Shiloh Industries, Inc. (NASDAQ: SHLO), an
environmentally focused 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 fourth-quarter ended October 31, 2019.
Fourth-Quarter 2019
Highlights:
- Revenues were $259.0 million.
- Gross profit was $24.6 million, an increase of 3.3% over prior
year.
- Gross margin of 9.5%, an expansion of 160 basis points over
prior year.
- Net loss was $13.7 million or $0.59 cents per basic share.
- Adjusted EBITDA was $16.6 million, an increase of 11.0% over
prior year.
- Adjusted EBITDA margin was 6.4%, an expansion of 140 basis
points over prior year.
Full-Year 2019
Highlights:
- Revenues were $1,054.7 million.
- Gross Profit was $90.6 million with a gross margin of
8.6%.
- Net loss was $19.9 million or $0.85 cents per basic share.
- Adjusted loss was $0.13 cents per basic share.
- Adjusted EBITDA was $69.8 million.
- Adjusted EBITDA margin was 6.6%.
“Shiloh had a successful fiscal 2019, winning new business,
completing key product launches, expanding our global footprint,
and delivering on our financial commitments,” said Ramzi Hermiz,
president and chief executive officer. "Shiloh delivered on the
high end of guidance with nearly $70 million in adjusted EBITDA,
overcoming many headwinds, including the impact of the UAW strike
at General Motors. During the year, we took important restructuring
actions to better position the company to navigate market
conditions. We exited 2019 with momentum as we expanded gross
margin and adjusted EBITDA margin in the fourth quarter. As we
execute our strategy, we are creating innovative solutions for
sustainable mobility, enabling a safer and healthier environment,
and setting Shiloh apart from our peers. We enter fiscal 2020 as a
stronger organization with an improved cost structure that is well
positioned to continue to improve our profitability and expand our
sustainability efforts globally.”
2020 Outlook
Shiloh is introducing 2020 guidance for revenue of approximately
$1 billion and adjusted EBITDA in the range of $75 million to $80
million, representing an increase of 7% to 15% compared to
2019.
Shiloh to Host Conference Call Today at
4:30 P.M. ET
Shiloh will host a conference call on Thursday, December 19,
2019 at 4:30 P.M. Eastern Time to discuss Shiloh's fourth 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 fourth 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 13697404. The replay will be available until January 9, 2020.
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 3,600
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 agreements related to our outstanding indebtedness or
a decrease in customer demand which could cause a covenant default
under agreements related to our outstanding indebtedness; (19)
pension plan funding requirements; and (20) other factors besides
those listed here could also materially affect our business. See
"Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K
for the fiscal year ended October 31, 2019 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 Ended October
31,
Year-Ended October 31,
2019
2018
2019
2018
Net income (loss) per common share
(GAAP)
Basic
$(0.59)
$(0.36)
$(0.85)
$0.49
Tax items
0.09
—
0.09
(0.10)
Tax Cuts and Jobs Act, impact
—
—
—
(0.14)
Transformation restructuring
0.19
0.05
0.56
0.21
Asset impairment - non-cash
0.19
—
0.19
—
Amortization of intangibles
0.01
0.02
0.06
0.08
Marketable securities
—
—
—
0.01
Legal and professional fees
0.01
0.06
0.08
0.07
Adjusted basic earnings (loss) per share
(non-GAAP)
$(0.10)
$(0.23)
$0.13
$0.62
Adjusted EBITDA Reconciliation
Three Months Ended October
31,
Year- Ended October
31,
2019
2018
2019
2018
Net income (loss)
$(13,652)
$(8,456)
$(19,947)
$11,479
Depreciation and amortization
11,743
11,953
46,753
45,728
Interest expense
4,420
3,148
16,246
11,333
Provision (benefit) for income taxes
2,001
4,635
(611)
(5,219)
EBITDA (non-GAAP)
4,512
11,280
42,441
63,321
Transformation restructuring
5,701
1,469
17,072
6,431
Legal and professional fees
239
1,793
2,530
2,160
Stock compensation
459
427
2,035
1,984
Asset impairment - non-cash
5,701
—
5,701
—
Marketable securities
—
—
—
154
Adjusted EBITDA (non-GAAP)
$16,612
$14,969
$69,779
$74,050
Adjusted EBITDA margin (non-GAAP)
6.4%
5.0%
6.6%
6.5%
Adjusted Operating Income
Three Months Ended October
31,
Year-Ended October 31,
2019
2018
2019
2018
Operating income (loss)
$
(7,544
)
$
(879
)
$
(5,584
)
$
18,506
Transformation restructuring
5,701
1,469
17,072
6,431
Asset impairment - non-cash
5,701
—
5,701
—
Adjusted operating income (loss)
$
3,858
$
590
$
17,189
$
24,937
SHILOH INDUSTRIES,
INC.
CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in
thousands)
October 31, 2019
October 31, 2018
ASSETS:
Cash and cash equivalents
$
14,320
$
16,843
Accounts receivable, net
172,468
209,733
Related party accounts receivable
1,477
996
Prepaid income taxes
1,853
1,391
Inventories, net
63,547
71,412
Prepaid expenses
8,980
10,478
Other current assets
13,354
22,124
Total current assets
275,999
332,977
Property, plant and equipment, net
328,026
316,176
Goodwill
22,395
27,376
Intangible assets, net
13,025
14,939
Deferred income taxes
5,169
5,665
Other assets
7,077
12,542
Total assets
$
651,691
$
709,675
LIABILITIES AND STOCKHOLDERS’
EQUITY:
Current debt
$
1,975
$
1,327
Accounts payable
155,754
177,400
Other accrued expenses
50,093
63,031
Accrued income taxes
316
1,874
Total current liabilities
208,138
243,632
Long-term debt
248,695
245,351
Long-term benefit liabilities
24,147
15,553
Deferred income taxes
798
2,894
Other liabilities
2,399
2,723
Total liabilities
484,177
510,153
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 per share;
5,000,000 shares authorized; no shares issued and outstanding at
October 31, 2019 and October 31, 2018, respectively
—
—
Common stock, par value $0.01 per share;
75,000,000 and 50,000,000 shares authorized at October 31, 2019 and
October 31, 2018, respectively; 23,790,258 and 23,417,107 shares
issued and outstanding at October 31, 2019 and October 31, 2018,
respectively
238
234
Paid-in capital
116,436
114,405
Retained earnings
115,866
135,813
Accumulated other comprehensive loss,
net
(65,026
)
(50,930
)
Total stockholders’ equity
167,514
199,522
Total liabilities and stockholders’
equity
$
651,691
$
709,675
SHILOH INDUSTRIES,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except
per share data)
Three Months Ended October
31,
Year Ended October 31,
2019
2018
2019
2018
Net revenues
$
258,959
$
300,055
$
1,054,707
$
1,139,944
Cost of sales
234,341
276,233
964,131
1,023,849
Gross profit
24,618
23,822
90,576
116,095
Selling, general & administrative
expenses
20,243
22,445
71,312
88,604
Amortization of intangible assets
517
605
2,075
2,372
Asset impairment, net
5,701
—
5,701
—
Restructuring
5,701
1,651
17,072
6,613
Operating income (loss)
(7,544
)
(879
)
(5,584
)
18,506
Interest expense
4,422
3,149
16,258
11,343
Interest income
(2
)
(1
)
(12
)
(10
)
Other (income) expense, net
(313
)
(206
)
(1,272
)
913
Income (loss) before income taxes
(11,651
)
(3,821
)
(20,558
)
6,260
Provision (benefit) for income taxes
2,001
4,635
(611
)
(5,219
)
Net income (loss)
$
(13,652
)
$
(8,456
)
$
(19,947
)
$
11,479
Income (loss) per share:
Basic earnings (loss) per share
$
(0.59
)
$
(0.36
)
$
(0.85
)
$
0.49
Basic weighted average number of common
shares
23,566
23,309
23,506
23,229
Diluted earnings (loss) per share
$
(0.59
)
$
(0.36
)
$
(0.85
)
$
0.49
Diluted weighted average number of common
shares
23,566
23,309
23,506
23,369
SHILOH INDUSTRIES,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Dollar amounts in
thousands)
Year Ended October 31,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
(19,947
)
$
11,479
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
46,753
45,728
Amortization of deferred financing
costs
1,541
1,244
Asset impairment
5,701
—
Restructuring
4,863
280
Deferred income taxes
(3,013
)
(9,770
)
Stock-based compensation expense
2,035
1,984
(Gain) loss on sale of assets
(2,637
)
993
Loss on marketable securities
29
154
Changes in operating assets and
liabilities:
Accounts receivable, net
34,114
(1,426
)
Inventories, net
7,083
412
Prepaids and other assets
(1,619
)
1,733
Payables and other liabilities
(41,644
)
(1,462
)
Prepaid and accrued income taxes
(2,013
)
1,877
Net cash provided by operating
activities
31,246
53,226
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(55,225
)
(50,135
)
Acquisitions, net of cash required
—
(62,514
)
Derivative settlements
5,855
—
Proceeds from sale of assets
12,393
3,592
Net cash used in investing activities
(36,977
)
(109,057
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of capital leases
(582
)
(886
)
Proceeds from long-term borrowings
280,500
266,900
Repayments of long-term borrowings
(275,100
)
(202,282
)
Payment of deferred financing costs
(1,954
)
(105
)
Proceeds from exercise of stock
options
—
73
Net cash provided by (used in) financing
activities
2,864
63,700
Effect of foreign currency exchange rate
fluctuations on cash
344
238
Net increase (decrease) in cash and cash
equivalents
(2,523
)
8,107
Cash and cash equivalents at beginning of
period
16,843
8,736
Cash and cash equivalents at end of
period
$
14,320
$
16,843
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191219005656/en/
Kevin Doherty investors@shiloh.com 1-330-558-2601
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