VAN BUREN TOWNSHIP, Mich.,
Oct. 27, 2016 /PRNewswire/ --
- Solid financial performance – total Visteon
- Sales of $770
million
- Net income of $28
million
- Adjusted EBITDA of $75
million
- Electronics Product Group performance
- Sales of $749
million
- Adjusted EBITDA of $75
million
- Adjusted free cash flow of $23
million
- All-time high order backlog of $16.2 billion
- Secured $4.1 billion of new
business awards (lifetime revenue) in first three quarters of
2016
- Third-quarter awards totaling $1.3
billion
- Wins included second major award for
SmartCore™ cockpit domain controller
technology
- Increased low end of 2016 full-year guidance for adjusted
EBITDA and adjusted free cash flow
- Accelerated share buyback program completed in October,
with incremental 1.2 million shares delivered
Visteon Corporation (NYSE: VC) today announced third-quarter
2016 results, reporting sales of $770
million and net income attributable to Visteon of
$28 million, or $0.81 per diluted share. Adjusted EBITDA, a
non-GAAP financial measure as defined below, was $75 million for the third quarter, compared with
$65 million in the same period last
year. Adjusted net income, a non-GAAP financial measure as defined
below, was $38 million for the third
quarter, or $1.10 per diluted share.
Average diluted shares outstanding during the third quarter totaled
34.4 million.
In the first three quarters of 2016, global vehicle
manufacturers awarded Visteon new business wins amounting to
$4.1 billion of lifetime revenue.
Third-quarter wins totaled $1.3
billion. The ongoing backlog, defined as cumulative
remaining life-of-program booked sales, was approximately
$16.2 billion as of Sept. 30, 2016.
"During the quarter, our engineering and manufacturing execution
was very strong, and we continue to improve margins and free cash
flow despite lower than expected production volumes," said Visteon
President and CEO Sachin Lawande.
"We also continue to win new business at a record pace. Our
third-quarter wins included our second major award for our
SmartCore™ cockpit domain controller technology for a 2020 European
vehicle program, as well as a fully reconfigurable instrument
cluster that extends this technology to a broader range of
vehicles."
Lawande added: "Our third-quarter results demonstrate our
ability to increase margins while focusing on delivering long-term
growth. As a result of our strong performance, we are increasing
the low end of our full-year guidance for Electronics Product Group
adjusted EBITDA and adjusted free cash flow."
Third Quarter in Review
Visteon reported third-quarter sales of $770 million, a decrease of $38 million compared with the same quarter last
year. Electronics Product Group sales totaled
$749 million in the third quarter of
2016, a decrease of $22 million from
the third quarter last year. The decrease is primarily
related to lower production volumes and customer pricing partially
offset by new business. Other operations sales totaled
$21 million in the third quarter of
2016, a decrease of $16 million from
the third quarter last year, primarily related to the sale of an
Interiors European facility in 2015.
For the Electronics Product Group, on a regional basis,
Asia accounted for 41 percent of
sales, Europe 29 percent,
North America 28 percent, and
South America 2 percent.
Visteon gross margin for the third quarter of 2016 was
$105 million or 13.6 percent of
sales, 0.6 points higher than the prior year. Selling, general and
administrative expenses were $53
million, or 6.9 percent of sales, for the third quarter,
compared with $59 million, or 7.3
percent of sales, a year earlier.
For the third quarter of 2016, the company reported net income
attributable to Visteon of $28
million, or earnings per share of $0.81 per diluted share, compared with
$5 million and $0.12 for the same period in 2015. The third
quarter improved by $23 million
compared with the same period last year, primarily reflecting
increased net income related to the Electronics Product Group and
discontinued operations.
Third-quarter Visteon net income includes $13 million of impairment-related charges, and
$5 million of restructuring expense,
partially offset by income from discontinued operations of
$7 million and $1 million in net gain on the sale of
non-consolidated affiliates. Adjusted net income, which excludes
these costs, was $38 million, or
$1.10 per share.
Adjusted EBITDA for the Electronics Product Group was
$75 million for the third quarter,
compared with $67 million for the
same quarter last year. The improvement primarily reflected cost
efficiencies. Adjusted EBITDA for Other Operations was
break-even, $2 million higher than
adjusted EBITDA for the third quarter of 2015.
Cash and Debt Balances
As of Sept. 30, 2016, Visteon had
global cash balances totaling $854
million. Total debt as of Sept.
30 was $371 million.
For the third quarter of 2016, Visteon generated $24 million of cash from operations, compared
with $70 million in the same period a
year earlier. Capital expenditures for the third quarter of 2016
were $19 million, compared with
$29 million during the third quarter
of 2015. Adjusted free cash flow was $25
million in the quarter, compared with $77 million in the third quarter of 2015.
Adjusted free cash flow decreased year over year, reflecting timing
of trade working capital and higher cash taxes.
Visteon generated $33 million of
cash from operations related to the Electronics Product Group in
the third quarter. Capital expenditures for the Electronics Product
Group totaled $18 million and
adjusted free cash flow was $23
million.
Share Repurchase
During the first quarter of 2016, Visteon entered into an
accelerated stock buyback program with a third-party financial
institution to purchase shares of common stock for an aggregate
purchase price of $395 million. Under
the program, Visteon paid the financial institution $395 million and received an initial delivery of
4,370,678 shares of common stock using a reference price of
$72.30. The program was concluded in
October 2016 and the company received
an additional 1,211,979 shares. In total, Visteon purchased
5,582,657 shares at an average price of $70.75 under this program.
Full-Year 2016 Outlook
Visteon increased the low-point for full-year 2016 guidance for
adjusted EBITDA and adjusted free cash flow. Visteon's Electronics
Product Group sales guidance is $3.1
billion. Adjusted EBITDA for the Electronics Product Group
is projected in the range of $325 million to
$335 million. Adjusted free cash flow, as defined below, for
the Electronics Product Group is projected in the range of
$125 million to $150 million.
About Visteon
Visteon is a global company that designs, engineers and
manufactures innovative cockpit electronics products and connected
car solutions for most of the world's major vehicle manufacturers.
Visteon is a leading provider of instrument clusters, head-up
displays, information displays, infotainment, audio systems, and
telematics solutions; its brands include Lightscape®, OpenAir® and
SmartCore™. Visteon also supplies embedded multimedia and
smartphone connectivity software solutions to the global automotive
industry. Headquartered in Van Buren
Township, Michigan, Visteon has approximately 10,000
employees at more than 40 facilities in 18 countries. Visteon had
sales of $3.25 billion in 2015. Learn
more at www.visteon.com.
Conference Call and Presentation
Today, Thursday, Oct. 27, at
9 a.m. EDT, the company will host a
conference call for the investment community to discuss the
quarter's results and other related items. The conference call is
available to the general public via a live audio webcast.
The dial-in numbers to participate in the call are:
U.S./Canada:
866-411-5196
Outside U.S./Canada:
970-297-2404
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, the financial
results news release, related presentation materials and other
supplemental information will be accessible through Visteon's
website at www.visteon.com.
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
89207584. The phone replay will be available for one week following
the conference call.
Forward-looking Information
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including, but not limited to: (1) conditions within
the automotive industry, including (i) the automotive vehicle
production volumes and schedules of our customers, (ii) the
financial condition of our customers and the effects of any
restructuring or reorganization plans that may be undertaken by our
customers or suppliers, including work stoppages, and (iii)
possible disruptions in the supply of commodities to us or our
customers due to financial distress, work stoppages, natural
disasters or civil unrest; (2) our ability to satisfy future
capital and liquidity requirements; including our ability to access
the credit and capital markets at the times and in the amounts
needed and on terms acceptable to us; our ability to comply with
financial and other covenants in our credit agreements; and the
continuation of acceptable supplier payment terms; (3) our ability
to satisfy pension and other post-employment benefit obligations;
(4) our ability to access funds generated by foreign subsidiaries
and joint ventures on a timely and cost-effective basis; (5) our
ability to execute on our transformational plans and cost-reduction
initiatives in the amounts and on the timing contemplated; (6)
general economic conditions, including changes in interest rates,
currency exchange rates and fuel prices; (7) the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations; (8) increases in raw material
and energy costs and our ability to offset or recover these costs,
increases in our warranty, product liability and recall costs or
the outcome of legal or regulatory proceedings to which we are or
may become a party; and (9) those factors identified in our filings
with the SEC (including our Annual Report on Form 10-K for the
fiscal year ended Dec. 31, 2015).
Caution should be taken not to place undue reliance on our
forward-looking statements, which represent our view only as of the
date of this release, and which we assume no obligation to update.
The financial results presented herein are preliminary and
unaudited; final financial results will be included in the
company's Quarterly Report on Form 10-Q for the fiscal quarter
ended Sept. 30, 2016. New business wins and rewins do not
represent firm orders or firm commitments from customers, but are
based on various assumptions, including the timing and duration of
product launches, vehicle production levels, customer price
reductions and currency exchange rates.
Use of Non-GAAP Financial Information
This press release contains information about Visteon's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
comparable GAAP financial measures for 2016 is not intended to
indicate that Visteon is explicitly or implicitly providing
projections on those GAAP financial measures, and actual results
for such measures are likely to vary from those presented. The
reconciliations include all information reasonably available to the
company at the date of this press release and the adjustments that
management can reasonably predict.
Follow Visteon:
www.twitter.com/visteon
www.youtube.com/visteon
http://blog.visteon.com
www.google.com/+visteon
www.linkedin.com/company/visteon
https://www.facebook.com/VisteonCorporation
https://www.instagram.com/visteon
http://www.slideshare.net/VisteonCorporation
https://vine.co/u/1264235937429684224
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Dollars in
Millions, Except Per Share Data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Sales
|
$
|
770
|
|
|
$
|
808
|
|
|
$
|
2,345
|
|
|
$
|
2,436
|
|
Cost of
sales
|
665
|
|
|
703
|
|
|
2,010
|
|
|
2,120
|
|
Gross
margin
|
105
|
|
|
105
|
|
|
335
|
|
|
316
|
|
Selling, general and
administrative expenses
|
53
|
|
|
59
|
|
|
163
|
|
|
182
|
|
Restructuring
expense
|
5
|
|
|
3
|
|
|
22
|
|
|
18
|
|
Interest expense,
net
|
5
|
|
|
2
|
|
|
10
|
|
|
13
|
|
Equity in net income
(loss) of non-consolidated affiliates, net
|
—
|
|
|
(3)
|
|
|
3
|
|
|
8
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Gain on sale of
non-consolidated affiliates, net
|
1
|
|
|
—
|
|
|
1
|
|
|
62
|
|
Other expense,
net
|
13
|
|
|
7
|
|
|
17
|
|
|
15
|
|
Income before income
taxes
|
30
|
|
|
31
|
|
|
127
|
|
|
153
|
|
Provision for income
taxes
|
5
|
|
|
10
|
|
|
27
|
|
|
43
|
|
Net income from
continuing operations
|
25
|
|
|
21
|
|
|
100
|
|
|
110
|
|
Income (loss) from
discontinued operations, net of tax
|
7
|
|
|
(11)
|
|
|
(15)
|
|
|
2,194
|
|
Net income
|
32
|
|
|
10
|
|
|
85
|
|
|
2,304
|
|
Net income
attributable to non-controlling interests
|
4
|
|
|
5
|
|
|
12
|
|
|
41
|
|
Net income
attributable to Visteon Corporation
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
73
|
|
|
$
|
2,263
|
|
|
|
|
|
|
|
|
|
Earnings per share
data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.62
|
|
|
$
|
0.39
|
|
|
$
|
2.47
|
|
|
$
|
2.17
|
|
Discontinued operations
|
0.21
|
|
|
(0.27)
|
|
|
(0.42)
|
|
|
50.58
|
|
Basic earnings per
share attributable to Visteon Corporation
|
$
|
0.83
|
|
|
$
|
0.12
|
|
|
$
|
2.05
|
|
|
$
|
52.75
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
0.61
|
|
|
$
|
0.38
|
|
|
$
|
2.44
|
|
|
$
|
2.12
|
|
Discontinued operations
|
0.20
|
|
|
(0.26)
|
|
|
(0.41)
|
|
|
49.43
|
|
Diluted earnings per
share attributable to Visteon Corporation
|
$
|
0.81
|
|
|
$
|
0.12
|
|
|
$
|
2.03
|
|
|
$
|
51.55
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
34.0
|
|
|
40.5
|
|
|
35.6
|
|
|
42.9
|
|
Diluted
|
34.4
|
|
|
41.4
|
|
|
36.0
|
|
|
43.9
|
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
35
|
|
|
$
|
(18)
|
|
|
$
|
106
|
|
|
$
|
2,305
|
|
Comprehensive income
attributable to Visteon Corporation
|
$
|
31
|
|
|
$
|
(19)
|
|
|
$
|
96
|
|
|
$
|
2,277
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
|
September
30
|
|
December
31
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
850
|
|
|
$
|
2,728
|
|
Short-term
investments
|
—
|
|
|
47
|
|
Restricted
cash
|
4
|
|
|
8
|
|
Accounts receivable,
net
|
497
|
|
|
502
|
|
Inventories,
net
|
176
|
|
|
187
|
|
Other current
assets
|
200
|
|
|
581
|
|
Total current
assets
|
1,727
|
|
|
4,053
|
|
|
|
|
|
Property and
equipment, net
|
342
|
|
|
351
|
|
Intangible assets,
net
|
137
|
|
|
133
|
|
Investments in
non-consolidated affiliates
|
47
|
|
|
56
|
|
Other non-current
assets
|
120
|
|
|
88
|
|
Total
assets
|
$
|
2,373
|
|
|
$
|
4,681
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Distribution
payable
|
$
|
15
|
|
|
$
|
1,751
|
|
Short-term debt,
including current portion of long-term debt
|
24
|
|
|
37
|
|
Accounts
payable
|
429
|
|
|
482
|
|
Accrued employee
liabilities
|
108
|
|
|
132
|
|
Other current
liabilities
|
293
|
|
|
370
|
|
Total current
liabilities
|
869
|
|
|
2,772
|
|
|
|
|
|
Long-term
debt
|
347
|
|
|
346
|
|
Employee
benefits
|
256
|
|
|
268
|
|
Deferred tax
liabilities
|
25
|
|
|
21
|
|
Other non-current
liabilities
|
82
|
|
|
75
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
1
|
|
|
1
|
|
Additional paid-in
capital
|
1,246
|
|
|
1,345
|
|
Retained
earnings
|
1,267
|
|
|
1,194
|
|
Accumulated other
comprehensive loss
|
(167)
|
|
|
(190)
|
|
Treasury
stock
|
(1,699)
|
|
|
(1,293)
|
|
Total Visteon
Corporation stockholders' equity
|
648
|
|
|
1,057
|
|
Non-controlling
interests
|
146
|
|
|
142
|
|
Total
equity
|
794
|
|
|
1,199
|
|
Total liabilities and
equity
|
$
|
2,373
|
|
|
$
|
4,681
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS 1
(Dollars in
Millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING
|
|
|
|
|
|
|
|
Net income
|
$
|
32
|
|
|
$
|
10
|
|
|
$
|
85
|
|
|
$
|
2,304
|
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
21
|
|
|
20
|
|
|
62
|
|
|
147
|
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
1
|
|
|
2
|
|
|
(2)
|
|
|
—
|
|
Non-cash stock-based
compensation
|
2
|
|
|
1
|
|
|
6
|
|
|
7
|
|
Loss (gain) on
Climate Transaction
|
—
|
|
|
—
|
|
|
2
|
|
|
(2,332)
|
|
Loss on divestitures
and impairments
|
2
|
|
|
1
|
|
|
4
|
|
|
17
|
|
Gain on sale of
non-consolidated affiliates
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(62)
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Other non-cash
items
|
14
|
|
|
1
|
|
|
15
|
|
|
4
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(12)
|
|
|
11
|
|
|
15
|
|
|
(7)
|
|
Inventories
|
10
|
|
|
3
|
|
|
15
|
|
|
(29)
|
|
Accounts
payable
|
(28)
|
|
|
16
|
|
|
(45)
|
|
|
48
|
|
Accrued income
taxes
|
7
|
|
|
(11)
|
|
|
(39)
|
|
|
135
|
|
Other assets and
other liabilities
|
(24)
|
|
|
16
|
|
|
(79)
|
|
|
37
|
|
Net cash provided
from operating activities
|
24
|
|
|
70
|
|
|
38
|
|
|
274
|
|
INVESTING
|
|
|
|
|
|
|
|
Capital
expenditures
|
(19)
|
|
|
(29)
|
|
|
(56)
|
|
|
(151)
|
|
Climate Transaction
withholding tax refund
|
—
|
|
|
—
|
|
|
356
|
|
|
—
|
|
Proceeds from Climate
Transaction
|
—
|
|
|
—
|
|
|
—
|
|
|
2,664
|
|
Short-term
investments
|
—
|
|
|
(52)
|
|
|
47
|
|
|
(52)
|
|
Loan to
non-consolidated affiliates, net of repayments
|
4
|
|
|
1
|
|
|
(8)
|
|
|
(9)
|
|
Proceeds from asset
sales and business divestitures
|
11
|
|
|
—
|
|
|
15
|
|
|
92
|
|
Payments for
acquisition and divestiture of businesses
|
(15)
|
|
|
5
|
|
|
(15)
|
|
|
(19)
|
|
Other
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
Net cash (used by)
provided from investing activities
|
(19)
|
|
|
(73)
|
|
|
339
|
|
|
2,531
|
|
FINANCING
|
|
|
|
|
|
|
|
Short-term debt,
net
|
(1)
|
|
|
5
|
|
|
(11)
|
|
|
(1)
|
|
Principal payments on
debt
|
(1)
|
|
|
—
|
|
|
(2)
|
|
|
(250)
|
|
Distribution
payment
|
—
|
|
|
—
|
|
|
(1,736)
|
|
|
—
|
|
Repurchase of common
stock
|
—
|
|
|
—
|
|
|
(500)
|
|
|
(500)
|
|
Dividends paid to
non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(31)
|
|
Exercised warrants
and stock options
|
—
|
|
|
5
|
|
|
—
|
|
|
24
|
|
Stock based
compensation tax withholding payments
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Net cash (used by)
provided from financing activities
|
(2)
|
|
|
10
|
|
|
(2,260)
|
|
|
(759)
|
|
Effect of exchange
rate changes on cash and equivalents
|
2
|
|
|
(4)
|
|
|
6
|
|
|
(13)
|
|
Net increase
(decrease) in cash and equivalents
|
5
|
|
|
3
|
|
|
(1,877)
|
|
|
2,033
|
|
Cash and equivalents
at beginning of period
|
847
|
|
|
2,857
|
|
|
2,729
|
|
|
827
|
|
Cash and equivalents
at end of period
|
$
|
852
|
|
|
$
|
2,860
|
|
|
$
|
852
|
|
|
$
|
2,860
|
|
1 The Company has combined cash flows from
discontinued operations with cash flows from continuing operations
within the operating, investing and financing categories. As
such, cash and equivalents above include amounts reflected as
assets held for sale within other current assets on the
Consolidated Balance Sheets.
VISTEON CORPORATION AND
SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited, Dollars in Millions)
Adjusted EBITDA: Adjusted EBITDA is presented as a
supplemental measure of the Company's performance that management
believes is useful to investors because the excluded items may vary
significantly in timing or amounts and/or may obscure trends useful
in evaluating and comparing the Company's operating activities
across reporting periods. The Company defines Adjusted EBITDA
as net income attributable to the Company adjusted to eliminate the
impact of depreciation and amortization, restructuring
expense, net interest expense, loss on debt extinguishment, equity
in net income of non-consolidated affiliates, loss on divestiture,
gain on non-consolidated affiliate transactions, other net expense,
provision for income taxes, discontinued operations, net income
attributable to non-controlling interests, non-cash stock-based
compensation expense, pension settlement gains and other
non-operating gains and losses. Because not all companies use
identical calculations, this presentation of Adjusted EBITDA may
not be comparable to similarly titled measures of other
companies.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
Total
Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Electronics
|
$
|
75
|
|
|
$
|
67
|
|
|
$
|
248
|
|
|
$
|
211
|
|
Other
|
—
|
|
|
(2)
|
|
|
(7)
|
|
|
(8)
|
|
Adjusted
EBITDA
|
75
|
|
|
65
|
|
|
241
|
|
|
203
|
|
Depreciation and
amortization
|
21
|
|
|
20
|
|
|
62
|
|
|
62
|
|
Restructuring
expense
|
5
|
|
|
3
|
|
|
22
|
|
|
18
|
|
Interest expense,
net
|
5
|
|
|
2
|
|
|
10
|
|
|
13
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Equity in net income
of non-consolidated affiliates
|
—
|
|
|
3
|
|
|
(3)
|
|
|
(8)
|
|
Gain on sale of
non-consolidated affiliates, net
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(62)
|
|
Other expense,
net
|
13
|
|
|
7
|
|
|
17
|
|
|
15
|
|
Provision for income
taxes
|
5
|
|
|
10
|
|
|
27
|
|
|
43
|
|
(Income) loss from
discontinued operations, net of tax
|
(7)
|
|
|
11
|
|
|
15
|
|
|
(2,194)
|
|
Non-cash, stock-based
compensation expense
|
2
|
|
|
2
|
|
|
6
|
|
|
7
|
|
Net income
attributable to non-controlling interests
|
4
|
|
|
5
|
|
|
12
|
|
|
41
|
|
Other
|
—
|
|
|
(3)
|
|
|
1
|
|
|
—
|
|
Net income
attributable to Visteon
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
73
|
|
|
$
|
2,263
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30
|
|
September
30
|
|
Estimated
|
Electronics
*
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Full Year
2016**
|
Adjusted
EBITDA
|
$
|
75
|
|
|
$
|
67
|
|
|
$
|
248
|
|
|
$
|
211
|
|
|
$325-$335
|
Depreciation and
amortization
|
21
|
|
|
20
|
|
|
62
|
|
|
61
|
|
|
83
|
Restructuring
expense
|
1
|
|
|
3
|
|
|
11
|
|
|
18
|
|
|
15
|
Interest expense,
net
|
5
|
|
|
2
|
|
|
10
|
|
|
13
|
|
|
13
|
Equity in net
(income) loss of non-consolidated affiliates
|
—
|
|
|
3
|
|
|
(3)
|
|
|
4
|
|
|
(5)
|
Gain on sale of
non-consolidated affiliates, net
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
Other expense,
net
|
—
|
|
|
7
|
|
|
3
|
|
|
29
|
|
|
7
|
Provision for income
taxes
|
5
|
|
|
10
|
|
|
27
|
|
|
43
|
|
|
40
|
Net income
attributable to non-controlling interests
|
4
|
|
|
5
|
|
|
12
|
|
|
17
|
|
|
16
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
Non-cash, stock-based
compensation expense
|
2
|
|
|
2
|
|
|
6
|
|
|
10
|
|
|
8
|
Other
|
—
|
|
|
(3)
|
|
|
1
|
|
|
(3)
|
|
|
1
|
Net income
|
$
|
38
|
|
|
$
|
18
|
|
|
$
|
119
|
|
|
$
|
14
|
|
|
$148-$158
|
(Income) loss from
discontinued operations, net of tax
|
(7)
|
|
|
11
|
|
|
15
|
|
|
(2,194)
|
|
|
|
All other loss, net
of tax
|
17
|
|
|
2
|
|
|
31
|
|
|
(55)
|
|
|
|
Net income
attributable to Visteon
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
73
|
|
|
$
|
2,263
|
|
|
|
* During the first quarter of 2016, the Company combined
corporate costs with the Electronics product group.
** Guidance excludes Other operations and discontinued
operations.
Adjusted EBITDA is not a recognized term under U.S. GAAP and
does not purport to be a substitute for net income as an indicator
of operating performance or cash flows from operating activities as
a measure of liquidity. Adjusted EBITDA has limitations as an
analytical tool and is not intended to be a measure of cash flow
available for management's discretionary use, as it does not
consider certain cash requirements such as interest payments, tax
payments and debt service requirements. In addition, the Company
uses Adjusted EBITDA (i) as a factor in incentive compensation
decisions, (ii) to evaluate the effectiveness of the Company's
business strategies, and (iii) because the Company's credit
agreements use similar measures for compliance with certain
covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash
flow and Adjusted free cash flow are presented as supplemental
measures of the Company's liquidity that management believes are
useful to investors in analyzing the Company's ability to service
and repay its debt. The Company defines Free cash flow as cash flow
provided from operating activities less capital expenditures. The
Company defines Adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, as further adjusted
for restructuring and transformation-related payments. Free cash
flow and Adjusted free cash flow include amounts associated with
discontinued operations. Because not all companies use identical
calculations, this presentation of Free cash flow and Adjusted free
cash flow may not be comparable to other similarly titled measures
of other companies.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
Total
Visteon
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash provided from
operating activities - Electronics*
|
$
|
33
|
|
|
$
|
84
|
|
|
$
|
112
|
|
|
$
|
162
|
|
Cash (used by)
provided from operating activities - discontinued
operations and other
|
(9)
|
|
|
(14)
|
|
|
(74)
|
|
|
112
|
|
Cash provided from
operating activities total Visteon
|
$
|
24
|
|
|
$
|
70
|
|
|
$
|
38
|
|
|
$
|
274
|
|
Capital
expenditures
|
(19)
|
|
|
(29)
|
|
|
(56)
|
|
|
(151)
|
|
Free cash
flow
|
$
|
5
|
|
|
$
|
41
|
|
|
$
|
(18)
|
|
|
$
|
123
|
|
Restructuring/transformation-related
payments
|
20
|
|
|
36
|
|
|
94
|
|
|
126
|
|
Adjusted free cash
flow
|
$
|
25
|
|
|
$
|
77
|
|
|
$
|
76
|
|
|
$
|
249
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30
|
|
September
30
|
|
Estimated
|
Electronics*
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Full Year
2016**
|
Cash provided from
operating activities
|
$
|
33
|
|
|
$
|
84
|
|
|
$
|
112
|
|
|
$
|
162
|
|
|
$165 -
$190
|
Capital
expenditures
|
(18)
|
|
|
(26)
|
|
|
(54)
|
|
|
(63)
|
|
|
80
|
Free cash
flow
|
$
|
15
|
|
|
$
|
58
|
|
|
$
|
58
|
|
|
$
|
99
|
|
|
$85 - $110
|
Restructuring/transformation-related
payments
|
8
|
|
|
25
|
|
|
30
|
|
|
47
|
|
|
40
|
Adjusted free cash
flow
|
$
|
23
|
|
|
$
|
83
|
|
|
$
|
88
|
|
|
$
|
146
|
|
|
$125 -
$150
|
* During the first quarter of 2016, the Company combined
corporate costs with the Electronics product group.
** Guidance excludes Other operations and discontinued
operations.
Free cash flow and Adjusted free cash flow are not recognized
terms under U.S. GAAP and do not purport to be a substitute for
cash flows from operating activities as a measure of liquidity.
Free cash flow and Adjusted free cash flow have limitations as
analytical tools as they do not reflect cash used to service debt
and do not reflect funds available for investment or other
discretionary uses. In addition, the Company uses Free cash flow
and Adjusted free cash flow (i) as factors in incentive
compensation decisions and (ii) for planning and forecasting future
periods.
Adjusted Net Income and Adjusted Earnings Per Share:
Adjusted net income and Adjusted earnings per share are presented
as supplemental measures that management believes are useful to
investors in analyzing the Company's profitability. The
Company defines Adjusted net income as net income attributable to
Visteon plus net restructuring expenses, reorganization items and
other non-operating gains and losses, as further adjusted to
eliminate the impact of discontinued operations. The Company
defines Adjusted earnings per share as Adjusted net income divided
by diluted shares. Because not all companies use identical
calculations, this presentation of Adjusted net income and Adjusted
earnings per share may not be comparable to other similarly titled
measures of other companies.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Diluted earnings
per share:
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
73
|
|
|
$
|
2,263
|
|
Average shares outstanding, diluted (in millions)
|
34.4
|
|
|
41.4
|
|
|
36.0
|
|
|
43.9
|
|
Diluted earnings per
share
|
$
|
0.81
|
|
|
$
|
0.12
|
|
|
$
|
2.03
|
|
|
$
|
51.55
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
28
|
|
|
$
|
5
|
|
|
$
|
73
|
|
|
$
|
2,263
|
|
Restructuring
expense
|
5
|
|
|
3
|
|
|
22
|
|
|
18
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Gain on sale of
non-consolidated affiliates, net
|
1
|
|
|
—
|
|
|
1
|
|
|
62
|
|
Other expense,
net
|
13
|
|
|
7
|
|
|
17
|
|
|
15
|
|
Other
|
—
|
|
|
(3)
|
|
|
1
|
|
|
29
|
|
Income (loss) from
discontinued operations, net of tax
|
7
|
|
|
(11)
|
|
|
(15)
|
|
|
2,194
|
|
Adjusted net
income
|
$
|
38
|
|
|
$
|
23
|
|
|
$
|
127
|
|
|
$
|
74
|
|
Average shares outstanding, diluted (in millions)
|
34.4
|
|
|
41.4
|
|
|
36.0
|
|
|
43.9
|
|
Adjusted earnings per
share
|
$
|
1.10
|
|
|
$
|
0.56
|
|
|
$
|
3.53
|
|
|
$
|
1.69
|
|
Adjusted net income and Adjusted earnings per share are not
recognized terms under U.S. GAAP and do not purport to be a
substitute for profitability. Adjusted net income and Adjusted
earnings per share have limitations as analytical tools as they do
not consider certain restructuring and transaction-related payments
and/or expenses. In addition, the Company uses Adjusted net income
and Adjusted earnings per share for planning and forecasting future
periods.
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SOURCE Visteon Corporation