Visteon Corporation (NASDAQ: VC) today reported third quarter 2022
financial results. Highlights include:
- Sales of $1,026
million, up 63% from prior year
- 14th consecutive quarter of growth-over-market
1
- Net income of $44
million
- Adjusted EBITDA of $95
million or 9.3%
of sales
- 32 new products launched year-to-date
- $5.0 billion in new business wins through the first
three quarters
Third Quarter Financial
ResultsVisteon reported net sales of $1,026 million
representing a year-over-year increase of 63%, or 69%, excluding
the impact of currency, driven by new product launches and positive
pricing due to incremental costs recoveries primarily related to
semiconductor shortages. The company's sales performance represents
the 14th consecutive quarter of market out-performance.
Gross margin in the third quarter was $104 million, and net
income attributable to Visteon was $44 million or $1.54 per diluted
share. Adjusted EBITDA, a non-GAAP measure as defined below, was
$95 million for the third quarter or 9.3% of sales, an increase of
$53 million compared to the prior year. The increase in adjusted
EBITDA primarily reflects the favorable impact of higher sales
volumes and the ongoing benefits from the restructuring actions
initiated in 2020.
For the first nine months, cash provided by operations was $2
million and cash used for capital expenditures was $54 million.
Adjusted free cash flow, a non-GAAP financial measure as defined
below, was a use of cash of $40 million primarily driven by an
outflow in working capital related to the timing of customer
pricing recoveries and higher inventory levels due to uneven supply
of semiconductors and higher sales levels. The company ended the
third quarter with cash of $365 million and debt of $349 million
equating to a net cash position of $16 million.
New Business Wins and Product Launch
HighlightsVisteon continued its robust new program launch
cadence in the quarter with five new programs bringing the total to
32 new program launches through the first nine months of the year.
In addition, the Company is increasingly seeing the benefit of its
platform approach with additional model launches on prior
programs.
The company has won $5.0 billion in new business through the
first nine months of the year. Third quarter wins included
incremental awards for a previously won wireless battery management
system program with a North American OEM, demonstrating our
continued momentum in electrification. Visteon also won a
multi-display module with a luxury German OEM, representing our
first multi-display program with a passenger display and our first
multi-display program win with this OEM. Additionally, Visteon won
digital cluster and center display programs for an electric
vehicle-line with a North American OEM.
Outlook and Updated Guidance
“Our 14th consecutive growth-over-market quarter
speaks to the sustained demand for our digital products,” said
President and CEO Sachin Lawande. “Looking ahead, we’re well
positioned to deliver further growth and will continue to expand
and execute on our technology roadmap that reflects industry trends
towards digital, connected and electric mobility technology
solutions.”
Visteon is increasing its full-year 2022 guidance for sales and
Adjusted EBITDA as it now anticipates sales in the range of
approximately $3.6 – $3.7 billion and Adjusted EBITDA in the range
of $325 – $345 million. Additionally, Visteon is now anticipating
Adjusted Free Cash Flow in the range of $30 – $70 million.
About
VisteonVisteon is a global automotive technology
company serving the mobility industry, dedicated to creating a more
enjoyable, connected and safe driving experience. The company’s
platforms leverage proven, scalable hardware and software solutions
that enable the digital, electric, and autonomous evolution of our
global automotive customers. Visteon products align with key
industry trends and include digital instrument clusters, displays,
Android-based infotainment systems, domain controllers, advanced
driver assistance systems and electrification. The company is
headquartered in Van Buren Township, Michigan, and has
approximately 10,000 employees at more than 40 facilities in 17
countries. Visteon reported sales of approximately $2.8 billion and
booked $5.1 billion of new business in 2021. Learn more at
https://investors.visteon.com/.
Conference Call and
PresentationToday, Thursday, Oct. 27, 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: 1-888-440-4360 Outside U.S./Canada:
1-646-960-0832Conference ID: 4719410
(Call approximately 15 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 replay of the conference call will be available through the
company’s website or by dialing 1-800-770-2030 (toll-free from the
U.S. and Canada) or 1-647-362-9199 (international). The conference
ID for the phone replay is 4719410. The phone replay will be
available for two weeks following the conference call.
__Use of Non-GAAP Financial Information
Because not all companies use identical calculations, adjusted
EBITDA, adjusted net income, adjusted EPS, free cash flow and
adjusted free cash flow used throughout this press release may not
be comparable to other similarly titled measures of other
companies.
In order to provide the forward-looking non-GAAP financial
measures for full-year 2022, the company provides reconciliations
to the most directly comparable GAAP financial measures on the
subsequent slides. The provision of these comparable GAAP financial
measures is not intended to indicate that the company 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. The words "will," "may," "designed to," "outlook,"
"believes," "should," "anticipates," "plans," "expects," "intends,"
"estimates," "forecasts" and similar expressions identify certain
of these forward-looking statements. 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:
- continued and future impacts of the
coronavirus (COVID-19) pandemic on our financial condition and
business operations including global supply chain disruptions,
market downturns, reduced consumer demand and new government
actions or restrictions;
- continued and future impacts
related to the conflict between Russia and the Ukraine including
supply chain disruptions, reduction in customer demand, and the
imposition of sanctions on Russia;
- significant or prolonged shortage
of critical components from our suppliers, including but not
limited to semiconductors, and particularly those who are our sole
or primary sources;
- 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, including work
stoppages at our customers, 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;
- our ability to execute on our
transformational plans and cost-reduction initiatives in the
amounts and on the timing contemplated;
- 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 access funds
generated by foreign subsidiaries and joint ventures on a timely
and cost-effective basis;
- general economic conditions,
including changes in interest 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;
- disruptions in information
technology systems including, but not limited to, system failure,
cyber-attack, malicious computer software (malware), unauthorized
physical or electronic access, or other natural or man-made
incidents or disasters;
- 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;
- changes in laws, regulations,
policies or other activities of governments, agencies and similar
organizations, domestic and foreign, that may tax or otherwise
increase the cost of, or otherwise affect, the manufacture,
licensing, distribution, sale, ownership or use of our products or
assets; and
- those factors identified in our
filings with the SEC (including our Annual Report on Form 10-K for
the fiscal year ended December 31, 2021, as updated by our
subsequent filings with the Securities and Exchange
Commission).
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 Quarterly Report on Form 10-Q for the fiscal quarter
ended September 30, 2022. 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 production levels, customer price
reductions and currency exchange rates.
Follow Visteon:
https://www.linkedin.com/company/visteon https://twitter.com/visteonhttps://www.facebook.com/VisteonCorporationhttps://www.youtube.com/user/Visteonhttps://www.instagram.com/visteon/https://mp.weixin.qq.com/?lang=en_UShttps://m.weibo.cn/u/6605315328http://i.youku.com/u/UNDgyMjA1NjUxNg==?spm=a2h0k.8191407.0.0
Visteon Contacts: |
|
|
Media: |
Investors: |
Dianna Ofiara |
Kris Doyle |
734-258-4355 |
734-710-7893 |
dofiara@visteon.com |
kdoyle@visteon.com |
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)(In millions except per share
amounts) (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,026 |
|
|
$ |
631 |
|
|
$ |
2,692 |
|
|
$ |
1,987 |
|
Cost of sales |
|
(922 |
) |
|
|
(584 |
) |
|
|
(2,438 |
) |
|
|
(1,832 |
) |
Gross margin |
|
104 |
|
|
|
47 |
|
|
|
254 |
|
|
|
155 |
|
Selling, general and
administrative expenses |
|
(47 |
) |
|
|
(42 |
) |
|
|
(134 |
) |
|
|
(131 |
) |
Restructuring and
impairment |
|
(1 |
) |
|
|
2 |
|
|
|
(12 |
) |
|
|
2 |
|
Interest expense, net |
|
(2 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(6 |
) |
Equity in net (loss) income of
non-consolidated affiliates |
|
(1 |
) |
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
Other income, net |
|
5 |
|
|
|
4 |
|
|
|
15 |
|
|
|
13 |
|
Income (loss) before income
taxes |
|
58 |
|
|
|
11 |
|
|
|
119 |
|
|
|
35 |
|
Provision for income
taxes |
|
(9 |
) |
|
|
(4 |
) |
|
|
(24 |
) |
|
|
(20 |
) |
Net income (loss) |
|
49 |
|
|
|
7 |
|
|
|
95 |
|
|
|
15 |
|
Less: Net (income) loss
attributable to non-controlling interests |
|
(5 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Net income (loss) attributable
to Visteon Corporation |
$ |
44 |
|
|
$ |
5 |
|
|
$ |
90 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
$ |
15 |
|
|
$ |
1 |
|
|
$ |
21 |
|
|
$ |
10 |
|
Less: Comprehensive (income)
loss attributable to non-controlling interests |
|
— |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
(6 |
) |
Comprehensive income (loss)
attributable to Visteon Corporation |
$ |
15 |
|
|
$ |
— |
|
|
$ |
25 |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share attributable to Visteon Corporation |
$ |
1.57 |
|
|
$ |
0.18 |
|
|
$ |
3.20 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share attributable to Visteon Corporation |
$ |
1.54 |
|
|
$ |
0.18 |
|
|
$ |
3.16 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
Average shares outstanding (in
millions) |
|
|
|
|
|
|
|
Basic |
|
28.1 |
|
|
|
28.0 |
|
|
|
28.1 |
|
|
|
27.9 |
|
Diluted |
|
28.5 |
|
|
|
28.4 |
|
|
|
28.5 |
|
|
|
28.3 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In millions)
|
(Unaudited) |
|
|
|
September 30, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Cash and equivalents |
$ |
362 |
|
|
$ |
452 |
|
Restricted cash |
|
3 |
|
|
|
3 |
|
Accounts receivable, net |
|
733 |
|
|
|
549 |
|
Inventories, net |
|
341 |
|
|
|
262 |
|
Other current assets |
|
155 |
|
|
|
158 |
|
Total current assets |
|
1,594 |
|
|
|
1,424 |
|
|
|
|
|
Property and equipment,
net |
|
336 |
|
|
|
388 |
|
Intangible assets, net |
|
101 |
|
|
|
118 |
|
Right-of-use assets |
|
120 |
|
|
|
139 |
|
Investments in
non-consolidated affiliates |
|
51 |
|
|
|
54 |
|
Other non-current assets |
|
124 |
|
|
|
111 |
|
Total assets |
$ |
2,326 |
|
|
$ |
2,234 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Short-term debt |
$ |
9 |
|
|
$ |
4 |
|
Accounts payable |
|
645 |
|
|
|
522 |
|
Accrued employee
liabilities |
|
79 |
|
|
|
80 |
|
Current lease liability |
|
27 |
|
|
|
28 |
|
Other current liabilities |
|
220 |
|
|
|
218 |
|
Total current liabilities |
|
980 |
|
|
|
852 |
|
|
|
|
|
Long-term debt, net |
|
340 |
|
|
|
349 |
|
Employee benefits |
|
171 |
|
|
|
198 |
|
Non-current lease
liability |
|
97 |
|
|
|
117 |
|
Deferred tax liabilities |
|
26 |
|
|
|
27 |
|
Other non-current
liabilities |
|
63 |
|
|
|
75 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,351 |
|
|
|
1,349 |
|
Retained earnings |
|
1,754 |
|
|
|
1,664 |
|
Accumulated other comprehensive loss |
|
(294 |
) |
|
|
(229 |
) |
Treasury stock |
|
(2,257 |
) |
|
|
(2,269 |
) |
Total Visteon Corporation
stockholders’ equity |
|
555 |
|
|
|
516 |
|
Non-controlling interests |
|
94 |
|
|
|
100 |
|
Total equity |
|
649 |
|
|
|
616 |
|
Total liabilities and
equity |
$ |
2,326 |
|
|
$ |
2,234 |
|
VISTEON CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS (In millions) (Unaudited)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
OPERATING |
|
|
|
|
|
|
|
Net income (loss) |
$ |
49 |
|
|
$ |
7 |
|
|
$ |
95 |
|
|
$ |
15 |
|
Adjustments to reconcile net
income (loss) to net cash provided from (used by) operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
27 |
|
|
|
27 |
|
|
|
79 |
|
|
|
82 |
|
Non-cash stock-based compensation |
|
6 |
|
|
|
4 |
|
|
|
19 |
|
|
|
13 |
|
Equity in net loss (income) of non-consolidated affiliates, net of
dividends remitted |
|
4 |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
Impairments |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Other non-cash items |
|
(2 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
4 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(170 |
) |
|
|
(1 |
) |
|
|
(244 |
) |
|
|
50 |
|
Inventories |
|
(50 |
) |
|
|
(47 |
) |
|
|
(112 |
) |
|
|
(82 |
) |
Accounts payable |
|
175 |
|
|
|
(2 |
) |
|
|
173 |
|
|
|
(68 |
) |
Other assets and other liabilities |
|
35 |
|
|
|
(16 |
) |
|
|
(10 |
) |
|
|
(40 |
) |
Net cash (used by) provided from operating activities |
|
74 |
|
|
|
(13 |
) |
|
|
2 |
|
|
|
(12 |
) |
INVESTING |
|
|
|
|
|
|
|
Capital expenditures,
including intangibles |
|
(18 |
) |
|
|
(21 |
) |
|
|
(54 |
) |
|
|
(54 |
) |
Contributions to equity method
investments |
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Settlement of derivatives
contracts |
|
4 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Loan repayments from
non-consolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Other |
|
1 |
|
|
|
3 |
|
|
|
2 |
|
|
|
5 |
|
Net cash used by investing
activities |
|
(13 |
) |
|
|
(19 |
) |
|
|
(44 |
) |
|
|
(50 |
) |
FINANCING |
|
|
|
|
|
|
|
Borrowings on term debt
facility |
|
350 |
|
|
|
— |
|
|
|
350 |
|
|
|
— |
|
Payments on term debt
facility |
|
(350 |
) |
|
|
— |
|
|
|
(350 |
) |
|
|
— |
|
Dividends to non-controlling
interests |
|
— |
|
|
|
(32 |
) |
|
|
— |
|
|
|
(33 |
) |
Short-term debt, net |
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
6 |
|
Other |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
1 |
|
Net cash used by financing
activities |
|
(3 |
) |
|
|
(32 |
) |
|
|
(7 |
) |
|
|
(26 |
) |
Effect of exchange rate
changes on cash |
|
(18 |
) |
|
|
(5 |
) |
|
|
(41 |
) |
|
|
(11 |
) |
Net decrease in cash,
equivalents, and restricted cash |
|
40 |
|
|
|
(69 |
) |
|
|
(90 |
) |
|
|
(99 |
) |
Cash, equivalents, and
restricted cash at beginning of the period |
|
325 |
|
|
|
470 |
|
|
|
455 |
|
|
|
500 |
|
Cash, equivalents, and
restricted cash at end of the period |
$ |
365 |
|
|
$ |
401 |
|
|
$ |
365 |
|
|
$ |
401 |
|
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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, provision for income
taxes, non-cash stock-based compensation expense, restructuring and
impairment expense, net interest expense, net income attributable
to non-controlling interests, equity in net income of
non-consolidated affiliates, gain on non-consolidated affiliate
transactions, 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 |
|
Nine Months Ended |
|
Estimated |
|
September 30, |
|
September 30, |
|
Full Year |
Visteon: |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Net income attributable to
Visteon Corporation |
$ |
44 |
|
|
$ |
5 |
|
|
$ |
90 |
|
|
$ |
10 |
|
|
$ |
125 |
|
Depreciation and amortization |
|
27 |
|
|
|
27 |
|
|
|
79 |
|
|
|
82 |
|
|
|
105 |
|
Provision for income taxes |
|
9 |
|
|
|
4 |
|
|
|
24 |
|
|
|
20 |
|
|
|
40 |
|
Non-cash, stock-based compensation expense |
|
6 |
|
|
|
4 |
|
|
|
19 |
|
|
|
13 |
|
|
|
27 |
|
Restructuring and impairment expense |
|
1 |
|
|
|
(2 |
) |
|
|
12 |
|
|
|
(2 |
) |
|
|
15 |
|
Interest expense, net |
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
6 |
|
|
|
10 |
|
Net income attributable to non-controlling interests |
|
5 |
|
|
|
2 |
|
|
|
5 |
|
|
|
5 |
|
|
|
7 |
|
Equity in net (loss) income of non-consolidated affiliates |
|
1 |
|
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
Other |
|
— |
|
|
|
2 |
|
|
|
12 |
|
|
|
4 |
|
|
|
12 |
|
Adjusted EBITDA |
$ |
95 |
|
|
$ |
42 |
|
|
$ |
245 |
|
|
$ |
136 |
|
|
$ |
3352 |
|
|
|
|
|
|
|
|
|
|
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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, including intangibles. The
Company defines adjusted free cash flow as cash flow provided from
operating activities less capital expenditures, including
intangibles as further adjusted for restructuring related payments.
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 |
|
Nine Months Ended |
|
Estimated |
|
September 30, |
|
September 30, |
|
Full Year |
Visteon: |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Cash provided from (used by)
operating activities |
$ |
74 |
|
|
$ |
(13 |
) |
|
$ |
2 |
|
|
$ |
(12 |
) |
|
$ |
125 |
|
Capital expenditures,
including intangibles |
|
(18 |
) |
|
|
(21 |
) |
|
|
(54 |
) |
|
|
(54 |
) |
|
|
(90 |
) |
Free cash flow |
$ |
56 |
|
|
$ |
(34 |
) |
|
$ |
(52 |
) |
|
$ |
(66 |
) |
|
$ |
35 |
|
Restructuring related
payments |
|
3 |
|
|
|
4 |
|
|
|
12 |
|
|
|
29 |
|
|
|
15 |
|
Adjusted free cash flow |
$ |
59 |
|
|
$ |
(30 |
) |
|
$ |
(40 |
) |
|
$ |
(37 |
) |
|
$ |
503 |
|
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.
VISTEON CORPORATION AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL
MEASURES(In millions except per share amounts)
(Unaudited)
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 and impairment expense, loss on
divestiture, gain on non-consolidated affiliate transactions, 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 Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income
attributable to Visteon |
$ |
44 |
|
|
$ |
5 |
|
|
$ |
90 |
|
|
$ |
10 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share: |
|
|
|
|
|
|
|
Net income attributable to
Visteon |
$ |
44 |
|
|
$ |
5 |
|
|
$ |
90 |
|
|
$ |
10 |
|
Average shares outstanding,
diluted |
|
28.5 |
|
|
|
28.4 |
|
|
|
28.5 |
|
|
|
28.3 |
|
Diluted earnings per
share |
$ |
1.54 |
|
|
$ |
0.18 |
|
|
$ |
3.16 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
Adjusted net income
and adjusted earnings per share: |
|
|
|
|
|
|
|
Net income attributable to
Visteon |
$ |
44 |
|
|
$ |
5 |
|
|
$ |
90 |
|
|
$ |
10 |
|
Restructuring and impairment
expense |
|
1 |
|
|
|
(2 |
) |
|
|
12 |
|
|
|
(2 |
) |
Other, including tax effects
of adjustments |
|
— |
|
|
|
2 |
|
|
|
12 |
|
|
|
4 |
|
Adjusted net income |
$ |
45 |
|
|
$ |
5 |
|
|
$ |
114 |
|
|
$ |
12 |
|
Average shares outstanding,
diluted |
|
28.5 |
|
|
|
28.4 |
|
|
|
28.5 |
|
|
|
28.3 |
|
Adjusted earnings per
share |
$ |
1.58 |
|
|
$ |
0.18 |
|
|
$ |
4.00 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
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.
1 Visteon Y/Y sales growth (ex. FX) compared to production for
Visteon customers weighted on Visteon sales contribution2 Based on
mid-point of the range of the Company's financial guidance3 Based
on mid-point of the range of the Company's financial guidance
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