- Stronger volumes, robust operational performance, and favorable foreign exchange driving better than expected financial results year to date; full-year net income and Adjusted EBITDA currently forecasted to be at upper end of prior outlook
- Garrett on track to satisfy the Consolidated EBITDA conversion threshold in its Series A preferred stock in 2023, potentially as early as Q2 2023
- Automatic conversion of Series A preferred stock would still require 75-day volume-weighted average price (VWAP) of greater than $7.875 per share of common stock
ROLLE, Switzerland, April 04, 2023 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX, GTXAP), a leading differentiated technology provider for the automotive industry, today announced that it now expects to achieve financial results in the upper end of the full year 2023 outlook published on February 14, 2023. Year to date, better than expected financial performance has been primarily driven by strong industry volumes in key regions, the successful ramp-up of new programs, operational excellence, and favorable foreign exchange.
Garrett's improved performance could allow the Company to satisfy the Consolidated EBITDA threshold, one of two remaining conditions necessary to cause an automatic conversion of the Series A preferred stock into shares of common stock, potentially as early as Q2 2023.
The only remaining condition to conversion would be the achievement of a 75-day VWAP of greater than $7.875 on the common share price. The 75-day VWAP as of March 31, 2023 was $7.70. Both conditions need to be met in the same period to initiate the automatic conversion of the Series A preferred stock into common shares.
Full Year 2023 Outlook
Garrett's range for the full year 2023 outlook for certain GAAP and Non-GAAP financial measures remains as follows but will be updated during our next earnings conference call:
| Full Year 2023 Outlook |
Net sales (GAAP) | $3.55 billion to $3.85 billion |
Net sales growth at constant currency (Non-GAAP)* | +1% to +6% |
Net income (GAAP) | $255 million to $300 million |
Adjusted EBITDA (Non-GAAP)* | $555 million to $615 million |
Net cash provided by operating activities (GAAP) | $390 million to $490 million |
Adjusted free cash flow (Non-GAAP)* | $300 million to $400 million |
* See reconciliations to the nearest GAAP measure on page 4.
Conference Call
Garrett plans to issue financial results for the first quarter 2023 on Monday, April 24, 2023 before the open of market trading.
Garrett will also hold a conference call the same day at 8:30 am EDT / 2:30 pm CET. To participate on the conference call, please dial +1-877-883-0383 (US) or +1-412-902-6506 (international) and use the passcode 1423587.
The conference call will also be broadcast over the internet and include a slide presentation. To access the webcast and supporting material, please visit the investor relations section of the Garrett Motion website at . A replay of the conference call will be available by dialing +1-877-344-7529 (US) or +1-412-317-0088 (international) using the access code 3297013. The webcast will also be archived on Garrett's website.
Forward-Looking Statements
This release contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements including without limitation our statements regarding inflationary pressure on Garrett's business and management's inflation mitigation strategies, financial results and financial conditions, industry trends and anticipated demand for our products, Garrett's strategy, anticipated supply constraints, including with respect to semiconductors, anticipated developments in emissions standards, trends including with respect to production volatility and volume, Garrett's capital structure, anticipated new product development plans for the future including expected R&D expenditures, anticipated impacts of partnerships with third parties, and Garrett's outlook for 2023. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results or performance of Garrett to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to those described in our annual report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report"), as well as our other filings with the Securities and Exchange Commission, under the headings "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." In particular, the achievement of the conditions necessary to trigger an automatic conversion of the Series A Preferred Stock are subject to multiple factors including but not limited to those listed above, and the trading price of the Company's common stock, many of which factors are outside of the Company's control. Accordingly, an automatic conversion of the Series A Preferred Stock may not occur on the timeline currently anticipated by the Company or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by our forward-looking statements.
Non-GAAP Financial Measures
This release includes the following Non-GAAP financial measures which are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"): constant currency sales growth, EBITDA, Adjusted EBITDA, and Adjusted Free Cash Flow. The Non-GAAP financial measures provided herein are adjusted for certain items as presented in the Appendix containing Non-GAAP Reconciliations and may not be directly comparable to similar measures used by other companies in our industry, as other companies may define such measures differently. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and analysis of ongoing operating trends. Garrett believes that the Non-GAAP measures presented herein are important indicators of operating performance because they exclude the effects of certain items, therefore making them more closely reflect our operational performance. These metrics should be considered in addition to, and not as replacements for, the most comparable GAAP measure. For additional information with respect to our Non-GAAP financial measures, see the Appendix to this press release and our 2022 Annual Report.
About Garrett Motion Inc.
Garrett Motion is a differentiated technology leader, serving customers worldwide for more than 65 years with passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions. Garrett's cutting-edge technology enables vehicles to become safer, more connected, efficient and environmentally friendly. Our portfolio of turbocharging, electric boosting and automotive software solutions empowers the transportation industry to redefine and further advance motion. For more information, please visit .
For more information concerning the automatic conversion terms of the Series A preferred stock, please see the Certificate of Designations for the Series A preferred stock, which is available as an exhibit to our 2022 Annual Report. "Consolidated EBITDA" has the definition given to it in our Credit Agreement, which is also available as an exhibit to our 2022 Annual Report.
Contacts: | | |
MEDIA | | INVESTOR RELATIONS |
Christophe Mathy | | Eric Birge |
41.78.643.7194 | | 1.734.228.9529 |
Christophe.Mathy@garrettmotion.com | | Eric.Birge@garrettmotion.com |
Full Year 2023 Outlook Reconciliation of Reported Net Sales to Net Sales Growth at Constant Currency
| | 2023 Full Year |
| | Low End | | High End |
Reported net sales (% change) | | (1 | )% | | 7 | % |
Foreign currency translation | | (2 | )% | | 1 | % |
Full year 2023 Targeted Net Sales Growth at Constant Currency (Non-GAAP) | | 1 | % | | 6 | % |
Full Year 2023 Outlook Reconciliation of Net Income to Adjusted EBITDA
| | 2023 Full Year |
| | Low End | | High End |
| | (Dollars in millions) |
Net income - GAAP | | $ | 255 | | | $ | 300 | |
Net interest expense | | | 103 | | | | 103 | |
Tax expense | | | 80 | | | | 95 | |
Depreciation | | | 89 | | | | 89 | |
Full year 2023 Outlook EBITDA (Non-GAAP) | | | 527 | | | | 587 | |
Non-operating income | | | 1 | | | | 1 | |
Stock compensation expense | | | 19 | | | | 19 | |
Repositioning charges | | | 8 | | | | 8 | |
Full Year 2023 Outlook Adjusted EBITDA (Non-GAAP) | | $ | 555 | | | $ | 615 | |
Full Year 2023 Outlook Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
| | 2023 Full Year |
| | Low End | | High End |
| | (Dollars in millions) |
Net cash provided by operating activities (GAAP) | | $ | 390 | | | $ | 490 | |
Expenditures for property, plant and equipment | | | (90 | ) | | | (90 | ) |
Full year 2023 Outlook Adjusted Free Cash Flow (Non-GAAP) | | $ | 300 | | | $ | 400 | |
- 更强劲的交易量、强劲的经营业绩和有利的外汇推动今年迄今的财务业绩好于预期;全年净收入和调整后的EBITDA目前预测处于先前预期的上端
- Garrett有望在2023年达到A系列优先股的综合EBITDA转换门槛,最早可能在2023年第二季度
- A系列优先股的自动转换仍需要75天成交量加权平均价格(VWAP)超过每股普通股7.875美元
瑞士罗尔,2023年4月4日(环球通讯社)--Garrett Motion Inc.(纳斯达克代码:GTXX,GTXAP),汽车行业领先的差异化技术提供商,今天宣布,现在预计将在2023年2月14日发布的2023年全年展望的上端实现财务业绩。今年到目前为止,好于预期的财务业绩主要是由关键地区强劲的行业销量、新项目的成功启动、卓越的运营和有利的外汇推动的。
Garrett改善的业绩可能使公司达到综合EBITDA门槛,这是导致A系列优先股自动转换为普通股所必需的两个剩余条件之一,最早可能在2023年第二季度。
转换的唯一剩余条件是在普通股股价上实现75天的VWAP超过7.875美元。截至2023年3月31日的75天VWAP为7.70美元。需要在同一时期满足这两个条件,才能启动将A系列优先股自动转换为普通股。
2023年全年展望
加勒特对某些GAAP和非GAAP财务指标2023年全年的展望范围如下,但将在我们的下一次收益电话会议上更新:
| 2023年全年展望 |
净销售额(GAAP) | 35.5亿至38.5亿美元 |
按不变货币计算的净销售额增长(非GAAP)* | +1%至+6% |
净收益(GAAP) | 2.55亿至3亿美元 |
调整后的EBITDA(非GAAP)* | 5.55亿至6.15亿美元 |
经营活动提供的现金净额(GAAP) | 3.9亿至4.9亿美元 |
调整后的自由现金流(非公认会计准则)* | 3亿至4亿美元 |
*见第4页与最近的公认会计准则衡量标准的对账。
电话会议
加勒特计划在2023年4月24日星期一市场开盘前发布2023年第一季度的财务业绩。
加勒特还将于同一天美国东部时间上午8:30/欧洲中部时间下午2:30举行电话会议。要参加电话会议,请拨打+1-877-883-0383(美国)或+1-412-902-6506(国际),并使用密码1423587。
电话会议还将在互联网上播出,并包括幻灯片演示。要访问网络广播和辅助材料,请访问Garrett Motion网站的投资者关系部分,网址为。通过使用接入代码3297013拨打+1-877-344-7529(美国)或+1-412-317-0088(国际),即可重播电话会议。网络直播也将在加勒特的网站上存档。
前瞻性陈述
本新闻稿包含“1995年私人证券诉讼改革法案”中的“前瞻性陈述”。除事实陈述外,所有涉及我们或我们管理层打算、预期、计划、相信或预期未来将会或可能发生的活动、事件或发展的陈述均为前瞻性陈述,包括但不限于我们关于Garrett的业务和管理层的通胀缓解策略、财务结果和财务状况、行业趋势和对我们产品的预期需求的陈述、Garrett的战略、预期的供应限制(包括半导体)、排放标准的预期发展、包括生产波动性和产量在内的趋势、Garrett的资本结构、未来的预期新产品开发计划(包括预期的研发支出)。与第三方伙伴关系的预期影响,以及加勒特对2023年的展望。虽然我们认为前瞻性陈述基于合理的假设,但此类陈述涉及已知和未知的风险、不确定性和其他因素,可能会导致Garrett的实际结果或表现与此类前瞻性陈述明示或暗示的任何未来结果或表现大不相同。此类风险和不确定性包括但不限于我们在截至2022年12月31日的10-K表格年度报告(“2022年年度报告”)中描述的风险和不确定性,以及我们在提交给美国证券交易委员会的其他文件中“风险因素”和“有关前瞻性陈述的警示说明”标题中所描述的那些风险和不确定性。特别是,触发A系列优先股自动转换的必要条件的实现受到多种因素的影响,包括但不限于上述因素,以及公司普通股的交易价格,其中许多因素不在公司的控制范围之内。因此,A系列优先股的自动转换可能不会在公司目前预期的时间表上发生,或者根本不会发生。告诫您不要过度依赖这些前瞻性陈述,这些陈述仅在本文件发表之日发表。前瞻性陈述并不是对未来业绩的保证,实际结果、发展和业务决策可能与我们的前瞻性陈述中所设想的不同。
非公认会计准则财务指标
本新闻稿包括以下非GAAP财务指标,这些指标不是按照美国公认会计原则(“GAAP”)计算的:恒定货币销售增长、EBITDA、调整后的EBITDA和调整后的自由现金流量。本文提供的非GAAP财务计量是根据包含非GAAP协调的附录中的某些项目进行调整的,可能无法直接与本行业其他公司使用的类似计量进行比较,因为其他公司可能会对此类计量做出不同的定义。管理层认为,当与报告的金额一起考虑时,这些衡量标准对投资者和管理层了解我们正在进行的运营和分析正在进行的运营趋势是有用的。加勒特认为,这里提出的非GAAP衡量标准是经营业绩的重要指标,因为它们排除了某些项目的影响,因此使它们更能反映我们的经营业绩。这些指标应该被认为是对最具可比性的GAAP指标的补充,而不是替代。有关我们的非GAAP财务指标的更多信息,请参阅本新闻稿和我们的2022年年度报告的附录。
关于加勒特运动公司
Garrett Motion是一家差异化的技术领导者,65年来一直为全球客户提供乘用车、商用车、售后市场更换和性能提升解决方案。Garrett的尖端技术使车辆变得更安全、更联网、更高效和环保。我们的涡轮增压、电动助力和汽车软件解决方案组合使运输行业能够重新定义并进一步推进运动。欲了解更多信息,请访问。
有关A系列优先股自动转换条款的更多信息,请参阅A系列优先股指定证书,该证书可作为我们2022年年报的展品。“综合EBITDA”已在我们的信贷协议中给出了定义,该协议也可作为我们2022年年报的展品。
联系人: | | |
媒体 | | 投资者关系 |
克里斯托夫·马西 | | 埃里克·伯奇 |
41.78.643.7194 | | 1.734.228.9529 |
邮箱:Christophe.Mathy@garrettmotion.com | | 邮箱:Eric.Birge@garrettmotion.com |
2023年全年展望报告的净销售额与按不变货币计算的净销售额增长的对账
| | 2023年全年 |
| | 低端 | | 高端 |
报告净销售额(变动百分比) | | (1) | )% | | 7. | 百分比 |
外币折算 | | (2) | )% | | 1 | 百分比 |
2023年全年按不变货币计算的目标净销售额增长(非GAAP) | | 1 | 百分比 | | 6. | 百分比 |
2023年全年净收入与调整后EBITDA的对账
| | 2023年全年 |
| | 低端 | | 高端 |
| | (百万美元) |
净收入-GAAP | | $ | 二五五 | | | $ | 300个 | |
净利息支出 | | | 103 | | | | 103 | |
税费支出 | | | 80 | | | | 95 | |
折旧 | | | 八十九 | | | | 八十九 | |
2023年全年展望EBITDA(非GAAP) | | | 527 | | | | 587 | |
营业外收入 | | | 1 | | | | 1 | |
股票补偿费用 | | | 19个 | | | | 19个 | |
重新定位炸药 | | | 8个 | | | | 8个 | |
2023年全年展望调整后EBITDA(非GAAP) | | $ | 五百五十五 | | | $ | 615 | |
2023年全年经营活动提供的现金净额与调整后自由现金流量的对账
| | 2023年全年 |
| | 低端 | | 高端 |
| | (百万美元) |
经营活动提供的现金净额(GAAP) | | $ | 390 | | | $ | 四百九十 | |
不动产、厂房和设备支出 | | | (90) | ) | | | (90) | ) |
2023年全年展望调整后自由现金流(非公认会计准则) | | $ | 300个 | | | $ | 四百 | |