Garrett Motion Inc. (Nasdaq: GTX) (the "Company"),
a leading differentiated automotive technology provider, today
announced its financial results for the three months ended March
31, 2024.
$ millions (unless otherwise noted) |
|
Q1 2024 |
|
Q1 2023 |
Net sales |
|
915 |
|
970 |
Cost of goods sold |
|
743 |
|
781 |
Gross profit |
|
172 |
|
189 |
Gross profit % |
|
18.8% |
|
19.5% |
Selling, general and administrative expenses |
|
64 |
|
56 |
Income before taxes |
|
81 |
|
108 |
Net income |
|
66 |
|
81 |
Net income margin |
|
7.2% |
|
8.4% |
Adjusted EBITDA* |
|
151 |
|
168 |
Adjusted EBITDA margin* |
|
16.5% |
|
17.3% |
Net cash provided by operating activities |
|
84 |
|
92 |
Adjusted free cash flow* |
|
68 |
|
88 |
“Garrett delivered a solid first quarter of $915
million of net sales, a 16.5% adjusted EBITDA margin and $68
million of adjusted free cash flow. These results once again
demonstrate our ability to generate operational efficiency by
leveraging our flexible cost structure,” said Garrett President and
CEO, Olivier Rabiller. “This robust execution allowed us to again
return value to shareholders and execute on our capital allocation
priorities. In the quarter we repurchased $109 million of common
stock and on April 10th, we made an early debt repayment of $100
million.”
“Our differentiated technologies continue to
build momentum in both turbo and zero emission applications. This
quarter, we continued to see increased customer interest for larger
turbos which resulted in two new series production awards in power
generation. Our high speed, best in class traction motor is
currently undergoing vehicle testing with a leading global OEM and
we also added two new series production awards for our high-speed
fuel cell compressor applications. This progress highlights
Garrett's ability to provide innovative and differentiated
solutions to address our customers' unmet needs.”
Results of Operations
Net sales for the first quarter
of 2024 were $915 million, representing a decrease of 6%
(including an unfavorable impact of $8 million or 1% due to foreign
currency translation) compared with $970 million in the first
quarter of 2023. This decrease was mainly driven by demand softness
in gasoline, diesel and commercial vehicles as compared to the
first quarter of 2023. Net sales further declined due to pricing
decreases, net of inflation pass-through, driven by commodity
deflation. This decrease was partially offset by favorable demand
for aftermarket replacement parts in North America, China and
Brazil.
Cost of goods sold for the
first quarter of 2024 decreased to $743 million from $781 million
in the first quarter of 2023, primarily driven by $29 million of
lower sales volumes, $17 million of commodity, transportation and
energy deflation and $10 million of productivity net of labor
inflation and repositioning costs. These decreases were partially
offset by $16 million from unfavorable product mix and $2 million
of higher research and development ("R&D") costs, reflecting
Garrett's continued investment in new technologies.
Gross profit totaled $172
million for the first quarter of 2024 as compared to $189 million
in the first quarter of 2023, with a gross profit percentage for
the first quarter of 2024 of 18.9% as compared to 19.5% in the
first quarter of 2023. The decrease in gross profit was primarily
driven by $16 million from lower pricing net of inflation recovery,
$12 million from lower sales and $11 million from unfavorable
product mix. Gross profit further decreased by $8 million due to
foreign currency impacts. These decreases were partially offset by
$17 million of commodity, transportation and energy deflation and
$15 million of higher productivity net of labor inflation and
repositioning costs.
Selling, general and
administrative (“SG&A”) expenses for the first quarter
of 2024 increased to $64 million from $56 million in the first
quarter of 2023. The increase compared with the prior year was
mainly driven by $4 million of higher stock-based compensation
expense. SG&A expenses also increased due to $2 million of
additional professional services costs, $1 million of labor
inflation impact and $1 million of unfavorable foreign exchange
impacts.
Interest expense in the first
quarter of 2024 was $31 million as compared to $27 million in the
first quarter of 2023. The increase was primarily driven by $18
million of higher interest expense from our $700 million term loan
B (the "2023 Dollar Term Facility") and increased market interest
rates, partially offset by $6 million of higher gains on interest
derivatives in the current year and $7 million from marked-to
market remeasurement losses in the prior year on our interest rate
swap contracts.
Non-operating income for the
first quarter of 2024 was $5 million as compared to $3 million in
the first quarter of 2023, with the increase primarily driven by
foreign exchange transactional gains.
Tax expense for the first
quarter of 2024 was $15 million as compared to $27 million in the
first quarter of 2023, mainly driven by the reversal of tax
reserves and lower U.S. taxes on international operations,
partially offset by increased withholding taxes.
Net income for the first
quarter of 2024 was $66 million as compared to $81 million in the
first quarter of 2023 primarily due to $17 million of lower gross
profit, $8 million of higher SG&A expenses and $4 million of
higher interest expense, partially offset by $12 million of lower
tax expense, as discussed above.
Net cash provided by operating
activities totaled $84 million in the first quarter of
2024 as compared to $92 million in the first quarter of 2023,
primarily due to a decrease of $31 million in net income excluding
non-cash charges, and $11 million from changes in other assets and
liabilities, partially offset by an increase of $35 million from
changes in working capital (net of factoring).
Non-GAAP Financial Measures
Adjusted EBITDA decreased to
$151 million in the first quarter of 2024 as compared to $168
million in the first quarter of 2023. The decrease was mainly due
to demand softness across gasoline, diesel and commercial vehicles,
unfavorable mix, lower pricing net of inflation pass-through and
unfavorable foreign exchange impacts. These decreases were
partially offset by strong operational performance through
productivity, net of labor inflation and repositioning costs, and
commodity, transportation and energy deflation.
Adjusted free cash flow, which
excludes capital structure transformation expenses, cash paid for
repositioning and factoring costs, was $68 million in the first
quarter of 2024 as compared to $88 million in the first quarter of
2023. The decrease was primarily driven by $24 million of
additional capital expenditures compared to prior year, $17 million
of lower Adjusted EBITDA and $17 million of higher cash paid for
interest. These decreases were partially offset by $35 million of
lower working capital usage (net of factoring) versus prior
year.
Liquidity and Capital
Resources
As of March 31, 2024, Garrett had $766 million
in available liquidity, including $196 million in cash and cash
equivalents and $570 million of undrawn commitments under its
revolving credit facility. As of December 31, 2023, Garrett had
$829 million in available liquidity, including $259 million in cash
and cash equivalents and $570 million of undrawn commitments under
its revolving credit facility.
As of March 31, 2024, total principal amount of
debt outstanding amounted to $1,683 million, down from $1,696
million as of December 31, 2023, due to repayments made on the 2021
Dollar Term Facility and foreign exchange impact.
During the first quarter of 2024, we repurchased
$109 million of common stock under our authorized share repurchase
program.
Full Year 2024 Outlook
Garrett is reiterating its outlook for the full
year 2024 for certain GAAP and Non-GAAP financial measures.
|
Full Year 2024 Outlook |
Net sales (GAAP) |
$3.80 billion to $3.95 billion |
Net sales growth at constant currency (Non-GAAP)* |
-2% to +2% |
Net income (GAAP) |
$230 million to $275 million |
Adjusted EBITDA (Non-GAAP)* |
$590 million to $650 million |
Net cash provided by operating activities (GAAP) |
$370 million to $470 million |
Adjusted free cash flow (Non-GAAP)* |
$325 million to $425 million |
* See reconciliations to the nearest GAAP
measures on pages 5-12
Garrett’s full year 2024 outlook, as of April
25, 2024, includes the following expectations:
- 2024 light vehicle industry
production flat to down 1% from 2023;
- 2024 commercial vehicle industry,
including both on- and off-highway, up 2% from 2023;
- 2024 average light vehicle battery
electric vehicle penetration of 15%;
- 2024 Euro/dollar assumption of 1.08
EUR to 1.00 USD;
- R&D investment ~4.5% of sales
in 2024, with approximately 60% on zero emission technologies;
- Capital expenditures ~2.2% of
sales, with greater than 30% on zero emission technologies.
Conference Call
Garrett plans to issue financial results for the
first quarter 2024 on Thursday, April 25, 2024 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 1134891.
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
http://investors.garrettmotion.com/. 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 1183241. The
webcast will also be archived on Garrett’s website.
Forward-Looking Statements
This release contains “forward-looking
statements” within the Private Securities 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, anticipated developments in emissions standards,
trends including with respect to production volatility and volume,
Garrett's capital structure including our share repurchase program,
new product development including zero emissions technologies and
capital deployment plans for the future including expected R&D
expenditures, anticipated impacts of partnerships with third
parties, and Garrett's outlook for 2024. 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, 2023, as well as our other filings with
the Securities and Exchange Commission, under the headings “Risk
Factors” and “Cautionary Note Regarding Forward-Looking
Statements.” 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,
Adjusted EBITDA margin, 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 presentation and our annual
report on Form 10-K for the year ended December 31, 2023.
About Garrett Motion Inc.
Garrett Motion is a differentiated technology
leader, serving automotive customers worldwide for more than 70
years. Known for its global leadership in turbocharging, the
company develops transformative technologies for vehicles to become
cleaner and more efficient. Its advanced technologies help reduce
emissions and reach zero emissions via passenger and commercial
vehicle applications – for on and off-highway use. Its portfolio
includes turbochargers, electric turbos (E-Turbo) and electric
compressors (E-Compressor) for both ICE and hybrid powertrains. In
the zero emissions vehicle category, it offers fuel cell
compressors for hydrogen fuel cell vehicles (FCEVs) as well as
electric propulsion and thermal management systems for battery
electric vehicles (BEVs). It boasts five R&D centers, 13
manufacturing sites and a team of 9,300 located in more than 20
countries. Its mission is to further advance motion through unique,
differentiated innovations. More information at
www.garrettmotion.com.
Contacts: |
|
|
MEDIA |
|
INVESTOR RELATIONS |
Maria Eugenia Santiago Echandi |
|
Eric Birge |
1.734.386.6593 |
|
1.734.392.5504 |
Maria.SantiagoEchandi@garrettmotion.com |
|
Eric.Birge@garrettmotion.com |
CONSOLIDATED INTERIM STATEMENTS OF
OPERATIONS
|
For the Three Months EndedMarch
31, |
|
2024 |
|
2023 |
|
(Dollars in millions, except per
shareamounts) |
Net sales |
$ |
915 |
|
|
$ |
970 |
|
Cost of goods sold |
|
743 |
|
|
|
781 |
|
Gross profit |
|
172 |
|
|
|
189 |
|
Selling, general and administrative expenses |
|
64 |
|
|
|
56 |
|
Other expense, net |
|
1 |
|
|
|
1 |
|
Interest expense |
|
31 |
|
|
|
27 |
|
Non-operating income |
|
(5 |
) |
|
|
(3 |
) |
Income before taxes |
|
81 |
|
|
|
108 |
|
Tax expense |
|
15 |
|
|
|
27 |
|
Net income |
|
66 |
|
|
|
81 |
|
Less: preferred stock dividends |
|
— |
|
|
|
(40 |
) |
Net income available for distribution |
$ |
66 |
|
|
$ |
41 |
|
|
|
|
|
Earnings per common share |
|
|
|
Basic |
$ |
0.28 |
|
|
$ |
0.13 |
|
Diluted |
|
0.28 |
|
|
|
0.13 |
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
Basic |
|
236,664,129 |
|
|
|
64,896,081 |
|
Diluted |
|
238,991,886 |
|
|
|
65,970,723 |
|
CONSOLIDATED INTERIM STATEMENTS OF
COMPREHENSIVE INCOME
|
Three Months EndedMarch 31, |
|
2024 |
|
2023 |
|
(Dollars in millions) |
Net income |
$ |
66 |
|
$ |
81 |
|
Foreign exchange translation adjustment |
|
18 |
|
|
2 |
|
Defined
benefit pension plan adjustment, net of tax |
|
1 |
|
|
— |
|
Changes
in fair value of effective cash flow hedges, net of tax |
|
3 |
|
|
(3 |
) |
Changes
in fair value of net investment hedges, net of tax |
|
19 |
|
|
(5 |
) |
Total
other comprehensive income (loss), net of tax |
|
41 |
|
|
(6 |
) |
Comprehensive income |
$ |
107 |
|
$ |
75 |
|
CONSOLIDATED INTERIM BALANCE
SHEETS
|
March 31,2024 |
|
December 31,2023 |
|
(Dollars in millions) |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
196 |
|
|
$ |
259 |
|
Restricted cash |
|
1 |
|
|
|
1 |
|
Accounts, notes and other receivables – net |
|
787 |
|
|
|
808 |
|
Inventories – net |
|
272 |
|
|
|
263 |
|
Other current assets |
|
82 |
|
|
|
75 |
|
Total current assets |
|
1,338 |
|
|
|
1,406 |
|
Investments and long-term receivables |
|
30 |
|
|
|
29 |
|
Property, plant and equipment – net |
|
452 |
|
|
|
477 |
|
Goodwill |
|
193 |
|
|
|
193 |
|
Deferred income taxes |
|
213 |
|
|
|
216 |
|
Other assets |
|
222 |
|
|
|
206 |
|
Total assets |
$ |
2,448 |
|
|
$ |
2,527 |
|
LIABILITIES |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
1,029 |
|
|
$ |
1,074 |
|
Current maturities of long-term debt |
|
7 |
|
|
|
7 |
|
Accrued liabilities |
|
283 |
|
|
|
293 |
|
Total current liabilities |
|
1,319 |
|
|
|
1,374 |
|
Long-term debt |
|
1,633 |
|
|
|
1,643 |
|
Deferred income taxes |
|
30 |
|
|
|
27 |
|
Other liabilities |
|
201 |
|
|
|
218 |
|
Total liabilities |
$ |
3,183 |
|
|
$ |
3,262 |
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
EQUITY (DEFICIT) |
|
|
|
Common Stock, par value $0.001; 1,000,000,000 and 1,000,000,000
shares authorized, 240,071,246 and 238,543,624 issued and
227,401,889 and 238,249,056 outstanding as of March 31, 2024
and December 31, 2023, respectively |
|
— |
|
|
|
— |
|
Additional paid – in capital |
|
1,198 |
|
|
|
1,190 |
|
Retained deficit |
|
(1,856 |
) |
|
|
(1,922 |
) |
Accumulated other comprehensive income (loss) |
|
38 |
|
|
|
(3 |
) |
Treasury Stock, at cost; 12,669,357 and 0 shares as of
March 31, 2024 and December 31, 2023, respectively |
|
(115 |
) |
|
|
— |
|
Total deficit |
|
(735 |
) |
|
|
(735 |
) |
Total liabilities and deficit |
$ |
2,448 |
|
|
$ |
2,527 |
|
CONSOLIDATED INTERIM STATEMENTS OF CASH
FLOWS
|
Three Months EndedMarch 31, |
|
2024 |
|
2023 |
|
(Dollars in millions) |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
66 |
|
|
$ |
81 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Deferred income taxes |
|
5 |
|
|
|
3 |
|
Depreciation |
|
22 |
|
|
|
21 |
|
Amortization of deferred issuance costs |
|
3 |
|
|
|
2 |
|
Foreign exchange loss (gain) |
|
7 |
|
|
|
(2 |
) |
Stock compensation expense |
|
8 |
|
|
|
3 |
|
Unrealized (gain) loss on derivatives |
|
(17 |
) |
|
|
10 |
|
Other |
|
5 |
|
|
|
12 |
|
Changes in assets and liabilities: |
|
|
|
Accounts, notes and other receivables |
|
6 |
|
|
|
(77 |
) |
Inventories |
|
(17 |
) |
|
|
(30 |
) |
Other assets |
|
(4 |
) |
|
|
(18 |
) |
Accounts payable |
|
— |
|
|
|
62 |
|
Accrued liabilities |
|
4 |
|
|
|
20 |
|
Other liabilities |
|
(4 |
) |
|
|
5 |
|
Net cash provided by operating activities |
$ |
84 |
|
|
$ |
92 |
|
Cash flows from investing activities: |
|
|
|
Expenditures for property, plant and equipment |
|
(32 |
) |
|
|
(8 |
) |
Proceeds from cross-currency swap contracts |
|
4 |
|
|
|
— |
|
Net cash used for investing activities |
$ |
(28 |
) |
|
$ |
(8 |
) |
Cash flows from financing activities: |
|
|
|
Payments of long-term debt |
|
(2 |
) |
|
|
(2 |
) |
Repurchases of Common Stock |
|
(107 |
) |
|
|
— |
|
Payments for preference dividends |
|
— |
|
|
|
(42 |
) |
Other |
|
(3 |
) |
|
|
— |
|
Net cash used for financing activities |
$ |
(112 |
) |
|
$ |
(44 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents
and restricted cash |
|
(7 |
) |
|
|
4 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
(63 |
) |
|
|
44 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
260 |
|
|
|
248 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
197 |
|
|
$ |
292 |
|
Supplemental cash flow disclosure: |
|
|
|
Income taxes paid (net of refunds) |
|
10 |
|
|
|
19 |
|
Interest paid |
|
27 |
|
|
|
10 |
|
Reconciliation of Net Income to Adjusted
EBITDA(1)
|
Three Months EndedMarch 31, |
|
2024 |
|
2023 |
|
(Dollars in millions) |
Net income |
$ |
66 |
|
|
$ |
81 |
|
Interest expense, net of interest income (2) |
|
29 |
|
|
|
27 |
|
Tax expense |
|
15 |
|
|
|
27 |
|
Depreciation |
|
22 |
|
|
|
21 |
|
EBITDA |
|
132 |
|
|
|
156 |
|
Stock compensation expense (3) |
|
8 |
|
|
|
3 |
|
Repositioning costs |
|
11 |
|
|
|
7 |
|
Discounting costs on factoring |
|
1 |
|
|
|
1 |
|
Other non-operating income (4) |
|
(1 |
) |
|
|
(1 |
) |
Capital structure transformation expenses (5) |
|
— |
|
|
|
2 |
|
Adjusted EBITDA |
$ |
151 |
|
|
$ |
168 |
|
|
|
|
|
Net sales |
$ |
915 |
|
|
$ |
970 |
|
|
|
|
|
Net income margin |
|
7.2 |
% |
|
|
8.4 |
% |
Adjusted EBITDA margin (6) |
|
16.5 |
% |
|
|
17.3 |
% |
(1) We evaluate performance on the basis of
EBITDA and Adjusted EBITDA. We define “EBITDA” as our net income
calculated in accordance with U.S. GAAP, plus the sum of interest
expense net of interest income, tax expense and depreciation. We
define “Adjusted EBITDA” as EBITDA, plus the sum of stock
compensation expense, repositioning costs, discounting costs on
factoring, other non-operating income, capital structure
transformation expenses, net reorganization items and loss on
extinguishment of debt (if any). We believe that EBITDA and
Adjusted EBITDA are important indicators of operating performance
and provide useful information for investors because:
- EBITDA and Adjusted
EBITDA exclude the effects of income taxes, as well as the effects
of financing and investing activities by eliminating the effects of
interest-related charges and depreciation expenses and therefore
more closely measure our operational performance; and
- certain adjustment
items, while periodically affecting our results, may vary
significantly from period to period and have disproportionate
effect in a given period, which affects the comparability of our
results.
In addition, our management may use Adjusted
EBITDA in setting performance incentive targets to align
performance measurement with operational performance.
(2) Reflects interest income of $2 million and
$0 million for the three months ended March 31, 2024 and 2023,
respectively.(3) Stock compensation expense includes only non-cash
expenses.(4) Reflects the non-service component of net periodic
pension income.(5) Reflects the third-party incremental costs that
were directly attributable to the transformation of the Company's
capital structure through the partial repurchase and subsequent
conversion of the remaining outstanding Series A Preferred Stock
into a single class of common stock in June 2023.(6) Adjusted
EBITDA margin represents Adjusted EBITDA as a percentage of net
sales.
Reconciliation of Constant Currency
Sales % Change(1)
|
Three Months EndedMarch 31, |
|
2024 |
|
2023 |
Garrett |
|
|
|
Reported sales % change |
(6) |
% |
|
8 |
% |
Less: Foreign currency translation |
(1) |
% |
|
(5) |
% |
Constant currency sales % change |
(5) |
% |
|
13 |
% |
|
|
|
|
Gasoline |
|
|
|
Reported sales % change |
(4) |
% |
|
11 |
% |
Less: Foreign currency translation |
(2) |
% |
|
(6) |
% |
Constant currency sales % change |
(2) |
% |
|
17 |
% |
|
|
|
|
Diesel |
|
|
|
Reported sales % change |
(8) |
% |
|
3 |
% |
Less: Foreign currency translation |
0 |
% |
|
(5) |
% |
Constant currency sales % change |
(8) |
% |
|
8 |
% |
|
|
|
|
Commercial vehicles |
|
|
|
Reported sales % change |
(12) |
% |
|
10 |
% |
Less: Foreign currency translation |
(1) |
% |
|
(5) |
% |
Constant currency sales % change |
(11) |
% |
|
15 |
% |
|
|
|
|
Aftermarket |
|
|
|
Reported sales % change |
2 |
% |
|
5 |
% |
Less: Foreign currency translation |
0 |
% |
|
(3) |
% |
Constant currency sales % change |
2 |
% |
|
8 |
% |
|
|
|
|
Other Sales |
|
|
|
Reported sales % change |
8 |
% |
|
(8) |
% |
Less: Foreign currency translation |
(1) |
% |
|
(5) |
% |
Constant currency sales % change |
9 |
% |
|
(3) |
% |
(1) We define constant currency sales growth as
the year-over-year change in reported sales relative to the
comparable period, excluding the impact on sales from foreign
currency translation. We believe this measure is useful to
investors and management in understanding our ongoing operations
and in analysis of ongoing operating trends.
Reconciliation of Cash Flow from
Operations to Adjusted Free Cash
Flow(1)
|
Three Months EndedMarch 31, |
|
2024 |
|
2023 |
|
(Dollars in millions) |
Net cash provided by operating activities |
$ |
84 |
|
|
$ |
92 |
|
Expenditures for property, plant and equipment |
|
(32 |
) |
|
|
(8 |
) |
Net cash provided by operating activities less expenditures for
property, plant and equipment |
|
52 |
|
|
|
84 |
|
Capital structure transformation expenses |
|
1 |
|
|
|
1 |
|
Cash payments for repositioning |
|
9 |
|
|
|
2 |
|
Proceeds from cross currency swap contracts |
|
4 |
|
|
|
— |
|
Factoring and P-notes |
|
2 |
|
|
|
1 |
|
Adjusted free cash flow (1) |
$ |
68 |
|
|
$ |
88 |
|
(1) Adjusted free cash flow reflects an
additional way of viewing liquidity that management believes is
useful to investors in analyzing the Company’s ability to service
and repay its debt. The Company defines adjusted free cash flow as
cash flow provided from operating activities less capital
expenditures and additionally adjusted for other discretionary
items including cash flow impacts for capital structure
transformation expenses, factoring and guaranteed bank notes
activity.
Full Year 2024 Outlook Reconciliation of
Reported Net Sales to Net Sales Growth at Constant
Currency
|
|
2024 Full Year |
|
|
Low End |
|
High End |
Reported net sales (% change) |
|
(2) |
% |
|
2 |
% |
Foreign currency translation |
|
— |
% |
|
— |
% |
Full year 2024 Outlook Net sales growth at constant currency |
|
(2) |
% |
|
2 |
% |
Full Year 2024 Outlook Reconciliation of
Net Income to Adjusted EBITDA
|
|
2024 Full Year |
|
|
Low End |
|
High End |
|
|
(Dollars in millions) |
Net income |
|
$ |
230 |
|
$ |
275 |
Interest expense, net of interest income * |
|
|
146 |
|
|
146 |
Tax expense |
|
|
78 |
|
|
93 |
Depreciation |
|
|
92 |
|
|
92 |
Full year 2024 Outlook EBITDA |
|
|
546 |
|
|
606 |
Stock compensation expense |
|
|
18 |
|
|
18 |
Repositioning costs |
|
|
26 |
|
|
26 |
Full Year 2024 Outlook Adjusted EBITDA |
|
$ |
590 |
|
$ |
650 |
* Excludes the effects of marked-to-market
fluctuations from our interest rate swap contracts
Full Year 2024 Outlook Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow
|
|
2024 Full Year |
|
|
Low End |
|
High End |
|
|
(Dollars in millions) |
Net cash provided by operating activities |
|
$ |
370 |
|
|
$ |
470 |
|
Expenditures for property, plant and equipment |
|
|
(87 |
) |
|
|
(87 |
) |
Net cash provided by operating activities less expenditures for
property, plant and equipment |
|
|
283 |
|
|
|
383 |
|
Cash payments for repositioning |
|
|
26 |
|
|
|
26 |
|
Proceeds from cross currency swap contracts |
|
|
15 |
|
|
|
15 |
|
Capital structure transformation costs |
|
|
1 |
|
|
|
1 |
|
Full Year 2024 Outlook Adjusted free cash flow |
|
$ |
325 |
|
|
$ |
425 |
|
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