Garrett Motion Inc. (Nasdaq: GTX) (the "Company"),
a leading differentiated automotive technology provider, today
announced its financial results for the three and twelve months
ended December 31, 2023.
$ millions (unless otherwise noted) |
|
Q4 2023 |
|
Q4 2022 |
|
Full Year 2023 |
|
Full Year 2022 |
Net sales |
|
945 |
|
898 |
|
3,886 |
|
3,603 |
Cost of goods sold |
|
756 |
|
737 |
|
3,130 |
|
2,920 |
Gross profit |
|
189 |
|
161 |
|
756 |
|
683 |
Gross profit % |
|
20.0% |
|
17.9% |
|
19.5% |
|
19.0% |
Selling, general and administrative expenses |
|
69 |
|
52 |
|
247 |
|
216 |
Income before taxes |
|
68 |
|
135 |
|
347 |
|
496 |
Net income |
|
52 |
|
112 |
|
261 |
|
390 |
Net income margin |
|
5.5% |
|
12.5% |
|
6.7% |
|
10.8% |
Adjusted EBITDA* |
|
145 |
|
140 |
|
635 |
|
570 |
Adjusted EBITDA margin* |
|
15.3% |
|
15.6% |
|
16.3% |
|
15.8% |
Net cash provided by operating activities |
|
135 |
|
137 |
|
465 |
|
375 |
Adjusted free cash flow* |
|
137 |
|
132 |
|
422 |
|
313 |
* See reconciliations to the nearest GAAP
measure in pages 6-13
“Garrett delivered great performance in 2023,
with a strong fourth quarter close achieving full-year performance
above midpoint guidance across all financial metrics with record
Net sales, a strong Net income and record Adjusted EBITDA,” said
Garrett President and CEO, Olivier Rabiller. “We accomplished this
while simplifying our capital structure, de-levering, and executing
share repurchases, demonstrating our ability to generate and deploy
cash in a wise and impactful way for our shareholders.”
“Importantly, we have strengthened our
leadership position. During 2023, Garrett expanded its turbo
offerings in hybrid and alternative fuel applications, winning two
additional high-volume applications for electric compressors and
launching our first Hydrogen Internal Combustion Engine ("H2ICE")
application for commercial vehicles. At the same time, we are
building momentum with our zero emission technologies through
differentiated breakthrough solutions for electric vehicles in
high-speed powertrain, game changing centrifugal E-Cooling
compressors, and the broadest range of fuel cell compressors in the
industry. We remain committed to our target of $1 billion of
revenue from zero emission technologies by 2030.”
“Looking ahead to 2024, we expect a flat to down
environment for the industry and to deliver financial performance
in line with 2023 all while growing our funding for innovation and
zero emissions products. This reaffirms Garrett's commitment to
perform in stable and challenging times. Additionally, today we are
announcing the authorization of a new share repurchase program of
$350 million for 2024 supported by our continued strong cash flow
generation.”
Results of Operations
Net sales for the fourth
quarter of 2023 were $945 million, representing an increase of
5% (including a favorable impact of $19 million or 2% due to
foreign currency translation) compared with $898 million in the
fourth quarter of 2022. This increase was driven by strong ramp ups
in gasoline applications in China and North America, an increase in
diesel production volumes on incumbent platforms primarily in
Europe and favorable foreign currency translational impact. These
increases were partially offset by demand softness for commercial
vehicle applications due to global macroeconomic conditions as
interest rates rose across the globe.
Cost of goods sold for the
fourth quarter of 2023 was $756 million compared with $737 million
in the fourth quarter of 2022, primarily driven by higher sales
volumes and foreign currency impacts which contributed to increases
of $55 million and $13 million, respectively. Research and
Development ("R&D") costs also increased $2 million, reflecting
Garrett's continued investment in new technologies. These increases
were partially offset by lower costs from $26 million of higher
productivity net of labor inflation and repositioning costs, $13
million of favorable product mix and $12 million of commodity and
transportation deflation.
Gross profit totaled $189
million for the fourth quarter of 2023 as compared to $161 million
in the fourth quarter of 2022, with a gross profit percentage for
the fourth quarter of 2023 of 20.0% as compared to 17.9% in the
fourth quarter of 2022. The increase in gross profit was primarily
driven by $33 million of higher productivity net of labor inflation
and repositioning costs, $20 million from higher sales volumes, $12
million of lower costs due to deflation, and $6 million of
favorable foreign currency impacts. These increases in gross profit
were partially offset by $33 million of unfavorable impacts from
product mix due to growth in small-engine gasoline applications, $8
million of decreased pricing net of inflation recovery from
customer pass-through agreements, and $2 million of higher R&D
costs as discussed above.
Selling, general and
administrative (“SG&A”) expenses for the fourth
quarter of 2023 increased to $69 million from $52 million in the
fourth quarter of 2022. The increase compared with the prior year
was mainly due to $4 million of higher incentive compensation, $6
million of higher repositioning costs, $4 million of higher
professional service expenses, and $3 million of unfavorable
foreign currency translation and transactional impacts.
Interest expense in the fourth
quarter of 2023 was $55 million as compared to $11 million in the
fourth quarter of 2022. The increase was primarily driven by $19
million of higher interest expense from our new $700 million term
loan B (the "2023 Dollar Term Facility") and increased market
interest rates, as well as $23 million of unfavorable impacts from
the marked-to market remeasurement on our interest rate swap
contracts.
Non-operating income for the
fourth quarter of 2023 was $5 million as compared to $38 million in
the fourth quarter of 2022, driven by a $26 million decrease in the
non-service components of net periodic pension benefits and $8
million of unfavorable foreign currency transactional impacts.
Tax expense for the fourth
quarter of 2023 was $16 million as compared to $23 million in the
fourth quarter of 2022, mainly driven by current year tax benefits
in Switzerland and settlements related to prior year taxes in
certain jurisdictions.
Net income for the fourth
quarter of 2023 was $52 million as compared to $112 million in the
fourth quarter of 2022 primarily due to $21 million of higher
interest expense, $33 million of lower non-operating income and $23
million unfavorable impacts from marked-to-market remeasurement of
interest derivatives, partially offset by $28 million of higher
gross profit, as discussed above.
Net cash provided by operating
activities totaled $135 million in the fourth quarter of
2023 as compared to $137 million in the fourth quarter of 2022,
primarily due to a decrease of $9 million in net income excluding
non-cash charges, and $38 million from changes in other assets and
liabilities, partially offset by an increase of $45 million from
changes in working capital.
Non-GAAP Financial Measures
Adjusted EBITDA increased to
$145 million in the fourth quarter of 2023 as compared to $140
million in the fourth quarter of 2022. The increase was mainly due
to higher volumes primarily from gasoline and diesel, variable and
fixed cost productivity, and commodity and transportation
deflation. These increases were partially offset by pricing net of
inflation pass-through and unfavorable foreign exchange impact.
Adjusted free cash flow, which
excludes capital structure transformation expenses and cash paid
for repositioning and factoring costs, was $137 million in the
fourth quarter of 2023 as compared to $132 million in the fourth
quarter of 2022. The increase was primarily driven by $46 million
of working capital contribution (net of factoring) and $5 million
of higher adjusted EBITDA. This improvement was partially offset by
$18 million in higher cash taxes due to timing, $16 million of
higher cash paid for interest due to the 2023 Dollar Term Facility
and increased interest rates, and $13 million of additional capital
expenditures as compared to prior year.
Liquidity and Capital
Resources
As of December 31, 2023, Garrett had $829
million in available liquidity, including $259 million in cash and
cash equivalents and $570 million of undrawn commitments under its
revolving credit facility. As of December 31, 2022, Garrett had
$721 million in available liquidity, including $246 million in cash
and cash equivalents and $475 million undrawn commitments under its
revolving credit facility.
As of December 31, 2023, total principal amount
of debt outstanding amounted to $1,696 million, up from $1,186
million as of December 31, 2022, primarily due to the 2023 Dollar
Term Facility and foreign exchange impacts.
During the fourth quarter of 2023, we
repurchased $35 million of common stock under our authorized share
repurchase program. For the full year 2023, total repurchases of
common stock equaled $213 million at an average price of $7.57 per
share. Our share repurchase program expired as of December 31,
2023.
On February 13, 2024, the Board of Directors
authorized a new $350 million share repurchase program valid until
December 31, 2024. The Company may repurchase shares from time to
time under the program through various methods, including in open
market transactions, block trades, privately negotiated
transactions, and otherwise. The timing, as well as the number and
value of shares repurchased under the program, will depend on a
variety of factors. The Company is not obligated to purchase any
shares under the repurchase program, and the program may be
suspended, modified, or discontinued at any time without prior
notice.
Full Year 2024 Outlook
Garrett is providing the following outlook for
the full year 2024 for certain GAAP and Non-GAAP financial
measures.
|
Full Year 2024 Outlook |
Net sales (GAAP) |
$3.80 billion to $3.95 billion |
Net sales growth at constant currency (Non-GAAP)* |
-2% to +2% |
Net income (GAAP) |
$230 million to $275 million |
Adjusted EBITDA (Non-GAAP)* |
$590 million to $650 million |
Net cash provided by operating activities (GAAP) |
$370 million to $470 million |
Adjusted free cash flow (Non-GAAP)* |
$325 million to $425 million |
* See reconciliations to the nearest GAAP
measures on pages 6-13.
Garrett’s full year 2024 outlook, as of February
15, 2024, includes the following expectations:
- 2024 light vehicle industry production flat to down 1% from
2023;
- 2024 commercial vehicle industry, including both on- and
off-highway, up 2% from 2023;
- 2024 average light vehicle battery electric vehicle penetration
of 15%;
- 2024 Euro/dollar assumption of 1.08 EUR to 1.00 USD;
- RD&E investment at 4.5% of sales in 2024, with
approximately 60% on zero emission technologies;
- Capital expenditures at 2.2% of sales, > 30% on zero
emission technologies.
Conference Call
Garrett plans to issue financial results for the
fourth quarter and full year 2023 on Thursday, February 15, 2024
before the open of market trading. Garrett will also hold a
conference call the same day at 8:30 am EDT / 2:30 pm CET. To
participate on the conference call, please dial +1-877-883-0383
(US) or +1-412-902-6506 (international) and use the passcode
2659811.
The conference call will also be broadcast over
the internet and include a slide presentation. To access the
webcast and supporting material, please visit the investor
relations section of the Garrett Motion website at
http://investors.garrettmotion.com/. A replay of the conference
call will be available by dialing +1-877-344-7529 (US) or
+1-412-317-0088 (international) using the access code 1678098. The
webcast will also be archived on Garrett’s website.
Forward-Looking Statements
This release contains “forward-looking
statements” within the Private Securities Reform Act of 1995. All
statements, other than statements of fact, that address activities,
events or developments that we or our management intend, expect,
project, believe or anticipate will or may occur in the future are
forward-looking statements including without limitation our
statements regarding inflationary pressure on Garrett's business
and management's inflation mitigation strategies, financial results
and financial conditions, industry trends and anticipated demand
for our products, Garrett’s strategy, anticipated supply
constraints, anticipated developments in emissions standards,
trends including with respect to production volatility and volume,
Garrett's capital structure including our share repurchase program,
new product development including zero emissions technologies and
capital deployment plans for the future including expected R&D
expenditures, anticipated impacts of partnerships with third
parties, and Garrett's outlook for 2024. Although we believe
forward-looking statements are based upon reasonable assumptions,
such statements involve known and unknown risks, uncertainties, and
other factors, which may cause the actual results or performance of
Garrett to be materially different from any future results or
performance expressed or implied by such forward-looking
statements. Such risks and uncertainties include but are not
limited to those described in our annual report on Form 10-K for
the year ended December 31, 2023, as well as our other filings with
the Securities and Exchange Commission, under the headings “Risk
Factors” and “Cautionary Note Regarding Forward-Looking
Statements.” You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
document. Forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by our forward-looking
statements.
Non-GAAP Financial Measures
This release includes the following Non-GAAP
financial measures which are not calculated in accordance with
generally accepted accounting principles in the United States
(“GAAP”): constant currency sales growth, EBITDA, Adjusted EBITDA,
Adjusted EBITDA margin, and Adjusted free cash flow. The Non-GAAP
financial measures provided herein are adjusted for certain items
as presented in the Appendix containing Non-GAAP Reconciliations
and may not be directly comparable to similar measures used by
other companies in our industry, as other companies may define such
measures differently. Management believes that, when considered
together with reported amounts, these measures are useful to
investors and management in understanding our ongoing operations
and analysis of ongoing operating trends. Garrett believes that the
Non-GAAP measures presented herein are important indicators of
operating performance because they exclude the effects of certain
items, therefore making them more closely reflect our operational
performance. These metrics should be considered in addition to, and
not as replacements for, the most comparable GAAP measure. For
additional information with respect to our Non-GAAP financial
measures, see the Appendix to this presentation and our annual
report on Form 10-K for the year ended December 31, 2023.
About Garrett Motion Inc.
Garrett Motion is a differentiated technology
leader, serving automotive customers worldwide for more than 70
years. Known for its global leadership in turbocharging, the
company develops transformative technologies for vehicles to become
cleaner and more efficient. Its advanced technologies help reduce
emissions and reach zero emissions via passenger and commercial
vehicle applications – for on and off-highway use. Its portfolio
includes turbochargers, electric turbos (E-Turbo) and electric
compressors (E-Compressor) for both ICE and hybrid powertrains. In
the zero emissions vehicle category, it offers fuel cell
compressors for hydrogen fuel cell vehicles (FCEVs) as well as
electric propulsion and thermal management systems for battery
electric vehicles (BEVs). It boasts five R&D centers, 13
manufacturing sites and a team of 9,300 located in more than 20
countries. Its mission is to further advance motion through unique,
differentiated innovations. More information at
www.garrettmotion.com.
Contacts: |
|
MEDIA |
INVESTOR RELATIONS |
Maria Eugenia Santiago |
Eric Birge |
1.734.386.6593 |
1.734.392.5504 |
Maria.SantiagoEchandi@garrettmotion.com |
Eric.Birge@garrettmotion.com |
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Dollars in millions, except per share
amounts) |
Net sales |
$ |
945 |
|
|
$ |
898 |
|
|
$ |
3,886 |
|
|
$ |
3,603 |
|
Cost of goods sold |
|
756 |
|
|
|
737 |
|
|
|
3,130 |
|
|
|
2,920 |
|
Gross profit |
|
189 |
|
|
|
161 |
|
|
|
756 |
|
|
|
683 |
|
Selling, general and administrative expenses |
|
69 |
|
|
|
52 |
|
|
|
247 |
|
|
|
216 |
|
Other expense, net |
|
2 |
|
|
|
— |
|
|
|
5 |
|
|
|
2 |
|
Interest expense |
|
55 |
|
|
|
11 |
|
|
|
159 |
|
|
|
8 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Non-operating (income) expense |
|
(5 |
) |
|
|
(38 |
) |
|
|
(2 |
) |
|
|
(47 |
) |
Reorganization items, net |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
Income before taxes |
|
68 |
|
|
|
135 |
|
|
|
347 |
|
|
|
496 |
|
Tax expense |
|
16 |
|
|
|
23 |
|
|
|
86 |
|
|
|
106 |
|
Net income |
|
52 |
|
|
|
112 |
|
|
|
261 |
|
|
|
390 |
|
Less: preferred stock dividends |
|
— |
|
|
|
(40 |
) |
|
|
(80 |
) |
|
|
(157 |
) |
Less: preferred stock deemed dividends |
|
— |
|
|
|
— |
|
|
|
(232 |
) |
|
|
— |
|
Net income (loss) available for distribution |
$ |
52 |
|
|
$ |
72 |
|
|
$ |
(51 |
) |
|
$ |
233 |
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share |
|
|
|
|
|
|
|
Basic |
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
(0.31 |
) |
|
$ |
0.75 |
|
Diluted |
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
(0.31 |
) |
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
Basic |
|
240,334,168 |
|
|
|
64,825,467 |
|
|
|
166,595,397 |
|
|
|
64,708,635 |
|
Diluted |
|
242,294,842 |
|
|
|
65,460,507 |
|
|
|
166,595,397 |
|
|
|
65,075,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Dollars in millions) |
Net income |
$ |
52 |
|
|
$ |
112 |
|
|
$ |
261 |
|
|
$ |
390 |
|
Foreign exchange translation adjustment |
|
(21 |
) |
|
|
(14 |
) |
|
|
(13 |
) |
|
|
(1 |
) |
Defined benefit pension plan adjustment, net of tax |
|
(2 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
(9 |
) |
Changes in fair value of effective cash flow hedges, net of
tax |
|
(12 |
) |
|
|
(20 |
) |
|
|
(15 |
) |
|
|
6 |
|
Changes in fair value of net investment hedges, net of tax |
|
(27 |
) |
|
|
(43 |
) |
|
|
(9 |
) |
|
|
44 |
|
Total other comprehensive (loss) income, net of tax |
|
(62 |
) |
|
|
(86 |
) |
|
|
(39 |
) |
|
|
40 |
|
Comprehensive (loss) income |
$ |
(10 |
) |
|
$ |
26 |
|
|
$ |
222 |
|
|
$ |
430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
December 31, 2023 |
|
December 31, 2022 |
|
(Dollars in millions) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
259 |
|
|
$ |
246 |
|
Restricted cash |
|
1 |
|
|
|
2 |
|
Accounts, notes and other receivables – net |
|
808 |
|
|
|
803 |
|
Inventories – net |
|
263 |
|
|
|
270 |
|
Other current assets |
|
75 |
|
|
|
110 |
|
Total current assets |
|
1,406 |
|
|
|
1,431 |
|
Investments and long-term receivables |
|
29 |
|
|
|
30 |
|
Property, plant and equipment – net |
|
477 |
|
|
|
470 |
|
Goodwill |
|
193 |
|
|
|
193 |
|
Deferred income taxes |
|
216 |
|
|
|
232 |
|
Other assets |
|
206 |
|
|
|
281 |
|
Total assets |
$ |
2,527 |
|
|
$ |
2,637 |
|
LIABILITIES |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,074 |
|
|
$ |
1,048 |
|
Current maturities of long-term debt |
|
7 |
|
|
|
7 |
|
Accrued liabilities |
|
293 |
|
|
|
320 |
|
Total current liabilities |
|
1,374 |
|
|
|
1,375 |
|
Long-term debt |
|
1,643 |
|
|
|
1,148 |
|
Deferred income taxes |
|
27 |
|
|
|
25 |
|
Other liabilities |
|
218 |
|
|
|
205 |
|
Total liabilities |
$ |
3,262 |
|
|
$ |
2,753 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
EQUITY (DEFICIT) |
|
|
|
Series A Preferred Stock, par value $0.001; zero and 245,089,671
shares issued and outstanding as of December 31, 2023 and 2022,
respectively |
$ |
— |
|
|
$ |
— |
|
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000
shares authorized, 238,543,624 and 64,943,238 issued and
238,249,056 and 64,832,609 outstanding as of December 31, 2023 and
2022, respectively |
|
— |
|
|
|
— |
|
Additional paid – in capital |
|
1,190 |
|
|
|
1,333 |
|
Retained deficit |
|
(1,922 |
) |
|
|
(1,485 |
) |
Accumulated other comprehensive income |
|
(3 |
) |
|
|
36 |
|
Total deficit |
|
(735 |
) |
|
|
(116 |
) |
Total liabilities and deficit |
$ |
2,527 |
|
|
$ |
2,637 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Year Ended December 31, |
|
2023 |
|
2022 |
|
(Dollars in millions) |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
261 |
|
|
$ |
390 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Deferred income taxes |
|
24 |
|
|
|
46 |
|
Depreciation |
|
90 |
|
|
|
84 |
|
Amortization of deferred issuance costs |
|
20 |
|
|
|
8 |
|
Interest payments, net of debt discount accretion |
|
— |
|
|
|
(19 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
5 |
|
Loss on remeasurement of forward purchase contract |
|
13 |
|
|
|
— |
|
Foreign exchange loss |
|
(15 |
) |
|
|
(1 |
) |
Stock compensation expense |
|
14 |
|
|
|
11 |
|
Pension expense |
|
(1 |
) |
|
|
(28 |
) |
Unrealized loss (gain) on derivatives |
|
51 |
|
|
|
(65 |
) |
Other |
|
7 |
|
|
|
1 |
|
Changes in assets and liabilities: |
|
|
|
Accounts, notes and other receivables |
|
1 |
|
|
|
(102 |
) |
Inventories |
|
12 |
|
|
|
(48 |
) |
Other assets |
|
(2 |
) |
|
|
34 |
|
Accounts payable |
|
8 |
|
|
|
108 |
|
Accrued liabilities |
|
(8 |
) |
|
|
(17 |
) |
Other liabilities |
|
(10 |
) |
|
|
(32 |
) |
Net cash provided by operating activities |
$ |
465 |
|
|
$ |
375 |
|
Cash flows from investing activities: |
|
|
|
Expenditures for property, plant and equipment |
|
(83 |
) |
|
|
(91 |
) |
Proceeds from cross-currency swap contracts |
|
28 |
|
|
|
— |
|
Net cash used for investing activities |
$ |
(55 |
) |
|
$ |
(91 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from issuance of long-term debt, net of deferred financing
costs |
|
667 |
|
|
|
— |
|
Payments of long-term debt |
|
(207 |
) |
|
|
(7 |
) |
Redemption of Series B Preferred Stock |
|
— |
|
|
|
(381 |
) |
Repurchases of Series A Preferred Stock |
|
(580 |
) |
|
|
(7 |
) |
Repurchases of Common Stock |
|
(213 |
) |
|
|
— |
|
Payments of Additional Amounts for conversion of Series A Preferred
Stock |
|
(25 |
) |
|
|
— |
|
Payments for preference dividends |
|
(42 |
) |
|
|
(83 |
) |
Payments for debt and revolving facility financing costs |
|
(2 |
) |
|
|
(4 |
) |
Other |
|
(1 |
) |
|
|
— |
|
Net cash used for financing activities |
$ |
(403 |
) |
|
$ |
(482 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents
and restricted cash |
|
5 |
|
|
|
(18 |
) |
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
12 |
|
|
|
(216 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
248 |
|
|
|
464 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
260 |
|
|
$ |
248 |
|
Supplemental cash flow disclosure: |
|
|
|
Income taxes paid (net of refunds) |
|
60 |
|
|
|
42 |
|
Interest paid |
|
89 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income to
Adjusted EBITDA(1)
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Dollars in millions) |
Net income — GAAP |
$ |
52 |
|
|
$ |
112 |
|
|
$ |
261 |
|
|
$ |
390 |
|
Interest expense, net of interest income |
|
54 |
|
|
|
11 |
|
|
|
152 |
|
|
|
6 |
|
Tax expense |
|
16 |
|
|
|
23 |
|
|
|
86 |
|
|
|
106 |
|
Depreciation |
|
24 |
|
|
|
20 |
|
|
|
90 |
|
|
|
84 |
|
EBITDA (Non-GAAP) |
|
146 |
|
|
|
166 |
|
|
|
589 |
|
|
|
586 |
|
Reorganization items, net (2) |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
Stock compensation expense (3) |
|
2 |
|
|
|
3 |
|
|
|
14 |
|
|
|
11 |
|
Repositioning costs |
|
(1 |
) |
|
|
— |
|
|
|
13 |
|
|
|
4 |
|
Foreign exchange loss (gain) on debt, net of related hedging loss
(gain) |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Discounting costs on factoring |
|
1 |
|
|
|
— |
|
|
|
4 |
|
|
|
2 |
|
Other non-operating income (4) |
|
(2 |
) |
|
|
(30 |
) |
|
|
(6 |
) |
|
|
(41 |
) |
Capital structure transformation expenses (5) |
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
— |
|
Adjusted EBITDA (Non-GAAP) |
$ |
145 |
|
|
$ |
140 |
|
|
$ |
635 |
|
|
$ |
570 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
945 |
|
|
$ |
898 |
|
|
$ |
3,886 |
|
|
$ |
3,603 |
|
|
|
|
|
|
|
|
|
Net income margin |
|
5.5 |
% |
|
|
12.5 |
% |
|
|
6.7 |
% |
|
|
10.8 |
% |
Adjusted EBITDA margin (Non-GAAP) (6) |
|
15.3 |
% |
|
|
15.6 |
% |
|
|
16.3 |
% |
|
|
15.9 |
% |
(1) |
We evaluate performance on the basis of EBITDA and Adjusted EBITDA.
We define “EBITDA” as our net income calculated in accordance with
U.S. GAAP, plus the sum of interest expense net of interest income,
tax expense and depreciation. We define “Adjusted EBITDA” as
EBITDA, plus the sum of net reorganization items, stock
compensation expense, repositioning costs, discounting costs on
factoring, other non-operating income and capital structure
transformation expenses. We believe that EBITDA and Adjusted EBITDA
are important indicators of operating performance and provide
useful information for investors because:
- EBITDA and Adjusted EBITDA exclude the effects of income taxes,
as well as the effects of financing and investing activities by
eliminating the effects of interest-related charges and
depreciation expenses and therefore more closely measure our
operational performance; and
- certain adjustment items, while periodically affecting our
results, may vary significantly from period to period and have
disproportionate effect in a given period, which affects the
comparability of our results.
In addition, our management may use Adjusted EBITDA in setting
performance incentive targets to align performance measurement with
operational performance. |
(2) |
The Company applied ASC 852 for periods subsequent to September 20,
2020, the date the Company and certain of its subsidiaries each
filed a voluntary petition for relief under Chapter 11 of title 11
of the United States Code, to distinguish transactions and events
that were directly associated with the Company’s reorganization
from the ongoing operations of the business. Accordingly, certain
expenses and gains incurred related to these transactions and
events were recorded within Reorganization items, net in the
Consolidated Statements of Operations. |
(3) |
Stock compensation expense includes only non-cash expenses. |
(4) |
Reflects the non-service component of net periodic pension costs
and other income that are non-recurring or not considered directly
related to the Company's operations. |
(5) |
Includes the loss on remeasurement of the agreements to repurchase
shares of the Company's Series A Preferred Stock from certain of
the Company's investors in connection with the Company's capital
structure transformation transactions, well as third-party legal
and advisory fees that are directly attributable to such
transactions. |
(6) |
Adjusted EBITDA margin represents Adjusted EBITDA as a percentage
of net sales. |
|
|
Reconciliation of Constant Currency
Sales % Change(1)
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Garrett |
|
|
|
|
|
|
|
Reported sales % change |
5 |
% |
|
4 |
% |
|
8 |
% |
|
(1 |
)% |
Less: Foreign currency translation |
2 |
% |
|
(11 |
)% |
|
0 |
% |
|
(9 |
)% |
Constant currency sales % change |
3 |
% |
|
15 |
% |
|
8 |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
Gasoline |
|
|
|
|
|
|
|
Reported sales % change |
12 |
% |
|
6 |
% |
|
16 |
% |
|
5 |
% |
Less: Foreign currency translation |
1 |
% |
|
(11 |
)% |
|
(1 |
)% |
|
(8 |
)% |
Constant currency sales % change |
11 |
% |
|
17 |
% |
|
17 |
% |
|
13 |
% |
|
|
|
|
|
|
|
|
Diesel |
|
|
|
|
|
|
|
Reported sales % change |
9 |
% |
|
1 |
% |
|
5 |
% |
|
(9 |
)% |
Less: Foreign currency translation |
4 |
% |
|
(12 |
)% |
|
2 |
% |
|
(10 |
)% |
Constant currency sales % change |
5 |
% |
|
13 |
% |
|
3 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
Commercial vehicles |
|
|
|
|
|
|
|
Reported sales % change |
(15 |
)% |
|
4 |
% |
|
(3 |
)% |
|
(5 |
)% |
Less: Foreign currency translation |
1 |
% |
|
(10 |
)% |
|
(2 |
)% |
|
(8 |
)% |
Constant currency sales % change |
(16 |
)% |
|
14 |
% |
|
(1 |
)% |
|
3 |
% |
|
|
|
|
|
|
|
|
Aftermarket |
|
|
|
|
|
|
|
Reported sales % change |
0 |
% |
|
8 |
% |
|
3 |
% |
|
9 |
% |
Less: Foreign currency translation |
2 |
% |
|
(6 |
)% |
|
0 |
% |
|
(6 |
)% |
Constant currency sales % change |
(2 |
)% |
|
14 |
% |
|
3 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
Other Sales |
|
|
|
|
|
|
|
Reported sales % change |
54 |
% |
|
(7 |
)% |
|
15 |
% |
|
(11 |
)% |
Less: Foreign currency translation |
6 |
% |
|
(10 |
)% |
|
1 |
% |
|
(9 |
)% |
Constant currency sales % change |
48 |
% |
|
3 |
% |
|
14 |
% |
|
(2 |
)% |
(1) |
We define constant currency sales growth as the year-over-year
change in reported sales relative to the comparable period,
excluding the impact on sales from foreign currency translation. We
believe this measure is useful to investors and management in
understanding our ongoing operations and in analysis of ongoing
operating trends. |
|
|
Reconciliation of Cash Flow from
Operations to Adjusted Free Cash
Flow(1)
|
Three Months Ended December
31, |
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Dollars in millions) |
Net cash provided by operating activities
(GAAP) |
$ |
135 |
|
|
$ |
137 |
|
|
$ |
465 |
|
|
$ |
375 |
|
Expenditures for property, plant and equipment |
|
(26 |
) |
|
|
(13 |
) |
|
|
(83 |
) |
|
|
(91 |
) |
Net cash provided by operating activities less expenditures for
property, plant and equipment |
|
109 |
|
|
|
124 |
|
|
|
382 |
|
|
|
284 |
|
Chapter 11 professional service costs |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
5 |
|
Capital structure transformation expenses |
|
1 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
Cash payments for repositioning |
|
2 |
|
|
|
— |
|
|
|
11 |
|
|
|
4 |
|
Proceeds from cross currency swap contracts |
|
19 |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
Factoring and P-notes |
|
6 |
|
|
|
7 |
|
|
|
2 |
|
|
|
20 |
|
Adjusted free cash flow (Non-GAAP) (1) |
$ |
137 |
|
|
$ |
132 |
|
|
$ |
422 |
|
|
$ |
313 |
|
(1) |
Adjusted free cash flow reflects an additional way of viewing
liquidity that management believes is useful to investors in
analyzing the Company’s ability to service and repay its debt. The
Company defines adjusted free cash flow as cash flow provided from
operating activities less capital expenditures and additionally
adjusted for other discretionary items including cash flow impacts
for capital structure transformation expenses, factoring and
guaranteed bank notes activity. |
|
|
Full Year 2024 Outlook Reconciliation of
Reported Net Sales to Net Sales Growth at Constant
Currency
|
2024 Full Year |
|
Low End |
|
High End |
Reported net sales (% change) |
(2 |
)% |
|
2 |
% |
Foreign currency translation |
— |
% |
|
— |
% |
Full year 2024 Outlook Net sales growth at constant
currency (Non-GAAP) |
(2 |
)% |
|
2 |
% |
|
|
|
|
|
Full Year 2024 Outlook Reconciliation of
Net Income to Adjusted EBITDA
|
2024 Full Year |
|
Low End |
|
High End |
|
(Dollars in millions) |
Net income - GAAP |
$ |
230 |
|
$ |
275 |
Interest expense, net of interest income * |
|
146 |
|
|
146 |
Tax expense |
|
78 |
|
|
93 |
Depreciation |
|
92 |
|
|
92 |
Full year 2024 Outlook EBITDA (Non-GAAP) |
|
546 |
|
|
606 |
Stock compensation expense |
|
18 |
|
|
18 |
Repositioning costs |
|
26 |
|
|
26 |
Full Year 2024 Outlook Adjusted EBITDA
(Non-GAAP) |
$ |
590 |
|
$ |
650 |
* Excludes the
effects of marked-to-market fluctuations from our interest rate
swap contracts
Full Year 2024 Outlook Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow
|
2024 Full Year |
|
Low End |
|
High End |
|
(Dollars in millions) |
Net cash provided by operating activities
(GAAP) |
$ |
370 |
|
|
$ |
470 |
|
Expenditures for property, plant and equipment |
|
(87 |
) |
|
|
(87 |
) |
Net cash provided by operating activities less expenditures for
property, plant and equipment (Non-GAAP) |
|
283 |
|
|
|
383 |
|
Cash payments for repositioning |
|
26 |
|
|
|
26 |
|
Proceeds from cross currency swap contracts |
|
15 |
|
|
|
15 |
|
Capital structure transformation costs |
|
1 |
|
|
|
1 |
|
Full Year 2024 Outlook Adjusted free cash flow
(Non-GAAP) |
$ |
325 |
|
|
$ |
425 |
|
Garrett Motion (NASDAQ:GTX)
過去 株価チャート
から 7 2024 まで 7 2024
Garrett Motion (NASDAQ:GTX)
過去 株価チャート
から 7 2023 まで 7 2024