Visteon Corporation (NASDAQ: VC) today reported first quarter
financial results. Highlights include:
- Sales of $818 million, up
11%1 from prior
year
- Growth-over-market of 22%1
versus top customers' vehicle production
- Net income of $22 million
- Adjusted EBITDA of $71 million or 8.7% of
sales
- 16 new products launched in first quarter
- $950 million in new business wins
- $56 million in net cash at quarter end when excluding
debt of $349 million
Visteon reported net sales of $818 million, representing a
year-over-year increase of 11% excluding the impact of currency.
Total industry production decreased 4% while vehicle production at
Visteon’s top customers decreased 11%1 in the same period,
reflecting supply chain constraints and the worldwide semiconductor
shortage. Despite these constraints, the company's sales
performance represents 22%1 growth-over-market compared to the
production volumes of its customers.
Gross margin in the first quarter was $76 million, and net
income attributable to Visteon was $22 million or $0.77 per diluted
share. Adjusted EBITDA, a non-GAAP measure as defined below, was
$71 million for the first quarter or 8.7% of sales, an increase of
$7 million compared to the prior year. The increase in adjusted
EBITDA reflects the favorable impact of higher sales volumes,
higher pricing, and lower engineering costs. This increase was
partially offset by higher semiconductor costs net of customer cost
recoveries.
Visteon launched 16 new products in the first quarter and is
setting the foundation for another year of robust launch activity.
Key first quarter launches include a 12-inch digital cluster for
the F-150 Lightning EV that recently launched with Ford and several
center information display programs across multiple vehicle lines
with Mazda, including their all-new CX-60 plug-in hybrid SUV.
Additional key launches include a 10-inch digital cluster on the
new Nissan Z and a 10-inch digital cluster on Honda’s first
generation all-electric BEV crossover for the China market.
The company won $950 million in new business in the first
quarter, approximately 20% of which were for programs with electric
vehicle variants. First quarter wins included a global
multi-display module program, an additional SmartCore™ customer,
and a 7-inch all-digital cluster for a global program on a
high-volume sedan with a Japanese OEM.
For the first three months, cash used by operations was $21
million and capital expenditures were $21 million. Adjusted free
cash flow, a non-GAAP financial measure as defined below, for the
first three months of 2022 was a use of cash of $37 million,
compared to a source of cash of $9 million for the same period in
2021. The company ended the first quarter with cash of $405 million
and debt of $349 million, representing a net cash position of $56
million.
“I am proud of Visteon’s continued performance and our ability
to deliver a strong sales quarter and improved earnings versus the
prior year in a challenging environment,” said President and CEO
Sachin Lawande. “Our continued growth-over-market is driven by our
best-in-class product portfolio and this quarter represents our
twelfth consecutive quarter of market outperformance.”
Visteon is maintaining full-year 2022 guidance and anticipates
sales in the range of $3.150 – $3.350 billion, Adjusted EBITDA in
the range of $295 – $335 million, and Adjusted Free Cash Flow in
the range of $85 – $115 million.
About
Visteon
Visteon is a technology leader in automotive electronics
dedicated to creating a more enjoyable, connected and safe driving
experience. Our platforms leverage proven, scalable hardware and
software solutions that enable the digital, electric and autonomous
evolution of our global automotive customers. Visteon products
align with key industry trends and include digital instrument
clusters, displays, Android-based infotainment systems, domain
controllers, advanced driver assistance systems (ADAS) and battery
management systems. Learn more at
https://investors.visteon.com/.
Conference Call and
Presentation
Today, Thursday, April 28, 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: 844-535-3468 Outside U.S./Canada:
720-405-0988Conference ID: 1329137
(Call approximately 15 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 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 1329137. The phone replay will be available
for one week following the conference call.
_____
Use of Non-GAAP Financial Information
Because not all companies use identical calculations, adjusted
EBITDA, adjusted net income, adjusted EPS, free cash flow and
adjusted free cash flow used throughout this press release may not
be comparable to other similarly titled measures of other
companies.
In order to provide the forward-looking non-GAAP financial
measures for full-year 2022, the company provides reconciliations
to the most directly comparable GAAP financial measures on the
subsequent slides. The provision of these comparable GAAP financial
measures is not intended to indicate that the company 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.
Forward-looking Information
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. The words "will," "may," "designed to," "outlook,"
"believes," "should," "anticipates," "plans," "expects," "intends,"
"estimates," "forecasts" and similar expressions identify certain
of these forward-looking statements. 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:
- continued and future impacts of the
coronavirus (COVID-19) pandemic on our financial condition and
business operations including global supply chain disruptions,
market downturns, reduced consumer demand and new government
actions or restrictions;
- continued and future impacts
related to the conflict between Russia and the Ukraine including
supply chain disruptions, reduction in customer demand, and the
imposition of sanctions on Russia;
- significant or prolonged shortage
of critical components from our suppliers, including but not
limited to semiconductors, and particularly those who are our sole
or primary sources;
- 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, including work
stoppages at our customers, 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;
- our ability to execute on our
transformational plans and cost-reduction initiatives in the
amounts and on the timing contemplated;
- 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;
- our ability to access funds
generated by foreign subsidiaries and joint ventures on a timely
and cost-effective basis;
- general economic conditions,
including changes in interest rates and fuel prices, the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations;
- 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;
- changes in laws, regulations,
policies or other activities of governments, agencies and similar
organizations, domestic and foreign, that may tax or otherwise
increase the cost of, or otherwise affect, the manufacture,
licensing, distribution, sale, ownership or use of our products or
assets; and
- those factors identified in our
filings with the SEC (including our Annual Report on Form 10-K for
the fiscal year ended December 31, 2021, as updated by our
subsequent filings with the Securities and Exchange
Commission).
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 March 31, 2022. New business wins and re-wins 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.
Follow Visteon:
https://www.linkedin.com/company/visteon https://twitter.com/visteonhttps://www.facebook.com/VisteonCorporationhttps://www.youtube.com/user/Visteonhttps://www.instagram.com/visteon/https://mp.weixin.qq.com/?lang=en_UShttps://m.weibo.cn/u/6605315328http://i.youku.com/u/UNDgyMjA1NjUxNg==?spm=a2h0k.8191407.0.0
Visteon Contacts:
Media: |
|
Investors: |
|
|
|
Dianna Ofiara |
|
Kris Doyle |
734-258-4355 |
|
201-247-3050 |
dofiara@visteon.com |
|
kdoyle@visteon.com |
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)(In millions except per share
amounts) (Unaudited)
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
|
|
|
|
Net sales |
$ |
818 |
|
|
$ |
746 |
|
Cost of sales |
|
(742 |
) |
|
|
(673 |
) |
Gross margin |
|
76 |
|
|
|
73 |
|
Selling, general and
administrative expenses |
|
(44 |
) |
|
|
(45 |
) |
Restructuring and
impairment |
|
(7 |
) |
|
|
1 |
|
Interest expense, net |
|
(2 |
) |
|
|
(2 |
) |
Equity in net income of
non-consolidated affiliates |
|
3 |
|
|
|
— |
|
Other income, net |
|
5 |
|
|
|
4 |
|
Income before income
taxes |
|
31 |
|
|
|
31 |
|
Provision for income
taxes |
|
(8 |
) |
|
|
(12 |
) |
Net income |
|
23 |
|
|
|
19 |
|
Less: Net income attributable
to non-controlling interests |
|
(1 |
) |
|
|
(3 |
) |
Net income attributable to
Visteon Corporation |
$ |
22 |
|
|
$ |
16 |
|
|
|
|
|
Comprehensive income |
$ |
27 |
|
|
$ |
1 |
|
Less: Comprehensive income
attributable to non-controlling interests |
|
(1 |
) |
|
|
(2 |
) |
Comprehensive income (loss)
attributable to Visteon Corporation |
$ |
26 |
|
|
$ |
(1 |
) |
|
|
|
|
Basic earnings per share
attributable to Visteon Corporation |
$ |
0.79 |
|
|
$ |
0.57 |
|
|
|
|
|
Diluted earnings per share
attributable to Visteon Corporation |
$ |
0.77 |
|
|
$ |
0.56 |
|
|
|
|
|
Average shares outstanding (in
millions) |
|
|
|
Basic |
|
28.0 |
|
|
|
27.9 |
|
Diluted |
|
28.4 |
|
|
|
28.4 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In millions)
|
(Unaudited) |
|
|
|
March 31, |
|
December 31, |
|
2022 |
|
2021 |
ASSETS |
|
|
|
Cash and equivalents |
$ |
402 |
|
|
$ |
452 |
|
Restricted cash |
|
3 |
|
|
|
3 |
|
Accounts receivable, net |
|
539 |
|
|
|
549 |
|
Inventories, net |
|
331 |
|
|
|
262 |
|
Other current assets |
|
176 |
|
|
|
158 |
|
Total current assets |
|
1,451 |
|
|
|
1,424 |
|
|
|
|
|
Property and equipment,
net |
|
374 |
|
|
|
388 |
|
Intangible assets, net |
|
116 |
|
|
|
118 |
|
Right-of-use assets |
|
133 |
|
|
|
139 |
|
Investments in
non-consolidated affiliates |
|
58 |
|
|
|
54 |
|
Other non-current assets |
|
111 |
|
|
|
111 |
|
Total assets |
$ |
2,243 |
|
|
$ |
2,234 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Short-term debt |
$ |
— |
|
|
$ |
4 |
|
Accounts payable |
|
539 |
|
|
|
522 |
|
Accrued employee
liabilities |
|
68 |
|
|
|
80 |
|
Current lease liability |
|
28 |
|
|
|
28 |
|
Other current liabilities |
|
214 |
|
|
|
218 |
|
Total current liabilities |
|
849 |
|
|
|
852 |
|
|
|
|
|
Long-term debt, net |
|
349 |
|
|
|
349 |
|
Employee benefits |
|
190 |
|
|
|
198 |
|
Non-current lease
liability |
|
111 |
|
|
|
117 |
|
Deferred tax liabilities |
|
28 |
|
|
|
27 |
|
Other non-current
liabilities |
|
74 |
|
|
|
75 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,339 |
|
|
|
1,349 |
|
Retained earnings |
|
1,686 |
|
|
|
1,664 |
|
Accumulated other comprehensive loss |
|
(225 |
) |
|
|
(229 |
) |
Treasury stock |
|
(2,260 |
) |
|
|
(2,269 |
) |
Total Visteon Corporation
stockholders’ equity |
|
541 |
|
|
|
516 |
|
Non-controlling interests |
|
101 |
|
|
|
100 |
|
Total equity |
|
642 |
|
|
|
616 |
|
Total liabilities and
equity |
$ |
2,243 |
|
|
$ |
2,234 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions) (Unaudited)
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
OPERATING |
|
|
|
Net income |
$ |
23 |
|
|
$ |
19 |
|
Adjustments to reconcile net
income to net cash provided from (used by) operating
activities: |
|
|
|
Depreciation and amortization |
|
27 |
|
|
|
27 |
|
Non-cash stock-based compensation |
|
5 |
|
|
|
4 |
|
Equity in net income of non-consolidated affiliates, net of
dividends remitted |
|
(3 |
) |
|
|
— |
|
Impairments |
|
4 |
|
|
|
— |
|
Other non-cash items |
|
1 |
|
|
|
1 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
|
6 |
|
|
|
4 |
|
Inventories |
|
(71 |
) |
|
|
(17 |
) |
Accounts payable |
|
25 |
|
|
|
2 |
|
Other assets and other liabilities |
|
(38 |
) |
|
|
(29 |
) |
Net cash provided from (used by) operating activities |
|
(21 |
) |
|
|
11 |
|
INVESTING |
|
|
|
Capital expenditures,
including intangibles |
|
(21 |
) |
|
|
(18 |
) |
Contributions to equity method
investments |
|
(1 |
) |
|
|
— |
|
Loan repayments from
non-consolidated affiliates |
|
— |
|
|
|
2 |
|
Other |
|
1 |
|
|
|
1 |
|
Net cash used by investing
activities |
|
(21 |
) |
|
|
(15 |
) |
FINANCING |
|
|
|
Short-term debt, net |
|
(4 |
) |
|
|
— |
|
Net cash used by financing
activities |
|
(4 |
) |
|
|
— |
|
Effect of exchange rate
changes on cash |
|
(4 |
) |
|
|
(10 |
) |
Net decrease in cash,
equivalents, and restricted cash |
|
(50 |
) |
|
|
(14 |
) |
Cash, equivalents, and
restricted cash at beginning of the period |
|
455 |
|
|
|
500 |
|
Cash, equivalents, and
restricted cash at end of the period |
$ |
405 |
|
|
$ |
486 |
|
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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 divestiture, equity in net income of
non-consolidated affiliates, gain on non-consolidated affiliate
transactions, 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 |
|
Estimated |
|
March 31, |
|
Full Year |
Visteon: |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Net income attributable to
Visteon Corporation |
$ |
22 |
|
|
$ |
16 |
|
|
$ |
116 |
|
Depreciation and amortization |
|
27 |
|
|
|
27 |
|
|
|
105 |
|
Provision for income taxes |
|
8 |
|
|
|
12 |
|
|
|
40 |
|
Non-cash, stock-based compensation expense |
|
5 |
|
|
|
4 |
|
|
|
25 |
|
Interest expense, net |
|
2 |
|
|
|
2 |
|
|
|
10 |
|
Net income attributable to non-controlling interests |
|
1 |
|
|
|
3 |
|
|
|
10 |
|
Restructuring and impairment |
|
7 |
|
|
|
(1 |
) |
|
|
10 |
|
Equity in net income of non-consolidated affiliates |
|
(3 |
) |
|
|
— |
|
|
|
(6 |
) |
Other |
|
2 |
|
|
|
1 |
|
|
|
5 |
|
Adjusted EBITDA |
$ |
71 |
|
|
$ |
64 |
|
|
$ |
3152 |
|
|
|
|
|
|
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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, including intangibles. The
Company defines adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, including
intangibles as further adjusted for restructuring related payments.
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 |
|
Estimated |
|
March 31, |
|
Full Year |
Visteon: |
2022 |
|
2021 |
|
2022 |
Cash provided from (used by)
operating activities |
$ |
(21 |
) |
|
$ |
11 |
|
|
$ |
195 |
|
Capital expenditures,
including intangibles |
|
(21 |
) |
|
|
(18 |
) |
|
|
(110 |
) |
Free cash flow |
$ |
(42 |
) |
|
$ |
(7 |
) |
|
$ |
85 |
|
Restructuring related
payments |
|
5 |
|
|
|
16 |
|
|
|
15 |
|
Adjusted free cash flow |
$ |
(37 |
) |
|
$ |
9 |
|
|
$ |
1003 |
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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, net, loss on divestiture, gain on
non-consolidated affiliate transactions, discontinued operations,
other gains and losses not reflective of the Company's ongoing
operations and related tax effects. 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 |
|
March 31, |
|
2022 |
|
2021 |
Net income attributable to Visteon |
$ |
22 |
|
$ |
16 |
|
|
|
|
|
Diluted earnings per
share: |
|
|
|
Net income attributable to
Visteon |
$ |
22 |
|
$ |
16 |
|
Average shares outstanding,
diluted |
|
28.4 |
|
|
28.4 |
|
Diluted earnings per
share |
$ |
0.77 |
|
$ |
0.56 |
|
|
|
|
|
Adjusted net income
and adjusted earnings per share: |
|
|
|
Net income attributable to
Visteon |
$ |
22 |
|
$ |
16 |
|
Restructuring and
impairment |
|
7 |
|
|
(1 |
) |
Other, including tax effects
of adjustments |
|
2 |
|
|
1 |
|
Adjusted net income |
$ |
31 |
|
$ |
16 |
|
Average shares outstanding,
diluted |
|
28.4 |
|
|
28.4 |
|
Adjusted earnings per
share |
$ |
1.09 |
|
$ |
0.56 |
|
|
|
|
|
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 internal planning
and forecasting purposes.
______________________
1 Excludes Y/Y impact of currency fluctuations.2 Based on
mid-point of the range of the Company's financial guidance.3 Based
on mid-point of the range of the Company's financial guidance.
Visteon (NASDAQ:VC)
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