VAN BUREN TOWNSHIP, Mich., April 29, 2021 — Visteon Corporation (NASDAQ: VC) today announced first-quarter net sales of $746 million, representing a year-over-year increase of 14% excluding the impact of currency. Visteon’s sales performance represented a 14% growth-over-market compared to the production volumes of its customers.

Gross margin in the first quarter was $73 million, and net income attributable to Visteon was $16 million or $0.56 per diluted share. Adjusted EBITDA, a non-GAAP measure as defined below, was $64 million for the first quarter or 8.6% of sales, an increase of $31 million or 350 basis points compared to the prior year. Adjusted EBITDA margin benefited from higher volumes as well as cost improvements initiated throughout 2020, partially offset by incremental supply chain costs that impacted margins by approximately 190 basis points.

During the first quarter, the company won $1.8 billion in new business, including its first win for microZone™ display technology. MicroZone™ is the first display technology in the industry to offer premium optical performance without sacrificing reliability or lifespan, thereby providing OEMs a superior alternative to OLED displays. Also notable is the company’s continued SmartCore™ domain controller momentum with approximately $850 million total SmartCore™ wins in the first quarter.

The company launched six new products in the first quarter, with more than 50 total launches expected for the full year. Most first-quarter launches were for digital clusters, which are based on Visteon's industry-leading platform that enables quick market introduction of this technology across multiple OEMs. Highlights include a 12-inch digital cluster for Nissan, a multi-display digital cluster for Jiangling Motors in China, and a 10-inch digital display for Hyundai. 

Cash from operations for the first three months was $11 million and capital expenditures were $18 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, for the first three months of 2021 was positive $9 million, compared to a use of cash of $14 million for the same period in 2020. The company ended the first quarter with cash of $486 million and debt of $349 million, representing a net cash position of $137 million.

Conference Call and Presentation

Today, Thursday, April 29, 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: 1997539

(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 news release on Visteon’s first-quarter results will be available in the News section of the 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 1997539. 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 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 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 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 Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2021. 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.