Visteon Corporation (NASDAQ:VC) today announced full-year 2017
results, reporting net income attributable to Visteon of $176
million, or $5.47 per diluted share, including $14 million of
restructuring expenses and $31 million of other net expenses,
partially offset by $17 million of net income associated with
discontinued operations.
Full-year sales were $3,146 million, a decrease of $15 million
compared with 2016, primarily attributable to the exit of Other
operations, partially offset by an increase in Electronics Product
Group sales. Net cash provided from operating activities was
$217 million for full year 2017.
In 2017, global vehicle manufacturers awarded Visteon new
business of $7.0 billion in lifetime revenue, with a record $2.4
billion in the fourth quarter. Fourth-quarter wins included
all-digital instrument cluster wins with three global automakers –
including the company’s first all-digital cluster win in Japan – as
well as a software-only Phoenix™ win in Europe. The ongoing
backlog, defined as cumulative remaining life-of-program booked
sales, was $19.4 billion as of Dec. 31, 2017, up from $16.5 billion
at the end of 2016, an increase of 18 percent.
"We finished the year strong, delivering our 12th consecutive
quarter of year-over-year improvement in adjusted EBITDA margin,"
said President and CEO Sachin Lawande. “We accomplished our key
strategic priorities for 2017, including strengthening the core
business, achieving double-digit sales growth in China, and
developing the DriveCore™ Level 3-plus autonomous driving platform.
By winning a record $7 billion in new business, we made excellent
progress toward our 2017-18 target of $12 billion in new business.
Our 2017 performance keeps us on track to meet our long-term growth
targets."
Fourth Quarter in Review
Visteon Corporation
Fourth-quarter sales were $797 million, compared with $816
million for the same period in 2016. The $19 million decrease is
primarily related to the exit of Other operations and customer
pricing, partially offset by Electronics product launches and
favorable currency.
Gross margin was $140 million, compared with $129 million a year
earlier. The $11 million increase reflected higher gross margin
related to the Electronics Product Group. Selling, general and
administrative expenses were $64 million for the fourth quarter of
2017, compared with $57 million for the fourth quarter of 2016,
driven primarily by higher information technology investments.
Net income attributable to Visteon was $25 million or $0.79 per
diluted share, compared with $2 million or $0.06 per diluted share
for the same period in 2016. 2017 fourth-quarter net income
included $4 million of restructuring and $34 million of other
expense primarily related to the divestiture of certain European
assets, partially offset by $9 million in income associated with
discontinued operations including a non-income tax settlement.
Electronics Product Group
Sales for the Electronics Product Group totaled $797 million, a
decrease of $6 million from the fourth quarter of 2016. The
year-over-year decrease was primarily related to customer pricing
reductions, partially offset by new product launches and favorable
currency impacts. On a regional basis, Asia accounted for 43
percent of sales, Europe 31 percent, North America 23 percent, and
South America 3 percent.
Gross margin for the fourth quarter of 2017 was $140 million,
compared with $129 million a year earlier. The $11 million increase
reflected the impact of improved engineering and material
efficiencies, partially offset by customer pricing and unfavorable
currency impacts.
Adjusted EBITDA, as defined below, for the Electronics Product
Group was $102 million for the fourth quarter of 2017, compared
with $98 million for the same quarter last year. The improvement
was primarily driven by favorable cost performance including
material and engineering cost efficiencies, partially offset by
customer pricing and unfavorable product mix. Adjusted EBITDA
margin was 12.8 percent for the fourth quarter of 2017, 60 basis
points higher than the prior-year.
For the fourth quarter of 2017, net income was $16 million or
$0.51 per diluted share, compared with net income of $20 million or
$0.60 per diluted share for the same period in 2016. The decrease
in net income included the 2017 loss on divestiture of certain
assets in Europe, partially offset by a decrease in restructuring
expenses year over year. Adjusted net income (as defined below),
which excludes these items, was $52 million or $1.64 per diluted
share for the fourth quarter of 2017, compared with $52 million or
$1.55 per diluted share for the same period in 2016.
Other Operations
By the end of 2016, Visteon exited its Other operations,
consisting of climate operations in South America and South Africa.
The company did not have sales or adjusted EBITDA related to the
Other operations in 2017. The fourth quarter of 2016 included sales
of $13 million and net income of $7 million. Going forward, the
company does not expect sales or adjusted EBITDA for the Other
operations. Cash and Debt Balances
As of Dec. 31, 2017, Visteon had cash and equivalents totaling
$709 million. Total debt as of Dec. 31 was $393 million.
For the fourth quarter of 2017, cash from operations was $86
million and capital expenditures were $30 million. Total Visteon
adjusted free cash flow, as defined below, for the fourth quarter
of 2017 was $58 million, compared with $82 million during the
fourth quarter of 2016. Year-to-date, adjusted free cash flow was
$148 million.
Share Repurchases
On Jan. 9, 2017, Visteon's board of directors authorized the
purchase of up to $400 million of the company's shares outstanding.
During 2017, the company completed $200 million of the authorized
repurchases by acquiring 1,978,144 shares at an average price of
$101.10. As of Dec. 31, 2017, the company had 31.5 million diluted
shares of common stock outstanding.
On Jan. 15, 2018, the company's board of directors authorized an
additional $500 million, for a total of $700 million of share
repurchases to be completed over a period expiring on Dec. 31,
2020.
About Visteon
Visteon is a global technology company that designs, engineers
and manufactures innovative cockpit electronics products and
connected car solutions for most of the world’s major vehicle
manufacturers. Visteon is a leading provider of instrument
clusters, head-up displays, information displays, infotainment,
audio systems, SmartCore™ cockpit domain controllers, vehicle
connectivity and the DriveCore™ autonomous driving platform.
Visteon also supplies embedded multimedia and smartphone
connectivity software solutions to the global automotive industry.
Headquartered in Van Buren Township, Michigan, Visteon has
approximately 10,000 employees at more than 40 facilities in 18
countries. Visteon had sales of $3.15 billion in 2017. Learn more
at www.visteon.com.
Conference Call and Presentation
Today, Thursday, Feb. 22, at 9 a.m. ET, the company will host a
conference call for the investment community to discuss the
quarter’s results and other related items. The conference call is
available to the general public via a live audio webcast.
The dial-in numbers to participate in the call are:
U.S./Canada: 866-411-5196Outside U.S./Canada: 970-297-2404
(Call approximately 10 minutes before the start of the
conference.)
The conference call and live audio webcast, related presentation
materials and other supplemental information will be accessible in
the investors section of Visteon’s website. A news release on
Visteon’s first-quarter results will be available in the news
section of the website.
A replay of the conference call will be available through the
company’s website or by dialing855-859-2056 (toll-free from the
U.S. and Canada) or 404-537-3406 (international). The conference ID
for the phone replay is 1775019. 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, 2017).
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, 2017. 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 2017
is not intended to indicate that Visteon is explicitly or
implicitly providing projections on those GAAP financial measures,
and actual results for such measures are likely to vary from those
presented. The reconciliations include all information reasonably
available to the company at the date of this press release and the
adjustments that management can reasonably predict.
Follow Visteon:
http://twitter.com/visteonhttp://www.youtube.com/user/visteon?feature=results_main http://blog.visteon.com/ http://www.linkedin.com/company/2865?trk=vsrp_companies_res_photo&trkInfo=VSRPsearchId:522343161373310041683,VSRPtargetId:2865,VSRPcmpt:primary https://plus.google.com/+visteon https://www.facebook.com/VisteonCorporation https://www.instagram.com/visteon/ http://www.slideshare.net/VisteonCorporation http://i.youku.com/u/UNDgyMjA1NjUxNg==?spm=a2h0k.8191407.0.0
Contacts:
Media:
Jim Fisher734-710-5557734-417-6184 –
mobilejfishe89@visteon.com
Investors:
Bill
Robertson734-710-8349william.robertson@visteon.com
|
VISTEON CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited, Dollars in Millions, Except Per Share
Data) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31 |
|
December 31 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Sales |
$ |
797 |
|
|
$ |
816 |
|
|
$ |
3,146 |
|
|
$ |
3,161 |
|
Cost of sales |
657 |
|
|
687 |
|
|
2,647 |
|
|
2,697 |
|
Gross margin |
140 |
|
|
129 |
|
|
499 |
|
|
464 |
|
Selling, general and
administrative expenses |
64 |
|
|
57 |
|
|
222 |
|
|
220 |
|
Restructuring expense,
net |
4 |
|
|
27 |
|
|
14 |
|
|
49 |
|
Interest expense,
net |
4 |
|
|
2 |
|
|
16 |
|
|
12 |
|
Equity in net income
(loss) of non-consolidated affiliates |
1 |
|
|
(1 |
) |
|
7 |
|
|
2 |
|
Loss on
divestiture |
33 |
|
|
— |
|
|
33 |
|
|
— |
|
(Loss) gain on
non-consolidated affiliate transactions |
— |
|
|
(1 |
) |
|
4 |
|
|
— |
|
Other expense, net |
1 |
|
|
7 |
|
|
2 |
|
|
24 |
|
Income from continuing
operations before income taxes |
35 |
|
|
34 |
|
|
223 |
|
|
161 |
|
Provision for income
taxes |
14 |
|
|
3 |
|
|
48 |
|
|
30 |
|
Net income from
continuing operations |
21 |
|
|
31 |
|
|
175 |
|
|
131 |
|
Net income (loss) from
discontinued operations, net of tax |
9 |
|
|
(25 |
) |
|
17 |
|
|
(40 |
) |
Net income |
30 |
|
|
6 |
|
|
192 |
|
|
91 |
|
Net income attributable
to non-controlling interests |
5 |
|
|
4 |
|
|
16 |
|
|
16 |
|
Net income attributable
to Visteon Corporation |
$ |
25 |
|
|
$ |
2 |
|
|
$ |
176 |
|
|
$ |
75 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share data: |
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.52 |
|
|
$ |
0.82 |
|
|
$ |
5.03 |
|
|
$ |
3.28 |
|
Discontinued operations |
0.29 |
|
|
(0.76 |
) |
|
0.54 |
|
|
(1.14 |
) |
Basic earnings per
share attributable to Visteon Corporation |
$ |
0.81 |
|
|
$ |
0.06 |
|
|
$ |
5.57 |
|
|
$ |
2.14 |
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share |
|
|
|
|
|
|
|
Continuing operations |
$ |
0.51 |
|
|
$ |
0.81 |
|
|
$ |
4.94 |
|
|
$ |
3.25 |
|
Discontinued operations |
0.28 |
|
|
(0.75 |
) |
|
0.53 |
|
|
(1.13 |
) |
Diluted earnings per
share attributable to Visteon Corporation |
$ |
0.79 |
|
|
$ |
0.06 |
|
|
$ |
5.47 |
|
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
Average shares
outstanding (in millions) |
|
|
|
|
|
|
|
Basic |
31.0 |
|
|
33.1 |
|
|
31.6 |
|
|
35.0 |
|
Diluted |
31.7 |
|
|
33.5 |
|
|
32.2 |
|
|
35.4 |
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss): |
|
|
|
|
|
|
|
Comprehensive income
(loss) |
$ |
51 |
|
|
$ |
(65 |
) |
|
$ |
256 |
|
|
$ |
41 |
|
Comprehensive income
(loss) attributable to Visteon Corporation |
$ |
45 |
|
|
$ |
(64 |
) |
|
$ |
235 |
|
|
$ |
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited, Dollars in Millions) |
|
|
|
|
|
December 31 |
|
December 31 |
|
2017 |
|
2016 |
ASSETS |
|
|
|
Cash and
equivalents |
$ |
706 |
|
|
$ |
878 |
|
Restricted cash |
3 |
|
|
4 |
|
Accounts receivable,
net |
530 |
|
|
505 |
|
Inventories, net |
189 |
|
|
151 |
|
Other current
assets |
175 |
|
|
170 |
|
Total current
assets |
1,603 |
|
|
1,708 |
|
|
|
|
|
Property and equipment,
net |
377 |
|
|
345 |
|
Intangible assets,
net |
132 |
|
|
129 |
|
Investments in
non-consolidated affiliates |
41 |
|
|
45 |
|
Other non-current
assets |
151 |
|
|
146 |
|
Total assets |
$ |
2,304 |
|
|
$ |
2,373 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Short-term debt,
including current portion of long-term debt |
$ |
46 |
|
|
$ |
36 |
|
Accounts payable |
470 |
|
|
463 |
|
Accrued employee
liabilities |
105 |
|
|
103 |
|
Other current
liabilities |
180 |
|
|
309 |
|
Total current
liabilities |
801 |
|
|
911 |
|
|
|
|
|
Long-term debt |
347 |
|
|
346 |
|
Employee benefits |
277 |
|
|
303 |
|
Deferred tax
liabilities |
23 |
|
|
20 |
|
Other non-current
liabilities |
95 |
|
|
69 |
|
|
|
|
|
Stockholders’
equity |
|
|
|
Preferred
stock |
— |
|
|
— |
|
Common
stock |
1 |
|
|
1 |
|
Additional paid-in capital |
1,339 |
|
|
1,327 |
|
Retained
earnings |
1,445 |
|
|
1,269 |
|
Accumulated other comprehensive loss |
(174 |
) |
|
(233 |
) |
Treasury
stock |
(1,974 |
) |
|
(1,778 |
) |
Total Visteon
Corporation stockholders’ equity |
637 |
|
|
586 |
|
Non-controlling
interests |
124 |
|
|
138 |
|
Total equity |
761 |
|
|
724 |
|
Total liabilities and
equity |
$ |
2,304 |
|
|
$ |
2,373 |
|
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS
1 |
(Unaudited, Dollars in Millions) |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31 |
|
December 31 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
OPERATING |
|
|
|
|
|
|
|
Net income |
$ |
30 |
|
|
$ |
6 |
|
|
$ |
192 |
|
|
$ |
91 |
|
Adjustments to
reconcile net income to net cash provided from operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
25 |
|
|
22 |
|
|
87 |
|
|
84 |
|
Losses on
divestitures and impairments |
33 |
|
|
18 |
|
|
33 |
|
|
22 |
|
Non-cash
stock-based compensation |
3 |
|
|
2 |
|
|
12 |
|
|
8 |
|
Gain on
non-consolidated affiliate transactions |
— |
|
|
1 |
|
|
(4 |
) |
|
— |
|
Equity in
net (income) loss of non-consolidated affiliates, net of dividends
remitted |
(1 |
) |
|
1 |
|
|
(7 |
) |
|
(1 |
) |
Gain on
India operations repurchase |
— |
|
|
— |
|
|
(7 |
) |
|
— |
|
Loss on
Climate Transaction |
— |
|
|
— |
|
|
— |
|
|
2 |
|
Other
non-cash items |
13 |
|
|
9 |
|
|
15 |
|
|
24 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
(19 |
) |
|
(34 |
) |
|
10 |
|
|
(19 |
) |
Inventories |
12 |
|
|
15 |
|
|
(3 |
) |
|
30 |
|
Accounts
payable |
(15 |
) |
|
35 |
|
|
(54 |
) |
|
(10 |
) |
Other
assets and other liabilities |
5 |
|
|
7 |
|
|
(57 |
) |
|
(111 |
) |
Net cash provided from
operating activities |
86 |
|
|
82 |
|
|
217 |
|
|
120 |
|
INVESTING |
|
|
|
|
|
|
|
Capital expenditures,
including intangibles |
(30 |
) |
|
(19 |
) |
|
(99 |
) |
|
(75 |
) |
Proceeds from asset
sales and business divestitures |
— |
|
|
2 |
|
|
15 |
|
|
17 |
|
Settlement of net
investment hedge |
— |
|
|
— |
|
|
5 |
|
|
— |
|
Acquisition of
businesses, net of cash acquired |
— |
|
|
— |
|
|
(2 |
) |
|
(15 |
) |
India operations
repurchase |
— |
|
|
— |
|
|
(47 |
) |
|
— |
|
Payments on divestiture
of businesses |
(48 |
) |
|
(10 |
) |
|
(48 |
) |
|
(10 |
) |
Short-term investments,
net |
— |
|
|
— |
|
|
— |
|
|
47 |
|
Loans to
non-consolidated affiliate, net of repayments |
— |
|
|
— |
|
|
— |
|
|
(8 |
) |
Net proceeds from
Climate transaction, including withholding tax refund |
— |
|
|
— |
|
|
— |
|
|
356 |
|
Other, net |
— |
|
|
(10 |
) |
|
1 |
|
|
(10 |
) |
Net cash (used by)
provided from investing activities |
(78 |
) |
|
(37 |
) |
|
(175 |
) |
|
302 |
|
FINANCING |
|
|
|
|
|
|
|
Short-term debt,
net |
2 |
|
|
11 |
|
|
10 |
|
|
— |
|
Exercised warrants and
stock options |
1 |
|
|
— |
|
|
2 |
|
|
— |
|
Distribution
payments |
— |
|
|
— |
|
|
(1 |
) |
|
(1,736 |
) |
Stock based
compensation tax withholding payments |
— |
|
|
— |
|
|
(1 |
) |
|
(11 |
) |
Principal payments on
debt |
— |
|
|
— |
|
|
(2 |
) |
|
(2 |
) |
Dividends paid to
non-controlling interests |
(9 |
) |
|
(13 |
) |
|
(38 |
) |
|
(13 |
) |
Repurchase of common
stock |
(30 |
) |
|
— |
|
|
(200 |
) |
|
(500 |
) |
Other |
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
Net cash used by
financing activities |
(36 |
) |
|
(2 |
) |
|
(233 |
) |
|
(2,262 |
) |
Effect of exchange rate
changes on cash and equivalents |
2 |
|
|
(17 |
) |
|
19 |
|
|
(11 |
) |
Net (decrease) increase
in cash and equivalents |
(26 |
) |
|
26 |
|
|
(172 |
) |
|
(1,851 |
) |
Cash and equivalents at
beginning of period |
732 |
|
|
852 |
|
|
878 |
|
|
2,729 |
|
Cash and equivalents at
end of period |
$ |
706 |
|
|
$ |
878 |
|
|
$ |
706 |
|
|
$ |
878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The Company has combined cash flows from discontinued
operations with cash flows from continuing operations within the
operating, investing and financing categories.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(Unaudited, Dollars in Millions)
Adjusted EBITDA: Adjusted
EBITDA is presented as a supplemental measure of the Company's
performance that management believes is useful to investors because
the excluded items may vary significantly in timing or amounts
and/or may obscure trends useful in evaluating and comparing the
Company's operating activities across reporting periods. The
Company defines Adjusted EBITDA as net income attributable to the
Company adjusted to eliminate the impact of depreciation and
amortization, restructuring expense, net interest expense, loss on
divestiture, equity in net (income) loss of non-consolidated
affiliates, (gain) loss on non-consolidated affiliate transactions,
other net expense, provision for income taxes, discontinued
operations, net income attributable to non-controlling interests,
non-cash stock-based compensation expense, and other gains and
losses not reflective of the Company's ongoing operations. 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 |
|
Estimated |
|
December 31 |
|
December 31 |
|
Full Year |
Total
Visteon |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2018 |
Electronics |
$ |
102 |
|
|
$ |
98 |
|
|
$ |
370 |
|
|
$ |
346 |
|
|
|
Other |
— |
|
|
(2 |
) |
|
— |
|
|
(9 |
) |
|
|
Adjusted EBITDA |
102 |
|
|
96 |
|
|
370 |
|
|
337 |
|
|
$370-$380 |
Depreciation and amortization |
25 |
|
|
22 |
|
|
87 |
|
|
84 |
|
|
90 |
Restructuring expense, net |
4 |
|
|
27 |
|
|
14 |
|
|
49 |
|
|
10 |
Interest
expense, net |
4 |
|
|
2 |
|
|
16 |
|
|
12 |
|
|
15 |
Equity in
net (income) loss of non-consolidated affiliates |
(1 |
) |
|
1 |
|
|
(7 |
) |
|
(2 |
) |
|
(7) |
Loss on
divestiture |
33 |
|
|
— |
|
|
33 |
|
|
— |
|
|
— |
Loss
(gain) on non-consolidated affiliate transactions |
— |
|
|
1 |
|
|
(4 |
) |
|
— |
|
|
— |
Other
expense, net |
1 |
|
|
7 |
|
|
2 |
|
|
24 |
|
|
— |
Provision
for income taxes |
14 |
|
|
3 |
|
|
48 |
|
|
30 |
|
|
55 |
Net
(income) loss from discontinued operations, net of tax |
(9 |
) |
|
25 |
|
|
(17 |
) |
|
40 |
|
|
— |
Net
income attributable to non-controlling interests |
5 |
|
|
4 |
|
|
16 |
|
|
16 |
|
|
15 |
Non-cash,
stock-based compensation expense |
3 |
|
|
2 |
|
|
12 |
|
|
8 |
|
|
20 |
Other |
(2 |
) |
|
— |
|
|
(6 |
) |
|
1 |
|
|
— |
Net income attributable
to Visteon |
$ |
25 |
|
|
$ |
2 |
|
|
$ |
176 |
|
|
$ |
75 |
|
|
$172-$182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31 |
|
December 31 |
Electronics |
2017 |
|
2016 |
|
2017 |
|
2016 |
Adjusted EBITDA |
$ |
102 |
|
|
$ |
98 |
|
|
$ |
370 |
|
|
$ |
346 |
|
Depreciation and amortization |
25 |
|
|
22 |
|
|
87 |
|
|
84 |
|
Restructuring expense, net |
4 |
|
|
26 |
|
|
14 |
|
|
37 |
|
Interest
expense, net |
4 |
|
|
2 |
|
|
16 |
|
|
12 |
|
Equity in
net (income) loss of non-consolidated affiliates |
(1 |
) |
|
1 |
|
|
(7 |
) |
|
(2 |
) |
Loss
(gain) on non-consolidated affiliate transactions |
— |
|
|
1 |
|
|
(4 |
) |
|
— |
|
Loss on
divestiture |
33 |
|
|
— |
|
|
33 |
|
|
— |
|
Other
expense, net |
1 |
|
|
6 |
|
|
2 |
|
|
10 |
|
Provision
for income taxes |
14 |
|
|
14 |
|
|
48 |
|
|
41 |
|
Net
income attributable to non-controlling interests |
5 |
|
|
4 |
|
|
16 |
|
|
16 |
|
Non-cash,
stock-based compensation expense |
3 |
|
|
2 |
|
|
12 |
|
|
9 |
|
Other |
(2 |
) |
|
— |
|
|
(6 |
) |
|
— |
|
Net income |
$ |
16 |
|
|
$ |
20 |
|
|
$ |
159 |
|
|
$ |
139 |
|
(Income) loss from
discontinued operations, net of tax |
(9 |
) |
|
25 |
|
|
(17 |
) |
|
40 |
|
All other loss
(income), net of tax |
— |
|
|
(7 |
) |
|
— |
|
|
24 |
|
Net income attributable
to Visteon |
$ |
25 |
|
|
$ |
2 |
|
|
$ |
176 |
|
|
$ |
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is not a recognized term under
U.S. GAAP and does not purport to be a substitute for net income as
an indicator of operating performance or cash flows from operating
activities as a measure of liquidity. Adjusted EBITDA has
limitations as an analytical tool and is not intended to be a
measure of cash flow available for management's discretionary use,
as it does not consider certain cash requirements such as interest
payments, tax payments and debt service requirements. In addition,
the Company uses Adjusted EBITDA (i) as a factor in incentive
compensation decisions, (ii) to evaluate the effectiveness of the
Company's business strategies, and (iii) because the Company's
credit agreements use similar measures for compliance with certain
covenants.
Free Cash Flow and Adjusted Free Cash
Flow: Free cash flow and Adjusted free cash flow are
presented as supplemental measures of the Company's liquidity that
management believes are useful to investors in analyzing the
Company's ability to service and repay its debt. The Company
defines Free cash flow as cash flow provided from operating
activities less capital expenditures. The Company defines Adjusted
free cash flow as cash flow provided from operating activities less
capital expenditures, as further adjusted for restructuring and
transformation-related payments. Free cash flow and Adjusted free
cash flow include amounts associated with discontinued operations.
Because not all companies use identical calculations, this
presentation of Free cash flow and Adjusted free cash flow may not
be comparable to other similarly titled measures of other
companies.
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31 |
|
December 31 |
Total
Visteon |
2017 |
|
2016 |
|
2017 |
|
2016 |
Cash provided from
operating activities - Electronics |
$ |
82 |
|
|
$ |
86 |
|
|
$ |
213 |
|
|
$ |
198 |
|
Cash provided from
(used by) operating activities - discontinued operations and
other |
4 |
|
|
(4 |
) |
|
4 |
|
|
(78 |
) |
Cash provided from
operating activities total Visteon |
$ |
86 |
|
|
$ |
82 |
|
|
$ |
217 |
|
|
$ |
120 |
|
Capital
expenditures |
(30 |
) |
|
(19 |
) |
|
(99 |
) |
|
(75 |
) |
Free cash flow |
$ |
56 |
|
|
$ |
63 |
|
|
$ |
118 |
|
|
$ |
45 |
|
Restructuring/transformation-related payments |
2 |
|
|
19 |
|
|
30 |
|
|
113 |
|
Adjusted free cash
flow |
$ |
58 |
|
|
$ |
82 |
|
|
$ |
148 |
|
|
$ |
158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31 |
|
December 31 |
|
Estimated |
Electronics |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Full Year 2018 |
Cash provided from
operating activities |
$ |
82 |
|
|
$ |
86 |
|
|
$ |
213 |
|
|
$ |
198 |
|
|
$235 -
$255 |
Capital
expenditures |
(30 |
) |
|
(20 |
) |
|
(99 |
) |
|
(74 |
) |
|
100 -
95 |
Free cash flow |
$ |
52 |
|
|
$ |
66 |
|
|
$ |
114 |
|
|
$ |
124 |
|
|
$135 - $160 |
Restructuring/transformation-related payments |
6 |
|
|
13 |
|
|
34 |
|
|
43 |
|
|
25 -
20 |
Adjusted free cash
flow |
$ |
58 |
|
|
$ |
79 |
|
|
$ |
148 |
|
|
$ |
167 |
|
|
$160 - $180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow and Adjusted free cash flow are
not recognized terms under U.S. GAAP and do not purport to be a
substitute for cash flows from operating activities as a measure of
liquidity. Free cash flow and Adjusted free cash flow have
limitations as analytical tools as they do not reflect cash used to
service debt and do not reflect funds available for investment or
other discretionary uses. In addition, the Company uses Free cash
flow and Adjusted free cash flow (i) as factors in incentive
compensation decisions and (ii) for planning and forecasting future
periods.
Adjusted Net Income and Adjusted
Earnings Per Share: Adjusted net income and Adjusted
earnings per share are presented as supplemental measures that
management believes are useful to investors in analyzing the
Company's profitability, providing comparability between periods by
excluding certain items that may not be indicative of recurring
business operating results. The Company believes management and
investors benefit from referring to these supplemental measures in
assessing company performance and when planning, forecasting and
analyzing future periods. The Company defines Adjusted net income
as net income attributable to Visteon adjusted to eliminate the
impact of restructuring expense, loss on divestiture, gain on
non-consolidated affiliate transactions, other net expenses,
discontinued operations, other gains and losses not reflective of
the Company's ongoing operations and related tax effects. 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 EndedDecember 31 |
|
Twelve Months EndedDecember 31 |
Net income
attributable to Visteon: |
2017 |
|
2016 |
|
2017 |
|
2016 |
Electronics |
$ |
16 |
|
|
$ |
20 |
|
|
$ |
159 |
|
|
$ |
139 |
|
Other/discontinued
operations |
9 |
|
|
(18 |
) |
|
17 |
|
|
(64 |
) |
Net income attributable
to Visteon |
$ |
25 |
|
|
$ |
2 |
|
|
$ |
176 |
|
|
$ |
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31,
2017 |
|
Twelve Months EndedDecember 31,
2017 |
|
Electronics |
|
Other/DiscontinuedOperations |
|
TotalVisteon |
|
Electronics |
|
Other/DiscontinuedOperations |
|
TotalVisteon |
Diluted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
16 |
|
|
$ |
9 |
|
|
$ |
25 |
|
|
$ |
159 |
|
|
$ |
17 |
|
|
$ |
176 |
|
Average shares
outstanding, diluted (in millions) |
31.7 |
|
|
31.7 |
|
|
31.7 |
|
|
32.2 |
|
|
32.2 |
|
|
32.2 |
|
Diluted earnings per
share |
$ |
0.51 |
|
|
$ |
0.28 |
|
|
$ |
0.79 |
|
|
$ |
4.94 |
|
|
$ |
0.53 |
|
|
$ |
5.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
16 |
|
|
$ |
9 |
|
|
$ |
25 |
|
|
$ |
159 |
|
|
$ |
17 |
|
|
$ |
176 |
|
Restructuring expense,
net |
4 |
|
|
— |
|
|
4 |
|
|
14 |
|
|
— |
|
|
14 |
|
Loss on
divestiture |
33 |
|
|
— |
|
|
33 |
|
|
33 |
|
|
— |
|
|
33 |
|
Other expense, net |
1 |
|
|
— |
|
|
1 |
|
|
2 |
|
|
— |
|
|
2 |
|
Gain on
non-consolidated affiliate transactions |
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
|
— |
|
|
(4 |
) |
Other |
(2 |
) |
|
— |
|
|
(2 |
) |
|
(6 |
) |
|
— |
|
|
(6 |
) |
Income from
discontinued operations, net of tax |
— |
|
|
(9 |
) |
|
(9 |
) |
|
— |
|
|
(17 |
) |
|
(17 |
) |
Adjusted net
income* |
$ |
52 |
|
|
$ |
— |
|
|
$ |
52 |
|
|
$ |
198 |
|
|
$ |
— |
|
|
$ |
198 |
|
Average shares
outstanding, diluted (in millions) |
31.7 |
|
|
31.7 |
|
|
31.7 |
|
|
32.2 |
|
|
32.2 |
|
|
32.2 |
|
Adjusted earnings per
share |
$ |
1.64 |
|
|
$ |
— |
|
|
$ |
1.64 |
|
|
$ |
6.15 |
|
|
$ |
— |
|
|
$ |
6.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Tax impacts of adjustments less than $1M.
|
|
|
|
|
Three Months EndedDecember 31,
2016 |
|
Twelve Months EndedDecember 31,
2016 |
|
Electronics |
|
Other/DiscontinuedOperations |
|
TotalVisteon |
|
Electronics |
|
Other/DiscontinuedOperations |
|
TotalVisteon |
Diluted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
20 |
|
|
$ |
(18 |
) |
|
$ |
2 |
|
|
$ |
139 |
|
|
$ |
(64 |
) |
|
$ |
75 |
|
Average shares
outstanding, diluted (in millions) |
33.5 |
|
|
33.5 |
|
|
33.5 |
|
|
35.4 |
|
|
35.4 |
|
|
35.4 |
|
Diluted earnings per
share |
$ |
0.60 |
|
|
$ |
(0.54 |
) |
|
$ |
0.06 |
|
|
$ |
3.93 |
|
|
$ |
(1.81 |
) |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Visteon |
$ |
20 |
|
|
$ |
(18 |
) |
|
$ |
2 |
|
|
$ |
139 |
|
|
$ |
(64 |
) |
|
$ |
75 |
|
Restructuring expense,
net |
26 |
|
|
1 |
|
|
27 |
|
|
37 |
|
|
12 |
|
|
49 |
|
Loss on
non-consolidated affiliate transactions |
1 |
|
|
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
Other expense, net |
6 |
|
|
1 |
|
|
7 |
|
|
10 |
|
|
14 |
|
|
24 |
|
Other |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Tax impacts of
adjustments |
(1 |
) |
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
— |
|
|
(1 |
) |
Loss from discontinued
operations, net of tax |
— |
|
|
25 |
|
|
25 |
|
|
— |
|
|
40 |
|
|
40 |
|
Adjusted net
income |
$ |
52 |
|
|
$ |
9 |
|
|
$ |
61 |
|
|
$ |
186 |
|
|
$ |
2 |
|
|
$ |
188 |
|
Average shares
outstanding, diluted (in millions) |
33.5 |
|
|
33.5 |
|
|
33.5 |
|
|
35.4 |
|
|
35.4 |
|
|
35.4 |
|
Adjusted earnings per
share |
$ |
1.55 |
|
|
$ |
0.27 |
|
|
$ |
1.82 |
|
|
$ |
5.25 |
|
|
$ |
0.06 |
|
|
$ |
5.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income and Adjusted earnings per
share are not recognized terms under U.S. GAAP and do not purport
to be a substitute for profitability. Adjusted net income and
Adjusted earnings per share have limitations as analytical tools as
they do not consider certain restructuring and transaction-related
payments and/or expenses. In addition, the Company uses Adjusted
net income and Adjusted earnings per share for internal planning
and forecasting purposes.
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