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| 8-K - 8-K - Aptiv PLC | a8-kq32013earningsrelease.htm |
Exhibit 99.1
DELPHI REPORTS THIRD QUARTER 2013 FINANCIAL RESULTS
Highlights include:
• | Third quarter U.S. GAAP diluted earnings per share of $0.87 compared to $0.84 in the prior year; Year-to-date diluted earnings per share of $2.92 compared to $2.89 in the prior year |
• | Excluding special items, third quarter earnings of $0.97 per diluted share, an increase of 15% compared to $0.84 per diluted share in the prior year; Year-to-date diluted earnings of $3.28 compared to $2.93 per diluted share in the prior year |
• | Third quarter Adjusted Operating Income and Adjusted Operating Income margin of $428 million and 10.7%, compared with $370 million and 10.1% for the same period in 2012; Year-to-date Adjusted Operating Income and Adjusted Operating Income margin of $1,372 million and 11.2%, compared with $1,316 million and 11.2% for the same period in 2012 |
• | Third quarter Adjusted EBITDA and Adjusted EBITDA margin of $566 million and 14.1%, compared with $483 million and 13.2% for the same period in 2012; Year-to-date Adjusted EBITDA and Adjusted EBITDA margin of $1,773 million and 14.4%, compared with $1,656 million and 14.1% for the same period in 2012 |
• | Third quarter revenue of $4.0 billion, up 10% over the same period in 2012; up 3% adjusted for the impacts of currency, commodities, acquisitions and divestitures |
• | Generated year-to-date operating cash flow of $1,070 million |
• | Executed $120 million of share repurchases in the third quarter of 2013; share repurchases year-to-date of $362 million |
GILLINGHAM, England - Delphi Automotive PLC (NYSE: DLPH), a leading global vehicle components manufacturer, today reported third quarter 2013 revenues of $4.0 billion, an increase of 10% from the prior year period, reflecting continued strong growth in Asia and North America. Adjusted for the impacts of currency exchange, commodity movements, acquisitions and divestitures, revenue increased by 3% in the third quarter.
The Company reported third quarter U.S. GAAP net income of $271 million and earnings of $0.87 per diluted share, compared to $269 million and $0.84 per diluted share in the prior year period. The current year quarterly U.S. GAAP results include special items consisting of restructuring-related charges and acquisition-related integration costs. Excluding these special items, the Company reported adjusted third quarter earnings of $302 million, or $0.97 per diluted share, compared to adjusted earnings of $271 million, or $0.84 per diluted share in the prior year period.
Exhibit 99.1
"Overall we had a great quarter. Although we remain cautious, the European market seems to be stabilizing," said Rodney O'Neal, chief executive officer and president. "I continue to be optimistic about Delphi's future."
Third Quarter 2013 Results
The Company reported third quarter 2013 revenue of $4.0 billion, an increase of 3% compared to the third quarter of 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 10% in Asia and 9% in North America, offset by declines of 5% in Europe and 2% in South America.
Third quarter net income excluding restructuring, acquisition-related integration costs, and losses on extinguishment of debt ("Adjusted Net Income"), totaled $302 million, or $0.97 per diluted share, which includes the unfavorable impact of an increased effective tax rate and the favorable impact of a reduced share count. Adjusted Net Income in the prior year period was $271 million, or $0.84 per diluted share.
Third quarter earnings before interest expense, other income (expense), income tax expense, equity income, restructuring and acquisition integration costs ("Adjusted Operating Income") was $428 million, compared to $370 million in the prior year period. Adjusted Operating Income margin was 10.7% in the third quarter of 2013, an increase of 60 basis points compared with 10.1% in the prior year period.
Third quarter earnings before depreciation and amortization, interest expense, other income (expense), income tax expense, equity income, restructuring and acquisition integration costs (“Adjusted EBITDA”) was $566 million, compared to $483 million in the prior year period. Adjusted EBITDA margin increased 90 basis points in the third quarter of 2013 to 14.1%, compared with 13.2% in the prior year period. The increase in Adjusted EBITDA reflects the continued strong performance of our businesses in Asia and North America as well as the increased earnings from the acquisition of the Motorized Vehicles Division ("MVL"), partially offset by continued sales declines in Europe.
Interest expense for the third quarter totaled $34 million compared to $32 million in the prior year period. Tax expense in the third quarter of 2013 was $72 million, resulting in a U.S. GAAP effective tax rate of approximately 20%, compared to $52 million, or an effective rate of 15%, in the prior year period. The increase is primarily the result of the geographic mix of pretax earnings and an increase in discrete tax items, including the impacts of tax law changes, of approximately $10 million.
The Company generated net cash flow from operating activities of $398 million in the third quarter of 2013, compared to $414 million in the prior year period.
Year-to-Date 2013 Results
For the nine months ended September 30, 2013, the Company reported revenue of $12.3 billion, a decrease of 1% compared to the nine months ended September 30, 2012, adjusting for currency exchange, commodity movements, acquisitions and divestitures. This reflects growth of 9% in Asia, 4% in North America and 6% in South America, offset by a decline in Europe of 10%.
For the 2013 year-to-date period, Adjusted Net Income totaled $1,026 million, or $3.28 per diluted share, which includes the favorable impacts of a lower effective tax rate and reduced share count. Adjusted Net Income in the prior year period was $954 million, or $2.93 per diluted share.
The Company reported Adjusted Operating Income of $1,372 million for the nine months ended September 30, 2013, compared to $1,316 million in the prior year period. Adjusted Operating Income margin was 11.2% in the nine months ended September 30, 2013, compared with 11.2% in the prior year period.
2
Exhibit 99.1
For the nine months ended September 30, 2013, Adjusted EBITDA was $1,773 million, compared to $1,656 million in the prior year period. Adjusted EBITDA margin was 14.4% for the nine months ended September 30, 2013, compared with 14.1% in the prior year period. The increase in Adjusted EBITDA reflects the increased earnings from the acquisition of MVL, partially offset by sales declines in Europe.
Interest expense for the nine months ended September 30, 2013 totaled $106 million, comparable to $100 million in the prior year period. Additionally, the first quarter of 2013 included a net loss on retirement of debt totaling $39 million. Tax expense for the year-to-date 2013 was $182 million, resulting in a U.S. GAAP effective tax rate of approximately 16%, compared to $227 million, or an effective rate of 19%, in the prior year period. The improvement in 2013 primarily reflects the geographic mix of lower pretax earnings and tax planning initiatives.
The Company generated net cash flow from operating activities of $1,070 million in the nine months ended September 30, 2013, compared to $1,168 million in the prior year period. As of September 30, 2013, the Company had cash and cash equivalents of $1.1 billion and access to $1.5 billion in undrawn committed revolving bank facilities, and total debt of $2.4 billion.
Share Repurchase Program
During the third quarter of 2013, Delphi repurchased 2.12 million shares for approximately $120 million under its existing authorized share repurchase program, leaving approximately $285 million available for future share repurchases. Year-to-date, the Company has repurchased 7.42 million shares for approximately $362 million. All repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in capital and retained earnings.
Full Year 2013 Outlook
The Company's full year 2013 financial guidance is as follows:
(in millions, except per share amounts) | Previous Full Year 2013 | Current Full Year 2013 |
Adjusted Earnings Per Share | $4.22 - $4.45 | $4.25 - $4.35 |
Adjusted EBITDA | $2,350 - $2,425 | $2,350 - $2,370 |
Adjusted EBITDA Margin | 14.4% - 14.7% | 14.4% - 14.5% |
Revenue | $16,300 - $16,500 | $16,300 - $16,400 |
Cash Flow Before Financing | $1,000 | $1,000 |
Capital Expenditures | $750 | $700 |
Adjusted Effective Tax Rate | 18% | 18% |
Share Count - Diluted | 313 | 312 |
Conference Call and Webcast
The Company will host a conference call to discuss these results at 9:00 a.m. (ET) today, which is accessible by dialing 888.486.0553 (US domestic) or 706.634.4982 (international) or through a webcast at http://investor.delphi.com/. The conference ID number is 77004481. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company's website. A replay will be available two hours following the conference call.
3
Exhibit 99.1
Use of Non-GAAP Financial Information
This press release contains information about Delphi's financial results which are not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.
About Delphi
Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Operating major technical centers, manufacturing sites and customer support facilities in 32 countries, Delphi delivers real-world innovations that make products smarter and safer as well as more powerful and efficient. Connect to innovation at www.delphi.com.
FORWARD-LOOKING STATEMENTS
This press release, as well as other statements made by Delphi Automotive PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company's strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company's filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.
# # #
4
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions, except per share amounts) | (in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 4,017 | $ | 3,663 | $ | 12,281 | $ | 11,752 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales | 3,338 | 3,058 | 10,141 | 9,703 | ||||||||||||
Selling, general and administrative | 228 | 215 | 699 | 673 | ||||||||||||
Amortization | 27 | 20 | 79 | 60 | ||||||||||||
Restructuring | 37 | 3 | 95 | 17 | ||||||||||||
Total operating expenses | 3,630 | 3,296 | 11,014 | 10,453 | ||||||||||||
Operating income | 387 | 367 | 1,267 | 1,299 | ||||||||||||
Interest expense | (34 | ) | (32 | ) | (106 | ) | (100 | ) | ||||||||
Other income (expense), net | 4 | 3 | (25 | ) | 15 | |||||||||||
Income before income taxes and equity income | 357 | 338 | 1,136 | 1,214 | ||||||||||||
Income tax expense | (72 | ) | (52 | ) | (182 | ) | (227 | ) | ||||||||
Income before equity income | 285 | 286 | 954 | 987 | ||||||||||||
Equity income, net of tax | 8 | 6 | 26 | 18 | ||||||||||||
Net income | 293 | 292 | 980 | 1,005 | ||||||||||||
Net income attributable to noncontrolling interest | 22 | 23 | 66 | 64 | ||||||||||||
Net income attributable to Delphi | $ | 271 | $ | 269 | $ | 914 | $ | 941 | ||||||||
Diluted net income per share: | ||||||||||||||||
Diluted net income per share attributable to Delphi | $ | 0.87 | $ | 0.84 | $ | 2.92 | $ | 2.89 | ||||||||
Weighted average number of diluted shares outstanding | 310.62 | 321.28 | 312.87 | 325.28 | ||||||||||||
5
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
CONSOLIDATED BALANCE SHEETS
September 30, 2013 | December 31, 2012 | |||||||
(unaudited) | ||||||||
(in millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,053 | $ | 1,105 | ||||
Restricted cash | 5 | 8 | ||||||
Accounts receivable, net | 2,856 | 2,425 | ||||||
Inventories | 1,233 | 1,066 | ||||||
Other current assets | 640 | 623 | ||||||
Total current assets | 5,787 | 5,227 | ||||||
Long-term assets: | ||||||||
Property, net | 2,982 | 2,860 | ||||||
Investments in affiliates | 217 | 231 | ||||||
Intangible assets, net | 742 | 803 | ||||||
Goodwill | 485 | 473 | ||||||
Other long-term assets | 598 | 582 | ||||||
Total long-term assets | 5,024 | 4,949 | ||||||
Total assets | $ | 10,811 | $ | 10,176 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 59 | $ | 140 | ||||
Accounts payable | 2,504 | 2,278 | ||||||
Accrued liabilities | 1,294 | 1,241 | ||||||
Total current liabilities | 3,857 | 3,659 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 2,359 | 2,324 | ||||||
Pension benefit obligations | 909 | 929 | ||||||
Other long-term liabilities | 463 | 434 | ||||||
Total long-term liabilities | 3,731 | 3,687 | ||||||
Total liabilities | 7,588 | 7,346 | ||||||
Commitments and contingencies | ||||||||
Total Delphi shareholder's equity | 2,746 | 2,345 | ||||||
Noncontrolling interest | 477 | 485 | ||||||
Total shareholders’ equity | 3,223 | 2,830 | ||||||
Total liabilities and shareholders’ equity | $ | 10,811 | $ | 10,176 | ||||
6
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 980 | $ | 1,005 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 401 | 340 | ||||||
Deferred income taxes | 23 | 18 | ||||||
Income from equity method investments, net of dividends received | 4 | 8 | ||||||
Loss on extinguishment of debt | 39 | 1 | ||||||
Other, net | 84 | 33 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (431 | ) | (87 | ) | ||||
Inventories | (167 | ) | (69 | ) | ||||
Accounts payable | 306 | (22 | ) | |||||
Other, net | (104 | ) | (17 | ) | ||||
Pension contributions | (65 | ) | (42 | ) | ||||
Net cash provided by operating activities | 1,070 | 1,168 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (512 | ) | (563 | ) | ||||
Proceeds from sale of property / investments | 24 | 18 | ||||||
Cost of business and technology acquisitions, net of cash acquired | (10 | ) | — | |||||
Decrease (increase) in restricted cash | 3 | (2 | ) | |||||
Acquisition of minority held shares | — | (16 | ) | |||||
Dividends from equity method investments in excess of earnings | — | 37 | ||||||
Net cash used in investing activities | (495 | ) | (526 | ) | ||||
Cash flows from financing activities: | ||||||||
Decrease in short and long-term debt, net | (80 | ) | (21 | ) | ||||
Dividend payments of consolidated affiliates to minority shareholders | (26 | ) | (39 | ) | ||||
Repurchase of ordinary shares | (353 | ) | (300 | ) | ||||
Distribution of cash dividends | (159 | ) | — | |||||
Taxes withheld and paid on employees' restricted share awards | (14 | ) | — | |||||
Net cash used in financing activities | (632 | ) | (360 | ) | ||||
Effect of exchange rate fluctuations on cash and cash equivalents | 5 | (11 | ) | |||||
(Decrease) increase in cash and cash equivalents | (52 | ) | 271 | |||||
Cash and cash equivalents at beginning of period | 1,105 | 1,363 | ||||||
Cash and cash equivalents at end of period | $ | 1,053 | $ | 1,634 | ||||
7
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
FOOTNOTES
(unaudited)
1. Segment Summary
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | % | 2013 | 2012 | % | ||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||
Net sales | |||||||||||||||||||||
Electrical/Electronic Architecture | $ | 1,956 | $ | 1,607 | 22 | % | $ | 5,921 | $ | 5,049 | 17 | % | |||||||||
Powertrain Systems | 1,048 | 1,087 | (4 | )% | 3,316 | 3,597 | (8 | )% | |||||||||||||
Electronics and Safety | 705 | 648 | 9 | % | 2,123 | 2,092 | 1 | % | |||||||||||||
Thermal Systems | 364 | 374 | (3 | )% | 1,097 | 1,192 | (8 | )% | |||||||||||||
Eliminations and Other (a) | (56 | ) | (53 | ) | (176 | ) | (178 | ) | |||||||||||||
Net sales | $ | 4,017 | $ | 3,663 | $ | 12,281 | $ | 11,752 | |||||||||||||
Adjusted EBITDA | |||||||||||||||||||||
Electrical/Electronic Architecture | $ | 309 | $ | 211 | 46 | % | $ | 919 | $ | 714 | 29 | % | |||||||||
Powertrain Systems | 142 | 169 | (16 | )% | 494 | 575 | (14 | )% | |||||||||||||
Electronics and Safety | 100 | 79 | 27 | % | 297 | 272 | 9 | % | |||||||||||||
Thermal Systems | 15 | 24 | (38 | )% | 63 | 95 | (34 | )% | |||||||||||||
Eliminations and Other (a) | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 566 | $ | 483 | $ | 1,773 | $ | 1,656 | |||||||||||||
(a) Eliminations and Other includes the elimination of inter-segment transactions. | |||||||||||||||||||||
2. Weighted Average Number of Diluted Shares Outstanding
The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income per share attributable to Delphi for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions, except per share data) | ||||||||||||||||
Weighted average ordinary shares outstanding, basic | 309.68 | 320.93 | 312.08 | 325.00 | ||||||||||||
Dilutive shares related to RSUs | 0.94 | 0.35 | 0.79 | 0.28 | ||||||||||||
Weighted average ordinary shares outstanding, including dilutive shares | 310.62 | 321.28 | 312.87 | 325.28 | ||||||||||||
Net income per share attributable to Delphi: | ||||||||||||||||
Basic | $ | 0.88 | $ | 0.84 | $ | 2.93 | $ | 2.89 | ||||||||
Diluted | $ | 0.87 | $ | 0.84 | $ | 2.92 | $ | 2.89 | ||||||||
8
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
In this press release the Company has provided information regarding certain non-GAAP financial measures, including "Adjusted EBITDA", "Adjusted Operating Income", "Adjusted Net Income", "Adjusted Net Income per Share" and "cash flow before financing". Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company's performance which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization (including long-lived asset and goodwill impairment), interest expense, other income (expense), net, income tax expense, restructuring, acquisition integration costs and equity income (loss), net of tax. Not all companies use identical calculations of Adjusted EBITDA therefore this presentation may not be comparable to other similarly titled measures of other companies. The Company's 2013 guidance was determined using a consistent manner and methodology.
Consolidated Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Net income attributable to Delphi | $ | 271 | $ | 269 | $ | 914 | $ | 941 | ||||||||
Income tax expense | 72 | 52 | 182 | 227 | ||||||||||||
Interest expense | 34 | 32 | 106 | 100 | ||||||||||||
Other (income) expense, net | (4 | ) | (3 | ) | 25 | (15 | ) | |||||||||
Noncontrolling interest | 22 | 23 | 66 | 64 | ||||||||||||
Equity income, net of tax | (8 | ) | (6 | ) | (26 | ) | (18 | ) | ||||||||
Operating income | 387 | 367 | 1,267 | 1,299 | ||||||||||||
Depreciation and amortization | 138 | 113 | 401 | 340 | ||||||||||||
EBITDA | $ | 525 | $ | 480 | $ | 1,668 | $ | 1,639 | ||||||||
Restructuring | 37 | 3 | 95 | 17 | ||||||||||||
Other acquisition-related costs | 4 | — | 10 | — | ||||||||||||
Adjusted EBITDA | $ | 566 | $ | 483 | $ | 1,773 | $ | 1,656 | ||||||||
9
Exhibit 99.1
Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company's performance. Adjusted Operating Income is defined as net income (loss) before interest expense, other income (expense), net, income tax expense, restructuring, acquisition integration costs and equity income (loss), net of tax. Not all companies use identical calculations of Adjusted Operating Income therefore this presentation may not be comparable to other similarly titled measures of other companies. The Company's 2013 guidance was determined using a consistent manner and methodology.
Consolidated Adjusted Operating Income | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | ||||||||||||||||
Net income attributable to Delphi | $ | 271 | $ | 269 | $ | 914 | $ | 941 | ||||||||
Income tax expense | 72 | 52 | 182 | 227 | ||||||||||||
Interest expense | 34 | 32 | 106 | 100 | ||||||||||||
Other (income) expense, net | (4 | ) | (3 | ) | 25 | (15 | ) | |||||||||
Noncontrolling interest | 22 | 23 | 66 | 64 | ||||||||||||
Equity income, net of tax | (8 | ) | (6 | ) | (26 | ) | (18 | ) | ||||||||
Operating income | 387 | 367 | 1,267 | 1,299 | ||||||||||||
Restructuring | 37 | 3 | 95 | 17 | ||||||||||||
Other acquisition-related costs | 4 | — | 10 | — | ||||||||||||
Adjusted Operating Income | $ | 428 | $ | 370 | $ | 1,372 | $ | 1,316 | ||||||||
10
Exhibit 99.1
Segment Adjusted EBITDA | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | |||||||||||||||||
Operating income | $ | 237 | $ | 86 | $ | 62 | $ | 2 | $ | — | $ | 387 | |||||||||||
Depreciation and amortization | 61 | 48 | 19 | 10 | — | 138 | |||||||||||||||||
EBITDA | $ | 298 | $ | 134 | $ | 81 | $ | 12 | $ | — | $ | 525 | |||||||||||
Restructuring | 7 | 8 | 19 | 3 | — | 37 | |||||||||||||||||
Other acquisition-related costs | 4 | — | — | — | — | 4 | |||||||||||||||||
Adjusted EBITDA | $ | 309 | $ | 142 | $ | 100 | $ | 15 | $ | — | $ | 566 | |||||||||||
Three Months Ended September 30, 2012 | Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | |||||||||||||||||
Operating income | $ | 171 | $ | 125 | $ | 58 | $ | 13 | $ | — | $ | 367 | |||||||||||
Depreciation and amortization | 39 | 44 | 20 | 10 | — | 113 | |||||||||||||||||
EBITDA | $ | 210 | $ | 169 | $ | 78 | $ | 23 | $ | — | $ | 480 | |||||||||||
Restructuring | 1 | — | 1 | 1 | — | 3 | |||||||||||||||||
Other acquisition-related costs | — | — | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 211 | $ | 169 | $ | 79 | $ | 24 | $ | — | $ | 483 | |||||||||||
Nine Months Ended September 30, 2013 | Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | |||||||||||||||||
Operating income | $ | 709 | $ | 334 | $ | 198 | $ | 26 | $ | — | $ | 1,267 | |||||||||||
Depreciation and amortization | 174 | 140 | 55 | 32 | — | 401 | |||||||||||||||||
EBITDA | $ | 883 | $ | 474 | $ | 253 | $ | 58 | $ | — | $ | 1,668 | |||||||||||
Restructuring | 26 | 20 | 44 | 5 | — | 95 | |||||||||||||||||
Other acquisition-related costs | 10 | — | — | — | — | 10 | |||||||||||||||||
Adjusted EBITDA | $ | 919 | $ | 494 | $ | 297 | $ | 63 | $ | — | $ | 1,773 | |||||||||||
Nine Months Ended September 30, 2012 | Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | |||||||||||||||||
Operating income | $ | 596 | $ | 437 | $ | 207 | $ | 59 | $ | — | $ | 1,299 | |||||||||||
Depreciation and amortization | 112 | 134 | 62 | 32 | — | 340 | |||||||||||||||||
EBITDA | $ | 708 | $ | 571 | $ | 269 | $ | 91 | $ | — | $ | 1,639 | |||||||||||
Restructuring | 6 | 4 | 3 | 4 | — | 17 | |||||||||||||||||
Other acquisition-related costs | — | — | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | 714 | $ | 575 | $ | 272 | $ | 95 | $ | — | $ | 1,656 | |||||||||||
11
Exhibit 99.1
DELPHI AUTOMOTIVE PLC
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(unaudited)
Adjusted Net Income and Adjusted Net Income Per Share: Management believes adjusted net income and adjusted net income per share, which are non-GAAP measures, are useful in evaluating the ongoing operating performance of the Company.
Three Months Ended | Three Months Ended | |||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||
Actual | Adjustments | Adjusted | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Net sales | $ | 4,017 | $ | 4,017 | ||||||||
Operating expenses: | ||||||||||||
Cost of sales | 3,338 | (4 | ) | (a) | 3,334 | |||||||
Selling, general and administrative | 228 | 228 | ||||||||||
Amortization | 27 | 27 | ||||||||||
Restructuring | 37 | (37 | ) | (b) | — | |||||||
Total operating expenses | 3,630 | (41 | ) | 3,589 | ||||||||
Operating income | 387 | 41 | 428 | |||||||||
Interest expense | (34 | ) | (34 | ) | ||||||||
Other income, net | 4 | — | 4 | |||||||||
Income before income taxes and equity income | 357 | 41 | 398 | |||||||||
Income tax expense | (72 | ) | (10 | ) | (c) | (82 | ) | |||||
Income before equity income | 285 | 31 | 316 | |||||||||
Equity income, net of tax | 8 | 8 | ||||||||||
Net income | 293 | 31 | 324 | |||||||||
Net income attributable to noncontrolling interest | 22 | 22 | ||||||||||
Net income attributable to Delphi | $ | 271 | $ | 31 | $ | 302 | ||||||
Diluted net income per share: | ||||||||||||
Diluted net income per share attributable to Delphi | $ | 0.87 | $ | 0.97 | ||||||||
Weighted average number of diluted shares outstanding | 310.62 | 310.62 | ||||||||||
(a) | Represents the elimination of acquisition-related integration costs. |
(b) | Represents the elimination of restructuring charges. |
(c) | Represents the income tax impacts of the adjustments made for restructuring charges and acquisition-related integration costs, by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
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Exhibit 99.1
DELPHI AUTOMOTIVE PLC
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(unaudited)
Adjusted Net Income and Adjusted Net Income Per Share: Management believes adjusted net income and adjusted net income per share, which are non-GAAP measures, are useful in evaluating the ongoing operating performance of the Company.
Nine Months Ended | Nine Months Ended | |||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||
Actual | Adjustments | Adjusted | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Net sales | $ | 12,281 | $ | 12,281 | ||||||||
Operating expenses: | ||||||||||||
Cost of sales | 10,141 | (8 | ) | (a) | 10,133 | |||||||
Selling, general and administrative | 699 | (2 | ) | (a) | 697 | |||||||
Amortization | 79 | 79 | ||||||||||
Restructuring | 95 | (95 | ) | (b) | — | |||||||
Total operating expenses | 11,014 | (105 | ) | 10,909 | ||||||||
Operating income | 1,267 | 105 | 1,372 | |||||||||
Interest expense | (106 | ) | (106 | ) | ||||||||
Other (expense) income, net | (25 | ) | 39 | (c) | 14 | |||||||
Income before income taxes and equity income | 1,136 | 144 | 1,280 | |||||||||
Income tax expense | (182 | ) | (32 | ) | (d) | (214 | ) | |||||
Income before equity income | 954 | 112 | 1,066 | |||||||||
Equity income, net of tax | 26 | 26 | ||||||||||
Net income | 980 | 112 | 1,092 | |||||||||
Net income attributable to noncontrolling interest | 66 | 66 | ||||||||||
Net income attributable to Delphi | $ | 914 | $ | 112 | $ | 1,026 | ||||||
Diluted net income per share: | ||||||||||||
Diluted net income per share attributable to Delphi | $ | 2.92 | $ | 3.28 | ||||||||
Weighted average number of diluted shares outstanding | 312.87 | 312.87 | ||||||||||
(a) | Represents the elimination of acquisition-related integration costs. |
(b) | Represents the elimination of restructuring charges. |
(c) | Represents the elimination of debt extinguishment costs. |
(d) | Represents the income tax impacts of the adjustments made for restructuring charges, acquisition-related integration costs and debt extinguishment costs by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
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Exhibit 99.1
DELPHI AUTOMOTIVE PLC
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(unaudited)
Adjusted Net Income and Adjusted Net Income Per Share: Management believes adjusted net income and adjusted net income per share, which are non-GAAP measures, are useful in evaluating the ongoing operating performance of the Company.
Three Months Ended | Three Months Ended | |||||||||||
September 30, 2012 | September 30, 2012 | |||||||||||
Actual | Adjustments | Adjusted | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Net sales | $ | 3,663 | $ | 3,663 | ||||||||
Operating expenses: | ||||||||||||
Cost of sales | 3,058 | 3,058 | ||||||||||
Selling, general and administrative | 215 | 215 | ||||||||||
Amortization | 20 | 20 | ||||||||||
Restructuring | 3 | (3 | ) | (a) | — | |||||||
Total operating expenses | 3,296 | (3 | ) | 3,293 | ||||||||
Operating income | 367 | 3 | 370 | |||||||||
Interest expense | (32 | ) | (32 | ) | ||||||||
Other income, net | 3 | 1 | (b) | 4 | ||||||||
Income before income taxes and equity income | 338 | 4 | 342 | |||||||||
Income tax expense | (52 | ) | (2 | ) | (c) | (54 | ) | |||||
Income before equity income | 286 | 2 | 288 | |||||||||
Equity income, net of tax | 6 | 6 | ||||||||||
Net income | 292 | 2 | 294 | |||||||||
Net income attributable to noncontrolling interest | 23 | 23 | ||||||||||
Net income attributable to Delphi | $ | 269 | $ | 2 | $ | 271 | ||||||
Diluted net income per share: | ||||||||||||
Diluted net income per share attributable to Delphi | $ | 0.84 | $ | 0.84 | ||||||||
Weighted average number of diluted shares outstanding | 321.28 | 321.28 | ||||||||||
(a) | Represents the elimination of restructuring charges. |
(b) | Represents the elimination of debt extinguishment costs. |
(c) | Represents the income tax impacts of the adjustments made for restructuring charges and debt extinguishment costs by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
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Exhibit 99.1
DELPHI AUTOMOTIVE PLC
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(unaudited)
Adjusted Net Income and Adjusted Net Income Per Share: Management believes adjusted net income and adjusted net income per share, which are non-GAAP measures, are useful in evaluating the ongoing operating performance of the Company.
Nine Months Ended | Nine Months Ended | |||||||||||
September 30, 2012 | September 30, 2012 | |||||||||||
Actual | Adjustments | Adjusted | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Net sales | $ | 11,752 | $ | 11,752 | ||||||||
Operating expenses: | ||||||||||||
Cost of sales | 9,703 | 9,703 | ||||||||||
Selling, general and administrative | 673 | 673 | ||||||||||
Amortization | 60 | 60 | ||||||||||
Restructuring | 17 | (17 | ) | (a) | — | |||||||
Total operating expenses | 10,453 | (17 | ) | 10,436 | ||||||||
Operating income | 1,299 | 17 | 1,316 | |||||||||
Interest expense | (100 | ) | (100 | ) | ||||||||
Other income, net | 15 | 1 | (b) | 16 | ||||||||
Income before income taxes and equity income | 1,214 | 18 | 1,232 | |||||||||
Income tax expense | (227 | ) | (5 | ) | (c) | (232 | ) | |||||
Income before equity income | 987 | 13 | 1,000 | |||||||||
Equity income, net of tax | 18 | 18 | ||||||||||
Net income | 1,005 | 13 | 1,018 | |||||||||
Net income attributable to noncontrolling interest | 64 | 64 | ||||||||||
Net income attributable to Delphi | $ | 941 | $ | 13 | $ | 954 | ||||||
Diluted net income per share: | ||||||||||||
Diluted net income per share attributable to Delphi | $ | 2.89 | $ | 2.93 | ||||||||
Weighted average number of diluted shares outstanding | 325.28 | 325.28 | ||||||||||
(a) | Represents the elimination of restructuring charges. |
(b) | Represents the elimination of debt extinguishment costs. |
(c) | Represents the income tax impacts of the adjustments made for restructuring charges and debt extinguishment costs, by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. |
15
Exhibit 99.1
Cash flow before financing: Cash flow before financing is presented as a supplemental measure of the Company's liquidity which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions. Cash flow before financing is defined as cash provided by (used in) operating activities plus cash provided by (used in) investing activities. Not all companies use identical calculations of cash flow before financing therefore this presentation may not be comparable to other similarly titled measures of other companies. The Company's 2013 guidance was determined using a consistent manner and methodology.
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in millions) | (in millions) | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 293 | $ | 292 | $ | 980 | $ | 1,005 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 138 | 113 | 401 | 340 | ||||||||||||
Working capital | (49 | ) | (14 | ) | (292 | ) | (178 | ) | ||||||||
Pension contributions | (24 | ) | (16 | ) | (65 | ) | (42 | ) | ||||||||
Other, net | 40 | 39 | 46 | 43 | ||||||||||||
Net cash provided by operating activities | 398 | 414 | 1,070 | 1,168 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (176 | ) | (163 | ) | (512 | ) | (563 | ) | ||||||||
Other, net | 8 | 3 | 17 | 37 | ||||||||||||
Net cash used in investing activities | (168 | ) | (160 | ) | (495 | ) | (526 | ) | ||||||||
Cash flow before financing | $ | 230 | $ | 254 | $ | 575 | $ | 642 | ||||||||
INVESTOR CONTACT:
Jessica Holscott - 248.813.2312
jessica.holscott@delphi.com
or
MEDIA CONTACT:
Carrie Wright - 248.813.2932
carrie.wright@delphi.com
16