Third Quarter Highlights
- $24.2 million of cash generated from operating activities;
$90.0 million improvement over prior year comparable period
- Cash and Availability(1) of $78.0 million; $17.1 million
improvement over prior year comparable period
- Refinanced First and Second Lien Term Loans into single term
loan facility; extends maturity, maintains interest rate level and
supports Company’s long-term strategic plan
- Net sales of $201.6 million; increase of $23.7 million, or
13.3%, compared to prior year comparable period
- Operating profit of $8.6 million; $21.3 million improvement
compared to prior year comparable period
- Net income from continuing operations of $1.6 million; $39.1
million improvement compared to prior year comparable period
- Adjusted EBITDA(2) of $16.1 million; $19.1 million improvement
compared to prior year comparable period
Horizon Global Corporation (NYSE: HZN), one of the world’s
leading manufacturers of branded towing and trailering equipment,
today reported financial results for the third quarter of 2020.
“I want to thank each and every member of our global team for
the tremendous efforts and leadership demonstrated during the third
quarter of 2020 as we continued to navigate our way through an
unprecedented macro-economic environment,” stated Terry Gohl,
Horizon Global's President and Chief Executive Officer. “We made a
commitment in March to accelerate the deployment of our operational
improvement initiatives to ensure that we would emerge from the
crisis as a stronger company. The team rose to the occasion and, as
a result, we delivered on our customer commitments in a period of
increased demand, leading to significant improvements in
profitability and cash flow generation. While the business
continues to improve each and every day, we are beginning to see
the fruits of our labor and the third quarter of 2020 marks the
first time in three years that we have generated positive net
income.”
2020 Third Quarter Segment
Results
Horizon Americas. Net sales increased $22.9 million, or
23.8%, to $119.1 million. Net sales increased by $10.9 million
combined in the retail and e-commerce sales channels, $8.5 million
in the aftermarket and $4.0 million combined in the automotive OEM
and automotive OES sales channels. Gross profit increased $15.7
million due to higher net sales coupled with favorable
manufacturing costs and efficiencies, lower scrap costs and
inventory reserves. Horizon Americas generated operating profit of
$13.2 million, an increase of $15.4 million compared to the prior
year comparable period, driven by favorable gross profit as
described above. Adjusted EBITDA(2) increased to $15.5 million for
the quarter, as compared to $0.6 million for the prior year
comparable period.
Horizon Europe-Africa. Net sales increased $0.9 million,
or 1.1%, to $82.5 million. Net sales increased by $4.5 million in
the aftermarket sales channel, partially offset by a $3.5 million
decrease in the automotive OEM and automotive OES sales channels.
Gross profit decreased $0.6 million, primarily attributable to $4.1
million of material cost and labor efficiencies, which was more
than offset by a $4.3 million favorable prior year expense recovery
related to a product liability settlement that did not recur.
Horizon Europe-Africa generated operating profit of $2.4 million,
representing an increase of $0.7 million driven by $1.4 million
lower SG&A costs, partially offset by the unfavorable gross
profit described above. Adjusted EBITDA(2) increased to $6.1
million for the quarter, as compared to $0.7 million for the prior
year comparable period.
Balance Sheet and Liquidity. Cash and Availability(1) was
$78.0 million, an increase of $17.1 million compared to the prior
year comparable period. Working Capital(3) was $66.6 million, a
reduction of $45.1 million compared to the prior year comparable
period. Gross debt increased $28.6 million to $267.8 million over
the prior year comparable period, primarily reflecting increased
borrowings in the first two quarters of 2020 to strengthen
liquidity in response to the COVID-19 pandemic.
Summary
Gohl commented, “We are experiencing an extension of our
traditional peak selling season in North America with demand
continuing to outpace prior years. Increased take rates in Europe
are also favorably impacting our outlook for the remainder of 2020.
The increase in demand for our products has resulted in a strong
open order book that we expect to capitalize on in the fourth
quarter. Our laser-like focus on operational throughput and
delivery through lean manufacturing principles positions us to meet
heightened demand levels, solidify ourselves as the established
market leader and continue to expand our market share in a
profitable manner in each of the geographies we serve. We expect
all these efforts to create near- and long-term value for our
employees, customers and shareholders.”
Conference Call Details
Horizon Global will host a conference call regarding third
quarter 2020 earnings on Thursday, November 5, 2020 at 8:30 a.m.
Eastern Time. Participants in the call are asked to register five
to ten minutes prior to the scheduled start time by dialing (866)
652-5200 and from outside the U.S. at (412) 317-6060. Please use
the conference identification number 10147302.
The third quarter 2020 results and supplemental materials,
including a presentation in PDF format, will be distributed before
the market opens on November 5, 2020 and will be available on the
Company’s website at www.horizonglobal.com prior to the start of the
call.
The conference call will be webcast simultaneously and in its
entirety through the Horizon Global website. Shareholders, media
representatives and others may participate in the webcast by
registering through the investor relations section on the Company’s
website.
A replay of the call will be available on Horizon Global’s
website or by phone by dialing (877) 344-7529 and from outside the
U.S. at (412) 317-0088. Please use the conference identification
number 10147302. The telephone replay will be available
approximately two hours after the end of the call and continue
through November 19, 2020.
About Horizon Global
Headquartered in Plymouth, MI, Horizon Global is the #1
designer, manufacturer and distributor of a wide variety of
high-quality, custom-engineered towing, trailering, cargo
management and other related accessory products in North America
and Europe. The Company serves OEMs, retailers, dealer networks and
the end consumer as the category leader in the automotive, leisure
and agricultural market segments. Horizon provides its customers
with outstanding products and services that reflect the Company's
commitment to market leadership, innovation and operational
excellence. The Company’s mission is to utilize forward-thinking
technology to develop and deliver best in-class products for our
customers, engage with our employees and realize value creation for
our shareholders.
Horizon Global is home to some of the world’s most recognized
brands in the towing and trailering industry, including: Draw-Tite,
Reese, Westfalia, BULLDOG, Fulton and Tekonsha. Horizon Global has
approximately 3,900 employees.
For more information, please visit www.horizonglobal.com.
Forward-Looking
Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements contained herein speak only as of the
date they are made and give our current expectations or forecasts
of future events. These forward-looking statements can be
identified by the use of forward-looking words, such as “may,”
“could,” “should,” “estimate,” “project,” “forecast,” “intend,”
“expect,” “anticipate,” “believe,” “target,” “plan” or other
comparable words, or by discussions of strategy that may involve
risks and uncertainties. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties which
could materially affect our business, financial condition or future
results including, but not limited to, risks and uncertainties with
respect to: the impact of the novel coronavirus (COVID-19) pandemic
on the Company’s business, results of operations, financial
condition and liquidity; the Company’s ability to regain compliance
with the New York Stock Exchange’s continued listing standards; the
Company’s debt, including the Company’s ability to refinance any
debt on commercially reasonable terms or at all; liabilities and
restrictions imposed by the Company’s debt instruments; market
demand; competitive factors; supply constraints; material and
energy costs; technology factors; litigation; government and
regulatory actions including the impact of any tariffs, quotas, or
surcharges; the Company’s accounting policies; future trends;
general economic and currency conditions; various conditions
specific to the Company’s business and industry; the success of the
Company’s action plan, including the actual amount of savings and
timing thereof; the success of the Company’s business improvement
initiatives in Europe-Africa, including the amount of savings and
timing thereof; the Company’s exposure to product liability claims
from customers and end users, and the costs associated therewith;
the Company’s ability to meet its covenants in the agreements
governing its debt; factors affecting the Company's business that
are outside of its control, including natural disasters, pandemics,
including the current COVID-19 pandemic, accidents and governmental
actions; and other risks that are discussed in the Company’s most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
or Current Reports on Form 8-K. The risks described herein are not
the only risks facing our Company. Additional risks and
uncertainties not currently known to us or that we currently deemed
to be immaterial also may materially adversely affect our business,
financial position and results of operations or cash flows. We
caution readers not to place undue reliance on such statements,
which speak only as of the date hereof. We do not undertake any
obligation to review or confirm analysts’ expectations or estimates
or to release publicly any revisions to any forward-looking
statement to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
(1)
"Cash and Availability" refers to cash and
cash equivalents and amounts of cash accessible but undrawn from
credit facilities.
(2)
Please refer to “Company and Business
Segment Financial Information” which details certain costs,
expense, other charges, that are included in the determination of
net income attributable to Horizon Global under GAAP, but that
management would not consider important in evaluating the quality
of the Company’s operating results. The Company’s management
utilizes Adjusted EBITDA as the key measure of company and segment
performance and for planning and forecasting purposes, as
management believes this measure is most reflective of the
operational profitability or loss of the Company and its operating
segments and provides management and investors with information to
evaluate the operating performance of its business and is
representative of its performance used to measure certain of its
financial covenants. Adjusted EBITDA should not be considered a
substitute for results prepared in accordance with U.S. GAAP and
should not be considered an alternative to net income attributable
to Horizon Global, which is the most directly comparable financial
measure to Adjusted EBITDA that is prepared in accordance with U.S.
GAAP.
(3)
Working Capital defined as "total current
assets" excluding "cash, cash equivalents and restricted cash",
less "total current liabilities" excluding "current maturities,
long-term debt" and "short-term operating lease liabilities".
Horizon Global
Corporation
Condensed Consolidated Balance
Sheets
(dollars in thousands)
September 30,
2020
December 31,
2019
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
39,810
$
11,770
Restricted cash
5,840
—
Receivables, net
106,650
71,680
Inventories
107,120
136,650
Prepaid expenses and other current
assets
9,910
8,570
Total current assets
269,330
228,670
Property and equipment, net
73,670
75,830
Operating lease right-of-use assets
47,380
45,770
Goodwill
3,120
4,350
Other intangibles, net
56,510
60,120
Deferred income taxes
390
430
Other assets
7,630
5,870
Total assets
$
458,030
$
421,040
Liabilities and Shareholders'
Equity
Current liabilities:
Short-term borrowings and current
maturities, long-term debt
$
8,740
$
4,310
Accounts payable
97,170
78,450
Short-term operating lease liabilities
11,750
9,880
Accrued liabilities
59,890
48,850
Total current liabilities
177,550
141,490
Gross long-term debt
259,020
236,550
Unamortized debt issuance costs and
discount
(23,380
)
(31,500
)
Long-term debt
235,640
205,050
Deferred income taxes
3,400
4,040
Long-term operating lease liabilities
48,070
48,070
Other long-term liabilities
15,460
13,790
Total liabilities
480,120
412,440
Total Horizon Global shareholders'
(deficit) equity
(17,340
)
12,340
Noncontrolling interest
(4,750
)
(3,740
)
Total shareholders' (deficit) equity
(22,090
)
8,600
Total liabilities and shareholders'
equity
$
458,030
$
421,040
Horizon Global
Corporation
Condensed Consolidated
Statements of Operations
(Unaudited - dollars in
thousands, except share and per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020
2019
2020
2019
Net sales
$
201,630
$
177,850
$
485,370
$
548,170
Cost of sales
(158,260
)
(149,560
)
(397,700
)
(460,010
)
Gross profit
43,370
28,290
87,670
88,160
Selling, general and administrative
expenses
(34,820
)
(41,100
)
(93,680
)
(113,140
)
Net gain (loss) on dispositions of
property and equipment
10
50
(80
)
1,500
Operating profit (loss)
8,560
(12,760
)
(6,090
)
(23,480
)
Other income (expense), net
690
(1,640
)
(1,430
)
(6,610
)
Interest expense
(7,560
)
(24,120
)
(23,970
)
(50,270
)
Income (loss) from continuing operations
before income tax
1,690
(38,520
)
(31,490
)
(80,360
)
Income tax (expense) benefit
(100
)
1,020
(170
)
2,330
Net income (loss) from continuing
operations
1,590
(37,500
)
(31,660
)
(78,030
)
Income (loss) from discontinued
operations, net of tax
—
182,750
(500
)
189,520
Net income (loss)
1,590
145,250
(32,160
)
111,490
Less: Net loss attributable to
noncontrolling interest
(340
)
(260
)
(1,010
)
(840
)
Net income (loss) attributable to Horizon
Global
$
1,930
$
145,510
$
(31,150
)
$
112,330
Net income (loss) per share
attributable to Horizon Global:
Basic:
Continuing operations
$
0.07
$
(1.47
)
$
(1.19
)
$
(3.05
)
Discontinued operations
—
7.21
(0.02
)
7.50
Total
$
0.07
$
5.74
$
(1.21
)
$
4.45
Diluted:
Continuing operations
$
0.06
$
(1.47
)
$
(1.19
)
$
(3.05
)
Discontinued operations
—
7.21
(0.02
)
7.50
Total
$
0.06
$
5.74
$
(1.21
)
$
4.45
Weighted average common shares
outstanding:
Basic
25,939,741
25,329,492
25,651,789
25,267,310
Diluted
33,329,106
25,329,492
25,651,789
25,267,310
Horizon Global
Corporation
Condensed Consolidated
Statements of Cash Flows
(unaudited - dollars in
thousands)
Nine Months Ended September
30,
2020
2019
Cash Flows from Operating
Activities:
Net (loss) income
$
(32,160
)
$
111,490
Less: (Loss) income from discontinued
operations
(500
)
189,520
Net loss from continuing operations
(31,660
)
(78,030
)
Adjustments to reconcile net loss from
continuing operations to net cash provided by (used for) operating
activities:
Net loss (gain) on dispositions of
property and equipment
80
(1,500
)
Depreciation
11,110
11,980
Amortization of intangible assets
5,040
4,800
Write off of operating lease assets
—
4,250
Amortization of original issuance discount
and debt issuance costs
11,450
18,570
Deferred income taxes
(820
)
(3,390
)
Non-cash compensation expense
2,190
1,790
Paid-in-kind interest
6,280
7,620
Increase in receivables
(35,170
)
(4,680
)
Decrease in inventories
30,100
1,920
Increase in prepaid expenses and other
assets
(4,080
)
(2,770
)
Increase (decrease) in accounts payable
and accrued liabilities
29,800
(15,560
)
Other, net
(130
)
(10,800
)
Net cash provided by (used for) operating
activities for continuing operations
24,190
(65,800
)
Cash Flows from Investing
Activities:
Capital expenditures
(8,090
)
(8,460
)
Net proceeds from sale of business
—
214,570
Net proceeds from disposition of property
and equipment
70
1,470
Net cash (used for) provided by investing
activities for continuing operations
(8,020
)
207,580
Cash Flows from Financing
Activities:
Proceeds from borrowings on credit
facilities
6,440
13,780
Repayments of borrowings on credit
facilities
(3,330
)
(6,520
)
Proceeds from Second Lien Term Loan, net
of issuance costs
—
35,520
Repayments of borrowings on First Lien
Term Loan, inclusive of transaction costs
—
(173,430
)
Proceeds from Revolving Credit Facility,
net of issuance costs
54,680
—
Repayments of borrowings on Revolving
Credit Facility
(28,300
)
—
Proceeds from ABL revolving debt, net of
issuance costs
8,000
68,790
Repayments of borrowings on ABL revolving
debt
(27,920
)
(112,510
)
Proceeds from Paycheck Protection Program
Loan
8,670
—
Proceeds from issuance of Series A
Preferred Stock
—
5,340
Proceeds from issuance of Warrants
—
5,380
Other, net
(320
)
(10
)
Net cash provided by (used for) financing
activities for continuing operations
17,920
(163,660
)
Discontinued Operations:
Net cash (used for) provided by
discontinued operating activities
(500
)
11,430
Net cash used for discontinued investing
activities
—
(1,120
)
Net cash provided by discontinued
financing activities
—
—
Net cash (used for) provided by
discontinued operations
(500
)
10,310
Effect of exchange rate changes on
cash, cash equivalents and restricted cash
290
280
Cash, Cash Equivalents and Restricted
Cash:
Increase (decrease) for the period
33,880
(11,290
)
At beginning of period
11,770
27,650
At end of period
$
45,650
$
16,360
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
4,990
$
19,730
Cash paid for taxes, net of refunds
$
990
$
480
Appendix I
Horizon Global Corporation Company and
Business Segment Financial Information (Unaudited - dollars in
thousands)
The Company’s management utilizes Adjusted EBITDA(2) as the key
measure of company and segment performance and for planning and
forecasting purposes, as management believes this measure is most
reflective of the operational profitability or loss of the Company
and its operating segments and provides management and investors
with information to evaluate the operating performance of its
business and is representative of its performance used to measure
certain of its financial covenants. Adjusted EBITDA(2) should not
be considered a substitute for results prepared in accordance with
U.S. GAAP and should not be considered an alternative to net income
attributable to Horizon Global, which is the most directly
comparable financial measure to Adjusted EBITDA(2) that is prepared
in accordance with U.S. GAAP. Adjusted EBITDA(2), as determined and
measured by Horizon Global, should also not be compared to
similarly titled measures reported by other companies. The Company
also uses operating income (loss) to measure stand-alone segment
performance.
Adjusted EBITDA(2) is defined as net income attributable to
Horizon Global before interest expense, income taxes, depreciation
and amortization, and before certain items, as applicable such as
severance, restructuring, relocation and related business
disruption costs, impairment of goodwill and other intangibles,
non-cash stock compensation, certain product liability recall and
litigation claims, acquisition and integration costs, gains
(losses) on business divestitures and other assets, board
transition support and non-cash unrealized foreign currency
remeasurement costs.
The following table summarizes Adjusted EBITDA(2) for our
operating segments for the three months ended September 30, 2020
and 2019:
Three Months Ended
September 30, 2020
Three Months Ended
September 30, 2019
Variance
Horizon Americas
Horizon Europe- Africa
Corporate
Consolidated
Horizon Americas
Horizon Europe- Africa
Corporate
Consolidated
Consolidated
(dollars in thousands)
(dollars in thousands)
Net income attributable to Horizon
Global
$
1,930
$
145,510
$
(143,580
)
Net loss attributable to noncontrolling
interest
(340
)
(260
)
(80
)
Net income
$
1,590
$
145,250
$
(143,660
)
Interest expense
7,560
24,120
(16,560
)
Income tax expense (benefit)
100
(1,020
)
1,120
Depreciation and amortization
5,620
6,250
(630
)
EBITDA
$
13,870
$
7,490
$
(6,490
)
$
14,870
$
(1,290
)
$
3,950
$
171,940
$
174,600
$
(159,730
)
Net loss attributable to noncontrolling
interest
—
340
—
340
—
260
—
260
80
Income from discontinued operations, net
of tax
—
—
—
—
—
—
(182,750
)
(182,750
)
182,750
Severance
—
(170
)
—
(170
)
(10
)
10
1,620
1,620
(1,790
)
Restructuring, relocation and related
business disruption costs
250
(20
)
150
380
(200
)
—
4,250
4,050
(3,670
)
Non-cash stock compensation
—
—
870
870
—
—
850
850
20
Loss (gain) on business divestitures and
other assets
420
—
(20
)
400
320
—
(1,320
)
(1,000
)
1,400
Product liability and litigation
claims
—
—
—
—
820
(4,270
)
—
(3,450
)
3,450
Debt issuance costs
—
—
530
530
—
—
1,310
1,310
(780
)
Unrealized foreign currency remeasurement
costs
980
(1,580
)
(500
)
(1,100
)
240
650
300
1,190
(2,290
)
Other
—
—
—
—
670
130
(530
)
270
(270
)
Adjusted EBITDA
$
15,520
$
6,060
$
(5,460
)
$
16,120
$
550
$
730
$
(4,330
)
$
(3,050
)
$
19,170
The following table summarizes Adjusted EBITDA(2) for our
operating segments for the nine months ended September 30, 2020 and
2019:
Nine Months Ended
September 30, 2020
Nine Months Ended
September 30, 2019
Variance
Horizon Americas
Horizon Europe- Africa
Corporate
Consolidated
Horizon Americas
Horizon Europe- Africa
Corporate
Consolidated
Consolidated
(dollars in thousands)
(dollars in thousands)
Net (loss) income attributable to
Horizon Global
$
(31,150
)
$
112,330
$
(143,480
)
Net loss attributable to noncontrolling
interest
(1,010
)
(840
)
(170
)
Net (loss) income
$
(32,160
)
$
111,490
$
(143,650
)
Interest expense
23,970
50,270
(26,300
)
Income tax expense (benefit)
170
(2,330
)
2,500
Depreciation and amortization
16,150
16,790
(640
)
EBITDA
$
24,160
$
3,150
$
(19,180
)
$
8,130
$
9,960
$
4,550
$
161,710
$
176,220
$
(168,090
)
Net loss attributable to noncontrolling
interest
—
1,010
—
1,010
—
840
—
840
170
Loss (income) from discontinued
operations, net of tax
—
—
500
500
—
—
(189,520
)
(189,520
)
190,020
Severance
530
(150
)
(10
)
370
(200
)
10
1,620
1,430
(1,060
)
Restructuring, relocation and related
business disruption costs
1,550
10
470
2,030
1,110
(1,410
)
4,250
3,950
(1,920
)
Non-cash stock compensation
—
—
2,190
2,190
—
—
1,820
1,820
370
Loss (gain) on business divestitures and
other assets
1,020
(180
)
20
860
1,280
3,630
—
4,910
(4,050
)
Board transition support
—
—
—
—
—
—
1,450
1,450
(1,450
)
Product liability and litigation
claims
—
1,510
—
1,510
820
50
—
870
640
Debt issuance costs
—
—
1,840
1,840
—
—
4,350
4,350
(2,510
)
Unrealized foreign currency remeasurement
costs
280
860
(490
)
650
160
1,210
440
1,810
(1,160
)
Other
—
—
—
—
870
(180
)
(630
)
60
(60
)
Adjusted EBITDA
$
27,540
$
6,210
$
(14,660
)
$
19,090
$
14,000
$
8,700
$
(14,510
)
$
8,190
$
10,900
Segment Information
The following table summarizes financial information for our
operating segments for the three months ended September 30, 2020
and 2019:
Three Months Ended September
30,
Change
2020
2019
$
%
(dollars in thousands)
Net Sales
Horizon Americas
$
119,140
$
96,220
$
22,920
23.8
%
Horizon Europe-Africa
82,490
81,630
860
1.1
%
Total
$
201,630
$
177,850
$
23,780
13.4
%
Gross Profit
Horizon Americas
$
32,960
$
17,270
$
15,690
90.9
%
Horizon Europe-Africa
10,410
11,020
(610
)
(5.5
%)
Total
$
43,370
$
28,290
$
15,080
53.3
%
Operating Profit (Loss)
Horizon Americas
$
13,170
$
(2,230
)
$
15,400
690.6
%
Horizon Europe-Africa
2,440
1,730
710
41.0
%
Corporate
(7,050
)
(12,260
)
5,210
42.5
%
Total
$
8,560
$
(12,760
)
$
21,320
167.1
%
Adjusted EBITDA
Horizon Americas
$
15,520
$
550
$
14,970
2,721.8
%
Horizon Europe-Africa
6,060
730
5,330
730.1
%
Corporate
(5,460
)
(4,330
)
(1,130
)
(26.1
%)
Total
$
16,120
$
(3,050
)
$
19,170
628.5
%
The following table summarizes financial information for our
operating segments for the nine months ended September 30, 2020 and
2019:
Nine Months Ended September
30,
Change
2020
2019
$
%
(dollars in thousands)
Net Sales
Horizon Americas
$
285,630
$
300,670
$
(15,040
)
(5.0
%)
Horizon Europe-Africa
199,740
247,500
(47,760
)
(19.3
%)
Total
$
485,370
$
548,170
$
(62,800
)
(11.5
%)
Gross Profit
Horizon Americas
$
70,720
$
62,080
$
8,640
13.9
%
Horizon Europe-Africa
16,950
26,080
(9,130
)
(35.0
%)
Total
$
87,670
$
88,160
$
(490
)
(0.6
%)
Operating Profit (Loss)
Horizon Americas
$
19,330
$
5,760
$
13,570
235.6
%
Horizon Europe-Africa
(6,040
)
120
(6,160
)
(5,133.3
%)
Corporate
(19,380
)
(29,360
)
9,980
34.0
%
Total
$
(6,090
)
$
(23,480
)
$
17,390
74.1
%
Adjusted EBITDA
Horizon Americas
$
27,540
$
14,000
$
13,540
96.7
%
Horizon Europe-Africa
6,210
8,700
(2,490
)
(28.6
%)
Corporate
(14,660
)
(14,510
)
(150
)
(1.0
%)
Total
$
19,090
$
8,190
$
10,900
133.1
%
Appendix II
Horizon Global Corporation Reconciliation of
Reported Revenue Growth to Constant Currency Basis
(Unaudited)
We evaluate growth in our operations on both an as reported and
a constant currency(1) basis. The constant currency presentation,
which is a non-GAAP measure, excludes the impact of fluctuations in
foreign currency exchange rates. We believe providing constant
currency information provides valuable supplemental information
regarding our growth, consistent with how we evaluate our
performance. Constant currency revenue results are calculated by
translating current year revenue in local currency using the prior
year's currency conversion rate. This non-GAAP measure has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for an analysis of our results as
reported under GAAP. Our use of this term may vary from the use of
similarly-titled measures by other issuers due to the potential
inconsistencies in the method of calculation and differences due to
items subject to interpretation.
Three Months Ended
September 30, 2020
Nine Months Ended
September 30, 2020
Horizon Americas
Horizon Europe-
Africa
Consolidated
Horizon Americas
Horizon Europe-
Africa
Consolidated
Revenue growth as reported
23.8
%
1.1
%
13.4
%
(5.0)
%
(19.3)
%
(11.5)
%
Less: currency impact
(0.5)
%
4.4
%
1.7
%
(0.3)
%
0.3
%
(0.1)
%
Revenue growth at constant currency
24.3
%
(3.3)
%
11.6
%
(4.7)
%
(19.6)
%
(11.4)
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201105005333/en/
Jeff Tryka, CFA Investor Relations, Lambert & Co. (616)
295-2509 jtryka@horizonglobal.com
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