VAN BUREN TOWNSHIP, Mich.,
Nov. 3, 2011 /PRNewswire/ --
Third-Quarter Financial Summary
- Product sales of $2.04
billion, up 19.7 percent from third quarter
2010
- Net income of $41 million,
or 79 cents per diluted
share
- Adjusted EBITDA of $166
million, up 11 percent from third quarter 2010
- New business wins year-to-date expected to generate
$865 million in future annual
sales
- 2011 full-year sales and earnings guidance
reaffirmed
Visteon Corporation (NYSE: VC) today announced third-quarter
2011 results, reporting net income of $41
million, or 79 cents per
diluted share, on product sales of $2.04
billion, compared with a net loss of $140 million on product sales of $1.70 billion for the third quarter of 2010.
Adjusted EBITDA, as defined below, for the third quarter of
2011 was $166 million, compared with
$149 million for the third quarter of
2010.
(Logo: http://photos.prnewswire.com/prnh/20001201/DEF008LOGO
)
“In each of our four product lines and in every region where we
operate, our third-quarter sales were higher than a year ago,” said
Donald J. Stebbins, Visteon’s
chairman, chief executive officer and president. “In addition, our
year-over-year profitability continues to strengthen as we generate
solid new business wins in both developed and emerging
markets.”
Visteon has won a substantial amount of new business during the
first nine months of 2011, with nearly half to be manufactured in
Asia. These new business wins are
expected to generate annual sales of approximately $865 million in future years, a significant
increase when compared with full-year 2010 new business wins of
$606 million.
Third Quarter 2011 Results
Product sales increased by $335
million, or nearly 20 percent, compared with the third
quarter of 2010, reflecting higher production volumes across all
major customers and favorable currency. Hyundai Motor Group
accounted for 32 percent of Visteon’s third-quarter product sales,
with Ford Motor Co. representing 26 percent. Renault-Nissan
accounted for 8 percent and PSA Peugeot-Citroen about 5 percent. On
a regional basis, Asia accounted
for 44 percent of total product sales, while Europe represented 33 percent, North America 17 percent and South America 6 percent.
Product gross margin for the third quarter of 2011 was
$148 million, up $109 million compared with $39 million in the third quarter 2010, which
included a $111 million net charge
related to changes in U.S. other post-retirement employee benefit
(OPEB) plans. Benefits from higher production volumes and favorable
currency were more than offset by the impact of higher depreciation
and amortization resulting from fresh-start accounting and
unfavorable net cost performance, including $7 million of employee-related costs associated
with a plant closure in Europe.
Selling, general and administrative (SG&A) expense of
$100 million for the third quarter of
2011 increased $9 million compared
with the third quarter of 2010. Currency and intangible asset
amortization were the primary drivers of the increase. SG&A as
a percentage of sales decreased to 4.9 percent, from 5.3 percent in
the same quarter a year ago.
During the third quarter of 2011, Visteon recognized
$43 million of equity in the net
income of non-consolidated affiliates, compared with $35 million in 2010, for an increase of 23
percent. Yanfeng Visteon Automotive Trim Systems Co., Ltd. (YFV)
and related affiliate interests contributed $40 million in equity income, an increase of
$8 million compared with a year
earlier. YFV, a 50-percent Visteon owned entity, recorded total
sales for the third-quarter 2011 of $740
million, compared with $713
million a year earlier for a 4 percent increase.
For the third quarter of 2011, Visteon reported net income of
$41 million, or 79 cents per diluted share. This compares with a
net loss of $140 million in the same
period in 2010. Adjusted EBITDA (a non-GAAP financial measure, as
defined below) for the third quarter of 2011 was $166 million, compared with $149 million for the same period a year earlier.
The $17 million year-over-year
increase was driven by higher sales and favorable currency,
partially offset by net cost performance.
First Nine Months of 2011
For the first nine months of 2011, total product sales of
$6.19 billion were higher by
$751 million, or 14 percent, compared
with the same period a year earlier. For the first nine months,
Visteon reported net income of $106
million, or $2.04 per diluted
share, compared with a net loss of $108
million during the first nine months of 2010. Net income for
the first nine months of 2011 included a loss on debt
extinguishment of $24 million
associated with the successful debt refinancing completed in April,
and $18 million of net restructuring
charges principally related to the announced closure of a plant in
Europe. Adjusted EBITDA for the
first nine months of 2011 was $526
million, compared with $476
million for the first nine months of 2010.
Visteon’s higher sales for the first nine months reflected
increased production volumes and favorable currency, partially
offset by the impact of divestitures and closures and pricing.
Cash and Debt
As of Sept. 30, 2011, Visteon had
global cash balances of $780 million,
including $22 million of restricted
cash, compared with $979 million and
$74 million, respectively, at the end
of 2010. Total debt was $588
million as of Sept. 30, 2011,
and there were no outstanding borrowings under Visteon’s
$220 million asset-based revolving
credit facility.
Visteon generated $35 million in
cash from operations in the third quarter of 2011, reflecting
strong cash earnings performance partially offset by increased
working capital. Capital expenditures totaled $59 million for the third quarter of 2011, about
$8 million more than a year earlier,
as the company invested to meet future customer program
requirements, primarily in Asia.
Free cash flow (a non-GAAP financial measure, as defined below) was
a use of $24 million in the third
quarter of 2011, compared with a use of $1
million in the third quarter of 2010.
Duckyang Transaction
On Oct. 31, 2011, the company sold
a portion of its ownership interests in Duckyang Industries Co.
Ltd. ("Duckyang") and the company’s voting interests were reduced
to a non-controlling level. Duckyang will be deconsolidated from
the company’s financial statements effective Oct. 31, 2011, and the company will commence
equity method accounting. Duckyang reported sales of $514 million for the nine months ended
Sept. 30, 2011, and had cash balances
of $57 million, total assets of
$187 million and total liabilities of
$129 million as of Sept. 30, 2011.
Reaffirms Sales and Earnings Guidance for 2011 Full
Year
Visteon expects full-year 2011 sales to be in the range of
$8.0 billion to $8.2 billion and
adjusted EBITDA in the range of $660 million
to $680 million. Free cash flow is expected to be a use of
approximately $150 million.
“We are reaffirming our sales and EBITDA guidance for the year,”
said Stebbins. “As we look forward, we believe global vehicle
production will continue its upward momentum and we’re confident in
our ability to keep winning profitable new business based on our
competitive cost structure, our innovative technologies developed
by our world-class engineers, and our strong presence in the growth
markets of the world. Auto manufacturers are showing they value our
ability to bring differentiating technology to vehicles and to
support them in all regions.”
Visteon is a leading global automotive supplier that designs,
engineers and manufactures innovative climate, interior, electronic
and lighting products for vehicle manufacturers. With corporate
offices in Van Buren Township,
Mich. (U.S.); Shanghai,
China; and Chelmsford, UK;
the company has facilities in 27 countries and employs
approximately 27,000 people. Learn more at www.visteon.com.
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.
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) 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; (2) our
ability to satisfy pension and other post-employment benefit
obligations; (3) our ability to access funds generated by foreign
subsidiaries and joint ventures on a timely and cost-effective
basis; (4) 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, work stoppages, natural disasters or civil
unrest; (5) 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; (6) 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; (7) 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 (8) 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.
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
|
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Predecessor
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
2,037
|
|
$
|
1,702
|
|
$
|
6,188
|
|
$
|
5,437
|
|
Services
|
|
-
|
|
|
28
|
|
|
-
|
|
|
142
|
|
|
|
2,037
|
|
|
1,730
|
|
|
6,188
|
|
|
5,579
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
1,889
|
|
|
1,663
|
|
|
5,694
|
|
|
4,877
|
|
Services
|
|
-
|
|
|
27
|
|
|
-
|
|
|
140
|
|
|
|
1,889
|
|
|
1,690
|
|
|
5,694
|
|
|
5,017
|
|
Gross margin
|
|
148
|
|
|
40
|
|
|
494
|
|
|
562
|
|
Selling, general and
administrative expense
|
|
100
|
|
|
91
|
|
|
313
|
|
|
292
|
|
Reorganization expense,
net
|
|
-
|
|
|
54
|
|
|
-
|
|
|
123
|
|
Other expense, net
|
|
1
|
|
|
3
|
|
|
18
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
47
|
|
|
(108)
|
|
|
163
|
|
|
102
|
|
Interest expense, net
|
|
5
|
|
|
31
|
|
|
22
|
|
|
160
|
|
Loss on debt
extinguishment
|
|
-
|
|
|
-
|
|
|
24
|
|
|
-
|
|
Equity in net income of
non-consolidated affiliates
|
|
43
|
|
|
35
|
|
|
130
|
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
85
|
|
|
(104)
|
|
|
247
|
|
|
42
|
|
Provision for income
taxes
|
|
25
|
|
|
19
|
|
|
87
|
|
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
60
|
|
|
(123)
|
|
|
160
|
|
|
(52)
|
|
Net income attributable to
non-controlling interests
|
|
19
|
|
|
17
|
|
|
54
|
|
|
56
|
|
Net income (loss) attributable
to Visteon
|
$
|
41
|
|
$
|
(140)
|
|
$
|
106
|
|
$
|
(108)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
attributable to Visteon
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.80
|
|
$
|
(1.08)
|
|
$
|
2.07
|
|
$
|
(0.83)
|
|
Diluted
|
$
|
0.79
|
|
$
|
(1.08)
|
|
$
|
2.04
|
|
$
|
(0.83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
51.5
|
|
|
129.4
|
|
|
51.1
|
|
|
129.4
|
|
Diluted
|
|
52.0
|
|
|
129.4
|
|
|
52.0
|
|
|
129.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
|
September
30
|
|
December
31
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
$
|
758
|
|
$
|
905
|
|
Restricted cash
|
|
22
|
|
|
74
|
|
Accounts receivable,
net
|
|
1,239
|
|
|
1,092
|
|
Inventories, net
|
|
406
|
|
|
364
|
|
Other current assets
|
|
279
|
|
|
267
|
|
Total current
assets
|
|
2,704
|
|
|
2,702
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
1,528
|
|
|
1,576
|
|
Equity in net assets of
non-consolidated affiliates
|
|
547
|
|
|
439
|
|
Intangible assets,
net
|
|
366
|
|
|
402
|
|
Other non-current
assets
|
|
89
|
|
|
89
|
|
Total assets
|
$
|
5,234
|
|
$
|
5,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt, including
current portion of long-term debt
|
$
|
81
|
|
$
|
78
|
|
Accounts payable
|
|
1,173
|
|
|
1,203
|
|
Accrued employee
liabilities
|
|
184
|
|
|
196
|
|
Other current
liabilities
|
|
297
|
|
|
365
|
|
Total current
liabilities
|
|
1,735
|
|
|
1,842
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
507
|
|
|
483
|
|
Employee benefits
|
|
509
|
|
|
526
|
|
Deferred income taxes
|
|
187
|
|
|
190
|
|
Other non-current
liabilities
|
|
229
|
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Preferred
stock
|
|
-
|
|
|
-
|
|
Common
stock
|
|
1
|
|
|
1
|
|
Stock
warrants
|
|
13
|
|
|
29
|
|
Additional paid-in
capital
|
|
1,156
|
|
|
1,099
|
|
Retained
earnings
|
|
192
|
|
|
86
|
|
Accumulated other
comprehensive income
|
|
18
|
|
|
50
|
|
Treasury
stock
|
|
(7)
|
|
|
(5)
|
|
Total Visteon Corporation
shareholders' equity
|
|
1,373
|
|
|
1,260
|
|
Non-controlling
interests
|
|
694
|
|
|
690
|
|
Total shareholders'
equity
|
|
2,067
|
|
|
1,950
|
|
Total liabilities and
shareholders' equity
|
$
|
5,234
|
|
$
|
5,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Dollars in
Millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30
|
|
September
30
|
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Predecessor
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
60
|
|
$
|
(123)
|
|
$
|
160
|
|
$
|
(52)
|
|
Adjustments to reconcile net
income (loss) to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
86
|
|
|
67
|
|
|
248
|
|
|
207
|
|
Equity in net income of
non-consolidated affiliates, net of dividends remitted
|
|
(5)
|
|
|
(25)
|
|
|
(88)
|
|
|
(87)
|
|
Loss on debt
extinguishment
|
|
-
|
|
|
-
|
|
|
24
|
|
|
-
|
|
Pension and OPEB,
net
|
|
-
|
|
|
124
|
|
|
-
|
|
|
(41)
|
|
Reorganization expense,
net
|
|
-
|
|
|
54
|
|
|
-
|
|
|
123
|
|
Asset impairments and
loss on sale of assets
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25
|
|
Other non-cash
items
|
|
10
|
|
|
(15)
|
|
|
26
|
|
|
(1)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
63
|
|
|
27
|
|
|
(132)
|
|
|
(79)
|
|
Inventories
|
|
(10)
|
|
|
(25)
|
|
|
(50)
|
|
|
(75)
|
|
Accounts
payable
|
|
(98)
|
|
|
1
|
|
|
(17)
|
|
|
55
|
|
Other
|
|
(71)
|
|
|
(35)
|
|
|
(116)
|
|
|
148
|
|
Net cash provided from
operating activities
|
|
35
|
|
|
50
|
|
|
55
|
|
|
223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(59)
|
|
|
(51)
|
|
|
(185)
|
|
|
(117)
|
|
Other
|
|
(7)
|
|
|
19
|
|
|
(2)
|
|
|
42
|
|
Net cash used by investing
activities
|
|
(66)
|
|
|
(32)
|
|
|
(187)
|
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash restriction, net
|
|
-
|
|
|
(14)
|
|
|
52
|
|
|
(62)
|
|
Short-term debt, net
|
|
2
|
|
|
(4)
|
|
|
11
|
|
|
(9)
|
|
Debt proceeds, net
|
|
1
|
|
|
1
|
|
|
503
|
|
|
9
|
|
Principal payments on
debt
|
|
(7)
|
|
|
(87)
|
|
|
(513)
|
|
|
(99)
|
|
Rights offering fees
|
|
-
|
|
|
(11)
|
|
|
(33)
|
|
|
(11)
|
|
Other
|
|
(2)
|
|
|
(3)
|
|
|
(26)
|
|
|
(21)
|
|
Net cash used by financing
activities
|
|
(6)
|
|
|
(118)
|
|
|
(6)
|
|
|
(193)
|
|
Effect of exchange rate changes
on cash
|
|
(44)
|
|
|
39
|
|
|
(9)
|
|
|
1
|
|
Net decrease in cash and
equivalents
|
|
(81)
|
|
|
(61)
|
|
|
(147)
|
|
|
(44)
|
|
Cash and equivalents at
beginning of period
|
|
839
|
|
|
979
|
|
|
905
|
|
|
962
|
|
Cash and equivalents at end of
period
|
$
|
758
|
|
$
|
918
|
|
$
|
758
|
|
$
|
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (loss) 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
|
|
Nine Months
Ended
|
|
Estimated
|
|
|
September
30
|
|
September
30
|
|
Full
Year
|
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Predecessor
|
|
2011
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Visteon
|
$
|
41
|
|
$
|
(140)
|
|
$
|
106
|
|
$
|
(108)
|
|
$
|
40-60
|
|
Interest expense,
net
|
|
5
|
|
|
31
|
|
|
22
|
|
|
160
|
|
|
30
|
|
Provision for
income taxes
|
|
25
|
|
|
19
|
|
|
87
|
|
|
94
|
|
|
130
|
|
Depreciation and
amortization
|
|
86
|
|
|
67
|
|
|
248
|
|
|
207
|
|
|
320
|
|
Restructuring and
other related costs, net
|
|
8
|
|
|
3
|
|
|
25
|
|
|
5
|
|
|
100
|
|
Loss on debt
extinguishment
|
|
-
|
|
|
-
|
|
|
24
|
|
|
-
|
|
|
24
|
|
Reorganization and
other related items, net
|
|
-
|
|
|
54
|
|
|
8
|
|
|
123
|
|
|
10
|
|
OPEB and other
employee charges
|
|
1
|
|
|
115
|
|
|
6
|
|
|
(30)
|
|
|
6
|
|
Impairments and
loss on sale of assets
|
|
-
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
166
|
|
$
|
149
|
|
$
|
526
|
|
$
|
476
|
|
$
|
660-680
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is not a recognized term under GAAP and does not
purport to be a substitute for net income (loss) 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
|
|
Nine Months
Ended
|
|
Estimated
|
|
|
September
30
|
|
September
30
|
|
Full
Year
|
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Predecessor
|
|
2011
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from operating
activities
|
$
|
35
|
|
$
|
50
|
|
$
|
55
|
|
$
|
223
|
|
$
|
115
|
|
Capital expenditures
|
|
(59)
|
|
|
(51)
|
|
|
(185)
|
|
|
(117)
|
|
|
(265)
|
|
Free cash flow
|
$
|
(24)
|
|
$
|
(1)
|
|
$
|
(130)
|
|
$
|
106
|
|
$
|
(150)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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