Horizon Global Reports Financial Results for the Fourth Quarter and Full Year 2020

March 11, 2021 6:30 AM EST

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

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

Full Year Highlights

  • $39.1 million of cash generated from operating activities; $107.6 million improvement over prior year
  • Cash and availability(2) of $83.4 million; $38.5 million improvement over prior year
  • Net sales of $661.2 million; decrease of $29.2 million, or 4.2%, compared to prior year
  • Operating loss of $6.9 million; $50.3 million improvement compared to prior year
  • Net loss from continuing operations of $37.5 million; $72.5 million improvement compared to prior year
  • Adjusted EBITDA(1) of $26.4 million; $34.7 million improvement compared to prior year

PLYMOUTH, Mich.--(BUSINESS WIRE)-- Horizon Global Corporation (NYSE: HZN), one of the world’s leading manufacturers of branded towing and trailering equipment, today reported fourth quarter and full year financial results for 2020.

“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.”

2020 Fourth Quarter Segment Results

Horizon Americas. Net sales increased $24.7 million, or 34.3%, to $96.8 million. The net sales increase was primarily driven by a $13.3 million increase in the aftermarket sales channel, as well as a $7.5 million combined increase in the retail and e-commerce sales channels. Gross profit increased $15.6 million, due to higher net sales and operational improvements and manufacturing efficiencies, including favorable manufacturing costs, as well as lower scrap and inventory reserves. Horizon Americas generated operating profit of $8.6 million, an increase of $24.8 million compared to the prior year comparable period, driven by the segment's favorable gross profit, coupled with $8.6 million lower SG&A. Adjusted EBITDA(1) increased to $10.9 million for the quarter, as compared to $(5.6) million for the prior year comparable period.

Horizon Europe-Africa. Net sales increased $8.9 million, or 12.6%, to $79.1 million. The net sales increase was primarily driven by a $5.9 million combined increase in the automotive OEM and automotive OES sales channels, as well as a $3.1 million increase in the aftermarket sales channels. Gross profit increased $9.2 million, due to higher net sales coupled with favorable material input costs and labor efficiencies. Horizon Europe-Africa generated an operating loss of $(2.4) million, an improvement of $9.9 million compared to the prior year comparable period, driven by the segment's favorable gross profit. Adjusted EBITDA(1) increased to $2.5 million for the quarter, as compared to a loss of $(5.9) million for the prior year comparable period.

Balance Sheet and Liquidity. Cash and Availability(2) was $83.4 million, an increase of $38.5 million compared to the end of the prior year comparable period. Working Capital(3) was $55.6 million, a reduction of $34.0 million compared to the end of the prior year comparable period. Gross debt increased $25.2 million to $266.1 million over the prior year comparable period, primarily reflecting increased borrowings in the first two quarters of 2020 to strengthen liquidity in response to the COVID-19 pandemic.

Summary

Gohl commented, “Horizon Global’s 2020 performance is testament to the hard work and dedication of each and every member of our global team. We established a culture of continuous improvement and we are not taking our foot off the gas in 2021. We will build on our positive momentum and remain laser focused on our strategic plan and operational excellence. With our current open order book, brand recognition and customer confidence, we believe we are well positioned to drive margin expansion, profitability improvement and increased cash flow generation."

Conference

Horizon Global will host a conference call regarding fourth quarter and full year 2020 earnings on Thursday, March 11, 2021 at 8:30 a.m. Eastern Time. The conference call will be hosted by Horizon Global's President and Chief Executive Officer, Terry Gohl, and Dennis Richardville, Chief Financial Officer. Participants on the call are asked to register five to ten minutes prior to the scheduled start time by dialing (844) 825-9786 and from outside the U.S. at (412) 902-4185. Please use the conference identification number 10152299.

The fourth quarter and full-year 2020 results and supplemental materials, including a presentation in PDF format, will be distributed before the market opens on March 11, 2021, and will be available on the Company’s website at www.horizonglobal.com prior to the start of the call.

The conference call will be webcast simultaneously and in its entirety through the Horizon Global website. Shareholders, media representatives and others may participate in the webcast by registering through the investor relations section on the Company’s website.

A replay of the call will be available on Horizon Global’s website or by phone by dialing (877) 344-7529 and from outside the U.S. at (412) 317-0088. Please use the conference identification number 10152299. The telephone replay will be available approximately two hours after the end of the call and continue through March 25, 2021.

About Horizon Global

Headquartered in Plymouth, MI, Horizon Global is the #1 designer, manufacturer and distributor of a wide variety of high-quality, custom-engineered towing, trailering, cargo management and other related accessory products in North America and Europe. The Company serves OEMs, retailers, dealer networks and the end consumer as the category leader in the automotive, leisure and agricultural market segments. Horizon provides its customers with outstanding products and services that reflect the Company's commitment to market leadership, innovation and operational excellence. The Company’s mission is to utilize forward-thinking technology to develop and deliver best in-class products for our customers, engage with our employees and realize value creation for our shareholders.

Horizon Global is home to some of the world’s most recognized brands in the towing and trailering industry, including: Draw-Tite, Reese, Westfalia, BULLDOG, Fulton and Tekonsha. Horizon Global has approximately 4,000 employees.

For more information, please visit www.horizonglobal.com.

Forward-Looking Statements

This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained herein speak only as of the date they are made and give our current expectations or forecasts of future events. These forward-looking statements can be identified by the use of forward-looking words, such as “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan” or other comparable words, or by discussions of strategy that may involve risks and uncertainties. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which could materially affect our business, financial condition or future results including, but not limited to, risks and uncertainties with respect to: the impact of the COVID-19 pandemic on the Company’s business, results of operations, financial condition and liquidity; the Company’s ability to maintain compliance with the New York Stock Exchange’s continued listing standards; the Company’s debt, including the Company’s ability to comply with the applicable financial covenants related thereto; liabilities and restrictions imposed by the Company’s debt instruments; market demand; competitive factors; supply constraints; material and energy costs; technology factors; litigation; government and regulatory actions including the impact of any tariffs, quotas, or surcharges; the Company’s accounting policies; future trends; general economic and currency conditions; various conditions specific to the Company’s business and industry; the success of the Company’s action plan, including the actual amount of savings and timing thereof; the success of the Company’s business improvement initiatives in Europe-Africa, including the amount of savings and timing thereof; the Company’s exposure to product liability claims from customers and end users, and the costs associated therewith; the Company’s ability to meet its covenants in the agreements governing its debt; factors affecting the Company’s business that are outside of its control, including natural disasters, pandemics, including the current COVID-19 pandemic, accidents and governmental actions; and other risks that are discussed in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. The risks described herein are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deemed to be immaterial also may materially adversely affect our business, financial position and results of operations or cash flows. We caution readers not to place undue reliance on such statements, which speak only as of the date hereof. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

(1)

Please refer to “Company and Business Segment Financial Information” which details certain costs, expense, other charges, that are included in the determination of net income attributable to Horizon Global under GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results. The Company’s management utilizes Adjusted EBITDA as the key measure of company and segment performance and for planning and forecasting purposes, as management believes this measure is most reflective of the operational profitability or loss of the Company and its operating segments and provides management and investors with information to evaluate the operating performance of its business and is representative of its performance used to measure certain of its financial covenants. Adjusted EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Horizon Global, which is the most directly comparable financial measure to Adjusted EBITDA that is prepared in accordance with U.S. GAAP.

(2)

"Cash and Availability" refers to cash and cash equivalents and amounts of cash accessible but undrawn from credit facilities.

(3)

Working Capital defined as "total current assets" excluding "cash, cash equivalents and restricted cash", less "total current liabilities" excluding "current maturities, long-term debt" and "short-term operating lease liabilities".

Horizon Global Corporation

Condensed Consolidated Balance Sheets

(Dollars in thousands)

 

 

 

December 31,
2020

 

December 31,
2019

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

44,970

 

 

$

11,770

 

Restricted cash

 

 

5,720

 

 

 

 

Receivables, net

 

 

87,420

 

 

 

71,680

 

Inventories

 

 

115,320

 

 

 

136,650

 

Prepaid expenses and other current assets

 

 

11,510

 

 

 

8,570

 

Total current assets

 

 

264,940

 

 

 

228,670

 

Property and equipment, net

 

 

74,090

 

 

 

75,830

 

Operating lease right-of-use assets

 

 

47,310

 

 

 

45,770

 

Goodwill

 

 

3,360

 

 

 

4,350

 

Other intangibles, net

 

 

58,230

 

 

 

60,120

 

Deferred income taxes

 

 

1,280

 

 

 

430

 

Other assets

 

 

7,280

 

 

 

5,870

 

Total assets

 

$

456,490

 

 

$

421,040

 

Liabilities and Shareholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

Short-term borrowings and current maturities, long-term debt

 

$

14,120

 

 

$

4,310

 

Accounts payable

 

 

99,520

 

 

 

78,450

 

Short-term operating lease liabilities

 

 

12,180

 

 

 

9,880

 

Accrued liabilities

 

 

59,100

 

 

 

48,850

 

Total current liabilities

 

 

184,920

 

 

 

141,490

 

Gross long-term debt

 

 

251,960

 

 

 

236,550

 

Unamortized debt issuance costs and discount

 

 

(20,570

)

 

 

(31,500

)

Long-term debt

 

 

231,390

 

 

 

205,050

 

Deferred income taxes

 

 

3,130

 

 

 

4,040

 

Long-term operating lease liabilities

 

 

46,340

 

 

 

48,070

 

Other long-term liabilities

 

 

14,560

 

 

 

13,790

 

Total liabilities

 

 

480,340

 

 

 

412,440

 

Total Horizon Global shareholders' (deficit) equity

 

 

(18,690

)

 

 

12,340

 

Noncontrolling interest

 

 

(5,160

)

 

 

(3,740

)

Total shareholders' (deficit) equity

 

 

(23,850

)

 

 

8,600

 

Total liabilities and shareholders' equity

 

$

456,490

 

 

$

421,040

 

Horizon Global Corporation

Consolidated Statements of Operations (unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

175,860

 

 

$

142,280

 

 

$

661,230

 

 

$

690,450

 

Cost of sales

 

 

(142,980

)

 

 

(134,210

)

 

 

(540,680

)

 

 

(594,220

)

Gross profit

 

 

32,880

 

 

 

8,070

 

 

 

120,550

 

 

 

96,230

 

Selling, general and administrative expenses

 

 

(33,690

)

 

 

(41,040

)

 

 

(127,370

)

 

 

(154,180

)

Net (loss) gain on dispositions of property and equipment

 

 

(10

)

 

 

(720

)

 

 

(90

)

 

 

780

 

Operating loss

 

 

(820

)

 

 

(33,690

)

 

 

(6,910

)

 

 

(57,170

)

Other income (expense), net

 

 

960

 

 

 

1,220

 

 

 

(470

)

 

 

(5,390

)

Interest expense

 

 

(7,710

)

 

 

(8,000

)

 

 

(31,680

)

 

 

(58,270

)

Loss from continuing operations before income tax

 

 

(7,570

)

 

 

(40,470

)

 

 

(39,060

)

 

 

(120,830

)

Income tax benefit

 

 

1,750

 

 

 

8,490

 

 

 

1,580

 

 

 

10,820

 

Net loss from continuing operations

 

 

(5,820

)

 

 

(31,980

)

 

 

(37,480

)

 

 

(110,010

)

(Loss) income from discontinued operations, net of income taxes

 

 

 

 

 

 

 

 

(500

)

 

 

189,520

 

Net (loss) income

 

 

(5,820

)

 

 

(31,980

)

 

 

(37,980

)

 

 

79,510

 

Less: Net loss attributable to noncontrolling interest

 

 

(410

)

 

 

(400

)

 

 

(1,420

)

 

 

(1,240

)

Net (loss) income attributable to Horizon Global

 

$

(5,410

)

 

$

(31,580

)

 

$

(36,560

)

 

$

80,750

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to Horizon Global:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.21

)

 

$

(1.24

)

 

$

(1.40

)

 

$

(4.30

)

Discontinued operations

 

 

 

 

 

 

 

 

(0.02

)

 

 

7.49

 

Total

 

$

(0.21

)

 

$

(1.24

)

 

$

(1.42

)

 

$

3.19

 

Diluted:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.21

)

 

$

(1.24

)

 

$

(1.40

)

 

$

(4.30

)

Discontinued operations

 

 

 

 

 

 

 

 

(0.02

)

 

 

7.49

 

Total

 

$

(0.21

)

 

$

(1.24

)

 

$

(1.42

)

 

$

3.19

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

26,157,634

 

 

 

25,387,388

 

 

 

25,797,529

 

 

 

25,297,576

 

Diluted

 

 

26,157,634

 

 

 

25,387,388

 

 

 

25,797,529

 

 

 

25,297,576

 

Horizon Global Corporation

Consolidated Statements of Cash Flows (unaudited)

(Dollars in thousands)

 

 

 

Twelve Months Ended
December 31,

 

 

2020

 

2019

Cash Flows from Operating Activities:

 

 

 

 

Net (loss) income

 

$

(37,980

)

 

$

79,510

 

Less: Net (loss) income from discontinued operations

 

 

(500

)

 

 

189,520

 

Net loss from continuing operations

 

 

(37,480

)

 

 

(110,010

)

 

 

 

 

 

Adjustments to reconcile net loss from continuing operations to net cash provided by (used for) operating activities:

 

 

 

 

Net loss (gain) on dispositions of property and equipment

 

 

90

 

 

 

(780

)

Depreciation

 

 

16,290

 

 

 

15,940

 

Amortization of intangible assets

 

 

6,620

 

 

 

5,750

 

Write off of operating lease assets

 

 

 

 

 

10,780

 

Amortization of original issuance discount and debt issuance costs

 

 

14,200

 

 

 

22,060

 

Deferred income taxes

 

 

(2,060

)

 

 

(7,280

)

Non-cash compensation expense

 

 

3,000

 

 

 

2,150

 

Paid-in-kind interest

 

 

8,120

 

 

 

9,720

 

(Increase) decrease in receivables

 

 

(12,230

)

 

 

19,290

 

Decrease in inventories

 

 

24,220

 

 

 

8,380

 

Increase in prepaid expenses and other assets

 

 

(4,900

)

 

 

(2,990

)

Increase (decrease) in accounts payable and accrued liabilities

 

 

24,590

 

 

 

(30,140

)

Other, net

 

 

(1,370

)

 

 

(11,350

)

Net cash provided by (used for) operating activities for continuing operations

 

 

39,090

 

 

 

(68,480

)

Cash Flows from Investing Activities:

 

 

 

 

Capital expenditures

 

 

(13,310

)

 

 

(9,720

)

Net proceeds from sale of business

 

 

 

 

 

214,570

 

Net proceeds from disposition of property and equipment

 

 

90

 

 

 

1,620

 

Net cash (used for) provided by investing activities for continuing operations

 

 

(13,220

)

 

 

206,470

 

Cash Flows from Financing Activities:

 

 

 

 

Proceeds from borrowing on credit facilities

 

 

7,220

 

 

 

13,450

 

Repayments of borrowings on credit facilities

 

 

(4,800

)

 

 

(7,490

)

Proceeds from Revolving Credit Facility, net of issuance costs

 

 

54,680

 

 

 

 

Repayments of borrowings on Revolving Credit Facility

 

 

(32,760

)

 

 

 

Proceeds from ABL revolving debt, net of issuance costs

 

 

8,000

 

 

 

79,790

 

Repayments of borrowings on ABL revolving debt

 

 

(27,920

)

 

 

(123,240

)

Repayments of borrowings on First Lien Term Loan, including transaction fees

 

 

 

 

 

(173,430

)

Proceeds from Second Lien Term Loan, net of issuance costs

 

 

 

 

 

35,500

 

Proceeds from Paycheck Protection Program Loan

 

 

8,670

 

 

 

 

Proceeds from issuance of Series A Preferred Stock

 

 

 

 

 

5,340

 

Proceeds from issuance of Warrants

 

 

 

 

 

5,270

 

Other, net

 

 

(440

)

 

 

100

 

Net cash provided by (used for) financing activities for continuing operations

 

 

12,650

 

 

 

(164,710

)

Discontinued Operations:

 

 

 

 

Net cash (used for) provided by discontinued operating activities

 

 

(500

)

 

 

11,430

 

Net cash used for discontinued investing activities

 

 

 

 

 

(1,120

)

Net cash provided by discontinued financing activities

 

 

 

 

 

 

Net cash (used for) provided by discontinued operations

 

 

(500

)

 

 

10,310

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

900

 

 

 

530

 

Cash and Cash Equivalents and Restricted Cash:

 

 

 

 

Increase (decrease) for the year

 

 

38,920

 

 

 

(15,880

)

At beginning of year

 

 

11,770

 

 

 

27,650

 

At end of year

 

$

50,690

 

 

$

11,770

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest

 

$

8,930

 

 

$

20,060

 

Cash paid for taxes, net of refunds

 

$

1,560

 

 

$

80

 

Appendix I

Horizon Global Corporation
Company and Business Segment Financial Information
(Unaudited - dollars in thousands)

The Company’s management utilizes Adjusted EBITDA(1) as the key measure of company and segment performance and for planning and forecasting purposes, as management believes this measure is most reflective of the operational profitability or loss of the Company and its operating segments and provides management and investors with information to evaluate the operating performance of its business and is representative of its performance used to measure certain of its financial covenants. Adjusted EBITDA(1) should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Horizon Global, which is the most directly comparable financial measure to Adjusted EBITDA(1) that is prepared in accordance with U.S. GAAP. Adjusted EBITDA(1), as determined and measured by Horizon Global, should also not be compared to similarly titled measures reported by other companies. The Company also uses operating income (loss) to measure stand-alone segment performance.

Adjusted EBITDA(1) is defined as net income attributable to Horizon Global before interest expense, income taxes, depreciation and amortization, and before certain items, as applicable such as severance, restructuring, relocation and related business disruption costs, impairment of goodwill and other intangibles, non-cash stock compensation, certain product liability and litigation claims, acquisition and integration costs, gains (losses) on business divestitures and other assets, board transition support and non-cash unrealized foreign currency remeasurement costs.

The following table summarizes Adjusted EBITDA(1) for our operating segments for the three months ended December 31, 2020 and 2019:

 

 

Three Months Ended
December 31, 2020

 

Three Months Ended
December 31, 2019

 

Variance

 

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Consolidated

 

 

(dollars in thousands)

 

(dollars in thousands)

Net loss attributable to Horizon Global

 

 

 

 

 

 

 

$

(5,410

)

 

 

 

 

 

 

 

$

(31,580

)

 

$

26,170

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(410

)

 

 

 

 

 

 

 

 

(400

)

 

 

(10

)

Net loss

 

 

 

 

 

 

 

$

(5,820

)

 

 

 

 

 

 

 

$

(31,980

)

 

$

26,160

 

Interest expense

 

 

 

 

 

 

 

 

7,710

 

 

 

 

 

 

 

 

 

8,000

 

 

 

(290

)

Income tax benefit

 

 

 

 

 

 

 

 

(1,750

)

 

 

 

 

 

 

 

 

(8,490

)

 

 

6,740

 

Depreciation and amortization

 

 

 

 

 

 

 

 

6,760

 

 

 

 

 

 

 

 

 

4,900

 

 

 

1,860

 

EBITDA

 

$

9,870

 

 

$

3,460

 

 

$

(6,430

)

 

$

6,900

 

 

$

(14,280

)

 

$

(7,920

)

 

$

(5,370

)

 

$

(27,570

)

 

$

34,470

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

410

 

 

 

 

 

 

410

 

 

 

 

 

 

400

 

 

 

 

 

 

400

 

 

 

10

 

Severance

 

 

 

 

 

(210

)

 

 

30

 

 

 

(180

)

 

 

 

 

 

1,320

 

 

 

430

 

 

 

1,750

 

 

 

(1,930

)

Restructuring, relocation and related business disruption costs

 

 

150

 

 

160

 

 

 

270

 

 

 

580

 

 

 

8,390

 

 

 

220

 

 

 

(260

)

 

 

8,350

 

 

 

(7,770

)

Non-cash stock compensation

 

 

 

 

 

 

 

 

810

 

 

 

810

 

 

 

 

 

 

 

 

 

330

 

 

 

330

 

 

 

480

 

Loss on business divestitures and other assets

 

 

460

 

 

 

 

 

 

 

 

 

460

 

 

 

790

 

 

 

 

 

 

 

 

 

790

 

 

 

(330

)

Board transition support

 

 

 

 

 

 

 

 

(170

)

 

 

(170

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(170

)

Product liability and litigation claims

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,710

 

 

 

 

 

 

1,710

 

 

 

(1,710

)

Debt issuance costs

 

 

 

 

 

60

 

 

 

30

 

 

 

90

 

 

 

 

 

 

 

 

 

(280

)

 

 

(280

)

 

 

370

 

Unrealized foreign currency remeasurement costs

 

 

410

 

 

 

(1,410

)

 

 

(580

)

 

 

(1,580

)

 

 

(160

)

 

 

(1,390

)

 

 

(310

)

 

 

(1,860

)

 

 

280

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(310

)

 

 

(270

)

 

 

460

 

 

 

(120

)

 

 

120

 

Adjusted EBITDA

 

$

10,890

 

 

$

2,470

 

 

$

(6,040

)

 

$

7,320

 

 

$

(5,570

)

 

$

(5,930

)

 

$

(5,000

)

 

$

(16,500

)

 

$

23,820

 

The following table summarizes Adjusted EBITDA(1) for our operating segments for the twelve months ended December 31, 2020 and 2019:

 

 

Twelve Months Ended
December 31, 2020

 

Twelve Months Ended
December 31, 2019

 

Variance

 

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Horizon
Americas

 

Horizon
Europe-
Africa

 

Corporate

 

Consolidated

 

Consolidated

 

 

(dollars in thousands)

 

(dollars in thousands)

Net (loss) income attributable to Horizon Global

 

 

 

 

 

 

 

$

(36,560

)

 

 

 

 

 

 

 

$

80,750

 

 

$

(117,310

)

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(1,420

)

 

 

 

 

 

 

 

 

(1,240

)

 

 

(180

)

Net (loss) income

 

 

 

 

 

 

 

$

(37,980

)

 

 

 

 

 

 

 

$

79,510

 

 

$

(117,490

)

Interest expense

 

 

 

 

 

 

 

 

31,680

 

 

 

 

 

 

 

 

 

58,270

 

 

 

(26,590

)

Income tax benefit

 

 

 

 

 

 

 

 

(1,580

)

 

 

 

 

 

 

 

 

(10,820

)

 

 

9,240

 

Depreciation and amortization

 

 

 

 

 

 

 

 

22,910

 

 

 

 

 

 

 

 

 

21,690

 

 

 

1,220

 

EBITDA

 

$

34,030

 

 

$

6,610

 

 

$

(25,610

)

 

$

15,030

 

 

$

(4,320

)

 

$

(3,370

)

 

$

156,340

 

 

$

148,650

 

 

$

(133,620

)

Net loss attributable to noncontrolling interest

 

 

 

 

 

1,420

 

 

 

 

 

 

1,420

 

 

 

 

 

 

1,240

 

 

 

 

 

 

1,240

 

 

 

180

 

Loss (income) from discontinued operations, net of tax

 

 

 

 

 

 

 

 

500

 

 

 

500

 

 

 

 

 

 

 

 

 

(189,520

)

 

 

(189,520

)

 

 

190,020

 

Severance

 

 

530

 

 

(360

)

 

 

20

 

 

 

190

 

 

 

(200

)

 

 

1,330

 

 

 

2,050

 

 

 

3,180

 

 

 

(2,990

)

Restructuring, relocation and related business disruption costs

 

 

1,700

 

 

 

170

 

 

 

740

 

 

 

2,610

 

 

 

9,500

 

 

 

(1,190

)

 

 

3,990

 

 

 

12,300

 

 

 

(9,690

)

Non-cash stock compensation

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

2,150

 

 

 

2,150

 

 

 

850

 

Loss (gain) on business divestitures and other assets

 

 

1,480

 

 

 

(180

)

 

 

20

 

 

 

1,320

 

 

 

2,070

 

 

 

3,630

 

 

 

 

 

 

5,700

 

 

 

(4,380

)

Board transition support

 

 

 

 

 

 

 

 

(170

)

 

 

(170

)

 

 

 

 

 

 

 

 

1,450

 

 

 

1,450

 

 

 

(1,620

)

Product liability and litigation claims

 

 

 

 

 

1,510

 

 

 

 

 

 

1,510

 

 

 

820

 

 

 

1,760

 

 

 

 

 

 

2,580

 

 

 

(1,070

)

Debt issuance costs

 

 

 

 

 

60

 

 

 

1,870

 

 

 

1,930

 

 

 

 

 

 

 

 

 

4,070

 

 

 

4,070

 

 

 

(2,140

)

Unrealized foreign currency remeasurement costs

 

 

690

 

 

 

(550

)

 

 

(1,070

)

 

 

(930

)

 

 

 

 

 

(180

)

 

 

130

 

 

 

(50

)

 

 

(880

)

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

560

 

 

 

(450

)

 

 

(170

)

 

 

(60

)

 

 

60

 

Adjusted EBITDA

 

$

38,430

 

 

$

8,680

 

 

$

(20,700

)

 

$

26,410

 

 

$

8,430

 

 

$

2,770

 

 

$

(19,510

)

 

$

(8,310

)

 

$

34,720

 

Segment Information

The following table summarizes financial information for our operating segments for the three months ended December 31, 2020 and 2019:

 

 

Three Months Ended
December 31,

 

Change

 

 

2020

 

2019

 

$

 

%

 

 

(unaudited, dollars in thousands)

Net Sales

 

 

 

 

 

 

 

 

Horizon Americas

 

$

96,750

 

 

$

72,050

 

 

$

24,700

 

 

34.3

%

Horizon Europe‑Africa

 

 

79,110

 

 

 

70,230

 

 

 

8,880

 

 

12.6

%

Total

 

$

175,860

 

 

$

142,280

 

 

$

33,580

 

 

23.6

%

Gross Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

25,130

 

 

$

9,560

 

 

$

15,570

 

 

162.9

%

Horizon Europe‑Africa

 

 

7,750

 

 

 

(1,490

)

 

 

9,240

 

 

620.1

%

Total

 

$

32,880

 

 

$

8,070

 

 

$

24,810

 

 

307.4

%

Operating Profit (Loss)

 

 

 

 

 

 

 

 

Horizon Americas

 

$

8,620

 

 

$

(16,150

)

 

$

24,770

 

 

153.4

%

Horizon Europe‑Africa

 

 

(2,350

)

 

 

(12,220

)

 

 

9,870

 

 

80.8

%

Corporate

 

 

(7,090

)

 

 

(5,320

)

 

 

(1,770

)

 

(33.3

)%

Total

 

$

(820

)

 

$

(33,690

)

 

$

32,870

 

 

97.6

%

Adjusted EBITDA

 

 

 

 

 

 

 

 

Horizon Americas

 

$

10,890

 

 

$

(5,570

)

 

$

16,460

 

 

295.5

%

Horizon Europe-Africa

 

 

2,470

 

 

 

(5,930

)

 

 

8,400

 

 

141.7

%

Corporate

 

 

(6,040

)

 

 

(5,000

)

 

 

(1,040

)

 

(20.8

)%

Total

 

$

7,320

 

 

$

(16,500

)

 

$

23,820

 

 

144.4

%

The following table summarizes financial information for our operating segments for the twelve months ended December 31, 2020 and 2019:

 

 

Twelve Months Ended
December 31,

 

Change

 

 

2020

 

2019

 

$

 

%

 

 

(unaudited, dollars in thousands)

Net Sales

 

 

 

 

 

 

 

 

Horizon Americas

 

$

382,380

 

 

$

372,720

 

 

$

9,660

 

 

2.6

%

Horizon Europe‑Africa

 

 

278,850

 

 

 

317,730

 

 

 

(38,880

)

 

(12.2

)%

Total

 

$

661,230

 

 

$

690,450

 

 

$

(29,220

)

 

(4.2

)%

Gross Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

95,850

 

 

$

71,640

 

 

$

24,210

 

 

33.8

%

Horizon Europe‑Africa

 

 

24,700

 

 

 

24,590

 

 

 

110

 

 

0.4

%

Total

 

$

120,550

 

 

$

96,230

 

 

$

24,320

 

 

25.3

%

Operating Profit (Loss)

 

 

 

 

 

 

 

 

Horizon Americas

 

$

27,950

 

 

$

(10,390

)

 

$

38,340

 

 

369.0

%

Horizon Europe‑Africa

 

 

(8,390

)

 

 

(12,100

)

 

 

3,710

 

 

30.7

%

Corporate

 

 

(26,470

)

 

 

(34,680

)

 

 

8,210

 

 

23.7

%

Total

 

$

(6,910

)

 

$

(57,170

)

 

$

50,260

 

 

87.9

%

Adjusted EBITDA

 

 

 

 

 

 

 

 

Horizon Americas

 

$

38,430

 

 

$

8,430

 

 

$

30,000

 

 

355.9

%

Horizon Europe-Africa

 

 

8,680

 

 

 

2,770

 

 

 

5,910

 

 

213.4

%

Corporate

 

 

(20,700

)

 

 

(19,510

)

 

 

(1,190

)

 

(6.1

)%

Total

 

$

26,410

 

 

$

(8,310

)

 

$

34,720

 

 

417.8

%

Appendix II

Horizon Global Corporation
Reconciliation of Reported Revenue Growth
to Constant Currency Basis
(Unaudited)

We evaluate growth in our operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our growth, consistent with how we evaluate our performance. Constant currency revenue results are calculated by translating current year revenue in local currency using the prior year's currency conversion rate. This non-GAAP measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Our use of this term may vary from the use of similarly-titled measures by other issuers due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.

 

 

Three Months Ended
December 31, 2020

 

Twelve Months Ended
December 31, 2020

 

 

Horizon
Americas

 

Horizon
Europe‑

Africa

 

Consolidated

 

Horizon
Americas

 

Horizon
Europe‑

Africa

 

Consolidated

Revenue growth as reported

 

34.3

%

 

12.6

%

 

23.6

%

 

2.6

%

 

(12.2

)%

 

(4.2

)%

Less: currency impact

 

(0.6

)%

 

6.6

%

 

18.5

%

 

(0.4

)%

 

1.8

%

 

0.6

%

Revenue growth at constant currency

 

34.9

%

 

6.0

%

 

5.1

%

 

3.0

%

 

(14.0

)%

 

(4.8

)%

 

Jeff Tryka, CFA
Investor Relations, Lambert & Co.
(616) 295-2509
jtryka@horizonglobal.com

Source: Horizon Global Corporation



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Business Wire, Press Releases

Related Entities

Earnings, Definitive Agreement