Financial Tables 2021

VISTEON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions except per share amounts) 

 

(Unaudited)

    
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

        

Net sales

$ 786

 

$ 787

 

$ 2,773

 

$ 2,548

Cost of sales

(687)

 

(698)

 

(2,519)

 

(2,303)

Gross margin

99

 

89

 

254

 

245

Selling, general and administrative expenses

(44)

 

(53)

 

(175)

 

(193)

Restructuring and impairment expense

(16)

 

(7)

 

(14)

 

(76)

Interest expense

(2)

 

(2)

 

(10)

 

(16)

Interest income

 

1

 

2

 

5

Equity in net income of non-consolidated affiliates

4

 

2

 

6

 

6

Other income, net

5

 

(1)

 

18

 

9

Income (loss) before income taxes

46

 

29

 

81

 

(20)

Provision for income taxes

(11)

 

(9)

 

(31)

 

(28)

Net income (loss) from continuing operations

35

 

20

 

50

 

(48)

Net income (loss) from discontinued operations, net of tax

 

 

 

Net income (loss)

35

 

20

 

50

 

(48)

Net (income) loss attributable to non-controlling interests

(4)

 

(2)

 

(9)

 

(8)

Net income (loss) attributable to Visteon Corporation

$ 31

 

$ 18

 

$ 41

 

$ (56)

        

Comprehensive income (loss)

$ 118

 

$ 2

 

$ 128

 

$ (78)

Less: Comprehensive income (loss) attributable to non-controlling interests

6

 

6

 

12

 

15

Comprehensive income (loss) attributable to Visteon Corporation

$ 112

 

$ (4)

 

$ 116

 

$ (93)

        

Earnings per share data:

       

Basic earnings (loss) per share attributable to Visteon Corporation

$ 1.10

 

$ 1.53

 

$ 1.46

 

$ (2.01)

        

Diluted earnings (loss) per share attributable to Visteon Corporation

$ 1.09

 

$ 1.52

 

$ 1.44

 

$ (2.01)

        

Average shares outstanding (in millions)

       

Basic

28.0

 

27.8

 

28.0

 

27.9

Diluted

28.4

 

28.2

 

28.4

 

27.9

VISTEON CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions)

    
 

December 31,

 

December 31,

 

2021

 

2020

ASSETS

   

Cash and equivalents

$ 452

 

$ 496

Restricted cash

3

 

4

Accounts receivable, net

549

 

484

Inventories, net

262

 

177

Other current assets

158

 

180

Total current assets

1,424

 

1,341

    

Property and equipment, net

388

 

436

Intangible assets, net

118

 

127

Right-of-use assets

139

 

172

Investments in non-consolidated affiliates

54

 

60

Other non-current assets

111

 

135

Total assets

$ 2,234

 

$ 2,271

    

LIABILITIES AND EQUITY

   

Short-term debt

$ 4

 

$ —

Accounts payable

522

 

500

Accrued employee liabilities

80

 

83

Current lease liability

28

 

32

Other current liabilities

218

 

209

Total current liabilities

852

 

824

    

Long-term debt, net

349

 

349

Employee benefits

198

 

322

Non-current lease liability

117

 

146

Deferred tax liabilities

27

 

28

Other non-current liabilities

75

 

92

    

Stockholders’ equity:

   

Common stock

1

 

1

Additional paid-in capital

1,349

 

1,348

Retained earnings

1,664

 

1,623

Accumulated other comprehensive loss

(229)

 

(304)

Treasury stock

(2,269)

 

(2,281)

Total Visteon Corporation stockholders’ equity

516

 

387

Non-controlling interests

100

 

123

Total equity

616

 

510

Total liabilities and equity

$ 2,234

 

$ 2,271

VISTEON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS 

 (In millions) 

 

(Unaudited)

    
 

Three Months Ended

 

Twelve Months Ended

 

December 31, 

 

December 31,

 

2021

 

2020

 

2021

 

2020

OPERATING

       

Net income (loss)

$ 35

 

$ 20

 

$ 50

 

$ (48)

Adjustments to reconcile net income (loss) to net cash provided from operating activities: 

       

Depreciation and amortization

26

 

29

 

108

 

104

Non-cash stock-based compensation

5

 

5

 

18

 

18

Equity in net income of non-consolidated affiliates, net of dividends remitted

(2)

 

(1)

 

12

 

(5)

Impairments

9

 

 

9

 

Other non-cash items

10

 

6

 

14

 

7

Changes in assets and liabilities:

       

Accounts receivable

(128)

 

13

 

(78)

 

51

Inventories

(10)

 

(7)

 

(92)

 

(2)

Accounts payable

96

 

(24)

 

28

 

(13)

Other assets and other liabilities

29

 

30

 

(11)

 

56

Net cash provided from operating activities

70

 

71

 

58

 

168

INVESTING

       

Capital expenditures, including intangibles

(16)

 

(21)

 

(70)

 

(104)

Contributions to equity method investments

(2)

 

(1)

 

(5)

 

(2)

Net investment hedge transactions

1

 

1

 

4

 

8

Loans to non-consolidated affiliate, net of repayments

4

 

 

6

 

2

Other, net

 

 

2

 

(2)

Net cash used by investing activities

(13)

 

(21)

 

(63)

 

(98)

FINANCING

       

Borrowings on debt

 

 

 

400

Principal payments on debt

 

 

 

(400)

Repurchase of common stock

 

 

 

(16)

Short-term debt, net

(2)

 

 

4

 

(37)

Dividends paid to non-controlling interests

(2)

 

 

(35)

 

(7)

Other

1

 

2

 

2

 

2

Net cash used by financing activities

(3)

 

2

 

(29)

 

(58)

Effect of exchange rates

 

13

 

(11)

 

19

Net increase (decrease) in cash, equivalents, and restricted cash 

54

 

65

 

(45)

 

31

Cash, equivalents, and restricted cash at beginning of the period

401

 

435

 

500

 

469

Cash, equivalents, and restricted cash at end of the period

$ 455

 

$ 500

 

$ 455

 

$ 500

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,  restructuring expense, net interest expense, loss on divestiture, equity in net income of non-consolidated affiliates, gain on non-consolidated affiliate transactions, provision for income taxes, discontinued operations, net income attributable to non-controlling interests, non-cash stock-based compensation expense, 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

 

Twelve Months Ended

 

Estimated

 

December 31,

 

December 31,

 

Full Year

Visteon:

2021

 

2020

 

2021

 

2020

 

2022

Net income (loss) attributable to Visteon Corporation

$ 31

 

$ 18

 

$ 41

 

$ (56)

 

$ 121

  Depreciation and amortization

26

 

29

 

108

 

104

 

105

  Restructuring expense and impairment

16

 

7

 

14

 

76

 

5

  Provision for income taxes

11

 

9

 

31

 

28

 

40

  Non-cash, stock-based compensation expense

5

 

5

 

18

 

18

 

25

  Net income attributable to non-controlling interests

4

 

2

 

9

 

8

 

10

  Interest expense, net

2

 

1

 

8

 

11

 

10

  Equity in net income (loss) of non-consolidated affiliates

(4)

 

(2)

 

(6)

 

(6)

 

(6)

  Other

1

 

6

 

5

 

9

 

5

Adjusted EBITDA

$ 92

 

$ 75

 

$ 228

 

$ 192

 

$ 315


 

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.

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. Free cash flow and adjusted free cash flow include amounts associated with discontinued operations. 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

 

Twelve Months Ended

 

Estimated 

 

December 31,

 

December 31,

 

Full Year

Total Visteon:

2021

 

2020

 

2021

 

2020

 

2022

Cash provided from operating activities

$ 70

 

$ 71

 

$ 58

 

$ 168

 

$ 200

Capital expenditures, including intangibles 

(16)

 

(21)

 

(70)

 

(104)

 

(110)

Free cash flow

$ 54

 

$ 50

 

$ (12)

 

$ 64

 

$ 90

Restructuring related payments

5

 

9

 

34

 

32

 

10

Adjusted free cash flow

$ 59

 

$ 59

 

$ 22

 

$ 96

 

$ 100

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.

Adjusted Net Income (Loss) 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, impairment, loss on divestiture, gain on non-consolidated affiliate transactions, discontinued operations, 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

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

Net income (loss) attributable to Visteon

$ 31

 

$ 18

 

$ 41

 

$ (56)

        

Diluted earnings (loss) per share:

       

Net income (loss) attributable to Visteon

$ 31

 

$ 18

 

$ 41

 

$ (56)

Average shares outstanding, diluted

28.4

 

28.2

 

28.4

 

27.9

Diluted earnings (loss) per share

$ 1.09

 

$ 0.64

 

$ 1.44

 

$ (2.01)

        

Adjusted net income (loss) and adjusted earnings (loss) per share:

      

Net income (loss) attributable to Visteon

$ 31

 

$ 18

 

$ 41

 

$ (56)

Restructuring expense and impairment

16

 

7

 

14

 

76

Other, including tax impacts of adjustments

1

 

5

 

5

 

7

Adjusted net income (loss)

$ 48

 

$ 30

 

$ 60

 

$ 27

Average shares outstanding, diluted

28.4

 

28.2

 

28.4

 

27.9

Adjusted earnings (loss) per share

$ 1.69

 

$ 1.06

 

$ 2.11

 

$ 0.97

        

___________________________________________________________________________________

 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.