Horizon Global (HZN) Misses Q4 EPS by 74c, Slight Miss on Revenues

Horizon Global (NYSE: HZN) reported Q4 EPS of ($1.40), $0.74 worse than the analyst estimate of ($0.66). Revenue for the quarter came in at $171.96 million versus the consensus estimate of $172.1 million.

"This past year, we took considerable steps to improve operational performance, reset the business in the U.S., and establish a foundation for top- and bottom-line growth in 2019 and beyond," commented Carl Bizon, President and Chief Executive Officer of Horizon Global. “As Interim CEO and then permanent CEO since October, we made impactful changes to our leadership team, including new leaders in Europe-Africa, and, most recently, the addition of Barry Steele as our new permanent CFO. We completed the action plan for the Americas and are now delivering efficiently from our primary U.S. distribution center in Kansas City, with past due orders in the Americas decreased to less than $6.0 million at the end of 2018 from $8.5 million at the end of the third quarter and a seasonal peak of $26.0 million.

“In Europe-Africa, new leadership is making meaningful progress on a series of business improvement initiatives intended to significantly impact operations for improved long-term performance in the region. These business improvement initiatives will take time and attention to complete, but, in the end, we believe they will optimize operations, improve product quality, and reduce costs. A major focus remains on supply chain and logistics to improve the overall efficiency of our operations. We remain optimistic about our team’s ability to drive positive momentum in the segment over time.”

Bizon continued, “Our Asia-Pacific segment continued to perform well in 2018, and, in the fourth quarter, this segment was awarded multiple meaningful contracts, which represent annualized revenue of approximately $10.4 million. The momentum in this region continues, and we expect another solid year of performance in 2019. With the continued momentum in Asia-Pacific, a return to growth in the Americas, progress on the turnaround in Europe-Africa, and the recently completed financing to support our business plan, we look forward to delivering value to our shareholders.”

2019 Full-Year Outlook

Bizon concluded, “We are optimistic regarding our outlook for the year, although we are experiencing a slow start to the prime spring and summer selling season in the U.S. due to cold and wet weather conditions impacting numerous industries. With our new financing in place, providing the liquidity and capital flexibility we need to execute our business plan, we have a stronger foundation from which to operate in the coming year. Our senior leadership team is now fully transitioned with the addition of a permanent CFO, and we are operating as one team with one goal to complete the operational turnaround at Horizon Global. We remain focused on providing the best products and service to our customers and end-users, ultimately translating to enhanced value for our shareholders.”

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

You May Also Be Interested In

• SanDisk upgraded at JPMorgan after investor day; shares climb
• Algorhythm Holdings (RIME) Tops Q2 EPS by 54c
• Sinda raises $331M in IPO, reports Q2 net loss of $16.6M