LIVONIA, Mich., Feb. 13, 2018 /PRNewswire/ -- Tower
International, Inc. (NYSE: TOWR), a leading global manufacturer of
engineered automotive structural metal components and assemblies,
today announced fourth quarter 2017 results and provided its
business outlook for 2018.
- Revenue for the fourth quarter was $538
million compared with $462
million in the fourth quarter of 2016 representing a 16
percent increase.
- Net income was negative $3.9
million or $(0.19) per share,
compared with $16.9 million or
$0.81 per share in the fourth quarter
last year. As detailed below, this year's fourth quarter included a
non-cash charge of $27.2 million
related to U.S. tax reform legislation as well as other certain
items that, in aggregate, adversely impacted results by
$28.4 million. Excluding these items
and comparable items in the fourth quarter of 2016, adjusted
earnings per share amounted to $1.17,
an increase of 15 percent from the $1.02 reported a year ago.
- Adjusted EBITDA for the quarter was $61.1 million slightly ahead of the Company's
outlook and up 9 percent from $56.2
million a year ago.
- For the quarter, net cash provided by continuing operating
activities was $129 million. Cash
disbursed for purchases of equipment totaled $28 million resulting in Free Cash Flow of
$101 million.
- Tower also provided its three year net new business backlog of
$350 million for 2018 through 2020.
This represents an increase of more than 20 percent from the
company's previous three year backlog of $290 million provided last year.
- Full year 2018 outlook includes:
-
- Revenue growth of 7 percent to $2.14
billion, reflecting primarily net new business of
$125 million and favorable foreign
exchange;
- Adjusted EBITDA of $230
million;
- Expansion of Adjusted EBITDA Margin to 10.7 percent;
- Diluted Adjusted EPS of $4.10 per
share – up 9 percent from 2017; and
- Free Cash Flow of $50 million,
with strong free cash flow in the second half of the year more than
offsetting the expected cash outflow in the first half of the
year.
- The Company's outlook for first quarter 2018 includes revenue
of $550 million, Adjusted EBITDA of
$53 million and Diluted Adjusted
Earnings Per Share of 80 cents.
"Tower delivered solid financial results in the fourth quarter
as revenue, Adjusted EBITDA, Adjusted EPS and Free Cash Flow were
all above our previous outlook," said CEO Jim Gouin. "The Tower team did a great job
throughout 2017, remaining focused on safety and quality, while
meeting our customers' requirements and delivering impressive
financial results. We continue to invest in Tower's growth,
and are benefitting from the emerging industry trends, as
demonstrated by the $350 million of
net new business backlog. This new business coupled with our
exposure to trucks and SUVs in North
America position Tower for continued growth in the coming
years at a faster pace than the industry."
Tower to Host Conference Call Today at 11 a.m. EST
Tower will discuss its fourth quarter 2017 results and other
related matters in a conference call at 11
a.m. EST today. Participants may listen to the audio
portion of the conference call either through a live audio webcast
on the Company's website or by telephone. The slide
presentation and webcast can be accessed via the investor relations
portion of Tower's website www.towerinternational.com. To
dial into the conference call, domestic callers should dial (866)
393-4576, international callers should dial (706) 679-1462.
An audio recording of the call will be available approximately two
hours after the completion of the call. To access this
recording, please dial (855) 859-2056 (domestic) or (404) 537-3406
(international) and reference Conference I.D. #6286489. A
webcast replay will also be available and may be accessed via
Tower's website.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures: "adjusted EBITDA", "adjusted EBITDA margin", "adjusted
earnings per share", and "free cash flow". We define adjusted
EBITDA as net income/(loss) before interest, taxes, depreciation,
amortization, restructuring items and other adjustments described
in the reconciliations provided in this press release.
Adjusted EBITDA margin represents Adjusted EBITDA divided by
revenues, Adjusted earnings per share exclude certain income and
expense items described in the reconciliation provided in this
press release. Free cash flow is defined as cash provided by
continuing operating activities less cash disbursed for purchases
of property, plant and equipment. We use adjusted EBITDA,
adjusted EBITDA margin, adjusted earnings per share, and free cash
flow as supplements to information provided in accordance with
generally accepted accounting principles ("GAAP") in evaluating our
business and they are included in this press release because they
are principal factors upon which our management assesses
performance and in certain instances in measuring performance for
compensation purposes. Reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with GAAP are set forth
below. The non-GAAP measures presented above are not measures
of performance under GAAP. These measures should not be
considered as alternatives for the most directly comparable
financial measures calculated in accordance with GAAP. Other
companies in our industry may define these non-GAAP measures
differently than we do and, as a result, these non-GAAP measures
may not be comparable to similarly titled measures used by other
companies in our industry; and certain of our non-GAAP financial
measures exclude financial information that some may consider
important in evaluating our performance. Given the inherent
uncertainty regarding mark to market adjustments of financial
instruments, potential gain or loss on our Discontinued Operations,
potential restructuring expenses, and expenses related to our
long-term incentive compensation programs in any future period, a
reconciliation of forward-looking financial measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP is not feasible. Consequently, any
attempt to disclose such reconciliations would imply a degree of
precision that could be confusing or misleading to investors. The
magnitude of these items, however, may be significant.
Forward-Looking Statements and Risk Factors
This press release contains statements which constitute
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, including but not limited
to statements regarding the Company's projected full year earnings,
cash flow and revenues, net new business backlog, business growth,
adjusted EBITDA, adjusted EBITDA margin and free cash flow. The
forward-looking statements can be identified by words such as
"anticipate," "believe," "plan," "estimate," "expect," "intend,"
"project," "target," and other similar expressions.
Forward-looking statements are made as of the date of this press
release and are based upon management's current expectations and
beliefs concerning future developments and their potential effects
on us. Such forward-looking statements are not guarantees of
future performance. The following important factors, as well
as risk factors described in our reports filed with the SEC, could
cause our actual results to differ materially from estimates or
expectations reflected in such forward-looking statements:
- global automobile production volumes;
- the financial condition of our customers and suppliers;
- our ability to make scheduled payments of principal or interest
on our indebtedness and comply with the covenants and restrictions
contained in the instruments governing our indebtedness;
- our ability to refinance our indebtedness;
- risks associated with our non-U.S. operations, including
foreign exchange risks and economic uncertainty in some
regions;
- any increase in the expense and funding requirements of our
pension and other postretirement benefits;
- our customers' ability to obtain equity and debt financing for
their businesses;
- our dependence on our largest customers;
- pricing pressure from our customers;
- work stoppages or other labor issues affecting us or our
customers or suppliers;
- our ability to integrate acquired businesses;
- our ability to take advantage of emerging secular trends;
- risks associated with business divestitures; and
- costs or liabilities relating to environmental and safety
regulations.
We do not assume any obligation to update or revise the
forward-looking statements contained in this press release.
Contact:
Derek
Fiebig
Executive Director, Investor & External Relations
(248) 675-6457
fiebig.derek@towerinternational.com
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Amounts in
thousands, except share and per share amounts -
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31,
|
|
Year Ended Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
538,159
|
|
$
462,274
|
|
$
1,988,046
|
|
$
1,913,641
|
Cost of
sales
|
|
470,753
|
|
403,332
|
|
1,743,511
|
|
1,675,232
|
Gross profit
|
|
67,406
|
|
58,942
|
|
244,535
|
|
238,409
|
Selling, general, and
administrative expenses
|
|
30,162
|
|
35,427
|
|
118,061
|
|
131,552
|
Amortization
expense
|
|
110
|
|
105
|
|
443
|
|
449
|
Restructuring and
asset impairment charges, net
|
|
2,356
|
|
2,607
|
|
10,735
|
|
5,389
|
Operating
income
|
|
34,778
|
|
20,803
|
|
115,296
|
|
101,019
|
Interest
expense
|
|
5,802
|
|
3,451
|
|
13,735
|
|
21,618
|
Interest
income
|
|
133
|
|
506
|
|
330
|
|
614
|
Other
expense
|
|
-
|
|
-
|
|
575
|
|
6,481
|
Income before provision
for income taxes and income / (loss) from
discontinued operations
|
|
29,109
|
|
17,858
|
|
101,316
|
|
73,534
|
Provision for
income taxes
|
|
33,264
|
|
3,476
|
|
55,434
|
|
17,246
|
Income / (loss)
from continuing operations
|
|
(4,155)
|
|
14,382
|
|
45,882
|
|
56,288
|
Income / (loss) from
discontinued operations, net of tax
|
|
288
|
|
2,991
|
|
1,853
|
|
(17,008)
|
Net income
/ (loss)
|
|
(3,867)
|
|
17,373
|
|
47,735
|
|
39,280
|
Less: Net income
attributable to the noncontrolling interests
|
|
-
|
|
488
|
|
110
|
|
701
|
Net income / (loss)
attributable to Tower International, Inc.
|
|
$
(3,867)
|
|
$
16,885
|
|
$
47,625
|
|
$
38,579
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
20,536,983
|
|
20,345,078
|
|
20,498,668
|
|
20,864,321
|
Weighted average
diluted shares outstanding
|
|
20,536,983
|
|
20,775,024
|
|
20,828,888
|
|
21,222,183
|
|
|
|
|
|
|
|
|
|
Basic income per
share attributable to Tower International, Inc.:
|
|
|
|
|
|
|
|
|
Income / (loss) per
share from continuing operations
|
|
$
(0.20)
|
|
$
0.68
|
|
$
2.23
|
|
$
2.66
|
Income / (loss) per
share from discontinued operations
|
|
0.01
|
|
0.15
|
|
0.09
|
|
(0.82)
|
Income / (loss) per
share
|
|
(0.19)
|
|
0.83
|
|
2.32
|
|
1.85
|
|
|
|
|
|
|
|
|
|
Diluted income per
share attributable to Tower International, Inc.:
|
|
|
|
|
|
|
|
|
Income / (loss) per
share from continuing operations
|
|
$
(0.20)
|
|
$
0.67
|
|
$
2.20
|
|
$
2.62
|
Income / (loss) per
share from discontinued operations
|
|
0.01
|
|
0.14
|
|
0.09
|
|
(0.80)
|
Income / (loss) per
share
|
|
(0.19)
|
|
0.81
|
|
2.29
|
|
1.82
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
$
0.12
|
|
$
0.11
|
|
$
0.45
|
|
$
0.41
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
123,688
|
|
$
62,788
|
Accounts receivable,
net of allowance of $1,385 and $961
|
|
239,319
|
|
178,251
|
Inventories
|
|
78,745
|
|
71,710
|
Assets held for
sale
|
|
44,250
|
|
102,252
|
Prepaid tooling,
notes receivable, and other
|
|
78,481
|
|
103,023
|
Total current
assets
|
|
564,483
|
|
518,024
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
535,272
|
|
465,569
|
Goodwill
|
|
63,665
|
|
56,383
|
Deferred tax
asset
|
|
83,035
|
|
112,645
|
Other assets,
net
|
|
13,642
|
|
9,902
|
Total
assets
|
|
$
1,260,097
|
|
$
1,162,523
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Short-term debt and
current maturities of capital lease obligations
|
|
$
42,048
|
|
$
34,211
|
Accounts
payable
|
|
323,271
|
|
258,129
|
Accrued
liabilities
|
|
113,949
|
|
114,079
|
Liabilities held for
sale
|
|
17,336
|
|
53,310
|
Total current
liabilities
|
|
496,604
|
|
459,729
|
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
344,738
|
|
351,232
|
Obligations under
capital leases, net of current maturities
|
|
-
|
|
4,863
|
Deferred tax
liability
|
|
4,807
|
|
5,594
|
Pension
liability
|
|
47,813
|
|
61,627
|
Other non-current
liabilities
|
|
96,263
|
|
65,539
|
Total non-current
liabilities
|
|
493,621
|
|
488,855
|
Total
liabilities
|
|
990,225
|
|
948,584
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Tower International,
Inc.'s stockholders' equity
|
|
|
|
|
Common
stock
|
|
$
223
|
|
$
221
|
Additional
paid in capital
|
|
344,153
|
|
340,623
|
Treasury
stock
|
|
(36,408)
|
|
(35,645)
|
Accumulated
earnings / (deficit)
|
|
29,712
|
|
(14,021)
|
Accumulated
other comprehensive loss
|
|
(67,808)
|
|
(83,383)
|
Total Tower
International, Inc.'s stockholders' equity
|
|
269,872
|
|
207,795
|
Noncontrolling
interests in subsidiaries
|
|
-
|
|
6,144
|
Total stockholders'
equity
|
|
269,872
|
|
213,939
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$
1,260,097
|
|
$
1,162,523
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec. 31,
|
|
Year Ended Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
|
$
(3,867)
|
|
$
17,373
|
|
$
47,735
|
|
$
39,280
|
Less: Income / (loss)
from discontinued operations, net of tax
|
|
288
|
|
2,991
|
|
1,853
|
|
(17,008)
|
Income / (loss) from
continuing operations
|
|
(4,155)
|
|
14,382
|
|
45,882
|
|
56,288
|
|
|
|
|
|
|
|
|
|
Adjustments required
to reconcile income / (loss) from continuing operations to net
cash
provided by continuing operating activities:
|
|
|
|
|
|
|
|
|
Deferred income tax
provision
|
|
$
30,759
|
|
$
3,691
|
|
$
46,126
|
|
$
9,546
|
Depreciation and
amortization
|
|
22,431
|
|
19,086
|
|
77,284
|
|
72,469
|
Non-cash share-based
compensation
|
|
562
|
|
910
|
|
2,219
|
|
2,455
|
Pension income, net of
contributions
|
|
(1,606)
|
|
5,852
|
|
(11,512)
|
|
(1,999)
|
Change in working
capital and other operating items
|
|
80,835
|
|
61,412
|
|
4,740
|
|
(1,051)
|
Net cash
provided by continuing operating activities
|
|
$
128,826
|
|
$
105,333
|
|
$
164,739
|
|
$
137,708
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash disbursed for
purchases of property, plant, and equipment, net
|
|
$
(27,466)
|
|
$
(42,767)
|
|
$
(104,153)
|
|
$
(116,283)
|
Proceeds from
disposition of joint venture, net
|
|
-
|
|
4,546
|
|
15,944
|
|
4,546
|
Net cash used in
continuing investing activities
|
|
$
(27,466)
|
|
$
(38,221)
|
|
$
(88,209)
|
|
$
(111,737)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings
|
|
$
63,962
|
|
$
123,081
|
|
$
599,888
|
|
$
581,833
|
Repayments of
borrowings
|
|
(82,687)
|
|
(169,482)
|
|
(604,716)
|
|
(587,146)
|
Repayments on Term Loan
Credit Facility
|
|
-
|
|
-
|
|
-
|
|
(50,000)
|
Original issuance
discount
|
|
-
|
|
-
|
|
(1,808)
|
|
-
|
Debt issuance
costs
|
|
-
|
|
-
|
|
(4,747)
|
|
-
|
Dividend payment to
Tower stockholders
|
|
(2,465)
|
|
(2,236)
|
|
(9,221)
|
|
(8,570)
|
Proceeds from stock
options exercised
|
|
219
|
|
237
|
|
1,313
|
|
305
|
Purchase of treasury
stock
|
|
-
|
|
(1,045)
|
|
(763)
|
|
(19,578)
|
Net cash used in
continuing financing activities
|
|
$
(20,971)
|
|
$
(49,445)
|
|
$
(20,054)
|
|
$
(83,156)
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Net cash from
discontinued operating activities
|
|
$
2,790
|
|
$
2,318
|
|
$
2,468
|
|
$
6,032
|
Net cash used in
discontinued investing activities
|
|
(1,340)
|
|
(1,479)
|
|
(2,591)
|
|
(3,589)
|
Net cash from / (used
in) discontinued financing activities
|
|
(846)
|
|
(542)
|
|
291
|
|
(3,441)
|
Net cash from /
(used in) discontinued operations
|
|
$
604
|
|
$
297
|
|
$
168
|
|
$
(998)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on continuing cash and cash equivalents
|
|
$
(902)
|
|
$
(2,392)
|
|
$
4,256
|
|
$
(623)
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
$
80,091
|
|
$
15,572
|
|
$
60,900
|
|
$
(58,806)
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS:
|
|
|
|
|
|
|
|
|
Beginning of
period
|
|
$
43,597
|
|
$
47,216
|
|
$
62,788
|
|
$
121,594
|
|
|
|
|
|
|
|
|
|
End of
period
|
|
$
123,688
|
|
$
62,788
|
|
$
123,688
|
|
$
62,788
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
SEGMENT DATA AND
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
|
(Amounts in
thousands - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Data
|
|
Three Months Ended
Dec. 31,
|
|
|
2017
|
|
2016
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Revenues
|
|
Adjusted
EBITDA
|
Europe
|
|
$
197,893
|
|
$
12,515
|
|
$
155,243
|
|
$
18,007
|
North
America
|
|
340,266
|
|
48,579
|
|
307,031
|
|
38,238
|
Consolidated
|
|
$
538,159
|
|
$
61,094
|
|
$
462,274
|
|
$
56,245
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended Dec.
31,
|
|
|
2017
|
|
2016
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Revenues
|
|
Adjusted
EBITDA
|
Europe
|
|
$
664,849
|
|
$
45,518
|
|
$
639,307
|
|
$
55,314
|
North
America
|
|
1,323,197
|
|
164,218
|
|
1,274,334
|
|
146,408
|
Consolidated
|
|
$
1,988,046
|
|
$
209,736
|
|
$
1,913,641
|
|
$
201,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months Ended
Dec. 31,
|
|
Year Ended Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income / (loss)
attributable to Tower International, Inc.
|
|
$
(3,867)
|
|
$
16,885
|
|
$
47,625
|
|
$
38,579
|
Restructuring and
asset impairment charges, net
|
|
2,356
|
|
2,607
|
|
10,735
|
|
5,389
|
Depreciation and
amortization
|
|
22,431
|
|
19,086
|
|
77,284
|
|
72,469
|
Acquisition costs and
other
|
|
151
|
|
104
|
|
425
|
|
422
|
Long-term
compensation expense
|
|
1,378
|
|
5,315
|
|
5,996
|
|
14,093
|
Pension actuarial
loss
|
|
-
|
|
8,330
|
|
-
|
|
8,330
|
Interest expense,
net
|
|
5,669
|
|
2,945
|
|
13,405
|
|
21,004
|
Other
expense
|
|
-
|
|
-
|
|
575
|
|
6,481
|
Provision for income
taxes
|
|
33,264
|
|
3,476
|
|
55,434
|
|
17,246
|
(Income) / loss from
discontinued operations, net of tax
|
|
(288)
|
|
(2,991)
|
|
(1,853)
|
|
17,008
|
Net income
attributable to noncontrolling interests
|
|
-
|
|
488
|
|
110
|
|
701
|
Adjusted
EBITDA
|
|
$
61,094
|
|
$
56,245
|
|
$
209,736
|
|
$
201,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Reconciliation
|
|
Three Months Ended
Dec. 31,
|
|
Year Ended Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by
continuing operating activities
|
|
$
128,826
|
|
$
105,333
|
|
$
164,739
|
|
$
137,708
|
Cash disbursed for
purchases of PP&E
|
|
(27,466)
|
|
(42,767)
|
|
(104,153)
|
|
(116,283)
|
Free cash
flow
|
|
$
101,360
|
|
$
62,566
|
|
$
60,586
|
|
$
21,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
Reconciliation
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Short-term debt and
current maturities of capital lease obligations
|
|
$
42,048
|
|
$
34,211
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
352,886
|
|
357,298
|
|
|
|
|
Debt issue
costs
|
|
(8,148)
|
|
(6,066)
|
|
|
|
|
Obligations under
capital leases, net of current maturities
|
|
-
|
|
4,863
|
|
|
|
|
Total debt
|
|
386,786
|
|
390,306
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
(123,688)
|
|
(62,788)
|
|
|
|
|
Net debt
|
|
$
263,098
|
|
$
327,518
|
|
|
|
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Pension actuarial
loss
|
|
$
-
|
|
$
(5,415)
|
|
$
-
|
|
$
(8,330)
|
Selling, general,
and administrative expenses
|
|
|
|
|
|
|
|
|
One-time CEO
compensation awards
|
|
-
|
|
(1,375)
|
|
-
|
|
(2,115)
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
One-time restructuring
actions
|
|
(1,107)
|
|
-
|
|
(1,658)
|
|
-
|
Lease buyout of
previously closed facility
|
|
-
|
|
(1,186)
|
|
-
|
|
(1,824)
|
Interest
expense
|
|
|
|
|
|
|
|
|
Mark-to-market gain /
(loss) on derivative financial instruments
|
|
(393)
|
|
653
|
|
(634)
|
|
1,005
|
Provision for
income taxes
|
|
|
|
|
|
|
|
|
U.S. tax
reform
|
|
(27,163)
|
|
-
|
|
(27,163)
|
|
-
|
Release of valuation
allowances, net
|
|
-
|
|
553
|
|
-
|
|
553
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
288
|
|
2,991
|
|
288
|
|
2,991
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests*
|
|
-
|
|
(488)
|
|
-
|
|
(488)
|
Total items included in
net income, net of tax
|
|
$
(28,375)
|
|
$
(4,267)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss)
attributable to Tower International, Inc.
|
|
$
(3,867)
|
|
$
16,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,537
|
|
20,345
|
|
|
|
|
Diluted
|
|
20,537
|
|
20,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income / (loss) per
common share (GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.19)
|
|
$
0.83
|
|
|
|
|
Diluted
|
|
(0.19)
|
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)**
|
|
$
1.17
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
attributable to noncontrolling interests of discontinued
operations
|
|
|
|
|
|
|
|
|
** For the three
months ended December 31, 2017 diluted share count of 20.9 million
was
used to calculate diluted adjusted earnings per share.
|
|
|
|
|
|
|
|
|
TOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CERTAIN ITEMS
INCLUDED IN NET INCOME
|
(Amounts in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
After
tax
|
|
Before
tax
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
Dec.
31,
|
|
Dec.
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Income / (expense)
items included in net income, net of tax:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
|
|
Pension actuarial
loss
|
|
$
-
|
|
$
(5,415)
|
|
$
-
|
|
$
(8,330)
|
Selling, general,
and administrative expenses
|
|
|
|
|
|
|
|
|
One-time CEO
compensation awards
|
|
-
|
|
(2,477)
|
|
-
|
|
(3,812)
|
Restructuring and
asset impairment charges, net
|
|
|
|
|
|
|
|
|
One-time restructuring
actions
|
|
(5,687)
|
|
-
|
|
(8,942)
|
|
-
|
Lease buyout of
previously closed facility
|
|
-
|
|
(1,186)
|
|
-
|
|
(1,824)
|
Interest
expense
|
|
|
|
|
|
|
|
|
Mark-to-market gain /
(loss) on derivative financial instruments
|
|
3,278
|
|
(1,565)
|
|
5,287
|
|
(2,407)
|
Acceleration of the
amortization of debt issue costs and OID
|
|
-
|
|
(481)
|
|
-
|
|
(740)
|
Other
expense
|
|
|
|
|
|
|
|
|
Debt refinancing
costs
|
|
(357)
|
|
-
|
|
(575)
|
|
-
|
European divestiture
expenses
|
|
-
|
|
(4,476)
|
|
-
|
|
(6,481)
|
Provision for
income taxes
|
|
|
|
|
|
|
|
|
U.S. tax
reform
|
|
(27,163)
|
|
-
|
|
(27,163)
|
|
-
|
Establishment of
valuation allowance
|
|
(2,448)
|
|
-
|
|
(2,448)
|
|
-
|
Release of valuation
allowances, net
|
|
-
|
|
553
|
|
-
|
|
553
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
Loss on sale of joint
venture
|
|
(2,596)
|
|
-
|
|
(2,596)
|
|
-
|
Income / (loss) from
discontinued operations
|
|
4,449
|
|
(17,008)
|
|
4,449
|
|
(17,008)
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests*
|
|
(110)
|
|
(701)
|
|
(110)
|
|
(701)
|
Total items included in
net income, net of tax
|
|
$
(30,634)
|
|
$
(32,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Tower International, Inc.
|
|
$
47,625
|
|
$
38,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Average
shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
|
20,499
|
|
20,864
|
|
|
|
|
Diluted
|
|
20,829
|
|
21,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share (GAAP)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
2.32
|
|
$
1.85
|
|
|
|
|
Diluted
|
|
2.29
|
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per share (non-GAAP)
|
|
$
3.76
|
|
$
3.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
attributable to noncontrolling interests of discontinued
operations
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/tower-international-reports-fourth-quarter-results-and-provides-outlook-for-2018-300597495.html
SOURCE Tower International, Inc.