e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported) April 30, 2010
VISTEON CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware
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1-15827
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38-3519512 |
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.) |
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One Village Center Drive, Van Buren Township, Michigan
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48111 |
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(Address of principal executive offices)
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(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))
TABLE OF CONTENTS
SECTION 2 FINANCIAL INFORMATION
Item 2.02. Results of Operations and Financial Condition.
On
April 30, 2010, the registrant issued a press release regarding its financial results for
the first quarter of 2010. 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.
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.
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Exhibit No. |
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Description |
99.1
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Press release dated April 30, 2010. |
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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.
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VISTEON CORPORATION
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Date: April 30, 2010 |
By: |
/s/ Michael J. Widgren
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Michael J. Widgren |
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Vice President, Corporate Controller
and Chief Accounting Officer |
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EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1
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Press release dated April 30, 2010. |
- 4 -
exv99w1
Exhibit 99.1
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NEWS RELEASE
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Visteon Announces First-Quarter 2010 Results
First Quarter Summary
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Product sales of $1.85 billion, up 43 percent from first quarter 2009 |
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Net income of $233 million |
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Adjusted EBITDA of $161 million, up
$139 million from first quarter 2009 |
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Cash generated by operating activities of $40 million, a $315 million year-over-year
improvement |
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Cash balances of $1.1 billion |
VAN BUREN
TOWNSHIP, Mich., April 30, 2010 Visteon Corporation (OTC: VSTNQ) today announced its
first-quarter 2010 results, reporting net income of $233 million, or $1.79 per share, on product
sales of $1.85 billion. For the first quarter of 2009, Visteon reported a net income of $2 million,
or 2 cents per share, on product sales of $1.3 billion. Adjusted EBITDA, as defined below, for the
first quarter of 2010 was $161 million, compared with $22 million in the first quarter of 2009.
Increased global vehicle production, combined with our ongoing operational improvements and
cost-reduction efforts, drove our year-over-year financial improvement, said Donald J. Stebbins,
chairman, chief executive officer and president. We benefited from aggressive actions taken over
the past year to keep our cost structure in line with significantly reduced global volumes.
Although in the near term we remain concerned about European production volumes, were confident
that our worldwide engineering and manufacturing footprint positions Visteon to support new global
vehicle programs and grow with our customers around the world.
Approximately
27 percent of Visteons first-quarter product sales were to Ford Motor Co. and 24
percent to Hyundai-Kia, with Renault-Nissan and PSA Peugeot-Citroën each accounting for about 7
percent of product sales. On a regional basis, Europe accounted for 39 percent of total product
sales, with Asia representing 35 percent, North America 20 percent and South America 6 percent.
First Quarter 2010 Results
For the first quarter of 2010, total sales were $1.9 billion, including product sales of $1.85
billion and services revenue of $58 million. Product sales increased by $551 million, or 43
percent, year-over-year as higher production and new business wins, net of plant divestitures and
closures, increased sales by about $414 million. Foreign currency further increased sales by about
$146 million. The company experienced higher sales in each of the major regions in which it
operates, reflecting increased production volumes by all customers as vehicle sales rebounded in
response to stronger global economic conditions.
Gross margin for the first quarter was $418 million, compared with $45 million a year earlier.
Factors contributing to this improvement included a $251 million gain related to the termination of
certain company-paid medical, prescription drug and life insurance coverage benefits under certain
U.S. other
post-retirement employee benefit (OPEB) plans; and the impact of higher customer
production levels and net cost performance; partially offset by foreign currency.
Selling, general and administrative expense for the first quarter totaled $113 million, an increase
of $5 million compared with the same period a year ago, as cost reductions were largely offset by
an expense of $14 million related to the OPEB termination.
For the first quarter, the company reported net income of $233 million, or $1.79 per share. This
compares with net income of $2 million, or 2 cents per share, in the same period a year ago. First
quarter 2010 results included a $237 million net gain related to the OPEB termination, while first
quarter 2009 results included a deconsolidation gain of $95 million related to Visteon UK
Ltd.
Adjusted EBITDA for the first quarter was $161 million, compared with $22 million for the same
period a year ago. During the first quarter, Visteon won approximately $141 million of business,
with more than half generated in Asia.
Cash Flow and Liquidity
For the first quarter of 2010, Visteon generated $40 million in cash from operations, compared with
an outflow of $275 million for the first quarter of 2009. The improvement was largely attributable
to higher net income, lower trade working capital outflow and the impact of the automatic stay on
interest payments. Capital expenditures in the first quarter were $25 million, equal to the amount
a year earlier. Free cash flow, as defined below, was positive $15 million in the first quarter,
compared with a use of $300 million in the first quarter of 2009.
As of March 31, 2010, Visteon had global cash balances, including restricted cash, of nearly $1.1
billion.
Visteon is a leading global automotive supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle manufacturers. With corporate
offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Chelmsford, UK; the company has
facilities in 25 countries and employs approximately 28,500 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, but not limited to,
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the potential adverse impact of the Chapter 11 proceedings on our business,
financial condition or results of operations, including our ability to maintain contracts
and other customer and vendor relationships that are critical to our business and the
actions and decisions of our creditors and other third parties with interests in our
Chapter 11 proceedings; |
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our ability to maintain adequate liquidity to fund our operations during the
Chapter 11 proceedings and to fund a plan of reorganization and thereafter, including
obtaining sufficient exit financing; maintaining normal terms with our vendors and
service providers during the Chapter 11 proceedings and complying with the covenants and
other terms of our financing agreements; |
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our ability to obtain court approval with respect to motions in the Chapter 11
proceedings prosecuted from time to time and to develop, prosecute, confirm and consummate
one or more |
- 2 -
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plans of reorganization with respect to the Chapter 11 proceedings and to
consummate all of the transactions contemplated by one or more such plans of reorganization
or upon which consummation of such plans may be conditioned; |
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conditions within the automotive industry, including (i) the automotive
vehicle production volumes and schedules of our customers, and in particular Fords and
Hyundai-Kias vehicle production volumes, (ii) the financial condition of our customers or
suppliers and the effects of any restructuring or reorganization plans that may be
undertaken by our customers or suppliers or work stoppages at our customers or suppliers,
and (iii) possible disruptions in the supply of commodities to us or our customers due to
financial distress or work stoppages; |
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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 productions levels, customer price reductions and currency
exchange rates; |
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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; |
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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; and |
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those factors identified in our filings with the SEC (including our Annual
Report on Form 10-K for the fiscal year ended Dec. 31, 2009). |
The risks and uncertainties and the terms of any reorganization plan ultimately confirmed can
affect the value of our various pre-petition liabilities, common stock and/or other securities. No
assurance can be given as to what values, if any, will be ascribed in the Chapter 11 proceedings to
each of these constituencies. A plan of reorganization could result in holders of our liabilities
and/or securities receiving no value for their interests. Because of such possibilities, the value
of these liabilities and/or securities is highly speculative. Accordingly, we urge that caution be
exercised with respect to existing and future investments in any of these liabilities and/or
securities. 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 companys Quarterly Report on Form 10-Q for the quarter ended March
31, 2010.
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.
###
Visteon news releases, photographs and product specification details are available at www.visteon.com
Contacts:
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Media:
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Investors: |
Jim Fisher
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Michael Lewis |
734-710-5557
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734-710-5800 |
jfishe89@visteon.com
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investor@visteon.com |
- 3 -
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions, Except Per Share Data)
(Unaudited)
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Three Months Ended |
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March 31 |
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2010 |
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2009 |
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Net sales |
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Products |
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$ |
1,846 |
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$ |
1,295 |
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Services |
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58 |
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57 |
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1,904 |
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1,352 |
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Cost of sales |
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Products |
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1,429 |
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1,251 |
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Services |
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57 |
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56 |
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1,486 |
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1,307 |
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Gross margin |
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418 |
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45 |
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Selling, general and administrative expenses |
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113 |
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108 |
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Reorganization items |
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30 |
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Restructuring expenses |
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8 |
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27 |
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Reimbursement from Escrow Account |
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62 |
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Deconsolidation gain |
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95 |
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Asset impairment and loss on divestitures |
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21 |
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Operating income |
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246 |
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67 |
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Interest expense, net |
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3 |
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51 |
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Equity in net income of non-consolidated affiliates |
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30 |
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7 |
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Income before income taxes |
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273 |
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23 |
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Provision for income taxes |
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25 |
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14 |
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Net income |
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248 |
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9 |
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Net income attributable to noncontrolling interests |
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15 |
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7 |
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Net income attributable to Visteon |
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$ |
233 |
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$ |
2 |
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Per share data |
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Net earnings per share attributable to Visteon |
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$ |
1.79 |
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$ |
0.02 |
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Average shares outstanding (millions) |
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Basic |
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130.3 |
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130.5 |
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Diluted |
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130.3 |
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130.5 |
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Page 1
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
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(Unaudited) |
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March 31 |
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December 31 |
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2010 |
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2009 |
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ASSETS |
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Cash and equivalents |
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$ |
964 |
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$ |
962 |
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Restricted cash |
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135 |
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133 |
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Accounts receivable, net |
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1,072 |
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1,055 |
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Inventories, net |
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353 |
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319 |
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Other current assets |
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318 |
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236 |
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Total current assets |
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2,842 |
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2,705 |
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Property and equipment, net |
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1,849 |
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1,936 |
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Equity in net assets of non-consolidated affiliates |
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320 |
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294 |
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Other non-current assets |
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87 |
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84 |
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Total assets |
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$ |
5,098 |
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$ |
5,019 |
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LIABILITIES AND SHAREHOLDERS DEFICIT |
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Short-term debt, including current portion of long-term debt |
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$ |
216 |
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$ |
225 |
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Accounts payable |
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1,037 |
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977 |
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Accrued employee liabilities |
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163 |
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161 |
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Other current liabilities |
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315 |
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302 |
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Total current liabilities |
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1,731 |
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1,665 |
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Long-term debt |
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10 |
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6 |
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Employee benefits |
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519 |
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568 |
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Deferred income taxes |
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171 |
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159 |
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Other non-current liabilities |
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247 |
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257 |
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Liabilities subject to compromise |
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2,828 |
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2,819 |
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Shareholders deficit: |
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Preferred stock (par value $1.00, 50 million shares authorized, none outstanding) |
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Common stock (par value $1.00, 500 million shares authorized, 131 million shares
issued, 130 million shares outstanding) |
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131 |
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131 |
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Stock warrants |
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127 |
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127 |
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Additional paid-in capital |
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3,408 |
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3,408 |
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Accumulated deficit |
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(4,343 |
) |
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(4,576 |
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Accumulated other comprehensive income |
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(51 |
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142 |
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Other |
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(4 |
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(4 |
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Total Visteon Corporation shareholders deficit |
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(732 |
) |
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(772 |
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Noncontrolling interests |
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324 |
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317 |
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Total shareholders deficit |
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(408 |
) |
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(455 |
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Total liabilities and shareholders deficit |
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$ |
5,098 |
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$ |
5,019 |
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Page 2
VISTEON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
(Unaudited)
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Three Months Ended |
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March 31 |
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2010 |
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2009 |
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Operating activities |
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Net income |
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$ |
248 |
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$ |
9 |
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Adjustments to reconcile net income to net cash provided from
(used by) operating activities: |
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Depreciation and amortization |
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73 |
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78 |
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OPEB and pension amortization and curtailment |
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(240 |
) |
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(8 |
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Deconsolidation gain |
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(95 |
) |
Asset impairments and loss on divestitures |
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21 |
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Equity in net income of non-consolidated affiliates, net of
dividends remitted |
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(29 |
) |
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(7 |
) |
Reorganization items |
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30 |
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Other non-cash items |
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11 |
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2 |
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Changes in assets and liabilities: |
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Accounts receivable |
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(95 |
) |
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|
15 |
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Inventories |
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(38 |
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3 |
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Accounts payable |
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49 |
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(122 |
) |
Other |
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10 |
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(150 |
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Net cash provided from (used by) operating activities |
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40 |
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(275 |
) |
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Investing activities |
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Capital expenditures |
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(25 |
) |
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(25 |
) |
Cash associated with deconsolidation |
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(11 |
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Other |
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1 |
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2 |
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Net cash used by investing activities |
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(24 |
) |
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(34 |
) |
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Financing activities |
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Short-term debt, net |
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(15 |
) |
Cash restriction |
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(2 |
) |
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(163 |
) |
Proceeds from issuance of debt, net of issuance costs |
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4 |
|
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|
39 |
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Principal payments on debt |
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(12 |
) |
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(45 |
) |
Other, including book overdrafts |
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(1 |
) |
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(56 |
) |
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Net cash used by financing activities |
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(11 |
) |
|
|
(240 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(3 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and equivalents |
|
|
2 |
|
|
|
(576 |
) |
|
|
|
|
|
|
|
|
|
Cash and equivalents at beginning of year |
|
|
962 |
|
|
|
1,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period |
|
$ |
964 |
|
|
$ |
604 |
|
|
|
|
|
|
|
|
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 certain non-GAAP financial
measures including Adjusted EBITDA and free cash flow. Such non-GAAP financial measures are
reconciled to their closest GAAP financial measure in the schedules below.
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Companys
performance that management believes 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 across reporting periods. The Company defines Adjusted
EBITDA as net income (loss) attributable to the Company, plus net interest expense, provision for
income taxes and depreciation and amortization, as further adjusted to eliminate the impact of
asset impairments, non-operating gains and losses, net unreimbursed restructuring expenses and
other reimbursable costs, and reorganization items. Because not all companies use identical
calculations this presentation of Adjusted EBITDA may not be comparable to other similarly titled
measures of other companies.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31 |
|
|
|
2010 |
|
|
2009 |
|
Net income attributable to Visteon |
|
$ |
233 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
3 |
|
|
|
51 |
|
Provision for income taxes |
|
|
25 |
|
|
|
14 |
|
Depreciation and amortization |
|
|
73 |
|
|
|
78 |
|
Asset impairments, loss on divestiture and deconsolidation gain |
|
|
21 |
|
|
|
(95 |
) |
Restructuring and other related costs |
|
|
8 |
|
|
|
34 |
|
Reimbursement from escrow account |
|
|
|
|
|
|
(62 |
) |
Employee
benefit litigation |
|
|
17 |
|
|
|
|
|
OPEB termination and wind-down revenue |
|
|
(249 |
) |
|
|
|
|
Reorganization items |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
161 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
Adjusted EBITDA is not a recognized term under GAAP and does not purport to be a substitute for net
income (loss) as an indicator of operating performance or cash flows from operating activities as a
measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to
be a measure of cash flow available for managements discretionary use, as it does not consider
certain cash requirements such as interest payments, tax payments and debt service requirements.
In addition, the Company uses Adjusted EBITDA (i) as a factor in incentive compensation decisions,
(ii) to evaluate the effectiveness of the Companys business strategies, and (iii) the Companys
credit agreements use measures similar to Adjusted EBITDA to measure compliance with certain
covenants.
Free Cash Flow: Free cash flow is presented as a supplemental measure of the Companys
liquidity that management believes is useful to investors in analyzing the Companys ability to
service and repay its debt. The Company defines free cash flow as cash flow from operating
activities less capital expenditures. Because not all companies use identical calculations, this
presentation of free cash flow may not be comparable to other similarly titled measures of other
companies.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31 |
|
|
|
2010 |
|
|
2009 |
|
Net cash provided from (used by) operating activities |
|
$ |
40 |
|
|
$ |
(275 |
) |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(25 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
|
$ |
15 |
|
|
$ |
(300 |
) |
|
|
|
|
|
|
|
Free cash flow is not a recognized term under GAAP and does not purport to be a substitute for cash
flows from operating activities as a measure of liquidity. Free cash flow has limitations as an
analytical tool and does not reflect cash used to service debt and does not reflect funds available
for investment or other discretionary uses. In addition, the Company uses free cash flow (i) as a
factor in incentive compensation decisions, and (ii) for planning and forecasting future periods.
Page 4