e8vkza
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A
(Amendment No. 3)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 1, 2006
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
|
|
|
|
|
Delaware
|
|
1-15827
|
|
38-3519512 |
|
|
|
|
|
(State or other jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.) |
|
|
|
|
|
One Village Center Drive, Van Buren Township, Michigan
|
|
48111 |
|
|
|
(Address of principal executive offices)
|
|
(Zip Code) |
Registrants telephone number, including area code (800)-VISTEON
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
- 2 -
TABLE OF CONTENTS
EXPLANATORY NOTE
This Amendment No. 3 to the Current Report on Form 8-K/A amends the Current Report on Form 8-K
filed by Visteon Corporation (the Company) on January 11, 2006, as amended by Amendment No. 1 to
the Current Report on Form 8-K/A filed on February 10, 2006 and Amendment No. 2 to the Current
Report on Form 8-K/A filed on May 2, 2006 (the Original Forms 8-K) to provide updated disclosures
regarding the Companys three-year restructuring and improvement plan as described in the Original
Forms 8-K. This Amendment No. 3 also furnishes information regarding the Companys financial
results for the second quarter of 2006.
SECTION 2 FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
On August 1, 2006, the Company issued a press release regarding its financial results for the
second quarter and first half of 2006. A copy of the press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.
The information contained in Exhibit 99.1 shall not be deemed filed for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a filing.
Item 2.05. Costs Associated with Exit or Disposal Activities.
As discussed in the Original Forms 8-K, the Company previously announced the commencement of a
three-year improvement plan that involves the restructuring of up to 23 underperforming and/or
non-strategic plants.
During the second quarter of 2006 the Company recorded $12 million of severance and other
restructuring costs, which will be settled in cash, and an additional $22 million of non-cash asset
impairments related to this three-year improvement plan.
SECTION 7 REGULATION FD
Item 7.01. Regulation FD Disclosure.
See Item 2.02. Results of Operations and Financial Condition above.
- 3 -
SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
|
|
|
Exhibit No. |
|
Description |
99.1
|
|
Press release dated August 1, 2006. |
- 4 -
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
|
|
|
VISTEON CORPORATION |
|
|
|
|
|
|
|
|
|
Date: August 1, 2006
|
|
By:
|
|
/s/ James F. Palmer |
|
|
|
|
|
|
|
|
|
|
|
|
|
James F. Palmer
|
|
|
|
|
|
|
Executive Vice President
|
|
|
|
|
|
|
and Chief Financial Officer |
|
|
- 5 -
EXHIBIT INDEX
|
|
|
|
|
Exhibit No. |
|
Description |
|
Page |
99.1
|
|
Press release dated August 1, 2006. |
|
|
exv99w1
Exhibit 99.1
NEWS RELEASE
Visteon Announces Second Quarter 2006 Results and Raises Full Year Guidance
Highlights
|
|
|
Second quarter 2006 net income of $50 million |
|
|
|
|
Positive free cash flow |
|
|
|
|
$800 million secured term loan financing completed |
|
|
|
|
Significant new business wins |
|
|
|
|
Full year 2006 EBIT-R guidance raised |
VAN BUREN TOWNSHIP, Mich., Aug. 1, 2006 Visteon Corporation (NYSE:VC) today announced second
quarter results demonstrating continued progress toward achieving its three-year improvement plan.
For the second quarter 2006, Visteon reported net income of $50 million or $0.39 per share compared
to a loss of $1.2 billion or $9.85 per share in the second quarter 2005.
We are pleased with our strong second quarter results and our momentum in implementing our
three-year plan, said Michael F. Johnston, chairman and chief executive officer. Our operating
results were better than both the second quarter of 2005 and the first quarter of this year, and we
continue to make solid progress in our restructuring efforts, in improving our base operations and
in growing our global business.
Second Quarter 2006 Results
For the second quarter 2006, product sales were $2.86 billion and services sales were $138 million.
Sales for the same period a year ago totaled $5.0 billion. Product sales were lower by $2.14
billion due to the Oct. 1, 2005, transaction with Ford that transferred 23 Visteon facilities to
Automotive Components Holdings (ACH), LLC, a Ford-managed business entity.
Visteons net income of $50 million, or $0.39 per share, for the current quarter included $22
million of non-cash asset impairments related to the companys restructuring actions and an
extraordinary gain of $8 million associated with the acquisition of a lighting facility in Mexico.
Also as previously indicated, Visteon recognized a $49 million benefit in the quarter related to
the relief of post-employment benefits for Visteon salaried employees associated with two ACH
manufacturing facilities transferred to Ford Motor Company. Income tax expense of $17 million in
the quarter included a $14 million benefit from the restoration of deferred tax assets related to
the companys Brazilian operations.
EBIT-R, as defined, was $119 million for the second quarter 2006, an increase of $47 million from
the $72 million reported in the first quarter 2006. EBIT-R for the second quarter 2005 was a loss
of
$33 million.
Half Year Results
For the first half 2006, product sales were $5.7 billion and services sales were $283 million.
More than half of the companys product sales were generated from customers other than Ford,
demonstrating
|
|
|
|
|
|
|
|
Contact(s):
|
Media Inquiries
|
|
Analyst Inquiries
|
|
Visteon Corporation |
|
|
Kimberley Goode
|
|
Derek Fiebig
|
|
One Village Center Drive |
|
|
734-710-5000
|
|
734-710-5800
|
|
Van Buren Twp., Mich., 48111 |
|
|
kgoode@visteon.com
|
|
dfiebig@visteon.com |
|
|
continued progress in diversifying Visteons customer base. Sales for the same
period a year ago totaled $10.0 billion, of which non-Ford sales were 35 percent. Product sales
were lower by $4.3 billion due to the sale of certain plants in North America pursuant to the ACH
transactions completed in October 2005.
Visteons net income of $53 million, or $0.41 per share, for the first six months reflects improved
operating performance and the financial benefit of the ACH transactions with Ford. The half year
results include $22 million of non-cash asset impairments related to the companys restructuring
actions and an extraordinary gain of $8 million associated with the acquisition of a lighting
facility in Mexico. Also as previously indicated, Visteon recognized a cumulative benefit of $72
million in the first half of 2006 related to the relief of post-employment benefits for Visteon
salaried employees associated with two ACH manufacturing facilities transferred to Ford.
For the first half 2005, Visteon reported a net loss of $1.401 billion or $11.15 per share. These
results included $1.176 billion, or $9.36 per share, of non-cash asset impairments.
EBIT-R for the first half 2006 totaled $191 million, increasing $329 million from a first half 2005
EBIT-R loss of $138 million.
Free Cash Flow and Financing Activities
Free cash flow of $10 million for the quarter was an improvement of $127 million over the first
quarter 2006. Free cash flow was lower than the second quarter 2005 in which Visteon received the
benefit of accelerated payment terms from Ford as part of the funding agreement.
During the second quarter 2006, Visteon closed on a seven-year $800 million secured term loan.
Proceeds from the loan were used to repay amounts outstanding under the companys existing credit
facilities that were scheduled to expire in June 2007, including a $350 million 18-month term loan
and a $241 million delayed draw term loan.
In connection with this financing, Visteon repaid $50 million of borrowings under the companys
$772 million multi-year secured revolving credit facility and reduced the amount available under
that facility to $500 million. Visteon expects to eliminate the multi-year revolver upon completion
of new U.S. and European five-year revolving credit facilities. The company has received
commitments for these facilities totaling $700 million from JPMorgan Chase Bank, N.A. and Citigroup
Global Markets Inc., and expects to complete these transactions in the third quarter, subject to
market conditions.
Proceeds were also used to repurchase $150 million of the companys 8.25 percent notes that are due
in 2010. This repurchase resulted in a gain of $8 million in the second quarter which was offset
by expense associated with debt issuance costs related to the extinguished credit facilities.
As of June 30, 2006, Visteon had $836 million of cash and total debt of $2.0 billion and was well
within the limits of its financial covenants in its existing credit facilities.
Effectively managing the drivers of free cash flow is a top priority for everyone within the
Visteon organization, said James F. Palmer, executive vice president and chief financial officer.
We are taking steps at every level to continue strengthening our cash flow position, while
appropriately investing in the business for the future.
2
New Business Wins
The company continues to win new business from a diverse range of customers across each of the
companys key product lines. Significant wins in North America include DaimlerChrysler programs in
Climate and Lighting and Honda programs in Interiors. Additionally during this period, Visteon was
awarded Climate business in Asia from Hyundai and in Europe from Ford.
Our business wins speak to the strength of our focused product portfolio and our ability to
deliver the innovation and quality our customers expect, said Donald J. Stebbins, president and
chief operating officer. These wins demonstrate that we are executing on every aspect of our
three-year plan, including growing the business through product innovation, customer
diversification, profitable sales growth and leveraging technology for global competitive
advantage.
Outlook
Third quarter 2006 is expected to be challenging, reflecting seasonally low production volumes
globally. Visteon is raising its estimate for 2006 full year EBIT-R to a range of $170 million to $200
million. Additionally, the company still expects to generate about $50 million of free cash flow
and expects 2006 full-year product sales of approximately $11.0 billion.
Our momentum and the actions we are taking to address the business dynamics we are facing give us
confidence that we will continue to make progress in achieving and where possible, accelerating our
three-year plan, Johnston added. We are increasing our outlook for earnings, reaffirming our
outlook for positive free cash flow and reiterating our expectation for continued year-over-year
improvement during the three-year improvement plan.
Visteon Corporation is a leading global automotive supplier that designs, engineers and
manufactures innovative climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services to aftermarket customers. With
corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the
company has more than 170 facilities in 24 countries and employs approximately 47,000 people.
Forward-looking Information
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. 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 general economic conditions, including changes in interests rates and fuel
prices; the automotive vehicle
production volumes and schedules of our customers, and in particular Fords vehicle production
volumes; our ability to satisfy our future capital and liquidity requirements and comply with the
terms of our existing credit agreements and indentures; the financial distress of our suppliers, or
other significant suppliers to our customers, and possible disruptions in the supply of commodities
to us or our customers; our ability to implement, and realize the anticipated benefits of,
restructuring and other cost-reduction initiatives and our successful execution of internal
performance plans and other productivity efforts; the timing and expenses related to
restructurings, employee reductions, acquisitions or dispositions; increases in raw material and
energy costs and our ability to offset or recover these costs; the effect of pension and other
post-employment benefit obligations; increases in our warranty, product
3
liability and recall costs;
the outcome of legal or regulatory proceedings to which we are or may become a party; as well as
those factors identified in our filings with the SEC (including our Annual Report on Form 10-K for
the fiscal year ended December 31, 2005). We assume no obligation to update these forward-looking
statements.
Use of Non-GAAP Financial Information
This press release contains information about Visteons financial results which is not presented in
accordance with accounting principles generally accepted in the United States (GAAP). Such
non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of
this press release. The provision of these comparable GAAP financial measures for full-year 2006 is
not intended to indicate that Visteon 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.
4
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions, Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
2,863 |
|
|
$ |
5,003 |
|
|
$ |
5,679 |
|
|
$ |
9,990 |
|
Services |
|
|
138 |
|
|
|
|
|
|
|
283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,001 |
|
|
|
5,003 |
|
|
|
5,962 |
|
|
|
9,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
2,553 |
|
|
|
4,760 |
|
|
|
5,126 |
|
|
|
9,600 |
|
Services |
|
|
137 |
|
|
|
|
|
|
|
281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,690 |
|
|
|
4,760 |
|
|
|
5,407 |
|
|
|
9,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
311 |
|
|
|
243 |
|
|
|
555 |
|
|
|
390 |
|
|
Selling, general and administrative expenses |
|
|
194 |
|
|
|
274 |
|
|
|
362 |
|
|
|
524 |
|
Asset impairments |
|
|
22 |
|
|
|
1,176 |
|
|
|
22 |
|
|
|
1,176 |
|
Restructuring expenses |
|
|
12 |
|
|
|
|
|
|
|
21 |
|
|
|
7 |
|
Reimbursement from Escrow Account |
|
|
12 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
95 |
|
|
|
(1,207 |
) |
|
|
171 |
|
|
|
(1,317 |
) |
|
Interest expense, net |
|
|
38 |
|
|
|
31 |
|
|
|
77 |
|
|
|
60 |
|
Equity in net income of non-consolidated affiliates |
|
|
12 |
|
|
|
8 |
|
|
|
19 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes, minority
interests, change in accounting and extraordinary item |
|
|
69 |
|
|
|
(1,230 |
) |
|
|
113 |
|
|
|
(1,363 |
) |
|
Provision (benefit) for income taxes |
|
|
17 |
|
|
|
(2 |
) |
|
|
47 |
|
|
|
20 |
|
Minority interests in consolidated subsidiaries |
|
|
10 |
|
|
|
10 |
|
|
|
17 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before change in accounting
and extraordinary item |
|
|
42 |
|
|
|
(1,238 |
) |
|
|
49 |
|
|
|
(1,401 |
) |
Cumulative effect of change in accounting, net of tax |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before extraordinary item |
|
|
42 |
|
|
|
(1,238 |
) |
|
|
45 |
|
|
|
(1,401 |
) |
Extraordinary item, net of tax |
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
50 |
|
|
$ |
(1,238 |
) |
|
$ |
53 |
|
|
$ |
(1,401 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share before
change in accounting and extraordinary item |
|
$ |
0.33 |
|
|
$ |
(9.85 |
) |
|
$ |
0.38 |
|
|
$ |
(11.15 |
) |
|
Cumulative effect of change in accounting, net of tax |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share
before extraordinary item |
|
|
0.33 |
|
|
|
(9.85 |
) |
|
|
0.35 |
|
|
|
(11.15 |
) |
Extraordinary item, net of tax |
|
|
0.06 |
|
|
|
|
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share |
|
$ |
0.39 |
|
|
$ |
(9.85 |
) |
|
$ |
0.41 |
|
|
$ |
(11.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
127.8 |
|
|
|
125.7 |
|
|
|
127.5 |
|
|
|
125.6 |
|
Diluted |
|
|
127.9 |
|
|
|
125.7 |
|
|
|
127.6 |
|
|
|
125.6 |
|
Page 1
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
June 30 |
|
|
December 31 |
|
|
|
2006 |
|
|
2005 |
|
ASSETS |
Cash and equivalents |
|
$ |
836 |
|
|
$ |
865 |
|
Accounts receivable, net
|
|
|
|
|
|
|
|
|
Ford Motor Company |
|
|
616 |
|
|
|
618 |
|
Non-Ford Motor Company |
|
|
1,208 |
|
|
|
1,120 |
|
Inventories, net |
|
|
570 |
|
|
|
537 |
|
Other current assets |
|
|
238 |
|
|
|
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
3,468 |
|
|
|
3,345 |
|
|
|
|
|
|
|
|
|
|
Equity in net assets of non-consolidated affiliates |
|
|
210 |
|
|
|
226 |
|
Property and equipment, net |
|
|
3,029 |
|
|
|
2,973 |
|
Other non-current assets |
|
|
190 |
|
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,897 |
|
|
$ |
6,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY / (DEFICIT) |
|
|
|
|
|
|
|
|
|
Short-term debt, including current portion of long-term debt |
|
$ |
131 |
|
|
$ |
485 |
|
Accounts payable |
|
|
1,710 |
|
|
|
1,803 |
|
Employee benefits, including pensions |
|
|
265 |
|
|
|
233 |
|
Other current liabilities |
|
|
437 |
|
|
|
438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
2,543 |
|
|
|
2,959 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
1,910 |
|
|
|
1,509 |
|
Postretirement benefits other than pensions |
|
|
699 |
|
|
|
724 |
|
Postretirement benefits payable to Ford Motor Company |
|
|
127 |
|
|
|
154 |
|
Employee benefits, including pensions |
|
|
653 |
|
|
|
647 |
|
Deferred income taxes |
|
|
212 |
|
|
|
175 |
|
Other non-current liabilities |
|
|
447 |
|
|
|
382 |
|
Minority interests in consolidated subsidiaries |
|
|
249 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
Shareholders equity / deficit
|
|
|
|
|
|
|
|
|
Preferred stock (par value $1.00, 50 million shares authorized, none outstanding) |
|
|
|
|
|
|
|
|
Common stock (par value $1.00, 500 million shares authorized, 131 million shares
issued, 128 million and 129 million shares outstanding, respectively) |
|
|
131 |
|
|
|
131 |
|
Stock warrants |
|
|
127 |
|
|
|
127 |
|
Additional paid-in capital |
|
|
3,397 |
|
|
|
3,396 |
|
Accumulated deficit |
|
|
(3,387 |
) |
|
|
(3,440 |
) |
Accumulated other comprehensive loss |
|
|
(181 |
) |
|
|
(234 |
) |
Other |
|
|
(30 |
) |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity / (deficit) |
|
|
57 |
|
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity / (deficit) |
|
$ |
6,897 |
|
|
$ |
6,736 |
|
|
|
|
|
|
|
|
Page 2
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
|
June 30 |
|
|
June 30 |
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
Cash provided from (used by) operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
50 |
|
|
$ |
(1,238 |
) |
|
$ |
53 |
|
|
$ |
(1,401 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income (loss) to net
cash provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
106 |
|
|
|
180 |
|
|
|
208 |
|
|
|
356 |
|
Postretirement benefit relief |
|
|
(49 |
) |
|
|
|
|
|
|
(72 |
) |
|
|
|
|
Asset impairments |
|
|
22 |
|
|
|
1,176 |
|
|
|
22 |
|
|
|
1,176 |
|
Extraordinary item, net of tax |
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
Equity in net income of non-consolidated affiliates,
net of dividends remitted |
|
|
(4 |
) |
|
|
13 |
|
|
|
3 |
|
|
|
16 |
|
Other non-cash items |
|
|
(4 |
) |
|
|
1 |
|
|
|
(4 |
) |
|
|
23 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(13 |
) |
|
|
71 |
|
|
|
(11 |
) |
|
|
48 |
|
Inventories |
|
|
(20 |
) |
|
|
41 |
|
|
|
(19 |
) |
|
|
(17 |
) |
Accounts payable |
|
|
(74 |
) |
|
|
(32 |
) |
|
|
(173 |
) |
|
|
108 |
|
Other assets and liabilities |
|
|
102 |
|
|
|
115 |
|
|
|
77 |
|
|
|
196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from operating activities |
|
|
108 |
|
|
|
327 |
|
|
|
76 |
|
|
|
505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided from (used by) investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(98 |
) |
|
|
(150 |
) |
|
|
(183 |
) |
|
|
(277 |
) |
Proceeds from sales of assets |
|
|
4 |
|
|
|
16 |
|
|
|
11 |
|
|
|
35 |
|
Other investments |
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used by investing activities |
|
|
(94 |
) |
|
|
(141 |
) |
|
|
(172 |
) |
|
|
(258 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided from (used by) financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt, net of issuance costs |
|
|
805 |
|
|
|
1 |
|
|
|
1,176 |
|
|
|
34 |
|
Principal payments on debt |
|
|
(706 |
) |
|
|
(122 |
) |
|
|
(983 |
) |
|
|
(135 |
) |
Repurchase of unsecured debt securities |
|
|
(141 |
) |
|
|
|
|
|
|
(141 |
) |
|
|
|
|
Other, including book overdrafts |
|
|
(30 |
) |
|
|
(37 |
) |
|
|
(9 |
) |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used by) provided from financing activities |
|
|
(72 |
) |
|
|
(158 |
) |
|
|
43 |
|
|
|
(155 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
13 |
|
|
|
(14 |
) |
|
|
24 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and equivalents |
|
|
(45 |
) |
|
|
14 |
|
|
|
(29 |
) |
|
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at beginning of period |
|
|
881 |
|
|
|
809 |
|
|
|
865 |
|
|
|
752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
|
$ |
836 |
|
|
$ |
823 |
|
|
$ |
836 |
|
|
$ |
823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 3
VISTEON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in Millions)
(Unaudited)
In this press release the Company has provided information regarding non-GAAP financial
measures of EBIT-R and free cash flow. Such non-GAAP financial measures are reconciled to
their closest US GAAP financial measure below.
EBIT-R: EBIT-R represents net income (loss) before net interest expense, provision for
income taxes and extraordinary item and excludes impairment of long-lived assets and net
unreimbursed restructuring charges. Management believes EBIT-R 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 Companys continuing operating activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
FY 2006 |
|
|
|
June 30 |
|
|
June 30 |
|
|
Estimate |
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
50 |
|
|
$ |
(1,238 |
) |
|
$ |
53 |
|
|
$ |
(1,401 |
) |
|
$ |
(109 |
) |
|
|
|
|
|
$ |
(79 |
) |
|
Interest expense, net |
|
|
38 |
|
|
|
31 |
|
|
|
77 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
155 |
|
|
Provision (benefit) for income taxes |
|
|
17 |
|
|
|
(2 |
) |
|
|
47 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
110 |
|
|
Asset impairments |
|
|
22 |
|
|
|
1,176 |
|
|
|
22 |
|
|
|
1,176 |
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
Extraordinary item, net of tax |
|
|
(8 |
) |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
Net unreimbursed restructuring expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT-R |
|
$ |
119 |
|
|
$ |
(33 |
) |
|
$ |
191 |
|
|
$ |
(138 |
) |
|
$ |
170 |
|
|
|
|
|
|
$ |
200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT-R is not a recognized term under U.S. GAAP and does not purport to be an alternative to net
income (loss) as an indicator of operating performance or to cash flows from operating activities
as a measure of liquidity. Because not all companies use identical calculations, this presentation
of EBIT-R may not be comparable to other similarly titled measures of other companies.
Additionally, EBIT-R is not intended to be a measure of free cash flow for managements
discretionary use, as it does not consider certain cash requirements such as interest payments, tax
payments and debt service requirements.
Free Cash Flow: Free cash flow represents cash flow from operating activities less capital
expenditures. Management believes that free cash flow is useful in analyzing the Companys ability
to service and repay its debt and it uses the measure for planning and forecasting future periods,
as well as in compensation decisions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Six-Months Ended |
|
|
2006 |
|
|
|
June 30 |
|
|
June 30 |
|
|
Estimate |
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
|
|
|
|
Cash provided from operating activities |
|
$ |
108 |
|
|
$ |
327 |
|
|
$ |
76 |
|
|
$ |
505 |
|
|
$ |
450 |
|
|
Capital expenditures |
|
|
(98 |
) |
|
|
(150 |
) |
|
|
(183 |
) |
|
|
(277 |
) |
|
|
(400 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
10 |
|
|
$ |
177 |
|
|
$ |
(107 |
) |
|
$ |
228 |
|
|
$ |
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is not a recognized term under U.S. GAAP and does not reflect cash used to service
debt and does not reflect funds available for investment or other discretionary uses.
Page 4