Horizon Global (HZN) Tops Q2 EPS by 14c, Revenues Miss

Horizon Global (NYSE: HZN) reported Q2 EPS of $0.36, $0.14 better than the analyst estimate of $0.22. Revenue for the quarter came in at $233.3 million versus the consensus estimate of $239.09 million.

“We remain encouraged that our global team continues to make solid progress on the Action Plan even though consolidated results for the second quarter are not in line with the prior year,” said Carl Bizon, Interim President and Chief Executive Officer of Horizon Global. “Of key importance is the ramp up of our Kansas City distribution center and, as of the end of last week, I am pleased to report that we are currently exceeding our average daily shipment goal, and this facility is now demonstrating its ability to meet the requirements of our business. We closed the quarter with past due orders of approximately $23 million, which significantly impacted our second quarter performance. As we continue to reduce past due orders, we are fortunate that our customers have largely remained resilient and stayed with us during the Kansas City ramp-up process.

“The second quarter and beginning of the current quarter have been marked by a number of key events -- we made key senior management changes, including the naming of new leadership for our Company and its two largest operating segments; we terminated the Brink acquisition; and, just last week, we announced a successful amendment of our term loan agreement, which included securing an incremental $50 million to address short-term liquidity needs. As a Company, we are clearly not standing still and are moving quickly to fix near-term operational issues. We believe we are nearing completion in the Americas, and new leadership in Europe-Africa will be building upon the foundation of that business, while closely assessing the organization and its business processes for operating and financial improvement.

“As we look across our global business, Asia-Pacific is performing well, the Americas is working through a transitional year and we are closely assessing and prioritizing business improvement initiatives in Europe-Africa. I remain confident that the underlying strengths of our Company - great brands, great products, excellent quality, strong customer relationships, experienced and committed team members and solid end markets - will lead us past these near-term challenges and position our Company for long-term success.”

For earnings history and earnings-related data on Horizon Global (HZN) click here.

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