LONDON, Feb. 21, 2019 /PRNewswire/ -- Delphi
Technologies PLC (NYSE: DLPH) ("Delphi Technologies" or the
"Company"), a global leader in vehicle propulsion, today reported
fourth quarter 2018 U.S. GAAP earnings of $1.52 per diluted share. Excluding special items,
fourth quarter earnings totaled $1.06
per diluted share. The Company also reported revenue of
$1.2 billion for the quarter and
$4.9 billion for the full year, a
decrease of 5% and flat revenue compared to the respective
equivalent prior periods, on an adjusted basis.
Fourth quarter highlights
- Revenue of $1.2 billion, down
5%(*) year-on-year
- U.S. GAAP net income of $135
million, diluted earnings per share of $1.52
-
- Excluding special items, earnings of $1.06 per diluted share
- U.S GAAP operating income of $93
million, or 7.9% margin
-
- Adjusted operating income of $125
million, or 10.7% margin
- Generated $126 million of cash
from operating activities
Full year 2018 highlights
- Revenue of $4.9 billion,
flat(*) year-on-year
- U.S. GAAP net income of $358
million, diluted earnings per share of $4.03
-
- Excluding special items, earnings of $4.38 per diluted share
- U.S. GAAP operating income of $434
million, or 8.9% margin
-
- Adjusted operating income of $548
million, or 11.3% margin
- Generated $419 million of cash
from operating activities
- At December 31, 2018 cash and
cash equivalents equaled $359
million
(*) Adjusted for currency exchange and certain aftermarket
revenue retained by the former parent
CEO comments
"2018 was a milestone year for Delphi
Technologies. In our first full year as a public company we
continued to build on our momentum in key growth technologies,
resulting in a record $10 billion of
new business awards. Our industry leading portfolio of technologies
are at the heart of the propulsion revolution that enable vehicles
to drive cleaner, better and further. We also made great progress
in creating a strong foundation as a stand-alone company from which
to drive long-term growth," said Richard F.
Dauch, Chief Executive Officer of Delphi Technologies.
"During my first two months as CEO, I have discovered that while
2019 is expected to be another transitional year with slower
industry growth, we have an even greater potential to make this
good company a great one. However, we clearly need to execute
better and with more urgency and discipline to ensure we continue
to support our customers and deliver value to our shareholders.
Over the coming months, I expect to have a fuller perspective on
the actions we will take to drive our operational and financial
performance to ensure we capture the long-term profitable growth
ahead of us. I look forward to the future with confidence."
Fourth quarter 2018 results
The Company reported
fourth quarter 2018 revenue of $1.2
billion, a decrease of 9% from the prior year period.
Adjusted for currency exchange and certain aftermarket original
equipment service revenue retained by the former parent, revenue
decreased by 5% in the fourth quarter. Adjusted revenue reflects a
decrease of 6% in Powertrain Systems and growth of 3% in
Aftermarket. On a regional basis, adjusted revenue also reflects a
decrease of 26% in Asia Pacific,
partially offset by growth of 6% in North
America, 3% in Europe and
16% in South America.
The Company reported fourth quarter 2018 U.S. GAAP net income of
$135 million and net income of
$1.52 per diluted share, compared to
$56 million and $0.63 per diluted share in the prior year period.
Fourth quarter Adjusted Net Income, totaled $94 million, or $1.06 per diluted share, which compares to
Adjusted Net Income in the prior year period of $117 million, or $1.32 per diluted share. The decrease in Adjusted
Net Income was primarily due to unfavorable product mix and
spin-related costs associated with becoming a stand-alone public
company, partially offset by reduced incentive compensation
accruals.
Fourth quarter U.S. GAAP operating income was $93 million, compared to $106 million in the prior year period. Adjusted
Operating Income was $125 million,
compared to $164 million in the prior
year period. Adjusted Operating Income margin decreased 200 basis
points in the fourth quarter of 2018 to 10.7%, compared with 12.7%
in the prior year period. The decrease in Adjusted Operating Income
was primarily related to an unfavorable product mix and
spin-related costs associated with becoming a stand-alone public
company, partially offset by reduced incentive compensation
accruals. Depreciation and amortization expense (including asset
impairment charges and amortization of deferred debt issuance
costs) totaled $53 million in the
fourth quarter as compared to $57
million in the prior year period.
Interest expense for the fourth quarter totaled $20 million, as compared to $13 million in the prior year period, which
reflects the interest related to the issuance of approximately
$1.5 billion of debt in connection
with the separation from the former parent.
U.S. GAAP tax benefit in the fourth quarter of 2018 was
$63 million, resulting in an
effective tax rate of approximately (81)%. This compares to U.S.
GAAP tax expense of $27 million, or
an effective tax rate of approximately 30%, in the prior year
period. The income tax benefit recognized in the fourth quarter of
2018 is primarily due to net releases of deferred tax asset
valuation allowances in various jurisdictions.
The Company generated cash from operating activities
of $126 million in the fourth quarter, compared
to $95 million in the prior year period, which reflects
improvement in net working capital offset by a decrease in net
income, excluding the impact of non-cash items. Capital
expenditures totaled $80 million in
the fourth quarter, compared to $86
million in the prior year period.
Full year 2018 results
For the full year 2018, Delphi
Technologies reported revenue of $4.9
billion, flat compared to the prior year. Adjusted for
currency exchange, and certain aftermarket original equipment
service revenue retained by the former parent, revenue also
remained flat during the year. Adjusted revenue reflects a decrease
of 1% in Powertrain Systems and growth of 1% in Aftermarket. On a
regional basis, adjusted revenue also reflects a decrease of 10% in
Asia Pacific, partially offset by
growth of 5% in North America, 2%
in Europe and 11% in South America.
For the full year 2018, the Company reported U.S. GAAP net
income of $358 million and
$4.03 per diluted share, compared to
$285 million and $3.21 per diluted share in the prior year. Full
year 2018 Adjusted Net Income totaled $389
million, or $4.38 per diluted
share compared to the prior year of $464
million, or $5.23 per diluted
share. The decrease in Adjusted Net Income was primarily due to
unfavorable product mix, spin-related costs associated with
becoming a stand-alone public company and interest expense related
to the issuance of debt in 2017. Those items were partially offset
by favorable impacts related to operational performance, foreign
currency and reduced incentive compensation accruals.
The Company reported U.S. GAAP operating income of $434 million, compared to $446 million in the prior year. For the full year
2018, Adjusted Operating Income was $548
million, compared to $637
million in the prior year. Adjusted Operating Income margin
was 11.3% for full year 2018, a decrease of 180 basis points,
compared with 13.1% in the prior year. The decrease in Adjusted
Operating Income was primarily related to an unfavorable product
mix and spin-related costs associated with becoming a stand-alone
public company, partially offset by favorable impacts related to
operational performance, foreign currency and reduced incentive
compensation accruals. Depreciation and amortization expense
(including asset impairment charges and amortization of deferred
debt issuance costs) totaled $201
million as compared to $201
million in the prior year.
Interest expense for full year 2018 totaled $79 million, an increase from $15 million in the prior year, which reflects the
interest related to the issuance of approximately $1.5 billion of debt in connection with the
separation from the former parent.
U.S. GAAP tax benefit for full year 2018 was $9 million, resulting in an effective tax rate of
approximately (2)%. This compares to $106
million, or an effective tax rate of approximately 25%, in
the prior year. The income tax benefit recognized for full year
2018 is primarily due to net releases of deferred tax asset
valuation allowances in various jurisdictions.
The Company generated cash from operating activities of
$419 million in 2018, compared to
$388 million in 2017, which reflects
improvement in net working capital offset by a decrease in net
income, excluding the impact of non-cash items. Capital
expenditures totaled $265 million in
2018, compared to $197 million in
2017. The increased spending is primarily due to investments to
support becoming a stand-alone public company and long-term growth
in key technologies.
Reconciliations of Adjusted Net Income, Adjusted Net Income per
Share and Adjusted Operating Income, which are non-GAAP measures,
to the most directly comparable financial measures calculated and
presented in accordance with accounting principles generally
accepted in the United States
("U.S. GAAP") are provided in the attached supplemental
schedules.
Full year 2019 outlook
The Company's full year 2019
financial outlook is as follows:
(in millions,
except per share amounts)
|
Full Year
2019
|
Revenue
|
$4,650 -
$4,750
|
Adjusted operating
income margin
|
~9%
|
Adjusted earnings per
share
|
$3.00 -
$3.20
|
Cash flow from
operations
|
$320 -
$350
|
Capital
expenditures
|
$310 -
$330
|
Adjusted effective
tax rate
|
~18%
|
|
|
|
Key non-GAAP
reconciliation items to the projected 2019 adjusted operating
income
are as follows (in millions):
|
Full Year
2019
|
Estimated separation
charges
|
$45 - $50
|
Estimated charges for
restructuring
|
$25 - $35
|
|
|
|
Conference call and webcast
The Company will host a
conference call to discuss these results at 8:30 a.m. (ET) / 1:30 p.m.
(GMT) today, which is accessible by dialing 888.761.8621 (US
domestic) or 703.925.2612 (international) or through a webcast at
http://ir.delphi.com. The conference ID number is 3186973. A slide
presentation will accompany the prepared remarks and has been
posted on the investor relations section of the Company's website.
A replay will be available two hours following the conference
call.
About Delphi Technologies
Delphi Technologies is a
technology company focused on providing electric vehicle and
internal combustion engine propulsion solutions, in addition to
solving emissions and fuel economy challenges for the world's
leading automotive OEMs. Delphi Technologies also provides leading
aftermarket service solutions for the replacement market. With
headquarters in London, U.K.,
Delphi Technologies operates technical centers, manufacturing sites
and customer support services in 24 countries. Visit
delphi.com.
Basis of presentation
Prior to December 4, 2017,
Delphi Technologies operated as the Powertrain Systems segment of
Delphi Automotive PLC (the "former parent") and the historical
financial information presented in this press release for periods
prior to December 4, 2017 were derived from the former
parent's accounting records and are presented on a carve-out basis
as if Delphi Technologies had operated as a stand-alone company for
all periods presented.
Use of non-GAAP financial information
This press
release contains information about Delphi Technologies' financial
results which are not presented in accordance with U.S. GAAP.
Specifically, Adjusted Operating Income, Adjusted Net Income,
Adjusted Net Income per Share and the Adjusted effective tax rate
are non-GAAP financial measures. Adjusted Operating Income
represents net income before interest expense, other income
(expense), net, income tax benefit (expense), equity income, net of
tax, restructuring, separation costs, and asset impairments.
Adjusted Operating Income margin is defined as Adjusted Operating
Income as a percentage of Net sales.
Adjusted Net Income represents net income attributable to Delphi
Technologies before restructuring and other special items,
including the tax impact thereon. Adjusted Net Income per Share
represents Adjusted Net Income divided by the weighted average
number of diluted shares outstanding for the period. Adjusted
effective tax rate represents income tax expense less the income
tax related to the adjustments noted above for Adjusted Net Income,
divided by income before income taxes less adjustments.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position, results of operations
and liquidity. In particular, management believes Adjusted
Operating Income, Adjusted Net Income, and Adjusted Net Income per
Share are useful measures in assessing the Company's ongoing
financial performance that, when reconciled to the
corresponding U.S. GAAP measure, provide improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and that may obscure underlying business
results and trends. Management also uses these non-GAAP
financial measures for internal planning and forecasting
purposes.
Such non-GAAP financial measures are reconciled to the most
directly comparable U.S. GAAP financial measures in the attached
supplemental schedules at the end of this press release. Non-GAAP
measures should not be considered in isolation or as a substitute
for the Company's reported results prepared in accordance with U.S.
GAAP and, as calculated, may not be comparable to other similarly
titled measures of other companies.
Forward-looking statements
This press release, as
well as other statements made by Delphi Technologies PLC, contain
forward-looking statements that reflect, when made, the Company's
current views with respect to future events and financial
performance and, in particular, the Company's 2019 outlook.
Such forward-looking statements are subject to many risks,
uncertainties and factors relating to the Company's operations and
business environment, which may cause the actual results of the
Company to be materially different from any future
results. All statements that address future operating,
financial or business performance or the Company's strategies or
expectations are forward-looking statements. In some cases, you can
identify these statements by forward-looking words such as "may,"
"might," "will," "should," "expects," "plans," "intends,"
"anticipates," "believes," "estimates," "predicts," "projects,"
"potential," "outlook" or "continue," the negatives thereof and
other comparable terminology. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, the following: global and
regional economic conditions, including conditions affecting the
credit market and those resulting from the United Kingdom referendum held on June 23, 2016 in which voters approved an exit
from the European Union, commonly referred to as "Brexit";
risks inherent in operating as a global company, such as,
fluctuations in interest rates and foreign currency exchange rates
and economic, political and trade conditions around the world; the
cyclical nature of automotive sales and production; the potential
disruptions in the supply of and changes in the competitive
environment for raw material integral to the Company's products;
the Company's ability to maintain contracts that are critical to
its operations; potential changes to beneficial free trade laws and
regulations such as the North American Free Trade Agreement; the
ability of the Company to achieve the intended benefits from its
separation from its former parent or from acquisitions the Company
may make; the ability of the Company to attract, motivate and/or
retain key executives; the ability of the Company to avoid or
continue to operate during a strike, or partial work stoppage or
slow down by any of its unionized employees or those of its
principal customers; the ability of the Company to attract and
retain customers; changes in the costs of raw materials; the
Company's indebtedness, including the amount thereof and capital
availability and cost; the cost and outcome of any claims, legal
proceedings or investigations; the failure or breach of information
technology systems; severe weather conditions and natural disasters
and any resultant disruptions on the supply or production of goods
or services or customer demands; acts of war and/or terrorism, as
well as the impact of actions taken by governments as a result of
further acts or threats of terrorism; and the timing and occurrence
(or non-occurrence) of other events or circumstances that may be
beyond the Company's control.
Additional factors are discussed under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's filings with
the Securities and Exchange Commission. New risks and uncertainties
arise from time to time, and it is impossible for us to predict
these events or how they may affect the Company. It should be
remembered that the price of the ordinary shares and any income
from them can go down as well as up. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
and/or otherwise, except as may be required by law.
DELPHI
TECHNOLOGIES PLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in millions,
except per share amounts)
|
Net sales
|
$
|
1,171
|
|
|
$
|
1,289
|
|
|
$
|
4,858
|
|
|
$
|
4,849
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
959
|
|
|
1,032
|
|
|
3,961
|
|
|
3,881
|
|
Selling, general and
administrative
|
107
|
|
|
129
|
|
|
414
|
|
|
408
|
|
Amortization
|
5
|
|
|
3
|
|
|
14
|
|
|
16
|
|
Restructuring
|
7
|
|
|
19
|
|
|
35
|
|
|
98
|
|
Total operating
expenses
|
1,078
|
|
|
1,183
|
|
|
4,424
|
|
|
4,403
|
|
Operating
income
|
93
|
|
|
106
|
|
|
434
|
|
|
446
|
|
Interest
expense
|
(20)
|
|
|
(13)
|
|
|
(79)
|
|
|
(15)
|
|
Other income
(expense), net
|
5
|
|
|
(4)
|
|
|
9
|
|
|
(11)
|
|
Income before income
taxes and equity income
|
78
|
|
|
89
|
|
|
364
|
|
|
420
|
|
Income tax benefit
(expense)
|
63
|
|
|
(27)
|
|
|
9
|
|
|
(106)
|
|
Income before equity
income
|
141
|
|
|
62
|
|
|
373
|
|
|
314
|
|
Equity income, net of
tax
|
1
|
|
|
3
|
|
|
7
|
|
|
5
|
|
Net income
|
142
|
|
|
65
|
|
|
380
|
|
|
319
|
|
Net income
attributable to noncontrolling interest
|
7
|
|
|
9
|
|
|
22
|
|
|
34
|
|
Net income
attributable to Delphi Technologies
|
$
|
135
|
|
|
$
|
56
|
|
|
$
|
358
|
|
|
$
|
285
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Delphi Technologies:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.53
|
|
|
$
|
0.63
|
|
|
$
|
4.04
|
|
|
$
|
3.22
|
|
Diluted
|
$
|
1.52
|
|
|
$
|
0.63
|
|
|
$
|
4.03
|
|
|
$
|
3.21
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
88.49
|
|
|
88.61
|
|
|
88.68
|
|
|
88.61
|
|
Diluted
|
88.63
|
|
|
88.79
|
|
|
88.89
|
|
|
88.66
|
|
DELPHI
TECHNOLOGIES PLC
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
December
31,
|
|
2018
|
|
2017
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
359
|
|
|
$
|
338
|
|
Restricted
cash
|
1
|
|
|
1
|
|
Accounts receivable,
net
|
878
|
|
|
1,090
|
|
Inventories
|
521
|
|
|
498
|
|
Other current
asset
|
172
|
|
|
131
|
|
Total current
assets
|
1,931
|
|
|
2,058
|
|
Long-term
assets:
|
|
|
|
Property,
net
|
1,445
|
|
|
1,316
|
|
Investments in
affiliates
|
44
|
|
|
37
|
|
Intangible assets and
goodwill, net
|
76
|
|
|
82
|
|
Deferred income
taxes
|
280
|
|
|
178
|
|
Other long-term
assets
|
117
|
|
|
122
|
|
Total long-term
assets
|
1,962
|
|
|
1,735
|
|
Total
assets
|
$
|
3,893
|
|
|
$
|
3,793
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
43
|
|
|
$
|
20
|
|
Accounts
payable
|
906
|
|
|
931
|
|
Accrued
liabilities
|
428
|
|
|
445
|
|
Total current
liabilities
|
1,377
|
|
|
1,396
|
|
Long-term
liabilities:
|
|
|
|
Long-term
debt
|
1,488
|
|
|
1,515
|
|
Pension and other
postretirement benefit obligations
|
467
|
|
|
531
|
|
Other long-term
liabilities
|
123
|
|
|
119
|
|
Total long-term
liabilities
|
2,078
|
|
|
2,165
|
|
Total
liabilities
|
3,455
|
|
|
3,561
|
|
Total Delphi
Technologies shareholders' equity
|
292
|
|
|
68
|
|
Noncontrolling
interest
|
146
|
|
|
164
|
|
Total shareholders'
equity
|
438
|
|
|
232
|
|
Total liabilities and
shareholders' equity
|
$
|
3,893
|
|
|
$
|
3,793
|
|
DELPHI
TECHNOLOGIES PLC
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
380
|
|
|
$
|
319
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
201
|
|
|
201
|
|
Restructuring
expense, net of cash paid
|
(32)
|
|
|
10
|
|
Deferred income
taxes
|
(108)
|
|
|
(7)
|
|
Income from equity
method investments, net of dividends received
|
(7)
|
|
|
(5)
|
|
Other, net
|
49
|
|
|
64
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
162
|
|
|
(271)
|
|
Inventories
|
(24)
|
|
|
(124)
|
|
Accounts
payable
|
(97)
|
|
|
201
|
|
Other, net
|
(58)
|
|
|
48
|
|
Pension
contributions
|
(47)
|
|
|
(48)
|
|
Net cash provided by
operating activities
|
419
|
|
|
388
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(265)
|
|
|
(197)
|
|
Proceeds from sale of
property
|
5
|
|
|
10
|
|
Cost of technology
investments
|
(7)
|
|
|
(1)
|
|
Proceeds from
insurance settlement claims
|
1
|
|
|
1
|
|
Settlement of
undesignated derivatives
|
(8)
|
|
|
—
|
|
Net cash used in
investing activities
|
(274)
|
|
|
(187)
|
|
Cash flows from
financing activities:
|
|
|
|
Net repayments under
other short-term debt agreements
|
(2)
|
|
|
—
|
|
Repayments under
long-term debt agreements
|
(19)
|
|
|
—
|
|
Proceeds from
issuance of senior notes, net of discount and issuance
costs
|
—
|
|
|
782
|
|
Proceeds from
issuance of credit agreement, net of issuance costs
|
—
|
|
|
741
|
|
Dividend payments of
consolidated affiliates to minority shareholders
|
(12)
|
|
|
(10)
|
|
Distribution of cash
dividends
|
(60)
|
|
|
—
|
|
Taxes withheld and
paid on employees' restricted share awards
|
(5)
|
|
|
—
|
|
Repurchase of
ordinary shares
|
(10)
|
|
|
—
|
|
Cash distributions
paid to former parent
|
—
|
|
|
(1,328)
|
|
Other net transfers
to former parent
|
—
|
|
|
(160)
|
|
Net cash (used in)
provided by financing activities
|
(108)
|
|
|
25
|
|
Effect of exchange
rate fluctuations on cash, cash equivalents and restricted
cash
|
(16)
|
|
|
12
|
|
Increase in cash,
cash equivalents and restricted cash
|
21
|
|
|
238
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
339
|
|
|
101
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
360
|
|
|
$
|
339
|
|
DELPHI
TECHNOLOGIES PLC
FOOTNOTES
(Unaudited)
|
|
|
1. Segment
Summary
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
%
|
|
2018
|
|
2017
|
|
%
|
|
(in
millions)
|
|
|
|
(in
millions)
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
1,018
|
|
|
$
|
1,115
|
|
|
(9)%
|
|
$
|
4,274
|
|
|
$
|
4,222
|
|
|
1%
|
Aftermarket
|
225
|
|
|
250
|
|
|
(10)%
|
|
874
|
|
|
947
|
|
|
(8)%
|
Eliminations and
Other (a)
|
(72)
|
|
|
(76)
|
|
|
|
|
(290)
|
|
|
(320)
|
|
|
|
Net Sales
|
$
|
1,171
|
|
|
$
|
1,289
|
|
|
|
|
$
|
4,858
|
|
|
$
|
4,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
99
|
|
|
$
|
143
|
|
|
(31)%
|
|
$
|
467
|
|
|
$
|
562
|
|
|
(17)%
|
Aftermarket
|
26
|
|
|
21
|
|
|
24%
|
|
81
|
|
|
75
|
|
|
8%
|
Eliminations and
Other (a)
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
Adjusted Operating
Income
|
$
|
125
|
|
|
$
|
164
|
|
|
|
|
$
|
548
|
|
|
$
|
637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Eliminations and
Other includes the elimination of inter-segment
transactions
|
|
|
|
|
2. Weighted
Average Number of Diluted Shares Outstanding
|
|
The following table
illustrates the weighted average shares outstanding used in
calculating basic and diluted net income per share attributable to
Delphi Technologies for the three months and years ended
December 31, 2018 and 2017:
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in millions,
except per share data)
|
Weighted average
ordinary shares outstanding, basic
|
88.49
|
|
|
88.61
|
|
|
88.68
|
|
|
88.61
|
|
Dilutive shares
related to RSUs
|
0.14
|
|
|
0.18
|
|
|
0.21
|
|
|
0.05
|
|
Weighted average
ordinary shares outstanding, including dilutive shares
|
88.63
|
|
|
88.79
|
|
|
88.89
|
|
|
88.66
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Delphi Technologies:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.53
|
|
|
$
|
0.63
|
|
|
$
|
4.04
|
|
|
$
|
3.22
|
|
Diluted
|
$
|
1.52
|
|
|
$
|
0.63
|
|
|
$
|
4.03
|
|
|
$
|
3.21
|
|
DELPHI
TECHNOLOGIES PLC
RECONCILIATION OF
NON-GAAP MEASURES
(Unaudited)
|
|
In this press release
the Company has provided information regarding certain non-GAAP
financial measures, including "Adjusted Operating Income,"
"Adjusted Net Income" and "Adjusted Net Income per Share." Such
non-GAAP financial measures are reconciled to their closest GAAP
financial measure in the following schedules.
|
|
Adjusted Operating
Income: Adjusted Operating Income is presented as a
supplemental measure of the Company's financial performance which
management believes is useful to investors in assessing the
Company's ongoing financial performance that, when reconciled to
the corresponding U.S. GAAP measure, provides improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and which may obscure underlying
business results and trends. Our management utilizes Adjusted
Operating Income in its financial decision making process, to
evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Management also utilizes
Adjusted Operating Income as the key performance measure of segment
income or loss and for planning and forecasting purposes to
allocate resources to our segments, as management also believes
this measure is most reflective of the operational profitability or
loss of our operating segments. Adjusted Operating Income is
defined as net income before interest expense, other income
(expense), net, income tax benefit (expense), equity income, net of
tax, restructuring, separation costs and asset impairments. Not all
companies use identical calculations of Adjusted Operating Income,
therefore this presentation may not be comparable to other
similarly titled measures of other companies. The Company's 2019
guidance was determined using a consistent manner and
methodology.
|
|
|
Consolidated
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in
millions)
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
Net income
attributable to Delphi
Technologies
|
$
|
135
|
|
|
|
|
$
|
56
|
|
|
|
|
$
|
358
|
|
|
|
|
$
|
285
|
|
|
|
Net income
attributable to noncontrolling
interest
|
7
|
|
|
|
|
9
|
|
|
|
|
22
|
|
|
|
|
34
|
|
|
|
Net income
|
142
|
|
|
|
|
65
|
|
|
|
|
380
|
|
|
|
|
319
|
|
|
|
Equity income, net of
tax
|
(1)
|
|
|
|
|
(3)
|
|
|
|
|
(7)
|
|
|
|
|
(5)
|
|
|
|
Income tax (benefit)
expense
|
(63)
|
|
|
|
|
27
|
|
|
|
|
(9)
|
|
|
|
|
106
|
|
|
|
Other (income)
expense, net
|
(5)
|
|
|
|
|
4
|
|
|
|
|
(9)
|
|
|
|
|
11
|
|
|
|
Interest
expense
|
20
|
|
|
|
|
13
|
|
|
|
|
79
|
|
|
|
|
15
|
|
|
|
Operating
income
|
93
|
|
|
7.9
|
%
|
|
106
|
|
|
8.2
|
%
|
|
434
|
|
|
8.9
|
%
|
|
446
|
|
|
9.2
|
%
|
Restructuring
|
7
|
|
|
|
|
19
|
|
|
|
|
35
|
|
|
|
|
98
|
|
|
|
Separation
costs
|
25
|
|
|
|
|
35
|
|
|
|
|
78
|
|
|
|
|
81
|
|
|
|
Asset
impairments
|
—
|
|
|
|
|
4
|
|
|
|
|
1
|
|
|
|
|
12
|
|
|
|
Adjusted operating
income
|
$
|
125
|
|
|
10.7
|
%
|
|
$
|
164
|
|
|
12.7
|
%
|
|
$
|
548
|
|
|
11.3
|
%
|
|
$
|
637
|
|
|
13.1
|
%
|
Segment Adjusted
Operating Income
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2018
|
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
|
$
|
74
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
93
|
|
Restructuring
|
|
6
|
|
|
1
|
|
|
—
|
|
|
7
|
|
Separation
costs
|
|
19
|
|
|
6
|
|
|
—
|
|
|
25
|
|
Adjusted operating
income
|
|
$
|
99
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
|
$
|
50
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017
|
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
|
$
|
92
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
106
|
|
Restructuring
|
|
18
|
|
|
1
|
|
|
—
|
|
|
19
|
|
Separation
costs
|
|
29
|
|
|
6
|
|
|
—
|
|
|
35
|
|
Asset
impairments
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Adjusted operating
income
|
|
$
|
143
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
|
$
|
55
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018
|
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
|
$
|
368
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
434
|
|
Restructuring
|
|
37
|
|
|
(2)
|
|
|
—
|
|
|
35
|
|
Separation
costs
|
|
61
|
|
|
17
|
|
|
—
|
|
|
78
|
|
Asset
impairments
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Adjusted operating
income
|
|
$
|
467
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
548
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
|
$
|
192
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2017
|
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
|
$
|
392
|
|
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
446
|
|
Restructuring
|
|
92
|
|
|
6
|
|
|
—
|
|
|
98
|
|
Separation
costs
|
|
66
|
|
|
15
|
|
|
—
|
|
|
81
|
|
Asset
impairments
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
Adjusted operating
income
|
|
$
|
562
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
637
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
|
$
|
194
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
201
|
|
|
|
|
|
|
|
|
|
|
(a) Includes asset
impairments
|
|
|
|
|
|
|
|
|
DELPHI
TECHNOLOGIES PLC
RECONCILIATION OF
NET EARNINGS TO ADJUSTED EARNINGS
(Unaudited)
|
|
Adjusted Net
Income and Adjusted Net Income Per Share: Adjusted Net Income
and Adjusted Net Income Per Share, which are non-GAAP measures, are
presented as supplemental measures of the Company's financial
performance which management believes are useful to investors in
assessing the Company's ongoing financial performance that, when
reconciled to the corresponding U.S. GAAP measure, provide improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and which may obscure underlying
business results and trends. Management utilizes Adjusted Net
Income and Adjusted Net Income Per Share in its financial decision
making process, to evaluate performance of the Company and for
internal reporting, planning and forecasting purposes. Adjusted Net
Income is defined as net income attributable to Delphi
Technologies, restructuring and other special items, including the
tax impact thereon. Adjusted Net Income Per Share is defined as
Adjusted Net Income divided by the weighted average number of
diluted shares outstanding for the period. Not all companies use
identical calculations of Adjusted Net Income and Adjusted Net
Income Per Share, therefore this presentation may not be comparable
to other similarly titled measures of other companies. The
Company's 2019 guidance was determined using a consistent manner
and methodology.
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(in millions,
except per share amounts)
|
Net income
attributable to Delphi Technologies
|
$
|
135
|
|
|
$
|
56
|
|
|
$
|
358
|
|
|
$
|
285
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
Restructuring
|
7
|
|
|
19
|
|
|
35
|
|
|
98
|
|
Asset
impairments
|
—
|
|
|
4
|
|
|
1
|
|
|
12
|
|
Separation costs
(1)
|
25
|
|
|
35
|
|
|
78
|
|
|
81
|
|
Tax adjustments
(2)
|
(82)
|
|
|
7
|
|
|
(80)
|
|
|
7
|
|
Tax impact of
adjusting items (3)
|
9
|
|
|
(4)
|
|
|
(3)
|
|
|
(19)
|
|
Adjusted net income
attributable to Delphi Technologies
|
$
|
94
|
|
|
$
|
117
|
|
|
$
|
389
|
|
|
$
|
464
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
88.63
|
|
|
88.79
|
|
|
88.89
|
|
|
88.66
|
|
Diluted net income
per share attributable to Delphi Technologies
|
$
|
1.52
|
|
|
$
|
0.63
|
|
|
$
|
4.03
|
|
|
$
|
3.21
|
|
Adjusted net income
per share
|
$
|
1.06
|
|
|
$
|
1.32
|
|
|
$
|
4.38
|
|
|
$
|
5.23
|
|
|
|
(1)
|
Prior to December 4,
2017 separation costs include one-time expenses related to the
separation from the Company's former parent. For periods subsequent
to December 4, 2017, these costs include one-time incremental
expenses associated with becoming a stand-alone publicly-traded
company.
|
|
|
(2)
|
Represents the
adjustment to income tax expense related to changes in tax law
recognized at the date of enactment and the adjustment to
provisional amounts recorded related to the U.S. Tax Cuts and Jobs
Act, the adjustments to income tax expense recorded in the period
as a result of changes in estimates regarding the realizability of
deferred tax assets and the tax transaction expense of an internal
restructuring.
|
|
|
(3)
|
Represents the income
tax impacts of the adjustments made for restructuring and other
special items by calculating the income tax impact of these items
using the appropriate tax rate for the jurisdiction where the
charges were incurred.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/delphi-technologies-reports-fourth-quarter-and-full-year-2018-financial-results-provides-full-year-2019-outlook-300799042.html
SOURCE Delphi Technologies PLC