(1,789)
|
|
$
(623)
|
|
$
(5,508)
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
$
15,572
|
|
$
20,320
|
|
$
(58,806)
|
|
$
(11,090)
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS:
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
$
47,216
|
|
$
101,274
|
|
$
121,594
|
|
$
132,684
|
|
|
|
|
|
|
|
|
|
End of
period
|
|
$
62,788
|
|
$
121,594
|
|
$
62,788
|
|
$
121,594
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
SEGMENT DATA AND
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Data
|
|
Three Months Ended
December 31,
|
|
|
2016
|
|
2015
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Revenues
|
|
Adjusted
EBITDA
|
Europe
|
|
$
155,243
|
|
$
18,007
|
|
$
156,649
|
|
$
15,863
|
North
America
|
|
307,031
|
|
38,238
|
|
298,273
|
|
30,003
|
Consolidated
|
|
$
462,274
|
|
$
56,245
|
|
$
454,922
|
|
$
45,866
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Revenues
|
|
Adjusted
EBITDA
|
Europe
|
|
$
639,307
|
|
$
55,314
|
|
$
652,600
|
|
$
57,057
|
North
America
|
|
1,274,334
|
|
146,408
|
|
1,143,503
|
|
131,252
|
Consolidated
|
|
$
1,913,641
|
|
$
201,722
|
|
$
1,796,103
|
|
$
188,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Adjusted
EBITDA
|
|
$
56,245
|
|
$
45,867
|
|
$
201,722
|
|
188,309
|
Restructuring and
asset impairment charges, net
|
|
(2,607)
|
|
(835)
|
|
(5,389)
|
|
(7,819)
|
Depreciation and
amortization
|
|
(19,086)
|
|
(18,315)
|
|
(72,469)
|
|
(72,542)
|
Acquisition costs and
other
|
|
(104)
|
|
(107)
|
|
(422)
|
|
(805)
|
Long-term
compensation expense
|
|
(5,315)
|
|
(3,811)
|
|
(14,093)
|
|
(12,680)
|
Pension actuarial
loss
|
|
(8,330)
|
|
(9,118)
|
|
(8,330)
|
|
(9,118)
|
Interest expense,
net
|
|
(2,945)
|
|
(5,917)
|
|
(21,004)
|
|
(23,722)
|
Other
expense
|
|
-
|
|
-
|
|
(6,481)
|
|
-
|
Provision / (benefit)
for income taxes
|
|
(3,476)
|
|
129,131
|
|
(17,246)
|
|
123,844
|
Income / (loss) from
discontinued operations, net of tax
|
|
2,991
|
|
8,764
|
|
(17,008)
|
|
10,324
|
Net income
attributable to noncontrolling interests
|
|
(488)
|
|
(577)
|
|
(701)
|
|
(1,739)
|
Net income attributable
to Tower International, Inc.
|
|
$
16,885
|
|
$
145,082
|
|
$
38,579
|
|
$
194,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash
Flow Reconciliation
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net cash provided by
continuing operating activities
|
|
$
105,333
|
|
$
62,927
|
|
$
137,728
|
|
$
101,413
|
Cash disbursed for
purchases of PP&E
|
|
(42,767)
|
|
(63,311)
|
|
(116,303)
|
|
(119,749)
|
Free cash
flow
|
|
62,566
|
|
(384)
|
|
21,425
|
|
(18,336)
|
Net cash received /
(disbursed) for customer-owned tooling
|
|
19,560
|
|
12,405
|
|
(32,509)
|
|
(27,400)
|
Adjusted free cash
flow
|
|
$
43,006
|
|
$
(12,789)
|
|
$
53,934
|
|
$
9,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Reconciliation
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2016
|
|
2015
|
Short-term debt and
current maturities of capital lease obligations
|
|
|
|
|
|
$
34,211
|
|
$
29,492
|
Long-term debt, net
of current maturities
|
|
|
|
|
|
357,298
|
|
418,078
|
Debt issue
costs
|
|
|
|
|
|
(6,066)
|
|
(8,962)
|
Obligations under
capital leases, net of current maturities
|
|
|
|
|
|
4,863
|
|
5,984
|
Total debt
|
|
|
|
|
|
390,306
|
|
444,592
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
(62,788)
|
|
(121,594)
|
Add: Cash
attributable to discontinued operations
|
|
|
|
|
|
-
|
|
8,720
|
Net debt
|
|
|
|
|
|
$
327,518
|
|
$
331,718
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
|
|
|
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
|
|
|
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Pension actuarial loss
|
|
$
(5,415)
|
|
$
(9,118)
|
|
$
(8,330)
|
|
$
(9,118)
|
Selling, general,
and administrative expenses
|
|
|
|
|
|
|
|
|
One-time
CEO compensation awards
|
|
(1,375)
|
|
(306)
|
|
(2,115)
|
|
(306)
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
Lease
buyout of previously closed facility
|
|
(1,186)
|
|
-
|
|
(1,824)
|
|
-
|
Interest
expense
|
|
|
|
|
|
|
|
|
Mark-to-market gain / (loss) on
derivative financial instruments
|
|
653
|
|
(1,324)
|
|
1,005
|
|
(1,324)
|
Tax
expense
|
|
|
|
|
|
|
|
|
Release
of valuation allowances, net
|
|
553
|
|
131,095
|
|
553
|
|
131,095
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Income
from discontinued operations
|
|
2,991
|
|
8,764
|
|
2,991
|
|
8,764
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interests*
|
|
(488)
|
|
(577)
|
|
(488)
|
|
(577)
|
Total items included
in net income, net of tax
|
|
$
(4,267)
|
|
$
128,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Tower International, Inc.
|
|
$
16,885
|
|
$
145,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,345
|
|
21,110
|
|
|
|
|
Diluted
|
|
20,775
|
|
21,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share (GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.83
|
|
$
6.87
|
|
|
|
|
Diluted
|
|
0.81
|
|
6.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)
|
|
$
1.02
|
|
$
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
attributable to noncontrolling interests of discontinued
operations
|
|
|
|
|
|
|
|
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
|
|
|
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
|
|
|
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Pension actuarial loss
|
|
$
(5,415)
|
|
$
(9,118)
|
|
$
(8,330)
|
|
$
(9,118)
|
Selling, general,
and administrative expenses
|
|
|
|
|
|
|
|
|
One-time
CEO compensation awards
|
|
(2,477)
|
|
$
(3,105)
|
|
(3,812)
|
|
$
(3,105)
|
Acquisition costs
|
|
-
|
|
(393)
|
|
-
|
|
(393)
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
One-time
restructuring actions
|
|
-
|
|
(192)
|
|
-
|
|
(192)
|
Change in
estimated future rent
|
|
-
|
|
(4,760)
|
|
-
|
|
(4,760)
|
Lease
buyout of previously closed facility
|
|
(1,186)
|
|
-
|
|
(1,824)
|
|
-
|
Interest
expense
|
|
|
|
|
|
|
|
|
Mark-to-market loss on derivative
financial instruments
|
|
(1,565)
|
|
(2,604)
|
|
(2,407)
|
|
(2,604)
|
Acceleration of the amortization of debt
issue costs and OID
|
|
(481)
|
|
(440)
|
|
(740)
|
|
(440)
|
Tax
expense
|
|
|
|
|
|
|
|
|
Release
of valuation allowances, net
|
|
553
|
|
131,095
|
|
553
|
|
131,095
|
Other
expense
|
|
|
|
|
|
|
|
|
European
divestiture expenses
|
|
(4,476)
|
|
-
|
|
(6,481)
|
|
-
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Income /
(loss) from discontinued operations
|
|
(17,008)
|
|
10,324
|
|
(17,008)
|
|
10,324
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Net
income attributable to noncontrolling interests*
|
|
(701)
|
|
(1,739)
|
|
(701)
|
|
(1,739)
|
Total items included
in net income, net of tax
|
|
$
(32,756)
|
|
$
119,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Tower International, Inc.
|
|
$
38,579
|
|
$
194,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,864
|
|
21,093
|
|
|
|
|
Diluted
|
|
21,222
|
|
21,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share (GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.85
|
|
$
9.20
|
|
|
|
|
Diluted
|
|
1.82
|
|
9.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)
|
|
$
3.36
|
|
$
3.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
attributable to noncontrolling interests of discontinued
operations
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tower-international-reports-fourth-quarter-results-better-than-outlook-and-outlines-anticipated-above-industry-growth-through-2019-300406946.html
SOURCE Tower International