VAN BUREN TOWNSHIP, Mich.,
Oct. 26, 2017 /PRNewswire/
--
- Delivered strong financial performance
-
- Sales of $765
million
- Net income of $43
million
- Adjusted EBITDA of $83
million
- Increased China domestic
sales 22 percent year-over-year, excluding impact of
currency
- Won $4.6 billion in new
business year-to-date, up 12 percent over prior year
-
- First Phoenix™ infotainment win
- Audio/Infotainment new business wins grew over 150
percent to $1.5
billion
- China new business wins
at $1.2 billion, 25 percent of
total
- Executed $170 million of
share repurchases year-to-date
Visteon Corporation (NYSE: VC) today announced third-quarter
2017 results, reporting sales of $765
million, compared with $770
million in the third quarter of 2016. Third-quarter net
income attributable to Visteon was $43
million or $1.35 per diluted
share for 2017, compared with $28
million or $0.81 per diluted
share for 2016.
Third-quarter Electronics sales were $765
million, compared with $749
million for the same period in 2016. Electronics
third-quarter net income was $43
million or $1.35 per diluted
share for 2017, compared with $38
million or $1.10 per diluted
share for 2016.
Electronics adjusted EBITDA, a non-GAAP financial measure as
defined below, was $83 million for
the third quarter, compared with $75
million in the same period last year. Electronics adjusted
net income, a non-GAAP financial measure as defined below, was
$45 million for the third quarter or
$1.42 per diluted share, compared
with $38 million or $1.10 per diluted share in the third quarter of
2016.
On a year-to-date basis through the third quarter, global
vehicle manufacturers awarded Visteon new business of $4.6 billion in lifetime revenue. The ongoing
backlog, defined as cumulative remaining life-of-program booked
sales, was $18.0 billion as of
Sept. 30, 2017, up from $16.5 billion at the end of 2016.
"We continued our momentum in the third quarter with very solid
performance, including improved year-over-year Electronics sales
and adjusted EBITDA," said Visteon President and CEO Sachin Lawande. "This marks our 11th consecutive
quarter of year-over-year improvement in adjusted EBITDA margin,
underscoring the strength of our technology and our discipline in
managing operational costs."
Lawande added: "New business wins remained strong, highlighted
by our first Phoenix™ infotainment win set to launch in 2020.
Overall, we grew our Audio/Infotainment wins by over 150 percent
year-to-date compared with the prior year. Based on our overall new
business wins, we are on track to meet our long-term growth
targets."
Third Quarter in Review
Visteon Corporation
Third-quarter sales were $765
million, compared with $770
million for the same period in 2016. The $5 million decrease is primarily related to the
exit of other operations, partially offset by higher Electronics
production volumes, new product launches and favorable
currency.
Gross margin was $116 million,
compared with $105 million a year
earlier. The $11 million increase
reflected higher gross margin related to the Electronics Product
Group. Selling, general and administrative expenses were
$54 million for the third quarter of
2017, compared with $53 million for
the third quarter of 2016.
For the third quarter of 2017, the company reported net income
attributable to Visteon of $43
million or $1.35 per diluted
share, compared with $28 million or
$0.81 per diluted share for the same
period in 2016. The $15 million
increase in net income includes improved gross margin and the
non-recurrence of charges associated with other operations divested
in 2016, partially offset by an increase in income taxes and the
non-recurrence of 2016 discontinued operations income.
Electronics Product Group
Sales totaled $765 million and
$749 million during the third quarter
of 2017 and 2016, respectively, for an increase of $16 million, resulting from new product launches
and favorable currency movements, partially offset by customer
pricing reductions. On a regional basis, Asia accounted for 42 percent of sales,
Europe 30 percent, North America 26 percent, and South America 2 percent.
Gross margin for the third quarter of 2017 was $116 million, compared with $105 million a year earlier. The $11 million increase reflected the impact of
higher sales volume, material and engineering cost efficiencies,
and favorable currency, partially offset by customer pricing and
unfavorable product mix.
Adjusted EBITDA for the Electronics Product Group was
$83 million for the third quarter of
2017, compared with $75 million for
the same quarter last year. The improvement was primarily driven by
favorable cost performance including material and engineering cost
efficiencies, partially offset by customer pricing and unfavorable
product mix. Adjusted EBITDA margin was 10.8 percent for the third
quarter of 2017, 8 basis points higher than the prior year.
For the third quarter of 2017, net income was $43 million or $1.35 per diluted share, compared with net income
of $38 million or $1.10 per diluted share for the same period in
2016. Third-quarter 2017 restructuring charges, partially offset by
legacy operations benefits, reduced net income. Adjusted net
income, which excludes these items, was $45
million or $1.42 per diluted
share for the third quarter of 2017, compared with $38 million or $1.10 per diluted share for the same period in
2016.
Other Operations
By the end of 2016, Visteon exited its other operations,
consisting of climate operations in South
America and South Africa.
The third quarter of 2016 included sales of $21 million and a net loss of $13 million.
Cash and Debt Balances
As of Sept. 30, 2017, Visteon had
cash and equivalents totaling $735
million. Total debt as of Sept.
30 was $391 million.
For the third quarter of 2017, cash from operations was
$45 million and capital expenditures
were $22 million. Total Visteon
adjusted free cash flow, as defined below, for the third quarter of
2017 was $33 million, compared with
$25 million during the third quarter
of 2016. Year-to-date, adjusted free cash flow was $90 million.
Share Repurchases
During the first nine months of the year, the company
repurchased 1,741,979 shares at an average price of $97.59. A total of $230
million remains available under the company's share
repurchase authorization. As of Sept. 30,
2017, the company had 31.7 million diluted shares of common
stock outstanding.
Full-Year 2017 Outlook
Visteon updated its full-year 2017 guidance with sales in the
range of $3.12 billion to $3.16
billion, adjusted EBITDA in the range of $360 million to $370 million, and adjusted free
cash flow in the range of $170 million to
$180 million.
About Visteon
Visteon is a global technology 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,
audio systems, SmartCore™ cockpit domain controllers, and vehicle
connectivity. Visteon also supplies embedded multimedia and
smartphone connectivity software solutions to the global automotive
industry. Headquartered in Van Buren
Township, Michigan, Visteon has approximately 10,000
employees at more than 40 facilities in 18 countries. Visteon had
sales of $3.16 billion in 2016. Learn
more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, Oct. 26, 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: 866-411-5196
Outside U.S./Canada:
970-297-2404
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, related presentation
materials and other supplemental information will be accessible in
the investors section of Visteon's website. A news release on
Visteon's first-quarter results
will be available in the news section of the website.
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
95917012. 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, 2016).
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, 2017. 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 2016 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
https://www.instagram.com/visteon
http://www.slideshare.net/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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Sales
|
$
|
765
|
|
|
$
|
770
|
|
|
$
|
2,349
|
|
|
$
|
2,345
|
|
Cost of
sales
|
649
|
|
|
665
|
|
|
1,990
|
|
|
2,010
|
|
Gross
margin
|
116
|
|
|
105
|
|
|
359
|
|
|
335
|
|
Selling, general and
administrative expenses
|
54
|
|
|
53
|
|
|
158
|
|
|
163
|
|
Restructuring
expense
|
6
|
|
|
5
|
|
|
10
|
|
|
22
|
|
Interest expense,
net
|
3
|
|
|
5
|
|
|
12
|
|
|
10
|
|
Equity in net income
of non-consolidated affiliates
|
1
|
|
|
—
|
|
|
6
|
|
|
3
|
|
Other (income)
expense, net
|
(1)
|
|
|
12
|
|
|
(3)
|
|
|
16
|
|
Income before income
taxes
|
55
|
|
|
30
|
|
|
188
|
|
|
127
|
|
Provision for income
taxes
|
8
|
|
|
5
|
|
|
34
|
|
|
27
|
|
Net income from
continuing operations
|
47
|
|
|
25
|
|
|
154
|
|
|
100
|
|
Income (loss) from
discontinued operations, net of tax
|
—
|
|
|
7
|
|
|
8
|
|
|
(15)
|
|
Net income
|
47
|
|
|
32
|
|
|
162
|
|
|
85
|
|
Net income
attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
12
|
|
Net income
attributable to Visteon Corporation
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
Earnings per share
data:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.38
|
|
|
$
|
0.62
|
|
|
$
|
4.50
|
|
|
$
|
2.47
|
|
Discontinued operations
|
—
|
|
|
0.21
|
|
|
0.25
|
|
|
(0.42)
|
|
Basic earnings per
share attributable to Visteon Corporation
|
$
|
1.38
|
|
|
$
|
0.83
|
|
|
$
|
4.75
|
|
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
1.35
|
|
|
$
|
0.61
|
|
|
$
|
4.43
|
|
|
$
|
2.44
|
|
Discontinued operations
|
—
|
|
|
0.20
|
|
|
0.25
|
|
|
(0.41)
|
|
Diluted earnings per
share attributable to Visteon Corporation
|
$
|
1.35
|
|
|
$
|
0.81
|
|
|
$
|
4.68
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
31.2
|
|
|
34.0
|
|
|
31.8
|
|
|
35.6
|
|
Diluted
|
31.8
|
|
|
34.4
|
|
|
32.3
|
|
|
36.0
|
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
59
|
|
|
$
|
35
|
|
|
$
|
205
|
|
|
$
|
106
|
|
Comprehensive income
attributable to Visteon Corporation
|
$
|
53
|
|
|
$
|
31
|
|
|
$
|
190
|
|
|
$
|
96
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Dollars in
Millions)
|
(Unaudited)
|
|
|
|
|
|
September
30
|
|
December
31
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
732
|
|
|
$
|
878
|
|
Restricted
cash
|
3
|
|
|
4
|
|
Accounts receivable,
net
|
506
|
|
|
505
|
|
Inventories,
net
|
174
|
|
|
151
|
|
Other current
assets
|
181
|
|
|
170
|
|
Total current
assets
|
1,596
|
|
|
1,708
|
|
|
|
|
|
Property and
equipment, net
|
361
|
|
|
345
|
|
Intangible assets,
net
|
128
|
|
|
129
|
|
Investments in
non-consolidated affiliates
|
40
|
|
|
45
|
|
Other non-current
assets
|
154
|
|
|
146
|
|
Total
assets
|
$
|
2,279
|
|
|
$
|
2,373
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
44
|
|
|
$
|
36
|
|
Accounts
payable
|
429
|
|
|
463
|
|
Accrued employee
liabilities
|
102
|
|
|
103
|
|
Other current
liabilities
|
235
|
|
|
309
|
|
Total current
liabilities
|
810
|
|
|
911
|
|
|
|
|
|
Long-term
debt
|
347
|
|
|
346
|
|
Employee
benefits
|
305
|
|
|
303
|
|
Deferred tax
liabilities
|
22
|
|
|
20
|
|
Other non-current
liabilities
|
62
|
|
|
69
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Additional paid-in
capital
|
1,333
|
|
|
1,327
|
|
Retained
earnings
|
1,420
|
|
|
1,269
|
|
Accumulated other
comprehensive loss
|
(194)
|
|
|
(233)
|
|
Treasury
stock
|
(1,945)
|
|
|
(1,778)
|
|
Total Visteon
Corporation stockholders' equity
|
615
|
|
|
586
|
|
Non-controlling
interests
|
118
|
|
|
138
|
|
Total
equity
|
733
|
|
|
724
|
|
Total liabilities and
equity
|
$
|
2,279
|
|
|
$
|
2,373
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
|
(Dollars in
Millions)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
OPERATING
|
|
|
|
|
|
|
|
Net income
|
$
|
47
|
|
|
$
|
32
|
|
|
$
|
162
|
|
|
$
|
85
|
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
21
|
|
|
21
|
|
|
62
|
|
|
62
|
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
(1)
|
|
|
1
|
|
|
(6)
|
|
|
(2)
|
|
Non-cash stock-based
compensation
|
3
|
|
|
2
|
|
|
9
|
|
|
6
|
|
Gain on India
operations repurchase
|
—
|
|
|
—
|
|
|
(7)
|
|
|
—
|
|
(Gains) losses on
divestitures and impairments
|
(2)
|
|
|
1
|
|
|
(4)
|
|
|
5
|
|
Other non-cash
items
|
(1)
|
|
|
14
|
|
|
2
|
|
|
15
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
21
|
|
|
(12)
|
|
|
29
|
|
|
15
|
|
Inventories
|
(7)
|
|
|
10
|
|
|
(15)
|
|
|
15
|
|
Accounts
payable
|
(19)
|
|
|
(28)
|
|
|
(39)
|
|
|
(45)
|
|
Other assets and
other liabilities
|
(17)
|
|
|
(17)
|
|
|
(62)
|
|
|
(118)
|
|
Net cash provided
from operating activities
|
45
|
|
|
24
|
|
|
131
|
|
|
38
|
|
INVESTING
|
|
|
|
|
|
|
|
Capital expenditures,
including intangibles
|
(22)
|
|
|
(19)
|
|
|
(69)
|
|
|
(56)
|
|
India operations
repurchase
|
—
|
|
|
—
|
|
|
(47)
|
|
|
—
|
|
Payments for
acquisition and divestiture of businesses
|
(2)
|
|
|
(15)
|
|
|
(2)
|
|
|
(15)
|
|
Settlement of net
investment hedge
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
Proceeds from asset
sales and business divestitures
|
2
|
|
|
11
|
|
|
15
|
|
|
15
|
|
Climate Transaction
withholding tax refund
|
—
|
|
|
—
|
|
|
—
|
|
|
356
|
|
Short-term
investments
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
Loan to
non-consolidated affiliates, net of repayments
|
—
|
|
|
4
|
|
|
—
|
|
|
(8)
|
|
Other
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Net cash (used by)
provided from investing activities
|
(21)
|
|
|
(19)
|
|
|
(97)
|
|
|
339
|
|
FINANCING
|
|
|
|
|
|
|
|
Short-term debt,
net
|
1
|
|
|
(1)
|
|
|
8
|
|
|
(11)
|
|
Principal payments on
debt
|
—
|
|
|
(1)
|
|
|
(2)
|
|
|
(2)
|
|
Distribution
payments
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1,736)
|
|
Repurchase of common
stock
|
(10)
|
|
|
—
|
|
|
(170)
|
|
|
(500)
|
|
Dividends paid to
non-controlling interests
|
(18)
|
|
|
—
|
|
|
(29)
|
|
|
—
|
|
Stock based
compensation tax withholding payments
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(11)
|
|
Other
|
1
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Net cash used by
financing activities
|
(26)
|
|
|
(2)
|
|
|
(197)
|
|
|
(2,260)
|
|
Effect of exchange
rate changes on cash and equivalents
|
4
|
|
|
2
|
|
|
17
|
|
|
6
|
|
Net increase
(decrease) in cash and equivalents
|
2
|
|
|
5
|
|
|
(146)
|
|
|
(1,877)
|
|
Cash and equivalents
at beginning of period
|
730
|
|
|
847
|
|
|
878
|
|
|
2,729
|
|
Cash and equivalents
at end of period
|
$
|
732
|
|
|
$
|
852
|
|
|
$
|
732
|
|
|
$
|
852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
The Company has combined cash flows from discontinued operations
with cash flows from continuing operations within the operating,
investing and financing categories.
|
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 adjusted to eliminate the
impact of depreciation and amortization, restructuring
expense, net interest expense, loss on debt extinguishment, equity
in net income of non-consolidated affiliates, loss on divestiture,
gain on non-consolidated affiliate transactions, other net expense,
provision for income taxes, discontinued operations, net
income attributable to non-controlling interests, non-cash
stock-based compensation expense, and other gains and losses not
reflective of the Company's ongoing operations. 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
|
|
Estimated
|
|
September
30
|
|
September
30
|
|
Full
Year
|
Total
Visteon
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
Electronics
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
268
|
|
|
$
|
248
|
|
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
|
Adjusted
EBITDA
|
83
|
|
|
75
|
|
|
268
|
|
|
241
|
|
|
$360 -
$370
|
Depreciation and
amortization
|
21
|
|
|
21
|
|
|
62
|
|
|
62
|
|
|
83
|
Restructuring
expense
|
6
|
|
|
5
|
|
|
10
|
|
|
22
|
|
|
10
|
Interest expense,
net
|
3
|
|
|
5
|
|
|
12
|
|
|
10
|
|
|
15
|
Equity in net income
of non-consolidated affiliates
|
(1)
|
|
|
—
|
|
|
(6)
|
|
|
(3)
|
|
|
(8)
|
Other (income)
expense, net
|
(1)
|
|
|
12
|
|
|
(3)
|
|
|
16
|
|
|
(3)
|
Provision for income
taxes
|
8
|
|
|
5
|
|
|
34
|
|
|
27
|
|
|
50
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
(7)
|
|
|
(8)
|
|
|
15
|
|
|
(8)
|
Non-cash, stock-based
compensation expense
|
3
|
|
|
2
|
|
|
9
|
|
|
6
|
|
|
14
|
Net income
attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
12
|
|
|
15
|
Other
|
(3)
|
|
|
—
|
|
|
(4)
|
|
|
1
|
|
|
(4)
|
Net income
attributable to Visteon
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
|
$196 -
$206
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30
|
|
September
30
|
|
Electronics
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Adjusted
EBITDA
|
$
|
83
|
|
|
$
|
75
|
|
|
$
|
268
|
|
|
$
|
248
|
|
|
Depreciation and
amortization
|
21
|
|
|
21
|
|
|
62
|
|
|
62
|
|
|
Restructuring
expense
|
6
|
|
|
1
|
|
|
10
|
|
|
11
|
|
|
Interest expense,
net
|
3
|
|
|
5
|
|
|
12
|
|
|
10
|
|
|
Equity in net income
of non-consolidated affiliates
|
(1)
|
|
|
—
|
|
|
(6)
|
|
|
(3)
|
|
|
Other (income)
expense, net
|
(1)
|
|
|
(1)
|
|
|
(3)
|
|
|
3
|
|
|
Provision for income
taxes
|
8
|
|
|
5
|
|
|
34
|
|
|
27
|
|
|
Net income
attributable to non-controlling interests
|
4
|
|
|
4
|
|
|
11
|
|
|
12
|
|
|
Non-cash, stock-based
compensation expense
|
3
|
|
|
2
|
|
|
9
|
|
|
6
|
|
|
Other
|
(3)
|
|
|
—
|
|
|
(4)
|
|
|
1
|
|
|
Net income
|
$
|
43
|
|
|
$
|
38
|
|
|
$
|
143
|
|
|
$
|
119
|
|
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
(7)
|
|
|
(8)
|
|
|
15
|
|
|
All other (income)
loss, net of tax
|
—
|
|
|
17
|
|
|
—
|
|
|
31
|
|
|
Net income
attributable to Visteon
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
|
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
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash provided from
operating activities - Electronics
|
$
|
45
|
|
|
$
|
33
|
|
|
$
|
131
|
|
|
$
|
112
|
|
Cash used by
operating activities - discontinued operations and other
|
—
|
|
|
(9)
|
|
|
—
|
|
|
(74)
|
|
Cash provided from
operating activities total Visteon
|
$
|
45
|
|
|
$
|
24
|
|
|
$
|
131
|
|
|
$
|
38
|
|
Capital expenditures,
including intangibles
|
(22)
|
|
|
(19)
|
|
|
(69)
|
|
|
(56)
|
|
Free cash
flow
|
$
|
23
|
|
|
$
|
5
|
|
|
$
|
62
|
|
|
$
|
(18)
|
|
Restructuring/transformation-related
payments
|
10
|
|
|
20
|
|
|
28
|
|
|
94
|
|
Adjusted free cash
flow
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
90
|
|
|
$
|
76
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30
|
|
September
30
|
|
Estimated
|
Electronics
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Full Year
2017*
|
Cash provided from
operating activities
|
$
|
45
|
|
|
$
|
33
|
|
|
$
|
131
|
|
|
$
|
112
|
|
|
$215 -
$225
|
Capital expenditures,
including intangibles
|
(22)
|
|
|
(18)
|
|
|
(69)
|
|
|
(54)
|
|
|
(85)
|
Free cash
flow
|
$
|
23
|
|
|
$
|
15
|
|
|
$
|
62
|
|
|
$
|
58
|
|
|
$130 -
$140
|
Restructuring/transformation-related
payments
|
10
|
|
|
8
|
|
|
28
|
|
|
30
|
|
|
40
|
Adjusted free cash
flow
|
$
|
33
|
|
|
$
|
23
|
|
|
$
|
90
|
|
|
$
|
88
|
|
|
$170 -
$180
|
* Guidance excludes the restructuring, transformation payments
associated with other legacy 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, providing
comparability between periods by excluding certain items that may
not be indicative of recurring business operating results. The
Company believes management and investors benefit from referring to
these supplemental measures in assessing company performance and
when planning, forecasting and analyzing future periods. The
Company defines Adjusted net income as net income attributable to
Visteon adjusted to eliminate the impact of restructuring expense,
loss on debt extinguishment, loss on divestiture, gain on
non-consolidated affiliate transactions, other net expenses,
discontinued operations and related tax effects and other gains and
losses not reflective of the Company's ongoing 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
September
30
|
|
Nine Months
Ended
September 30
|
Net income
attributable to Visteon:
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Electronics
|
|
|
|
|
$
|
43
|
|
|
$
|
38
|
|
|
$
|
143
|
|
|
$
|
119
|
|
Other/discontinued
operations
|
|
|
|
|
—
|
|
|
(10)
|
|
|
8
|
|
|
(46)
|
|
Net income
attributable to Visteon
|
|
|
|
|
$
|
43
|
|
|
$
|
28
|
|
|
$
|
151
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2017
|
|
Nine Months
Ended
September 30,
2017
|
|
Electronics
|
|
Other/
Discontinued Operations
|
|
Total
Visteon
|
|
Electronics
|
|
Other/
Discontinued Operations
|
|
Total
Visteon
|
Diluted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
143
|
|
|
$
|
8
|
|
|
$
|
151
|
|
Average shares
outstanding,
diluted
(in
millions)
|
31.8
|
|
|
31.8
|
|
|
31.8
|
|
|
32.3
|
|
|
32.3
|
|
|
32.3
|
|
Diluted earnings per
share
|
$
|
1.35
|
|
|
$
|
—
|
|
|
$
|
1.35
|
|
|
$
|
4.43
|
|
|
$
|
0.25
|
|
|
$
|
4.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
143
|
|
|
$
|
8
|
|
|
$
|
151
|
|
Restructuring
expense
|
6
|
|
|
—
|
|
|
6
|
|
|
10
|
|
|
—
|
|
|
10
|
|
Other (income)
expense, net
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Other
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(8)
|
|
Adjusted net
income
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
146
|
|
|
$
|
—
|
|
|
$
|
146
|
|
Average shares
outstanding, diluted (in millions)
|
31.8
|
|
|
31.8
|
|
|
31.8
|
|
|
32.3
|
|
|
32.3
|
|
|
32.3
|
|
Adjusted earnings per
share
|
$
|
1.42
|
|
|
$
|
—
|
|
|
$
|
1.42
|
|
|
$
|
4.52
|
|
|
$
|
—
|
|
|
$
|
4.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
2016
|
|
Nine Months
Ended
September
30, 2016
|
|
Electronics
|
|
Other/
Discontinued Operations
|
|
Total
Visteon
|
|
Electronics
|
|
Other/
Discontinued Operations
|
|
Total
Visteon
|
Diluted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
38
|
|
|
$
|
(10)
|
|
|
$
|
28
|
|
|
$
|
119
|
|
|
$
|
(46)
|
|
|
$
|
73
|
|
Average shares
outstanding, diluted (in millions)
|
34.4
|
|
|
34.4
|
|
|
34.4
|
|
|
36.0
|
|
|
36.0
|
|
|
36.0
|
|
Diluted earnings per
share
|
$
|
1.10
|
|
|
$
|
(0.29)
|
|
|
$
|
0.81
|
|
|
$
|
3.31
|
|
|
$
|
(1.28)
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
38
|
|
|
$
|
(10)
|
|
|
$
|
28
|
|
|
$
|
119
|
|
|
$
|
(46)
|
|
|
$
|
73
|
|
Restructuring
expense
|
1
|
|
|
4
|
|
|
5
|
|
|
11
|
|
|
11
|
|
|
22
|
|
Other (income)
expense, net
|
(1)
|
|
|
13
|
|
|
12
|
|
|
3
|
|
|
13
|
|
|
16
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
(Income) loss from
discontinued operations, net of tax
|
—
|
|
|
(7)
|
|
|
(7)
|
|
|
—
|
|
|
15
|
|
|
15
|
|
Adjusted net
income
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
134
|
|
|
$
|
(7)
|
|
|
$
|
127
|
|
Average shares
outstanding, diluted (in millions)
|
34.4
|
|
|
34.4
|
|
|
34.4
|
|
|
36.0
|
|
|
36.0
|
|
|
36.0
|
|
Adjusted earnings per
share
|
$
|
1.10
|
|
|
$
|
—
|
|
|
$
|
1.10
|
|
|
$
|
3.72
|
|
|
$
|
(0.19)
|
|
|
$
|
3.53
|
|
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