VAN BUREN TOWNSHIP, Mich., Feb. 18, 2021 — Visteon Corporation (NASDAQ: VC) today announced fourth-quarter net sales of $787 million, representing a year-over-year increase of 5% excluding the impact of currency, while Visteon’s top customers' production decreased 2% year over year. Visteon’s sales performance represented a 7% growth over market compared to its top customers. 

Gross margin in the fourth quarter was $89 million, and net income attributable to Visteon was $18 million. Adjusted EBITDA, a non-GAAP measure as defined below, was $75 million for the fourth quarter of 2020 or 9.5% of sales. 

The company won $1.4 billion in new business during the fourth quarter, for a total of $4.6 billion in 2020. Visteon launched 11 new products in the fourth quarter, 55 in total for 2020, which contributed to the company’s continued growth over market. 

Visteon continued its momentum in battery management systems with an additional global OEM win, and also expanded its digital content in the two-wheeler market with a new customer for its digital cockpit technology. It also benefited from the industry move toward larger and more complex displays with a multi-display and integrated digital cluster win with a Japanese automaker

Cash from operations for the twelve months ended December 31, 2020 was $168 million and capital expenditures were $104 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, was $96 million for the full year, compared to $56 million in 2019. 

Visteon's full-year 2021 guidance projects sales in the range of $2.875 billion to $3.025 billion, adjusted EBITDA in the range of $230 million to $270 million, and adjusted free cash flow in the range of $35 million to $65 million. The 2021 sales guidance reflects current customer and supplier communication regarding the semiconductor shortages. 

Conference Call and Presentation

Today, Thursday, Feb. 18, 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: 866-411-5196 

Outside U.S./Canada: 970-297-2404

Conference ID: 5096046 

(Call approximately 15 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. 

A replay of the conference call will be available through the company’s website or by dialing

855-859-2056 (toll-free from the U.S. and Canada) or 404-537-3406 (international). The conference ID for the phone replay is 5096046. The phone replay will be available for one week following the conference call.

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Use of Non-GAAP Financial Information 

Because not all companies use identical calculations, adjusted gross margin, adjusted SG&A, 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 2021, the company is providing 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 coronavirus (COVID-19) pandemic on our financial condition and business operations including global supply chain disruptions, market downturns, reduced consumer demand and new government actions or restrictions;

• 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;

• 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 execute on our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated;

• 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; 

• 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, 2020, 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 Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020. New business wins and rewins 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.