Business
Garrett Motion Expects 2023 Financial Results in the Upper End of its Prior Outlook and Will Hold its First Quarter Conference Call on Monday April 24, 2023
Stronger volumes, robust operational performance, and favorable foreign exchange driving better than expected financial results year to date; full-year net
About this update from Garrett Motion Inc.
[{"type":"text","content":"Stronger volumes, robust operational performance, and favorable foreign exchange driving better than expected financial results year to date; full-year net income and Adjusted EBITDA currently forecasted to be at upper end of prior outlookGarrett on track to satisfy the Consolidated EBITDA conversion threshold in its Series A preferred stock in 2023, potentially as early as Q2 2023Automatic conversion of Series A preferred stock would still require 75-day volume-weighted average price (VWAP) of greater than $7.875 per share of common stock ROLLE, Switzerland, April 04, 2023 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX, GTXAP), a leading differentiated technology provider for the automotive industry, today announced that it now expects to achieve financial results in the upper end of the full year 2023 outlook published on February 14, 2023. Year to date, better than expected financial performance has been primarily driven by strong industry volumes in key regions, the successful ramp-up of new programs, operational excellence, and favorable foreign exchange. Garrett’s improved performance could allow the Company to satisfy the Consolidated EBITDA threshold, one of two remaining conditions necessary to cause an automatic conversion of the Series A preferred stock into shares of common stock, potentially as early as Q2 2023. The only remaining condition to conversion would be the achievement of a 75-day VWAP of greater than $7.875 on the common share price. The 75-day VWAP as of March 31, 2023 was $7.70. Both conditions need to be met in the same period to initiate the automatic conversion of the Series A preferred stock into common shares. Full Year 2023 Outlook Garrett’s range for the full year 2023 outlook for certain GAAP and Non-GAAP financial measures remains as follows but will be updated during our next earnings conference call: Full Year 2023 OutlookNet sales (GAAP)$3.55 billion to $3.85 billionNet sales growth at constant currency (Non-GAAP)*+1% to +6%Net income (GAAP)$255 million to $300 millionAdjusted EBITDA (Non-GAAP)*$555 million to $615 millionNet cash provided by operating activities (GAAP)$390 million to $490 millionAdjusted free cash flow (Non-GAAP)*$300 million to $400 million * See reconciliations to the nearest GAAP measure on page 4. Conference Call Garrett plans to issue financial results for the fi...