VAN BUREN TOWNSHIP, Mich.,
March 9, 2011 /PRNewswire/ --
Full Year 2010 Highlights
- Product sales of $7.32
billion, up $903 million from
prior year
- Net income of $1.03
billion, including $933
million of net reorganization gains
- Adjusted EBITDA of $614
million, up $160 million
year-over-year
- Cash generated by operating activities of $174 million, up $33
million from 2009
- Year-end cash balances of $979
million; total debt of $561
million
- Common stock listed on NYSE; trading since Jan. 10, 2011 (symbol: VC)
Visteon Corporation (NYSE: VC) today announced financial results
for 2010, reporting full-year sales of $7.47
billion, an increase of $781
million or 12 percent compared with 2009. Net income for
full year 2010 was $1.03 billion and
included $933 million of net
reorganization gains in connection with the company's emergence
from Chapter 11 on Oct. 1, 2010.
Adjusted EBITDA for full year 2010 was $614
million, an increase of $160
million compared with $454
million for 2009. For full year 2010, the company generated
$174 million of cash from operating
activities, an increase of $33
million compared with 2009.
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"Our full-year financial results significantly improved from
last year, reflecting our ongoing operational actions, benefits
from our restructuring initiatives and an upswing in global vehicle
production volumes," said Donald J.
Stebbins, chairman, chief executive officer and president.
"We capitalized on sales growth in China and other emerging markets through our
extensive manufacturing and engineering presence in these key
regions."
Full Year 2010 Results
Product sales for full year 2010 were $7.32 billion, up $903
million, or more than 14 percent, from 2009, reflecting
higher customer vehicle production volumes and favorable currency.
The improved production environment was partially offset by the
impact of divestitures and plant closures completed in 2009 and the
first half of 2010, which reduced product sales by $422 million. Approximately 29 percent and 25
percent of 2010 product sales were to Hyundai-Kia and Ford,
respectively. Renault-Nissan and PSA Peugeot-Citroen collectively
accounted for about 14 percent of sales. On a regional basis,
Asia Pacific and Europe accounted for 40 percent and 36 percent
of total product sales, respectively, while North America accounted for 18 percent and
South America 6 percent.
Gross margin for 2010 was $809
million, increasing $212
million over full year 2009. Gross margin for full year 2010
included $198 million of savings
related to the termination of company-paid medical, prescription
drug and life insurance coverage under certain U.S. other
post-retirement employee benefit ("OPEB") plans, which was
$65 million higher than similar
savings recognized in 2009. The remaining year-over-year increase
of $147 million reflected higher
production volumes and improved net cost performance, partially
offset by divestitures and plant closures, unfavorable currency and
inventory valuation adjustments associated with the adoption of
fresh-start accounting.
Selling, general and administrative expenses for 2010 totaled
$395 million compared with
$331 million for 2009, an increase of
$64 million. This increase is
attributable to the impact of OPEB terminations that provided a
savings of $62 million in 2009,
compared with a net expense of $5
million in 2010. In addition, net cost efficiencies of
$53 million achieved in 2010 were
partially offset by unfavorable currency and increased employee
performance incentive costs of $50
million.
Equity in net income of non-consolidated affiliates of
$146 million for full year 2010
represented a $66 million increase
over 2009. Equity in net income is mainly derived from Visteon's
Asian joint venture partnerships, principally Yanfeng Visteon
Automotive Trim Systems Co., Ltd. The increase in 2010 reflects
significantly higher vehicle production in China.
Visteon reported net income of $1.03
billion for full year 2010, including net reorganization
gains of $933 million. Net
reorganization gains included $956
million related to the settlement of obligations previously
recorded as liabilities subject to compromise and $106 million related to the adoption of
fresh-start accounting, partially offset by reorganization costs of
$129 million. Adjusted EBITDA, as
defined below, of $614 million for
2010 represented an increase of $160
million over full year 2009. Higher vehicle production
volumes, net of unfavorable currency and the impact of divestitures
and plant closures, increased adjusted EBITDA by $152 million. In addition, positive net cost
performance and higher equity income from Visteon's Asian
non-consolidated joint ventures provided a further increase of
$112 million. These increases more
than offset higher employee performance incentive costs of
$67 million and net income
attributable to non-controlling interests of $19 million, principally reflecting the 30
percent minority interest in Halla Climate Control Corporation.
Fourth Quarter 2010 Results
Fourth quarter 2010 product sales were $1.89 billion, down $81
million year-over-year, primarily due to the impact of
divestitures and plant closures of $128
million and unfavorable currency − partially offset by
slightly higher vehicle production volumes. Approximately 31
percent and 23 percent of fourth quarter 2010 product sales were to
Hyundai-Kia and Ford, respectively. Renault-Nissan and PSA
Peugeot-Citroen collectively accounted for about 15 percent of
sales. On a regional basis, Asia
Pacific and Europe and
accounted for 43 percent and 36 percent of total product sales,
respectively, while North America
accounted for 15 percent and South
America 6 percent.
Gross margin of $247 million for
fourth quarter 2010 represented a year-over-year decrease of
$105 million, as divestitures and
plant closures, unfavorable currency, and net cost performance
including increased inventory costs associated with the adoption of
fresh-start accounting more than offset slightly higher vehicle
production volumes. Gross margin in both the fourth quarters of
2010 and 2009 included $133 million
of savings associated with OPEB terminations.
Selling, general and administrative expenses for fourth quarter
2010 totaled $103 million, including
$13 million of savings from OPEB
terminations and $14 million of
reorganization-related costs incurred after Oct. 1, 2010. Selling, general and
administrative expenses for fourth quarter 2009 were $31 million, which included $62 million of savings from OPEB terminations.
After adjusting for the impact of OPEB terminations and
reorganization-related costs, selling, general and administrative
expenses increased by $9 million,
reflecting higher employee performance incentive costs.
Restructuring expenses for fourth quarter 2010 totaled
$28 million, of which $24 million related to employee severance and
termination benefits for a European interiors facility pursuant to
the sale of assets and transfer of production. The company expects
to recover from customers approximately $18
million of these expenses as payments are made.
For fourth quarter 2010, the company reported net income of
$1.13 billion, including
reorganization gains of $1.06
billion. Adjusted EBITDA for fourth quarter 2010 was
$138 million, a decrease of
$92 million from the same quarter a
year earlier. The fourth quarter of 2009 included a net benefit of
about $23 million related to
facilities that were divested or closed under customer
arrangements. Customer cost recoveries and supplier pricing
settlements provided a net benefit of $28
million in the fourth quarter of 2009 compared with a net
cost of $7 million in the same period
in 2010. Adjusted EBITDA was further impacted by higher employee
performance incentive costs of $19
million in fourth quarter 2010.
Cash and Debt Balances
As of Dec. 31, 2010, Visteon had
global cash balances totaling $979
million, including restricted cash of $74 million, and total debt of $561 million.
For full year 2010, Visteon generated $174 million of cash from operations, including a
use of about $335 million for Chapter
11-related items. Capital expenditures of $209 million in 2010 were $58 million higher than in 2009. For 2010, free
cash flow, as defined below, was negative $35 million, compared with negative $10 million for 2009.
For fourth quarter 2010, Visteon used $49
million of cash for operations, including a use of about
$250 million for Chapter 11-related
items. Capital expenditures in fourth quarter 2010 were
$92 million. Free cash flow was
negative $141 million in fourth
quarter 2010, compared with positive $228
million in the fourth quarter of 2009.
Fresh-Start Accounting
The company adopted fresh-start accounting in connection with
the Oct. 1, 2010, emergence from
Chapter 11 bankruptcy proceedings. Accordingly, financial results
for the three months ended Dec. 31,
2010 (the "Successor Company"), and the nine months ended
Oct. 1, 2010, (the "Predecessor
Company"), are presented separately. For illustrative purposes in
this earnings release, the company has combined the separate
Successor Company and Predecessor Company results to derive
combined results for the three and twelve months ended Dec. 31, 2010. However, because of various
financial statement adjustments in connection with the adoption of
fresh-start accounting, including adjustments necessary to give
effect to the plan of reorganization and adjustments of assets and
liabilities to fair value, the results of operations for the
Successor Company are not comparable to those of the Predecessor
Company.
Net New Business
Visteon reported an expected backlog of approximately
$700 million of consolidated net new
business for the period 2011 through 2013. Hyundai-Kia accounted
for 61 percent of this amount, with Ford Motor Co. and PSA
Peugeot-Citroen accounting for 16 percent and 7 percent,
respectively.
"We retained the support and confidence of our customers
throughout our reorganization efforts," Stebbins said. "We very
much appreciate this support, which reflects positively on our
relationships and our capability to provide competitive,
differentiated and solution-driven products and applications to our
customers around the world."
Full Year 2011 Outlook
Visteon expects full year 2011 product sales in the range of
$7.3 billion to $7.5 billion and
adjusted EBITDA in the range of $620 million
to $660 million. Free cash flow is expected to be a use of
approximately $225 million. Estimates
for other selected 2011 financial items are provided below:
|
|
|
|
Full Year
2011 Estimate
|
|
Depreciation and
amortization
|
|
$320
million
|
|
Interest payments
|
|
$ 50
million
|
|
Cash taxes
|
|
$140
million
|
|
Pension funding, net of
expense
|
|
$ 50
million
|
|
Chapter 11
claims/restructuring
|
|
$200
million
|
|
Capital spending
|
|
$270
million
|
|
|
|
|
|
|
Visteon's full year 2011 outlook is based on an average full
year exchange rate of $1.33/Euro and
Korean Won/U.S. Dollar of 1,135.
Visteon is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, electronic, interior
and lighting products for vehicle manufacturers, and also provides
a range of products and services to aftermarket customers. With
corporate offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 26 countries and employs
approximately 26,500 people. Learn more at www.visteon.com.
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,
- our ability to satisfy future capital and liquidity
requirements; including our ability to access the credit and
capital markets at the times and in the amounts needed and on terms
acceptable to us; our ability to comply with financial and other
covenants in our credit agreements; and the continuation of
acceptable supplier payment terms;
- our ability to satisfy pension and other post-employment
benefit obligations;
- our ability to access funds generated by foreign subsidiaries
and joint ventures on a timely and cost-effective basis;
- conditions within the automotive industry, including (i) the
automotive vehicle production volumes and schedules of our
customers, and in particular Ford's and Hyundai-Kia's vehicle
production volumes, (ii) the financial condition of our customers
or suppliers and the effects of any restructuring or reorganization
plans that may be undertaken by our customers or suppliers or work
stoppages at our customers or suppliers, and (iii) possible
disruptions in the supply of commodities to us or our customers due
to financial distress or work stoppages;
- new business wins and re-wins do not represent firm orders or
firm commitments from customers, but are based on various
assumptions, including the timing and duration of product launches,
vehicle productions levels, customer price reductions and currency
exchange rates;
- general economic conditions, including changes in interest
rates, currency exchange rates and fuel prices; the timing and
expenses related to internal restructurings, employee reductions,
acquisitions or dispositions and the effect of pension and other
post-employment benefit obligations;
- 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
- those factors identified in our filings with the SEC (including
our Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2010).
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 audited financial results will be included in the
company's Annual Report on Form 10-K for the year ended
Dec. 31, 2010.
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 full-year 2011 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.
VISTEON
CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Dollars in
Millions, Except Per Share Data)
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31
|
|
December
31
|
|
December
31
|
|
December
31
|
|
December
31
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Combined
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
1,886
|
|
$
1,886
|
|
$
1,967
|
|
$
7,323
|
|
$
6,420
|
|
Services
|
1
|
|
1
|
|
60
|
|
143
|
|
265
|
|
|
1,887
|
|
1,887
|
|
2,027
|
|
7,466
|
|
6,685
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
Products
|
1,642
|
|
1,639
|
|
1,616
|
|
6,516
|
|
5,827
|
|
Services
|
1
|
|
1
|
|
59
|
|
141
|
|
261
|
|
|
1,643
|
|
1,640
|
|
1,675
|
|
6,657
|
|
6,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
244
|
|
247
|
|
352
|
|
809
|
|
597
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
124
|
|
103
|
|
31
|
|
395
|
|
331
|
|
Restructuring
expenses
|
28
|
|
28
|
|
12
|
|
48
|
|
84
|
|
Reimbursement from escrow
account
|
-
|
|
-
|
|
-
|
|
-
|
|
62
|
|
Deconsolidation gain
|
-
|
|
-
|
|
-
|
|
-
|
|
(95)
|
|
Asset impairments and other
(gains)/losses
|
(1)
|
|
(1)
|
|
(11)
|
|
24
|
|
(11)
|
|
Reorganization items,
net
|
-
|
|
(1,056)
|
|
30
|
|
(933)
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
93
|
|
1,173
|
|
290
|
|
1,275
|
|
290
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
10
|
|
10
|
|
4
|
|
170
|
|
106
|
|
Equity in net income of
non-consolidated affiliates
|
41
|
|
46
|
|
28
|
|
146
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
124
|
|
1,209
|
|
314
|
|
1,251
|
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
19
|
|
56
|
|
17
|
|
150
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
105
|
|
1,153
|
|
297
|
|
1,101
|
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests
|
19
|
|
19
|
|
21
|
|
75
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Visteon
|
$
86
|
|
$
1,134
|
|
$
276
|
|
$
1,026
|
|
$
128
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Visteon
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.71
|
|
|
|
$
2.12
|
|
|
|
$
0.98
|
|
Diluted
|
$
1.66
|
|
|
|
$
2.12
|
|
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (in
millions)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
50.2
|
|
|
|
130.4
|
|
|
|
130.4
|
|
Diluted
|
51.7
|
|
|
|
130.4
|
|
|
|
130.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(Dollars in
Millions)
|
|
(Unaudited)
|
|
|
|
|
December
31
|
|
|
December
31
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
$
905
|
|
|
$
962
|
|
Restricted cash
|
74
|
|
|
133
|
|
Accounts receivable,
net
|
1,101
|
|
|
1,055
|
|
Inventories, net
|
364
|
|
|
319
|
|
Other current assets
|
258
|
|
|
236
|
|
Total current
assets
|
2,702
|
|
|
2,705
|
|
|
|
|
|
|
|
Property and equipment,
net
|
1,582
|
|
|
1,936
|
|
Equity in net assets of
non-consolidated affiliates
|
439
|
|
|
294
|
|
Intangible assets,
net
|
396
|
|
|
-
|
|
Other non-current
assets
|
89
|
|
|
84
|
|
Total assets
|
$
5,208
|
|
|
$
5,019
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt, including
current portion of long-term debt
|
$
78
|
|
|
$
225
|
|
Accounts payable
|
1,211
|
|
|
977
|
|
Accrued employee
liabilities
|
196
|
|
|
161
|
|
Other current
liabilities
|
357
|
|
|
302
|
|
Total current
liabilities
|
1,842
|
|
|
1,665
|
|
|
|
|
|
|
|
Long-term debt
|
483
|
|
|
6
|
|
Employee benefits
|
522
|
|
|
568
|
|
Deferred income taxes
|
190
|
|
|
159
|
|
Other non-current
liabilities
|
221
|
|
|
257
|
|
Liabilities subject to
compromise
|
-
|
|
|
2,819
|
|
|
|
|
|
|
|
Shareholders' equity
(deficit)
|
|
|
|
|
|
Preferred stock
|
-
|
|
|
-
|
|
Common stock
|
1
|
|
|
131
|
|
Stock warrants
|
29
|
|
|
127
|
|
Additional paid-in
capital
|
1,099
|
|
|
3,407
|
|
Retained earnings
(accumulated deficit)
|
86
|
|
|
(4,576)
|
|
Accumulated other
comprehensive income
|
50
|
|
|
142
|
|
Treasury stock
|
(5)
|
|
|
(3)
|
|
Total Visteon Corporation
shareholders' equity (deficit)
|
1,260
|
|
|
(772)
|
|
Noncontrolling
interests
|
690
|
|
|
317
|
|
|
|
|
|
|
|
Total shareholders' equity
(deficit)
|
1,950
|
|
|
(455)
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity (deficit)
|
$
5,208
|
|
|
$
5,019
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Dollars in
Millions)
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31
|
|
December
31
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Combined
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
105
|
|
$
1,153
|
|
$
297
|
|
$
1,101
|
|
$
184
|
|
Adjustments to reconcile Net
Income to net cash from (used by) Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
73
|
|
73
|
|
97
|
|
280
|
|
352
|
|
Pension and OPEB,
net
|
(146)
|
|
(146)
|
|
(199)
|
|
(187)
|
|
(215)
|
|
Deconsolidation
gain
|
-
|
|
-
|
|
-
|
|
-
|
|
(95)
|
|
Asset impairments and
other (gains)/losses
|
(1)
|
|
(1)
|
|
(11)
|
|
24
|
|
(11)
|
|
Equity earnings, net of
dividends remitted
|
(41)
|
|
(46)
|
|
8
|
|
(133)
|
|
(38)
|
|
Reorganization items,
net
|
-
|
|
(1,056)
|
|
30
|
|
(933)
|
|
60
|
|
Other non-cash
items
|
45
|
|
81
|
|
9
|
|
81
|
|
8
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(53)
|
|
(53)
|
|
15
|
|
(132)
|
|
(127)
|
|
Inventories
|
5
|
|
5
|
|
27
|
|
(70)
|
|
33
|
|
Accounts
payable
|
174
|
|
174
|
|
29
|
|
229
|
|
79
|
|
Other
|
(7)
|
|
(233)
|
|
(10)
|
|
(86)
|
|
(89)
|
|
Net cash from (used by)
Operating Activities
|
154
|
|
(49)
|
|
292
|
|
174
|
|
141
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
(92)
|
|
(92)
|
|
(64)
|
|
(209)
|
|
(151)
|
|
Proceeds from asset
sales
|
16
|
|
16
|
|
64
|
|
61
|
|
69
|
|
Investments in joint
ventures
|
-
|
|
-
|
|
(30)
|
|
(3)
|
|
(30)
|
|
Cash associated with
deconsolidation
|
-
|
|
-
|
|
-
|
|
-
|
|
(11)
|
|
Net cash used by Investing
Activities
|
(76)
|
|
(76)
|
|
(30)
|
|
(151)
|
|
(123)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash restriction
|
16
|
|
121
|
|
(31)
|
|
59
|
|
(133)
|
|
Short term debt, net
|
6
|
|
6
|
|
5
|
|
(3)
|
|
(19)
|
|
Rights offering proceeds,
net
|
-
|
|
1,201
|
|
-
|
|
1,190
|
|
-
|
|
Debt proceeds, net
|
-
|
|
472
|
|
72
|
|
481
|
|
128
|
|
Principal payments on
debt
|
(61)
|
|
(1,688)
|
|
(54)
|
|
(1,787)
|
|
(173)
|
|
Other
|
(1)
|
|
(1)
|
|
(6)
|
|
(22)
|
|
(62)
|
|
Net cash (used by) from
Financing Activities
|
(40)
|
|
111
|
|
(14)
|
|
(82)
|
|
(259)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on
cash
|
1
|
|
1
|
|
2
|
|
2
|
|
23
|
|
Net increase (decrease) in
cash
|
39
|
|
(13)
|
|
250
|
|
(57)
|
|
(218)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of
period
|
866
|
|
918
|
|
712
|
|
962
|
|
1,180
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of
period
|
$
905
|
|
$
905
|
|
$
962
|
|
$
905
|
|
$
962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
|
|
RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
|
|
(Dollars
in Millions)
|
|
(Unaudited)
|
|
|
In this press release the Company has provided information
regarding certain non-GAAP financial measures including "Adjusted
EBITDA" and "free cash flow." Such non-GAAP financial
measures are reconciled to their closest GAAP financial measure in
the schedules below.
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 continuing operating
activities across reporting periods. The Company defines Adjusted
EBITDA as net income attributable to Visteon, plus net interest
expense, provision for income taxes and depreciation and
amortization, as further adjusted to eliminate the impact of asset
impairments, gains or losses on divestitures, net restructuring
expenses and other reimbursable costs, certain non-recurring
employee charges and benefits, reorganization items, and other
non-operating gains and losses. Because not all companies use
identical calculations this presentation of Adjusted EBITDA may not
be comparable to other similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
Estimated
|
|
|
|
December
31
|
|
December
31
|
|
Full
Year
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Combined
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to
Visteon
|
|
$
86
|
|
$
1,134
|
|
$
276
|
|
$
1,026
|
|
$
128
|
|
$ 25 -
75
|
|
Interest expense,
net
|
|
10
|
|
10
|
|
4
|
|
170
|
|
106
|
|
50
|
|
Provision for income
taxes
|
|
19
|
|
56
|
|
17
|
|
150
|
|
80
|
|
140
|
|
Depreciation and
amortization
|
|
73
|
|
73
|
|
97
|
|
280
|
|
352
|
|
320
|
|
Asset impairments, other
(gains)/losses
|
|
(1)
|
|
(1)
|
|
(11)
|
|
24
|
|
(11)
|
|
-
|
|
Deconsolidation
gain
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(95)
|
|
-
|
|
Restructuring and other
related items
|
|
28
|
|
28
|
|
12
|
|
33
|
|
29
|
|
75
|
|
OPEB termination and other
employee charges
|
|
(146)
|
|
(146)
|
|
(195)
|
|
(176)
|
|
(195)
|
|
-
|
|
Reorganization and other
related items
|
|
40
|
|
(1,016)
|
|
30
|
|
(893)
|
|
60
|
|
10 - 0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
109
|
|
$
138
|
|
$
230
|
|
$
614
|
|
$
454
|
|
$ 620 - 660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is not a recognized term under 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) the Company's credit
agreements use measures similar to Adjusted EBITDA to measure
compliance with certain covenants.
Free Cash Flow: Free cash flow is presented as a
supplemental measure of the Company's liquidity that management
believes is useful to investors in analyzing the Company's ability
to service and repay its debt. The Company defines free cash flow
as cash flow from operating activities less capital expenditures.
Because not all companies use identical calculations, this
presentation of free cash flow may not be comparable to other
similarly titled measures of other companies.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
Estimated
|
|
|
|
December
31
|
|
December
31
|
|
Full
Year
|
|
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Combined
|
|
Predecessor
|
|
Combined
|
|
Predecessor
|
|
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from (used by) Operating
Activities
|
|
$
154
|
|
$
(49)
|
|
$
292
|
|
$
174
|
|
$
141
|
|
$
45
|
|
Capital
expenditures
|
|
(92)
|
|
(92)
|
|
(64)
|
|
(209)
|
|
(151)
|
|
(270)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
$
62
|
|
$
(141)
|
|
$
228
|
|
$
(35)
|
|
$
(10)
|
|
$
(225)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is not a recognized term under GAAP and does not
purport to be a substitute for cash flows from operating activities
as a measure of liquidity. Free cash flow has limitations as an
analytical tool and does not reflect cash used to service debt and
does not reflect funds available for investment or other
discretionary uses. In addition, the Company uses free cash
flow (i) as a factor in incentive compensation decisions, and (ii)
for planning and forecasting future periods.
SOURCE Visteon Corporation