e8vkza
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A
(Amendment No. 5)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 16, 2007
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. 5 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, Amendment No. 2 to the Current Report
on Form 8-K/A filed on May 2, 2006, Amendment No. 3 to the Current Report on Form 8-K/A filed on
August 1, 2006 and Amendment No. 4 to the Current Report on Form 8-K/A filed on October 31, 2006
(the Original Forms 8-K) to provide updated disclosures regarding the Companys multi-year
restructuring and improvement plan as described in the Original Forms 8-K. This Amendment No. 5
also furnishes information regarding the Companys financial results for fourth quarter and
full-year 2006.
SECTION 2 FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
On February 16, 2007, the Company issued a press release regarding its financial results for
fourth quarter and full-year 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
multi-year improvement plan that involves the restructuring of a number of underperforming and/or
non-strategic plants. Updates regarding actions taken in connection with such improvement plan
will be provided in our periodic reports filed with the Securities and Exchange Commission.
-3-
SECTION 7 REGULATION FD
Item 7.01. Regulation FD Disclosure.
See Item 2.02. Results of Operations and Financial Condition above.
SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01. Financial Statements and Exhibits.
|
|
|
Exhibit No. |
|
Description |
99.1
|
|
Press release dated February 16, 2007. |
-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: February 16, 2007 |
By: |
/s/ William G. Quigley III
|
|
|
|
William G. Quigley III |
|
|
|
Vice President, Corporate Controller
and Chief Accounting Officer |
|
-5-
EXHIBIT INDEX
|
|
|
|
|
Exhibit No. |
|
Description |
|
Page |
99.1
|
|
Press release dated February 16, 2007.
|
|
|
exv99w1
Exhibit 99.1
NEWS RELEASE
Visteon announces fourth quarter and full year 2006 results
2006 Highlights
|
|
|
Net loss narrows, positive full-year EBIT-R |
|
|
|
|
Customer diversification continues |
|
|
|
|
$1 billion in new business wins |
|
|
|
|
Executing restructuring plan; 11 actions completed |
|
|
|
|
Took additional financing actions; year-end cash balance of approximately $1 billion |
VAN BUREN TOWNSHIP, Mich., Feb. 16, 2007 Visteon Corporation (NYSE:VC) today announced fourth
quarter and full year results for 2006. For fourth quarter 2006, Visteon reported a net loss of
$39 million, or $0.30 per share, on total sales of $2.84 billion. EBIT-R, as defined below, for
the fourth quarter of 2006 was a loss of $37 million, an improvement of $82 million over the same
period a year ago. For full year 2006, Visteon reported a net loss of $163 million, or $1.28 per
share, on total sales of $11.4 billion. EBIT-R for full year 2006 was $27 million compared with a
loss of $388 million for 2005.
Our full year results demonstrate solid progress in achieving our multi-year improvement plan,
even while facing significant production declines from a number of our customers, said Michael F.
Johnston, chairman and chief executive officer. Were leaner, more efficient and better
positioned from a product, customer and footprint perspective than we were a year ago.
Fourth Quarter 2006
Sales for fourth quarter 2006 totaled $2.84 billion. Fourth quarter 2006 product sales were $2.7
billion, essentially unchanged from fourth quarter 2005, as favorable currency and increased sales
in Asia were offset by lower production volumes, principally in North America. Product sales to
non-Ford customers of $1.62 billion rose 13 percent, or $188 million, over fourth quarter 2005 and
represented 60 percent of total product sales. Services sales of $131 million decreased $33 million
from the same period in 2005, reflecting the transfer of about 1,000 Visteon salaried employees
associated with two Automotive Components Holdings (ACH) manufacturing facilities to Ford in early
2006.
Visteon reported a net loss of $39 million, or $0.30 per share, for the fourth quarter of 2006,
which included reimbursable restructuring expenses and other qualified costs of $71 million and a
net tax benefit of $32 million. The net tax benefit resulted primarily from tax effecting current year U.S.
operating losses to the extent of increases in other comprehensive income in 2006, principally
attributable to favorable foreign currency translation. EBIT-R for the fourth quarter 2006 was a
loss of $37 million.
For the fourth quarter 2005, Visteon reported net income of $1.3 billion, or $10.25 per diluted
share, which included a gain of $1.8 billion related to the ACH transactions, $335 million of
non-cash asset impairments, $34 million of restructuring expenses and other qualified reimbursable
costs. Reimbursements from the escrow account totaled $51 million, which included reimbursements
for qualified costs recognized in previous periods. EBIT-R for the fourth quarter 2005 was a loss
of $119 million.
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Cash provided by operating activities for the fourth quarter of 2006 was $239 million, an increase
of $197 million over the same period a year ago. Fourth quarter 2005 was adversely impacted by the
unwinding of the retained negative working capital associated with the ACH transactions. Capital
expenditures for the fourth quarter of 2006 of $108 million were $77 million lower than the same
period a year ago. Free cash flow, as defined below, for the fourth quarter of 2006 was positive
$131 million, compared with negative $143 million in the same period of 2005.
Full Year 2006
Sales for full year 2006 totaled $11.4 billion, including product sales of $10.9 billion and
services sales of $547 million. Product sales to non-Ford customers totaled $6.0 billion, or 55
percent of total product sales. Sales for the same period a year ago totaled $17.0 billion,
including product sales of $16.8 billion and services sales of $164 million. Of the total product
sales for 2005, 62 percent were to Ford and
38 percent were to non-Ford customers. The transfer of 23 North American facilities on Oct. 1, 2005
as part of the ACH transactions decreased year-over-year product sales by $6.1 billion.
Visteons net loss of $163 million, or $1.28 per share, for full year 2006 represents an
improvement of $107 million over 2005s net loss of $270 million, or $2.14 per share, despite lower
sales levels.
The net loss for full year 2006 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. Restructuring expenses for full year 2006 were $95
million, all of which qualified for reimbursement from the escrow account. EBIT-R for full year
2006 was $27 million.
The net loss of $270 million for full year 2005 included asset impairments of $1.5 billion, a $1.8
billion gain on the ACH transactions, and $26 million of restructuring expenses, partially offset
by $51 million of reimbursements from the escrow account. EBIT-R for the full year 2005 was a loss
of $388 million.
Cash provided by operating activities was $281 million for full year 2006 compared with $417
million for full year 2005. Capital expenditures of $373 million for the full year 2006 were $212
million lower than 2005. Free cash flow for full year 2006 was negative $92 million compared with
negative $168 million for full year 2005.
Cash and Debt
As of Dec. 31, 2006, cash and equivalents totaled $1.057 billion as compared to $865 million at the
end of 2005. Total debt of $2.2 billion as of Dec. 31, 2006 compared with $2.0 billion at the end
of 2005, principally reflecting the closing of an additional $200 million secured term loan under
its existing term loan credit agreement in November 2006.
Restructuring
In connection with the companys salaried reduction program announced in October 2006, about
800 salaried positions have been identified as of Dec. 31, 2006. Restructuring expenses in the
fourth quarter of 2006 for these salaried reductions were $19 million and qualified for
reimbursement from the escrow account. The company expects to complete the salaried reduction
program by the end of March 2007 and anticipates achieving per annum savings of about $65 million.
Visteon also recognized $20 million of restructuring expenses and $8 million of pension curtailment
losses during the fourth quarter of 2006 related to the companys plan to close a U.S. climate
control manufacturing facility in 2007 in response to lower sales volumes and cost pressures.
In addition to the above actions, in 2006 the company completed 11 restructuring actions in
connection with its multi-year improvement plan. Reimbursable restructuring expenses and other
qualified costs from the escrow account totaled $106 million for the full year 2006.
As of Dec. 31, 2006, the escrow account had a balance of $319 million, $55 million of which related
to expenses incurred in the fourth quarter of 2006 which were reimbursed from the escrow account in
February 2007.
New Business Wins
In the fourth quarter of 2006, Visteon was awarded new business wins (expected annual sales value
of awarded program) of about $200 million resulting in full year 2006 new business wins of $1.0
billion.
This new business reflects the strength of our product portfolio and our manufacturing and
engineering footprints, which are already among the best in the industry, said Donald J. Stebbins,
president and chief operating officer. We also continued to diversify our customer base which will
enable us to better withstand global production shifts.
Full Year 2007 Outlook
2007 is expected to be a challenging period for the automotive industry with anticipated production
declines for certain of the companys key customers. Visteon currently estimates that its 2007 full
year EBIT-R will be in the range of breakeven to a loss of $100 million on anticipated 2007 product
sales of $11.1 billion. In addition, Visteon expects free cash flow for 2007 to be in the range of
negative
$125 million to negative $225 million, assuming a constant level of receivables sales.
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, changes in interest 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 due to financial distress or work stoppages; our ability to timely implement, and
realize the anticipated benefits of restructuring and other cost-reduction initiatives, including
our multi-year improvement plan, 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 effects of reorganization and/or restructuring plans announced by our customers; the effect of pension and other
post-employment benefit obligations; increases in our warranty, product 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. The financial results presented herein are preliminary and unaudited; final audited
financial results will be included in the companys Annual Report on Form 10-K for the year ended
December 31, 2006.
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 2007 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.
###
Visteon news releases, photographs and product specification details
are available at www.visteon.com
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions, Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
2,710 |
|
|
$ |
2,701 |
|
|
$ |
10,871 |
|
|
$ |
16,812 |
|
Services |
|
|
131 |
|
|
|
164 |
|
|
|
547 |
|
|
|
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,841 |
|
|
|
2,865 |
|
|
|
11,418 |
|
|
|
16,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
2,579 |
|
|
|
2,647 |
|
|
|
10,142 |
|
|
|
16,279 |
|
Services |
|
|
130 |
|
|
|
163 |
|
|
|
542 |
|
|
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,709 |
|
|
|
2,810 |
|
|
|
10,684 |
|
|
|
16,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
132 |
|
|
|
55 |
|
|
|
734 |
|
|
|
534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
177 |
|
|
|
183 |
|
|
|
716 |
|
|
|
946 |
|
Asset impairments |
|
|
|
|
|
|
335 |
|
|
|
22 |
|
|
|
1,511 |
|
Restructuring expenses |
|
|
60 |
|
|
|
19 |
|
|
|
95 |
|
|
|
26 |
|
Reimbursement from Escrow Account |
|
|
71 |
|
|
|
51 |
|
|
|
106 |
|
|
|
51 |
|
Gain on ACH Transaction |
|
|
|
|
|
|
1,832 |
|
|
|
|
|
|
|
1,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(34 |
) |
|
|
1,401 |
|
|
|
7 |
|
|
|
(66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
34 |
|
|
|
34 |
|
|
|
159 |
|
|
|
132 |
|
Debt extinguishment gain |
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
Equity in net income of non-consolidated affiliates |
|
|
6 |
|
|
|
3 |
|
|
|
33 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes, minority
interests, change in accounting and
extraordinary item |
|
|
(62 |
) |
|
|
1,370 |
|
|
|
(111 |
) |
|
|
(173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes |
|
|
(32 |
) |
|
|
23 |
|
|
|
25 |
|
|
|
64 |
|
Minority interests in consolidated subsidiaries |
|
|
9 |
|
|
|
9 |
|
|
|
31 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income before change in accounting
and extraordinary item |
|
|
(39 |
) |
|
|
1,338 |
|
|
|
(167 |
) |
|
|
(270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of change in accounting, net of tax |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income before extraordinary item |
|
|
(39 |
) |
|
|
1,338 |
|
|
|
(171 |
) |
|
|
(270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary item, net of tax |
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(39 |
) |
|
$ |
1,338 |
|
|
$ |
(163 |
) |
|
$ |
(270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share before change in accounting
and extraordinary item |
|
$ |
(0.30 |
) |
|
$ |
10.58 |
|
|
$ |
(1.31 |
) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of change in accounting, net of tax |
|
|
|
|
|
|
|
|
|
|
(.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share before extraordinary item |
|
|
(0.30 |
) |
|
|
10.58 |
|
|
|
(1.34 |
) |
|
|
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary item, net of tax |
|
|
|
|
|
|
|
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share |
|
$ |
(0.30 |
) |
|
$ |
10.58 |
|
|
$ |
(1.28 |
) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share before change in accounting
and extraordinary item |
|
$ |
(0.30 |
) |
|
$ |
10.25 |
|
|
$ |
(1.31 |
) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative effect of change in accounting, net of tax |
|
|
|
|
|
|
|
|
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share before extraordinary item |
|
|
(0.30 |
) |
|
|
10.25 |
|
|
|
(1.34 |
) |
|
|
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary item, net of tax |
|
|
|
|
|
|
|
|
|
|
0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share |
|
$ |
(0.30 |
) |
|
$ |
10.25 |
|
|
$ |
(1.28 |
) |
|
$ |
(2.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding (millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
128.6 |
|
|
|
126.5 |
|
|
|
127.9 |
|
|
|
126.0 |
|
Diluted |
|
|
128.6 |
|
|
|
130.6 |
|
|
|
127.9 |
|
|
|
126.0 |
|
Page 1
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2006 |
|
|
2005 |
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
1,057 |
|
|
$ |
865 |
|
Accounts receivable, net |
|
|
1,245 |
|
|
|
1,711 |
|
Interests in accounts receivable transferred |
|
|
482 |
|
|
|
|
|
Inventories, net |
|
|
520 |
|
|
|
537 |
|
Other current assets |
|
|
261 |
|
|
|
232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
3,565 |
|
|
|
3,345 |
|
|
|
|
|
|
|
|
|
|
Equity in net assets of non-consolidated affiliates |
|
|
224 |
|
|
|
226 |
|
Property and equipment, net |
|
|
3,034 |
|
|
|
2,973 |
|
Other non-current assets |
|
|
115 |
|
|
|
192 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,938 |
|
|
$ |
6,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS DEFICIT
|
|
|
|
|
|
|
|
|
|
Short-term debt, including current portion of long-term debt |
|
$ |
100 |
|
|
$ |
485 |
|
Accounts payable |
|
|
1,825 |
|
|
|
1,803 |
|
Accrued employee liabilities |
|
|
337 |
|
|
|
358 |
|
Other current liabilities |
|
|
306 |
|
|
|
313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
2,568 |
|
|
|
2,959 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
2,128 |
|
|
|
1,509 |
|
Postretirement benefits other than pensions |
|
|
747 |
|
|
|
878 |
|
Employee benefits, including pensions |
|
|
846 |
|
|
|
647 |
|
Deferred income taxes |
|
|
170 |
|
|
|
175 |
|
Other non-current liabilities |
|
|
396 |
|
|
|
382 |
|
Minority interests in consolidated subsidiaries |
|
|
271 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
Shareholders 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, 129 million and 129 million shares outstanding, respectively) |
|
|
131 |
|
|
|
131 |
|
Stock warrants |
|
|
127 |
|
|
|
127 |
|
Additional paid-in capital |
|
|
3,398 |
|
|
|
3,396 |
|
Accumulated deficit |
|
|
(3,606 |
) |
|
|
(3,440 |
) |
Accumulated other comprehensive loss |
|
|
(216 |
) |
|
|
(234 |
) |
Other |
|
|
(22 |
) |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders deficit |
|
|
(188 |
) |
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders deficit |
|
$ |
6,938 |
|
|
$ |
6,736 |
|
|
|
|
|
|
|
|
Page 2
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Months Ended |
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(39 |
) |
|
$ |
1,338 |
|
|
$ |
(163 |
) |
|
$ |
(270 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net (loss) income to net cash
provided from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on ACH transactions |
|
|
|
|
|
|
(1,832 |
) |
|
|
|
|
|
|
(1,832 |
) |
Depreciation and amortization |
|
|
115 |
|
|
|
122 |
|
|
|
430 |
|
|
|
595 |
|
Non-cash tax items |
|
|
(48 |
) |
|
|
|
|
|
|
(68 |
) |
|
|
|
|
Postretirement benefit relief |
|
|
|
|
|
|
|
|
|
|
(72 |
) |
|
|
|
|
Asset impairments |
|
|
|
|
|
|
335 |
|
|
|
22 |
|
|
|
1,511 |
|
Gain on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
Extraordinary item, net of tax |
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
Equity in net income of non-consolidated affiliates,
net of dividends remitted |
|
|
(5 |
) |
|
|
12 |
|
|
|
(9 |
) |
|
|
23 |
|
Other non-cash items |
|
|
3 |
|
|
|
15 |
|
|
|
6 |
|
|
|
44 |
|
Change in receivables sold |
|
|
21 |
|
|
|
1 |
|
|
|
33 |
|
|
|
43 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
91 |
|
|
|
603 |
|
|
|
84 |
|
|
|
668 |
|
Escrow receivable |
|
|
(46 |
) |
|
|
(27 |
) |
|
|
(28 |
) |
|
|
(27 |
) |
Inventories |
|
|
44 |
|
|
|
33 |
|
|
|
55 |
|
|
|
34 |
|
Accounts payable |
|
|
99 |
|
|
|
(579 |
) |
|
|
(104 |
) |
|
|
(593 |
) |
Other assets and liabilities |
|
|
4 |
|
|
|
21 |
|
|
|
111 |
|
|
|
221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from operating activities |
|
|
239 |
|
|
|
42 |
|
|
|
281 |
|
|
|
417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(108 |
) |
|
|
(185 |
) |
|
|
(373 |
) |
|
|
(585 |
) |
Proceeds from sales of assets |
|
|
24 |
|
|
|
37 |
|
|
|
42 |
|
|
|
76 |
|
Net cash proceeds from ACH transactions |
|
|
|
|
|
|
(12 |
) |
|
|
|
|
|
|
299 |
|
Other investments |
|
|
|
|
|
|
(1 |
) |
|
|
(6 |
) |
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used by investing activities |
|
|
(84 |
) |
|
|
(161 |
) |
|
|
(337 |
) |
|
|
(231 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt, net |
|
|
(36 |
) |
|
|
48 |
|
|
|
(400 |
) |
|
|
239 |
|
Proceeds from debt, net of issuance costs |
|
|
196 |
|
|
|
10 |
|
|
|
1,378 |
|
|
|
50 |
|
Principal payments on debt |
|
|
(12 |
) |
|
|
(30 |
) |
|
|
(624 |
) |
|
|
(69 |
) |
Repurchase of unsecured debt securities |
|
|
|
|
|
|
|
|
|
|
(141 |
) |
|
|
(250 |
) |
Other, including book overdrafts |
|
|
6 |
|
|
|
57 |
|
|
|
1 |
|
|
|
(21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used by) financing activities |
|
|
154 |
|
|
|
85 |
|
|
|
214 |
|
|
|
(51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
8 |
|
|
|
1 |
|
|
|
34 |
|
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
|
317 |
|
|
|
(33 |
) |
|
|
192 |
|
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at beginning of period |
|
|
740 |
|
|
|
898 |
|
|
|
865 |
|
|
|
752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
|
$ |
1,057 |
|
|
$ |
865 |
|
|
$ |
1,057 |
|
|
$ |
865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 asset impairments and net unreimbursed
restructuring expenses and other reimbursable costs. 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 |
|
|
Year Ended |
|
|
FY 2007 |
|
|
|
December 31 |
|
|
December 31 |
|
|
Estimate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(39 |
) |
|
$ |
1,338 |
|
|
$ |
(163 |
) |
|
$ |
(270 |
) |
|
$(367) to (267) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
34 |
|
|
|
34 |
|
|
|
151 |
|
|
|
132 |
|
|
|
160 |
|
Provision for income taxes |
|
|
(32 |
) |
|
|
23 |
|
|
|
25 |
|
|
|
64 |
|
|
|
95 |
|
Asset impairments |
|
|
|
|
|
|
335 |
|
|
|
22 |
|
|
|
1,511 |
|
|
|
|
|
Extraordinary item, net of tax |
|
|
|
|
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
Restructuring and other reimbursable costs |
|
|
71 |
|
|
|
34 |
|
|
|
106 |
|
|
|
58 |
|
|
|
117 |
|
Reimbursement from escrow account |
|
|
(71 |
) |
|
|
(51 |
) |
|
|
(106 |
) |
|
|
(51 |
) |
|
|
(105) |
|
Gain on ACH transaction |
|
|
|
|
|
|
(1,832 |
) |
|
|
|
|
|
|
(1,832 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT-R |
|
$ |
(37 |
) |
|
$ |
(119 |
) |
|
$ |
27 |
|
|
$ |
(388 |
) |
|
$(100) to $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Year Ended |
|
|
FY 2007 |
|
|
|
December 31 |
|
|
December 31 |
|
|
Estimate* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
2005 |
|
|
2006 |
|
|
2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided from operating
activities |
|
$ |
239 |
|
|
$ |
42 |
|
|
$ |
281 |
|
|
$ |
417 |
|
|
$145 to 245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(108 |
) |
|
|
(185 |
) |
|
|
(373 |
) |
|
|
(585 |
) |
|
|
(370) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
131 |
|
|
$ |
(143 |
) |
|
$ |
(92 |
) |
|
$ |
(168 |
) |
|
$(225) to (125) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
* Estimate of free cash flows for 2007 assumes constant levels of receivables securitization.
Page 4