Company Achieved Record Annual Revenues Despite
Industry HeadwindsSecured Record $1.6 Billion in Automotive Awards
in 20182019 Guidance Established
Gentherm (NASDAQ:THRM), the global market leader and developer of
innovative thermal management technologies, today announced its
financial results for the fourth quarter and full year ended
December 31, 2018.
Fourth Quarter Highlights
- Product revenues of $253.7 million decreased 1.4% from $257.2
million in the 2017 fourth quarter. Excluding the impact of
acquisitions and foreign currency translation, product revenues
declined 2.2% year over year
- Automotive revenues, excluding the impact of acquisitions and
foreign currency translation, increased 0.9% year over year
- GAAP diluted earnings per share was $0.36 as compared with a
loss per share of $0.14 for the prior-year period
- Adjusted diluted earnings per share, excluding restructuring
expenses, unrealized currency loss, and expenses and other impacts
related to acquisitions (see table herein), was $0.50.
Adjusted diluted earnings per share in the prior-year period was
$0.61
- Secured automotive new business awards totaling approximately
$350 million in the quarter
- Repurchased $84 million of the Company’s stock
Full Year Highlights
- Record product revenues of $1,038.3 million increased 5.3% from
$985.7 million in 2017. Excluding the impact of acquisitions
and foreign currency translation, product revenues declined 0.7%
year over year
- Automotive revenues, excluding the impact of acquisitions and
foreign currency translation, increased 1.0% year over year
- GAAP diluted earnings per share was $1.16 as compared with
$0.96 for the prior-year period
- Adjusted diluted earnings per share, excluding impairment loss,
restructuring expenses, unrealized currency loss, and expenses and
other impacts related to acquisitions (see table herein), was
$2.12. Adjusted diluted earnings per share in the prior-year
period was $2.31
- Secured record automotive new business awards totaling
approximately $1.6 billion, of which 40% represents Climate Control
Seat (CCS®)
- Repurchased $148 million of the Company’s stock
“I am pleased with the continued momentum we are achieving with
our focused growth strategy, evidenced by a record $1.6 billion of
new awards from automakers around the world in 2018. Excluding
assets held for sale, our product revenues grew 7.6% in 2018,
surpassing our expectations of 7%. Despite a challenging automotive
industry environment, we delivered year-over-year organic revenue
growth in automotive in the fourth quarter, outperforming our key
markets by over 600 basis points," said Phil Eyler, Gentherm's
President and Chief Executive Officer. "In addition, we made
significant progress in lowering operating expenses through the
‘Fit-for-Growth’ program. Excluding assets held for sale, we
delivered a better-than-expected EBITDA margin rate. There are
still more opportunities ahead to improve gross margin through
manufacturing efficiencies, footprint rationalization, the
expansion of our purchasing excellence program and value
engineering. We expect industry headwinds to continue in 2019;
however, the momentum in new awards and our relentless focus on
cost structure position us well to achieve our 2019 guidance and
2021 outlook."
2018 Fourth Quarter Financial Review
Product revenues for the fourth quarter of 2018 decreased $3.5
million, or 1.4%, as compared with the prior-year period. The
year-over-year decline was comprised of a $4.5 million increase in
the Automotive segment and a $8.1 million decrease in the
Industrial segment. Adjusting for the Etratech acquisition
and foreign currency translation, organic product revenues
decreased 2.2% year over year.
Revenue growth in Automotive was driven by higher sales in
climate-controlled seats (“CCS”), steering wheel heaters and
battery thermal management, partially offset by lower sales of seat
heaters and automotive cables, as well as the contribution of the
Etratech acquisition for the entire quarter. Adjusting for the
Etratech acquisition and foreign currency translation, organic
automotive revenues increased 0.9% year over year.
Automotive revenues grew despite lower than expected automotive
production in the Company’s key markets which include North
America, Europe, Japan, Korea and China. When compared with IHS
Markit's mid-October forecast for the fourth quarter of 2018,
actual light vehicle production was approximately 6 percentage
points below forecast. In addition, when compared to the fourth
quarter of 2017, actual light vehicle production declined by
approximately 6% in the Company’s key markets.
The revenue decline in Industrial resulted primarily from lower
revenues from the Cincinnati Sub-Zero (“CSZ”) industrial chambers
business and Global Power Technologies (“GPT”), which were
classified as assets held for sale in the quarter. On February 1,
2019, the Company announced the completion of the sale of the CSZ
industrial chambers business to Weiss Technik North America,
Inc. for total cash proceeds of $47.5 million.
See the “Revenues by Product Category” table enclosed herein for
additional detail.
Gross margin rate declined to 27.0% in the current-year period,
as compared with 30.0% in the prior-year period, primarily as a
result of lower than expected sales volume, late-quarter tier one
customer order adjustments, higher labor costs and lower margin on
Battery Thermal Management (“BTM”) associated with the launch phase
of the new actively cooled technology programs. These were
partially offset by Fit-for-Growth cost reduction initiatives.
Net research and development expenses of $16.5 million in the
2018 fourth quarter decreased $5.3 million, or 24.4%. R&D
expenses declined year over year, as a direct result of the
Company’s focused portfolio and Fit-for-Growth cost reduction
initiatives. Additionally, R&D expenses declined year over year
due to higher-than-normal customer reimbursements.
Selling, general and administrative expenses of $29.2 million in
the 2018 fourth quarter decreased $4.4 million, or 13.1%, versus
the prior-year period. The year-over-year decline was primarily
driven by the impact of the Fit-for-Growth cost reduction
initiatives and the non-recurrence of $3.8 million in CEO
transition expenses that occurred in the fourth quarter of 2017.
During the quarter, the Company recognized $1.9 million in
restructuring expenses which resulted from completed actions
associated with its Fit-for-Growth initiatives. Total implemented
actions to date are expected to deliver annualized savings of
approximately $37 million. The Company has identified a total of
$65 million of savings against its annualized target of $75 million
by 2021.
As described more fully in the table included below,
“Reconciliation of Net Income to Adjusted EBITDA,” the Company
recorded Adjusted EBITDA less CEO transition expenses of $34.5
million in the 2018 fourth quarter compared with $39.0 million in
the prior-year period, a decrease of $4.5 million or 11.4%.
Income tax expense in the 2018 fourth quarter was $6.4 million,
as compared with $23.8 million in the prior-year period, which
included $20.2 million associated with the required adjustments
under the U.S. Tax Cut and Jobs Act.
GAAP diluted earnings per share for the fourth quarter of 2018
was $0.36 compared with a loss per share of $0.14 for the
prior-year period. Adjusted diluted earnings per share,
excluding restructuring expenses, unrealized currency loss, and
expenses and other impacts related to acquisitions (see table
herein), was $0.50. Adjusted diluted earnings per share in
the prior-year period was $0.61.
Full Year Revenue and Earnings Per Share
Discussion
For full-year 2018, the Company reported record product revenues
of $1,038.3 million, a 5.3% increase over the prior year. Adjusting
for the Etratech acquisition and foreign currency translation, the
year-over-year decline was 0.7%. An increase in the
Automotive segment was more than offset by a decrease in the
Industrial segment.
In the Automotive segment, 2018 full-year revenues were $948.6
million, a $69.1 million, or 7.9% increase compared to the prior
year. The year-over-year growth was primarily due to increases in
steering wheel heaters, automotive cables and BTM, as well as the
acquisition of Etratech. Due to the impact of the shift from
CCS active to CCS vent that continued into the first half of 2018,
CCS product revenues declined by $13.1 million, or 3.4%.
The Company’s Industrial Segment revenues decreased $16.6
million, or 15.6%, to $89.7 million. The decline was
primarily due to lower revenues from the CSZ industrial chambers
and GPT businesses, which were classified as assets held for
sale.
GAAP diluted earnings per share was $1.16, as compared with
$0.96 for the prior-year period. Adjusted diluted earnings
per share, excluding impairment loss, restructuring expenses,
unrealized currency loss, and expenses and other impacts related to
acquisitions (see table herein), was $2.12. Adjusted diluted
earnings per share in the prior-year period was $2.31.
Guidance
The Company is providing the following guidance for 2019,
excluding divested assets and assets held for sale:
- Product revenues are expected to grow between 4% and 6% to a
range of $1.01 billion to $1.04 billion
- Operating expenses between 19% and 20% of product revenues
- Gross margin rate between 28% and 30%
- Adjusted EBITDA between 14% and 15% of product revenue
- Full-year effective tax rate between 28% and 30%
- Capital expenditures between $40 and $50 million
Based on 2018 results and 2019 guidance, the Company is
reaffirming the following outlook for 2021:
- Product revenue growth of high single-digit CAGR for the 2018
to 2021 period
- Operating expenses between 15% and 17% of product revenues
- Gross margin rate between 30% and 32%
- Adjusted EBITDA margin of high teens
- ROIC of greater than 20%
Conference Call
As previously announced, Gentherm will conduct a conference call
today at 8:00 AM Eastern Time to review these results. The dial-in
number for the call is 1-877-407-4018 (callers in the U.S.) or
+1-201-689-8471 (callers outside this U.S.). The passcode for the
live call is 13686834.
A live webcast and one-year archived replay of the call can be
accessed on the Events page of the Investor section of Gentherm's
website at www.gentherm.com.
A telephonic replay will be available at approximately 2 hours
after the call until 11:59 PM Eastern Time on March 7, 2019. The
replay can be accessed by dialing 1-844-512-2921 (callers in the
U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode
for the replay is 13686834.
Investor Relations Contact Yijing
Brentanoinvestors@gentherm.com (248) 308-1702
Media ContactMelissa
Fischermedia@gentherm.com248.289.9702
About Gentherm
Gentherm (NASDAQ:THRM) is a global developer and marketer of
innovative thermal management technologies for a broad range of
heating and cooling and temperature control applications.
Automotive products include variable temperature Climate Control
Seats, heated automotive interior systems (including heated seats,
steering wheels, armrests and other components), battery thermal
management systems, cable systems and other electronic devices.
Medical products include patient temperature management systems.
The Company is also developing a number of new technologies and
products that will help enable improvements to existing products
and to create new product applications for existing and new
markets. Gentherm has over 13,000 employees in facilities in the
United States, Germany, Canada, China, Hungary, Japan, Korea,
Macedonia, Malta, Mexico, United Kingdom, Ukraine, and
Vietnam. For more information, go to www.gentherm.com.
Except for historical information contained herein, statements
in this release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
represent Gentherm Incorporated's goals, beliefs, plans and
expectations about its prospects for the future and other future
events. The forward-looking statements included in this
release are made as of the date hereof or as of the date specified
and are based on management's current expectations and
beliefs. Such statements are subject to a number of important
assumptions, risks, uncertainties and other factors that may cause
the Company's actual performance to differ materially from that
described in or indicated by the forward-looking statements. Those
risks include, but are not limited to, risks that new products may
not be feasible, sales may not increase, additional financing
requirements may not be available, new competitors may arise or
customers may develop their own products to replace the Company’s
products, currency exchange rates may change unfavorably, pricing
pressures from customers may increase, the Company’s workforce and
operations could be disrupted by civil or political unrest in the
countries in which the Company operates, free trade agreements may
be altered in a manner adverse to the Company, cost-savings
measures may not be achievable or may need to be reversed, assets
held for sale may not be sold quickly or at all, the Company may be
unable to repurchase its shares of common stock at favorable prices
or at all, due to market conditions, applicable legal requirements,
debt covenants or other restrictions, compliance with covenants and
other restrictions under the Company’s credit facility, medical
device regulations could change in an unfavorable manner, oil and
gas prices could fluctuate causing adverse consequences, and other
adverse conditions in the industries in which the Company operates
may negatively affect its results. In addition, such
forward-looking statements do not include the potential impact of
any business combinations, acquisitions, divestitures, strategic
investments and other significant transactions that may be
completed after the date hereof.
The foregoing risks should be read in conjunction with other
cautionary statements included herein, as well as in the Company's
annual report on Form 10-K for the year ended December 31, 2017 and
subsequent reports filed with the Securities and Exchange
Commission. Except as required by law, the Company expressly
disclaims any obligation or undertaking to update any
forward-looking statements to reflect any change in its
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
TABLES FOLLOW
GENTHERM
INCORPORATEDCONSOLIDATED STATEMENTS OF
INCOME (In thousands, except per share
data) (Unaudited)
|
|
Three Months Ended
December 31, |
|
|
Year EndedDecember
31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Product revenues |
|
$ |
253,652 |
|
|
$ |
257,185 |
|
|
|
1,038,259 |
|
|
$ |
985,683 |
|
|
Cost of sales |
|
|
185,195 |
|
|
|
179,953 |
|
|
|
743,647 |
|
|
|
674,796 |
|
|
Gross
margin |
|
|
68,457 |
|
|
|
77,232 |
|
|
|
294,612 |
|
|
|
310,887 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net research and development
expenses |
|
|
16,518 |
|
|
|
21,845 |
|
|
|
79,900 |
|
|
|
82,478 |
|
|
Acquisition transaction
expenses |
|
|
— |
|
|
|
789 |
|
|
|
— |
|
|
|
789 |
|
|
Selling, general and administrative
expenses |
|
|
29,232 |
|
|
|
33,610 |
|
|
|
127,152 |
|
|
|
130,522 |
|
|
Restructuring expenses |
|
|
1,874 |
|
|
|
— |
|
|
|
14,772 |
|
|
|
— |
|
|
Total
operating expenses |
|
|
47,624 |
|
|
|
56,244 |
|
|
|
221,824 |
|
|
|
213,789 |
|
|
Operating income |
|
|
20,833 |
|
|
|
20,988 |
|
|
|
72,788 |
|
|
|
97,098 |
|
|
Interest expense |
|
|
(1,281 |
) |
|
|
(1,252 |
) |
|
|
(4,942 |
) |
|
|
(4,885 |
) |
|
Foreign currency
(loss)gain |
|
|
(99 |
) |
|
|
(1,188 |
) |
|
|
622 |
|
|
|
(23,108 |
) |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
(11,476 |
) |
|
|
— |
|
|
Other income (loss) |
|
|
(411 |
) |
|
|
5 |
|
|
|
1,127 |
|
|
|
150 |
|
|
Earnings before income
tax |
|
|
19,042 |
|
|
|
18,553 |
|
|
|
58,119 |
|
|
|
69,255 |
|
|
Income tax expense |
|
|
6,413 |
|
|
|
23,795 |
|
|
|
16,220 |
|
|
|
34,028 |
|
|
Net income (loss) |
|
$ |
12,629 |
|
|
$ |
(5,242 |
) |
|
$ |
41,899 |
|
|
$ |
35,227 |
|
|
Basic earnings (loss) per
share |
|
$ |
0.37 |
|
|
$ |
(0.14 |
) |
|
$ |
1.17 |
|
|
$ |
0.96 |
|
|
Diluted earnings (loss)
per share |
|
$ |
0.36 |
|
|
$ |
(0.14 |
) |
|
$ |
1.16 |
|
|
$ |
0.96 |
|
|
Weighted average number of
shares – basic |
|
|
34,551 |
|
|
|
36,743 |
|
|
|
35,921 |
|
|
|
36,721 |
|
|
Weighted average number of
shares – diluted |
|
|
34,743 |
|
|
|
36,869 |
|
|
|
36,177 |
|
|
|
36,814 |
|
|
GENTHERM INCORPORATEDREVENUE BY PRODUCT
CATEGORY (Unaudited, in
thousands)
|
|
Three Months Ended
December 31, |
|
|
|
|
Year Ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
% Diff. |
|
|
|
2018 |
|
|
2017 |
|
% Diff. |
Climate Control Seat
(CCS) |
|
$ |
98,033 |
|
|
$ |
93,397 |
|
|
|
5.0 |
|
% |
|
$ |
374,816 |
|
|
$ |
387,961 |
|
(3.4 |
) |
% |
Seat Heaters |
|
|
70,173 |
|
|
|
78,067 |
|
|
|
(10.1 |
) |
% |
|
|
305,337 |
|
|
|
307,309 |
|
(0.6 |
) |
% |
Steering Wheel
Heaters |
|
|
16,653 |
|
|
|
16,142 |
|
|
|
3.2 |
|
% |
|
|
69,845 |
|
|
|
62,125 |
|
12.4 |
|
% |
Automotive
Cables |
|
|
21,460 |
|
|
|
24,764 |
|
|
|
(13.3 |
) |
% |
|
|
98,931 |
|
|
|
92,093 |
|
7.4 |
|
% |
Battery Thermal Management
(BTM) (1) |
|
|
9,609 |
|
|
|
2,862 |
|
|
|
235.7 |
|
% |
|
|
28,472 |
|
|
|
10,043 |
|
184 |
|
% |
Etratech |
|
|
11,840 |
|
|
|
8,398 |
|
|
|
(13.2 |
) |
%(2) |
|
|
54,267 |
|
|
|
8,398 |
|
(1.3 |
) |
%(2) |
Other Automotive |
|
|
3,406 |
|
|
|
3,007 |
|
|
|
13.3 |
|
% |
|
|
16,924 |
|
|
|
11,528 |
(3) |
46.8 |
|
% |
Subtotal
Automotive |
|
$ |
231,174 |
|
|
$ |
226,637 |
|
|
|
2.0 |
|
% |
|
$ |
948,592 |
|
|
$ |
879,457 |
|
7.9 |
|
% |
Remote Power Generation
(GPT) |
|
|
5,209 |
|
|
|
12,486 |
|
|
|
(58.3 |
) |
% |
|
|
19,222 |
|
|
|
31,891 |
|
(39.7 |
) |
% |
Cincinnati Sub-Zero
Products (CSZ) |
|
|
17,269 |
|
|
|
18,062 |
|
|
|
(4.4 |
) |
% |
|
|
70,445 |
|
|
|
74,335 |
|
(5.2 |
) |
% |
Subtotal
Industrial |
|
$ |
22,478 |
|
|
$ |
30,548 |
|
|
|
(26.4 |
) |
% |
|
$ |
89,667 |
|
|
$ |
106,226 |
|
(15.6 |
) |
% |
Total Company |
|
$ |
253,652 |
|
|
$ |
257,185 |
|
|
|
(1.4 |
) |
% |
|
$ |
1,038,259 |
|
|
$ |
985,683 |
|
5.3 |
|
% |
(1) |
Battery Thermal
Management or BTM product revenues include Gentherm’s automotive
grade, low cost, heat resistant fans and blowers used by customer
for battery cooling through ventilation and production level
shipments of the advanced TED based active cool system which began
during the fourth quarter of 2017. |
(2) |
Amount
represents the pro-forma growth for Etratech by comparing the
amount of revenue during the 2018 period to Etratech’s revenue
during the prior year period which totaled $13,641 and $54,987,
respectively, which is not included in Gentherm’s revenue since the
acquisition did not occur until November 1, 2017. |
(3) |
Includes
$2.0 million rebate to customer during the third quarter of
2017. |
GENTHERM
INCORPORATEDRECONCILIATION OF NET INCOME TO
ADJUSTED EBITDA (Unaudited, in
thousands)
|
|
Three Months Ended
December 31, |
|
|
Year EndedDecember 31, |
|
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Net income (loss) |
|
$ |
12,629 |
|
|
$ |
(5,242 |
) |
|
$ |
41,899 |
|
|
$ |
35,227 |
|
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
6,413 |
|
|
|
23,795 |
|
|
|
16,220 |
|
|
|
34,028 |
|
|
Interest expense |
|
|
1,281 |
|
|
|
1,252 |
|
|
|
4,942 |
|
|
|
4,885 |
|
|
Depreciation and
amortization |
|
|
11,845 |
|
|
|
12,238 |
|
|
|
50,350 |
|
|
|
44,685 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expenses |
|
|
1,874 |
|
|
|
– |
|
|
|
14,772 |
|
|
|
– |
|
|
Impairment of assets held for
sale |
|
|
– |
|
|
|
– |
|
|
|
11,476 |
|
|
|
– |
|
|
Acquisition transaction
expense |
|
|
– |
|
|
|
789 |
|
|
|
– |
|
|
|
789 |
|
|
Unrealized currency loss |
|
|
488 |
|
|
|
2,393 |
|
|
|
589 |
|
|
|
21,819 |
|
|
Adjusted EBITDA |
|
|
34,530 |
|
|
|
35,225 |
|
|
|
140,248 |
|
|
|
141,433 |
|
|
CEO transaction
expenses |
|
|
– |
|
|
|
3,757 |
|
|
|
– |
|
|
|
6,694 |
|
|
Adjusted EBITDA less CEO
transition expenses |
|
$ |
34,530 |
|
|
$ |
38,982 |
|
|
$ |
140,248 |
|
|
$ |
148,127 |
|
|
Use of Non-GAAP Financial Measures In
evaluating its business, Gentherm considers and uses Adjusted
EBITDA as a supplemental measure of its operating
performance. The Company defines Adjusted EBITDA as earnings
before interest, taxes, depreciation and amortization, deferred
financing cost amortization, transaction expenses, debt retirement
expenses, impairment of assets held for sale, unrealized currency
gain or loss and unrealized revaluation of derivatives.
Management believes that Adjusted EBITDA is a meaningful measure of
liquidity and the Company's ability to service debt because it
provides a measure of cash available for such purposes. Management
provides an Adjusted EBITDA measure so that investors will have the
same financial information that management uses with the belief
that it will assist investors in properly assessing the Company's
performance on a period-over-period basis.
The term Adjusted EBITDA is not defined under GAAP, and is not a
measure of operating income, operating performance or liquidity
presented in accordance with GAAP. Adjusted EBITDA has
limitations as an analytical tool, and when assessing the Company's
operating performance, investors should not consider Adjusted
EBITDA in isolation, or as a substitute for net income or other
consolidated income statement data prepared in accordance with
GAAP. Gentherm compensates for these limitations by relying
primarily on its GAAP results and using Adjusted EBITDA only
supplementally.
GENTHERM
INCORPORATEDACQUISITION TRANSACTION EXPENSES,
PURCHASE ACCOUNTING IMPACTSAND OTHER
EFFECTS(Unaudited and in thousands, except per
share data)
|
|
Three Months Ended |
|
|
Full Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
Future Full Year Periods
(estimated) |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
Thereafter |
|
Transaction
related current expense |
|
|
— |
|
|
|
789 |
|
|
|
— |
|
|
|
789 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition transaction
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
purchase accounting impacts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer relationships
amortization |
|
|
2,528 |
|
|
|
2,412 |
|
|
|
10,363 |
|
|
|
8,197 |
|
|
|
7,986 |
|
|
|
6,728 |
|
|
|
6,192 |
|
|
|
28,072 |
|
Technology
amortization |
|
|
968 |
|
|
|
844 |
|
|
|
2,984 |
|
|
|
2,943 |
|
|
|
2,406 |
|
|
|
2,406 |
|
|
|
2,179 |
|
|
|
2,547 |
|
Trade name
amortization |
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
132 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Inventory fair value
adjustment |
|
|
30 |
|
|
|
20 |
|
|
|
118 |
|
|
|
20 |
|
|
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other
effects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
loss |
|
|
488 |
|
|
|
2,393 |
|
|
|
589 |
|
|
|
21,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses |
|
|
1,874 |
|
|
|
— |
|
|
|
14,772 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of assets
held for sale |
|
|
— |
|
|
|
— |
|
|
|
11,476 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CEO transition
expenses |
|
|
— |
|
|
|
3,757 |
|
|
|
— |
|
|
|
6,694 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total acquisition
transaction expenses, purchase accounting impacts and other
effects |
|
$ |
5,888 |
|
|
$ |
10,260 |
|
|
$ |
40,302 |
|
|
$ |
40,594 |
|
|
$ |
10,431 |
|
|
$ |
9,134 |
|
|
$ |
8,371 |
|
|
$ |
30,619 |
|
Tax effect of
above |
|
|
(1,112 |
) |
|
|
(2,625 |
) |
|
|
(5,462 |
) |
|
|
(10,855 |
) |
|
|
(1,517 |
) |
|
|
(1,226 |
) |
|
|
(1,067 |
) |
|
|
(2,937 |
) |
U.S. Tax
Reform |
|
|
— |
|
|
|
20,153 |
|
|
|
— |
|
|
|
20,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
effect |
|
$ |
4,776 |
|
|
$ |
27,788 |
|
|
$ |
34,840 |
|
|
$ |
49,892 |
|
|
$ |
8,914 |
|
|
$ |
7,908 |
|
|
$ |
7,304 |
|
|
$ |
27,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
difference |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
|
$ |
0.76 |
|
|
$ |
0.97 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.14 |
|
|
$ |
0.76 |
|
|
$ |
0.96 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.61 |
|
|
$ |
2.14 |
|
|
$ |
2.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.50 |
|
|
$ |
0.61 |
|
|
$ |
2.12 |
|
|
$ |
2.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENTHERM
INCORPORATEDCONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
|
December 31,
2018 |
|
|
December 31,
2017 |
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
39,620 |
|
|
$ |
103,172 |
|
Accounts
receivable, less allowance of $851 and $973, respectively |
|
166,858 |
|
|
|
185,058 |
|
Inventory: |
|
|
|
|
|
|
|
Raw
materials |
|
61,679 |
|
|
|
64,175 |
|
Work in
process |
|
5,939 |
|
|
|
16,139 |
|
Finished
goods |
|
44,917 |
|
|
|
41,095 |
|
Inventory, net |
|
112,535 |
|
|
|
121,409 |
|
Derivative financial instruments |
|
92 |
|
|
|
213 |
|
Prepaid
expenses and other assets |
|
54,271 |
|
|
|
51,217 |
|
Assets
held for sale |
|
69,699 |
|
|
|
— |
|
Total
current assets |
|
443,075 |
|
|
|
461,069 |
|
Property and equipment,
net |
|
171,380 |
|
|
|
200,294 |
|
Goodwill |
|
55,311 |
|
|
|
69,685 |
|
Other intangible
assets, net |
|
56,385 |
|
|
|
83,286 |
|
Deferred financing
costs |
|
647 |
|
|
|
936 |
|
Deferred income tax
assets |
|
64,024 |
|
|
|
30,152 |
|
Other non-current
assets |
|
12,225 |
|
|
|
37,983 |
|
Total
assets |
$ |
803,047 |
|
|
$ |
883,405 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
93,113 |
|
|
$ |
89,596 |
|
Accrued
liabilities |
|
65,808 |
|
|
|
77,209 |
|
Current
maturities of long-term debt |
|
3,413 |
|
|
|
3,460 |
|
Derivative financial instruments |
|
— |
|
|
|
1,050 |
|
Liabilities held for sale |
|
13,062 |
|
|
|
— |
|
Total
current liabilities |
|
175,396 |
|
|
|
171,315 |
|
Pension benefit
obligation |
|
7,211 |
|
|
|
7,913 |
|
Other liabilities |
|
3,087 |
|
|
|
2,747 |
|
Long-term debt, less
current maturities |
|
136,477 |
|
|
|
141,209 |
|
Deferred income tax
liabilities |
|
1,177 |
|
|
|
6,347 |
|
Total
liabilities |
|
323,348 |
|
|
|
329,531 |
|
Shareholders’
equity: |
|
|
|
|
|
|
|
Common
Stock: |
|
|
|
|
|
|
|
No par
value; 55,000,000 shares authorized, 33,856,629 and 36,761,362
issued and outstanding at December 31, 2018 and
December 31, 2017, respectively |
|
140,300 |
|
|
|
265,048 |
|
Paid-in
capital |
|
14,934 |
|
|
|
15,625 |
|
Accumulated other comprehensive loss |
|
(39,500 |
) |
|
|
(20,444 |
) |
Accumulated earnings |
|
363,965 |
|
|
|
293,645 |
|
Total
shareholders’ equity |
|
479,699 |
|
|
|
553,874 |
|
Total
liabilities and shareholders’ equity |
$ |
803,047 |
|
|
$ |
883,405 |
|
GENTHERM
INCORPORATEDCONSOLIDATED STATEMENTS OF CASH
FLOWS(In
thousands)(Unaudited)
|
Year Ended December 31, |
|
|
2018 |
|
|
2017 |
|
Operating
Activities: |
|
|
|
|
|
|
|
Net
income |
$ |
41,899 |
|
|
$ |
35,227 |
|
Adjustments to reconcile net income to cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
50,638 |
|
|
|
44,972 |
|
Deferred
income taxes |
|
6,699 |
|
|
|
5,135 |
|
Stock
compensation |
|
9,047 |
|
|
|
12,507 |
|
Defined
benefit plan (income) expense |
|
82 |
|
|
|
(23 |
) |
Provision
of doubtful accounts |
|
(1 |
) |
|
|
(469 |
) |
Loss on
sale of property and equipment |
|
2,602 |
|
|
|
1,042 |
|
Impairment loss |
|
11,476 |
|
|
|
— |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
|
3,024 |
|
|
|
6,033 |
|
Inventory |
|
(7,689 |
) |
|
|
(4,348 |
) |
Prepaid
expenses and other assets |
|
(4,428 |
) |
|
|
(12,334 |
) |
Accounts
payable |
|
12,380 |
|
|
|
(7,691 |
) |
Accrued
liabilities |
|
(7,295 |
) |
|
|
(30,171 |
) |
Net cash
provided by operating activities |
|
118,434 |
|
|
|
49,880 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Proceeds
from the sale of property and equipment |
|
799 |
|
|
|
91 |
|
Investment in subsidiary, net of cash acquired |
|
(15 |
) |
|
|
(66,994 |
) |
Purchases
of property and equipment |
|
(41,541 |
) |
|
|
(50,785 |
) |
Net cash
used in investing activities |
|
(40,757 |
) |
|
|
(117,688 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Borrowing
of debt |
|
94,679 |
|
|
|
— |
|
Repayments of debt |
|
(99,460 |
) |
|
|
(27,156 |
) |
Cash paid
for the cancellation of restricted stock |
|
(1,188 |
) |
|
|
(1,837 |
) |
Proceeds
from the exercise of Common Stock options |
|
14,777 |
|
|
|
2,755 |
|
Cash paid
for the repurchase of restricted stock |
|
(148,074 |
) |
|
|
(5,326 |
) |
Net cash
used in financing activities |
|
(139,266 |
) |
|
|
(31,564 |
) |
Foreign
currency effect |
|
(1,963 |
) |
|
|
25,357 |
|
Net
decrease in cash and cash equivalents |
|
(63,552 |
) |
|
|
(74,015 |
) |
Cash and
cash equivalents at beginning of period |
|
103,172 |
|
|
|
177,187 |
|
Cash and
cash equivalents at end of period |
$ |
39,620 |
|
|
$ |
103,172 |
|
Supplemental disclosure
of cash flow information: |
|
|
|
|
|
|
|
Cash paid
for taxes |
$ |
23,159 |
|
|
$ |
76,741 |
|
Cash paid
for interest |
$ |
5,027 |
|
|
$ |
4,540 |
|
Supplemental disclosure
of non-cash transactions: |
|
|
|
|
|
|
|
Common
Stock issued to Board of Directors and employees |
$ |
5,759 |
|
|
$ |
6,298 |
|
Gentherm (NASDAQ:THRM)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Gentherm (NASDAQ:THRM)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024