Second Quarter
Highlights
- Improved Cash and Availability(3) to $45.5 million
- Refinanced First and Second Lien Term Loans into single term
loan facility; extends maturity, maintains interest rate level and
supports Company’s long-term strategic plan
- Net sales of $120.5 million; down $72.2 million, or 37.5%,
compared to prior year comparable period, largely attributable to
decreased sales volumes due to impact of COVID-19 pandemic
- Operating loss of $(8.0) million; unfavorable $10.7 million
compared to prior year comparable period
- Net loss from continuing operations of $(16.7) million;
unfavorable $5.6 million compared to prior year comparable
period
- Adjusted EBITDA(2) above break-even; down $12.2 million
compared to prior year comparable period
Year to Date Highlights
- Successfully amended ABL facility to stabilize liquidity and
support Company’s long-term strategic plan
- Generated $4.9 million cash from operating activities; $67.9
million improvement over prior year comparable period
- Net sales of $283.7 million; down $86.6 million, or 23.4%,
compared to prior year comparable period, largely attributable to
decreased sales volumes due to impact of COVID-19 pandemic
- Operating loss of $(14.7) million; unfavorable $4.0 million
compared to prior year comparable period
- Net loss from continuing operations of $(33.3) million;
unfavorable $7.2 million compared to prior year comparable
period
- Adjusted EBITDA(2) of $3.0 million; down $8.3 million compared
to prior year comparable period
Horizon Global Corporation (NYSE: HZN), one of the world’s
leading manufacturers of branded towing and trailering equipment,
today reported financial results for the second quarter of
2020.
“I want to thank our global team for the tremendous resilience
and leadership demonstrated during the global pandemic,” stated
Terry Gohl, Horizon Global's President and Chief Executive Officer.
“In the face of extremely difficult and unprecedented
circumstances, we came together as one team and continued to
improve the business each and every day. These efforts allowed us
to support our customers in every geography and protect the health
and safety of our colleagues and those in the communities in which
we operate.”
Gohl continued, “During a quarter impacted by the global
pandemic, we remained laser focused on our liquidity and balance
sheet. The significant year-over-year improvement in liquidity and
working capital reflects the successful efforts of our team to
generate cash flow from operations. We appreciate the confidence
and support from our lenders in connection with the recent
refinancing of our term loan debt and ABL facility. These
transactions extend our debt maturities and provide us long-term
stability to execute our strategic plan.”
2020 Second Quarter Segment
Results
Horizon Americas. Net sales decreased $34.8 million, or
32.0%, to $74.1 million. Net sales in all channels were negatively
impacted by the COVID-19 pandemic. Gross profit decreased $8.8
million, due to lower net sales, partially offset by lower scrap
costs, inventory reserves and outbound freight costs. Horizon
Americas generated an operating profit of $3.4 million,
representing a decrease of $6.1 million, with unfavorable gross
profit partially offset by lower SG&A costs. Adjusted EBITDA(2)
decreased to $5.9 million for the quarter, as compared to $12.1
million for the prior year comparable period.
Horizon Europe-Africa. Net sales decreased $37.3 million,
or 44.6%, to $46.4 million due primarily to the impact of the
COVID-19 pandemic. In response, the Company temporarily idled
certain manufacturing facilities in line with customer demand and
in accordance with applicable government mandated operations
restrictions, leading to a $33.5 million decrease in net sales in
the automotive OEM and OES channels. Net sales on a constant
currency(1) basis decreased $36.5 million, or 43.6%. Gross profit
decreased $9.5 million, primarily driven by lower net sales
attributable to the impact of the COVID-19 pandemic. Operating loss
for the quarter was $(6.0) million, which represented a $7.6
million decrease primarily relating to unfavorable gross profit,
partially offset by lower SG&A costs. Adjusted EBITDA(2) was
$(2.2) million for the quarter, a decrease of $6.6 million from the
prior year comparable period.
Balance Sheet and Liquidity. Gross debt decreased $172.8
million to $275.4 million from the end of the prior year comparable
period. Total liquidity, which includes borrowing availability
under the ABL and cash on-hand, was $45.5 million, up $9.8 million
compared to the end of the prior year comparable period, after
removing any prior-year impacts related to the APAC discontinued
operations reporting.
Summary
Gohl commented, “Our sales levels through the second quarter and
into the third quarter reflect a positive upswing in demand for our
products. We believe we are well positioned to meet this demand and
emerge from the pandemic as the clear market leader. We realize
that the uncertainties associated with the pandemic are not behind
us and we cannot overemphasize the importance of maintaining
operational and financial flexibility to respond to shifts in
customer ordering patterns. To this end, we continue to execute on
our operational improvement initiatives and streamline our cost
structure, while focusing on throughput and capacity to service our
customers. We expect all these efforts to create near- and
long-term value for our employees, customers and shareholders.”
Conference Call Details
Horizon Global will host a conference call regarding second
quarter 2020 earnings on Friday, August 7, 2020 at 8:30 a.m.
Eastern Time. Participants in the call are asked to register five
to ten minutes prior to the scheduled start time by dialing (866)
652-5200 and from outside the U.S. at (412) 317-6060. Please use
the conference identification number 10146653.
The second quarter 2020 results and supplemental materials,
including a presentation in PDF format, will be distributed before
the market opens on August 7, 2020 and will be available on the
Company’s website at www.horizonglobal.com prior to the start of the
call.
The conference call will be webcast simultaneously and in its
entirety through the Horizon Global website. Shareholders, media
representatives and others may participate in the webcast by
registering through the investor relations section on the Company’s
website.
A replay of the call will be available on Horizon Global’s
website or by phone by dialing (877) 344-7529 and from outside the
U.S. at (412) 317-0088. Please use the conference identification
number 10146653. The telephone replay will be available
approximately two hours after the end of the call and continue
through August 21, 2020.
About Horizon Global
Headquartered in Plymouth, MI, Horizon Global is the #1
designer, manufacturer and distributor of a wide variety of
high-quality, custom-engineered towing, trailering, cargo
management and other related accessory products in North America
and Europe. The Company serves OEMs, retailers, dealer networks and
the end consumer as the category leader in the automotive, leisure
and agricultural market segments. Horizon provides its customers
with outstanding products and services that reflect the Company's
commitment to market leadership, innovation and operational
excellence. The Company’s mission is to utilize forward-thinking
technology to develop and deliver best in-class products for our
customers, engage with our employees and realize value creation for
our shareholders.
Horizon Global is home to some of the world’s most recognized
brands in the towing and trailering industry, including: Draw-Tite,
Reese, Westfalia, BULLDOG, Fulton and Tekonsha. Horizon Global has
approximately 3,600 employees.
For more information, please visit www.horizonglobal.com.
Forward-Looking
Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements contained herein speak only as of the
date they are made and give our current expectations or forecasts
of future events. These forward-looking statements can be
identified by the use of forward-looking words, such as “may,”
“could,” “should,” “estimate,” “project,” “forecast,” “intend,”
“expect,” “anticipate,” “believe,” “target,” “plan” or other
comparable words, or by discussions of strategy that may involve
risks and uncertainties. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties which
could materially affect our business, financial condition or future
results including, but not limited to, risks and uncertainties with
respect to: the impact of the novel coronavirus (COVID-19) pandemic
on the Company’s business, results of operations, financial
condition and liquidity; the Company’s ability to regain compliance
with the New York Stock Exchange’s continued listing standards; the
Company’s leverage; liabilities and restrictions imposed by the
Company’s debt instruments; market demand; competitive factors;
supply constraints; material and energy costs; technology factors;
litigation; government and regulatory actions including the impact
of any tariffs, quotas, or surcharges; the Company’s accounting
policies; future trends; general economic and currency conditions;
various conditions specific to the Company’s business and industry;
the success of the Company’s action plan, including the actual
amount of savings and timing thereof; the success of the Company’s
business improvement initiatives in Europe-Africa, including the
amount of savings and timing thereof; the Company’s exposure to
product liability claims from customers and end users, and the
costs associated therewith; the Company’s ability to meet its
covenants in the agreements governing its debt; factors affecting
the Company's business that are outside of its control, including
natural disasters, pandemics, including the current COVID-19
pandemic, accidents and governmental actions; and other risks that
are discussed in the Company’s most recent Annual Report on Form
10-K, Quarterly Reports on Form 10-Q or Current Reports on Form
8-K. The risks described herein are not the only risks facing our
Company. Additional risks and uncertainties not currently known to
us or that we currently deemed to be immaterial also may materially
adversely affect our business, financial position and results of
operations or cash flows. We caution readers not to place undue
reliance on such statements, which speak only as of the date
hereof. We do not undertake any obligation to review or confirm
analysts’ expectations or estimates or to release publicly any
revisions to any forward-looking statement to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
(1)
We evaluate results in our operations on
both an as reported basis and a constant currency basis. The
constant currency presentation, which is a non-GAAP measure,
excludes the impact of fluctuations in foreign currency exchange
rates. We believe providing constant currency information provides
valuable supplemental information regarding our results, consistent
with how we evaluate our performance. Constant currency revenue
results are calculated by translating current period revenue in
local currency using the prior period’s currency conversion rate.
This non-GAAP measure has limitations as an analytical tool and
should not be considered in isolation or as a substitute for an
analysis of our results as reported under GAAP. Our use of this
term may vary from the use of similarly-titled measures by other
issuers due to the potential inconsistencies in the method of
calculation and differences due to items subject to interpretation.
See Appendix II for reconciliation.
(2)
Please refer to “Company and Business
Segment Financial Information” which details certain costs,
expense, other charges, that are included in the determination of
net income attributable to Horizon Global under GAAP, but that
management would not consider important in evaluating the quality
of the Company’s operating results. The Company’s management
utilizes Adjusted EBITDA as the key measure of company and segment
performance and for planning and forecasting purposes, as
management believes this measure is most reflective of the
operational profitability or loss of the Company and its operating
segments and provides management and investors with information to
evaluate the operating performance of its business and is
representative of its performance used to measure certain of its
financial covenants. Adjusted EBITDA should not be considered a
substitute for results prepared in accordance with U.S. GAAP and
should not be considered an alternative to net income attributable
to Horizon Global, which is the most directly comparable financial
measure to Adjusted EBITDA that is prepared in accordance with U.S.
GAAP.
(3)
"Cash and Availability" as of June 30,
2019 excludes the Asia-Pacific operating segment, which was sold in
the third quarter of 2019. "Availability" refers to amounts of cash
accessible but undrawn from credit facilities.
Horizon Global
Corporation
Condensed Consolidated Balance
Sheets
(dollars in thousands)
June 30, 2020
December 31,
2019
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
34,230
$
11,770
Restricted cash
5,770
—
Receivables, net
86,500
71,680
Inventories
116,220
136,650
Prepaid expenses and other current
assets
8,870
8,570
Total current assets
251,590
228,670
Property and equipment, net
73,260
75,830
Operating lease right-of-use assets
44,130
45,770
Goodwill
3,200
4,350
Other intangibles, net
56,450
60,120
Deferred income taxes
490
430
Other assets
7,680
5,870
Total assets
$
436,800
$
421,040
Liabilities and Shareholders'
Equity
Current liabilities:
Short-term borrowings and current
maturities, long-term debt
$
10,060
$
4,310
Accounts payable
85,330
78,450
Short-term operating lease liabilities
10,270
9,880
Accrued liabilities
50,890
48,850
Total current liabilities
156,550
141,490
Gross long-term debt
265,290
236,550
Unamortized debt issuance costs and
discount
(25,330)
(31,500)
Long-term debt
239,960
205,050
Deferred income taxes
4,040
4,040
Long-term operating lease liabilities
46,610
48,070
Other long-term liabilities
15,780
13,790
Total liabilities
462,940
412,440
Total Horizon Global shareholders'
(deficit) equity
(21,730)
12,340
Noncontrolling interest
(4,410)
(3,740)
Total shareholders' (deficit) equity
(26,140)
8,600
Total liabilities and shareholders'
equity
$
436,800
$
421,040
Horizon Global
Corporation
Condensed Consolidated
Statements of Operations
(Unaudited - dollars in
thousands, except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Net sales
$
120,490
$
192,650
$
283,740
$
370,320
Cost of sales
(102,440)
(156,340)
(239,440)
(310,450)
Gross profit
18,050
36,310
44,300
59,870
Selling, general and administrative
expenses
(26,000)
(33,670)
(58,860)
(72,040)
Net (loss) gain on dispositions of
property and equipment
(20)
10
(90)
1,450
Operating (loss) profit
(7,970)
2,650
(14,650)
(10,720)
Other (expense) income, net
(450)
500
(2,120)
(4,970)
Interest expense
(8,220)
(15,320)
(16,410)
(26,150)
Loss from continuing operations before
income tax
(16,640)
(12,170)
(33,180)
(41,840)
Income tax (expense) benefit
(80)
1,040
(70)
1,310
Net loss from continuing operations
(16,720)
(11,130)
(33,250)
(40,530)
Income (loss) from discontinued
operations, net of tax
—
2,990
—
6,770
Net loss
(16,720)
(8,140)
(33,750)
(33,760)
Less: Net loss attributable to
noncontrolling interest
(380)
(60)
(670)
(580)
Net loss attributable to Horizon
Global
$
(16,340)
$
(8,080)
$
(33,080)
$
(33,180)
Net (loss) income per share
attributable to Horizon Global:
Basic:
Continuing operations
$
(0.64)
$
(0.44)
$
(1.28)
$
(1.58)
Discontinued operations
—
0.12
(0.02)
0.27
Total
$
(0.64)
$
(0.32)
$
(1.30)
$
(1.31)
Diluted:
Continuing operations
$
(0.64)
$
(0.44)
$
(1.28)
$
(1.58)
Discontinued operations
—
0.12
(0.02)
0.27
Total
$
(0.64)
$
(0.32)
$
(1.30)
$
(1.31)
Weighted average common shares
outstanding:
Basic
25,618,793
25,282,791
25,509,794
25,235,704
Diluted
25,618,793
25,282,791
25,509,794
25,235,704
Horizon Global
Corporation
Condensed Consolidated
Statements of Cash Flows
(unaudited - dollars in
thousands)
Six Months Ended June
30,
2020
2019
Cash Flows from Operating
Activities:
Net loss
$
(33,750)
$
(33,760)
Less: (Loss) income from discontinued
operations
(500)
6,770
Net loss from continuing operations
(33,250)
(40,530)
Adjustments to reconcile net loss from
continuing operations to net cash provided by (used for) operating
activities:
Net loss (gain) on dispositions of
property and equipment
90
(1,450)
Depreciation
7,100
7,390
Amortization of intangible assets
3,430
3,130
Amortization of original issuance discount
and debt issuance costs
8,100
9,900
Deferred income taxes
10
260
Non-cash compensation expense
1,320
940
Paid-in-kind interest
3,660
4,370
Increase in receivables
(16,780)
(28,510)
Decrease (increase) in inventories
19,270
(7,820)
Increase in prepaid expenses and other
assets
(2,890)
(1,040)
Increase in accounts payable and accrued
liabilities
13,460
4,270
Other, net
1,380
(13,920)
Net cash provided by (used for) operating
activities for continuing operations
4,900
(63,010)
Cash Flows from Investing
Activities:
Capital expenditures
(5,450)
(5,680)
Net proceeds from sale of business
—
4,970
Net proceeds from disposition of property
and equipment
70
1,550
Net cash (used for) provided by investing
activities for continuing operations
(5,380)
840
Cash Flows from Financing
Activities:
Net cash provided by financing activities
for continuing operations
29,320
37,660
Discontinued Operations:
Net cash (used for) provided by
discontinued operating activities
(500)
14,250
Net cash used for discontinued investing
activities
—
(920)
Net cash provided by discontinued
financing activities
—
—
Net cash (used for) provided by
discontinued operations
(500)
13,330
Effect of exchange rate changes on
cash, cash equivalents and restricted cash
(110)
290
Cash, Cash Equivalents and Restricted
Cash:
Increase (decrease) for the period
28,230
(10,890)
At beginning of period
11,770
27,650
At end of period
$
40,000
$
16,760
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
4,370
$
11,750
Cash paid for taxes, net of refunds
$
440
$
910
Appendix I
Horizon Global Corporation Company and
Business Segment Financial Information (Unaudited - dollars in
thousands)
The Company’s management utilizes Adjusted EBITDA as the key
measure of company and segment performance and for planning and
forecasting purposes, as management believes this measure is most
reflective of the operational profitability or loss of the Company
and its operating segments and provides management and investors
with information to evaluate the operating performance of its
business and is representative of its performance used to measure
certain of its financial covenants. Adjusted EBITDA should not be
considered a substitute for results prepared in accordance with
U.S. GAAP and should not be considered an alternative to net income
attributable to Horizon Global, which is the most directly
comparable financial measure to Adjusted EBITDA that is prepared in
accordance with U.S. GAAP. Adjusted EBITDA, as determined and
measured by Horizon Global, should also not be compared to
similarly titled measures reported by other companies. The Company
also uses operating income (loss) to measure stand-alone segment
performance.
Adjusted EBITDA is defined as net income attributable to Horizon
Global before interest expense, income taxes, depreciation and
amortization, and before certain items, as applicable such as
severance, restructuring, relocation and related business
disruption costs, impairment of goodwill and other intangibles,
non-cash stock compensation, certain product liability recall and
litigation claims, acquisition and integration costs, gains
(losses) on business divestitures and other assets, board
transition support and non-cash unrealized foreign currency
remeasurement costs.
The following table summarizes Adjusted EBITDA for our operating
segments for the three months ended June 30, 2020 (“2Q20”) and 2019
(“2Q19”):
Three Months Ended June
30, 2020
Three Months Ended June
30, 2019
Variance
Horizon Americas
Horizon Europe-Africa
Corporate
Consolidated
Horizon Americas
Horizon Europe-Africa
Corporate
Consolidated
Consolidated
(dollars in thousands)
(dollars in thousands)
Net loss attributable to Horizon
Global
$
(16,340)
$
(8,080)
$
(8,260)
Net loss attributable to noncontrolling
interest
(380)
(60)
(320)
Net loss
$
(16,720)
$
(8,140)
$
(8,580)
Interest expense
8,220
15,320
(7,100)
Income tax expense (benefit)
80
(1,040)
1,120
Depreciation and amortization
5,470
5,310
160
EBITDA
$
5,350
$
(3,250)
$
(5,050)
$
(2,950)
$
11,220
$
5,220
$
(4,990)
$
11,450
$
(14,400)
Net loss attributable to noncontrolling
interest
—
380
—
380
—
60
—
60
320
Income from discontinued operations, net
of tax
—
—
—
—
—
—
(2,990)
(2,990)
2,990
Severance
—
—
—
—
(270)
20
—
(250)
250
Restructuring, relocation and related
business disruption costs
410
30
210
650
540
(10)
—
530
120
Non-cash stock compensation
—
—
900
900
—
—
600
600
300
Loss on business divestitures and other
assets
240
—
40
280
430
—
1,320
1,750
(1,470)
Board transition support
—
—
—
—
—
—
760
760
(760)
Debt issuance costs
—
—
560
560
—
—
1,300
1,300
(740)
Unrealized foreign currency remeasurement
costs
(100)
690
(370)
220
150
(680)
(190)
(720)
940
Other
—
—
—
—
(10)
(200)
—
(210)
210
Adjusted EBITDA
$
5,900
$
(2,150)
$
(3,710)
$
40
$
12,060
$
4,410
$
(4,190)
$
12,280
$
(12,240)
The following table summarizes Adjusted EBITDA for our operating
segments for the six months ended June 30, 2020 (“2Q20 YTD”) and
2019 (“2Q19 YTD”):
Six Months Ended June
30, 2020
Six Months Ended June
30, 2019
Variance
Horizon Americas
Horizon Europe-Africa
Corporate
Consolidated
Horizon Americas
Horizon Europe-Africa
Corporate
Consolidated
Consolidated
(dollars in thousands)
(dollars in thousands)
Net loss attributable to Horizon
Global
$
(33,080)
$
(33,180)
$
100
Net loss attributable to noncontrolling
interest
(670)
(580)
(90)
Net loss
$
(33,750)
$
(33,760)
$
10
Interest expense
16,410
26,150
(9,740)
Income tax expense (benefit)
70
(1,310)
1,380
Depreciation and amortization
10,530
10,520
10
EBITDA
$
10,290
$
(4,340)
$
(12,690)
$
(6,740)
$
11,250
$
580
$
(10,230)
$
1,600
$
(8,340)
Net loss attributable to noncontrolling
interest
—
670
—
670
—
580
—
580
90
Loss (income) from discontinued
operations, net of tax
—
—
500
500
—
—
(6,770)
(6,770)
7,270
Severance
530
20
(10)
540
(190)
—
—
(190)
730
Restructuring, relocation and related
business disruption costs
1,300
30
320
1,650
1,310
(1,410)
—
(100)
1,750
Non-cash stock compensation
—
—
1,320
1,320
—
—
970
970
350
Loss (gain) on business divestitures and
other assets
600
(180)
40
460
960
3,630
1,320
5,910
(5,450)
Board transition support
—
—
—
—
—
—
1,450
1,450
(1,450)
Product liability and litigation
claims
—
1,510
—
1,510
—
4,320
—
4,320
(2,810)
Debt issuance costs
—
—
1,310
1,310
—
—
3,040
3,040
(1,730)
Unrealized foreign currency remeasurement
costs
(700)
2,440
10
1,750
(80)
560
140
620
1,130
Other
—
—
—
—
200
(310)
(100)
(210)
210
Adjusted EBITDA
$
12,020
$
150
$
(9,200)
$
2,970
$
13,450
$
7,950
$
(10,180)
$
11,220
$
(8,250)
Segment Information
The following table summarizes financial information for our
operating segments for 2Q20 and 2Q19:
Three Months Ended June
30,
Change
2020
2019
$
%
(dollars in thousands)
Net Sales
Horizon Americas
$
74,120
$
108,950
$
(34,830)
(32.0
%)
Horizon Europe-Africa
46,370
83,700
(37,330)
(44.6
%)
Total
$
120,490
$
192,650
$
(72,160)
(37.5
%)
Gross Profit
Horizon Americas
$
18,140
$
26,900
$
(8,760)
(32.6
%)
Horizon Europe-Africa
(90)
9,410
(9,500)
(101.0
%)
Total
$
18,050
$
36,310
$
(18,260)
(50.3
%)
Operating Profit (Loss)
Horizon Americas
$
3,430
$
9,490
$
(6,060)
(63.9
%)
Horizon Europe-Africa
(5,970)
1,580
(7,550)
(477.8
%)
Corporate
(5,430)
(8,420)
2,990
(35.5
%)
Total
$
(7,970)
$
2,650
$
(10,620)
(400.8
%)
Adjusted EBITDA
Horizon Americas
$
5,900
$
12,060
$
(6,160)
(51.1
%)
Horizon Europe-Africa
(2,150)
4,410
(6,560)
(148.8
%)
Corporate
(3,710)
(4,190)
480
(11.5
%)
Total
$
40
$
12,280
$
(12,240)
(99.7
%)
The following table summarizes financial information for our
operating segments for 2Q20 YTD and 2Q19 YTD:
Six Months Ended June
30,
Change
2020
2019
$
%
(dollars in thousands)
Net Sales
Horizon Americas
$
166,490
$
204,450
$
(37,960)
(18.6
%)
Horizon Europe-Africa
117,250
165,870
(48,620)
(29.3
%)
Total
$
283,740
$
370,320
$
(86,580)
(23.4
%)
Gross Profit
Horizon Americas
$
37,760
$
44,810
$
(7,050)
(15.7
%)
Horizon Europe-Africa
6,540
15,060
(8,520)
(56.6
%)
Total
$
44,300
$
59,870
$
(15,570)
(26.0
%)
Operating Profit (Loss)
Horizon Americas
$
6,160
$
7,990
$
(1,830)
(22.9
%)
Horizon Europe-Africa
(8,480)
(1,610)
(6,870)
426.7
%
Corporate
(12,330)
(17,100)
4,770
(27.9
%)
Total
$
(14,650)
$
(10,720)
$
(3,930)
36.7
%
Adjusted EBITDA
Horizon Americas
$
12,020
$
13,450
$
(1,430)
(10.6
%)
Horizon Europe-Africa
150
7,950
(7,800)
(98.1
%)
Corporate
(9,200)
(10,180)
980
(9.6
%)
Total
$
2,970
$
11,220
$
(8,250)
(73.5
%)
Appendix II
Horizon Global Corporation Reconciliation of
Reported Revenue Growth to Constant Currency Basis
(Unaudited)
We evaluate growth in our operations on both an as reported and
a constant currency basis. The constant currency presentation,
which is a non-GAAP measure, excludes the impact of fluctuations in
foreign currency exchange rates. We believe providing constant
currency information provides valuable supplemental information
regarding our growth, consistent with how we evaluate our
performance. Constant currency revenue results are calculated by
translating current year revenue in local currency using the prior
year's currency conversion rate. This non-GAAP measure has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for an analysis of our results as
reported under GAAP. Our use of this term may vary from the use of
similarly-titled measures by other issuers due to the potential
inconsistencies in the method of calculation and differences due to
items subject to interpretation.
Three Months Ended June
30, 2020
Six Months Ended June
30, 2020
Horizon Americas
Horizon
Europe-Africa
Consolidated
Horizon Americas
Horizon
Europe-Africa
Consolidated
Revenue growth as reported
(32.0)
%
(44.6)
%
(37.5)
%
(18.6)
%
(29.3)
%
(23.4)
%
Less: currency impact
(0.2)
%
(1.0)
%
(0.5)
%
(0.2)
%
(1.7)
%
(0.9)
%
Revenue growth at constant currency
(31.8)
%
(43.6)
%
(36.9)
%
(18.4)
%
(27.6)
%
(22.5)
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200807005092/en/
Jeff Tryka, CFA Investor Relations, Lambert & Co. (616)
295-2509 jtryka@horizonglobal.com
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