HZN Horizon Global Corporation

Third Quarter Summary

• Strategic alternatives process ongoing with objective to maximize shareholder value
• Focus on margin improvement through commercial actions, key business initiatives and cost structure optimization
• Net sales of $149.0 million
  • $47.5 million decrease from third quarter of 2021
• Gross profit of $16.7 million
  • $22.1 million decrease from third quarter of 2021
• Gross profit margin(4) decreased to 11.2% from 19.7% in third quarter of 2021
• Net loss of $25.7 million
  • $22.9 million deterioration from third quarter of 2021
• Adjusted EBITDA(1) of $(5.9) million
  • $18.9 million decrease from third quarter of 2021

Horizon Global Corporation (NYSE: HZN), one of the leading manufacturers of branded towing and trailering equipment, today reported financial results for the third quarter of 2022.

“In August, we announced that we would be undertaking a broad review of strategic alternatives, with the ultimate objective being to maximize shareholder value,” stated Terry Gohl, Horizon Global’s President and Chief Executive Officer. “This could result in a sale of some or all of the company. This process is ongoing and we will provide an update when appropriate.”

Gohl continued, “The third quarter was marked with continued softness in our higher margin non-OE sales channels. This was a result of market factors and elevated inventory levels at certain of our large customers. The resulting volume underperformance and unfavorable sales mix significantly impacted our margins for the quarter. This is a disappointing result, but we are not standing still. Despite market headwinds, we are taking aggressive actions to improve margin performance and position the business for profitable growth.”

2022 Third Quarter Segment Results

Horizon Americas. Net sales decreased $36.6 million, or 31.6%, to $79.2 million when compared to the third quarter of 2021. This decrease was primarily driven by a $20.5 million reduction in the aftermarket sales channel and a combined $15.6 million decrease in the retail and e-commerce sales channel attributable to lower sales volumes as we experienced softening market demand coupled with customers using existing inventories to satisfy consumer demand. Customer pricing recoveries partially offset the unfavorable impacts of lower sales volumes. Gross profit decreased $17.5 million, driven by lower net sales and a significant mix shift from higher margin to lower margin sales channels, coupled with a continuation of elevated manufacturing input costs, primarily increased material inflation. Adjusted EBITDA(1) was $(1.4) million, as compared to $14.5 million for the third quarter of 2021, primarily due to unfavorable gross profit.

Horizon Europe-Africa. Net sales decreased $10.9 million, or 13.6%, to $69.8 million when compared to the third quarter of 2021. This decrease was primarily driven by a $7.7 million reduction in the aftermarket sales channel and a $6.3 million decrease in the automotive OES sales channel, which were attributable to lower sales volumes. Net sales were also negatively impacted by $11.5 million of unfavorable currency translation. Customer pricing recoveries partially offset the unfavorable impacts of lower sales volumes and currency translation. Gross profit decreased $4.6 million, driven by lower net sales and a mix shift from higher margin to lower margin sales channels, coupled with increased material costs and operational inefficiencies. Adjusted EBITDA(1) was $(0.2) million, as compared to $3.4 million for the third quarter of 2021, primarily due to unfavorable gross profit.

Balance Sheet and Liquidity. Cash and Availability(2) was $17.5 million, a decrease of $21.7 million compared to December 31, 2021. Working Capital(3) was $99.9 million, a decrease of $8.9 million compared to December 31, 2021. Gross debt plus redeemable preferred stock increased $51.0 million to $351.9 million compared to December 31, 2021, primarily reflecting the Company’s issuance of $41.0 million of redeemable preferred stock during 2022, coupled with additional borrowings on the Company’s Revolving Credit Facility.

Summary

“We are determined to unlock the value of our innovative products and iconic brands,” Gohl stated. “A primary focus is to shift our sales mix to higher margin non-OE channels. As market headwinds ease and our customers destock their inventory, we believe we are well positioned to serve these more profitable channels. Further, we are taking aggressive action to optimize our cost structure, including our global footprint. The transformation of our Brasov, Romania facility has been met with strong customer acceptance and new business awards, and we intend to apply the principles of this transformation to other geographies. Importantly, these actions, along with many others being executed throughout our organization, are aligned with our long-term double-digit margin target.”

Conference Call Details

Horizon Global will host a conference call regarding third quarter 2022 earnings on Wednesday, November 9, 2022 at 8:30 a.m. Eastern Time. The conference call will be hosted by Horizon Global's President and Chief Executive Officer, Terry Gohl, and James Zhou, Chief Financial Officer. Participants on the call are asked to register five to ten minutes prior to the scheduled start time by dialing (844) 825-9786 and from outside the U.S. at (412) 902-4185. Please ask to be joined into the Horizon Global call, using the conference identification number 10172174.

The third quarter 2022 results and supplemental materials, including a presentation in PDF format, will be distributed before the market opens on November 9, 2022 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 6916805. The telephone replay will be available approximately two hours after the end of the call and continue through November 23, 2022.

About Horizon Global

Headquartered in Plymouth, Michigan, Horizon Global is a leading 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 premium 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 3,500 employees.

For more information, please visit www.horizonglobal.com.

Forward-Looking Statements

This release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements 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 outcome of the Company’s review of strategic alternatives; the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition and liquidity, including, without limitation, supply chain and logistics issues and inflationary pressures; interest rate volatility; liabilities and restrictions imposed by the Company’s debt instruments, including the Company’s ability to comply with the applicable financial covenants related thereto or obtain any necessary amendments or waivers with respect to such financial covenants; market demand; competitive factors; supply constraints and shipping disruptions; material, logistics and energy costs, including the increased material costs resulting from the COVID-19 pandemic; inflation and deflation rates; the impact the conflict between Russia and Ukraine has on our business, financial condition or future results, including the duration and scope of such conflict, its impact on disruptions and inefficiencies in our supply chain and our ability to procure certain raw materials, as well as on our energy supply in Europe; 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, including recessionary conditions and volatile interest rates; 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; factors affecting the Company’s business that are outside of its control, including natural disasters and severe weather conditions (including those caused by climate change), global health pandemics, accidents and governmental actions; our ability to regain and remain in compliance with the New York Stock Exchange’s (“NYSE”) continued listing requirements; our ability to continue as a going concern; and other risks that are discussed in Part I, Item 1A, “Risk Factors.” in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2021. The risks described in the Company’s Annual Report on Form 10-K 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.

The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this release. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. 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 of this release or to reflect the occurrence of unanticipated events, except as otherwise required by law.

(1)

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 U.S. 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. Adjusted EBITDA, as determined and measured by Horizon Global, should also not be compared to similarly titled measures reported by other companies.

(2)

"Cash and Availability" refers to “cash and cash equivalents” and amounts of cash accessible but undrawn from credit facilities.

(3)

“Working Capital” defined as "total current assets" excluding "cash, cash equivalents and restricted cash", less "total current liabilities" excluding "current maturities, long-term debt" and "short-term operating lease liabilities".

(4)

“Gross Profit Margin” refers to “gross profit” as a percentage of “net sales”.

Horizon Global Corporation

Condensed Consolidated Statements of Operations

(unaudited - dollars in thousands, except per share data)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

2022

 

2021

 

2022

 

2021

Net sales

 

$

148,970

 

 

$

196,540

 

 

$

511,050

 

 

$

617,850

 

Cost of sales

 

 

(132,320

)

 

 

(157,780

)

 

 

(453,470

)

 

 

(491,240

)

Gross profit

 

 

16,650

 

 

 

38,760

 

 

 

57,580

 

 

 

126,610

 

Selling, general and administrative expenses

 

 

(25,270

)

 

 

(32,430

)

 

 

(90,070

)

 

 

(102,170

)

Operating (loss) profit

 

 

(8,620

)

 

 

6,330

 

 

 

(32,490

)

 

 

24,440

 

Interest expense

 

 

(10,230

)

 

 

(6,970

)

 

 

(26,210

)

 

 

(21,000

)

Loss on debt extinguishment of Replacement Term Loan

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11,650

)

Other expense, net

 

 

(5,760

)

 

 

(1,720

)

 

 

(14,610

)

 

 

(5,940

)

Loss before income tax

 

 

(24,610

)

 

 

(2,360

)

 

 

(73,310

)

 

 

(14,150

)

Income tax expense

 

 

(1,070

)

 

 

(410

)

 

 

(1,750

)

 

 

(2,810

)

Net loss

 

 

(25,680

)

 

 

(2,770

)

 

 

(75,060

)

 

 

(16,960

)

Less: Net loss attributable to noncontrolling interest

 

 

(220

)

 

 

(300

)

 

 

(720

)

 

 

(970

)

Net loss attributable to Horizon Global

 

$

(25,460

)

 

$

(2,470

)

 

$

(74,340

)

 

$

(15,990

)

Net loss per share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.92

)

 

$

(0.09

)

 

$

(2.70

)

 

$

(0.59

)

Diluted

 

$

(0.92

)

 

$

(0.09

)

 

$

(2.70

)

 

$

(0.59

)

Horizon Global Corporation

Condensed Consolidated Balance Sheets

(dollars in thousands)

 

 

 

September 30, 2022

 

December 31, 2021

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

7,760

 

 

$

11,780

 

Restricted cash

 

 

5,380

 

 

 

5,490

 

Receivables, net

 

 

75,600

 

 

 

80,720

 

Inventories

 

 

155,600

 

 

 

162,830

 

Prepaid expenses and other current assets

 

 

17,080

 

 

 

12,340

 

Total current assets

 

 

261,420

 

 

 

273,160

 

Property and equipment, net

 

 

66,200

 

 

 

71,610

 

Operating lease right-of-use assets

 

 

34,360

 

 

 

37,810

 

Other intangibles, net

 

 

41,410

 

 

 

48,910

 

Deferred income taxes

 

 

1,520

 

 

 

1,750

 

Other assets

 

 

5,140

 

 

 

5,680

 

Total assets

 

$

410,050

 

 

$

438,920

 

Liabilities and Shareholders' Deficit

 

 

 

 

Current liabilities:

 

 

 

 

Short-term borrowings and current maturities, long-term debt

 

$

74,450

 

 

$

3,780

 

Accounts payable

 

 

106,730

 

 

 

102,190

 

Short-term operating lease liabilities

 

 

10,600

 

 

 

11,010

 

Accrued liabilities

 

 

41,660

 

 

 

44,870

 

Total current liabilities

 

 

233,440

 

 

 

161,850

 

Gross long-term debt

 

 

235,110

 

 

 

297,070

 

Unamortized debt issuance costs and discount

 

 

(26,020

)

 

 

(26,520

)

Long-term debt

 

 

209,090

 

 

 

270,550

 

Redeemable preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: 41,000 and 0 shares at September 30, 2022 and December 31, 2021, respectively

 

 

42,320

 

 

 

—

 

Deferred income taxes

 

 

1,800

 

 

 

1,920

 

Long-term operating lease liabilities

 

 

30,680

 

 

 

35,930

 

Other long-term liabilities

 

 

8,390

 

 

 

8,920

 

Total liabilities

 

 

525,720

 

 

 

479,170

 

Total Horizon Global shareholders' deficit

 

 

(108,400

)

 

 

(33,690

)

Noncontrolling interest

 

 

(7,270

)

 

 

(6,560

)

Total shareholders' deficit

 

 

(115,670

)

 

 

(40,250

)

Total liabilities and shareholders' deficit

 

$

410,050

 

 

$

438,920

 

Horizon Global Corporation

Condensed Consolidated Statements of Cash Flows

(unaudited - dollars in thousands)

 

 

 

Nine Months Ended September 30,

 

 

2022

 

2021

Cash Flows from Operating Activities:

 

 

 

 

Net loss

 

$

(75,060

)

 

$

(16,960

)

 

 

 

 

 

Adjustments to reconcile net loss to net cash used for operating activities:

 

 

 

 

Depreciation

 

 

9,980

 

 

 

11,710

 

Amortization of intangible assets

 

 

3,260

 

 

 

4,220

 

Amortization of original issuance discount and debt issuance costs

 

 

7,560

 

 

 

8,010

 

Deferred income taxes

 

 

290

 

 

 

730

 

Non-cash compensation (income) expense

 

 

(420

)

 

 

2,590

 

Paid-in-kind dividends and interest

 

 

1,170

 

 

 

650

 

Redeemable preferred stock redemption costs

 

 

160

 

 

 

—

 

Loss on debt extinguishment of Replacement Term Loan

 

 

—

 

 

 

11,650

 

Increase in receivables

 

 

(4,120

)

 

 

(12,360

)

Increase in inventories

 

 

(160

)

 

 

(52,700

)

Increase in prepaid expenses and other assets

 

 

(5,890

)

 

 

(1,910

)

Increase in accounts payable and accrued liabilities

 

 

18,070

 

 

 

11,820

 

Other, net

 

 

8,140

 

 

 

1,910

 

Net cash used for operating activities

 

 

(37,020

)

 

 

(30,640

)

Cash Flows from Investing Activities:

 

 

 

 

Capital expenditures

 

 

(12,020

)

 

 

(14,730

)

Other, net

 

 

30

 

 

 

20

 

Net cash used for investing activities

 

 

(11,990

)

 

 

(14,710

)

Cash Flows from Financing Activities:

 

 

 

 

Proceeds from Revolving Credit Facility, net of issuance costs

 

 

24,510

 

 

 

28,680

 

Repayments of borrowings on Revolving Credit Facility

 

 

(12,160

)

 

 

(8,000

)

Proceeds from Senior Term Loan, net of issuance costs

 

 

118,200

 

 

 

75,300

 

Repayments of borrowings on Replacement Term Loan, including transaction fees

 

 

—

 

 

 

(94,940

)

Repayments of borrowings on Convertible Notes

 

 

(85,000

)

 

 

—

 

Proceeds from borrowings on credit facilities

 

 

2,230

 

 

 

2,870

 

Repayments of borrowings on credit facilities

 

 

(3,460

)

 

 

(1,960

)

Proceeds from issuance of common stock warrants

 

 

3,040

 

 

 

16,300

 

Proceeds from exercise of common stock warrants

 

 

—

 

 

 

420

 

Other, net

 

 

(930

)

 

 

(650

)

Net cash provided by financing activities

 

 

46,430

 

 

 

18,020

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(1,550

)

 

 

(510

)

Cash, Cash Equivalents and Restricted Cash:

 

 

 

 

Decrease for the period

 

 

(4,130

)

 

 

(27,840

)

At beginning of period

 

 

17,270

 

 

 

50,690

 

At end of period

 

$

13,140

 

 

$

22,850

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest

 

$

17,110

 

 

$

16,130

 

Cash paid for taxes, net of refunds

 

$

1,190

 

 

$

2,010

 

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, further discussed in the Liquidity and Capital Resources section below. 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 profit (loss) to measure stand-alone segment performance.

Adjusted EBITDA is defined as net income (loss) 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, gains (losses) on extinguishment of debt, impairment of goodwill and other intangibles, non-cash stock compensation, certain product liability and litigation claims, acquisition and integration costs, gains (losses) on business divestitures and other assets, debt issuance costs, board transition support and non-cash unrealized foreign currency remeasurement costs.

Adjusted EBITDA for our operating segments for the three months ended September 30, 2022 and 2021 is as follows:

 

 

Three Months Ended September 30, 2022

 

Three Months Ended September 30, 2021

 

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

 

 

 

 

 

 

 

$

(25,460

)

 

 

 

 

 

 

 

$

(2,470

)

 

$

(22,990

)

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(220

)

 

 

 

 

 

 

 

 

(300

)

 

 

80

 

Net loss

 

 

 

 

 

 

 

$

(25,680

)

 

 

 

 

 

 

 

$

(2,770

)

 

$

(22,910

)

Interest expense

 

 

 

 

 

 

 

 

10,230

 

 

 

 

 

 

 

 

 

6,970

 

 

 

3,260

 

Income tax expense

 

 

 

 

 

 

 

 

1,070

 

 

 

 

 

 

 

 

 

410

 

 

 

660

 

Depreciation and amortization

 

 

 

 

 

 

 

 

4,300

 

 

 

 

 

 

 

 

 

5,210

 

 

 

(910

)

EBITDA

 

$

(2,610

)

 

$

(4,490

)

 

$

(2,980

)

 

$

(10,080

)

 

$

14,050

 

 

$

2,030

 

$

(6,260

)

 

$

9,820

 

 

$

(19,900

)

Net loss attributable to noncontrolling interest

 

 

—

 

 

 

220

 

 

 

—

 

 

 

220

 

 

 

—

 

 

 

300

 

 

—

 

 

 

300

 

 

 

(80

)

Severance

 

 

200

 

 

 

40

 

 

 

10

 

 

 

250

 

 

 

50

 

 

 

—

 

 

—

 

 

 

50

 

 

 

200

 

Restructuring, relocation and related business disruption costs

 

 

90

 

 

 

20

 

 

 

220

 

 

 

330

 

 

 

60

 

 

 

30

 

 

10

 

 

 

100

 

 

 

230

 

Non-cash stock compensation

 

 

—

 

 

 

—

 

 

 

(2,470

)

 

 

(2,470

)

 

 

—

 

 

 

—

 

 

880

 

 

 

880

 

 

 

(3,350

)

Loss (gain) on business divestitures and other assets

 

 

580

 

 

 

20

 

 

 

(30

)

 

 

570

 

 

 

300

 

 

 

10

 

 

10

 

 

 

320

 

 

 

250

 

Debt issuance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

70

 

 

100

 

 

 

170

 

 

 

(170

)

Unrealized foreign currency remeasurement costs

 

 

370

 

 

 

3,950

 

 

 

920

 

 

 

5,240

 

 

 

(10

)

 

 

950

 

 

400

 

 

 

1,340

 

 

 

3,900

 

Adjusted EBITDA

 

$

(1,370

)

 

$

(240

)

 

$

(4,330

)

 

$

(5,940

)

 

$

14,450

 

 

$

3,390

 

$

(4,860

)

 

$

12,980

 

 

$

(18,920

)

Segment Information

Financial information for our operating segments for the three months ended September 30, 2022 and 2021 is as follows:

 

 

Three Months Ended September 30,

 

Change

 

 

2022

 

2021

 

$

 

%

 

 

(dollars in thousands)

Net Sales

 

 

 

 

 

 

 

 

Horizon Americas

 

$

79,220

 

 

$

115,850

 

 

$

(36,630

)

 

(31.6

%)

Horizon Europe-Africa

 

 

69,750

 

 

 

80,690

 

 

 

(10,940

)

 

(13.6

%)

Total

 

$

148,970

 

 

$

196,540

 

 

$

(47,570

)

 

(24.2

%)

Gross Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

11,780

 

 

$

29,310

 

 

$

(17,530

)

 

(59.8

%)

Horizon Europe-Africa

 

 

4,870

 

 

 

9,450

 

 

 

(4,580

)

 

(48.5

%)

Total

 

$

16,650

 

 

$

38,760

 

 

$

(22,110

)

 

(57.0

%)

Operating (Loss) Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

(3,500

)

 

$

12,400

 

 

$

(15,900

)

 

(128.2

%)

Horizon Europe-Africa

 

 

(2,940

)

 

 

(150

)

 

 

(2,790

)

 

(1,860.0

%)

Corporate

 

 

(2,180

)

 

 

(5,920

)

 

 

3,740

 

 

63.2

%

Total

 

$

(8,620

)

 

$

6,330

 

 

$

(14,950

)

 

(236.2

%)

Adjusted EBITDA

 

 

 

 

 

 

 

 

Horizon Americas

 

$

(1,370

)

 

$

14,450

 

 

$

(15,820

)

 

(109.5

%)

Horizon Europe-Africa

 

 

(240

)

 

 

3,390

 

 

 

(3,630

)

 

(107.1

%)

Corporate

 

 

(4,330

)

 

 

(4,860

)

 

 

530

 

 

10.9

%

Total

 

$

(5,940

)

 

$

12,980

 

 

$

(18,920

)

 

(145.8

%)

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

September 30, 2022

 

 

Horizon Americas

 

Horizon

Europe-Africa

 

Consolidated

Revenue growth as reported

 

(31.6

)%

 

(13.6

)%

 

(24.2

)%

Less: currency impact

 

—

%

 

(14.2

)%

 

(5.8

)%

Revenue growth at constant currency

 

(31.6

)%

 

0.6

%

 

(18.4

)%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005378/en/

Matthew Meyer, Chief Accounting Officer Horizon Global Corporation (734) 656-3000 mmeyer@horizonglobal.com