• Visteon Announces Second Quarter 2024 Results

    المصدر: Nasdaq GlobeNewswire / 25 يوليو 2024 06:55:01   America/New_York

    VAN BUREN TOWNSHIP, Mich., July 25, 2024 (GLOBE NEWSWIRE) -- Visteon Corporation (NASDAQ: VC) today reported second quarter financial results. Highlights include:

    • Sales of $1,014 million with Growth-over-Market of 9%1
    • Net income of $71 million
    • Record Adjusted EBITDA of $136 million
    • Launched 41 new products across 17 OEMs in the first half
    • Won $3.1 billion in new business in the first half
    • Net cash of $181 million at quarter end

    Visteon reported net sales of $1,014 million compared to $983 million in the second quarter of the prior year. The increase in net sales was primarily due to strong performance of digital cockpit and electrification products, partially offset by lower customer production, and lower customer recoveries resulting from improved semiconductor supply. Visteon’s sales outperformed customer vehicle production volumes by 9%.

    Gross margin in the second quarter was $147 million, and net income attributable to Visteon was $71 million or $2.54 per diluted share. Adjusted EBITDA, a non-GAAP measure defined below, was a record $136 million in the second quarter, an increase of $46 million compared to the prior year. The increase in adjusted EBITDA reflects the favorable impact of higher volumes and strong operational performance, lower engineering and SG&A costs, and the non-recurrence of a $15 million recall charge in the prior year. Adjusted EBITDA margin was 13.4% of sales, an increase of 420 basis points compared to the prior year.

    For the first six months, cash from operations was $126 million, capital expenditures were $68 million and adjusted free cash flow, a non-GAAP measure defined below, was $62 million. The company ended the second quarter with cash of $508 million and debt of $327 million. Our strong balance sheet, with a net cash position of $181 million, will allow us to balance organic investments, selective M&A, and capital returns to shareholders.

    Visteon's products launched on 41 vehicle models, diversified across 17 different OEMs, in the first half of the year. A key second quarter launch included a digital cluster for the Toyota Camry in the North American and Japanese markets. We also launched a center information display for the Mazda MX-30 crossover and a digital cluster for the Porsche Macan SUV. Our momentum in Rest of Asia continues, with launches across various Asian customers in key markets in the region.

    The company won $3.1 billion of new business in the first half of the year, including nearly $1.8 billion of display wins. Visteon continues to successfully diversify its customer base, with over $1.8 billion of wins with Rest of Asia OEMs in the first half. Second quarter wins included several significant display wins, including a large, curved OLED display for a luxury vehicle platform for a Japanese OEM and a dual display for a SUV for another Japanese OEM. Visteon also won an audio infotainment and dual display system for a SUV with an Indian OEM.

    “Visteon delivered robust sales in the second quarter, driven by strong demand for our powertrain agnostic digital cockpit products and ramp up of electrification products. Margins improved due to our continued focus on operational and commercial discipline,” said President and CEO Sachin Lawande. “We continue to navigate near-term industry challenges, while positioning the company for mid-term growth through strong new business wins and continued launch execution."

    In light of the reduction of customer vehicle production in the second half and ongoing market dynamics in China, Visteon is updating its full-year 2024 guidance and anticipates sales in the range of $3.85 – $3.95 billion, adjusted EBITDA in the range of $455 – $475 million, and maintaining adjusted free cash flow in the range of $155 – $185 million.

    About Visteon

    Visteon is advancing mobility through innovative technology solutions that enable a software-defined and electric future. With next-generation digital cockpit and electrification products, Visteon leverages the strength and agility of its global network with a local footprint to deliver a cleaner, safer and more connected vehicle experience. Headquartered in Van Buren Township, Michigan, Visteon operates in 17 countries worldwide, recorded approximately $3.95 billion in annual sales and booked $7.2 billion of new business in 2023. Learn more at investors.visteon.com/.

    Conference Call and Presentation
    Today, Thursday, July 25, 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: 1-888-330-2508
    Outside U.S./Canada: 1-240-789-2735
    Conference ID: 8897485  

    (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.

    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 2024, 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 geopolitical conflicts and related supply chain disruptions, including but not limited to the conflicts in the Middle East, Russia and East Asia and the possible imposition of sanctions;
    • 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;
    • failure of the Company’s joint venture partners to comply with contractual obligations or to exert influence or pressure in China;
    • 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 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 including ransomware), 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, 2023, 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 June 30, 2024. 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.

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    VISTEON CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
    (In millions except per share amounts)
    (Unaudited)
     
     Three Months Ended Six Months Ended
     June 30, June 30,
      2024   2023   2024   2023 
            
    Net sales$1,014  $983  $1,947  $1,950 
    Cost of sales (867)  (879)  (1,681)  (1,736)
    Gross margin 147   104   266   214 
    Selling, general and administrative expenses (49)  (52)  (101)  (104)
    Restructuring, net (1)  (1)  (3)  (2)
    Interest expense, net —   (3)  —   (6)
    Equity in net income (loss) of non-consolidated affiliates —   (2)  (4)  (7)
    Other income (expense), net 3   (10)  5   (7)
    Income (loss) before income taxes 100   36   163   88 
    Provision for income taxes (25)  (13)  (44)  (27)
    Net income (loss) 75   23   119   61 
    Less: Net (income) loss attributable to non-controlling interests (4)  (3)  (6)  (7)
    Net income (loss) attributable to Visteon Corporation$71  $20  $113  $54 
            
    Comprehensive income (loss)$55  $3  $84  $56 
    Less: Comprehensive (income) loss attributable to non-controlling interests (2)  1   (3)  (2)
    Comprehensive income (loss) attributable to Visteon Corporation$53  $4  $81  $54 
            
    Basic earnings (loss) per share attributable to Visteon Corporation$2.57  $0.71  $4.09  $1.91 
            
    Diluted earnings (loss) per share attributable to Visteon Corporation$2.54  $0.70  $4.05  $1.88 
            
    Average shares outstanding (in millions)       
    Basic 27.6   28.3   27.6   28.3 
    Diluted 27.9   28.7   27.9   28.7 


    VISTEON CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In millions)
        
     (Unaudited)  
     June 30, December 31,
      2024   2023 
    ASSETS   
    Cash and equivalents$505  $515 
    Restricted cash 3   3 
    Accounts receivable, net 695   666 
    Inventories, net 311   298 
    Other current assets 127   134 
    Total current assets 1,641   1,616 
        
    Property and equipment, net 416   418 
    Intangible assets, net 84   90 
    Right-of-use assets 111   109 
    Investments in non-consolidated affiliates 25   35 
    Deferred tax assets 371   384 
    Other non-current assets 83   75 
    Total assets$2,731  $2,727 
        
    LIABILITIES AND EQUITY   
    Short-term debt$18  $18 
    Accounts payable 529   551 
    Accrued employee liabilities 81   99 
    Current lease liability 31   30 
    Other current liabilities 228   233 
    Total current liabilities 887   931 
        
    Long-term debt, net 309   318 
    Employee benefits 149   160 
    Non-current lease liability 83   79 
    Deferred tax liabilities 34   31 
    Other non-current liabilities 71   85 
        
    Stockholders’ equity:   
    Common stock 1   1 
    Additional paid-in capital 1,360   1,356 
    Retained earnings 2,387   2,274 
    Accumulated other comprehensive loss (286)  (254)
    Treasury stock (2,349)  (2,339)
    Total Visteon Corporation stockholders’ equity 1,113   1,038 
    Non-controlling interests 85   85 
    Total equity 1,198   1,123 
    Total liabilities and equity$2,731  $2,727 


    VISTEON CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
        
     Three Months Ended Six Months Ended
     June 30, June 30,
      2024   2023   2024   2023 
    OPERATING       
    Net income (loss)$75  $23  $119  $61 
    Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities:       
    Depreciation and amortization 24   26   46   55 
    Non-cash stock-based compensation 11   9   21   17 
    Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted —   2   4   7 
    Other non-cash items 4   (2)  7   (4)
    Changes in assets and liabilities:       
    Accounts receivable (52)  6   (49)  (7)
    Inventories 28   22   (23)  17 
    Accounts payable (29)  (30)  8   (89)
    Other assets and other liabilities (4)  5   (7)  (15)
    Net cash provided from (used by) operating activities 57   61   126   42 
    INVESTING       
    Capital expenditures, including intangibles (31)  (30)  (68)  (51)
    Loan provided to non-consolidated affiliate (5)  —   (5)  — 
    Other 1   1   1   2 
    Net cash used by investing activities (35)  (29)  (72)  (49)
    FINANCING       
    Dividends to non-controlling interests —   (7)  —   (15)
    Short-term debt, net —   —   —   3 
    Repurchase of common stock —   (30)  (20)  (30)
    Stock based compensation tax withholding payments —   (15)  (7)  (15)
    Proceeds from the exercise of stock options —   4   —   4 
    Principal repayment of term debt facility (5)  (4)  (9)  (4)
    Net cash used by financing activities (5)  (52)  (36)  (57)
    Effect of exchange rate changes on cash (16)  (8)  (28)  — 
    Net decrease in cash, equivalents, and restricted cash 1   (28)  (10)  (64)
    Cash, equivalents, and restricted cash at beginning of the period 507   487   518   523 
    Cash, equivalents, and restricted cash at end of the period$508  $459  $508  $459 


    VISTEON CORPORATION AND SUBSIDIARIES
    RECONCILIATION 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 (benefit from) income taxes, non-cash stock-based compensation expense, net interest expense, net income attributable to non-controlling interests, net restructuring expense, equity in net (income)/loss 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 Six Months Ended Estimated
     June 30, June 30, Full Year
    Visteon: 2024  2023  2024  2023  2024
    Net income attributable to Visteon Corporation$71 $20 $113 $54  210
    Depreciation and amortization 24  26  46  55  100
    Provision for income taxes 25  13  44  27  80
    Non-cash, stock-based compensation expense 11  9  21  17  45
    Restructuring, net 1  1  3  2  5
    Interest expense, net —  3  —  6  —
    Net income attributable to non-controlling interests 4  3  6  7  15
    Equity in net loss (income) of non-consolidated affiliates —  2  4  7  5
    Other —  13  1  14  5
    Adjusted EBITDA$136 $90 $238 $189 $4652
              

    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 SUBSIDIARIES
    RECONCILIATION 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 Six Months Ended Estimated
     June 30, June 30, Full Year
    Visteon: 2024   2023   2024   2023   2024 
    Cash provided from (used by) operating activities$57  $61  $126  $42   305 
    Capital expenditures, including intangibles (31)  (30)  (68)  (51)  (145)
    Free cash flow$26  $31  $58  $(9) $160 
    Restructuring related payments 2   1   4   4   10 
    Adjusted free cash flow$28  $32  $62  $(5) $1703 

    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 SUBSIDIARIES
    RECONCILIATION 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 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 Six Months Ended
     June 30, June 30,
      2024  2023  2024  2023
    Net income attributable to Visteon$71  $20 $113  $54
            
    Diluted earnings per share:       
    Net income attributable to Visteon$71  $20 $113  $54
    Average shares outstanding, diluted 27.9   28.7  27.9   28.7
    Diluted earnings per share$2.54  $0.70 $4.05  $1.88
            
    Adjusted net income and adjusted earnings per share:       
    Net income attributable to Visteon$71  $20 $113  $54
    Restructuring, net 1   1  3   2
    Other —   13  1   14
    Tax impacts of adjustments (1)  —  (1)  —
    Adjusted net income$71  $34 $116  $70
    Average shares outstanding, diluted 27.9   28.7  27.9   28.7
    Adjusted earnings per share$2.54  $1.18 $4.16  $2.44
            

    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 Excludes Y/Y impact of currency fluctuations
    2 Based on mid-point of the range of the Company's financial guidance
    3 Based on mid-point of the range of the Company's financial guidance


    Visteon Contacts:

Media:                        

Media@Visteon.com

Investors:

Investor@visteon.com

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