Gentherm Inc · NASDAQ:THRM
Gentherm — Q4 2018 Earnings Presentation
11 slides from Gentherm's earnings presentation, Feb 21, 2019
Slide 1: Record Annual Revenues and $1.6 Billion in Automotive Awards; 2019 Guidance Established
Company Achieved Record Annual Revenues Despite Industry Headwinds Secured Record $1.6 Billion in Automotive Awards in 2018 2019 Guidance Established NORTHVILLE, Michigan, February 21, 2018 /Global Newswire/ -- Gentherm (NASDAQ:THRM), the global market leader and developer of innovative thermal mana
Slide 2: 2018 Fourth Quarter Financial Review
and Chief Executive Officer. "In addition, we made significant progress in lowering operating expenses through the ‘Fit-for-Growth’ program. Excluding assets held for sale, we delivered a better-than-expected EBITDA margin rate. There are still more opportunities ahead to improve gross margin throug
Slide 3: Restructuring, Adjusted EBITDA and Full Year Discussion
During the quarter, the Comp any recognized $1.9 million in restructuring expenses which resulted from completed actions associated with its Fit-for-Growth initiatives. Total implemented actions to date are expected to deliver annualized savings of approximately $37 million. The Compa ny has identif
Slide 4: Guidance
Guidance The Company is providing the following guidance for 2019, excluding divested assets and assets held for sale: • Product revenues are expected to grow between 4% and 6% to a range of $1.01 billion to $1.04 billion • Operating expenses between 19% and 20% of product revenues • Gross margin ra
Slide 5: About Gentherm
Gentherm (NASDAQ:THRM) is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including
Slide 6: Consolidated Statements of Income
GENTHERM INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Product revenues $ 253,652 $ 257,185 1,038,259 $ 985,683 Cost of sales 185,195 179,953 743,647 674,796 Gross margin 68
Slide 7: Revenue by Product Category
GENTHERM INCORPORATED REVENUE BY PRODUCT CATEGORY (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2018 2017 % Diff. 2018 2017 % Diff. Climate Control Seat (CCS) $ 98,033 $ 93,397 5.0 % $ 374,816 $ 387,961 (3.4 ) % Seat Heaters 70,173 78,067 (10.1 ) % 305,337 307,309
Slide 8: Reconciliation of Net Income to Adjusted EBITDA
GENTHERM INCORPORATED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Net income (loss) $ 12,629 $ (5,242 ) $ 41,899 $ 35,227 Add Back: Income tax expense 6,413 23,795 16,220 34,028 Interest expense
Slide 9: Acquisition Transaction Expenses, Purchase Accounting Impacts and Other Effects
GENTHERM INCORPORATED ACQUISITION TRANSACTION EXPENSES, PURCHASE ACCOUNTING IMPACTS AND OTHER EFFECTS (Unaudited and in thousands, except per share data) Three Months Ended Full Year December 31, December 31, Future Full Year Periods (estimated) 2018 2017 2018 2017 2019 2020 2021 Thereafter Transact
Slide 10: Consolidated Balance Sheets
GENTHERM INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) December 31, 2018 December 31, 2017 ASSETS Current Assets: Cash and cash equivalents $ 39,620 $ 103,172 Accounts receivable, less allowance of $851 and $973, respectively 166,858 185,058 Inventory: Raw ma
Slide 11: Consolidated Statements of Cash Flows
GENTHERM INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Year Ended December 31, 2018 2017 Operating Activities: Net income $ 41,899 $ 35,227 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 50,638 44,972 Deferr