NORTHVILLE, Mich., July 27, 2017 /PRNewswire/ -- Gentherm
(NASDAQ-GS:THRM), the global market leader and developer of
innovative thermal management technologies, today announced its
financial results for the second quarter ended June 30,
2017.
Second Quarter 2017 Highlights
- Quarterly revenue totaling $243.4
million represents growth of 5%
- Net income of $8.5 million and
adjusted EBITDA of $35.1 million
- Diluted Earnings Per Share of $0.23 for the quarter, or $0.53 after adjusting for the unrealized currency
loss and other impacts
- Euro strength results in significant unrealized foreign
currency loss of $12.0 million
- Automotive revenue grew by nearly 2% despite an automotive
production headwind of nearly 3% in both Europe and North
America
- Gentherm Global Power Technologies (GPT) revenues continue to
show recovery and increased by 83% from the prior year quarter
- CSZ continued to grow reporting $20.1
million in revenue, a 20% increase from prior year second
quarter
"The second quarter saw revenues for our automotive products
grow by nearly 2%. This growth came despite the automotive
industry, our most important end market, experiencing significant
weakness. Global automotive production volumes declined by
nearly 0.30% in the second quarter and, more importantly,
production in North America and
Europe were down by more than 3%
on a combined basis," said President and CEO Daniel R. Coker. "This illustrates the
strength in our underlying products but still does not reflect the
coming benefits from some of our exciting new products including
our advanced battery thermal management product, which will begin
shipping later this year, and our innovative electronic controlling
devices which are expected in early 2019," Coker added.
Coker continued, "Our corporate goal to add non-automotive
markets to our product offerings has helped offset the uncertainty
in the automotive industry. Both GPT and CSZ had impressive
results for the quarter increasing revenue by 83% and 20%,
respectively, helping to supplement the overall outlook for
Gentherm."
Second Quarter 2017 Financial Review
Our product
revenue grew $10.7 million, or
5%. The increase came almost equally from each of our
Automotive, GPT and CSZ product groups which had higher product
revenues totaling $4.0 million,
$3.4 million and $3.3 million, respectively. Revenue growth
for the automotive group, which was the slowest representing a 2%
increase, was unfavorably impacted by a declining industry
production rate especially in North America. This lower
production volume impacted revenue of CCS disproportionately.
CCS revenue also experienced a decrease associated with certain
vehicles that changed from the higher priced active cooling
solution to the lower priced heated and ventilated version.
Strong growth in the other automotive products combined to help
offset the lower revenue in CCS.
Higher revenue at CSZ included improvements in both medical
products and environmental climate chambers; however, the strong
first quarter growth attributable to the blood heater cooler, or
Hemotherm, was replaced by increased shipments in environmental
climate chambers.
The revenue growth at GPT reflects increased market activity,
especially from gas pipeline projects that had been deferred during
2016. While the energy markets that GPT serves continue to be
challenging, our revenue performance is expected to generally trend
upward due to previously delayed projects now being
completed. Of course, our customers in this sector are still
cautious and project timing fluctuations are expected.
The gross margin percentage during the 2017 second quarter was
32.2% compared to 30.7% during the 2016 second quarter, or 32.4%
after adjusting for the one-time purchase accounting impact of CSZ
incurred during the second quarter of 2016, the period during which
it was acquired. This slight decrease was due to a lower
gross margin for CSZ during the current period partially offset by
higher product revenues from the higher gross margin GPT
business. Lower CSZ gross margin was attributable to a higher
mix of revenue favoring lower margin test chamber equipment
projects.
Operating expenses of $53.2
million increased $4.0
million, or 8%, compared to the year ago period. The
increase over the prior year included higher stock based management
incentive compensation, continued investments in new products and
technologies and enhancements to our operating infrastructure.
Net research and development expenses (R&D) of $21.4 million increased by $2.3 million, or 12%, during the second quarter
of 2017, compared with 2016, as the activities associated with new
product development increase. These activities include the
advanced battery thermal management device, which is set to launch
later this year, and an innovative electronic controlling device
which is scheduled to begin production in early 2019. Other
focus areas for our advanced engineering teams include automotive
interior thermal management devices, medical thermal management
devices and battery management systems.
Selling, general and administrative expenses (SG&A) of
$31.8 million increased by
$2.4 million, or 8%, during the
second quarter of 2017, compared with 2016. The increase in
SG&A resulted from higher equity based management incentive
compensation, a portion of which is adjusted based on the trading
price of our common stock. Gentherm Common Stock appreciated
during the second quarter of 2017 but decreased during the second
quarter of 2016 resulting in an increase in compensation expense
totaling $2.6
million.
During the 2017 second quarter we incurred a net foreign
currency loss of $13.2 million which
included a net realized loss of $1.2
million and a net unrealized loss of $12.0 million. The unrealized loss was
primarily the result of holding significant amounts of U.S. Dollar
("USD") cash at our subsidiaries in Europe and due to certain intercompany
relationships between these European subsidiaries and our U.S.
based companies.
Adjusted EBITDA increased for the quarter to $35.1 million compared with Adjusted EBITDA of
$31.5 million for the first quarter
of 2016, an increase of 11%. A reconciliation of Adjusted
EBITDA, a non-GAAP measure, to net income is provided in a table
accompanying this news release.
Our fully diluted earnings per share were $0.23 and $0.50 for
the second quarter 2017 and 2016, respectively. As outlined
in the accompanying table, these amounts included certain purchase
accounting impacts from acquisitions, the unrealized currency loss
in 2017 and an unrealized currency gain in 2016. After
adjusting for these impacts and effects, our fully diluted earnings
per share would have been $0.53 and
$0.57 in 2017 and 2016,
respectively.
Total cash as of June 30, 2017 was
$164.2 million as compared with total
cash of $177.2 million at
December 31, 2016. This
decrease was primarily related to a $32.6
million tax payment associated with the first quarter 2016
reorganization of our North American operations. This amount
was offset by favorable operating cash flow during the second
quarter totaling $27.5 million.
The cash combined with borrowing availability under the Company's
credit agreements, provides available liquidity totaling
$367.6 million as of June 30, 2017.
Guidance
We expect that our full year 2017 revenue
growth is likely to be at the lower end of our previously stated
range of between 5% and 10%. Our guidance reflects
year-to-date actual results including the extra quarter of CSZ
revenue and an expected softer automotive production level for the
remainder of 2017.
Conference Call
As previously announced, Gentherm is
conducting a conference call today to be webcast at 8:00 a.m. Eastern Time to review these financial
results. The dial-in number for the call is 1-877-407-4018
or, for international callers, 1-201-689-8471. The live
webcast and archived replay of the call can be accessed on the
Events page of the Investor section of Gentherm's website at
www.gentherm.com.
A telephonic replay will be available at approximately
11:00 a.m. ET and will be accessible
for two weeks. The replay can be accessed by dialing
1-844-512-2921, or for international callers, 1-412-317-6671. The
passcode for the live call and the replay is 13667294.
Investor Relations Contact
investors@gentherm.com
248-308-1702
About Gentherm
Gentherm (NASDAQ-GS: THRM) is a
global developer and marketer of innovative thermal management
technologies for a broad range of heating and cooling and
temperature control applications. Automotive products include
variable temperature Climate Control Seats, TrueTherm® cupholder
and storage bins, heated automotive interior systems (including
heated seats, steering wheels, armrests and other components),
battery thermal management systems, cable systems and other
electronic devices. Non-automotive products include remote power
generation systems, heated and cooled furniture, patient
temperature management systems, industrial environmental test
chambers and related product testing services and other consumer
and industrial temperature control applications. The Company is
also developing a number of new technologies and products that will
help enable improvements to existing products and to create new
product applications for existing and new markets. Gentherm has
over twelve thousand employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, Macedonia, Malta, Mexico, United
Kingdom, Ukraine, and
Vietnam. For more information, go to www.gentherm.com.
Except for historical information contained herein, statements
in this release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
represent Gentherm Incorporated's goals, beliefs, plans and
expectations about its prospects for the future and other future
events. The forward-looking statements included in this press
release are made as of the date hereof or as of the date specified
and are based on management's current expectations and
beliefs. Such statements are subject to a number of important
assumptions, risks, uncertainties and other factors that may cause
the Company's actual performance to differ materially from that
described in or indicated by the forward looking statements. Those
risks include, but are not limited to, risks that new products may
not be feasible, sales may not increase, additional financing
requirements may not be available, new competitors may arise,
currency exchange rates may change, and adverse conditions in the
industry in which the Company operates may negatively affect its
results. The foregoing risks should be read in conjunction with
other cautionary statements included herein, as well as in the
Company's annual report on Form 10-K for the year ended
December 31, 2016 and subsequent
reports filed with the Securities and Exchange Commission. Except
as required by law, the Company expressly disclaims any obligation
or undertaking to update any forward-looking statements to reflect
any change in its expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
TABLES FOLLOW
GENTHERM
INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Product
revenues
|
$
|
243,378
|
|
$
|
232,720
|
|
$
|
492,645
|
|
$
|
448,434
|
Cost of
sales
|
|
164,973
|
|
|
161,225
|
|
|
329,080
|
|
|
308,697
|
Gross
margin
|
|
78,405
|
|
|
71,495
|
|
|
163,565
|
|
|
139,737
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Net research and
development expenses
|
|
21,407
|
|
|
19,111
|
|
|
40,912
|
|
|
34,807
|
Acquisition
transaction expenses
|
|
—
|
|
|
634
|
|
|
—
|
|
|
671
|
Selling, general and
administrative expenses
|
|
31,775
|
|
|
29,397
|
|
|
62,581
|
|
|
52,021
|
Total operating
expenses
|
|
53,182
|
|
|
49,142
|
|
|
103,493
|
|
|
87,499
|
Operating
income
|
|
25,223
|
|
|
22,353
|
|
|
60,072
|
|
|
52,238
|
Interest
expense
|
|
(1,261)
|
|
|
(950)
|
|
|
(2,383)
|
|
|
(1,627)
|
Foreign currency
(loss) gain
|
|
(13,251)
|
|
|
2,796
|
|
|
(14,580)
|
|
|
961
|
Other
income
|
|
173
|
|
|
30
|
|
|
409
|
|
|
395
|
Earnings before
income tax
|
|
10,884
|
|
|
24,229
|
|
|
43,518
|
|
|
51,967
|
Income tax
expense
|
|
2,371
|
|
|
5,783
|
|
|
9,603
|
|
|
21,628
|
Net income
|
$
|
8,513
|
|
$
|
18,446
|
|
$
|
33,915
|
|
$
|
30,339
|
Basic earnings per
share
|
$
|
0.23
|
|
$
|
0.51
|
|
$
|
0.92
|
|
$
|
0.83
|
Diluted earnings per
share
|
$
|
0.23
|
|
$
|
0.50
|
|
$
|
0.92
|
|
$
|
0.83
|
Weighted average
number of shares – basic
|
|
36,777
|
|
|
36,442
|
|
|
36,699
|
|
|
36,400
|
Weighted average
number of shares – diluted
|
|
36,840
|
|
|
36,637
|
|
|
36,796
|
|
|
36,572
|
GENTHERM
INCORPORATED
REVENUE BY PRODUCT CATEGORY
(Unaudited, in thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
2017
|
|
2016
|
|
%
Diff
|
|
2017
|
|
2016(1)
|
|
%
Diff
|
Climate Controlled
Seat (CCS)
|
$
|
98,816
|
|
$
|
102,317
|
|
-3.4%
|
|
$
|
200,861
|
|
$
|
203,792
|
|
-1.4%
|
Seat
Heaters
|
|
73,804
|
|
|
72,275
|
|
2.1%
|
|
|
151,449
|
|
|
142,866
|
|
6.0%
|
Steering Wheel
Heaters
|
|
14,501
|
|
|
12,555
|
|
15.5%
|
|
|
29,544
|
|
|
24,112
|
|
22.5%
|
Automotive
Cables
|
|
21,955
|
|
|
21,197
|
|
3.6%
|
|
|
43,684
|
|
|
42,766
|
|
2.1%
|
Battery Thermal
Management (BTM) (2)
|
|
2,683
|
|
|
1,732
|
|
54.9%
|
|
|
4,427
|
|
|
3,281
|
|
34.9%
|
Other
Automotive
|
|
4,053
|
|
|
1,757
|
|
130.7%
|
|
|
7,680
|
|
|
5,450
|
|
40.9%
|
Subtotal
Automotive
|
$
|
215,812
|
|
$
|
211,833
|
|
1.9%
|
|
$
|
437,645
|
|
$
|
422,267
|
|
3.6%
|
Remote Power
Generation (GPT)
|
|
7,501
|
|
|
4,102
|
|
82.9%
|
|
|
14,913
|
|
|
9,382
|
|
59.0%
|
Cincinnati Sub-Zero
Products (CSZ)
|
|
20,065
|
|
|
16,785
|
|
19.5%
|
|
|
40,087
|
|
|
16,785
|
|
138.8%
|
Total
Company
|
$
|
243,378
|
|
$
|
232,720
|
|
4.6%
|
|
$
|
492,645
|
|
$
|
448,434
|
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
During First Quarter
2017 we revised our revenue by product analysis to better reflect
pricing adjustments and other differences. We have revised prior
year revenue by product amounts to reflect this change.
|
(2)
|
Battery Thermal
Management or BTM product revenues currently includes Gentherm's
automotive grate, low cost, heat resistant fans and blowers used by
customers for battery cooling through ventilation. The advanced TED
based active cool system are scheduled to begin serial production
during the 2017 fourth quarter.
|
GENTHERM
INCORPORATED
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Unaudited, in thousands)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net Income
|
$
|
8,513
|
|
$
|
18,446
|
|
$
|
33,915
|
|
$
|
30,339
|
Add Back:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
2,371
|
|
|
5,783
|
|
|
9,603
|
|
|
21,628
|
Interest expense
|
|
1,261
|
|
|
950
|
|
|
2,383
|
|
|
1,627
|
Depreciation and
amortization
|
|
10,927
|
|
|
9,336
|
|
|
21,048
|
|
|
17,470
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition transaction
expense
|
|
—
|
|
|
634
|
|
|
—
|
|
|
671
|
Unrealized currency loss
(gain)
|
|
12,041
|
|
|
(3,602)
|
|
|
13,386
|
|
|
165
|
Adjusted
EBITDA
|
$
|
35,113
|
|
$
|
31,547
|
|
$
|
80,335
|
|
$
|
71,900
|
Use of Non-GAAP Financial Measures
In evaluating its
business, Gentherm considers and uses Adjusted EBITDA as a
supplemental measure of its operating performance. The
Company defines Adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization, deferred financing cost
amortization, transaction expenses, debt retirement expenses,
unrealized currency gain or loss and unrealized revaluation of
derivatives. Management believes that Adjusted EBITDA is a
meaningful measure of liquidity and the Company's ability to
service debt because it provides a measure of cash available for
such purposes. Management provides an Adjusted EBITDA measure so
that investors will have the same financial information that
management uses with the belief that it will assist investors in
properly assessing the Company's performance on a
period-over-period basis.
The term Adjusted EBITDA is not defined under GAAP, and is not a
measure of operating income, operating performance or liquidity
presented in accordance with GAAP. Adjusted EBITDA has
limitations as an analytical tool, and when assessing the Company's
operating performance, investors should not consider Adjusted
EBITDA in isolation, or as a substitute for net income or other
consolidated income statement data prepared in accordance with
GAAP. Gentherm compensates for these limitations by relying
primarily on its GAAP results and using Adjusted EBITDA only
supplementally.
GENTHERM
INCORPORATED
ACQUISITION TRANSACTION EXPENSES, PURCHASE ACCOUNTING
IMPACTS
AND OTHER EFFECTS
(Unaudited and in thousands, except per share
data)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
Future Full
Year Periods (estimated)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
Transaction
related current expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
transaction expenses
|
$
|
—
|
|
$
|
634
|
|
$
|
—
|
|
$
|
671
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
Non-cash
purchase accounting impacts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
relationships amortization
|
|
1,938
|
|
|
1,986
|
|
|
3,826
|
|
|
3,731
|
|
|
8,018
|
|
|
8,018
|
|
|
5,913
|
|
|
4,651
|
|
|
16,541
|
Technology
amortization
|
|
886
|
|
|
900
|
|
|
1,570
|
|
|
1,650
|
|
|
2,747
|
|
|
1,306
|
|
|
759
|
|
|
759
|
|
|
1,507
|
Product development
costs amortization
|
|
―
|
|
|
43
|
|
|
―
|
|
|
42
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
Trade name
amortization
|
|
43
|
|
|
44
|
|
|
86
|
|
|
86
|
|
|
132
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
Inventory fair value
adjustment
|
|
―
|
|
|
3,973
|
|
|
―
|
|
|
3,973
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
Other
effects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
loss (gain)
|
|
12,037
|
|
|
(3,602)
|
|
|
13,383
|
|
|
165
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
Total acquisition
transaction expenses,
purchase
accounting impacts and
other
effects
|
$
|
14,904
|
|
$
|
3,978
|
|
$
|
18,865
|
|
$
|
10,318
|
|
$
|
10,897
|
|
$
|
9,324
|
|
$
|
6,672
|
|
$
|
5,410
|
|
$
|
18,048
|
Tax effect of
above
|
|
(3,944)
|
|
|
(1,470)
|
|
|
(4,959)
|
|
|
(3,086)
|
|
|
(2,716)
|
|
|
(2,349)
|
|
|
(1,735)
|
|
|
(1,442)
|
|
|
(5,423)
|
North America
reorganization
withholding tax (1)
|
|
―
|
|
|
―
|
|
|
―
|
|
|
9,600
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
|
|
―
|
Net income
effect
|
$
|
10,960
|
|
$
|
2,508
|
|
$
|
13,906
|
|
$
|
16,832
|
|
$
|
8,181
|
|
$
|
6,975
|
|
$
|
4,937
|
|
$
|
3,968
|
|
$
|
12,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
difference
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
|
$
|
0.07
|
|
$
|
0.38
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.30
|
|
$
|
0.07
|
|
$
|
0.38
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
During the first
quarter of 2016, we completed a legal reorganization in North
American by shifting certain operations located in Canada to other
subsidiaries. Related to the reorganization we declared
intercompany dividends and incurred $9.6 million in withholding
taxes payable to the Canadian Revenue Agency.
|
GENTHERM
INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
164,177
|
|
$
|
177,187
|
Accounts receivable,
less allowance of $1,424 and $1,391, respectively
|
|
181,273
|
|
|
170,084
|
Inventory:
|
|
|
|
|
|
Raw
materials
|
|
58,364
|
|
|
60,525
|
Work in
process
|
|
15,704
|
|
|
13,261
|
Finished
goods
|
|
32,500
|
|
|
31,288
|
Inventory,
net
|
|
106,568
|
|
|
105,074
|
Derivative financial
instruments
|
|
2,545
|
|
|
18
|
Prepaid expenses and
other assets
|
|
39,939
|
|
|
32,000
|
Total current
assets
|
|
494,502
|
|
|
484,363
|
Property and
equipment, net
|
|
187,391
|
|
|
172,052
|
Goodwill
|
|
53,497
|
|
|
51,735
|
Other intangible
assets, net
|
|
54,356
|
|
|
57,557
|
Deferred financing
costs
|
|
1,079
|
|
|
1,221
|
Deferred income tax
assets
|
|
37,805
|
|
|
35,299
|
Other non-current
assets
|
|
37,867
|
|
|
40,803
|
Total
assets
|
$
|
866,497
|
|
$
|
843,030
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
83,719
|
|
$
|
84,511
|
Accrued
liabilities
|
|
65,946
|
|
|
105,625
|
Current maturities of
long-term debt
|
|
3,414
|
|
|
2,092
|
Derivative financial
instruments
|
|
—
|
|
|
1,395
|
Total current
liabilities
|
|
153,079
|
|
|
193,623
|
Pension benefit
obligation
|
|
7,937
|
|
|
7,419
|
Other
liabilities
|
|
5,355
|
|
|
4,092
|
Long-term debt, less
current maturities
|
|
159,871
|
|
|
169,433
|
Deferred income tax
liabilities
|
|
7,287
|
|
|
8,058
|
Total
liabilities
|
|
333,529
|
|
|
382,625
|
Shareholders'
equity:
|
|
|
|
|
|
Common
Stock:
|
|
|
|
|
|
No par value;
55,000,000 shares authorized, 36,821,656 and 36,534,464
issued and
outstanding at June 30,
2017 and December 31, 2016, respectively
|
|
266,077
|
|
|
262,251
|
Paid-in
capital
|
|
12,166
|
|
|
10,323
|
Accumulated other
comprehensive loss
|
|
(37,608)
|
|
|
(69,091)
|
Accumulated
earnings
|
|
292,333
|
|
|
256,922
|
Total shareholders'
equity
|
|
532,968
|
|
|
460,405
|
Total liabilities and
shareholders' equity
|
$
|
866,497
|
|
$
|
843,030
|
GENTHERM
INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
Six Months Ended June 30,
|
|
2017
|
|
2016
|
Operating
Activities:
|
|
|
|
|
|
Net income
|
$
|
33,915
|
|
$
|
30,339
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
21,191
|
|
|
17,547
|
Deferred income
taxes
|
|
(2,278)
|
|
|
(3,707)
|
Stock
compensation
|
|
4,761
|
|
|
4,505
|
Defined benefit plan
expense
|
|
94
|
|
|
117
|
Provision of doubtful
accounts
|
|
6
|
|
|
274
|
Loss on sale of
property and equipment
|
|
249
|
|
|
254
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(6,949)
|
|
|
(12,668)
|
Inventory
|
|
1,149
|
|
|
6,624
|
Prepaid expenses and
other assets
|
|
(5,147)
|
|
|
(6,890)
|
Accounts
payable
|
|
(2,932)
|
|
|
1,749
|
Accrued
liabilities
|
|
(37,944)
|
|
|
13,029
|
Net cash provided by
operating activities
|
|
6,115
|
|
|
51,173
|
Investing
Activities:
|
|
|
|
|
|
Proceeds from the sale
of property and equipment
|
|
34
|
|
|
27
|
Acquisition of
subsidiary, net of cash acquired
|
|
(2,000)
|
|
|
(73,666)
|
Purchases of property
and equipment
|
|
(25,750)
|
|
|
(30,828)
|
Net cash used in
investing activities
|
|
(27,716)
|
|
|
(104,467)
|
Financing
Activities:
|
|
|
|
|
|
Borrowing of
debt
|
|
—
|
|
|
75,000
|
Repayments of
debt
|
|
(8,428)
|
|
|
(31,918)
|
Excess tax expense
from equity awards
|
|
—
|
|
|
(385)
|
Cash paid for
financing costs
|
|
—
|
|
|
(650)
|
Cash paid for the
cancellation of restricted stock
|
|
(1,100)
|
|
|
(793)
|
Cash paid for the
repurchase of Common Stock
|
|
(53)
|
|
|
—
|
Proceeds from the
exercise of Common Stock options
|
|
2,061
|
|
|
566
|
Net cash (used in)
provided by financing activities
|
|
(7,520)
|
|
|
41,820
|
Foreign currency
effect
|
|
16,111
|
|
|
(998)
|
Net decrease in cash
and cash equivalents
|
|
(13,010)
|
|
|
(12,472)
|
Cash and cash
equivalents at beginning of period
|
|
177,187
|
|
|
144,479
|
Cash and cash
equivalents at end of period
|
$
|
164,177
|
|
$
|
132,007
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Cash paid for
taxes
|
$
|
58,831
|
|
$
|
13,400
|
Cash paid for
interest
|
$
|
2,190
|
|
$
|
1,526
|
Supplemental
disclosure of non-cash transactions:
|
|
|
|
|
|
Common Stock issued to
Board of Directors and employees
|
$
|
2,229
|
|
$
|
2,432
|
|
|
|
|
|
|
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SOURCE Gentherm