VAN BUREN TOWNSHIP, Mich.,
Feb. 23, 2017 /PRNewswire/ --
- Solid 2016 financial performance – total Visteon
- Sales of $3,161 million
($816 million in fourth
quarter)
- Net income of $75 million,
including $49 million of
restructuring expense, $24 million of
other net expense and $40 million
loss from discontinued operations ($2
million net income in fourth quarter)
- Net cash generated from operating activities of
$120 million ($82 million in fourth quarter)
- Total cash and equivalents of $882
million; total debt of $382
million
- Record 2016 performance for Electronics Product
Group
- Sales of $3,107 million
($803 million in fourth
quarter)
- Adjusted EBITDA of $346
million ($98 million in fourth
quarter)
- Adjusted free cash flow of $167
million ($79 million in fourth
quarter)
- All-time-high order backlog of $16.5 billion
- Legacy business transactions largely completed
- Other operations sales total $54
million in 2016 – all legacy Climate operations exited by
year-end 2016
- Discontinued operations sales total $45 million in 2016 – all legacy interiors
operations sold by year-end 2016
- Earned record new business awards (lifetime revenue) of
$5.4 billion in 2016 – $1.1 billion more than 2015
- Announced new $400 million
share repurchase authorization
Visteon Corporation (NYSE: VC) today announced strong full-year
2016 results, reporting net income attributable to Visteon of
$75 million, or $2.12 per diluted share, including $49 million of restructuring expense,
$24 million of other net expense and
$40 million of net loss associated
with discontinued operations.
Full-year sales were $3,161
million, a decrease of $84
million compared with 2015, primarily attributable to the
sale of an interiors European facility in 2015. Net cash provided
from operating activities was $120
million for full year 2016.
In 2016, global vehicle manufacturers awarded Visteon new
business of $5.4 billion in lifetime
revenue. Fourth-quarter wins totaled $1.3
billion. The ongoing backlog, defined as cumulative
remaining life-of-program booked sales, was approximately
$16.5 billion as of Dec. 31, 2016, up from $14.9 billion in 2015, an increase of 11
percent.
"We finished the year very strong and delivered exceptional
financial results in 2016, a year in which we transformed Visteon
into a leading player in the cockpit electronics segment," said
Visteon President and CEO Sachin
Lawande. "We returned $2.2
billion in capital to investors during the year, while
making significant progress on our strategic priorities, including
winning $5.4 billion in new business
– primarily in China and
Western Europe – and executing a
record 59 product launches."
Lawande added: "As the shift toward the all-digital cockpit
gains momentum, we are very well-positioned to capitalize on
opportunities as the only pure-play automotive cockpit electronics
supplier. Our focus, strong balance sheet and broad product and
technology portfolio place us in a formidable position to deliver
industry-leading performance for our shareholders, customers and
employees. Our $16.5 billion business
backlog provides a solid foundation to execute our five-year plan
and grow sales to $4.7 billion by
2021."
Fourth Quarter in Review
Total Visteon
Sales for the fourth quarter of 2016 were $816 million, an increase of $7 million from $809
million for the same quarter a year earlier. Gross margin
was $129 million, compared with
$114 million for the same period in
2015. Selling, general and administrative (SG&A) expenses were
$57 million for the fourth quarter of
2016, compared with $63 million a
year earlier.
Net income attributable to Visteon was $2
million, or $0.06 per diluted
share in 2016. This included $27
million of restructuring, $8
million of other expense and $25
million of loss from discontinued operations.
Electronics
Sales totaled $803 million, an
increase of $28 million from the
fourth quarter of 2015. The year-over-year improvement was
primarily related to increased production volumes and new business.
On a regional basis, Asia
accounted for 41 percent of sales, Europe 31 percent, North America 27 percent and South America 1 percent.
Gross margin was $131 million,
compared with $118 million a year
earlier. Adjusted EBITDA, a non-GAAP measure as defined below, was
$98 million, compared with
$83 million in 2015. The improvement
in gross margin and adjusted EBITDA was driven by increased
production volumes, new business and favorable currency.
Other
Sales totaled $13 million, a
decrease of $17 million from the
fourth quarter of 2015. The decrease largely reflects the sale of
the German interiors facility in the fourth quarter of 2015. Gross
margin included a loss from legacy climate and interiors operations
of $2 million in 2016 and
$4 million in 2015.
All facilities included in Other operations and in discontinued
operations were either sold or closed by year-end. Visteon does not
expect to record sales or adjusted EBITDA related to these
operations in the future. The company projects that the majority of
remaining cash settlements related to its legacy agreements will
occur in the first half of 2017.
Cash and Debt Balances
As of Dec. 31, 2016, Visteon had
cash and equivalents of $882
million, including $4 million
of restricted cash. Total debt as of Dec.
31, 2016, was $382
million.
For the fourth quarter of 2016, Visteon generated $82 million of cash from operations, including
$24 million of climate-related
restructuring and other professional fees, compared with
$64 million in the same period a year
earlier. Capital expenditures in the quarter were $19 million, compared with $36 million in the fourth quarter of 2015. Cash
flows for both periods included results related to discontinued
operations.
Visteon generated $86 million of
cash from operations related to Electronics in the fourth quarter.
Electronics capital expenditures totaled $20
million, and adjusted free cash flow, a non-GAAP measure as
defined below, for Electronics totaled $79
million in the quarter.
Share Repurchase
During 2016, Visteon entered into accelerated stock buyback
programs with a third-party financial institution to purchase
shares of common stock for an aggregate purchase price of
$500 million. Under these programs,
Visteon purchased 7,190,506 shares at an average price of
$69.48. As of Dec. 31, 2016, the company had 33.2 million
diluted shares of common stock outstanding.
On Jan. 10, 2017, Visteon's board
of directors authorized $400 million
of share repurchase of its shares of common stock through
March 31, 2018.
Full-Year 2017 Outlook
Visteon projects Electronics Product Group 2017 sales of
$3.1 billion to $3.2 billion.
Adjusted EBITDA for the Electronics Product Group is projected in
the range of $355 million to $370
million. Adjusted free cash flow for the Electronics Product
Group is projected in the range of $165
million to $180 million.
About Visteon
Visteon is a global company that designs, engineers and
manufactures innovative cockpit electronics products and connected
car solutions for most of the world's major vehicle manufacturers.
Visteon is a leading provider of instrument clusters, head-up
displays, information displays, infotainment, audio systems,
telematics and SmartCore™ cockpit domain controllers. 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 19 countries. Visteon had sales of $3.16 billion in 2016. Learn more at
www.visteon.com.
Conference Call and Presentation
Today, Thursday, Feb. 23, 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:
970-297-2404
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, the financial
results news release, related presentation materials and other
supplemental information will be accessible through Visteon's
website at www.visteon.com.
A replay of the conference call will be available through the
company's website or by dialing 855-859-2056 (toll-free from the
U.S. and Canada) or 404-537-3406
(international). The conference ID for the phone replay is
66413145. The phone replay will be available for one week following
the conference call.
Forward-looking Information
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including, but not limited to: (1) conditions within
the automotive industry, including (i) the automotive vehicle
production volumes and schedules of our customers, (ii) the
financial condition of our customers and the effects of any
restructuring or reorganization plans that may be undertaken by our
customers or suppliers, including work stoppages, and (iii)
possible disruptions in the supply of commodities to us or our
customers due to financial distress, work stoppages, natural
disasters or civil unrest; (2) our ability to satisfy future
capital and liquidity requirements; including our ability to access
the credit and capital markets at the times and in the amounts
needed and on terms acceptable to us; our ability to comply with
financial and other covenants in our credit agreements; and the
continuation of acceptable supplier payment terms; (3) our ability
to satisfy pension and other post-employment benefit obligations;
(4) our ability to access funds generated by foreign subsidiaries
and joint ventures on a timely and cost-effective basis; (5) our
ability to execute on our transformational plans and cost-reduction
initiatives in the amounts and on the timing contemplated; (6)
general economic conditions, including changes in interest rates,
currency exchange rates and fuel prices; (7) the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations; (8) increases in raw material
and energy costs and our ability to offset or recover these costs,
increases in our warranty, product liability and recall costs or
the outcome of legal or regulatory proceedings to which we are or
may become a party; and (9) those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2016).
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 Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2016. New business wins and
rewins do not represent firm orders or firm commitments from
customers, but are based on various assumptions, including the
timing and duration of product launches, vehicle production levels,
customer price reductions and currency exchange rates.
Use of Non-GAAP Financial Information
This press release contains information about Visteon's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
comparable GAAP financial measures for 2017 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:
www.twitter.com/visteon
www.youtube.com/visteon
http://blog.visteon.com
www.google.com/+visteon
www.linkedin.com/company/visteon
https://www.facebook.com/VisteonCorporation
https://www.instagram.com/visteon
http://www.slideshare.net/VisteonCorporation
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited,
Dollars in Millions, Except Per Share Data)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Sales
|
$
|
816
|
|
$
|
809
|
|
$
|
3,161
|
|
$
|
3,245
|
Cost of
sales
|
687
|
|
695
|
|
2,697
|
|
2,815
|
Gross
margin
|
129
|
|
114
|
|
464
|
|
430
|
Selling, general and
administrative expenses
|
57
|
|
63
|
|
220
|
|
245
|
Restructuring
expense
|
27
|
|
18
|
|
49
|
|
36
|
Interest expense,
net
|
2
|
|
1
|
|
12
|
|
14
|
Equity in net (loss)
income of non-consolidated affiliates
|
(1)
|
|
(1)
|
|
2
|
|
7
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
5
|
Loss on
divestiture
|
—
|
|
105
|
|
—
|
|
105
|
(Loss) gain on
non-consolidated affiliate transactions
|
(1)
|
|
—
|
|
—
|
|
62
|
Other expense,
net
|
7
|
|
10
|
|
24
|
|
25
|
Income (loss) from
continuing operations before income taxes
|
34
|
|
(84)
|
|
161
|
|
69
|
Provision (benefit
from) for income taxes
|
3
|
|
(16)
|
|
30
|
|
27
|
Net income (loss)
from continuing operations
|
31
|
|
(68)
|
|
131
|
|
42
|
Net (loss) income
from discontinued operations, net of tax
|
(25)
|
|
92
|
|
(40)
|
|
2,286
|
Net income
(loss)
|
6
|
|
24
|
|
91
|
|
2,328
|
Net income
attributable to non-controlling interests
|
4
|
|
3
|
|
16
|
|
44
|
Net income
attributable to Visteon Corporation
|
$
|
2
|
|
$
|
21
|
|
$
|
75
|
|
$
|
2,284
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share data:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.82
|
|
$
|
(1.75)
|
|
$
|
3.28
|
|
$
|
0.52
|
Discontinued operations
|
(0.76)
|
|
2.27
|
|
(1.14)
|
|
53.48
|
Basic earnings per
share attributable to Visteon Corporation
|
$
|
0.06
|
|
$
|
0.52
|
|
$
|
2.14
|
|
$
|
54.00
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.81
|
|
$
|
(1.75)
|
|
$
|
3.25
|
|
$
|
0.51
|
Discontinued operations
|
(0.75)
|
|
2.27
|
|
(1.13)
|
|
52.12
|
Diluted earnings per
share attributable to Visteon Corporation
|
$
|
0.06
|
|
$
|
0.52
|
|
$
|
2.12
|
|
$
|
52.63
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
33.1
|
|
40.6
|
|
35.0
|
|
42.3
|
Diluted
|
33.5
|
|
40.6
|
|
35.4
|
|
43.4
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss):
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
$
|
(65)
|
|
$
|
119
|
|
$
|
41
|
|
$
|
2,424
|
Comprehensive (loss)
income attributable to Visteon Corporation
|
$
|
(64)
|
|
$
|
116
|
|
$
|
32
|
|
$
|
2,393
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Unaudited,
Dollars in Millions)
|
|
|
|
|
|
December
31
|
|
December
31
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
878
|
|
$
|
2,728
|
Short-term
investments
|
—
|
|
47
|
Restricted
cash
|
4
|
|
8
|
Accounts receivable,
net
|
505
|
|
502
|
Inventories,
net
|
151
|
|
187
|
Other current
assets
|
170
|
|
581
|
Total current
assets
|
1,708
|
|
4,053
|
|
|
|
|
Property and
equipment, net
|
345
|
|
351
|
Intangible assets,
net
|
129
|
|
133
|
Investments in
non-consolidated affiliates
|
45
|
|
56
|
Other non-current
assets
|
146
|
|
88
|
Total
assets
|
$
|
2,373
|
|
$
|
4,681
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Distribution
payable
|
$
|
15
|
|
$
|
1,751
|
Short-term debt,
including current portion of long-term debt
|
36
|
|
37
|
Accounts
payable
|
463
|
|
482
|
Accrued employee
liabilities
|
103
|
|
132
|
Other current
liabilities
|
294
|
|
370
|
Total current
liabilities
|
911
|
|
2,772
|
|
|
|
|
Long-term
debt
|
346
|
|
346
|
Employee
benefits
|
303
|
|
268
|
Deferred tax
liabilities
|
20
|
|
21
|
Other non-current
liabilities
|
69
|
|
75
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
1
|
|
1
|
Additional paid-in
capital
|
1,327
|
|
1,345
|
Retained
earnings
|
1,269
|
|
1,194
|
Accumulated other
comprehensive loss
|
(233
|
|
(190)
|
Treasury
stock
|
(1,778)
|
|
(1,293)
|
Total Visteon
Corporation stockholders' equity
|
586
|
|
1,057
|
Non-controlling
interests
|
138
|
|
142
|
Total
equity
|
724
|
|
1,199
|
Total liabilities and
equity
|
$
|
2,373
|
|
$
|
4,681
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
(Unaudited,
Dollars in Millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
6
|
|
$
|
24
|
|
$
|
91
|
|
$
|
2,328
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
Loss (gain) on
Climate Transaction
|
—
|
|
8
|
|
2
|
|
(2,324)
|
Gain on
non-consolidated affiliate transactions
|
1
|
|
—
|
|
—
|
|
(62)
|
Depreciation and
amortization
|
22
|
|
22
|
|
84
|
|
169
|
Losses on
divestitures and impairments
|
18
|
|
104
|
|
22
|
|
121
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
1
|
|
1
|
|
(1)
|
|
1
|
Non-cash stock-based
compensation
|
2
|
|
1
|
|
8
|
|
8
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
5
|
Other non-cash
items
|
9
|
|
2
|
|
24
|
|
6
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(34)
|
|
8
|
|
(19)
|
|
1
|
Inventories
|
15
|
|
9
|
|
30
|
|
(20)
|
Accounts
payable
|
35
|
|
(15)
|
|
(10)
|
|
33
|
Accrued income
taxes
|
(24)
|
|
(129)
|
|
(63)
|
|
6
|
Other assets and
other liabilities
|
31
|
|
29
|
|
(48)
|
|
66
|
Net cash provided
from operating activities
|
82
|
|
64
|
|
120
|
|
338
|
INVESTING
|
|
|
|
|
|
|
|
Capital
expenditures
|
(19)
|
|
(36)
|
|
(75)
|
|
(187)
|
Short-term
investments, net
|
—
|
|
5
|
|
47
|
|
(47)
|
Loans to
non-consolidated affiliate, net of repayments
|
—
|
|
—
|
|
(8)
|
|
(9)
|
Net proceeds from
Climate transaction
|
—
|
|
—
|
|
356
|
|
2,664
|
Proceeds from asset
sales and business divestitures
|
2
|
|
—
|
|
17
|
|
92
|
Acquisition of
business, net of cash acquired
|
—
|
|
(4)
|
|
(15)
|
|
(4)
|
Payments on
divestiture of businesses
|
(10)
|
|
(138)
|
|
(10)
|
|
(157)
|
Other
|
(10)
|
|
—
|
|
(10)
|
|
6
|
Net cash (used by)
provided from investing activities
|
(37)
|
|
(173)
|
|
302
|
|
2,358
|
FINANCING
|
|
|
|
|
|
|
|
Short-term debt,
net
|
11
|
|
3
|
|
—
|
|
2
|
Principal payments on
debt
|
—
|
|
—
|
|
(2)
|
|
(250)
|
Distribution
payments
|
—
|
|
—
|
|
(1,736)
|
|
—
|
Repurchase of common
stock
|
—
|
|
—
|
|
(500)
|
|
(500)
|
Dividends paid to
non-controlling interests
|
(13)
|
|
(24)
|
|
(13)
|
|
(55)
|
Exercised warrants
and stock options
|
—
|
|
16
|
|
—
|
|
40
|
Stock based
compensation tax withholding payments
|
—
|
|
(10)
|
|
(11)
|
|
(10)
|
Other
|
—
|
|
—
|
|
—
|
|
(1)
|
Net cash used by
financing activities
|
(2)
|
|
(15)
|
|
(2,262)
|
|
(774)
|
Effect of exchange
rate changes on cash and equivalents
|
(17)
|
|
(7)
|
|
(11)
|
|
(20)
|
Net (decrease)
increase in cash and equivalents
|
26
|
|
(131)
|
|
(1,851)
|
|
1,902
|
Cash and equivalents
at beginning of period
|
852
|
|
2,860
|
|
2,729
|
|
827
|
Cash and equivalents
at end of period
|
$
|
878
|
|
$
|
2,729
|
|
$
|
878
|
|
$
|
2,729
|
|
1
The Company has
combined cash flows from discontinued operations with cash flows
from continuing operations within the operating, investing and
financing categories. As such, cash and equivalents above
include amounts reflected in current assets held for sale on the
Consolidated Balance Sheets.
|
VISTEON CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited, Dollars in Millions)
Adjusted EBITDA: Adjusted EBITDA is presented as a
supplemental measure of the Company's performance that management
believes is useful to investors because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful
in evaluating and comparing the Company's operating activities
across reporting periods. The Company defines Adjusted EBITDA as
net income attributable to the Company adjusted to eliminate the
impact of depreciation and amortization, restructuring
expense, net interest expense, loss on debt extinguishment, equity
in net loss (income) of non-consolidated affiliates, loss on
divestiture, gain on non-consolidated affiliate transactions, other
net expense, provision for (benefit from) income taxes,
discontinued operations, net income attributable to non-controlling
interests, non-cash stock-based compensation expense, and other
non-operating gains and losses. Because not all companies use
identical calculations, this presentation of Adjusted EBITDA may
not be comparable to similarly titled measures of other
companies.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
Estimated
|
|
December
31
|
|
December
31
|
|
Full
Year
|
Total
Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2017
|
Electronics
|
$
|
98
|
|
$
|
83
|
|
$
|
346
|
|
$
|
294
|
|
|
Other
|
(2)
|
|
(4)
|
|
(9)
|
|
(12)
|
|
|
Adjusted
EBITDA
|
96
|
|
79
|
|
337
|
|
282
|
|
$355 -
$370
|
Depreciation and
amortization
|
22
|
|
23
|
|
84
|
|
85
|
|
85
|
Restructuring
expense
|
27
|
|
18
|
|
49
|
|
36
|
|
10
|
Interest expense,
net
|
2
|
|
1
|
|
12
|
|
14
|
|
15
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
5
|
|
—
|
Equity in net loss
(income) of non-consolidated affiliates
|
1
|
|
1
|
|
(2)
|
|
(7)
|
|
(5)
|
Loss on
divestiture
|
—
|
|
105
|
|
—
|
|
105
|
|
—
|
Loss (gain) on
non-consolidated affiliate transactions
|
1
|
|
—
|
|
—
|
|
(62)
|
|
—
|
Other expense,
net
|
7
|
|
10
|
|
24
|
|
25
|
|
5
|
Provision for
(benefit from) income taxes
|
3
|
|
(16)
|
|
30
|
|
27
|
|
60
|
Net loss (income)
from discontinued operations, net of
tax
|
25
|
|
(92)
|
|
40
|
|
(2,286)
|
|
—
|
Net income
attributable to non-controlling interests
|
4
|
|
3
|
|
16
|
|
44
|
|
20
|
Non-cash, stock-based
compensation expense
|
2
|
|
1
|
|
8
|
|
8
|
|
10
|
Other
|
—
|
|
4
|
|
1
|
|
4
|
|
—
|
Net income
attributable to Visteon
|
$
|
2
|
|
$
|
21
|
|
$
|
75
|
|
$
|
2,284
|
|
$155 -
$170
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
Electronics and
corporate
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Adjusted
EBITDA
|
$
|
98
|
|
$
|
83
|
|
$
|
346
|
|
$
|
294
|
Depreciation and
amortization
|
22
|
|
22
|
|
84
|
|
83
|
Restructuring
expense
|
26
|
|
18
|
|
37
|
|
36
|
Interest expense,
net
|
2
|
|
1
|
|
12
|
|
14
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
5
|
Equity in net loss
(income) of non-consolidated affiliates
|
1
|
|
1
|
|
(2)
|
|
5
|
Loss (gain) on
non-consolidated affiliates
|
1
|
|
—
|
|
—
|
|
—
|
Other expense,
net
|
7
|
|
6
|
|
10
|
|
35
|
Provision for income
taxes
|
14
|
|
2
|
|
41
|
|
45
|
Net income
attributable to non-controlling interests
|
3
|
|
3
|
|
16
|
|
20
|
Non-cash, stock-based
compensation expense
|
2
|
|
5
|
|
9
|
|
15
|
Other
|
—
|
|
—
|
|
—
|
|
(3)
|
Net income
|
$
|
20
|
|
$
|
25
|
|
$
|
139
|
|
$
|
39
|
Loss (income) from
discontinued operations, net of tax
|
25
|
|
(92)
|
|
40
|
|
(2,286)
|
All other loss
(income), net of tax
|
(7)
|
|
96
|
|
24
|
|
41
|
Net income
attributable to Visteon
|
$
|
2
|
|
$
|
21
|
|
$
|
75
|
|
$
|
2,284
|
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
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
Total
Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash provided from
operating activities - Electronics and corporate
|
$
|
86
|
|
$
|
89
|
|
$
|
198
|
|
$
|
251
|
Cash (used by)
provided from operating activities - discontinued operations and
other
|
(4)
|
|
(25)
|
|
(78)
|
|
87
|
Cash provided from
operating activities total Visteon
|
$
|
82
|
|
$
|
64
|
|
$
|
120
|
|
$
|
338
|
Capital
expenditures
|
(19)
|
|
(36)
|
|
(75)
|
|
(187)
|
Free cash
flow
|
$
|
63
|
|
$
|
28
|
|
$
|
45
|
|
$
|
151
|
Restructuring/transformation-related
payments
|
19
|
|
34
|
|
113
|
|
160
|
Adjusted free cash
flow
|
$
|
82
|
|
$
|
62
|
|
$
|
158
|
|
$
|
311
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31
|
|
December
31
|
|
Estimated
|
Electronics and
corporate
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Full Year 2017
*
|
Cash provided from
operating activities
|
$
|
86
|
|
$
|
89
|
|
$
|
198
|
|
$
|
251
|
|
$175 -
$190
|
Capital
expenditures
|
(20)
|
|
(39)
|
|
(74)
|
|
(102)
|
|
80
|
Free cash
flow
|
$
|
66
|
|
$
|
50
|
|
$
|
124
|
|
$
|
149
|
|
$95 - $110
|
Restructuring/transformation-related
payments
|
13
|
|
16
|
|
43
|
|
63
|
|
70
|
Adjusted free cash
flow
|
$
|
79
|
|
$
|
66
|
|
$
|
167
|
|
$
|
212
|
|
$165 -
$180
|
* Guidance excludes the other product group and discontinued
operations.
Free cash flow and Adjusted free cash flow are not recognized
terms under U.S. GAAP and do not purport to be a substitute for
cash flows from operating activities as a measure of liquidity.
Free cash flow and Adjusted free cash flow have limitations as
analytical tools as they do not reflect cash used to service debt
and do not reflect funds available for investment or other
discretionary uses. In addition, the Company uses Free cash flow
and Adjusted free cash flow (i) as factors in incentive
compensation decisions and (ii) for planning and forecasting future
periods.
Adjusted Net Income and Adjusted Earnings Per Share:
Adjusted net income and Adjusted earnings per share are presented
as supplemental measures that management believes are useful to
investors in analyzing the Company's profitability, 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 debt extinguishment, loss on divestiture, gain on
non-consolidated affiliate transactions, other net expenses, other
non-operating gains and losses, discontinued 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
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Diluted earnings
per share:
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
2
|
|
$
|
21
|
|
$
|
75
|
|
$
|
2,284
|
Average shares outstanding, diluted (in millions)
|
33.5
|
|
40.6
|
|
35.4
|
|
43.4
|
Diluted earnings per
share
|
$
|
0.06
|
|
$
|
0.52
|
|
$
|
2.12
|
|
$
|
52.63
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
2
|
|
$
|
21
|
|
$
|
75
|
|
$
|
2,284
|
Restructuring
expense
|
27
|
|
18
|
|
49
|
|
36
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
5
|
Loss on
divestiture
|
—
|
|
105
|
|
—
|
|
105
|
(Loss) gain on
non-consolidated affiliate transactions
|
(1)
|
|
—
|
|
—
|
|
62
|
Other expense,
net
|
7
|
|
10
|
|
24
|
|
25
|
Other
|
—
|
|
(14)
|
|
1
|
|
15
|
Tax effect of
adjustments
|
(1)
|
|
—
|
|
(1)
|
|
—
|
(Loss) income from
discontinued operations, net of tax
|
(25)
|
|
92
|
|
(40)
|
|
2,286
|
Adjusted net
income
|
$
|
61
|
|
$
|
48
|
|
$
|
188
|
|
$
|
122
|
Average shares outstanding, diluted (in millions)
|
33.5
|
|
40.6
|
|
35.4
|
|
43.4
|
Adjusted earnings per
share
|
$
|
1.82
|
|
$
|
1.18
|
|
$
|
5.31
|
|
$
|
2.81
|
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/visteon-reports-strong-2016-financial-results-driven-by-record-performance-300412138.html
SOURCE Visteon Corporation