VAN BUREN TOWNSHIP, Mich.,
Nov. 5, 2015 /PRNewswire/ --
- Strong financial performance
- Sales of $808
million
- Adjusted EBITDA of $65
million; net income of $5
million
- Cash from operations of $70
million, adjusted free cash flow of $77 million
- Electronics & Corporate performance
- Electronics Sales of $771
million
- Adjusted EBITDA of $67
million
- Cash from operations of $84
million, adjusted free cash flow of $83 million
- Increased 2015 guidance for Electronics and Corporate
sales, adjusted EBITDA and adjusted free cash flow
- Secured $950 million of
average annual new business awards through Sept. 30, amounting to $2.9 billion of lifetime revenue
- $500 million accelerated
share repurchase program commenced in June expected to be completed
by year-end
Visteon Corporation (NYSE: VC) today announced third-quarter
2015 results, reporting sales of $808
million and net income attributable to Visteon of
$5 million, or $0.12 per share. Adjusted EBITDA, a non-GAAP
financial measure as defined below, was $65
million for the third quarter, compared with $30 million in the same period last year.
Adjusted net income, a non-GAAP financial measure as defined below,
was $23 million for the third
quarter, or $0.56 per diluted
share.
"We achieved solid performance in sales and adjusted EBITDA in
the third quarter – our first full quarter as a company focused on
vehicle cockpit electronics – and as a result we have increased our
full-year guidance," said Sachin
Lawande, president and CEO. "We delivered strong cost
performance in the quarter, including ongoing synergies from the
integration of the former Johnson Controls electronics
business."
Lawande added: "Visteon is focused on creating value for
customers and shareholders by improving the cockpit electronics
user experience across product lines that are expected to grow
faster than the overall automotive market. We're well-positioned
with new technology in each of these product lines, which include
instrument clusters, head-up displays, information displays,
infotainment, connected audio and telematics."
Cash from operating activities in the third quarter, including
discontinued operations, totaled $70
million. Adjusted free cash flow, a non-GAAP financial
measure as defined below, was $77
million for the third quarter.
Third Quarter in Review
Visteon reported third-quarter sales of $808 million, an increase of $15 million compared with the same quarter last
year. An additional $16 million of
third-quarter 2015 sales were classified as discontinued
operations.
Electronics sales totaled $771
million, an increase of $11
million from the third quarter of 2014. The increase is
primarily related to higher production volumes and new business,
partially offset by unfavorable currency. For the Electronics
Product Group, on a regional basis, Asia accounted for 37 percent of sales,
Europe 31 percent, North America 30 percent, and South America 2
percent.
Gross margin for the third quarter of 2015 was $105 million, compared with $93 million a year earlier. Selling, general and
administrative (SG&A) expenses were $59
million, or 7.3 percent of sales, for the third quarter,
compared with $70 million, or 8.8
percent of sales, a year earlier. The $12
million increase in gross margin reflected higher sales
volume and new business impacts, along with cost efficiencies,
partially offset by the impact of unfavorable currency and the
non-recurrence of a 2014 $25 million
pension settlement gain. Selling, general and administrative
expenses improved as a percentage of sales in connection with a
targeted cost-reduction effort to streamline activities and realize
synergies from integrating the former Johnson Controls electronics
business.
Adjusted EBITDA of $65 million for
the third quarter of 2015, compared with $30
million for the same quarter last year, primarily reflected
favorable volume and new business, and positive cost performance.
Adjusted EBITDA for the Electronics Product Group, including
Corporate costs, was $67 million,
compared with $37 million for the
third quarter last year.
For the third quarter of 2015, the company reported net income
attributable to Visteon of $5
million, or earnings per share of $0.12 per diluted share. Third-quarter net income
included a loss of $11 million from
discontinued operations, net of tax and $7
million of restructuring, transformation, integration and
related costs. Adjusted net income, which excludes these costs, was
$23 million, or $0.56 per diluted share.
Through the first three quarters of 2015, customers awarded
Visteon average annual new business wins of $950 million, amounting to $2.9 billion of lifetime revenue. Visteon is
targeting full-year new business wins of $1.3 billion, comparable to last year's record
level.
Sale of Berlin Interiors Operation
On Oct. 30, Visteon signed an
agreement to sell its non-core automotive interiors plant in
Berlin, Germany, to APCH
Automotive Plastic Components Holding GmbH (APCH), effective
Dec. 1, 2015. This marks the sale of
Visteon's only remaining interiors operation not covered by the
2014 agreement to divest the majority of the interiors business to
Reydel Automotive Holdings B.V., as Visteon focuses on its
automotive cockpit electronics business.
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. This ASB is expected to be completed by
Dec. 31, 2015. It is part of a
previously announced plan to return $2.5
billion-$2.75 billion of cash to shareholders by
June 2016.
Cash and Debt Balances
As of Sept. 30, 2015, Visteon had
global cash and marketable securities balances totaling
$2,920 million. Total debt as of
Sept. 30, 2015 was $382 million.
For the third quarter of 2015, Visteon generated $70 million of cash from operations, compared
with $53 million in the same period a
year earlier. Capital expenditures in the quarter were $29 million. Adjusted free cash flow was
$77 million in the quarter, compared
with $18 million in the third quarter
of 2014. Cash flows for both periods included results related to
discontinued operations.
Visteon generated $84 million of
cash from operations related to the Electronics Product Group and
Corporate costs. Electronics capital expenditures totaled
$26 million, and adjusted free cash
flow for Electronics and Corporate totaled $83 million in the quarter.
Full-Year 2015 Outlook
Visteon adjusted its full-year 2015 guidance for its key
financial metrics to reflect improved performance. The company
projects 2015 sales for the Electronics Product Group of
$3.05 billion to $3.10 billion.
Adjusted EBITDA for the Electronics Product Group and Corporate
costs is projected in the range of $265
million to $285 million. Adjusted free cash flow, as defined
below, for the Electronics Product Group and Corporate costs is
projected in the range of $135 million to
$165 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 instrument clusters, head-up
displays, information displays, infotainment, connected audio, and
connectivity and telematics; its brands include Lightscape®,
OpenAir® and SmartCore™. Headquartered in Van Buren Township, Michigan, Visteon has
nearly 11,000 employees at 50 facilities in 19 countries. Visteon
had $3.1 billion in electronics sales
over the last 12 months. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, Nov. 5, at
9 a.m. ET, 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
60066660. 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 Sept. 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
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
808
|
|
|
$
|
793
|
|
|
$
|
2,436
|
|
|
$
|
1,798
|
|
Cost of
sales
|
703
|
|
|
700
|
|
|
2,120
|
|
|
1,575
|
|
Gross
margin
|
105
|
|
|
93
|
|
|
316
|
|
|
223
|
|
Selling, general and
administrative expenses
|
59
|
|
|
70
|
|
|
182
|
|
|
164
|
|
Restructuring
expense
|
3
|
|
|
8
|
|
|
18
|
|
|
22
|
|
Interest expense,
net
|
2
|
|
|
4
|
|
|
13
|
|
|
15
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
5
|
|
|
23
|
|
Equity in net (loss)
income of non-consolidated affiliates
|
(3)
|
|
|
(2)
|
|
|
8
|
|
|
5
|
|
Gain on sale of
non-consolidated affiliates
|
—
|
|
|
—
|
|
|
62
|
|
|
2
|
|
Other expense,
net
|
7
|
|
|
20
|
|
|
15
|
|
|
42
|
|
Income (loss) from
continuing operations before income taxes
|
31
|
|
|
(11)
|
|
|
153
|
|
|
(36)
|
|
Provision for income
taxes
|
10
|
|
|
10
|
|
|
43
|
|
|
21
|
|
Net income (loss)
from continuing operations
|
21
|
|
|
(21)
|
|
|
110
|
|
|
(57)
|
|
(Loss) income from
discontinued operations, net of tax
|
(11)
|
|
|
22
|
|
|
2,194
|
|
|
(35)
|
|
Net income
(loss)
|
10
|
|
|
1
|
|
|
2,304
|
|
|
(92)
|
|
Net income
attributable to non-controlling interests
|
5
|
|
|
22
|
|
|
41
|
|
|
65
|
|
Net income (loss)
attributable to Visteon Corporation
|
$
|
5
|
|
|
$
|
(21)
|
|
|
$
|
2,263
|
|
|
$
|
(157)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.39
|
|
|
$
|
(0.59)
|
|
|
$
|
2.17
|
|
|
$
|
(1.62)
|
|
Discontinued operations
|
(0.27)
|
|
|
0.11
|
|
|
50.58
|
|
|
(1.78)
|
|
Basic earnings (loss)
per share attributable to Visteon Corporation
|
$
|
0.12
|
|
|
$
|
(0.48)
|
|
|
$
|
52.75
|
|
|
$
|
(3.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.38
|
|
|
$
|
(0.59)
|
|
|
$
|
2.12
|
|
|
$
|
(1.62)
|
|
Discontinued operations
|
(0.26)
|
|
|
0.11
|
|
|
49.43
|
|
|
(1.78)
|
|
Diluted earnings
(loss) per share attributable to Visteon Corporation
|
$
|
0.12
|
|
|
$
|
(0.48)
|
|
|
$
|
51.55
|
|
|
$
|
(3.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
40.5
|
|
|
44.0
|
|
|
42.9
|
|
|
46.2
|
|
Diluted
|
41.4
|
|
|
44.0
|
|
|
43.9
|
|
|
46.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
$
|
(18)
|
|
|
$
|
(105)
|
|
|
$
|
2,305
|
|
|
$
|
(185)
|
|
Comprehensive (loss)
income attributable to Visteon Corporation
|
$
|
(19)
|
|
|
$
|
(112)
|
|
|
$
|
2,277
|
|
|
$
|
(236)
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
|
September
30
|
|
|
December
31
|
|
|
2015
|
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
Cash and
equivalents
|
$
|
2,860
|
|
|
$
|
476
|
|
Short-term
investments
|
52
|
|
|
—
|
|
Restricted
cash
|
8
|
|
|
9
|
|
Accounts receivable,
net
|
554
|
|
|
531
|
|
Inventories,
net
|
202
|
|
|
208
|
|
Current assets held
for sale
|
17
|
|
|
1,660
|
|
Other current
assets
|
198
|
|
|
250
|
|
Total current
assets
|
3,891
|
|
|
3,134
|
|
|
|
|
|
|
|
Property and
equipment, net
|
341
|
|
|
363
|
|
Investments in
affiliates
|
58
|
|
|
99
|
|
Intangible assets,
net
|
141
|
|
|
156
|
|
Non-current assets
held for sale
|
—
|
|
|
1,426
|
|
Other non-current
assets
|
435
|
|
|
145
|
|
Total
assets
|
$
|
4,866
|
|
|
$
|
5,323
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
33
|
|
|
$
|
29
|
|
Accounts
payable
|
506
|
|
|
485
|
|
Accrued employee
liabilities
|
122
|
|
|
114
|
|
Current liabilities
held for sale
|
11
|
|
|
987
|
|
Other current
liabilities
|
287
|
|
|
217
|
|
Total current
liabilities
|
959
|
|
|
1,832
|
|
|
|
|
|
|
|
Long-term
debt
|
349
|
|
|
587
|
|
Employee
benefits
|
453
|
|
|
489
|
|
Deferred tax
liabilities
|
34
|
|
|
53
|
|
Non-current
liabilities held for sale
|
—
|
|
|
432
|
|
Other non-current
liabilities
|
223
|
|
|
109
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Stock
warrants
|
1
|
|
|
3
|
|
Additional paid-in
capital
|
1,244
|
|
|
1,246
|
|
Retained
earnings
|
2,924
|
|
|
661
|
|
Accumulated other
comprehensive loss
|
(285)
|
|
|
(299)
|
|
Treasury
stock
|
(1,200)
|
|
|
(747)
|
|
Total Visteon
Corporation stockholders' equity
|
2,685
|
|
|
865
|
|
Non-controlling
interests
|
163
|
|
|
956
|
|
Total
equity
|
2,848
|
|
|
1,821
|
|
Total liabilities and
equity
|
$
|
4,866
|
|
|
$
|
5,323
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
(Dollars in
Millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
OPERATING
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
10
|
|
|
$
|
1
|
|
|
$
|
2,304
|
|
|
$
|
(92)
|
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Climate
Transaction
|
—
|
|
|
—
|
|
|
(2,332)
|
|
|
—
|
|
Gain on sale of
non-consolidated affiliates
|
—
|
|
|
—
|
|
|
(62)
|
|
|
(2)
|
|
Asset impairments and
losses on divestitures
|
1
|
|
|
15
|
|
|
17
|
|
|
188
|
|
Depreciation and
amortization
|
20
|
|
|
75
|
|
|
147
|
|
|
205
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
5
|
|
|
23
|
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
2
|
|
|
2
|
|
|
—
|
|
|
7
|
|
Pension settlement
gain
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(25)
|
|
Non-cash stock-based
compensation
|
1
|
|
|
1
|
|
|
7
|
|
|
7
|
|
Other non-cash
items
|
1
|
|
|
7
|
|
|
4
|
|
|
14
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
11
|
|
|
83
|
|
|
(7)
|
|
|
5
|
|
Inventories
|
3
|
|
|
(15)
|
|
|
(29)
|
|
|
(33)
|
|
Accounts
payable
|
16
|
|
|
(79)
|
|
|
48
|
|
|
(58)
|
|
Accrued income
taxes
|
(7)
|
|
|
2
|
|
|
135
|
|
|
14
|
|
Other assets and
other liabilities
|
12
|
|
|
(14)
|
|
|
37
|
|
|
(73)
|
|
Net cash provided
from operating activities
|
70
|
|
|
53
|
|
|
274
|
|
|
180
|
|
INVESTING
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(29)
|
|
|
(82)
|
|
|
(151)
|
|
|
(209)
|
|
Acquisition of
business, net of cash acquired
|
—
|
|
|
(308)
|
|
|
—
|
|
|
(308)
|
|
Short-term
investments
|
(52)
|
|
|
—
|
|
|
(52)
|
|
|
—
|
|
Loan to
non-consolidated affiliate
|
—
|
|
|
—
|
|
|
(10)
|
|
|
—
|
|
Proceeds from Climate
Transaction
|
—
|
|
|
—
|
|
|
2,664
|
|
|
—
|
|
Proceeds from sale of
non-consolidated affiliates
|
—
|
|
|
4
|
|
|
91
|
|
|
62
|
|
Other business
divestitures and acquisitions
|
5
|
|
|
—
|
|
|
(19)
|
|
|
—
|
|
Other
|
3
|
|
|
(4)
|
|
|
8
|
|
|
(6)
|
|
Net cash (used by)
provided from investing activities
|
(73)
|
|
|
(390)
|
|
|
2,531
|
|
|
(461)
|
|
FINANCING
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt,
net
|
5
|
|
|
7
|
|
|
(1)
|
|
|
42
|
|
Proceeds from
issuance of debt, net of issuance costs
|
—
|
|
|
28
|
|
|
—
|
|
|
618
|
|
Principal payments on
debt
|
—
|
|
|
(12)
|
|
|
(250)
|
|
|
(16)
|
|
Repurchase of
long-term notes
|
—
|
|
|
—
|
|
|
—
|
|
|
(419)
|
|
Repurchase of common
stock
|
—
|
|
|
—
|
|
|
(500)
|
|
|
(500)
|
|
Dividends paid to
non-controlling interests
|
—
|
|
|
(39)
|
|
|
(31)
|
|
|
(84)
|
|
Exercised warrants
and stock options
|
5
|
|
|
8
|
|
|
24
|
|
|
17
|
|
Other
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(2)
|
|
Net cash provided
from (used by) financing activities
|
10
|
|
|
(8)
|
|
|
(759)
|
|
|
(344)
|
|
Effect of exchange
rate changes on cash and equivalents
|
(4)
|
|
|
(19)
|
|
|
(13)
|
|
|
(17)
|
|
Net increase
(decrease) in cash and equivalents
|
3
|
|
|
(364)
|
|
|
2,033
|
|
|
(642)
|
|
Cash and equivalents
at beginning of period
|
2,857
|
|
|
1,399
|
|
|
827
|
|
|
1,677
|
|
Cash and equivalents
at end of period
|
$
|
2,860
|
|
|
$
|
1,035
|
|
|
$
|
2,860
|
|
|
$
|
1,035
|
|
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 (loss) of non-consolidated
affiliates, net income attributable to non-controlling interests,
gains or losses on divestitures, net restructuring expenses and
other reimbursable costs, loss on debt extinguishment, 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.
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
Total
Visteon
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Electronics
|
$
|
80
|
|
|
$
|
50
|
|
|
$
|
250
|
|
|
$
|
157
|
|
Other
|
(2)
|
|
|
(7)
|
|
|
(8)
|
|
|
(11)
|
|
Corporate
|
(13)
|
|
|
(13)
|
|
|
(39)
|
|
|
(44)
|
|
Adjusted
EBITDA
|
65
|
|
|
30
|
|
|
203
|
|
|
102
|
|
Interest expense,
net
|
2
|
|
|
4
|
|
|
13
|
|
|
15
|
|
Provision for income
taxes
|
10
|
|
|
10
|
|
|
43
|
|
|
21
|
|
Depreciation and
amortization
|
20
|
|
|
25
|
|
|
62
|
|
|
54
|
|
Restructuring
expense
|
3
|
|
|
8
|
|
|
18
|
|
|
22
|
|
Gain on sale of
non-consolidated affiliates
|
—
|
|
|
—
|
|
|
(62)
|
|
|
(2)
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
5
|
|
|
23
|
|
Non-cash, stock-based
compensation expense
|
2
|
|
|
3
|
|
|
7
|
|
|
9
|
|
Equity in net loss
(income) of non-consolidated affiliates
|
3
|
|
|
2
|
|
|
(8)
|
|
|
(5)
|
|
Net income
attributable to non-controlling interests
|
5
|
|
|
22
|
|
|
41
|
|
|
65
|
|
Other expense,
net
|
7
|
|
|
20
|
|
|
15
|
|
|
42
|
|
Pension settlement
gain
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(25)
|
|
Other
|
(3)
|
|
|
4
|
|
|
—
|
|
|
5
|
|
Loss (income) from
discontinued operations, net of tax
|
11
|
|
|
(22)
|
|
|
(2,194)
|
|
|
35
|
|
Net income (loss)
attributable to Visteon
|
$
|
5
|
|
|
$
|
(21)
|
|
|
$
|
2,263
|
|
|
$
|
(157)
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30
|
|
|
September
30
|
|
|
Estimated
|
Electronics and
corporate
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Full
Year
2015
*
|
Adjusted
EBITDA
|
$
|
67
|
|
|
$
|
37
|
|
|
$
|
211
|
|
|
$
|
113
|
|
|
$265 -
$285
|
Interest expense,
net
|
2
|
|
|
4
|
|
|
13
|
|
|
15
|
|
|
15
|
Provision for income
taxes
|
10
|
|
|
15
|
|
|
43
|
|
|
26
|
|
|
60
|
Depreciation and
amortization
|
20
|
|
|
21
|
|
|
61
|
|
|
44
|
|
|
80
|
Restructuring
expense
|
3
|
|
|
4
|
|
|
18
|
|
|
6
|
|
|
35
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
5
|
|
|
23
|
|
|
5
|
Non-cash, stock-based
compensation expense
|
2
|
|
|
3
|
|
|
7
|
|
|
9
|
|
|
9
|
Equity in net loss of
non-consolidated affiliates
|
3
|
|
|
2
|
|
|
4
|
|
|
3
|
|
|
6
|
Net income
attributable to non-controlling interests
|
5
|
|
|
5
|
|
|
17
|
|
|
18
|
|
|
20
|
Other expense,
net
|
7
|
|
|
17
|
|
|
29
|
|
|
31
|
|
|
40
|
Other
|
(3)
|
|
|
(6)
|
|
|
—
|
|
|
(6)
|
|
|
—
|
Net income
(loss)
|
$
|
18
|
|
|
$
|
(28)
|
|
|
$
|
14
|
|
|
$
|
(56)
|
|
|
$(5) - $15
|
Loss (income) from
discontinued operations, net of tax
|
11
|
|
|
(22)
|
|
|
(2,194)
|
|
|
35
|
|
|
|
All other loss
(income), net of tax
|
2
|
|
|
15
|
|
|
(55)
|
|
|
66
|
|
|
|
Net income (loss)
attributable to Visteon
|
$
|
5
|
|
|
$
|
(21)
|
|
|
$
|
2,263
|
|
|
$
|
(157)
|
|
|
|
* 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.
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
Total
Visteon
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Cash provided from
operating activities - Electronics and corporate
|
$
|
84
|
|
|
$
|
7
|
|
|
$
|
162
|
|
|
$
|
(44)
|
|
Cash provided from
operating activities - discontinued operations and other
|
(14)
|
|
|
46
|
|
|
112
|
|
|
224
|
|
Cash provided from
operating activities total Visteon
|
$
|
70
|
|
|
$
|
53
|
|
|
$
|
274
|
|
|
$
|
180
|
|
Capital
expenditures
|
(29)
|
|
|
(82)
|
|
|
(151)
|
|
|
(209)
|
|
Free cash
flow
|
$
|
41
|
|
|
$
|
(29)
|
|
|
$
|
123
|
|
|
$
|
(29)
|
|
Restructuring/transformation-related
payments
|
36
|
|
|
47
|
|
|
126
|
|
|
93
|
|
Adjusted free cash
flow
|
$
|
77
|
|
|
$
|
18
|
|
|
$
|
249
|
|
|
$
|
64
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30
|
|
|
September
30
|
|
|
Estimated
|
Electronics and
corporate
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Full
Year
2015
*
|
Cash provided from
operating activities
|
$
|
84
|
|
|
$
|
7
|
|
|
$
|
162
|
|
|
$
|
(44)
|
|
|
$150 -
$180
|
Capital
expenditures
|
(26)
|
|
|
(23)
|
|
|
(63)
|
|
|
(56)
|
|
|
95
|
Free cash
flow
|
$
|
58
|
|
|
$
|
(16)
|
|
|
$
|
99
|
|
|
$
|
(100)
|
|
|
$55 - $85
|
Restructuring/transformation-related
payments
|
25
|
|
|
21
|
|
|
47
|
|
|
47
|
|
|
80
|
Adjusted free cash
flow
|
$
|
83
|
|
|
$
|
5
|
|
|
$
|
146
|
|
|
$
|
(53)
|
|
|
$135 -
$165
|
* 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
|
|
|
Nine Months
Ended
|
|
|
September
30
|
|
|
September
30
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Visteon
|
$
|
5
|
|
|
$
|
(21)
|
|
|
$
|
2,263
|
|
|
$
|
(157)
|
|
Average shares outstanding, diluted (in millions)
|
41.4
|
|
|
44.0
|
|
|
43.9
|
|
|
46.2
|
|
Diluted earnings
(loss) per share
|
$
|
0.12
|
|
|
$
|
(0.48)
|
|
|
$
|
51.55
|
|
|
$
|
(3.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Visteon
|
$
|
5
|
|
|
$
|
(21)
|
|
|
$
|
2,263
|
|
|
$
|
(157)
|
|
Restructuring
expense
|
3
|
|
|
8
|
|
|
18
|
|
|
22
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
5
|
|
|
23
|
|
Gain on sale of
non-consolidated affiliates
|
—
|
|
|
—
|
|
|
62
|
|
|
2
|
|
Other expense,
net
|
7
|
|
|
20
|
|
|
15
|
|
|
42
|
|
Other
|
(3)
|
|
|
(2)
|
|
|
29
|
|
|
32
|
|
(Loss) income from
discontinued operations, net of tax
|
(11)
|
|
|
22
|
|
|
2,194
|
|
|
(35)
|
|
Adjusted net income
(loss)
|
$
|
23
|
|
|
$
|
(17)
|
|
|
$
|
74
|
|
|
$
|
(5)
|
|
Average shares outstanding, diluted (in millions)
|
41.4
|
|
|
44.0
|
|
|
43.9
|
|
|
46.2
|
|
Adjusted earnings
(loss) per share
|
$
|
0.56
|
|
|
$
|
(0.39)
|
|
|
$
|
1.69
|
|
|
$
|
(0.11)
|
|
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.
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SOURCE Visteon Corporation