AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Horizon Global Reports Financial Results for Third Quarter 2019

November 12, 2019

TROY, Mich.--(BUSINESS WIRE)--Nov 12, 2019--

Horizon Global Corporation (NYSE: HZN), one of the world’s leading manufacturers of branded towing and trailering equipment, today reported financial results for the third quarter of 2019.

“I am encouraged by the strength of our brands, the ongoing support of our customers, and the opportunity to return this proud company to the leadership position it deserves,” commented Terry Gohl, newly appointed President and Chief Executive Officer of Horizon Global. “Over the past six weeks, since being tapped to lead Horizon Global, I have toured our primary manufacturing operations in Mexico and Europe. I have met with our teams in each of these geographies and assessed our operating position and associated challenges. Based on this early assessment, we identified actions that we believe will accelerate improvements in quality and time-to-market, and which we expect to result in improved margins and cash flow in the coming quarters.”

Gohl continued, “We faced significant headwinds in our Americas operations during the third quarter, with operational and execution issues negatively impacting our ability to fill orders in the aftermarket, retail and industrial channels, resulting in lost sales, while the impact of tariffs and higher manufacturing costs impacted profitability, all while our Europe-Africa operations reported slightly higher sales and increased margins over the prior-year comparable period, with the increase in margin primarily due to a favorable commercial settlement of a potential product liability claim. There is no doubt that everyone around the globe is disappointed with our results, and there is an equal amount of passion to make certain we improve them.”

Gohl added, “With the sale of our Asia-Pacific business segment (“APAC”) and the resulting debt paydown, covenant relief, additional liquidity and annual debt service savings, we are able to focus our time, attention, energy and newly acquired talent on improving the operating profiles of both our Americas and Europe-Africa operations. Without the tireless efforts of the teams on both sides of the pond, we would not have this unique opportunity. On behalf of Horizon Global’s remaining 4,000 employees, I want to personally thank everyone involved.”

2019 Third Quarter Segment Results

Horizon Americas. Net sales decreased $19.3 million, or 16.7%, to $96.2 million. Net sales in the aftermarket, retail and industrial channels were $18.1 million lower than the prior-year comparable period, while e-commerce net sales were down $1.7 million. These decreases were partially offset by OE net sales, which increased $1.0 million. Gross profit decreased $10.5 million, primarily due to the decrease in net sales and unfavorable material input costs as a result of the impact of tariffs and higher freight costs, unfavorable manufacturing costs and higher scrap costs. Horizon Americas generated an operating loss of $2.2 million, representing a decrease of $9.5 million from the prior-year comparable period. Commensurately, Adjusted EBITDA (2) decreased to $0.6 million for the quarter, as compared to $14.2 million during the prior-year comparable period.

Horizon Europe-Africa. Net sales increased $3.1 million, or 4.0%, to $81.6 million due primarily to increased net sales in the Automotive OEM and OES channels. Europe-Africa net sales continued to be impacted by unfavorable foreign currency translation, while net sales on a constant currency (1) basis increased $7.0 million, or 8.9%. Gross profit increased $4.3 million, primarily due to a favorable expense recovery related to the settlement of a potential product liability claim. Operating profit for the quarter was $1.7 million, which represented a $33.1 million improvement over the prior-year comparable period. Results for the third quarter of 2018 included a goodwill impairment charge of $26.6 million. Adjusted EBITDA (2) was $0.7 million for the quarter, an increase of $0.8 million over the prior-year comparable period.

Discontinued Operations. On September 19, 2019, the Company completed the sale of APAC for $209.6 million in net cash proceeds after payment of debt and transaction costs associated with operations and the transaction. The Company classified APAC assets and liabilities as held-for-sale as of December 31, 2018, and classified APAC’s operating results and the gain on sale as discontinued operations.

Balance Sheet and Liquidity. Gross debt decreased $149.3 million to $239.2 million from the prior-year comparable period. Total liquidity, which includes borrowing availability under the ABL and cash on-hand, was $60.9 million, down $6.8 million as compared to the prior-year comparable period.

Summary

Gohl continued, “While our team has significant work ahead of us, we are confident in our ability to address what we see and whatever else might come forward. In a very short period of time, we have defined key areas where we can accelerate improvement, including those impacting customer service and satisfaction. We see significant opportunities for both revenue growth and cost improvement. We have deployed both internal and external resources to address the most critical and significant items faster and are recognizing targeted early results. The organization is being reshaped to better serve the market. Since joining, I have hired a Chief Operating Officer and a global purchasing lead and will continue hiring top talent throughout the organization at all levels until we are at full strength.”

In closing, Gohl stated, “Our focus and commitment is to provide innovative products with superior engineering to our customers on time, every time. We look forward to regaining our customers’ confidence and are optimistic they will again recognize Horizon Global and our market leading brands as their supplier of choice.”

Conference Call Details

Horizon Global will host a conference call regarding third quarter 2019 earnings on Tuesday, November 12, 2019 at 8:30 a.m. Eastern Time. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (866) 252-5200 and from outside the U.S. at (412) 317-6060. Please use the conference identification number 10136454.

The conference call will be webcast simultaneously and in its entirety through the Horizon Global website. An earnings presentation will also be available on the Horizon Global website at the time of the conference call. 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 10136454. The telephone replay will be available approximately two hours after the end of the call and continue through November 26, 2019.

About Horizon Global

Horizon Global is the #1 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 best-in-class 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: BULLDOG, Draw-Tite, Fulton, Reese, Tekonsha, and Westfalia. Horizon Global has approximately 4000 employees in 37 facilities across 15 countries.

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

Forward-Looking Statements

This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained herein 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 Company’s leverage; liabilities and restrictions imposed by the Company’s debt instruments; market demand; competitive factors; supply constraints; material and energy costs; 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; 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 our 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; the Company’s ability to meet its covenants in the agreements governing its debt; the Company’s ability to maintain compliance with the New York Stock Exchange’s continued listing standards; and other risks that are discussed in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. The risks described herein 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. We caution readers not to place undue reliance on such statements, which speak only as of the date hereof. 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 hereof or to reflect the occurrence of unanticipated events.

(1)

We evaluate growth in our operations on both an as reported basis 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 period revenue in local currency using the prior period’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. See Appendix I for reconciliation.

(2)

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 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.

Horizon Global Corporation

Condensed Consolidated Balance Sheets

(dollars in thousands)

 

 

September 30,
2019

 

December 31,
2018

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

16,360

 

 

$

27,650

 

Receivables, net of allowance for doubtful accounts of approximately $5.0 million and $4.8 million at September 30, 2019 and December 31, 2018, respectively

 

93,480

 

 

95,170

 

Inventories

 

141,150

 

 

152,200

 

Prepaid expenses and other current assets

 

9,480

 

 

8,270

 

Current assets held-for-sale

 

 

 

36,080

 

Total current assets

 

260,470

 

 

319,370

 

Property and equipment, net

 

78,670

 

 

86,500

 

Operating lease right-of-use assets

 

56,170

 

 

 

Goodwill

 

4,200

 

 

4,500

 

Other intangibles, net

 

60,350

 

 

69,400

 

Deferred income taxes

 

440

 

 

660

 

Non-current assets held-for-sale

 

 

 

34,790

 

Other assets

 

5,700

 

 

6,130

 

Total assets

 

$

466,000

 

 

$

521,350

 

Liabilities and Shareholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

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

 

$

24,270

 

 

$

13,860

 

Accounts payable

 

79,440

 

 

102,350

 

Short-term operating lease liabilities

 

9,850

 

 

 

Current liabilities held-for-sale

 

 

 

28,080

 

Accrued liabilities

 

53,020

 

 

58,520

 

Total current liabilities

 

166,580

 

 

202,810

 

Gross long-term debt

 

214,930

 

 

382,220

 

Unamortized debt issuance costs and discount

 

(34,200

)

 

(31,570

)

Long-term debt

 

180,730

 

 

350,650

 

Deferred income taxes

 

8,280

 

 

12,620

 

Long-term operating lease liabilities

 

50,890

 

 

 

Non-current liabilities held-for-sale

 

 

 

1,740

 

Other long-term liabilities

 

20,770

 

 

19,750

 

Total liabilities

 

427,250

 

 

587,570

 

Total Horizon Global shareholders' equity (deficit)

 

42,090

 

 

(63,720

)

Noncontrolling interest

 

(3,340

)

 

(2,500

)

Total shareholders' equity (deficit)

 

38,750

 

 

(66,220

)

Total liabilities and shareholders' equity

 

$

466,000

 

 

$

521,350

 

Horizon Global Corporation

Condensed Consolidated Statements of Operations

(Unaudited - dollars in thousands, except share and per share data)

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2019

 

2018

 

2019

 

2018

Net sales

 

$

177,850

 

 

$

194,030

 

 

$

548,170

 

 

$

576,250

 

Cost of sales

 

(149,560

)

 

(159,500

)

 

(460,010

)

 

(472,120

)

Gross profit

 

28,290

 

 

34,530

 

 

88,160

 

 

104,130

 

Selling, general and administrative expenses

 

(41,100

)

 

(37,680

)

 

(113,140

)

 

(134,210

)

Impairment of goodwill and intangible assets

 

 

 

(26,640

)

 

 

 

(125,770

)

Net gain (loss) on dispositions of property and equipment

 

50

 

 

(110

)

 

1,500

 

 

(520

)

Operating loss

 

(12,760

)

 

(29,900

)

 

(23,480

)

 

(156,370

)

Other expense, net

 

(1,640

)

 

(1,040

)

 

(6,610

)

 

(7,410

)

Interest expense

 

(24,120

)

 

(7,590

)

 

(50,270

)

 

(19,580

)

Loss from continuing operations before income tax

 

(38,520

)

 

(38,530

)

 

(80,360

)

 

(183,360

)

Income tax benefit

 

1,020

 

 

1,420

 

 

2,330

 

 

15,770

 

Net loss from continuing operations

 

(37,500

)

 

(37,110

)

 

(78,030

)

 

(167,590

)

Income from discontinued operations, net of tax

 

182,750

 

 

4,110

 

 

189,520

 

 

9,670

 

Net income (loss)

 

145,250

 

 

(33,000

)

 

111,490

 

 

(157,920

)

Less: Net loss attributable to noncontrolling interest

 

(260

)

 

(240

)

 

(840

)

 

(720

)

Net income (loss) attributable to Horizon Global

 

$

145,510

 

 

$

(32,760

)

 

$

112,330

 

 

$

(157,200

)

Net income (loss) per share attributable to Horizon Global:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(1.47

)

 

$

(1.47

)

 

$

(3.05

)

 

$

(6.67

)

Discontinued operations

 

$

7.21

 

 

$

0.16

 

 

$

7.50

 

 

$

0.39

 

Total

 

$

5.74

 

 

$

(1.31

)

 

$

4.45

 

 

$

(6.28

)

Diluted:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(1.47

)

 

$

(1.47

)

 

$

(3.05

)

 

$

(6.67

)

Discontinued operations

 

$

7.21

 

 

$

0.16

 

 

$

7.50

 

 

$

0.39

 

Total

 

$

5.74

 

 

$

(1.31

)

 

$

4.45

 

 

$

(6.28

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

25,329,492

 

 

25,101,847

 

 

25,267,310

 

 

25,028,072

 

Diluted

 

25,329,492

 

 

25,101,847

 

 

25,267,310

 

 

25,028,072

 

Horizon Global Corporation

Condensed Consolidated Statements of Cash Flows

(unaudited - dollars in thousands)

 

 

Nine months ended
September 30,

 

 

2019

 

2018

Cash Flows from Operating Activities:

 

 

 

 

Net income (loss)

 

$

111,490

 

 

$

(157,920

)

Less: Net income from discontinued operations

 

189,520

 

 

9,670

 

Net loss from continuing operations

 

(78,030

)

 

(167,590

)

 

 

 

 

 

Adjustments to reconcile net loss from continued operations to net cash used for operating activities:

 

 

 

 

Net (gain) loss on dispositions of property and equipment

 

(1,500

)

 

520

 

Depreciation

 

11,980

 

 

9,410

 

Amortization of intangible assets

 

4,800

 

 

5,640

 

Write off of operating lease assets

 

4,250

 

 

 

Impairment of goodwill and intangible assets

 

 

 

125,770

 

Amortization of original issuance discount and debt issuance costs

 

18,570

 

 

6,050

 

Deferred income taxes

 

(3,390

)

 

(3,370

)

Non-cash compensation expense

 

1,790

 

 

1,430

 

Paid-in-kind interest

 

7,620

 

 

 

Increase in receivables

 

(4,680

)

 

(31,950

)

Decrease in inventories

 

1,920

 

 

5,630

 

(Increase) decrease in prepaid expenses and other assets

 

(2,770

)

 

1,150

 

Decrease in accounts payable and accrued liabilities

 

(15,560

)

 

(27,450

)

Other, net

 

(10,800

)

 

220

 

Net cash used for operating activities for continuing operations

 

(65,800

)

 

(74,540

)

Cash Flows from Investing Activities:

 

 

 

 

Capital expenditures

 

(8,460

)

 

(9,660

)

Net proceeds from sale of business

 

214,570

 

 

 

Net proceeds from disposition of property and equipment

 

1,470

 

 

(280

)

Net cash provided by (used for) investing activities for continuing operations

 

207,580

 

 

(9,940

)

Cash Flows from Financing Activities:

 

 

 

 

Proceeds from borrowings on credit facilities

 

13,780

 

 

12,550

 

Repayments of borrowings on credit facilities

 

(6,520

)

 

(14,390

)

Proceeds from Second Lien Term Loan, net of issuance costs

 

35,520

 

 

45,430

 

Repayments of borrowings on First Lien Term Loan, inclusive of transaction costs

 

(173,430

)

 

(6,490

)

Proceeds from ABL Revolving Debt, net of issuance costs

 

68,790

 

 

72,430

 

Repayments of borrowings on ABL Revolving Debt

 

(112,510

)

 

(34,830

)

Proceeds from issuance of Series A Preferred Stock

 

5,340

 

 

 

Proceeds from issuance of Warrants

 

5,380

 

 

 

Other, net

 

(10

)

 

(300

)

Net cash (used for) provided by financing activities for continuing operations

 

(163,660

)

 

74,400

 

Discontinued Operations:

 

 

 

 

Net cash provided by discontinued operating activities

 

11,430

 

 

8,500

 

Net cash used for discontinued investing activities

 

(1,120

)

 

(720

)

Net cash provided by (used for) discontinued financing activities

 

 

 

 

Net cash provided by discontinued operations

 

10,310

 

 

7,780

 

Effect of exchange rate changes on cash

 

280

 

 

40

 

Cash and Cash Equivalents:

 

 

 

 

Decrease for the period

 

(11,290

)

 

(2,260

)

At beginning of period

 

27,650

 

 

29,570

 

At end of period

 

$

16,360

 

 

$

27,310

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest

 

$

19,730

 

 

$

13,430

 

Cash paid for taxes

 

$

480

 

$

2,170

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. 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 income (loss) to measure stand-alone segment performance.

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

The following table summarizes Adjusted EBITDA for our operating segments for the three and nine months ended September 30, 2019 (“3Q19”) and 2018 (“3Q18”):

 

 

Three months ended
September 30, 2019

 

Three months ended
September 30, 2018

 

Variance

 

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Consolidated

 

 

(dollars in thousands)

 

(dollars in thousands)

 

 

Net income attributable to Horizon Global

 

 

 

 

 

 

 

$

145,510

 

 

 

 

 

 

 

 

$

(32,760

)

 

$

178,270

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

(260

)

 

 

 

 

 

 

 

(240

)

 

(20

)

Net income

 

 

 

 

 

 

 

145,250

 

 

 

 

 

 

 

 

(33,000

)

 

178,250

 

Interest expense

 

 

 

 

 

 

 

24,120

 

 

 

 

 

 

 

 

7,590

 

 

16,530

 

Income tax benefit

 

 

 

 

 

 

 

(1,020

)

 

 

 

 

 

 

 

(1,420

)

 

400

 

Depreciation and amortization

 

 

 

 

 

 

 

6,250

 

 

 

 

 

 

 

 

5,090

 

 

1,160

 

EBITDA

 

(940

)

 

1,380

 

 

174,160

 

 

174,600

 

 

8,030

 

 

(31,560

)

 

1,790

 

 

(21,740

)

 

196,340

 

Net loss attributable to noncontrolling interest

 

 

 

260

 

 

 

 

260

 

 

 

 

230

 

 

 

 

230

 

 

30

 

Income from discontinued operations, net of tax

 

 

 

 

 

(182,750

)

 

(182,750

)

 

 

 

 

 

(4,110

)

 

(4,110

)

 

(178,640

)

Severance

 

 

 

 

 

1,620

 

 

1,620

 

 

660

 

 

 

 

 

 

660

 

 

960

 

Restructuring, relocation and related business disruption costs

 

(200

)

 

 

 

4,250

 

 

4,050

 

 

4,220

 

 

1,370

 

 

 

 

5,590

 

 

(1,540

)

Impairment of goodwill and other intangibles

 

 

 

 

 

 

 

 

 

 

 

26,640

 

 

 

 

26,640

 

 

(26,640

)

Non-cash stock compensation

 

 

 

 

 

850

 

 

850

 

 

 

 

 

 

230

 

 

230

 

 

620

 

Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

70

 

 

1,130

 

 

1,200

 

 

(1,200

)

(Gain) loss on business divestitures and other assets

 

320

 

 

 

 

(1,320

)

 

(1,000

)

 

650

 

 

 

 

 

 

650

 

 

(1,650

)

Product liability and litigation claims

 

820

 

 

(4,270

)

 

 

 

(3,450

)

 

 

 

 

 

 

 

 

 

(3,450

)

Debt issuance costs

 

 

 

 

 

530

 

 

530

 

 

 

 

 

 

 

 

 

 

530

 

Unrealized remeasurement costs

 

240

 

 

650

 

 

300

 

 

1,190

 

 

110

 

 

530

 

 

(110

)

 

530

 

 

660

 

Other (income) expense, net

 

310

 

 

2,720

 

 

(1,980

)

 

1,050

 

 

570

 

 

2,650

 

 

(3,290

)

 

(70

)

 

1,120

 

Adjusted EBITDA

 

$

550

 

 

$

740

 

 

$

(4,340

)

 

$

(3,050

)

 

$

14,240

 

 

$

(70

)

 

$

(4,360

)

 

$

9,810

 

 

$

(12,860

)

 

 

 

Nine months ended
September 30, 2019

 

Nine months ended
September 30, 2018

 

Variance

 

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Horizon Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Consolidated

 

 

(dollars in thousands)

 

(dollars in thousands)

 

 

Net income attributable to Horizon Global

 

 

 

 

 

 

 

$

112,330

 

 

 

 

 

 

 

 

$

(157,200

)

 

$

269,530

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

(840

)

 

 

 

 

 

 

 

(720

)

 

(120

)

Net income

 

 

 

 

 

 

 

111,490

 

 

 

 

 

 

 

 

(157,920

)

 

269,410

 

Interest expense

 

 

 

 

 

 

 

50,270

 

 

 

 

 

 

 

 

19,580

 

 

30,690

 

Income tax benefit

 

 

 

 

 

 

 

(2,330

)

 

 

 

 

 

 

 

(15,770

)

 

13,440

 

Depreciation and amortization

 

 

 

 

 

 

 

16,790

 

 

 

 

 

 

 

 

15,070

 

 

1,720

 

EBITDA

 

10,100

 

 

(3,770

)

 

169,890

 

 

176,220

 

 

7,260

 

 

(132,630

)

 

(13,670

)

 

(139,040

)

 

315,260

 

Net loss attributable to noncontrolling interest

 

 

 

840

 

 

 

 

840

 

 

 

 

720

 

 

 

 

720

 

 

120

 

Income from discontinued operations, net of tax

 

 

 

 

 

(189,520

)

 

(189,520

)

 

 

 

 

 

(9,670

)

 

(9,670

)

 

(179,850

)

Severance

 

(200

)

 

10

 

 

1,620

 

 

1,430

 

 

5,010

 

 

1,560

 

 

2,750

 

 

9,320

 

 

(7,890

)

Restructuring, relocation and related business disruption costs

 

1,110

 

 

(1,410

)

 

4,250

 

 

3,950

 

 

11,830

 

 

2,820

 

 

 

 

14,650

 

 

(10,700

)

Impairment of goodwill and other intangibles

 

 

 

 

 

 

 

 

 

 

 

125,770

 

 

 

 

125,770

 

 

(125,770

)

Non-cash stock compensation

 

 

 

 

 

1,820

 

 

1,820

 

 

 

 

 

 

1,440

 

 

1,440

 

 

380

 

Acquisition and integration costs

 

 

 

 

 

 

 

 

 

 

 

1,390

 

 

16,130

 

 

17,520

 

 

(17,520

)

(Gain) loss on business divestitures and other assets

 

1,280

 

 

3,630

 

 

 

 

4,910

 

 

1,490

 

 

 

 

 

 

1,490

 

 

3,420

 

Board transition support

 

 

 

 

 

1,450

 

 

1,450

 

 

 

 

 

 

 

 

 

 

1,450

 

Product liability and litigation claims

 

820

 

 

50

 

 

 

 

870

 

 

 

 

 

 

 

 

 

 

870

 

Debt issuance costs

 

 

 

 

 

2,660

 

 

2,660

 

 

 

 

 

 

 

 

 

 

2,660

 

Unrealized remeasurement costs

 

160

 

 

1,210

 

 

440

 

 

1,810

 

 

110

 

 

750

 

 

200

 

 

1,060

 

 

750

 

Other (income) expense, net

 

730

 

 

8,140

 

 

(7,120

)

 

1,750

 

 

2,160

 

 

8,310

 

 

(10,710

)

 

(240

)

 

1,990

 

Adjusted EBITDA

 

$

14,000

 

 

$

8,700

 

 

$

(14,510

)

 

$

8,190

 

 

$

27,860

 

 

$

8,690

 

 

$

(13,530

)

 

$

23,020

 

 

$

(14,830

)

 

Appendix I

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, 2019

 

Nine months ended
September 30, 2019

 

 

Horizon
Americas

 

Horizon
Europe-Africa

 

 

Consolidated

 

Horizon
Americas

 

Horizon
Europe-Africa

 

 

Consolidated

Revenue growth as reported

 

(16.7

)%

 

4.0

%

 

 

(8.3

)%

 

(6.0

)%

 

(3.5

)%

 

 

(4.9

)%

Less: currency impact

 

%

 

(4.9

)%

 

 

(2.0

)%

 

(0.2

)%

 

(6.4

)%

 

 

(3.0

)%

Revenue growth at constant currency

 

(16.7

)%

 

8.9

%

 

 

(6.3

)%

 

(5.8

)%

 

2.9

%

 

 

(1.9

)% 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112005560/en/

CONTACT: Jeff Tryka, CFA

Investor Relations, Lambert & Co.

(616) 295-2509

jtryka@horizonglobal.com

KEYWORD: MICHIGAN UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: OFF-ROAD TRUCKS & SUVS AUTOMOTIVE MANUFACTURING MANUFACTURING AFTERMARKET AUTOMOTIVE

SOURCE: Horizon Global Corporation

Copyright Business Wire 2019.

PUB: 11/12/2019 06:40 AM/DISC: 11/12/2019 06:40 AM

http://www.businesswire.com/news/home/20191112005560/en