VAN BUREN TOWNSHIP, Mich.,
Aug. 5, 2015 /PRNewswire/
--
- Solid financial performance
- Sales of $812
million
- Adjusted EBITDA of $60
million; net income of $2.2
billion
- Cash from operations of $31
million
- Secured $660 million of
annualized new business awards in first half of 2015
- Completed sale of ownership interest in Halla Visteon
Climate Control
- Company begins $500 million
accelerated share repurchase program as part of plan to return
$2.5 billion-$2.75 billion of cash to
shareholders by June
2016
- Reduced term loan by $246 million
to $350 million outstanding
- Reaffirmed full-year 2015 guidance for Electronics
and Corporate adjusted EBITDA and adjusted free cash
flow
Visteon Corporation (NYSE:VC) today announced second-quarter
2015 results, reporting sales of $812
million and net income attributable to Visteon of
$2.2 billion, or $49.73 per diluted share, including a
significant gain related to the sale of Visteon's interest in Halla
Visteon Climate Control Corp. (HVCC). As a result of the previously
announced divestiture of the majority of its climate business,
Visteon reclassified a significant portion of climate results to
discontinued operations, and recast prior periods accordingly.
Adjusted EBITDA, a non-GAAP financial measure as defined below,
was $60 million for the second
quarter, compared with $29 million in
the same period last year.
"Visteon continued its momentum in the second quarter with solid
performance in sales, adjusted EBITDA and growth," said
Sachin Lawande, president and CEO,
who joined Visteon on June 29. "As a
result of our strong performance in the first half, we have
reaffirmed full-year guidance."
Lawande added: "With the sale of our 70 percent ownership
interest in Halla Visteon Climate Control on June 9, Visteon is now focused on driving value
for customers and shareholders as a technology-focused enterprise
dedicated to vehicle cockpit electronics and the connected car –
one of the fastest-growing segments in the automotive industry. As
a result of that sale, we expect to deliver significant returns to
our shareholders over the coming months through a series of actions
including stock buybacks and special distributions."
Cash from operating activities in the second quarter, including
discontinued operations, totaled $31
million, consistent with $31
million for the same period in 2014. Adjusted free cash
flow, a non-GAAP financial measure as defined below, was
$33 million for the second
quarter.
Second Quarter in Review
Visteon reported second-quarter sales of $812 million, an increase of $309 million compared with the same quarter last
year. An additional $933 million of
sales was classified as discontinued operations.
Electronics sales totaled $780
million, an increase of $337
million from the second quarter last year. The increase is
primarily attributable to the acquisition of the global automotive
electronics business of Johnson Controls Inc., effective
July 1, 2014. For the Electronics
Product Group, on a regional basis, Asia accounted for 37 percent of sales,
Europe 33 percent, North America 28 percent, and South America 2 percent.
Gross margin for the second quarter of 2015 was $99 million, compared with $57 million a year earlier. Selling, general and
administrative (SG&A) expenses were $65
million, or 8.0 percent of sales, for the second quarter,
compared with $48 million, or 9.5
percent of sales, a year earlier. Year-over-year results for gross
margin and SG&A were both impacted by the Johnson Controls
electronics acquisition. The $42
million increase in gross margin also included higher sales
volume and new business impacts, along with cost efficiencies,
partially offset by the impact of unfavorable currency.
Adjusted EBITDA of $60 million for
the second quarter of 2015, compared with $29 million for the same quarter last year,
primarily reflected the impact of the Johnson Controls electronics
acquisition, favorable volume and new business, and positive cost
performance, partially offset by currency impacts.
For the second quarter of 2015, the company reported net income
attributable to Visteon of $2,208
million, or earnings per share of $49.73 per diluted share. Second-quarter net
income included $2,159 million
related to income from discontinued operations, net of tax; a
$62 million gain from the disposition
of its ownership in Yanfeng Visteon Jinqiao Automotive Trim Systems
Company, Limited; and $30 million of
restructuring, transformation integration and related costs.
Adjusted net income, which excludes these gains and costs, was
$17 million, or $0.38 per diluted share.
Sale of Ownership Interest in Halla Visteon Climate
Control
On June 9, Visteon completed the
previously announced sale of its approximate 70 percent ownership
interest in Halla Visteon Climate Control Corp. (HVCC) to an
affiliate of Hahn & Company – a South
Korea-based private equity company – and Hankook Tire Co.
Ltd., following the approval of Visteon's shareholders at a special
meeting May 18.
Appointment of Sachin Lawande
as President and CEO
On June 10, Visteon announced the
appointment of Sachin Lawande as
president and CEO, effective June 29,
succeeding Timothy D. Leuliette.
Lawande also joined Visteon's board of directors. Lawande is an
accomplished automotive electronics leader who had been with Harman
International Industries since 2005, most recently as president of
the infotainment division, the company's largest with nearly
$3 billion in annual sales.
Share Repurchase Program
On June 16, Visteon entered into
an Accelerated Stock Buyback (ASB) with a third party to purchase
shares of its common stock for an initial payment of
$500 million. The company entered into the ASB agreement as
part of its previously announced capital return program.
Term Loan Reduction
In the second quarter, Visteon reduced its term loan by
$246 million to $300 million
outstanding.
Cash and Debt Balances
As of June 30, 2015, Visteon had
global cash balances totaling $2,866
million. Total debt as of June
30 was $378 million.
For the second quarter of 2015, Visteon generated $31 million of cash from operations, consistent
with $31 million in the same period a
year earlier. Capital expenditures in the quarter were $67 million -- $8
million lower than in the second quarter of 2014. Adjusted
free cash flow was $33 million in the
quarter, compared with a use of cash of $18
million in the second quarter of 2014.
Visteon generated $66 million of
cash from operations related to the Electronics Product Group and
Corporate costs. Electronics capital expenditures totaled
$14 million, and adjusted free cash
flow for Electronics and Corporate totaled $57 million in the quarter.
Full-Year 2015 Outlook
Visteon reaffirmed its full-year 2015 guidance for key financial
metrics. The company projects 2015 sales for the Electronics
Product Group of $3.0
billion. Adjusted EBITDA for the Electronics Product
Group and Corporate costs is projected in the range of $245 million to $265 million. Adjusted free cash
flow, as defined below, for the Electronics Product Group and
Corporate costs is projected in the range of $40 million to $80 million.
About Visteon
Visteon is a global company that designs, engineers and
manufactures innovative cockpit electronics products and connected
car solutions for most of the world's major vehicle manufacturers.
Visteon is a leading provider of driver information and controls,
audio and infotainment, and domain controllers; its brands include
Lightscape®, OpenAir® and SmartCore™. With corporate offices in
Van Buren Township, Michigan,
(U.S.); Shanghai, China; and
Chelmsford, UK; Visteon has more
than 11,000 employees at 50 facilities in 21 countries. Visteon had
sales of $2.6 billion in 2014. Learn
more at www.visteon.com.
Conference Call and Presentation
Today, Wednesday, Aug. 5, at
9 a.m. EDT, the company will host a
conference call for the investment community to discuss the
quarter's results and other related items. The conference call is
available to the general public via a live audio webcast.
The dial-in numbers to participate in the call are:
U.S./Canada:
855-855-4109
Outside U.S./Canada:
706-643-3752
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, the financial
results news release, related presentation materials and other
supplemental information will be accessible through Visteon's
website at www.visteon.com.
A replay of the conference call will be available through the
company's website or by dialing 855-859-2056 (toll-free from the
U.S. and Canada) or 404-537-3406
(international). The conference ID for the phone replay is
85650283. The phone replay will be available for one week following
the conference call.
Forward-looking Information
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including, but not limited to: (1) conditions within
the automotive industry, including (i) the automotive vehicle
production volumes and schedules of our customers, (ii) the
financial condition of our customers and the effects of any
restructuring or reorganization plans that may be undertaken by our
customers or suppliers, including work stoppages, and (iii)
possible disruptions in the supply of commodities to us or our
customers due to financial distress, work stoppages, natural
disasters or civil unrest; (2) our ability to satisfy future
capital and liquidity requirements; including our ability to access
the credit and capital markets at the times and in the amounts
needed and on terms acceptable to us; our ability to comply with
financial and other covenants in our credit agreements; and the
continuation of acceptable supplier payment terms; (3) our ability
to satisfy pension and other post-employment benefit obligations;
(4) our ability to access funds generated by foreign subsidiaries
and joint ventures on a timely and cost-effective basis; (5) our
ability to execute on our transformational plans and cost-reduction
initiatives in the amounts and on the timing contemplated; (6)
general economic conditions, including changes in interest rates,
currency exchange rates and fuel prices; (7) the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations; (8) increases in raw material
and energy costs and our ability to offset or recover these costs,
increases in our warranty, product liability and recall costs or
the outcome of legal or regulatory proceedings to which we are or
may become a party; and (9) those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2014).
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our view only as of the
date of this release, and which we assume no obligation to update.
The financial results presented herein are preliminary and
unaudited; final financial results will be included in the
company's Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2015. New business
wins and rewins do not represent firm orders or firm commitments
from customers, but are based on various assumptions, including the
timing and duration of product launches, vehicle production levels,
customer price reductions and currency exchange rates.
Use of Non-GAAP Financial Information
This press release contains information about Visteon's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
comparable GAAP financial measures for 2015 is not intended to
indicate that Visteon is explicitly or implicitly providing
projections on those GAAP financial measures, and actual results
for such measures are likely to vary from those presented. The
reconciliations include all information reasonably available to the
company at the date of this press release and the adjustments that
management can reasonably predict.
Follow Visteon:
www.twitter.com/visteon
www.youtube.com/visteon
http://blog.visteon.com
www.google.com/+visteon
www.linkedin.com/company/visteon
https://www.facebook.com/VisteonCorporation
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Dollars in
Millions, Except Per Share Data)
(Unaudited)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
June
30
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Sales
|
$
|
812
|
|
|
$
|
503
|
|
|
$
|
1,628
|
|
|
$
|
1,003
|
|
Cost of
sales
|
713
|
|
|
446
|
|
|
1,417
|
|
|
873
|
|
Gross
margin
|
99
|
|
|
57
|
|
|
211
|
|
|
130
|
|
Selling, general and
administrative expenses
|
65
|
|
|
48
|
|
|
123
|
|
|
94
|
|
Restructuring
expense
|
12
|
|
|
13
|
|
|
15
|
|
|
14
|
|
Interest expense,
net
|
6
|
|
|
5
|
|
|
11
|
|
|
11
|
|
Loss on debt
extinguishment
|
5
|
|
|
23
|
|
|
5
|
|
|
23
|
|
Equity in net income
of non-consolidated affiliates
|
12
|
|
|
7
|
|
|
11
|
|
|
7
|
|
Gain on sale of
non-consolidated affiliates
|
62
|
|
|
2
|
|
|
62
|
|
|
2
|
|
Other (income)
expense, net
|
(4)
|
|
|
16
|
|
|
8
|
|
|
22
|
|
Income (loss) from
continuing operations before income taxes
|
89
|
|
|
(39)
|
|
|
122
|
|
|
(25)
|
|
Provision (benefit)
for income taxes
|
24
|
|
|
(2)
|
|
|
33
|
|
|
11
|
|
Net income (loss)
from continuing operations
|
65
|
|
|
(37)
|
|
|
89
|
|
|
(36)
|
|
Income (loss) from
discontinued operations, net of tax
|
2,159
|
|
|
(104)
|
|
|
2,205
|
|
|
(57)
|
|
Net income
(loss)
|
2,224
|
|
|
(141)
|
|
|
2,294
|
|
|
(93)
|
|
Net income
attributable to non-controlling interests
|
16
|
|
|
14
|
|
|
36
|
|
|
43
|
|
Net income (loss)
attributable to Visteon Corporation
|
$
|
2,208
|
|
|
$
|
(155)
|
|
|
$
|
2,258
|
|
|
$
|
(136)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share data:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.34
|
|
|
$
|
(0.89)
|
|
|
$
|
1.76
|
|
|
$
|
(1.04)
|
|
Discontinued operations
|
49.54
|
|
|
(2.46)
|
|
|
49.79
|
|
|
(1.85)
|
|
Basic earnings (loss)
per share attributable to Visteon Corporation
|
$
|
50.88
|
|
|
$
|
(3.35)
|
|
|
$
|
51.55
|
|
|
$
|
(2.89)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.31
|
|
|
$
|
(0.89)
|
|
|
$
|
1.71
|
|
|
$
|
(1.04)
|
|
Discontinued operations
|
48.42
|
|
|
(2.46)
|
|
|
48.58
|
|
|
(1.85)
|
|
Diluted earnings
(loss) per share attributable to Visteon Corporation
|
$
|
49.73
|
|
|
$
|
(3.35)
|
|
|
$
|
50.29
|
|
|
$
|
(2.89)
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
43.4
|
|
|
46.2
|
|
|
43.8
|
|
|
47.1
|
|
Diluted
|
44.4
|
|
|
46.2
|
|
|
44.9
|
|
|
47.1
|
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
2,303
|
|
|
$
|
(107)
|
|
|
$
|
2,323
|
|
|
$
|
(80)
|
|
Comprehensive income
(loss) attributable to Visteon Corporation
|
$
|
2,288
|
|
|
$
|
(131)
|
|
|
$
|
2,296
|
|
|
$
|
(124)
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
June
30
|
|
December
31
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
2,857
|
|
|
$
|
476
|
|
Restricted
cash
|
9
|
|
|
9
|
|
Accounts receivable,
net
|
554
|
|
|
572
|
|
Inventories,
net
|
204
|
|
|
208
|
|
Current assets held
for sale
|
18
|
|
|
1,630
|
|
Other current
assets
|
285
|
|
|
239
|
|
Total current
assets
|
3,927
|
|
|
3,134
|
|
|
|
|
|
Property and
equipment, net
|
338
|
|
|
363
|
|
Investments in
affiliates
|
63
|
|
|
99
|
|
Intangible assets,
net
|
148
|
|
|
156
|
|
Non-current assets
held for sale
|
—
|
|
|
1,425
|
|
Other non-current
assets
|
462
|
|
|
146
|
|
Total
assets
|
$
|
4,938
|
|
|
$
|
5,323
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
29
|
|
|
$
|
29
|
|
Accounts
payable
|
484
|
|
|
513
|
|
Accrued employee
liabilities
|
124
|
|
|
114
|
|
Current liabilities
held for sale
|
11
|
|
|
959
|
|
Other current
liabilities
|
353
|
|
|
217
|
|
Total current
liabilities
|
1,001
|
|
|
1,832
|
|
|
|
|
|
Long-term
debt
|
349
|
|
|
587
|
|
Employee
benefits
|
456
|
|
|
489
|
|
Deferred tax
liabilities
|
36
|
|
|
53
|
|
Non-current
liabilities held for sale
|
—
|
|
|
430
|
|
Other non-current
liabilities
|
246
|
|
|
111
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Stock
warrants
|
2
|
|
|
3
|
|
Additional paid-in
capital
|
1,230
|
|
|
1,246
|
|
Retained
earnings
|
2,919
|
|
|
661
|
|
Accumulated other
comprehensive loss
|
(261)
|
|
|
(299)
|
|
Treasury
stock
|
(1,203)
|
|
|
(747)
|
|
Total Visteon
Corporation stockholders' equity
|
2,688
|
|
|
865
|
|
Non-controlling
interests
|
162
|
|
|
956
|
|
Total
equity
|
2,850
|
|
|
1,821
|
|
Total liabilities and
equity
|
$
|
4,938
|
|
|
$
|
5,323
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
(Dollars in
Millions)
(Unaudited)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
June
30
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
OPERATING
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
2,224
|
|
|
$
|
(141)
|
|
|
$
|
2,294
|
|
|
$
|
(93)
|
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
Gain on Climate
Transaction
|
(2,332)
|
|
|
—
|
|
|
(2,332)
|
|
|
—
|
|
Gain on sale of
non-consolidated affiliates
|
(62)
|
|
|
(2)
|
|
|
(62)
|
|
|
(2)
|
|
Asset impairments and
losses on divestitures
|
2
|
|
|
173
|
|
|
16
|
|
|
173
|
|
Depreciation and
amortization
|
59
|
|
|
64
|
|
|
127
|
|
|
130
|
|
Loss on debt
extinguishment
|
5
|
|
|
23
|
|
|
5
|
|
|
23
|
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
—
|
|
|
7
|
|
|
(2)
|
|
|
5
|
|
Non-cash stock-based
compensation
|
3
|
|
|
3
|
|
|
6
|
|
|
6
|
|
Other non-cash
items
|
3
|
|
|
7
|
|
|
3
|
|
|
7
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
44
|
|
|
12
|
|
|
(18)
|
|
|
(78)
|
|
Inventories
|
(3)
|
|
|
—
|
|
|
(32)
|
|
|
(18)
|
|
Accounts
payable
|
(78)
|
|
|
(110)
|
|
|
32
|
|
|
21
|
|
Accrued income
taxes
|
141
|
|
|
10
|
|
|
142
|
|
|
12
|
|
Other assets and
other liabilities
|
25
|
|
|
(15)
|
|
|
25
|
|
|
(59)
|
|
Net cash provided
from operating activities
|
31
|
|
|
31
|
|
|
204
|
|
|
127
|
|
INVESTING
|
|
|
|
|
|
|
|
Capital
expenditures
|
(67)
|
|
|
(75)
|
|
|
(122)
|
|
|
(127)
|
|
Loan to
non-consolidated affiliate
|
—
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
Proceeds from Climate
Transaction
|
2,664
|
|
|
—
|
|
|
2,664
|
|
|
—
|
|
Proceeds from sale of
non-consolidated affiliates
|
91
|
|
|
25
|
|
|
91
|
|
|
58
|
|
Other business
divestitures and acquisitions
|
(16)
|
|
|
(7)
|
|
|
(24)
|
|
|
(7)
|
|
Other
|
2
|
|
|
6
|
|
|
5
|
|
|
5
|
|
Net cash provided
from (used by) investing activities
|
2,674
|
|
|
(51)
|
|
|
2,604
|
|
|
(71)
|
|
FINANCING
|
|
|
|
|
|
|
|
Short-term debt,
net
|
4
|
|
|
39
|
|
|
(6)
|
|
|
35
|
|
Proceeds from
issuance of debt, net of issuance costs
|
—
|
|
|
590
|
|
|
—
|
|
|
590
|
|
Principal payments on
debt
|
(247)
|
|
|
(3)
|
|
|
(250)
|
|
|
(4)
|
|
Repurchase of
long-term notes
|
—
|
|
|
(419)
|
|
|
—
|
|
|
(419)
|
|
Repurchase of common
stock
|
(500)
|
|
|
(500)
|
|
|
(500)
|
|
|
(500)
|
|
Dividends paid to
non-controlling interests
|
(28)
|
|
|
(29)
|
|
|
(31)
|
|
|
(45)
|
|
Exercised warrants
and stock options
|
9
|
|
|
8
|
|
|
19
|
|
|
9
|
|
Other
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(2)
|
|
Net cash used by
financing activities
|
(763)
|
|
|
(316)
|
|
|
(769)
|
|
|
(336)
|
|
Effect of exchange
rate changes on cash and equivalents
|
8
|
|
|
7
|
|
|
(9)
|
|
|
2
|
|
Net increase
(decrease) in cash and equivalents
|
1,950
|
|
|
(329)
|
|
|
2,030
|
|
|
(278)
|
|
Cash and equivalents
at beginning of period
|
907
|
|
|
1,728
|
|
|
827
|
|
|
1,677
|
|
Cash and equivalents
at end of period
|
$
|
2,857
|
|
|
$
|
1,399
|
|
|
$
|
2,857
|
|
|
$
|
1,399
|
|
1
The Company has combined cash flows from discontinued operations
with cash flows from continuing operations within the operating,
investing and financing categories. As such, cash and
equivalents above include amounts reflected in current assets held
for sale on the Consolidated Balance Sheets.
|
VISTEON CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited, Dollars in Millions)
Adjusted EBITDA: Adjusted EBITDA is presented as a
supplemental measure of the Company's performance that management
believes is useful to investors because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful
in evaluating and comparing the Company's operating activities
across reporting periods. The Company defines Adjusted EBITDA as
net income attributable to the Company, plus net interest expense,
provision for income taxes and depreciation and amortization, as
further adjusted to eliminate the impact of discontinued
operations, equity in net income of non-consolidated affiliates,
net income attributable to non-controlling interests, asset
impairments, gains or losses on divestitures, net restructuring
expenses and other reimbursable costs, non-cash stock-based
compensation expense, certain employee charges and benefits,
reorganization items and other non-operating gains and
losses. Because not all companies use identical calculations,
this presentation of Adjusted EBITDA may not be comparable to
similarly titled measures of other companies.
|
|
|
|
|
|
|
|
|
Electronics
&
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Corp
Only
|
|
June
30
|
|
June
30
|
|
Estimated
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Full Year 2015
*
|
Electronics
|
$
|
75
|
|
|
$
|
50
|
|
|
$
|
170
|
|
|
$
|
107
|
|
|
|
Other
|
—
|
|
|
(3)
|
|
|
(6)
|
|
|
(4)
|
|
|
|
Corporate
|
(15)
|
|
|
(18)
|
|
|
(26)
|
|
|
(31)
|
|
|
|
Adjusted
EBITDA
|
60
|
|
|
29
|
|
|
138
|
|
|
72
|
|
|
$245 -
$265
|
Interest expense,
net
|
6
|
|
|
5
|
|
|
11
|
|
|
11
|
|
|
15
|
Provision (benefit)
for income taxes
|
24
|
|
|
(2)
|
|
|
33
|
|
|
11
|
|
|
55
|
Depreciation and
amortization
|
21
|
|
|
16
|
|
|
42
|
|
|
29
|
|
|
85
|
Restructuring
expense
|
12
|
|
|
13
|
|
|
15
|
|
|
14
|
|
|
20
|
Gain on sale of
non-consolidated affiliates
|
(62)
|
|
|
(2)
|
|
|
(62)
|
|
|
(2)
|
|
|
0
|
Loss on debt
extinguishment
|
5
|
|
|
23
|
|
|
5
|
|
|
23
|
|
|
5
|
Non-cash, stock-based
compensation expense
|
2
|
|
|
3
|
|
|
5
|
|
|
6
|
|
|
11
|
Equity in net income
of non-consolidated affiliates
|
(12)
|
|
|
(7)
|
|
|
(11)
|
|
|
(7)
|
|
|
0
|
Net income
attributable to non-controlling interests
|
16
|
|
|
14
|
|
|
36
|
|
|
43
|
|
|
20
|
Other (income)
expense, net
|
(4)
|
|
|
16
|
|
|
8
|
|
|
22
|
|
|
50
|
Other
|
3
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
3
|
(Income) loss from
discontinued operations, net of tax
|
(2,159)
|
|
|
104
|
|
|
(2,205)
|
|
|
57
|
|
|
0
|
Net income (loss)
attributable to Visteon
|
$
|
2,208
|
|
|
$
|
(155)
|
|
|
$
|
2,258
|
|
|
$
|
(136)
|
|
|
$(19) - $1
|
* Guidance excludes
the other product group and discontinued operations.
|
Adjusted EBITDA is not a recognized term under U.S. GAAP and
does not purport to be a substitute for net income as an indicator
of operating performance or cash flows from operating activities as
a measure of liquidity. Adjusted EBITDA has limitations as an
analytical tool and is not intended to be a measure of cash flow
available for management's discretionary use, as it does not
consider certain cash requirements such as interest payments, tax
payments and debt service requirements. In addition, the Company
uses Adjusted EBITDA (i) as a factor in incentive compensation
decisions, (ii) to evaluate the effectiveness of the Company's
business strategies, and (iii) because the Company's credit
agreements use similar measures for compliance with certain
covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash
flow and Adjusted free cash flow are presented as supplemental
measures of the Company's liquidity that management believes are
useful to investors in analyzing the Company's ability to service
and repay its debt. The Company defines Free cash flow as cash flow
provided from operating activities less capital expenditures. The
Company defines Adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, as further adjusted
for restructuring and transformation-related payments. Free cash
flow and Adjusted free cash flow include amounts associated with
discontinued operations. Because not all companies use identical
calculations, this presentation of Free cash flow and Adjusted free
cash flow may not be comparable to other similarly titled measures
of other companies.
|
|
|
|
|
|
|
|
|
Electronics
&
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Corp
Only
|
|
June
30
|
|
June
30
|
|
Estimated
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Full Year 2015
*
|
Cash provided from
operating activities
|
$
|
31
|
|
|
$
|
31
|
|
|
$
|
204
|
|
|
$
|
127
|
|
|
$60 - $100
|
Capital
expenditures
|
(67)
|
|
|
(75)
|
|
|
(122)
|
|
|
(127)
|
|
|
100
|
Free cash
flow
|
$
|
(36)
|
|
|
$
|
(44)
|
|
|
$
|
82
|
|
|
$
|
—
|
|
|
$(40) - $0
|
Restructuring/transformation-related
payments
|
69
|
|
|
26
|
|
|
90
|
|
|
46
|
|
|
80
|
Adjusted free cash
flow
|
$
|
33
|
|
|
$
|
(18)
|
|
|
$
|
172
|
|
|
$
|
46
|
|
|
$40 - $80
|
* Guidance excludes
the other product group and discontinued operations.
|
Free cash flow and Adjusted free cash flow are not recognized
terms under U.S. GAAP and do not purport to be a substitute for
cash flows from operating activities as a measure of liquidity.
Free cash flow and Adjusted free cash flow have limitations as
analytical tools as they do not reflect cash used to service debt
and do not reflect funds available for investment or other
discretionary uses. In addition, the Company uses Free cash flow
and Adjusted free cash flow (i) as factors in incentive
compensation decisions and (ii) for planning and forecasting future
periods.
Adjusted Net Income and Adjusted Earnings Per Share:
Adjusted net income and Adjusted earnings per share are presented
as supplemental measures that management believes are useful to
investors in analyzing the Company's profitability. The
Company defines Adjusted net income as net income attributable to
Visteon plus net restructuring expenses, reorganization items and
other non-operating gains and losses, as further adjusted to
eliminate the impact of discontinued operations. The Company
defines Adjusted earnings per share as Adjusted net income divided
by diluted shares. Because not all companies use identical
calculations, this presentation of Adjusted net income and Adjusted
earnings per share may not be comparable to other similarly titled
measures of other companies.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
June
30
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Visteon
|
$
|
2,208
|
|
|
$
|
(155)
|
|
|
$
|
2,258
|
|
|
$
|
(136)
|
|
Average shares outstanding, diluted (in millions)
|
44.4
|
|
|
46.2
|
|
|
44.9
|
|
|
47.1
|
|
Diluted earnings
(loss) per share
|
$
|
49.73
|
|
|
$
|
(3.35)
|
|
|
$
|
50.29
|
|
|
$
|
(2.89)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Visteon
|
$
|
2,208
|
|
|
$
|
(155)
|
|
|
$
|
2,258
|
|
|
$
|
(136)
|
|
Restructuring
expense
|
12
|
|
|
13
|
|
|
15
|
|
|
14
|
|
Loss on debt
extinguishment
|
5
|
|
|
23
|
|
|
5
|
|
|
23
|
|
Gain on sale of
non-consolidated affiliates
|
62
|
|
|
2
|
|
|
62
|
|
|
2
|
|
Other (income)
expense, net
|
(4)
|
|
|
16
|
|
|
8
|
|
|
22
|
|
Other
|
17
|
|
|
14
|
|
|
32
|
|
|
34
|
|
Income (loss) from
discontinued operations, net of tax
|
2,159
|
|
|
(104)
|
|
|
2,205
|
|
|
(57)
|
|
Adjusted net
income
|
$
|
17
|
|
|
$
|
13
|
|
|
$
|
51
|
|
|
$
|
12
|
|
Average shares outstanding, diluted (in millions)
|
44.4
|
|
|
46.2
|
|
|
44.9
|
|
|
47.1
|
|
Adjusted earnings per
share
|
$
|
0.38
|
|
|
$
|
0.28
|
|
|
$
|
1.14
|
|
|
$
|
0.25
|
|
Adjusted net income and Adjusted earnings per share are not
recognized terms under U.S. GAAP and do not purport to be a
substitute for profitability. Adjusted net income and Adjusted
earnings per share have limitations as analytical tools as they do
not consider certain restructuring and transaction-related payments
and/or expenses. In addition, the Company uses Adjusted net income
and Adjusted earnings per share for planning and forecasting future
periods.
Logo - http://photos.prnewswire.com/prnh/20001201/DEF008LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/visteon-announces-second-quarter-2015-results-300123754.html
SOURCE Visteon Corporation