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 2020 first-quarter ended January 31, 2020.
First-Quarter 2020
Highlights:
- Revenues were $243.5 million.
- Gross profit was $19.3 million, an increase of 40.9% over prior
year.
- Gross margin of 7.9%, an expansion of 260 basis points over
prior year.
- Net loss was $3.7 million or $0.16 cents per basic share, an
improvement of 20%.
- Adjusted EBITDA was $15.3 million, an increase of 21.4% over
prior year.
- Adjusted EBITDA margin was 6.3%, an expansion of 140 basis
points over prior year.
“We are pleased with a 41% gross margin improvement in the first
quarter. Execution of strategic initiatives are improving
profitability as demonstrated by the expansion of our gross margin
and adjusted EBITDA margin,” said Ramzi Hermiz, president and chief
executive officer. "I am also delighted to announce two additional
manufacturing facilities are now utilizing 100% renewable
electrical energy, bringing our total to five facilities globally
as we make further progress towards our sustainability goals."
"Additionally, we were awarded significant new global business
with luxury European OEMs, reinforcing the strong demand for our
innovative product solutions across the globe. We are working
closely with our customers and suppliers to assess the impact of
the COVID-19 virus, while taking appropriate precautions to ensure
the safety of our employees. The investments that we have made to
enhance our operational flexibility and improve our performance
have positioned us to navigate market cycles and disruptions. We
remain confident in our ability to deliver our original 2020
financial guidance.”
2020 Outlook
Shiloh is maintaining its previously announced 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
9:00 A.M. ET
Shiloh will host a conference call on Tuesday, March 3, 2020 at
9:00 A.M. Eastern Time to discuss Shiloh's first quarter fiscal
2020 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 2020
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 13699642.
The replay will be available until March 24, 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: 1-646-378-2986 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)
increases in pension plan funding requirements; (20) our ability to
derive a substantial portion of our sales from large customers;
(21) the impact of the coronavirus COVID-19 outbreak on operations
and financial results; and (22) 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 January
31,
2020
2019
Net income (loss) per common share
(GAAP)
Basic
$(0.16)
$(0.20)
Tax valuation adjustments
(0.12)
—
Transformation restructuring
0.12
0.10
Amortization of intangibles
0.02
0.02
Legal, professional and other fees
0.02
0.05
Adjusted basic earnings (loss) per share
(non-GAAP)
$(0.12)
$(0.03)
Adjusted EBITDA Reconciliation
Three Months Ended January
31,
2020
2019
Net loss
$(3,680)
$(4,698)
Depreciation and amortization
11,864
11,860
Interest expense (net)
4,350
3,350
Benefit for income taxes
(2,267)
(3,087)
EBITDA (non-GAAP)
10,267
7,425
Transformation restructuring
3,803
3,006
Legal, professional and other fees
659
1,635
Stock compensation
578
545
Adjusted EBITDA (non-GAAP)
$15,307
$12,611
Adjusted EBITDA margin (non-GAAP)
6.3%
4.9%
SHILOH INDUSTRIES,
INC.
CONSOLIDATED BALANCE
SHEETS
(Dollar amounts in
thousands)
January 31, 2020
October 31, 2019
(Unaudited)
ASSETS:
Cash and cash equivalents
$
12,260
$
14,320
Accounts receivable, net
164,767
172,468
Related party accounts receivable
1,519
1,477
Prepaid income taxes
734
1,853
Inventories, net
63,347
63,547
Prepaid expenses
7,926
8,980
Other current assets
15,360
13,354
Total current assets
265,913
275,999
Property, plant and equipment, net
325,079
328,026
Goodwill
22,425
22,395
Intangible assets, net
12,546
13,025
Deferred income taxes
8,538
5,169
Operating lease assets
54,617
—
Other assets
6,481
7,077
Total assets
$
695,599
$
651,691
LIABILITIES AND STOCKHOLDERS’
EQUITY:
Current debt
$
1,885
$
1,975
Accounts payable
138,613
155,754
Current portion of operating lease
liabilities
8,009
—
Other accrued expenses
44,006
50,093
Accrued income taxes
—
316
Total current liabilities
192,513
208,138
Long-term debt
265,195
248,695
Long-term benefit liabilities
23,869
24,147
Deferred income taxes
901
798
Noncurrent operating lease liabilities
46,174
—
Other liabilities
2,207
2,399
Total liabilities
530,859
484,177
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 per share;
5,000,000 shares authorized; no shares issued and outstanding at
January 31, 2020 and October 31, 2019, respectively
—
—
Common stock, par value $0.01 per share;
75,000,000 shares authorized at January 31, 2020 and October 31,
2019; 24,206,392 and 23,790,258 shares issued and outstanding at
January 31, 2020 and October 31, 2019, respectively
242
238
Paid-in capital
117,008
116,436
Retained earnings
112,186
115,866
Accumulated other comprehensive loss,
net
(64,696
)
(65,026
)
Total stockholders’ equity
164,740
167,514
Total liabilities and stockholders’
equity
$
695,599
$
651,691
SHILOH INDUSTRIES,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except
per share data)
(Unaudited)
Three Months Ended January
31,
2020
2019
Net revenues
$
243,486
$
258,933
Cost of sales
224,197
245,242
Gross profit
19,289
13,691
Selling, general & administrative
expenses
16,703
16,085
Amortization of intangible assets
519
521
Restructuring
3,803
3,006
Operating income (loss)
(1,736
)
(5,921
)
Interest expense
4,356
3,355
Interest income
(6
)
(5
)
Other (income) expense, net
(139
)
(1,486
)
Loss before income taxes
(5,947
)
(7,785
)
Benefit for income taxes
(2,267
)
(3,087
)
Net loss
$
(3,680
)
$
(4,698
)
Loss per share:
Basic loss per share
$
(0.16
)
$
(0.20
)
Basic weighted average number of common
shares
23,653
23,385
Diluted loss per share
$
(0.16
)
$
(0.20
)
Diluted weighted average number of common
shares
23,653
23,385
SHILOH INDUSTRIES,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Dollar amounts in
thousands)
(Unaudited)
Three Months Ended January
31,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(3,680
)
$
(4,698
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
11,864
11,860
Amortization of deferred financing
costs
536
297
Restructuring
2,233
1,043
Deferred income taxes
(2,961
)
(3,918
)
Stock-based compensation expense
578
545
(Gain) loss on sale of assets
145
(2,915
)
Loss on marketable securities
—
20
Changes in operating assets and
liabilities:
Accounts receivable, net
5,245
40,283
Inventories, net
(584
)
704
Prepaids and other assets
(1,061
)
1,059
Payables and other liabilities
(21,157
)
(34,138
)
Prepaid and accrued income taxes
1,554
(3,781
)
Net cash (used in) provided by operating
activities
(7,288
)
6,361
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
(11,522
)
(15,661
)
Proceeds from sale of assets
—
10,858
Net cash used in investing activities
(11,522
)
(4,803
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of capital leases
(90
)
(201
)
Proceeds from long-term borrowings
64,200
61,600
Repayments of long-term borrowings
(47,700
)
(68,300
)
Payment of deferred financing costs
(98
)
—
Net cash provided by (used in) financing
activities
16,312
(6,901
)
Effect of foreign currency exchange rate
fluctuations on cash
438
167
Net decrease in cash and cash
equivalents
(2,060
)
(5,176
)
Cash and cash equivalents at beginning of
period
14,320
16,843
Cash and cash equivalents at end of
period
$
12,260
$
11,667
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200303005334/en/
Kevin Doherty investors@shiloh.com 1-646-378-2986
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