VAN BUREN TOWNSHIP, Mich.,
Feb. 25, 2014 /PRNewswire/
--
- Fourth-quarter performance contributes to solid
year-over-year gains
- 2013 sales, adjusted EBITDA, net income higher than
2012
- Full-year sales of $7.44
billion ($1.96 billion in
fourth quarter)
- Record adjusted EBITDA of $704
million ($187 million in
fourth quarter)
- 2013 net income attributable to Visteon of $690 million ($513
million in fourth quarter)
- Strong cash performance
- Positive full-year cash from operations of $312 million
- Total cash of $1.7 billion
and total debt of $730
million
- Company completed key strategic actions in 2013
- Integrated global climate business
- Sold ownership interest in Chinese interiors joint
venture
- Acquired controlling interest in Yanfeng electronics
business
- Completed $250 million in
share repurchases
- Won $1.8 billion in new
business in core climate and electronics businesses
Visteon Corporation (NYSE: VC) today announced full-year 2013
results, reporting net income attributable to Visteon of
$690 million, or $13.50 per diluted share, an increase of
$590 million compared with 2012.
Visteon's 2013 fourth-quarter and full-year results included gains
totaling $465 million related to the
sale of Visteon's 50 percent ownership interest in Yanfeng Visteon
Automotive Trim Systems Co., Ltd. (YFV), partially offset by
$51 million of related taxes.
(Logo:
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Driven by double-digit sales increases in its core climate and
electronics businesses, Visteon reported full-year sales of
$7.44 billion, an increase of
$582 million or 8 percent compared
with 2012. Full-year adjusted EBITDA, a non-GAAP financial measure
as defined below, was $704 million,
an increase of $78 million or 12
percent compared with 2012. Adjusted free cash flow, a non-GAAP
financial measure as defined below, was $232
million for the full year 2013 – up $130 million from 2012.
In 2013, customers awarded Visteon climate and electronics new
business wins totaling $1.8 billion
in annual revenue, including $685
million of incremental new wins and $1,155 million of rewin business. Visteon has an
expected backlog for climate and electronics of approximately
$900 million in net annual new
business for the period 2014-16.
"We delivered a strong finish to a very good year highlighted by
several achievements, including integrating our global climate
business and selling our Yanfeng
Visteon interiors joint venture, while consolidating
Yanfeng's electronics operations into our global electronics
business," said Timothy D.
Leuliette, president and CEO. "We achieved double-digit
sales increases in North America
and Asia, fueled by our customers'
desire for innovative climate and electronics technology. With a
low-cost global footprint and solid balance sheet, Visteon is
well-positioned for future success as we work to complete the
acquisition of Johnson Controls' electronics business and divest
our interiors business. Our 24,000 employees around the world
remain focused on creating value for customers and
shareholders."
Fourth Quarter in Review
Sales of $1.96 billion for the
fourth quarter of 2013 increased $135
million from $1.82 billion for
the same quarter a year earlier. Hyundai-Kia accounted for
approximately 35 percent of Visteon's fourth-quarter sales, with
Ford Motor Company representing 25 percent, and Renault-Nissan and
PSA Peugeot-Citroen each accounting for 4 percent. On a regional
basis, Asia accounted for 50
percent of total product sales, up from 46 percent for the same
period last year, while Europe
represented 29 percent, down slightly from 30 percent a year
earlier. North America and
South America represented 17
percent and 4 percent, respectively, of total product sales for the
fourth quarter of 2013.
Climate sales were $1.26 billion
for the fourth quarter of 2013, $91
million higher than the same quarter last year. Higher
production volumes and net new business increased sales by
$85 million, primarily attributable
to volume increases in Asia and
North America.
Electronics sales were $396
million for the fourth quarter, $59
million higher than the fourth quarter of 2012. The increase
is explained by the consolidation of YFVE, which increased sales by
$66 million
Interiors sales were $317 million
for the fourth quarter of 2013, $19
million lower than the fourth quarter of 2012. Lower vehicle
production volumes, primarily in Europe, decreased sales by $12 million.
Adjusted EBITDA for the fourth quarter of 2013 was $187 million, compared with $202 million in the same period a year earlier,
with the decrease largely reflecting lower year-over-year
commercial agreements, unfavorable currency and increased
engineering investment.
For the fourth quarter of 2013, Visteon reported net income
attributable to Visteon of $513
million, or $10.32 per diluted
share, on sales of $1.96 billion –
the highest sales of any quarter in 2013. Adjusted net
income, which excludes the gain from the YFV sale and related
taxes, restructuring and other transaction costs, was $96 million for the quarter or $1.93 per diluted share.
Cash and Debt Balances
As of Dec. 31, 2013, Visteon had
global cash balances totaling $1.7
billion, including restricted cash of $25 million and total debt of $730 million.
For full year 2013, Visteon generated $312 million of cash from operations. Capital
expenditures of $269 million in 2013
were $40 million higher than in 2012,
primarily related to growth in the climate segment. For 2013, free
cash flow, as defined by operating income less capital
expenditures, was $43 million
compared with $10 million for
2012.
For the fourth quarter of 2013, Visteon generated $133 million of cash from operations, compared
with $76 million in the same period a
year earlier. Capital expenditures in the fourth quarter of 2013
were $105 million, up from
$83 million in the fourth quarter of
2012. Free cash flow was $28 million
in the fourth quarter of 2013, compared with a use of $7 million in the fourth quarter of 2012.
Yanfeng Transactions
During the fourth quarter, Visteon sold its 50 percent ownership
interest in its Chinese joint venture YFV to Huayu Automotive
Systems Co., Ltd. (HASCO) for cash proceeds of $928 million before applicable taxes. Visteon
also received approximately $180
million in dividend distributions from YFV and related
entities based on previously undistributed earnings for 2012 and
2013. Visteon expects to receive more than $1 billion in total after-tax proceeds as a
result of the series of transactions.
The sale of the YFV stake is the largest part of a series of
transactions that also includes the sale of certain other interiors
joint ventures and the acquisition by Visteon of a controlling
interest in Yanfeng Visteon Automotive Electronics Co., Ltd.
(YFVE), which was completed in November
2013.
Other Developments
On Jan. 13, Visteon announced an
agreement to purchase the automotive electronics business of
Johnson Controls (NYSE: JCI) in a cash transaction valued at
$265 million, subject to adjustment.
The acquisition is subject to certain regulatory and other consents
and approvals and is expected to be completed in the second quarter
of 2014. Upon completion, the acquisition will strengthen Visteon's
global scale in electronics, diversify its customer base and bring
new technologies to help grow the business.
Since the beginning of the fourth quarter of 2012, Visteon
completed stock buyback programs totaling $300 million, including $250 million in 2013. The 2013 repurchase
programs reduced the outstanding share count by 3.9 million
shares.
Full-Year 2014 Outlook
Visteon projects 2014 sales with a mid-point of $7.8 billion, adjusted EBITDA with a mid-point of
$680 million, and adjusted free cash
flow, as defined below, with a mid-point of $125 million. The company has redefined adjusted
EBITDA for 2014 to exclude equity income and non-controlling
interest. Under this revised definition, Visteon's adjusted EBITDA
in 2013 would have been $600 million.
Also, as previously announced, Visteon is targeting $875 million of additional share repurchases
through 2015.
About Visteon
Visteon is a leading global automotive supplier delivering value
for vehicle manufacturers and shareholders through businesses
including:
- Halla Visteon Climate Control, majority-owned by Visteon and
the world's second largest global supplier of automotive climate
components and systems.
- Visteon Electronics, a leading supplier of audio and
infotainment, driver information, center stack electronics and
feature control modules.
- Visteon Interiors, a global provider of vehicle cockpit
modules, instrument panels, consoles and door trim modules.
Visteon designs, engineers and manufactures innovative
components and systems for virtually every vehicle manufacturer
worldwide. With corporate offices in Van
Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; Visteon has facilities in 29
countries and employs about 24,000 employees in its consolidated
operations. Learn more at www.visteon.com.
Conference Call and Presentation
Today, Tuesday, Feb. 25, at
9 a.m. ET, the company will host a
conference call for the investment community to discuss the
quarterly and full-year 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: 855-855-4109
Outside U.S./Canada:
706-643-3752
(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
30583935. 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,
2013).
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 Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2013. 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 2014 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
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Sales
|
$
|
1,958
|
|
$
|
1,823
|
|
$
|
7,439
|
|
$
|
6,857
|
Cost of
sales
|
1,756
|
|
1,625
|
|
6,755
|
|
6,268
|
Gross
margin
|
202
|
|
198
|
|
684
|
|
589
|
Selling, general and
administrative expenses
|
103
|
|
102
|
|
367
|
|
369
|
Equity in net income
of non-consolidated affiliates
|
79
|
|
43
|
|
213
|
|
226
|
Restructuring
expense
|
6
|
|
35
|
|
39
|
|
79
|
Interest expense,
net
|
11
|
|
7
|
|
39
|
|
35
|
Gain on Yanfeng
transactions
|
465
|
|
—
|
|
465
|
|
—
|
Other expense,
net
|
15
|
|
18
|
|
35
|
|
41
|
Income before income
taxes
|
611
|
|
79
|
|
882
|
|
291
|
Provision for income
taxes
|
66
|
|
19
|
|
107
|
|
121
|
Net income from
continuing operations
|
545
|
|
60
|
|
775
|
|
170
|
Loss from
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
(3)
|
Net income
|
545
|
|
60
|
|
775
|
|
167
|
Net income
attributable to non-controlling interests
|
32
|
|
21
|
|
85
|
|
67
|
Net income
attributable to Visteon Corporation
|
$
|
513
|
|
$
|
39
|
|
$
|
690
|
|
$
|
100
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
10.56
|
|
$
|
0.74
|
|
$
|
13.80
|
|
$
|
1.95
|
Discontinued operations
|
—
|
|
—
|
|
—
|
|
(0.06)
|
Basic earnings per
share attributable to Visteon Corporation
|
$
|
10.56
|
|
$
|
0.74
|
|
$
|
13.80
|
|
$
|
1.89
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
Continuing operations
|
$
|
10.32
|
|
$
|
0.74
|
|
$
|
13.50
|
|
$
|
1.93
|
Discontinued operations
|
—
|
|
—
|
|
—
|
|
(0.05)
|
Diluted earnings per
share attributable to Visteon Corporation
|
$
|
10.32
|
|
$
|
0.74
|
|
$
|
13.50
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
48.6
|
|
52.7
|
|
50.0
|
|
52.9
|
Diluted
|
49.7
|
|
53.0
|
|
51.1
|
|
53.3
|
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
644
|
|
$
|
(35)
|
|
$
|
849
|
|
$
|
128
|
Comprehensive income
(loss) attributable to Visteon Corporation
|
$
|
607
|
|
$
|
(68)
|
|
$
|
768
|
|
$
|
35
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Dollars in
Millions)
(Unaudited)
|
|
|
December
31
|
|
December
31
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Cash and
equivalents
|
$
|
1,677
|
|
$
|
825
|
Restricted
cash
|
25
|
|
20
|
Accounts receivable,
net
|
1,227
|
|
1,162
|
Inventories,
net
|
472
|
|
385
|
Other current
assets
|
352
|
|
271
|
Total current
assets
|
3,753
|
|
2,663
|
|
|
|
|
Property and
equipment, net
|
1,414
|
|
1,326
|
Equity in net assets
of non-consolidated affiliates
|
228
|
|
756
|
Intangible assets,
net
|
447
|
|
332
|
Other non-current
assets
|
185
|
|
79
|
Total
assets
|
$
|
6,027
|
|
$
|
5,156
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Short-term debt,
including current portion of long-term debt
|
$
|
106
|
|
$
|
96
|
Accounts
payable
|
1,232
|
|
1,027
|
Accrued employee
liabilities
|
202
|
|
175
|
Other current
liabilities
|
262
|
|
254
|
Total current
liabilities
|
1,802
|
|
1,552
|
|
|
|
|
Long-term
debt
|
624
|
|
473
|
Employee
benefits
|
440
|
|
571
|
Deferred tax
liabilities
|
137
|
|
181
|
Other non-current
liabilities
|
151
|
|
238
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
1
|
|
1
|
Stock
warrants
|
6
|
|
10
|
Additional paid-in
capital
|
1,291
|
|
1,269
|
Retained
earnings
|
956
|
|
266
|
Accumulated other
comprehensive loss
|
(12)
|
|
(90)
|
Treasury
stock
|
(322)
|
|
(71)
|
Total Visteon
Corporation stockholders' equity
|
1,920
|
|
1,385
|
Non-controlling
interests
|
953
|
|
756
|
Total
equity
|
2,873
|
|
2,141
|
Total liabilities and
equity
|
$
|
6,027
|
|
$
|
5,156
|
VISTEON
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in
Millions) (Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
OPERATING
|
|
|
|
|
|
|
|
Net income
|
$
|
545
|
|
$
|
60
|
|
$
|
775
|
|
$
|
167
|
Adjustments to
reconcile net income to net cash provided from operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
62
|
|
63
|
|
262
|
|
259
|
Asset
impairments
|
—
|
|
5
|
|
—
|
|
24
|
Equity in net income
of non-consolidated affiliates, net of dividends
remitted
|
85
|
|
(15)
|
|
(26)
|
|
(122)
|
Stock-based
compensation
|
1
|
|
6
|
|
15
|
|
25
|
Gain on Yanfeng
transactions and sale of other joint ventures
|
(465)
|
|
—
|
|
(470)
|
|
(19)
|
Other non-cash
items
|
3
|
|
4
|
|
6
|
|
26
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(43)
|
|
20
|
|
(21)
|
|
(38)
|
Inventories
|
25
|
|
28
|
|
(49)
|
|
(26)
|
Accounts
payable
|
64
|
|
(67)
|
|
97
|
|
(26)
|
Accrued income
taxes
|
2
|
|
1
|
|
(54)
|
|
10
|
Other assets and
other liabilities
|
(146)
|
|
(29)
|
|
(223)
|
|
(41)
|
Net cash provided
from operating activities
|
133
|
|
76
|
|
312
|
|
239
|
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
|
|
Capital
expenditures
|
(105)
|
|
(83)
|
|
(269)
|
|
(229)
|
Proceeds from
business divestitures and asset sales
|
938
|
|
3
|
|
977
|
|
191
|
Payments to acquire
interest in non-consolidated affiliate
|
(48)
|
|
—
|
|
(48)
|
|
—
|
Cash acquired in
consolidation of YFVE
|
38
|
|
—
|
|
38
|
|
—
|
Other
|
—
|
|
—
|
|
—
|
|
(2)
|
Net cash provided
from (used by) investing activities
|
823
|
|
(80)
|
|
698
|
|
(40)
|
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
|
|
Proceeds from
issuance of debt, net of issuance costs
|
—
|
|
19
|
|
204
|
|
831
|
Short-term debt,
net
|
(62)
|
|
3
|
|
(20)
|
|
5
|
Principal payments on
debt
|
(1)
|
|
—
|
|
(6)
|
|
(824)
|
Payments to
repurchase long-term bond
|
(52)
|
|
(52)
|
|
(52)
|
|
(52)
|
Payments to
repurchase common stock
|
—
|
|
(50)
|
|
(250)
|
|
(50)
|
Dividends paid to
non-controlling interests
|
—
|
|
(4)
|
|
(22)
|
|
(27)
|
Other
|
—
|
|
2
|
|
5
|
|
2
|
Net cash used by
financing activities
|
(115)
|
|
(82)
|
|
(141)
|
|
(115)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and equivalents
|
(1)
|
|
10
|
|
(17)
|
|
18
|
Net increase
(decrease) in cash and equivalents
|
840
|
|
(76)
|
|
852
|
|
102
|
Cash and equivalents
at beginning of period
|
837
|
|
901
|
|
825
|
|
723
|
Cash and equivalents
at end of period
|
$
|
1,677
|
|
$
|
825
|
|
$
|
1,677
|
|
$
|
825
|
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 continuing operating
activities across reporting periods. In 2013 and 2012, 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, discontinued
operations, net restructuring expenses and other reimbursable
costs, non-cash stock-based compensation expense, 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 similarly titled measures of other
companies.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31
|
|
December
31
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Adjusted
EBITDA
|
$
|
187
|
|
$
|
202
|
|
$
|
704
|
|
$
|
626
|
Interest expense, net
|
11
|
|
7
|
|
39
|
|
35
|
Provision for income taxes
|
66
|
|
19
|
|
107
|
|
121
|
Depreciation and amortization
|
62
|
|
63
|
|
262
|
|
258
|
Restructuring expense
|
6
|
|
35
|
|
39
|
|
79
|
Gain on Yanfeng transactions
|
(465)
|
|
—
|
|
(465)
|
|
—
|
Equity in gain of non-consolidated affiliates
|
(29)
|
|
—
|
|
(29)
|
|
(63)
|
Non-cash, stock-based compensation expense
|
3
|
|
6
|
|
17
|
|
25
|
Other
|
20
|
|
33
|
|
44
|
|
71
|
Net income
attributable to Visteon Corporation
|
$
|
513
|
|
$
|
39
|
|
$
|
690
|
|
$
|
100
|
Beginning in 2014, the Company has modified its definition of
Adjusted EBITDA to exclude non-controlling interests and equity in
net income of non-consolidated affiliates. In 2014, the
Company defines Adjusted EBITDA as net income attributable to
Visteon, plus non-controlling interests, net interest expense,
provision for income taxes and depreciation and amortization, as
further adjusted to eliminate the impact of equity in net income of
non-consolidated affiliates, asset impairments, gains or losses on
divestitures, discontinued operations, net restructuring expenses
and other reimbursable costs, non-cash stock-based compensation
expense, certain non-recurring employee charges and benefits,
reorganization items, and other non-operating gains and losses.
|
Year
Ended
|
|
Estimated
|
|
December
31
|
|
Full
Year
|
|
2013
|
|
2014
|
Adjusted EBITDA
(2012/2013 Definition)
|
$
|
704
|
|
|
Equity in affiliates/Non-controlling interests
|
(104)
|
|
|
Adjusted EBITDA (2014
Definition)
|
$
|
600
|
|
$660-$700
|
Equity in affiliates/Non-controlling interests
|
(104)
|
|
100
|
Interest expense, net
|
39
|
|
40
|
Provision for income taxes
|
107
|
|
135
|
Depreciation and amortization
|
262
|
|
285
|
Restructuring expense
|
39
|
|
20
|
Gain on Yanfeng transactions
|
(465)
|
|
—
|
Equity in gain of non-consolidated affiliates
|
(29)
|
|
—
|
Non-cash, stock-based compensation expense
|
17
|
|
15
|
Other
|
44
|
|
55
|
Net income
attributable to Visteon Corporation
|
$
|
690
|
|
$10 - $50
|
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
similar measures for compliance with certain covenants.
Free Cash Flow and Adjusted Free Cash Flow: Free cash
flow and adjusted free cash 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 payments net of customer recoveries,
transformation and reorganization-related payments. Because not all
companies use identical calculations, this presentation of free
cash flow and adjusted free cash 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
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2014
|
Cash provided from
operating activities
|
$
|
133
|
|
$
|
76
|
|
$
|
312
|
|
$
|
239
|
|
$275 -
$375
|
Capital
expenditures
|
(105)
|
|
(83)
|
|
(269)
|
|
(229)
|
|
(300)
|
Free cash
flow
|
$
|
28
|
|
$
|
(7)
|
|
$
|
43
|
|
$
|
10
|
|
($25) -
$75
|
Restructuring
payments, net
|
8
|
|
3
|
|
48
|
|
46
|
|
50
|
Transformation and
reorganization-related payments
|
100
|
|
11
|
|
141
|
|
46
|
|
50
|
Adjusted free cash
flow
|
$
|
136
|
|
$
|
7
|
|
$
|
232
|
|
$
|
102
|
|
$75 - $175
|
Free Cash Flow and Adjusted Free Cash Flow are not recognized
terms under 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, discontinued operations and other
non-operating gains and losses. 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
|
|
Twelve Months
Ended
|
|
Estimated
|
|
December
31
|
|
December
31
|
|
Full
Year
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2014
|
Diluted earnings
per share:
|
|
Net income
attributable to Visteon
|
$
|
513
|
|
$
|
39
|
|
$
|
690
|
|
$
|
100
|
|
$10-$50
|
Average shares outstanding, diluted (in millions)
|
49.7
|
|
53.0
|
|
51.1
|
|
53.3
|
|
45.5
|
Diluted earnings per
share
|
$
|
10.32
|
|
$
|
0.74
|
|
$
|
13.50
|
|
$
|
1.88
|
|
$0.23-$1.11
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share:
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Visteon
|
$
|
513
|
|
$
|
39
|
|
$
|
690
|
|
$
|
100
|
|
$10-$50
|
Restructuring
expense
|
6
|
|
35
|
|
39
|
|
79
|
|
20
|
Gain on Yanfeng
transactions
|
(465)
|
|
—
|
|
(465)
|
|
—
|
|
—
|
Equity in gain of
non-consolidated affiliates
|
(29)
|
|
—
|
|
(29)
|
|
(63)
|
|
—
|
Taxes related to
Yanfeng transactions
|
51
|
|
—
|
|
51
|
|
—
|
|
—
|
Other
|
20
|
|
33
|
|
45
|
|
77
|
|
70
|
Adjusted net
income
|
$
|
96
|
|
$
|
107
|
|
$
|
331
|
|
$
|
193
|
|
$100-$140
|
Average shares outstanding, diluted (in millions)
|
49.7
|
|
53.0
|
|
51.1
|
|
53.3
|
|
45.5
|
Adjusted earnings per
share
|
$
|
1.93
|
|
$
|
2.02
|
|
$
|
6.48
|
|
$
|
3.62
|
|
$2.21-$3.09
|
Adjusted Net Income and Adjusted Earnings Per Share are
not recognized terms under 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.
Follow Visteon:
www.twitter.com/visteon
www.youtube.com/visteon
www.google.com/+visteon
blog.visteon.com
www.linkedin.com/company/visteon
SOURCE Visteon Corporation