Slide 1: Gentherm Reports 2019 Fourth Quarter and Full Year Results
Increased Operating Income by 16% in 2019 Secured $1.5 Billion in Automotive Awards in 2019 , including a Record Level in Q4 2020 Guidance Established NORTHVILLE, Michigan, February 19, 2020 /Global Newswire/ -- Gentherm (NASDAQ:THRM), a global market leader and developer of innovative thermal manag
Slide 2: 2019 Fourth Quarter Financial Review
2019 Fourth Quarter Financial Review Product revenues for the fourth quarter of 2019 decreased $25.6 million, or 10.0%, as compared with the prior-year period. Excluding the impact of foreign currency translation and divested assets, product revenues declined 2.9% year over year. Excluding the impac
Slide 3: Income tax and full year revenue and EPS discussion
Income tax expense in the 2019 fourth quarter was $2.4 million, as compared with $6.4 million in the prior-year period. Adjusting for the $5.9 million non-deductible impairment loss associated with GPT, the effective tax rate for the quarter was 13.0%. This rate differed from the Federal statutory r
Slide 4: Full-year 2020 guidance
The Company is providing the following guidance for full-year 2020, excluding divested assets: • Product revenues are expected to change between down 1% and up 3%, excluding the impact of foreign currency, with year-over-year growth gradually increasing as the year progresses • Gross margin rate bet
Slide 5: About Gentherm and forward-looking statements
systems and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets.
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, 2019 2018 (1) 2019 2018 (1) Product revenues $ 230,381 $ 256,015 $ 971,684 $ 1,048,505 Cost of sales 164,759 185,195 683,349 743,647 Gross
Slide 7: Revenue by Product Category
GENTHERM INCORPORATED REVENUE BY PRODUCT CATEGORY (Unaudited, in thousands) Three Months Ended December 31, Year Ended December 31, 2019 2018 (1) % Diff. 2019 2018 (1) % Diff. Climate Control Seat (CCS) $ 88,431 $ 97,754 (9.5 )% $ 359,355 $ 373,945 (3.9 )% Seat Heaters 65,596 70,173 (6.5 )% 284,174
Slide 8: Reconciliation of Net Income to Adjusted EBITDA
GENTHERM INCORPORATED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (In thousands) (Unaudited) Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Net income $ 10,454 $ 12,629 $ 37,506 $ 41,899 Add Back: Income tax expense 2,431 6,413 21,645 16,220 Interest expense, net 1,0
Slide 9: Forward-looking non-GAAP measures
Non-GAAP measures referenced in this release may include estimates of future performance . Such forward-looking non-GAAP measures may differ significantly from the corresponding GAAP measures, due to depreciation and amortization, tax expense, and/or interest expense, some or all of which management
Slide 10: 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 December 31, Year Ended December 31, Future Full Year Periods (estimated) 2019 2018 2019 2018 2020 2021 2022 Thereafter Transacti
Slide 11: Consolidated Balance Sheets
GENTHERM INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) December 31, 2019 December 31, 2018 ASSETS Current Assets: Cash and cash equivalents $ 50,443 $ 39,620 Restricted cash 2,505 — Accounts receivable, less allowance of $1,193 and $851, respectively 159,710
Slide 12: Consolidated Statements of Cash Flows
GENTHERM INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Year Ended December 31, 2019 2018 Operating Activities: Net income $ 37,506 $ 41,899 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 44,246 50,638 Deferr