Visteon Corporation (NASDAQ: VC) today reported second quarter
financial results. Highlights include:
- Sales of $848 million, up
42%1 from prior
year
- 13th consecutive quarter of growth-over-market
2
- Net income of $24 million
- Adjusted EBITDA of $79 million or 9.3% of
sales
- 27 new products launched in first half
- $3.1 billion in new business wins in first
half
- Refinanced credit agreement and extended debt maturity
to 2027
Second Quarter Financial
ResultsVisteon reported net sales of $848 million
representing a year-over-year increase of 42%, excluding the impact
of currency, driven by new product launches and positive pricing
due to incremental costs recoveries related to semiconductor
shortages. Total industry production was flat while vehicle
production at Visteon’s top customers increased 6% in the same
period. The company's sales performance represents
36%2 growth-over-market, the 13th consecutive quarter of
market out-performance.
Gross margin in the second quarter was $74 million, and net
income attributable to Visteon was $24 million or $0.85 per diluted
share. Adjusted EBITDA, a non-GAAP measure as defined below, was
$79 million for the second quarter or 9.3% of sales, an increase of
$49 million compared to the prior year. The increase in adjusted
EBITDA reflects the favorable impact of higher sales volumes and
increased customer cost recoveries net of higher semiconductor
costs.
For the first six months, cash used by operations was $72
million and capital expenditures were $36 million. Adjusted free
cash flow, a non-GAAP financial measure as defined below, for the
first six months of 2022 was a use of cash of $99 million primarily
driven by an outflow in working capital related to the timing of
customer recoveries and higher inventory levels due to uneven
supply of semiconductors. The company ended the second quarter with
cash of $325 million and debt of $349 million.
New Business Wins and Product Launch
HighlightsVisteon launched 11 new products in the second
quarter bringing the first half total to 27 new launches. Key
second quarter launches include a 12-inch all-digital cluster for
the Ford Everest and Ranger and a curved multi-display module on
the Maserati Grecale, the all-new flagship crossover SUV for
Maserati. The company also launched a SmartCore™ cockpit domain
controller with Geely on their new all-electric SUV under the Smart
Brand as well as a 10.25-inch infotainment system and display on
PSA’s Citroen C3 supporting Apple CarPlay and Android Auto in the
South American market.
The company won $3.1 billion of new business through the first
half of the year, with more than 50% of programs on electric
vehicle variants. Second quarter wins included our latest
generation SmartCore™ cockpit domain controller on an all-electric
SUV platform for a European OEM, our first cockpit domain
controller with this automaker. Visteon also won a 12-inch display
for a luxury German OEM, also our first center information display
win with this OEM.
Outlook"I am proud of Visteon's
double-digit growth-over-market performance in an environment of
constrained supply exacerbated by the lockdown in Shanghai due to
COVID-19," said President and CEO Sachin Lawande. "The Visteon team
performed exceptionally well to secure supply and support our
customers' production in this challenging environment. Our digital
products continue to do well and we are happy to report another
strong quarter of new business wins with over $2 billion in
lifetime revenue."
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.
___________________________
1 Excludes Y/Y impact of currency fluctuations2 Visteon Y/Y
sales growth (ex. FX) compared to production for Visteon customers
weighted on Visteon sales contribution
About
VisteonVisteon 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
PresentationToday, Thursday, July 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: 1-888-440-4360 Outside U.S./Canada:
1-646-960-0832Conference ID: 4719410
(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 1-800-770-2030 (toll-free from the
U.S. and Canada) or 1-647-362-9199 (international). The conference
ID for the phone replay is 4719410. The phone replay will be
available for two weeks 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;
- disruptions in information
technology systems including, but not limited to, system failure,
cyber-attack, malicious computer software (malware), unauthorized
physical or electronic access, or other natural or man-made
incidents or disasters;
- 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 June 30, 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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Net sales |
$ |
848 |
|
|
$ |
610 |
|
|
$ |
1,666 |
|
|
$ |
1,356 |
|
Cost of sales |
|
(774 |
) |
|
|
(575 |
) |
|
|
(1,516 |
) |
|
|
(1,248 |
) |
Gross margin |
|
74 |
|
|
|
35 |
|
|
|
150 |
|
|
|
108 |
|
Selling, general and
administrative expenses |
|
(43 |
) |
|
|
(44 |
) |
|
|
(87 |
) |
|
|
(89 |
) |
Restructuring and
impairment |
|
(4 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
|
|
— |
|
Interest expense, net |
|
(3 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
Equity in net income of
non-consolidated affiliates |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Other income, net |
|
5 |
|
|
|
5 |
|
|
|
10 |
|
|
|
9 |
|
Income (loss) before income
taxes |
|
30 |
|
|
|
(7 |
) |
|
|
61 |
|
|
|
24 |
|
Provision for income
taxes |
|
(7 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(16 |
) |
Net income (loss) |
|
23 |
|
|
|
(11 |
) |
|
|
46 |
|
|
|
8 |
|
Less: Net (income) loss
attributable to non-controlling interests |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Net income (loss) attributable
to Visteon Corporation |
$ |
24 |
|
|
$ |
(11 |
) |
|
$ |
46 |
|
|
$ |
5 |
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
$ |
(21 |
) |
|
$ |
8 |
|
|
$ |
6 |
|
|
$ |
9 |
|
Less: Comprehensive (income)
loss attributable to non-controlling interests |
|
5 |
|
|
|
(3 |
) |
|
|
4 |
|
|
|
(5 |
) |
Comprehensive income (loss)
attributable to Visteon Corporation |
$ |
(16 |
) |
|
$ |
5 |
|
|
$ |
10 |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share attributable to Visteon Corporation |
$ |
0.85 |
|
|
$ |
(0.39 |
) |
|
$ |
1.64 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share attributable to Visteon Corporation |
$ |
0.85 |
|
|
$ |
(0.39 |
) |
|
$ |
1.61 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
Average shares outstanding (in
millions) |
|
|
|
|
|
|
|
Basic |
|
28.1 |
|
|
|
28.0 |
|
|
|
28.1 |
|
|
|
27.9 |
|
Diluted |
|
28.4 |
|
|
|
28.0 |
|
|
|
28.5 |
|
|
|
28.3 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In millions)
|
(Unaudited) |
|
|
|
June 30, |
|
December 31, |
|
2022 |
|
2021 |
ASSETS |
|
|
|
Cash and equivalents |
$ |
322 |
|
|
$ |
452 |
|
Restricted cash |
|
3 |
|
|
|
3 |
|
Accounts receivable, net |
|
593 |
|
|
|
549 |
|
Inventories, net |
|
306 |
|
|
|
262 |
|
Other current assets |
|
175 |
|
|
|
158 |
|
Total current assets |
|
1,399 |
|
|
|
1,424 |
|
|
|
|
|
Property and equipment,
net |
|
348 |
|
|
|
388 |
|
Intangible assets, net |
|
109 |
|
|
|
118 |
|
Right-of-use assets |
|
124 |
|
|
|
139 |
|
Investments in
non-consolidated affiliates |
|
57 |
|
|
|
54 |
|
Other non-current assets |
|
109 |
|
|
|
111 |
|
Total assets |
$ |
2,146 |
|
|
$ |
2,234 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Short-term debt |
$ |
— |
|
|
$ |
4 |
|
Accounts payable |
|
490 |
|
|
|
522 |
|
Accrued employee
liabilities |
|
67 |
|
|
|
80 |
|
Current lease liability |
|
27 |
|
|
|
28 |
|
Other current liabilities |
|
217 |
|
|
|
218 |
|
Total current liabilities |
|
801 |
|
|
|
852 |
|
|
|
|
|
Long-term debt, net |
|
349 |
|
|
|
349 |
|
Employee benefits |
|
180 |
|
|
|
198 |
|
Non-current lease
liability |
|
103 |
|
|
|
117 |
|
Deferred tax liabilities |
|
27 |
|
|
|
27 |
|
Other non-current
liabilities |
|
60 |
|
|
|
75 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,345 |
|
|
|
1,349 |
|
Retained earnings |
|
1,710 |
|
|
|
1,664 |
|
Accumulated other comprehensive loss |
|
(265 |
) |
|
|
(229 |
) |
Treasury stock |
|
(2,259 |
) |
|
|
(2,269 |
) |
Total Visteon Corporation
stockholders’ equity |
|
532 |
|
|
|
516 |
|
Non-controlling interests |
|
94 |
|
|
|
100 |
|
Total equity |
|
626 |
|
|
|
616 |
|
Total liabilities and
equity |
$ |
2,146 |
|
|
$ |
2,234 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions) (Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
OPERATING |
|
|
|
|
|
|
|
Net income (loss) |
$ |
23 |
|
|
$ |
(11 |
) |
|
$ |
46 |
|
|
$ |
8 |
|
Adjustments to reconcile net
income (loss) to net cash provided from (used by) operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
25 |
|
|
|
28 |
|
|
|
52 |
|
|
|
55 |
|
Non-cash stock-based compensation |
|
8 |
|
|
|
5 |
|
|
|
13 |
|
|
|
9 |
|
Equity in net loss (income) of non-consolidated affiliates, net of
dividends remitted |
|
(1 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
Impairments |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Other non-cash items |
|
(1 |
) |
|
|
2 |
|
|
|
— |
|
|
|
3 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(80 |
) |
|
|
47 |
|
|
|
(74 |
) |
|
|
51 |
|
Inventories |
|
9 |
|
|
|
(18 |
) |
|
|
(62 |
) |
|
|
(35 |
) |
Accounts payable |
|
(27 |
) |
|
|
(68 |
) |
|
|
(2 |
) |
|
|
(66 |
) |
Other assets and other liabilities |
|
(7 |
) |
|
|
5 |
|
|
|
(45 |
) |
|
|
(24 |
) |
Net cash (used by) provided from operating activities |
|
(51 |
) |
|
|
(10 |
) |
|
|
(72 |
) |
|
|
1 |
|
INVESTING |
|
|
|
|
|
|
|
Capital expenditures,
including intangibles |
|
(15 |
) |
|
|
(15 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
Contributions to equity method
investments |
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Settlement of derivatives
contracts |
|
5 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
Loan repayments from
non-consolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Other |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
Net cash used by investing
activities |
|
(10 |
) |
|
|
(16 |
) |
|
|
(31 |
) |
|
|
(31 |
) |
FINANCING |
|
|
|
|
|
|
|
Dividends to non-controlling
interests |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Short-term debt, net |
|
— |
|
|
|
6 |
|
|
|
(4 |
) |
|
|
6 |
|
Other |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Net cash used by financing
activities |
|
— |
|
|
|
6 |
|
|
|
(4 |
) |
|
|
6 |
|
Effect of exchange rate
changes on cash |
|
(19 |
) |
|
|
4 |
|
|
|
(23 |
) |
|
|
(6 |
) |
Net decrease in cash,
equivalents, and restricted cash |
|
(80 |
) |
|
|
(16 |
) |
|
|
(130 |
) |
|
|
(30 |
) |
Cash, equivalents, and
restricted cash at beginning of the period |
|
405 |
|
|
|
486 |
|
|
|
455 |
|
|
|
500 |
|
Cash, equivalents, and
restricted cash at end of the period |
$ |
325 |
|
|
$ |
470 |
|
|
$ |
325 |
|
|
$ |
470 |
|
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 and
impairment 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 |
|
Six Months Ended |
|
Estimated |
|
June 30, |
|
June 30, |
|
Full Year |
Visteon: |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
Net income attributable to
Visteon Corporation |
$ |
24 |
|
|
$ |
(11 |
) |
|
$ |
46 |
|
|
$ |
5 |
|
$ |
111 |
|
Depreciation and
amortization |
|
25 |
|
|
|
28 |
|
|
|
52 |
|
|
|
55 |
|
|
105 |
|
Provision for income
taxes |
|
7 |
|
|
|
4 |
|
|
|
15 |
|
|
|
16 |
|
|
35 |
|
Non-cash, stock-based
compensation expense |
|
8 |
|
|
|
5 |
|
|
|
13 |
|
|
|
9 |
|
|
27 |
|
Restructuring and
impairment |
|
4 |
|
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
15 |
|
Interest expense, net |
|
3 |
|
|
|
2 |
|
|
|
5 |
|
|
|
4 |
|
|
10 |
|
Net income attributable to
non-controlling interests |
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
5 |
|
Equity in net income of
non-consolidated affiliates |
|
(1 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
(8 |
) |
Other |
|
10 |
|
|
|
1 |
|
|
|
12 |
|
|
|
2 |
|
|
15 |
|
Adjusted EBITDA |
$ |
79 |
|
|
$ |
30 |
|
|
$ |
150 |
|
|
$ |
94 |
|
$ |
3153 |
|
|
|
|
|
|
|
|
|
|
|
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.
____________________________
3 Based on mid-point of the range of the
Company's financial guidance
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 |
|
Six Months Ended |
|
Estimated |
|
June 30, |
|
June 30, |
|
Full Year |
Visteon: |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
Cash provided from (used by) operating activities |
$ |
(51 |
) |
|
$ |
(10 |
) |
|
$ |
(72 |
) |
|
$ |
1 |
|
|
$ |
185 |
|
Capital expenditures,
including intangibles |
|
(15 |
) |
|
|
(15 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
|
|
(100 |
) |
Free cash flow |
$ |
(66 |
) |
|
$ |
(25 |
) |
|
$ |
(108 |
) |
|
$ |
(32 |
) |
|
$ |
85 |
|
Restructuring related
payments |
|
4 |
|
|
|
9 |
|
|
|
9 |
|
|
|
25 |
|
|
|
15 |
|
Adjusted free cash flow |
$ |
(62 |
) |
|
$ |
(16 |
) |
|
$ |
(99 |
) |
|
$ |
(7 |
) |
|
$ |
1004 |
|
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.
____________________________
4 Based on mid-point of the range of the
Company's financial guidance
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 and impairment, 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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net income attributable to Visteon |
$ |
24 |
|
$ |
(11 |
) |
|
$ |
46 |
|
$ |
5 |
|
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
|
|
|
|
|
|
Net income attributable to
Visteon |
$ |
24 |
|
$ |
(11 |
) |
|
$ |
46 |
|
$ |
5 |
Average shares outstanding,
diluted |
|
28.4 |
|
|
28.0 |
|
|
|
28.5 |
|
|
28.3 |
Diluted earnings per
share |
$ |
0.85 |
|
$ |
(0.39 |
) |
|
$ |
1.61 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
Adjusted net income
and adjusted earnings per share: |
|
|
|
|
|
|
|
Net income attributable to
Visteon |
$ |
24 |
|
$ |
(11 |
) |
|
$ |
46 |
|
$ |
5 |
Restructuring and
impairment |
|
4 |
|
|
1 |
|
|
|
11 |
|
|
— |
Other, including tax effects
of adjustments |
|
10 |
|
|
1 |
|
|
|
12 |
|
|
2 |
Adjusted net income |
$ |
38 |
|
$ |
(9 |
) |
|
$ |
69 |
|
$ |
7 |
Average shares outstanding,
diluted |
|
28.4 |
|
|
28.0 |
|
|
|
28.5 |
|
|
28.3 |
Adjusted earnings per
share |
$ |
1.34 |
|
$ |
(0.32 |
) |
|
$ |
2.42 |
|
$ |
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 internal planning
and forecasting purposes.
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