Horizon Global (HZN) Reports Q4 Loss of $0.21, Revenues Miss

Horizon Global (NYSE: HZN) reported Q4 EPS of ($0.21), versus ($1.24) reported last year. Revenue for the quarter came in at $175.9 million versus the consensus estimate of $209.05 million.

Fourth Quarter and Recent Highlights

• Net sales of $175.9 million; increase of $33.6 million, or 23.6%, compared to prior year comparable period
• Operating loss of $0.8 million, $32.9 million improvement compared to prior year comparable period
• Net loss from continuing operations of $5.8 million; $26.2 million improvement compared to prior year comparable period
• Adjusted EBITDA(1) of $7.3 million; $23.8 million improvement compared to prior year comparable period
• Entered into $225.0 million term loan, including $125.0 million delayed draw facility; proceeds repaid existing term loan and will repay outstanding convertible notes; reduced interest rate with flexible financial covenants in support of Company's long-term strategic initiatives

“2020 was a transformational year for Horizon Global as reflected by significant year-over-year improvements in profitability and cash flow generation,” stated Terry Gohl, Horizon Global’s President and Chief Executive Officer. “We entered 2020 with great momentum and high expectations for the turnaround of the Company. While we immediately faced unprecedented macro-economic challenges due to the global pandemic, the team maintained its focus and ultimately delivered significant value to our shareholders as well as all of our key stakeholders. To offset commercial headwinds in early 2020, we accelerated the execution of our operational improvement initiatives, including the operational transformation of Mexico manufacturing and Americas distribution, streamlining our Americas product portfolio and rationalizing our Europe-Africa distribution footprint. This resulted in improved productivity and throughput, which enabled us to deliver on customer commitments and further solidified Horizon Global as the supplier of choice during the second half of the year. Our strong financial performance allowed us to opportunistically address our full capital structure in early 2021, resulting in a new term loan with a lower interest rate, flexible covenants and other favorable terms that enable us to pursue our long-term strategic plan.”

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

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