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 second-quarter ended
April 30, 2019.
Second Quarter 2019
Highlights:
- Revenues were $273.4 million.
- Gross profit was $28.7 million with a
gross margin of 10.5%.
- Net income was $1.1 million or 5 cents
per diluted share.
- Adjusted earnings per diluted share was
24 cents, consistent with the second quarter of 2018.
- Adjusted EBITDA was $23.3 million, an
increase of 14.8% year-over-year.
- Adjusted EBITDA margin was 8.5%, an
expansion of 170 basis points year-over-year.
"We made significant progress increasing our profitability as we
continue to execute exciting new launches of products containing
our innovative and leading technology," said Ramzi Hermiz,
president and chief executive officer. "These launches provide
Shiloh with recurring revenue streams and strengthen our product
mix. We are also excited about our new business awards of
approximately $300 million won in the first half of our fiscal year
and remain optimistic despite market uncertainties. We expect our
preemptive actions and restructuring initiatives will continue to
mitigate market softness and contribute to our profitability. As we
look toward the second half, we expect to deliver full year
guidance and are raising the mid-point of our adjusted EBITDA
range."
2019 Outlook
Shiloh is maintaining its previously announced 2019 guidance for
revenue to range from $1,000 million to $1,150 million and
tightening the range of adjusted EBITDA to $65 million to $70
million from $62 million to $70 million.
Shiloh to Host Conference Call Today at
8:00 A.M. ET
Shiloh will host a conference call on Monday, June 10, 2019
at 8:00 A.M. Eastern Time to discuss Shiloh's second 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 second 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 July 1, 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 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 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 MonthsEnded April
30,
Six MonthsEnded April
30,
2019 2018 2019 2018 Net
income (loss) per common share (GAAP) Basic $ 0.05 $ 0.17 $ (0.15 )
$ 0.38 Tax Cuts and Jobs Act, impact — — — (0.14 ) Restructuring
0.15 0.05 0.25 0.10 Amortization of intangibles 0.02 0.02 0.03 0.04
Legal and professional fees 0.02 — 0.07
0.01 Adjusted basic earnings (loss) per share
(non-GAAP) $ 0.24 $ 0.24 $ 0.20
$ 0.39
Adjusted EBITDA
Reconciliation
Three MonthsEnded April
30,
Six MonthsEnded April
30,
2019 2018 2019 2018 Net
income (loss) $ 1,112 $ 4,025 $ (3,586 ) $ 8,883 Depreciation and
amortization 11,498 11,298 23,358 21,414 Interest expense 3,847
2,642 7,197 4,977 Provision (benefit) for income taxes 1,448
218 (1,639 ) (2,840 ) EBITDA
(non-GAAP) 17,905 18,183 25,330 32,434 Restructuring 4,460 1,483
7,466 2,997 Legal and professional fees 461 83 2,096 367 Stock
compensation 445 526 990
1,042 Adjusted EBITDA (non-GAAP) $ 23,271 $ 20,275 $
35,882 $ 36,840 Adjusted EBITDA margin (non-GAAP)
8.5 % 6.8 % 6.7 %
6.8 %
SHILOH INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
April 30, 2019
October 31, 2018
(Unaudited) ASSETS: Cash and cash equivalents
$ 17,660 $ 16,843 Accounts receivable, net 192,125 209,733 Related
party accounts receivable 2,306 996 Prepaid income taxes 1,898
1,391 Inventories, net 67,323 71,412 Prepaid expenses 10,083 10,478
Other current assets 8,838 22,124 Total current
assets 300,233 332,977 Property, plant and equipment, net 329,359
316,176 Goodwill 27,421 27,376 Intangible assets, net 13,973 14,939
Deferred income taxes 5,734 5,665 Other assets 6,470 12,542
Total assets $ 683,190 $ 709,675
LIABILITIES AND STOCKHOLDERS’ EQUITY: Current debt $ 484 $
1,327 Accounts payable 180,793 177,400 Other accrued expenses
39,405 63,031 Accrued income taxes 90 1,874 Total
current liabilities 220,772 243,632 Long-term debt 247,597 245,351
Long-term benefit liabilities 15,677 15,553 Deferred income taxes
801 2,894 Other liabilities 3,190 2,723 Total
liabilities 488,037 510,153 Commitments and
contingencies Stockholders’ equity: Preferred stock, $0.01 per
share; 5,000,000 shares authorized; no shares issued and
outstanding at April 30, 2019 and October 31, 2018, respectively —
— Common stock, par value $0.01 per share; 75,000,000 and
50,000,000 shares authorized at April 30, 2019 and October 31,
2018, respectively; 23,762,075 and 23,417,107 shares issued and
outstanding at April 30, 2019 and October 31, 2018, respectively
238 234 Paid-in capital 115,391 114,405 Retained earnings 132,227
135,813 Accumulated other comprehensive loss, net (52,703 ) (50,930
) Total stockholders’ equity 195,153 199,522 Total
liabilities and stockholders’ equity $ 683,190 $ 709,675
SHILOH INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts in thousands, except per share
data)
Three Months Ended April 30,
Six Months Ended April 30, 2019 2018
2019 2018 (Unaudited)
(Unaudited) (Unaudited) (Unaudited) Net
revenues $ 273,370 $ 297,340 $ 532,303 $ 545,006 Cost of sales
244,691 265,837 489,933 485,613 Gross
profit 28,679 31,503 42,370 59,393 Selling, general &
administrative expenses 16,879 22,146 32,964 43,386 Amortization of
intangible assets 519 595 1,040 1,160 Restructuring 4,460
1,483 7,466 2,997 Operating income 6,821 7,279
900 11,850 Interest expense 3,848 2,645 7,203 4,985 Interest income
(1 ) (3 ) (6 ) (8 ) Other (income) expense, net 414 394
(1,072 ) 830 Income (loss) before income taxes 2,560
4,243 (5,225 ) 6,043 Provision (benefit) for income taxes 1,448
218 (1,639 ) (2,840 ) Net income (loss) $ 1,112
$ 4,025 $ (3,586 ) $ 8,883 Income (loss) per
share: Basic earnings (loss) per share $ 0.05 $ 0.17
$ (0.15 ) $ 0.38 Basic weighted average number of common
shares 23,516 23,222 23,450 23,164
Diluted earnings (loss) per share $ 0.05 $ 0.17 $
(0.15 ) $ 0.38 Diluted weighted average number of common
shares 23,559 23,357 23,450 23,311
SHILOH INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Dollar amounts in thousands)
Six Months Ended April 30, 2019
2018 (Unaudited) (Unaudited) CASH FLOWS FROM
OPERATING ACTIVITIES: Net income (loss) $ (3,586 ) $ 8,883
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization 23,358 21,414
Amortization of deferred financing costs 596 621 Restructuring
1,272 581 Deferred income taxes (2,739 ) (2,949 ) Stock-based
compensation expense 990 1,042 (Gain) loss on sale of assets (4,156
) 60 Loss on marketable securities 25 — Changes in operating assets
and liabilities: Accounts receivable, net 25,456 2,294 Inventories,
net 7,196 1,287 Prepaids and other assets 2,432 (4,445 ) Payables
and other liabilities (33,669 ) (7,286 ) Prepaid and accrued income
taxes (4,419 ) (1,442 ) Net cash provided by operating activities
12,756 20,060 CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (33,248 ) (23,772 ) Acquisitions, net of cash
required — (62,481 ) Derivative settlements 5,855 — Proceeds from
sale of assets 12,339 70 Net cash used in investing
activities (15,054 ) (86,183 ) CASH FLOWS FROM FINANCING
ACTIVITIES: Payment of capital leases (370 ) (448 ) Proceeds from
long-term borrowings 140,700 174,900 Repayments of long-term
borrowings (138,200 ) (100,161 ) Payment of deferred financing
costs — (103 ) Proceeds from exercise of stock options — 33
Net cash provided by financing activities 2,130 74,221
Effect of foreign currency exchange rate fluctuations on cash 985
779 Net increase in cash and cash equivalents 817
8,877 Cash and cash equivalents at beginning of period 16,843
8,736 Cash and cash equivalents at end of period $
17,660 $ 17,613
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version on businesswire.com: https://www.businesswire.com/news/home/20190610005203/en/
Kevin Doherty330-558-2601investors@shiloh.com
Shiloh Industries (NASDAQ:SHLO)
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