Slide 1: Gentherm Reports 2019 Third Quarter Results
Achieved Highest Gross Margin Rate in Nine Quarters Reduced Operating Expenses by over 9% Full-Year Profitability Guidance Maintained Despite Continued Challenging Automotive Environment NORTHVILLE, Michigan, October 29, 2019 /Global Newswire/ - Gentherm (NASDAQ:THRM), the global market leader of in
Slide 2: Third quarter financial review: segments, margin and expenses
The revenue decline in the Industrial segment resulted primarily from the absence of revenue in this year’s thir d quarter from the divested Cincinnati Sub-Zero (CSZ) industrial chamber business and lower sales in the Global Power Technologies (GPT) business, which has been classified as “assets hel
Slide 3: Full-year guidance and conference call
• Adjusted EBITDA is expected to be approximately 14% of product revenues • Full-year effective tax rate between 28% and 30% • Capital expenditures are expected to be approximately $30 million Conference Call As previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern T
Slide 4: Forward-looking statements and risks
described in or indicated by the forward-looking statements. Those risks include, but are not limited to, risks that: new products may not be feasible; sales may not increase; new competitors may arise or customers may develop their own products to replace the Company’s products; customer preference
Slide 5: Consolidated Condensed Statements of Income (Loss)
GENTHERM INCORPORATED CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS) (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 (1) 2019 2018 (1) Product revenues $ 240,056 $ 261,504 $ 741,303 $ 792,490 Cost of sales 165,364 185,8
Slide 6: Revenue by Product Category
GENTHERM INCORPORATED REVENUE BY PRODUCT CATEGORY (Unaudited, in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 (1) % Diff. 2019 2018 (1) % Diff. Climate Controlled Seat (CCS) $ 88,133 $ 97,578 (9.7 )% $ 270,924 $ 276,191 (1.9 )% Seat Heaters 71,030 70,768 0.4
Slide 7: Reconciliation of Net Income (Loss) to Adjusted EBITDA
GENTHERM INCORPORATED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net Income $ 15,887 $ (355 ) $ 27,052 $ 29,270 Add Back: Income tax expense 6,771 3,688 19,214 9,807 Interest e
Slide 8: Acquisition Transaction Expenses, Purchase Accounting Impacts and Other Effects
GENTHERM INCORPORATED ACQUISITION TRANSACTION EXPENSES, PURCHASE ACCOUNTING IMPACTS AND OTHER EFFECTS (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, Future Full Year Periods (estimated) 2019 2018 2019 2018 2019 2020 2021 2022 Therea
Slide 9: Consolidated Condensed Balance Sheets
GENTHERM INCORPORATED CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands, except share data) (Unaudited) September 30, 2019 December 31, 2018 ASSETS Current Assets: Cash and cash equivalents $ 45,200 $ 39,620 Restricted cash 2,504 — Accounts receivable, less allowance of $1,040 and $851, respective
Slide 10: Consolidated Condensed Statements of Cash Flows
GENTHERM INCORPORATED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2019 2018 Operating Activities: Net income $ 27,052 $ 29,270 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 33