An audio replay of the conference call will be available for one week by dialing 1-855-859-2056 or 1-404-537-3406 and entering conference ID 78186351. A webcast replay will be available at http://investor.viasystems.com for approximately two hours after the conclusion of the call.
Separately, Viasystems expects to participate in the 34th Annual Canaccord Genuity Growth Conference 2014 at the InterContinental Hotel in Boston, Massachusetts, on August 13, 2014. Mr. Jerry Sax, Chief Financial Officer, will present to conference attendees at approximately 10:30 a.m. Eastern Time.
Forward Looking Statements
Certain statements in this communication constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of Viasystems regarding future events and are subject to significant risks and uncertainty. Statements regarding our expected performance in the future are forward-looking statements. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Viasystems undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Actual results may differ materially from those expressed or implied. Such differences may result from a variety of factors, including but not limited to: legal or regulatory proceedings; the ability of Viasystems to successfully integrate DDi’s operations, product lines and technology and to realize additional opportunities for growth; any actions taken by the company, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); or developments beyond the company’s control, including but not limited to, changes in domestic or global economic conditions, competitive conditions and consumer preferences, adverse weather conditions or natural disasters, health concerns, international, political or military developments and technological developments. Additional factors that may cause results to differ materially from those described in the forward-looking statements are set forth under the heading “Item 1A. Risk Factors,” in the Annual Report on Form 10-K filed by Viasystems with the SEC on February 14, 2014, and in Viasystems’ other filings made from time to time with the SEC and available at the SEC’s website, www.sec.gov.
About Viasystems
Viasystems Group, Inc. is a technology leader and a worldwide provider of complex multi-layer printed circuit boards (PCBs) and electro-mechanical solutions (E-M Solutions). Its PCBs serve as the “electronic backbone” of almost all electronic equipment, and its E-M Solutions products and services include integration of PCBs and other components into finished or semi-finished electronic equipment, for which it also provides custom and standard metal enclosures, cabinets, racks and sub-racks, backplanes and busbars. Viasystems’ approximately 14,800 employees around the world serve over 1,000 customers in the automotive, industrial & instrumentation, computer and datacommunications, telecommunications, and military and aerospace end markets. For additional information about Viasystems, please visit the company’s website at www.viasystems.com.
|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
| Three Months Ended | |||||||||||||||
|
June 30,
2014 |
March 31,
2014 |
June 30,
2013 |
|||||||||||||
| Net sales | $ | 300,929 | $ | 295,912 | $ | 285,553 | |||||||||
| Operating expenses: | |||||||||||||||
| Cost of goods sold, exclusive of items shown separately |
242,245 |
239,803 |
232,448 |
||||||||||||
| Selling, general and administrative | 25,442 | 26,849 | 25,001 | ||||||||||||
| Depreciation | 21,868 | 21,812 | 21,878 | ||||||||||||
| Amortization | 1,656 | 1,680 | 1,678 | ||||||||||||
| Restructuring and impairment | 68 | 273 | – | ||||||||||||
| Operating income | 9,650 | 5,495 | 4,548 | ||||||||||||
| Other expense (income): | |||||||||||||||
| Interest expense, net | 11,848 | 11,253 | 11,259 | ||||||||||||
| Amortization of deferred financing costs | 734 | 655 | 724 | ||||||||||||
| Other, net | (1,364 | ) | (1,233 | ) | 941 | ||||||||||
| Loss before income taxes | (1,568 | ) | (5,180 | ) | (8,376 | ) | |||||||||
| Income taxes | 2,052 | 4,177 | 1,892 | ||||||||||||
| Net loss | $ | (3,620 | ) | $ | (9,357 | ) | $ | (10,268 | ) | ||||||
| Less: | |||||||||||||||
| Net income attributable to noncontrolling interest | 239 | 190 | 101 | ||||||||||||
| Net loss attributable to common stockholders | $ | (3,859 | ) | $ | (9,547 | ) | $ | (10,369 | ) | ||||||
| Basic loss per share | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.52 | ) | ||||||
| Diluted loss per share | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.52 | ) | ||||||
| Basic weighted average shares outstanding | 20,289,645 | 20,268,717 | 20,010,029 | ||||||||||||
| Diluted weighted average shares outstanding | 20,289,645 | 20,268,717 | 20,010,029 | ||||||||||||
|
This information is intended to be reviewed in conjunction with the company’s filings with the Securities and Exchange Commission. |
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|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) |
||||||||
|
June 30,
2014 |
December 31,
2013 |
|||||||
| ASSETS | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 76,461 | $ | 54,738 | ||||
| Accounts receivable, net | 211,983 | 196,126 | ||||||
| Inventories | 134,837 | 122,182 | ||||||
| Prepaid expenses and other | 35,269 | 38,131 | ||||||
| Total current assets | 458,550 | 411,177 | ||||||
| Property, plant and equipment, net | 429,386 | 446,488 | ||||||
| Goodwill and other noncurrent assets | 259,601 | 260,752 | ||||||
| Total assets | $ | 1,147,537 | $ | 1,118,417 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt | $ | 21,167 | $ | 11,387 | ||||
| Accounts payable | 174,615 | 203,122 | ||||||
| Accrued and other liabilities | 97,054 | 88,220 | ||||||
| Total current liabilities | 292,836 | 302,729 | ||||||
| Long-term debt, less current maturities | 614,078 | 561,508 | ||||||
| Other non-current liabilities | 41,539 | 41,592 | ||||||
| Total liabilities | 948,453 | 905,829 | ||||||
| Total stockholders’ equity | 199,084 | 212,588 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,147,537 | $ | 1,118,417 | ||||
|
This information is intended to be reviewed in conjunctions with the company’s filings with the Securities and Exchange Commission. |
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|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands) (Unaudited) |
||||||||||
|
Six Months Ended
June 30, |
||||||||||
| 2014 | 2013 | |||||||||
| Net cash (used in) provided by operating activities | $ | (13,312 | ) | $ | 40,430 | |||||
| Cash flows from investing activities: | ||||||||||
| Capital expenditures | (27,713 | ) | (39,496 | ) | ||||||
| Proceeds from disposals of property and insurance claims | 4,181 | 297 | ||||||||
| Net cash used in investing activities | (23,532 | ) | (39,199 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Proceeds from issuance of 2019 Notes | 53,500 | – | ||||||||
| Borrowings (repayments) under mortgages and credit facilities, net | 8,996 | (670 | ) | |||||||
| Financing and other fees | (3,344 | ) | – | |||||||
| Withholding related to stock awards | (585 | ) | (612 | ) | ||||||
| Repayment of Senior Subordinated Convertible Notes due 2013 | – | (895 | ) | |||||||
| Net cash provided by (used in) financing activities | 58,567 | (2,177 | ) | |||||||
| Net change in cash and cash equivalents | 21,723 | (946 | ) | |||||||
| Beginning cash | 54,738 | 74,816 | ||||||||
| Ending cash | $ | 76,461 | $ | 73,870 | ||||||
|
This information is intended to be reviewed in conjunction with the company’s filings with the Securities and Exchange Commission. |
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|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION NET SALES AND BALANCE SHEET STATISTICS (dollars in millions) (Unaudited) |
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| Three Months Ended | |||||||||||||||||||||||||||
| June 30, 2014 | March 31, 2104 | June 30, 2013 | |||||||||||||||||||||||||
| Net external sales by segment | |||||||||||||||||||||||||||
| Printed Circuit Boards | $ | 262.3 | 87 | % | $ | 253.3 | 86 | % | $ | 240.7 | 84 | % | |||||||||||||||
| Assembly | 38.6 | 13 | % | 42.6 | 14 | % | 44.9 | 16 | % | ||||||||||||||||||
| $ | 300.9 | 100 | % | $ | 295.9 | 100 | % | $ | 285.6 | 100 | % | ||||||||||||||||
| Percentage of Net Sales | Net Sales Change | |||||||||||||||||||
| Three Months Ended | Sequential: | Year/Year: | ||||||||||||||||||
| June 30, | March 31, | June 30, | 2Q14 vs | 2Q14 vs | ||||||||||||||||
| 2014 | 2014 | 2013 | 1Q14 | 2Q13 | ||||||||||||||||
| Net sales by end market | ||||||||||||||||||||
| Automotive | 34 | % | 31 | % | 30 | % | 8 |
% |
19 |
% |
||||||||||
| Industrial & Instrumentation | 23 | % | 25 | % | 26 | % | (6 | )% | (10 | )% | ||||||||||
| Telecommunications | 18 | % | 18 | % | 17 | % | 9 |
% |
17 |
% |
||||||||||
| Computer and Datacommunications | 13 | % | 16 | % | 16 | % | (14 | )% | (10 | )% | ||||||||||
| Military and Aerospace | 12 | % | 10 | % | 11 | % | 13 |
% |
13 |
% |
||||||||||
| 100 | % | 100 | % | 100 | % | 2 |
% |
5 |
% |
|||||||||||
| 2Q14 | 1Q14 | 4Q13 | 3Q13 | 2Q13 | ||||||||||||||||||||||
| Working capital metrics | ||||||||||||||||||||||||||
| Days’ sales outstanding | 63.4 | 62.8 | 58.2 | 59.6 | 58.9 | |||||||||||||||||||||
| Inventory turns | 7.2 | 7.6 | 8.0 | 8.4 | 8.1 | |||||||||||||||||||||
| Days’ payables outstanding | 64.9 | 66.2 | 74.9 | 66.4 | 68.5 | |||||||||||||||||||||
| Cash cycle (days) | 48.6 | 43.7 | 28.3 | 36.0 | 34.7 | |||||||||||||||||||||
|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF OPERATING INCOME TO ADJUSTED EBITDA (dollars in millions) (Unaudited) |
||||||||||||
| Three Months Ended | ||||||||||||
|
June 30,
2014 |
March 31,
2014 |
June 30,
2013 |
||||||||||
| Operating income | $ | 9.6 | $ | 5.5 | $ | 4.5 | ||||||
| Add-back: | ||||||||||||
| Depreciation and amortization | 23.5 | 23.5 | 23.6 | |||||||||
| Non-cash stock compensation expense | 2.0 | 1.7 | 2.6 | |||||||||
| Restructuring and impairment | 0.1 | 0.3 | .– | |||||||||
| Adjusted EBITDA | $ | 35.2 | $ | 31.0 | $ | 30.7 | ||||||
|
VIASYSTEMS GROUP, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF DILUTED EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE (dollars in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
| Three Months Ended | |||||||||||||||
|
June 30,
2014 |
March 31,
2014 |
June 30,
2013 |
|||||||||||||
| Net loss attributable to common stockholders (GAAP) | $ | (3,859 | ) | $ | (9,547 | ) | $ | (10,369 | ) | ||||||
| Adjustments: | |||||||||||||||
| Non-cash stock compensation expense | 1,977 | 1,729 | 2,597 | ||||||||||||
| Amortization | 2,390 | 2,335 | 2,403 | ||||||||||||
| Restructuring and impairment | 68 | 273 | – | ||||||||||||
| Non-cash interest | (109 | ) | – | – | |||||||||||
| Costs related to acquisitions and equity registrations | – | – | 31 | ||||||||||||
| Special income taxes | (416 | ) | – | (183 | ) | ||||||||||
| Income tax effects of adjustments | (38 | ) | (44 | ) | (39 | ) | |||||||||
|
Adjusted net income (loss) attributable to common stockholders |
$ |
13 |
$ |
(5,254 |
) |
$ |
(5,560 |
) |
|||||||
| Diluted weighted average shares outstanding | 20,463,520 | 20,268,717 | 20,010,029 | ||||||||||||
| Diluted loss per share (GAAP) | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.52 | ) | ||||||
| Adjusted EPS | $ | 0.00 | $ | (0.26 | ) | $ | (0.28 | ) | |||||||
