Gentherm (NASDAQ:THRM), a global market leader and developer of
innovative thermal management technologies, today announced that it
will postpone its 2020 fourth quarter and full-year earnings
release and conference call, originally scheduled for Friday,
February 19, 2021. The Company requires additional time to complete
its review of the valuation of certain tax assets, as well as to
assess any related non-cash impact on its financial statements for
2018 through 2020, and for its current and prior audit firms to
complete their related audit procedures. The Company expects to
issue its financial statements in the coming weeks. Gentherm will
publicly announce a new earnings release and conference call date
and time when available.
The Company announced fourth quarter 2020 product revenues of
$288.9 million, an increase of $58.5 million, or 25.4%, as compared
with the prior-year period. For full-year 2020, the Company
reported product revenues of $913.1 million, a 6.0% decrease as
compared with the prior year. The Company secured new automotive
business awards totaling approximately $440 million in the fourth
quarter 2020, resulting in a total of $940 million for full-year
2020.
Phil Eyler, Gentherm’s President and CEO, said “Our global team
has pivoted quickly to respond to strengthening OEM demand over the
past several months, finishing with strong revenue results for the
fourth quarter and winning over 90% of the automotive opportunities
available to us in 2020. I am very proud of the agility, hard work
and commitment of the talented Gentherm team to overcome challenges
in the market and deliver the highest quarterly revenue in the
Company’s history. We are carrying this strong momentum into 2021
and anticipate continued outperformance relative to the automotive
market.”
Guidance
The Company is providing the following guidance for full-year
2021:
- Product revenues between $1.05 billion and $1.13 billion,
assuming current foreign exchange rates and light vehicle
production in the Company’s key markets growing at a low-teens rate
in 2021 versus 2020
- Adjusted EBITDA between 17% and 19% of product revenues
Investor Relations ContactYijing
Brentanoinvestors@gentherm.com248.308.1702
Media ContactMelissa
Fischermedia@gentherm.com248.289.9702
About Gentherm
Gentherm (NASDAQ: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, heated automotive interior systems (including heated seats,
steering wheels, armrests and other components), battery
performance solutions, cable systems and other electronic devices.
Medical products include patient temperature management systems.
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 more than 11,000 employees in facilities
in the United States, Germany, Canada, China, Hungary, Japan,
Korea, North Macedonia, Malta, Mexico, United Kingdom,
Ukraine, and Vietnam. For more information, go
to www.gentherm.com.
Forward-Looking Statements
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 release are
made as of the date hereof or as of the date specified herein and
are based on management's reasonable expectations and beliefs. Such
statements are subject to a number of important assumptions, risks,
uncertainties and other factors that may cause actual results or
performance to differ materially from that described in or
indicated by the forward-looking statements, including that:
- the COVID-19 pandemic and its direct and indirect adverse
impacts on the automobile and medical industries and global
economy, which had, and are likely to continue to have, an adverse
effect on, among other things, the Company’s results of operations,
financial condition, cash flows, liquidity, business operations and
stock price;
- borrowing availability under the Company’s revolving credit
facility, which was substantially less than the full amount of
revolving credit facility in 2020 based on the deterioration of the
Company’s financial performance during 2020 (including consolidated
EBITDA) due to the COVID-19 pandemic;
- the Company’s failure to be in compliance with covenants under
its debt agreements, which could result in the amounts outstanding
thereunder being accelerated and becoming immediately due and
payable;
- the Company’s ability to obtain additional financing by
accessing the capital markets, which may not be available on
acceptable terms or at all;
- the macroeconomic environment, including its impact on the
automotive industry, which is cyclical;
- any significant declines or slower growth than anticipated in
automobile production;
- market acceptance of the Company’s existing or new products,
and new or improved competing products developed by competitors
with greater resources;
- shifting customer preferences, including due to the evolving
use of automobiles and technology;
- the Company’s ability to project future sales volumes, based on
which the Company manages its business;
- reductions in new business awards, which were limited, and may
continue to be limited, due to COVID-19 and related
uncertainties;
- the Company’s ability to convert new business awards into
product revenues;
- the loss or insolvency of any of the Company’s key
customers;
- the loss of any key suppliers, or any material delays in the
supply chain of the Company or the OEMs and Tier 1s supplied by the
Company, including resulting from a shortage of key components
(such as semiconductors);
- the impact of price downs in the ordinary course, or additional
increased pricing pressures from the Company’s customers;
- the feasibility of Company’s development of new products on a
timely, cost effective basis, or at all;
- security breaches and other disruptions to the Company’s IT
systems;
- work stoppages impacting the Company, its suppliers or
customers;
- changes in free trade agreements or the implementation of
additional tariffs, and the Company’s ability to pass-through
tariff costs;
- unfavorable changes to currency exchange rates;
- the Company’s ability to protect its intellectual property in
certain jurisdictions;
- the completion of the Company’s review of the valuation of
certain tax assets and assessment of any related non-cash impact on
its 2018 through 2020 financial statements;
- the Company’s ability to effectively implement ongoing
restructuring and other cost-savings measures or realize the full
amount of estimated savings; and
- compliance with, and increased costs related to, domestic and
international regulations.
The foregoing risks should be read in conjunction with the
Company's filings with the Securities and Exchange Commission (the
“SEC”), including “Risk Factors”, in its most recent Annual Report
on Form 10-K and subsequent SEC filings, for a discussion of these
and other risks and uncertainties. In addition, the business
outlook discussed in this release does not include the potential
impact of any business combinations, acquisitions,
divestitures, strategic investments and other significant
transactions that may be completed after the date hereof, each of
which may present material risks to the Company’s future business
and financial results.
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.
Use of Non-GAAP Financial Measures
In addition to the results reported in accordance with GAAP
throughout this release, the Company has provided information
regarding adjusted earnings before interest, taxes, depreciation
and amortization (“Adjusted EBITDA”), a non-GAAP financial measure.
The Company defines Adjusted EBITDA as earnings before interest,
taxes, depreciation and amortization, deferred financing cost
amortization, and other gains and losses not reflective of the
Company’s ongoing operations and related tax effects including
transaction expenses, debt retirement expenses, impairment of
assets held for sale, gain or loss on sale of business,
restructuring expense, unrealized currency gain or loss and
unrealized revaluation of derivatives.
In evaluating its business, the Company considers and uses this
non-GAAP financial measure as a supplemental measure of its
operating performance. Management provides such non-GAAP financial
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 by excluding matters not indicative of the
Company’s ongoing operating results. Other companies in our
industry may define and calculate this non-GAAP financial measure
differently than we do and those calculations may not be comparable
to our metric. This non-GAAP measure has limitations as an
analytical tool, and when assessing the Company's operating
performance, investors should not consider this non-GAAP measure in
isolation, or as a substitute for net income, revenue or other
consolidated income statement data prepared in accordance with
GAAP.
Non-GAAP measures referenced in this release and other public
communications may include estimates of future Adjusted EBITDA.
Such forward-looking non-GAAP measures may differ significantly
from the corresponding GAAP measures, due to depreciation and
amortization, tax expense, and/or interest expense, some or all of
which management has not quantified for the future periods.
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