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(State or other jurisdiction of incorporation or organization)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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||
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Exhibit
No.
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|
Description
|
|
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|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
VISTEON CORPORATION
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||
By:
|
/s/Brett D. Pynnonen
|
|
Brett D. Pynnonen
|
||
Senior Vice President and General Counsel
|
•
|
Net sales of $
643 million
|
•
|
Net loss of
$35 million
, including
$33 million
of restructuring charges
|
•
|
Adjusted EBITDA of $
33 million
|
•
|
Awarded $800 million in new business
|
•
|
Available cash of
$825 million
; no near-term debt maturities
|
•
|
Enhanced liquidity and cash position by drawing down the full $400 million available under its revolving credit facility. Visteon has no significant near-term debt maturities.
|
•
|
Temporarily suspended, or significantly reduced, production at manufacturing facilities outside of China. During the three months ending March 31, 2020, the company announced restructuring programs to rationalize the company's global footprint, lower its cost base, and improve financial performance and cash flow generation.
|
•
|
Ramped up production in China during March and expecting to reach pre-COVID-19 levels during the second quarter.
|
•
|
Implemented temporary global compensation reductions of 40% for the CEO, 30% for the company's executive committee and 30% of the cash compensation for the company's non-employee directors. Subject to local laws and regulations, all other employee salaries will be reduced by 20%.
|
•
|
Implemented comprehensive safety protocols to protect the health and safety of employees as operations resume.
|
•
|
Providing up to 50,000 protective face shield donations by using production lines at its state-of-the-art Palmela manufacturing facility in Portugal, typically dedicated to automotive cockpit electronics.
|
•
|
continued and future impacts of the coronavirus (COVID-19) pandemic on our financial condition and business operations including global supply chain disruptions, market downturns, reduced consumer demand and new government actions or restrictions;
|
•
|
conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (ii) the financial condition of our customers and the effects of any restructuring or reorganization plans that may be undertaken by our customers, including work stoppages at our customers, and (iii) possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest;
|
•
|
our ability to execute on our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated;
|
•
|
our ability to satisfy future capital and liquidity requirements; including our ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to us; our ability to comply with financial and other covenants in our credit agreements; and the continuation of acceptable supplier payment terms;
|
•
|
our ability to satisfy pension and other post-employment benefit obligations;
|
•
|
our ability to access funds generated by foreign subsidiaries and joint ventures on a timely and cost-effective basis;
|
•
|
general economic conditions, including changes in interest rates and fuel prices; the timing and expenses related to internal restructurings, employee reductions, acquisitions or dispositions and the effect of pension and other post-employment benefit obligations;
|
•
|
increases in raw material and energy costs and our ability to offset or recover these costs; increases in our warranty, product liability and recall costs or the outcome of legal or regulatory proceedings to which we are or may become a party; and
|
•
|
those factors identified in our filings with the SEC (including our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by our subsequent filings with the Securities and Exchange Commission).
|
Three Months Ended
|
|||||||
March 31
|
|||||||
2020
|
2019
|
||||||
Net sales
|
$
|
643
|
|
$
|
737
|
|
|
Cost of sales
|
(590
|
)
|
(671
|
)
|
|||
Gross margin
|
53
|
|
66
|
|
|||
Selling, general and administrative expenses
|
(54
|
)
|
(57
|
)
|
|||
Restructuring expense, net
|
(33
|
)
|
(1
|
)
|
|||
Interest expense, net
|
(2
|
)
|
(2
|
)
|
|||
Equity in net income of non-consolidated affiliates
|
1
|
|
3
|
|
|||
Other income, net
|
4
|
|
2
|
|
|||
Income (loss) before income taxes
|
(31
|
)
|
11
|
|
|||
Benefit (provision) for income taxes
|
(5
|
)
|
5
|
|
|||
Net income (loss)
|
(36
|
)
|
16
|
|
|||
Net (income) loss attributable to non-controlling interests
|
1
|
|
(2
|
)
|
|||
Net income (loss) attributable to Visteon Corporation
|
$
|
(35
|
)
|
$
|
14
|
|
|
Comprehensive income (loss)
|
$
|
(73
|
)
|
$
|
21
|
|
|
Comprehensive income (loss) attributable to Visteon Corporation
|
$
|
(72
|
)
|
$
|
18
|
|
|
Basic earnings (loss) per share attributable to Visteon Corporation
|
$
|
(1.25
|
)
|
$
|
0.50
|
|
|
Diluted earnings (loss) per share attributable to Visteon Corporation
|
$
|
(1.25
|
)
|
$
|
0.49
|
|
|
Average shares outstanding (in millions)
|
|||||||
Basic
|
27.9
|
|
28.2
|
|
|||
Diluted
|
27.9
|
|
28.4
|
|
(Unaudited)
|
|||||||
March 31
|
December 31
|
||||||
2020
|
2019
|
||||||
ASSETS
|
|||||||
Cash and equivalents
|
$
|
822
|
|
$
|
466
|
|
|
Restricted cash
|
3
|
|
3
|
|
|||
Accounts receivable, net
|
401
|
|
514
|
|
|||
Inventories, net
|
180
|
|
169
|
|
|||
Other current assets
|
177
|
|
193
|
|
|||
Total current assets
|
1,583
|
|
1,345
|
|
|||
Property and equipment, net
|
420
|
|
436
|
|
|||
Intangible assets, net
|
126
|
|
127
|
|
|||
Right-of-use assets
|
161
|
|
165
|
|
|||
Investments in non-consolidated affiliates
|
48
|
|
48
|
|
|||
Other non-current assets
|
150
|
|
150
|
|
|||
Total assets
|
$
|
2,488
|
|
$
|
2,271
|
|
|
LIABILITIES AND EQUITY
|
|||||||
Short-term debt
|
$
|
36
|
|
$
|
37
|
|
|
Accounts payable
|
442
|
|
511
|
|
|||
Accrued employee liabilities
|
59
|
|
73
|
|
|||
Current lease liability
|
30
|
|
30
|
|
|||
Other current liabilities
|
162
|
|
147
|
|
|||
Total current liabilities
|
729
|
|
798
|
|
|||
Long-term debt, net
|
748
|
|
348
|
|
|||
Employee benefits
|
284
|
|
292
|
|
|||
Non-current lease liability
|
140
|
|
139
|
|
|||
Deferred tax liabilities
|
27
|
|
27
|
|
|||
Other non-current liabilities
|
59
|
|
72
|
|
|||
Stockholders’ equity:
|
|||||||
Common stock
|
1
|
|
1
|
|
|||
Additional paid-in capital
|
1,337
|
|
1,342
|
|
|||
Retained earnings
|
1,644
|
|
1,679
|
|
|||
Accumulated other comprehensive loss
|
(304
|
)
|
(267
|
)
|
|||
Treasury stock
|
(2,284
|
)
|
(2,275
|
)
|
|||
Total Visteon Corporation stockholders’ equity
|
394
|
|
480
|
|
|||
Non-controlling interests
|
107
|
|
115
|
|
|||
Total equity
|
501
|
|
595
|
|
|||
Total liabilities and equity
|
$
|
2,488
|
|
$
|
2,271
|
|
Three Months Ended
|
|||||||
March 31
|
|||||||
2020
|
2019
|
||||||
OPERATING
|
|||||||
Net income (loss)
|
$
|
(36
|
)
|
$
|
16
|
|
|
Adjustments to reconcile net income to net cash provided from operating activities:
|
|||||||
Depreciation and amortization
|
25
|
|
25
|
|
|||
Non-cash stock-based compensation
|
5
|
|
5
|
|
|||
Equity in net income of non-consolidated affiliates, net of dividends remitted
|
(1
|
)
|
(3
|
)
|
|||
Other non-cash items
|
6
|
|
3
|
|
|||
Changes in assets and liabilities:
|
|||||||
Accounts receivable
|
102
|
|
3
|
|
|||
Inventories
|
(16
|
)
|
(11
|
)
|
|||
Accounts payable
|
(42
|
)
|
9
|
|
|||
Other assets and other liabilities
|
(18
|
)
|
(43
|
)
|
|||
Net cash provided from operating activities
|
25
|
|
4
|
|
|||
INVESTING
|
|||||||
Capital expenditures, including intangibles
|
(44
|
)
|
(37
|
)
|
|||
Loan repayments from non-consolidated affiliates
|
2
|
|
2
|
|
|||
Other
|
1
|
|
1
|
|
|||
Net cash used by investing activities
|
(41
|
)
|
(34
|
)
|
|||
FINANCING
|
|||||||
Borrowings on revolving credit facility
|
400
|
|
—
|
|
|||
Repurchase of common stock
|
(16
|
)
|
—
|
|
|||
Dividends paid to non-controlling interests
|
(7
|
)
|
—
|
|
|||
Short-term debt repayments, net
|
—
|
|
(2
|
)
|
|||
Net cash provided from (used by) financing activities
|
377
|
|
(2
|
)
|
|||
Effect of exchange rate changes on cash
|
(5
|
)
|
—
|
|
|||
Net increase (decrease) in cash
|
356
|
|
(32
|
)
|
|||
Cash and restricted cash at beginning of the period
|
469
|
|
467
|
|
|||
Cash and restricted cash at end of the period
|
$
|
825
|
|
$
|
435
|
|
Three Months Ended
|
|||||||
March 31
|
|||||||
Visteon
:
|
2020
|
|
2019
|
||||
Net income (loss) attributable to Visteon Corporation
|
$
|
(35
|
)
|
$
|
14
|
|
|
Depreciation and amortization
|
25
|
|
25
|
|
|||
Provision (benefit) for income taxes
|
5
|
|
(5
|
)
|
|||
Non-cash, stock-based compensation expense
|
5
|
|
5
|
|
|||
Interest expense, net
|
2
|
|
2
|
|
|||
Net income (loss) attributable to non-controlling interests
|
(1
|
)
|
2
|
|
|||
Restructuring expense, net
|
33
|
|
1
|
|
|||
Equity in net income of non-consolidated affiliates
|
(1
|
)
|
(3
|
)
|
|||
Adjusted EBITDA
|
$
|
33
|
|
$
|
41
|
|
Three Months Ended
|
|||||||
March 31
|
|||||||
Total Visteon
:
|
2020
|
2019
|
|||||
Cash provided from operating activities
|
$
|
25
|
|
$
|
4
|
|
|
Capital expenditures, including intangibles
|
(44
|
)
|
(37
|
)
|
|||
Free cash flow
|
$
|
(19
|
)
|
$
|
(33
|
)
|
|
Restructuring related payments
|
5
|
|
3
|
|
|||
Adjusted free cash flow
|
$
|
(14
|
)
|
$
|
(30
|
)
|
Three Months Ended
|
|||||||
March 31
|
|||||||
2020
|
2019
|
||||||
Net income (loss) attributable to Visteon
|
$
|
(35
|
)
|
$
|
14
|
|
Three Months Ended
|
|||||||
March 31
|
|||||||
2020
|
2019
|
||||||
Diluted earnings per share
:
|
|||||||
Net income (loss) attributable to Visteon
|
$
|
(35
|
)
|
$
|
14
|
|
|
Average shares outstanding, diluted (in millions)
|
27.9
|
|
28.4
|
|
|||
Diluted earnings (loss) per share
|
$
|
(1.25
|
)
|
$
|
0.49
|
|
|
Adjusted earnings per share
:
|
|||||||
Net income (loss) attributable to Visteon
|
$
|
(35
|
)
|
$
|
14
|
|
|
Restructuring, net
|
33
|
|
1
|
|
|||
Adjusted net income (loss)
|
$
|
(2
|
)
|
$
|
15
|
|
|
Average shares outstanding, diluted (in millions)
|
27.9
|
|
28.4
|
|
|||
Adjusted earnings (loss) per share
|
$
|
(0.07
|
)
|
$
|
0.53
|
|
|