Gentherm (NASDAQ:THRM), a global market leader and developer of
innovative thermal management technologies, today announced its
financial results for the second quarter ending June 30, 2021.
Second Quarter Highlights
- Product revenues of
$266.0 million increased 95.5% from $136.1 million in the 2020
second quarter.
- Excluding the
impact of foreign currency translation, product revenues increased
87.3% year over year
- GAAP diluted
earnings per share was $0.74 as compared with a diluted loss per
share of $0.32 for the prior-year period
- Adjusted diluted
earnings per share (see table herein) was $0.85. The prior-year
quarter had an adjusted diluted loss per share of $0.30
- Secured automotive
new business awards totaling $400 million in the quarter
Phil Eyler, the Company's President and CEO, said “I am proud of
the Gentherm team for consistently outperforming light vehicle
production in the key markets we serve and securing another $400
million of new awards from auto makers around the world, including
our first ever production award for ClimateSenseTM. Despite the
headwinds in the global supply chain, we generated the highest
level of quarterly cash flow from operations since 2018.”
“While supply disruptions will remain challenging in the near
term, the momentum in new awards, winning coveted supplier awards
from General Motors and Honda, coupled with a disciplined approach
to cost management position us well to continue to deliver over the
long term,” continued Eyler.
2021 Second Quarter Financial Review
Product revenues for the second quarter of 2021 increased by
$129.9 million, or 95.5%, as compared with the prior-year period.
Excluding the impact of foreign currency translation, product
revenues increased 87.3% year over year.
Automotive revenues increased 105.1% year over year, with
revenue growth in all product categories. Adjusting for foreign
currency translation, organic Automotive revenues increased 96.2%
year over year, primarily as a result of the negative impact of
COVID-19 in the prior-year period, as well as increased volumes
from new launches and higher take rates. According to IHS Markit’s
mid-July report, actual light vehicle production increased by
approximately 36.4% when compared with the second quarter of 2020
in the Company’s key markets of North America, Europe, China, Japan
and Korea.
Gentherm Medical revenue declined 6.6% year over year, primarily
as a result of the COVID-driven higher Blanketrol® sales in the
prior-year period.
See the “Revenues by Product Category” table included below for
additional detail.
Gross margin rate increased to 29.8% in the current-year period,
as compared with 19.6% in the prior-year period. The improvement
over the prior-year period resulted from fixed cost leverage from
higher unit volume, labor productivity, and favorable foreign
currency translation. These were partially offset by the impact
from industry-wide supply chain disruptions, annual customer price
reductions, and wage inflation.
Net research and development expenses of $18.2 million in the
2021 second quarter increased $2.9 million, or 18.8% over the
prior-year period, primarily due to increased project spending
related to new awards and new technology investments, partially
offset by higher reimbursements for design and development
costs.
Selling, general and administrative expenses of $27.2 million in
the 2021 second quarter increased $5.3 million, or 24.4%, versus
the prior-year period. The year-over-year increase was primarily
driven by the absence of temporary COVID-19 cost reduction measures
that were taken by the Company in the second quarter of 2020.
Restructuring expenses of $2.1 million in the current-year
period were primarily due to employee separation costs.
As described more fully in the “Reconciliation of Net Income
(Loss) to Adjusted EBITDA” table included below, the Company
recorded Adjusted EBITDA of $43.7 million in the 2021 second
quarter compared with $0.1 million in the prior-year period, an
increase of $43.6 million.
Income tax expense in the 2021 second quarter was $5.7 million,
as compared with $0.2 million in the prior-year period. The
effective tax rate was 18.8% in the 2021 second quarter.
GAAP diluted earnings per share for the second quarter of 2021
was $0.74 compared with a diluted loss per share of $0.32 for the
prior-year period. Adjusted diluted earnings per share, excluding
restructuring expenses, non-cash purchase accounting impact and
other impacts (see table herein), was $0.85. Adjusted diluted loss
per share in the prior-year period was $0.30.
Guidance
The Company is updating its full-year 2021 guidance that was
initially provided in its year-end 2020 earnings release
on March 1, 2021:
- Product revenues
between $1.11 billion and $1.17 billion, based on the current
forecast of customer orders and production outlook for the balance
of 2021 and current foreign exchange rates
- Adjusted EBITDA
between 17% and 18% of product revenues
- Full-year effective
tax rate between 20% and 22%
- Capital expenditures between $50
million and $60 million
Conference Call
As previously announced, Gentherm will conduct a conference call
today at 8:00 am Eastern Time to review these results. The dial-in
number for the call is 1-877-407-4018 (callers in the U.S.) or
+1-201-689-8471 (callers outside the U.S.). The passcode for the
live call is 13721112.
A live webcast and one-year 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 approximately two hours
after the call until 11:59 pm Eastern Time on August 12, 2021. The
replay can be accessed by dialing 1-844-512-2921 (callers in the
U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode
for the replay is 13721112.
Investor Relations ContactYijing
Brentanoinvestors@gentherm.com(248) 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:
- the COVID-19
pandemic and its direct and indirect adverse impacts on the
automobile and medical industries, global supply chain and global
economy, which had, and may continue to have, an adverse effect on,
among other things, the Company’s results of operations, financial
condition, cash flows, liquidity, borrowing availability under the
Company’s revolving credit facility, business operations, and stock
price;
- 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 the
significant supply disruptions currently faced by the automotive
industry, including relating to semiconductors);
- 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 light vehicle
production, and in particular in markets for electric
vehicles;
- 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 in 2020, and could be limited
in the future, due to COVID-19, global supply chain challenges and
related uncertainties;
- the Company’s
ability to convert new business awards into product revenues;
- managing the Company’s growth effectively and to integrate
successfully any recent business ventures, acquisitions, and
strategic investments and alliances into the Company’s
business;
- the loss or
insolvency of any of the Company’s key customers;
- 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 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.
GENTHERM
INCORPORATEDCONSOLIDATED CONDENSED STATEMENTS OF
INCOME (LOSS)(In thousands, except per share
data) (Unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Product revenues |
$ |
266,005 |
|
|
$ |
136,061 |
|
|
$ |
554,540 |
|
|
$ |
364,674 |
|
Cost of sales |
|
186,792 |
|
|
|
109,326 |
|
|
|
387,658 |
|
|
|
271,872 |
|
Gross margin |
|
79,213 |
|
|
|
26,735 |
|
|
|
166,882 |
|
|
|
92,802 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net research and development expenses |
|
18,227 |
|
|
|
15,341 |
|
|
|
35,830 |
|
|
|
33,101 |
|
Selling, general and administrative expenses |
|
27,223 |
|
|
|
21,889 |
|
|
|
55,749 |
|
|
|
47,729 |
|
Restructuring expenses |
|
2,091 |
|
|
|
(598 |
) |
|
|
2,882 |
|
|
|
3,168 |
|
Total operating expenses |
|
47,541 |
|
|
|
36,632 |
|
|
|
94,461 |
|
|
|
83,998 |
|
Operating income (loss) |
|
31,672 |
|
|
|
(9,897 |
) |
|
|
72,421 |
|
|
|
8,804 |
|
Interest expense, net |
|
(630 |
) |
|
|
(1,361 |
) |
|
|
(1,669 |
) |
|
|
(2,109 |
) |
Foreign currency (loss) gain |
|
(515 |
) |
|
|
(1,741 |
) |
|
|
258 |
|
|
|
(2,679 |
) |
Other income |
|
12 |
|
|
|
2,882 |
|
|
|
3 |
|
|
|
3,146 |
|
Earnings (loss) before income
tax |
|
30,539 |
|
|
|
(10,117 |
) |
|
|
71,013 |
|
|
|
7,162 |
|
Income tax expense |
|
5,748 |
|
|
|
205 |
|
|
|
13,313 |
|
|
|
5,611 |
|
Net income (loss) |
$ |
24,791 |
|
|
$ |
(10,322 |
) |
|
$ |
57,700 |
|
|
$ |
1,551 |
|
Basic earnings (loss) per
share |
$ |
0.75 |
|
|
$ |
(0.32 |
) |
|
$ |
1.75 |
|
|
$ |
0.05 |
|
Diluted earnings (loss) per
share |
$ |
0.74 |
|
|
$ |
(0.32 |
) |
|
$ |
1.72 |
|
|
$ |
0.05 |
|
Weighted average number of shares
– basic |
|
33,100 |
|
|
|
32,580 |
|
|
|
33,025 |
|
|
|
32,635 |
|
Weighted average number of shares
– diluted |
|
33,544 |
|
|
|
32,580 |
|
|
|
33,469 |
|
|
|
32,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENTHERM
INCORPORATEDREVENUE BY PRODUCT CATEGORY AND
RECONCILIATION OF FOREIGN CURRENCY TRANSLATION
IMPACT(In
thousands)(Unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
Climate Control Seat |
$ |
98,229 |
|
|
$ |
49,879 |
|
|
|
96.9 |
% |
|
$ |
207,402 |
|
|
$ |
132,407 |
|
|
|
56.6 |
% |
Seat Heaters |
|
69,864 |
|
|
|
33,342 |
|
|
|
109.5 |
% |
|
|
146,585 |
|
|
|
97,874 |
|
|
|
49.8 |
% |
Steering Wheel Heaters |
|
26,697 |
|
|
|
7,980 |
|
|
|
234.5 |
% |
|
|
55,561 |
|
|
|
27,215 |
|
|
|
104.2 |
% |
Automotive Cables |
|
22,940 |
|
|
|
9,833 |
|
|
|
133.3 |
% |
|
|
47,221 |
|
|
|
31,973 |
|
|
|
47.7 |
% |
Battery Performance
Solutions |
|
17,577 |
|
|
|
6,653 |
|
|
|
164.2 |
% |
|
|
35,337 |
|
|
|
17,862 |
|
|
|
97.8 |
% |
Electronics |
|
14,652 |
|
|
|
13,488 |
|
|
|
8.6 |
% |
|
|
29,757 |
|
|
|
23,864 |
|
|
|
24.7 |
% |
Other Automotive |
|
5,146 |
|
|
|
3,211 |
|
|
|
60.3 |
% |
|
|
12,612 |
|
|
|
9,663 |
|
|
|
30.5 |
% |
Subtotal Automotive segment |
|
255,105 |
|
|
|
124,386 |
|
|
|
105.1 |
% |
|
|
534,475 |
|
|
|
340,858 |
|
|
|
56.8 |
% |
Medical segment |
|
10,900 |
|
|
|
11,675 |
|
|
|
(6.6 |
)% |
|
|
20,065 |
|
|
|
23,816 |
|
|
|
(15.7 |
)% |
Total Company |
$ |
266,005 |
|
|
$ |
136,061 |
|
|
|
— |
|
|
$ |
554,540 |
|
|
$ |
364,674 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
impact |
|
11,113 |
|
|
|
— |
|
|
|
|
|
|
|
21,992 |
|
|
|
— |
|
|
|
|
|
Total Company, excluding foreigncurrency translation impact |
$ |
254,892 |
|
|
$ |
136,061 |
|
|
|
87.3 |
% |
|
$ |
532,548 |
|
|
$ |
364,674 |
|
|
|
46.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENTHERM INCORPORATED
RECONCILIATION OF NET INCOME (LOSS) TO
ADJUSTED EBITDA(In
thousands)(Unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
$ |
24,791 |
|
|
$ |
(10,322 |
) |
|
$ |
57,700 |
|
|
$ |
1,551 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
9,628 |
|
|
|
9,847 |
|
|
|
19,323 |
|
|
|
20,000 |
|
Income tax expense |
|
5,748 |
|
|
|
205 |
|
|
|
13,313 |
|
|
|
5,611 |
|
Interest expense |
|
630 |
|
|
|
1,361 |
|
|
|
1,669 |
|
|
|
2,109 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expense |
|
2,091 |
|
|
|
(598 |
) |
|
|
2,882 |
|
|
|
3,168 |
|
Unrealized currency (gain) loss |
|
(11 |
) |
|
|
1,609 |
|
|
|
(306 |
) |
|
|
2,374 |
|
Gain on sale of patents |
|
— |
|
|
|
(1,978 |
) |
|
|
— |
|
|
|
(1,978 |
) |
Acquisition expenses |
|
844 |
|
|
|
— |
|
|
|
958 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
43,721 |
|
|
$ |
124 |
|
|
$ |
95,539 |
|
|
$ |
32,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues |
$ |
266,005 |
|
|
$ |
136,061 |
|
|
$ |
554,540 |
|
|
$ |
364,674 |
|
Adjusted EBITDA % |
|
16.4 |
% |
|
|
0.1 |
% |
|
|
17.2 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
In addition to the results reported in accordance with GAAP
throughout this release, the Company has provided here or elsewhere
information regarding adjusted earnings before interest, taxes,
depreciation and amortization (“Adjusted EBITDA”), Adjusted EBITDA
margin, adjusted earnings per share (“Adjusted earnings per share”
or “Adjusted EPS”), free cash flow, Net Debt and Revenue excluding
the impact of foreign currency translation, each 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. The Company defines
Adjusted EBITDA margin as Adjusted EBITDA divided by product
revenues. The Company defines Adjusted EPS as earnings adjusted by
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.
The Company defines Free Cash Flow as Net cash provided by
operating activities less Purchases of property and equipment. The
Company defines Net Debt as the principal amount of all
Consolidated Funded Indebtedness (as defined in the Credit
Agreement) less cash and cash equivalents. The Company defines
Revenue excluding the impact of foreign currency translation as
revenue, less the estimated effects of foreign currency exchange on
revenue by translating actual revenue using the prior period
foreign currency exchange rates.
The Company’s reconciliations are included in this release or
can be found in the supplemental materials furnished as Exhibit
99.2 to the Company’s Form 8-K dated July 29, 2021.
In evaluating its business, the Company considers and uses Free
Cash Flow and Net Debt as supplemental measures of its liquidity
and the other non-GAAP financial measures as supplemental measures
of its operating performance. Management provides such non-GAAP
financial measures 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 or liquidity results. In evaluating
our non-GAAP financial measures, you should be aware that in the
future we may incur revenues, expenses, and cash and non-cash
obligations that are the same as or similar to some of the
adjustments in our presentation of non-GAAP financial measures. Our
presentation of non-GAAP financial measures should not be construed
as an inference that our future results will be unaffected by
unusual or non-recurring items. There also can be no assurance that
we will not modify the presentation of our non-GAAP financial
measures in the future, and any such modification may be material.
Other companies in our industry may define and calculate these
non-GAAP financial measures differently than we do and those
calculations may not be comparable to our metrics. These non-GAAP
measures have limitations as analytical tools, and when assessing
the Company's operating performance or liquidity, investors should
not consider these non-GAAP measures in isolation, or as a
substitute for net income, revenue or other consolidated income
statement or cash flow 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,
Adjusted EBITDA margin and Adjusted EPS. 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.
GENTHERM INCORPORATED
ADJUSTED NET INCOME (LOSS) AND ADJUSTED
EARNINGS PER SHARE(In thousands, except per share
data)(Unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
$ |
24,791 |
|
|
$ |
(10,322 |
) |
|
$ |
57,700 |
|
|
$ |
1,551 |
|
Non-cash purchase accounting impact |
|
2,050 |
|
|
|
2,141 |
|
|
|
4,100 |
|
|
|
4,284 |
|
Restructuring expenses |
|
2,091 |
|
|
|
(598 |
) |
|
|
2,882 |
|
|
|
3,168 |
|
Unrealized currency (gain) loss |
|
(11 |
) |
|
|
1,609 |
|
|
|
(306 |
) |
|
|
2,374 |
|
Gain on sale of patents |
|
— |
|
|
|
(1,978 |
) |
|
|
— |
|
|
|
(1,978 |
) |
Acquisition expenses |
|
844 |
|
|
|
— |
|
|
|
958 |
|
|
|
— |
|
Tax effect of above |
|
(1,311 |
) |
|
|
(619 |
) |
|
|
(1,991 |
) |
|
|
(2,329 |
) |
Adjusted net income
(loss) |
$ |
28,454 |
|
|
$ |
(9,767 |
) |
|
$ |
63,343 |
|
|
$ |
7,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
33,100 |
|
|
|
32,580 |
|
|
|
33,025 |
|
|
|
32,635 |
|
Diluted |
|
33,544 |
|
|
|
32,580 |
|
|
|
33,469 |
|
|
|
32,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share, as
reported: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.75 |
|
|
$ |
(0.32 |
) |
|
$ |
1.75 |
|
|
$ |
0.05 |
|
Diluted |
$ |
0.74 |
|
|
$ |
(0.32 |
) |
|
$ |
1.72 |
|
|
$ |
0.05 |
|
Adjusted earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.86 |
|
|
$ |
(0.30 |
) |
|
$ |
1.92 |
|
|
$ |
0.22 |
|
Diluted |
$ |
0.85 |
|
|
$ |
(0.30 |
) |
|
$ |
1.89 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENTHERM INCORPORATED
CONSOLIDATED CONDENSED BALANCE
SHEETS (In thousands, except share data)
(Unaudited)
|
June 30, 2021 |
|
|
December 31, 2020 |
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
186,863 |
|
|
$ |
268,345 |
|
Accounts receivable, net |
|
198,225 |
|
|
|
211,672 |
|
Inventory: |
|
|
|
|
|
|
|
Raw materials |
|
80,208 |
|
|
|
68,362 |
|
Work in process |
|
9,369 |
|
|
|
8,247 |
|
Finished goods |
|
48,669 |
|
|
|
45,792 |
|
Inventory, net |
|
138,246 |
|
|
|
122,401 |
|
Other current assets |
|
35,668 |
|
|
|
41,188 |
|
Total current assets |
|
559,002 |
|
|
|
643,606 |
|
Property and equipment, net |
|
155,439 |
|
|
|
152,581 |
|
Goodwill |
|
66,710 |
|
|
|
68,024 |
|
Other intangible assets, net |
|
41,009 |
|
|
|
46,421 |
|
Operating lease right-of-use
assets |
|
26,195 |
|
|
|
30,642 |
|
Deferred income tax assets |
|
72,558 |
|
|
|
73,912 |
|
Other non-current assets |
|
12,960 |
|
|
|
7,653 |
|
Total assets |
$ |
933,873 |
|
|
$ |
1,022,839 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
115,096 |
|
|
$ |
116,043 |
|
Current lease liabilities |
|
6,046 |
|
|
|
6,032 |
|
Current maturities of long-term debt |
|
2,500 |
|
|
|
2,500 |
|
Other current liabilities |
|
83,500 |
|
|
|
81,409 |
|
Total current liabilities |
|
207,142 |
|
|
|
205,984 |
|
Long-term debt, less current
maturities |
|
45,794 |
|
|
|
189,934 |
|
Non-current lease
liabilities |
|
21,275 |
|
|
|
24,233 |
|
Pension benefit obligation |
|
7,644 |
|
|
|
8,163 |
|
Other non-current
liabilities |
|
6,808 |
|
|
|
8,194 |
|
Total liabilities |
$ |
288,663 |
|
|
$ |
436,508 |
|
Shareholders’ equity: |
|
|
|
|
|
|
|
Common Stock: |
|
|
|
|
|
|
|
No par value; 55,000,000 shares authorized 33,145,066 and
32,921,341 issued and outstanding at June 30, 2021 and December 31,
2020, respectively |
|
132,742 |
|
|
|
121,073 |
|
Paid-in capital |
|
6,162 |
|
|
|
7,458 |
|
Accumulated other comprehensive loss |
|
(24,176 |
) |
|
|
(14,982 |
) |
Accumulated earnings |
|
530,482 |
|
|
|
472,782 |
|
Total shareholders’ equity |
|
645,210 |
|
|
|
586,331 |
|
Total liabilities and shareholders’ equity |
$ |
933,873 |
|
|
$ |
1,022,839 |
|
|
|
|
|
|
|
|
|
GENTHERM INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS (In thousands)
(Unaudited)
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Operating Activities: |
|
|
|
|
|
|
|
Net income |
$ |
57,700 |
|
|
$ |
1,551 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
19,571 |
|
|
|
20,488 |
|
Deferred income taxes |
|
(225 |
) |
|
|
(913 |
) |
Non-cash stock based compensation |
|
6,199 |
|
|
|
3,909 |
|
Change in defined benefit pension plans |
|
(669 |
) |
|
|
(278 |
) |
Loss on disposition of property and equipment |
|
496 |
|
|
|
339 |
|
Operating lease expense |
|
4,629 |
|
|
|
3,490 |
|
Gain on sale of patents |
|
— |
|
|
|
(1,978 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
11,647 |
|
|
|
38,410 |
|
Inventory |
|
(17,211 |
) |
|
|
5,292 |
|
Other assets |
|
3,986 |
|
|
|
2,888 |
|
Accounts payable |
|
(289 |
) |
|
|
(17,753 |
) |
Other liabilities |
|
(1,472 |
) |
|
|
(5,218 |
) |
Net cash provided by operating activities |
|
84,362 |
|
|
|
50,227 |
|
Investing Activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(20,669 |
) |
|
|
(7,500 |
) |
Acquisition of intangible assets |
|
— |
|
|
|
(3,141 |
) |
Proceeds from the sale of patents and property and equipment |
|
10 |
|
|
|
1,061 |
|
Cost of technology investment |
|
(5,200 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(25,859 |
) |
|
|
(9,580 |
) |
Financing Activities: |
|
|
|
|
|
|
|
Borrowing of debt |
|
— |
|
|
|
201,193 |
|
Repayments of debt |
|
(143,731 |
) |
|
|
(81,830 |
) |
Cash paid for the repurchase of Common Stock |
|
— |
|
|
|
(9,092 |
) |
Proceeds from the exercise of Common Stock options |
|
6,292 |
|
|
|
6,178 |
|
Cash paid for the cancellation of restricted stock |
|
(2,117 |
) |
|
|
(471 |
) |
Acquisition contingent consideration payment |
|
(69 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
(139,625 |
) |
|
|
115,978 |
|
Foreign currency effect |
|
(360 |
) |
|
|
2,102 |
|
Net (decrease) increase in cash, cash equivalents and restricted
cash |
|
(81,482 |
) |
|
|
158,727 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
268,345 |
|
|
|
52,948 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
186,863 |
|
|
$ |
211,675 |
|
Supplemental disclosure of cash
flow information: |
|
|
|
|
|
|
|
Cash paid (refund) for taxes |
$ |
8,563 |
|
|
$ |
(3,117 |
) |
Cash paid for interest |
$ |
1,455 |
|
|
$ |
1,967 |
|
Gentherm (NASDAQ:THRM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gentherm (NASDAQ:THRM)
Historical Stock Chart
From Apr 2023 to Apr 2024