Tower Int'l (TOWR) Tops Q4 EPS by 2c, Beats on Revenues; Offers FY18 EPS/Revenues Guidance Above Consensus

Tower Int'l (NYSE: TOWR) reported Q4 EPS of $1.17, $0.02 better than the analyst estimate of $1.15. Revenue for the quarter came in at $538 million versus the consensus estimate of $530.7 million.

• Revenue for the fourth quarter was $538 million compared with $462 million in the fourth quarter of 2016 representing a 16 percent increase.
• Net income was negative $3.9 million or $(0.19) per share, compared with $16.9 million or $0.81 per share in the fourth quarter last year. As detailed below, this year\'s fourth quarter included a non-cash charge of $27.2 million related to U.S. tax reform legislation as well as other certain items that, in aggregate, adversely impacted results by $28.4 million. Excluding these items and comparable items in the fourth quarter of 2016, adjusted earnings per share amounted to $1.17, an increase of 15 percent from the $1.02 reported a year ago.
• Adjusted EBITDA for the quarter was $61.1 million slightly ahead of the Company\'s outlook and up 9 percent from $56.2 million a year ago.
• For the quarter, net cash provided by continuing operating activities was $129 million. Cash disbursed for purchases of equipment totaled $28 million resulting in Free Cash Flow of $101 million.
• Tower also provided its three year net new business backlog of $350 million for 2018 through 2020. This represents an increase of more than 20 percent from the company\'s previous three year backlog of $290 million provided last year.
• Full year 2018 outlook includes:
  • Revenue growth of 7 percent to $2.14 billion, reflecting primarily net new business of $125 million and favorable foreign exchange;
  • Adjusted EBITDA of $230 million;
  • Expansion of Adjusted EBITDA Margin to 10.7 percent;
  • Diluted Adjusted EPS of $4.10 per share – up 9 percent from 2017; and
• Free Cash Flow of $50 million, with strong free cash flow in the second half of the year more than offsetting the expected cash outflow in the first half of the year.

The Company\'s outlook for first quarter 2018 includes revenue of $550 million, Adjusted EBITDA of $53 million and Diluted Adjusted Earnings Per Share of 80 cents.

GUIDANCE:

Tower Int'l sees FY2018 EPS of $4.10, versus the consensus of $4.06. Tower Int'l sees FY2018 revenue of $2.14 billion, versus the consensus of $2.07 billion.

For earnings history and earnings-related data on Tower Int'l (TOWR) click here.

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