Business
Gentherm Reports 2020 Second Quarter Results
Reduced Operating Expenses by 30% from the Prior-year PeriodStrong Cash Flow Generation in the First Half of 2020 Despite Unprecedented Market Challenges
About this update from Gentherm Inc
[{"type":"text","content":"Reduced Operating Expenses by 30% from the Prior-year PeriodStrong Cash Flow Generation in the First Half of 2020 Despite Unprecedented Market Challenges Total Liquidity of $369 Million at Quarter End\n NORTHVILLE, Mich., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Gentherm (NASDAQ:THRM), the global market leader of innovative thermal management technologies, today announced its financial results for the second quarter ended June 30, 2020. Second Quarter Highlights Product revenues of $136.1 million decreased 44.1% from $243.3 million in the 2019 second quarterExcluding the impact of foreign currency translation and divested assets, product revenues decreased 42.3% year over yearGAAP diluted loss per share was $0.32 compared to diluted earnings per share of $0.08 for the prior-year periodAdjusted loss per share (see table herein) was $0.30. Adjusted earnings per share in the prior-year period was $0.47Secured automotive new business awards totaling $300 million Phil Eyler, Gentherm's President and CEO, said “I am proud of the team for their strong execution in the second quarter despite the unprecedented uncertainties created by the worldwide COVID-19 pandemic. While the Company’s revenue performance reflects the challenges in the underlying markets, our ongoing disciplined approach to managing expenses allowed us to reduce operating expense by 30% from a year ago. In Medical, we delivered double-digit revenue growth both year over year and sequentially. Importantly, we generated a 24% increase in cash flow from operations in the first half of 2020 versus the prior-year period. “While the COVID-19 pandemic will continue to create challenges and uncertainties in the near term, the momentum we are seeing in new awards, winning the coveted General Motors Supplier of the Year award, coupled with aggressive cost management and our strong balance sheet position us well to continue to deliver over the long term,” continued Eyler. 2020 Second Quarter Financial Review Product revenues for the second quarter of 2020 of $136.1 million declined $107.3 million, or 44.1%, as compared to the prior-year period. Excluding the impact of foreign currency translation and divested assets, product revenues declined 42.3% year over year. Automotive revenues declined 45.8% year over year. All product categories saw revenue declines except Electronics. Adjusting ...