Shiloh Industries, Inc. (NASDAQ: SHLO), a leading global
supplier of lightweighting, noise, and vibration solutions to the
automotive, commercial vehicle and other industrial markets, today
reported financial results for its fiscal 2019 first-quarter ended
January 31, 2019.
First Quarter 2019
Highlights:
- Revenues increased 4.5% year over year
to $258.9 million.
- Gross profit was $13.7 million with a
gross margin of 5.3%.
- Net loss was $4.7 million or 20 cents
per diluted share.
- Adjusted EBITDA was $12.6 million.
"Our products continue to gain traction in the market,
demonstrated by the accelerating pace of new business wins on
global platforms," said Ramzi Hermiz, president and chief executive
officer. "During the quarter, we made meaningful progress executing
new product launches that will drive future performance for Shiloh.
As we move past the elevated launch activity, we anticipate
improvement in our profitability."
2019 Outlook
Shiloh is maintaining its previously announced 2019 guidance of
revenue in the range of $1,000 million to $1,150 million and
adjusted EBITDA in the range of $62 million to $70 million.
Additionally, the Company continues to expect annual capital
expenditure to be approximately 4% to 5% of revenue.
Shiloh to Host Conference Call Today at
8:00 A.M. ET
Shiloh will host a conference call on Tuesday, March 12, 2019 at
8:00 A.M. Eastern Time to discuss Shiloh's first quarter fiscal
2019 financial results. The conference call can be accessed by
dialing 1-877-407-0784, or for international callers,
1-201-689-8560. Please dial-in approximately five minutes in
advance and request the Shiloh Industries first quarter fiscal 2019
results conference call. A replay will be available after the call
and can be accessed by dialing 1-844-512-2921, or for international
callers, 1-412-317-6671. The passcode for the replay is 13688285.
The replay will be available until April 2, 2019. Interested
investors and other parties may also listen to a simultaneous
webcast of the conference call by logging onto the Investor
Relations section of Shiloh's website at www.shiloh.com.
Investor Contact:
For inquiries, please contact our Investor Relations department
at: 1-330-558-2601 or at investors@shiloh.com.
About Shiloh Industries,
Inc.
Shiloh Industries, Inc. (NASDAQ: SHLO) is a global innovative
solutions provider focusing on lightweighting technologies that
provide environmental and safety benefits to the mobility
market. Shiloh designs and manufactures products within body
structure, chassis and propulsion systems. Shiloh’s
multi-component, multi-material solutions are comprised of a
variety of alloys in aluminum, magnesium and steel grades, along
with its proprietary line of noise and vibration reducing
ShilohCore® acoustic laminate products. The strategic BlankLight®,
CastLight® and StampLight® brands combine to maximize
lightweighting solutions without compromising safety or
performance. Shiloh has approximately 4,000 dedicated employees
with operations, sales and technical centers throughout Asia,
Europe and North America.
Forward-Looking
Statements
Certain statements made by Shiloh in this press release
regarding our operating performance, events or developments that we
believe or expect to occur in the future, including those that
discuss strategies, goals, outlook or other non-historical matters,
or which relate to future sales, earnings expectations, cost
savings, awarded sales, volume growth, earnings or general belief
in our expectations of future operating results are
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements are made on the basis of management's assumptions and
expectations. As a result, there can be no guarantee or assurance
that these assumptions and expectations will in fact occur. The
forward-looking statements are subject to risks and uncertainties
that may cause actual results to materially differ from those
contained in the statements due to a variety of factors, including
(1) our ability to accomplish our strategic objectives; (2) our
ability to obtain future sales; (3) changes in worldwide economic
and political conditions, including adverse effects from terrorism
or related hostilities; (4) costs related to legal and
administrative matters; (5) our ability to realize cost savings
expected to offset price concessions; (6) our ability to
successfully integrate acquired businesses, including businesses
located outside of the United States; (7) risks associated with
doing business internationally, including economic, political and
social instability, foreign currency exposure and the lack of
acceptance of our products; (8) inefficiencies related to
production and product launches that are greater than anticipated;
(9) changes in technology and technological risks; (10) work
stoppages and strikes at our facilities and that of our customers
or suppliers; (11) our dependence on the automotive and heavy truck
industries, which are highly cyclical; (12) the dependence of the
automotive industry on consumer spending, which is subject to the
impact of domestic and international economic conditions affecting
car and light truck production; (13) regulations and policies
regarding international trade; (14) financial and business
downturns of our customers or vendors, including any production
cutbacks or bankruptcies; (15) increases in the price of, or
limitations on the availability of aluminum, magnesium or steel,
our primary raw materials, or decreases in the price of scrap
steel; (16) the successful launch and consumer acceptance of new
vehicles for which we supply parts; (17) the impact on financial
statements of any known or unknown accounting errors or
irregularities; and the magnitude of any adjustments in restated
financial statements of our operating results; (18) the occurrence
of any event or condition that may be deemed a material adverse
effect under our outstanding indebtedness or a decrease in customer
demand which could cause a covenant default under our outstanding
indebtedness; (19) pension plan funding requirements; and (20)
other factors besides those listed here could also materially
affect our business. See "Part II, Item 1A. Risk Factors" in our
Annual Report on Form 10-K for the fiscal year ended
October 31, 2018 for a more complete discussion of these risks
and uncertainties. Any or all of these risks and uncertainties
could cause actual results to differ materially from those
reflected in the forward-looking statements. These forward-looking
statements reflect management's analysis only as of the date of
this Press Release. We undertake no obligation to publicly revise
these forward-looking statements to reflect events or circumstances
that arise after the date of filing this Press Release. In addition
to the disclosures contained herein, readers should carefully
review risks and uncertainties contained in other documents we file
from time to time with the SEC.
Non-GAAP Financial
Measures
This press release may include non-GAAP financial measures,
including “EBITDA,” “adjusted EBITDA ," "adjusted EBITDA margin"
and "adjusted earnings per share." We define EBITDA as net income
(loss) before interest, taxes, depreciation and amortization. We
define adjusted EBITDA as net income (loss) before interest, taxes,
depreciation, amortization, and other adjustments as described in
the reconciliations accompanying this press release. We define
adjusted EBITDA margin as adjusted EBITDA divided by net revenues
as shown in the reconciliations accompanying this press release.
Adjusted earnings per share excludes certain income and expense
items as shown in the reconciliation accompanying this press
release. We use EBITDA, adjusted EBITDA, adjusted EBITDA margin and
adjusted earnings per share 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 in this release are not measures of
performance under GAAP. These measures should not be considered as
alternatives to 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; 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 special items and other expenses 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.
The magnitude of these items, however, may be significant.
Adjusted Earnings Per Share
Reconciliation
Three Months EndedJanuary
31,
2019 2018 Net income (loss) per common
share (GAAP) Basic $ (0.20 ) $ 0.21 Tax Cuts and Jobs Act, impact —
(0.14 ) Restructuring 0.10 0.05 Amortization of intangibles 0.02
0.02 Legal and professional fees 0.05 0.01 Adjusted basic earnings
(loss) per share (non-GAAP) $ (0.03 ) $ 0.15
Adjusted EBITDA Reconciliation
Three Months EndedJanuary
31,
2019 2018 Net income (loss) $ (4,698 )
$ 4,858 Depreciation and amortization 11,860 10,117 Interest
expense 3,350 2,335 Provision (benefit) for income taxes (3,087 )
(3,058 ) EBITDA (non-GAAP) 7,425 14,252 Restructuring 3,006 1,514
Legal and professional fees 1,635 284 Stock compensation 545 516
Adjusted EBITDA (non-GAAP) $ 12,611 $ 16,566 Adjusted EBITDA margin
(non-GAAP) 4.9 % 6.7 %
SHILOH
INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollar
amounts in thousands)
January 31, 2019
October 31, 2018
(Unaudited) ASSETS: Cash and cash equivalents
$ 11,667 $ 16,843 Accounts receivable, net 175,852 209,733 Related
party accounts receivable 1,727 996 Prepaid income taxes 1,451
1,391 Inventories, net 73,467 71,412 Prepaid expenses 10,298 10,478
Other current assets 12,713 22,124 Total current
assets 287,175 332,977 Property, plant and equipment, net 328,315
316,176 Goodwill 27,609 27,376 Intangible assets, net 14,490 14,939
Deferred income taxes 7,314 5,665 Other assets 11,099 12,542
Total assets $ 676,002 $ 709,675
LIABILITIES AND STOCKHOLDERS’ EQUITY: Current debt $ 813 $
1,327 Accounts payable 168,749 177,400 Other accrued expenses
50,247 63,031 Accrued income taxes 130 1,874 Total
current liabilities 219,939 243,632 Long-term debt 238,581 245,351
Long-term benefit liabilities 15,647 15,553 Deferred income taxes
819 2,894 Other liabilities 3,076 2,723 Total
liabilities 478,062 510,153 Commitments and
contingencies Stockholders’ equity: Preferred stock, $0.01 per
share; 5,000,000 shares authorized; no shares issued and
outstanding at January 31, 2019 and October 31, 2018, respectively
— — Common stock, par value $0.01 per share; 50,000,000 shares
authorized; 23,686,182 and 23,417,107 shares issued and outstanding
at January 31, 2019 and October 31, 2018, respectively 237 234
Paid-in capital 114,947 114,405 Retained earnings 131,115 135,813
Accumulated other comprehensive loss, net (48,359 ) (50,930 ) Total
stockholders’ equity 197,940 199,522 Total
liabilities and stockholders’ equity $ 676,002 $ 709,675
SHILOH INDUSTRIES, INC. CONSOLIDATED
STATEMENTS OF OPERATIONS (Amounts in thousands, except per
share data) Three Months Ended January 31,
2019 2018 (Unaudited)
(Unaudited) Net revenues $ 258,933 $ 247,666 Cost of sales
245,242 219,776 Gross profit 13,691 27,890 Selling,
general & administrative expenses 16,085 21,240 Amortization of
intangible assets 521 565 Restructuring 3,006 1,514
Operating (loss) income (5,921 ) 4,571 Interest expense 3,355 2,340
Interest income (5 ) (5 ) Other (income) expense, net (1,486 ) 436
Income (loss) before income taxes (7,785 ) 1,800 Provision
(benefit) for income taxes (3,087 ) (3,058 ) Net income (loss) $
(4,698 ) $ 4,858 Income (loss) per share: Basic earnings
(loss) per share $ (0.20 ) $ 0.21 Basic weighted average
number of common shares 23,385 23,107 Diluted
earnings (loss) per share $ (0.20 ) $ 0.21 Diluted weighted
average number of common shares 23,385 23,287
SHILOH INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (Dollar amounts in thousands) Three
Months Ended January 31, 2019 2018
(Unaudited) (Unaudited) CASH FLOWS FROM OPERATING
ACTIVITIES: Net income (loss) $ (4,698 ) $ 4,858 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 11,860 10,117 Amortization of
deferred financing costs 297 309 Restructuring 1,043 277 Deferred
income taxes (3,918 ) (3,551 ) Stock-based compensation expense 545
516 (Gain) loss on sale of assets (2,915 ) (12 ) Loss on marketable
securities 20 — Changes in operating assets and liabilities:
Accounts receivable, net 40,283 32,313 Inventories, net 704 (671 )
Prepaids and other assets 1,059 (6,044 ) Payables and other
liabilities (34,138 ) (23,522 ) Prepaid and accrued income taxes
(3,781 ) (2,950 ) Net cash provided by operating activities 6,361
11,640 CASH FLOWS FROM INVESTING ACTIVITIES: Capital
expenditures (15,661 ) (9,885 ) Proceeds from sale of assets 10,858
— Net cash used in investing activities (4,803 )
(9,885 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of capital
leases (201 ) (223 ) Proceeds from long-term borrowings 61,600
46,900 Repayments of long-term borrowings (68,300 ) (45,370 )
Payment of deferred financing costs — (57 ) Net cash
provided by (used in) financing activities (6,901 ) 1,250 Effect of
foreign currency exchange rate fluctuations on cash 167 (675
) Net increase (decrease) in cash and cash equivalents (5,176 )
2,330 Cash and cash equivalents at beginning of period 16,843
8,736 Cash and cash equivalents at end of period $
11,667 $ 11,066
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190312005236/en/
Kevin Doherty1-330-558-2601investors@shiloh.com
Shiloh Industries (NASDAQ:SHLO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Shiloh Industries (NASDAQ:SHLO)
Historical Stock Chart
From Apr 2023 to Apr 2024