Fourth Quarter Highlights

  • Net sales of $164.3 million
    • $11.6 million decrease from fourth quarter of 2020
  • Gross profit of $16.0 million
    • $16.9 million decrease from fourth quarter of 2020
  • Gross profit margin(4) decreased to 9.7% from 18.7% in the fourth quarter of 2020
  • Net loss from continuing operations of $16.2 million
    • $10.3 million deterioration from fourth quarter of 2020
  • Adjusted EBITDA(1) of $(8.0) million
    • $15.3 million decrease from fourth quarter of 2020

Full Year Highlights

  • Net sales of $782.1 million
    • $120.9 million increase compared to prior year
  • Gross profit of $142.6 million
    • $22.0 million increase compared to prior year
  • Gross profit margin(4) remained constant at 18.2% compared to prior year
  • Net loss from continuing operations of $33.1 million
    • $4.4 million increase compared to prior year
  • Adjusted EBITDA(1) of $35.7 million
    • $9.3 million increase compared to prior year

Horizon Global Corporation (NYSE: HZN), one of the leading manufacturers of branded towing and trailering equipment, today reported fourth quarter and full year financial results for 2021.

“Our Q4 and full year 2021 financial performance is consistent with the preliminary results communicated in mid-February,” stated Terry Gohl, Horizon Global’s President and Chief Executive Officer. “Our net sales during Q4 2021 were significantly impacted by macroeconomic headwinds, including supply chain, logistics and material constraints, which resulted in approximately $31.0 million of delayed sales as we exited the quarter. In addition, increased steel and freight costs, up approximately 145% and 209%, respectively, in the Americas, and operational inefficiencies relating to last minute OEM production changes drove lower gross profit and Adjusted EBITDA levels.”

Gohl continued, “While our pricing actions to recover material economics are largely complete, implementation of pricing generally lags one to two quarters and, as a result, will be recognized in 2022. The previously mentioned macroeconomic headwinds, coupled with a strategic build of high-volume SKUs ahead of the 2022 selling season, drove a substantial increase in inventories at year-end. Inventories are expected to return to more normalized levels as we reduce purchases in 2022 and, importantly, deliver against both our Americas year-end open order book of $57.1 million and expected demand during the 2022 selling season.”

2021 Fourth Quarter Segment Results

Horizon Americas. Net sales increased $5.6 million, or 5.8%, to $102.4 million when compared to the fourth quarter of 2020. The net sales increase was primarily driven by a $6.0 million combined increase in the retail and industrial sales channels. Gross profit decreased $6.7 million, driven by unfavorable cost performance, primarily attributable to unfavorable material, supply chain and other manufacturing input costs, partially offset by related customer price increases, associated with global macroeconomic factors. Adjusted EBITDA(1) decreased to $3.5 million for the quarter, as compared to $10.9 million for the fourth quarter of 2020, driven primarily by the unfavorable gross profit.

Horizon Europe-Africa. Net sales decreased $17.2 million, or 21.7%, to $61.9 million when compared to the fourth quarter of 2020. The net sales decrease was primarily driven by a $12.5 million decrease in the automotive OEM sales channel, as well as a $5.5 million combined decrease in the automotive OES and aftermarket sales channels. Gross profit decreased $10.2 million, due to lower net sales, coupled with unfavorable material, supply chain and other manufacturing input costs associated with global macroeconomic factors, which were not able to be fully recovered via commercial pricing recoveries. Adjusted EBITDA(1) declined to $(7.0) million for the quarter, as compared to $2.5 million for the fourth quarter of 2020, driven by the unfavorable gross profit.

Balance Sheet and Liquidity. Cash and Availability(2) was $39.2 million, a reduction of $44.2 million compared to December 31, 2020. Working Capital(3) was $108.8 million, an increase of $53.2 million compared to December 31, 2020, primarily driven by increased inventory levels. The increased inventory was attributable to global macroeconomic factors, including increased commodity and logistics costs, and supply chain and material constraints. Gross debt increased $34.8 million to $300.9 million compared to December 31, 2020, primarily reflecting additional borrowings on the Company's ABL, due to additional working capital needs.

Summary

Gohl commented, “Horizon Global’s 2021 performance did not meet our expectations. This performance was driven by an extremely challenging back half of the year as supply chain, logistics and material constraints throttled our net sales levels and drove significantly higher input costs. These constraints will not disappear overnight, but we view them as relatively short-term and believe we are positioned to deliver strong financial results as 2022 progresses. Our inventory position will allow us to address our open order book and continued heightened demand. Expected lower steel costs and the implementation of a multi-port strategy should result in lower input costs during 2022. Further, commercial pricing recovery recognized throughout 2022 should further bolster gross profit levels."

Gohl closed, "I’d like to take this opportunity to thank the global team for their continued dedication throughout unprecedented circumstances. The foundation of our business is solid and we remain focused on creating long-term value for shareholders.”

Conference

Horizon Global will host a conference call regarding fourth quarter and full year 2021 earnings on Thursday, March 10, 2022 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 10155642.

The fourth quarter and full-year 2021 results and supplemental materials, including a presentation in PDF format, will be distributed before the market opens on March 10, 2022, 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 10155642. The telephone replay will be available approximately two hours after the end of the call and continue through March 24, 2022.

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 premium 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 3,800 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. Forward-looking statements speak only as of the date they are made and give our current expectations or forecasts of future events. 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, including, without limitation, supply chain and logistics issues and inflationary pressures; liabilities and restrictions imposed by the Company’s debt instruments, including the Company’s ability to comply with the applicable financial covenants related thereto; market demand; competitive factors; supply constraints and shipping disruptions; material, logistics and energy costs, including the increased material costs resulting from the COVID-19 pandemic; inflation and deflation rates; 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; factors affecting the Company’s business that are outside of its control, including the impact of the conflict between Russia and Ukraine, natural disasters, pandemics, including the current COVID-19 pandemic, accidents and governmental actions; and other risks that are discussed in Part I, Item 1A, “Risk Factors.” in the Company’s Annual Report on Form 10-K for the twelve months ended December 31, 2021. The risks described in the Company’s Annual Report on Form 10-K 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 U.S. 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. Adjusted EBITDA, as determined and measured by Horizon Global, should also not be compared to similarly titled measures reported by other companies.

(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".

(4)

“Gross Profit Margin” refers to “gross profit” as a percentage of “net sales”.

Horizon Global Corporation

Condensed Consolidated Balance Sheets

(Dollars in thousands)

 

 

 

December 31, 2021

 

December 31, 2020

 

 

(unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

11,780

 

 

$

44,970

 

Restricted cash

 

 

5,490

 

 

 

5,720

 

Receivables, net

 

 

80,720

 

 

 

87,420

 

Inventories

 

 

162,830

 

 

 

115,320

 

Prepaid expenses and other current assets

 

 

12,340

 

 

 

11,510

 

Total current assets

 

 

273,160

 

 

 

264,940

 

Property and equipment, net

 

 

71,610

 

 

 

74,090

 

Operating lease right-of-use assets

 

 

37,810

 

 

 

47,310

 

Goodwill

 

 

 

 

 

3,360

 

Other intangibles, net

 

 

48,910

 

 

 

58,230

 

Deferred income taxes

 

 

1,750

 

 

 

1,280

 

Other assets

 

 

5,680

 

 

 

7,280

 

Total assets

 

$

438,920

 

 

$

456,490

 

Liabilities and Shareholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

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

 

$

3,780

 

 

$

14,120

 

Accounts payable

 

 

102,190

 

 

 

99,520

 

Short-term operating lease liabilities

 

 

11,010

 

 

 

12,180

 

Accrued liabilities

 

 

44,870

 

 

 

59,100

 

Total current liabilities

 

 

161,850

 

 

 

184,920

 

Gross long-term debt

 

 

297,070

 

 

 

251,960

 

Unamortized debt issuance costs and discount

 

 

(26,520

)

 

 

(20,570

)

Long-term debt

 

 

270,550

 

 

 

231,390

 

Deferred income taxes

 

 

1,920

 

 

 

3,130

 

Long-term operating lease liabilities

 

 

35,930

 

 

 

46,340

 

Other long-term liabilities

 

 

8,920

 

 

 

14,560

 

Total liabilities

 

 

479,170

 

 

 

480,340

 

Total Horizon Global shareholders' deficit

 

 

(33,690

)

 

 

(18,690

)

Noncontrolling interest

 

 

(6,560

)

 

 

(5,160

)

Total shareholders' deficit

 

 

(40,250

)

 

 

(23,850

)

Total liabilities and shareholders' equity

 

$

438,920

 

 

$

456,490

 

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,

 

 

2021

 

2020

 

2021

 

2020

Net sales

 

$

164,270

 

 

$

175,860

 

 

$

782,120

 

 

$

661,230

 

Cost of sales

 

 

(148,300

)

 

 

(142,980

)

 

 

(639,540

)

 

 

(540,680

)

Gross profit

 

 

15,970

 

 

 

32,880

 

 

 

142,580

 

 

 

120,550

 

Selling, general and administrative expenses

 

 

(33,190

)

 

 

(33,700

)

 

 

(135,360

)

 

 

(127,460

)

Operating (loss) profit

 

 

(17,220

)

 

 

(820

)

 

 

7,220

 

 

 

(6,910

)

Interest expense

 

 

(6,970

)

 

 

(7,710

)

 

 

(27,970

)

 

 

(31,680

)

Loss on debt extinguishment of Replacement Term Loan

 

 

 

 

 

 

 

 

(11,650

)

 

 

 

Gain on debt extinguishment of Paycheck Protection Program Loan

 

 

7,530

 

 

 

 

 

 

7,530

 

 

 

 

Other (expense) income, net

 

 

(2,470

)

 

 

960

 

 

 

(8,410

)

 

 

(470

)

Loss from continuing operations before income tax

 

 

(19,130

)

 

 

(7,570

)

 

 

(33,280

)

 

 

(39,060

)

Income tax benefit

 

 

2,970

 

 

 

1,750

 

 

 

160

 

 

 

1,580

 

Net loss from continuing operations

 

 

(16,160

)

 

 

(5,820

)

 

 

(33,120

)

 

 

(37,480

)

Loss from discontinued operations, net of income tax

 

 

 

 

 

 

 

 

 

 

 

(500

)

Net loss

 

 

(16,160

)

 

 

(5,820

)

 

 

(33,120

)

 

 

(37,980

)

Less: Net loss attributable to noncontrolling interest

 

 

(430

)

 

 

(410

)

 

 

(1,400

)

 

 

(1,420

)

Net loss attributable to Horizon Global

 

$

(15,730

)

 

$

(5,410

)

 

$

(31,720

)

 

$

(36,560

)

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Horizon Global:

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.58

)

 

$

(0.21

)

 

$

(1.17

)

 

$

(1.40

)

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Total

 

$

(0.58

)

 

$

(0.21

)

 

$

(1.17

)

 

$

(1.42

)

Diluted:

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.58

)

 

$

(0.21

)

 

$

(1.17

)

 

$

(1.40

)

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Total

 

$

(0.58

)

 

$

(0.21

)

 

$

(1.17

)

 

$

(1.42

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

27,286,647

 

 

 

26,157,634

 

 

 

27,086,876

 

 

 

25,797,529

 

Diluted

 

 

27,286,647

 

 

 

26,157,634

 

 

 

27,086,876

 

 

 

25,797,529

 

Horizon Global Corporation

Consolidated Statements of Cash Flows (unaudited)

(Dollars in thousands)

 

 

 

Twelve Months Ended December 31,

 

 

2021

 

2020

Cash Flows from Operating Activities:

 

 

 

 

Net loss

 

$

(33,120

)

 

$

(37,980

)

Less: Net loss from discontinued operations

 

 

 

 

 

(500

)

Net loss from continuing operations

 

 

(33,120

)

 

 

(37,480

)

 

 

 

 

 

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

 

 

 

 

Depreciation

 

 

14,680

 

 

 

16,290

 

Amortization of intangible assets

 

 

7,320

 

 

 

6,620

 

Loss on debt extinguishment of Replacement Term Loan

 

 

11,650

 

 

 

 

Gain on debt extinguishment of Paycheck Protection Program Loan

 

 

(7,530

)

 

 

 

Amortization of original issuance discount and debt issuance costs

 

 

10,630

 

 

 

14,200

 

Deferred income taxes

 

 

(1,670

)

 

 

(2,060

)

Non-cash compensation expense

 

 

3,520

 

 

 

3,000

 

Paid-in-kind interest

 

 

650

 

 

 

8,120

 

Decrease (increase) in receivables

 

 

2,090

 

 

 

(12,230

)

(Increase) decrease in inventories

 

 

(52,300

)

 

 

24,220

 

Increase in prepaid expenses and other assets

 

 

(650

)

 

 

(4,900

)

(Decrease) increase in accounts payable and accrued liabilities

 

 

(5,170

)

 

 

24,590

 

Other, net

 

 

7,200

 

 

 

(1,280

)

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

 

 

(42,700

)

 

 

39,090

 

Cash Flows from Investing Activities:

 

 

 

 

Capital expenditures

 

 

(20,460

)

 

 

(13,310

)

Other, net

 

 

20

 

 

 

90

 

Net cash used for investing activities from continuing operations

 

 

(20,440

)

 

 

(13,220

)

Cash Flows from Financing Activities:

 

 

 

 

Proceeds from borrowing on credit facilities

 

 

3,090

 

 

 

7,220

 

Repayments of borrowings on credit facilities

 

 

(3,030

)

 

 

(4,800

)

Proceeds from Senior Term Loan, net of issuance costs

 

 

75,300

 

 

 

 

Repayments of borrowings on Replacement Term Loan, including transaction fees

 

 

(94,940

)

 

 

 

Proceeds from Revolving Credit Facility, net of issuance costs

 

 

45,820

 

 

 

54,680

 

Repayments of borrowings on Revolving Credit Facility

 

 

(12,000

)

 

 

(32,760

)

Proceeds from ABL revolving debt, net of issuance costs

 

 

 

 

 

8,000

 

Repayments of borrowings on ABL revolving debt

 

 

 

 

 

(27,920

)

Proceeds from Paycheck Protection Program Loan

 

 

 

 

 

8,670

 

Proceeds from issuance of common stock warrants

 

 

16,300

 

 

 

 

Proceeds from exercise of common stock warrants

 

 

420

 

 

 

 

Other, net

 

 

(650

)

 

 

(440

)

Net cash provided by financing activities from continuing operations

 

 

30,310

 

 

 

12,650

 

Discontinued Operations:

 

 

 

 

Net cash used for discontinued operations

 

 

 

 

 

(500

)

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

 

 

(590

)

 

 

900

 

Cash and Cash Equivalents and Restricted Cash:

 

 

 

 

(Decrease) increase for the year

 

 

(33,420

)

 

 

38,920

 

At beginning of year

 

 

50,690

 

 

 

11,770

 

At end of year

 

$

17,270

 

 

$

50,690

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest

 

$

19,620

 

 

$

8,930

 

Cash paid for taxes, net of refunds

 

$

2,550

 

 

$

1,560

 

Appendix I

Horizon Global Corporation

Company and Business Segment Financial Information

(Unaudited - dollars in thousands)

 

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. Adjusted EBITDA, 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 profit (loss) to measure stand-alone segment performance.

 

Adjusted EBITDA is defined as net income (loss) 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, gains (losses) on extinguishment of debt, 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, debt issuance costs, board transition support and non-cash unrealized foreign currency remeasurement costs.

 

The following table summarizes The following table summarizes Adjusted EBITDA for our operating segments for the three months ended December 31, 2021 and 2020:

 

 

Three months ended

December 31, 2021

 

Three months ended

December 31, 2020

 

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

 

 

 

 

 

 

 

$

(15,730

)

 

 

 

 

 

 

 

$

(5,410

)

 

$

(10,320

)

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(430

)

 

 

 

 

 

 

 

 

(410

)

 

 

(20

)

Net loss

 

 

 

 

 

 

 

$

(16,160

)

 

 

 

 

 

 

 

$

(5,820

)

 

$

(10,340

)

Interest expense

 

 

 

 

 

 

 

 

6,970

 

 

 

 

 

 

 

 

 

7,710

 

 

 

(740

)

Income tax benefit

 

 

 

 

 

 

 

 

(2,970

)

 

 

 

 

 

 

 

 

(1,750

)

 

 

(1,220

)

Depreciation and amortization

 

 

 

 

 

 

 

 

6,070

 

 

 

 

 

 

 

 

 

6,760

 

 

 

(690

)

EBITDA

 

$

2,810

 

$

(9,410

)

 

$

510

 

 

$

(6,090

)

 

$

9,870

 

$

3,460

 

 

$

(6,430

)

 

$

6,900

 

 

$

(12,990

)

Net loss attributable to noncontrolling interest

 

 

 

 

430

 

 

 

 

 

 

430

 

 

 

 

 

410

 

 

 

 

 

 

410

 

 

 

20

 

Severance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(210

)

 

 

30

 

 

 

(180

)

 

 

180

 

Restructuring, relocation and related business disruption costs

 

 

60

 

 

30

 

 

 

1,090

 

 

 

1,180

 

 

 

150

 

 

160

 

 

 

270

 

 

 

580

 

 

 

600

 

Non-cash stock compensation

 

 

 

 

 

 

 

930

 

 

 

930

 

 

 

 

 

 

 

 

810

 

 

 

810

 

 

 

120

 

Loss on business divestitures and other assets

 

 

430

 

 

1,310

 

 

 

180

 

 

 

1,920

 

 

 

460

 

 

 

 

 

 

 

 

460

 

 

 

1,460

 

Board transition support

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(170

)

 

 

(170

)

 

 

170

 

Debt issuance costs

 

 

 

 

50

 

 

 

50

 

 

 

100

 

 

 

 

 

60

 

 

 

30

 

 

 

90

 

 

 

10

 

Gain on extinguishment of debt

 

 

 

 

 

 

 

(7,530

)

 

 

(7,530

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,530

)

Unrealized foreign currency remeasurement costs

 

 

160

 

 

640

 

 

 

280

 

 

 

1,080

 

 

 

410

 

 

(1,410

)

 

 

(580

)

 

 

(1,580

)

 

 

2,660

 

Adjusted EBITDA

 

$

3,460

 

$

(6,950

)

 

$

(4,490

)

 

$

(7,980

)

 

$

10,890

 

$

2,470

 

 

$

(6,040

)

 

$

7,320

 

 

$

(15,300

)

The following table summarizes Adjusted EBITDA for our operating segments for the twelve months ended December 31, 2021 and 2020:

 

 

 

Twelve Months Ended

December 31, 2021

 

Twelve Months Ended

December 31, 2020

 

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

 

 

 

 

 

 

 

$

(31,720

)

 

 

 

 

 

 

 

$

(36,560

)

 

$

4,840

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

(1,400

)

 

 

 

 

 

 

 

 

(1,420

)

 

 

20

 

Net loss

 

 

 

 

 

 

 

$

(33,120

)

 

 

 

 

 

 

 

$

(37,980

)

 

$

4,860

 

Interest expense

 

 

 

 

 

 

 

 

27,970

 

 

 

 

 

 

 

 

 

31,680

 

 

 

(3,710

)

Income tax benefit

 

 

 

 

 

 

 

 

(160

)

 

 

 

 

 

 

 

 

(1,580

)

 

 

1,420

 

Depreciation and amortization

 

 

 

 

 

 

 

 

22,000

 

 

 

 

 

 

 

 

 

22,910

 

 

 

(910

)

EBITDA

 

$

46,040

 

 

$

1,450

 

$

(30,800

)

 

$

16,690

 

 

$

34,030

 

$

6,610

 

 

$

(25,610

)

 

$

15,030

 

 

$

1,660

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

1,400

 

 

 

 

 

1,400

 

 

 

 

 

1,420

 

 

 

 

 

 

1,420

 

 

 

(20

)

Loss from discontinued operations, net of income tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

500

 

 

 

(500

)

Severance

 

 

50

 

 

 

 

 

 

 

 

50

 

 

 

530

 

 

(360

)

 

 

20

 

 

 

190

 

 

 

(140

)

Restructuring, relocation and related business disruption costs

 

 

(720

)

 

 

80

 

 

1,060

 

 

 

420

 

 

 

1,700

 

 

170

 

 

 

740

 

 

 

2,610

 

 

 

(2,190

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

11,650

 

 

 

11,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,650

 

Non-cash stock compensation

 

 

 

 

 

 

 

3,520

 

 

 

3,520

 

 

 

 

 

 

 

 

3,000

 

 

 

3,000

 

 

 

520

 

Loss (gain) on business divestitures and other assets

 

 

3,450

 

 

 

1,310

 

 

190

 

 

 

4,950

 

 

 

1,480

 

 

(180

)

 

 

20

 

 

 

1,320

 

 

 

3,630

 

Board transition support

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(170

)

 

 

(170

)

 

 

170

 

Product liability and litigation claims

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,510

 

 

 

 

 

 

1,510

 

 

 

(1,510

)

Debt issuance costs

 

 

 

 

 

120

 

 

340

 

 

 

460

 

 

 

 

 

60

 

 

 

1,870

 

 

 

1,930

 

 

 

(1,470

)

Gain on extinguishment of debt

 

 

 

 

 

 

 

(7,530

)

 

 

(7,530

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,530

)

Unrealized foreign currency remeasurement costs

 

 

420

 

 

 

2,540

 

 

1,100

 

 

 

4,060

 

 

 

690

 

 

(550

)

 

 

(1,070

)

 

 

(930

)

 

 

4,990

 

Adjusted EBITDA

 

$

49,240

 

 

$

6,900

 

$

(20,470

)

 

$

35,670

 

 

$

38,430

 

$

8,680

 

 

$

(20,700

)

 

$

26,410

 

 

$

9,260

 

Segment Information

 

The following table summarizes financial information for our operating segments for the three months ended December 31, 2021 and 2020:

 

 

Three Months Ended December 31,

 

Change

 

 

2021

 

2020

 

$

 

%

 

 

(unaudited, dollars in thousands)

Net Sales

 

 

 

 

 

 

 

 

Horizon Americas

 

$

102,350

 

 

$

96,750

 

 

$

5,600

 

 

5.8

%

Horizon Europe-Africa

 

 

61,920

 

 

 

79,110

 

 

 

(17,190

)

 

(21.7

) %

Total

 

$

164,270

 

 

$

175,860

 

 

$

(11,590

)

 

(6.6

) %

Gross Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

18,460

 

 

$

25,130

 

 

$

(6,670

)

 

(26.5

) %

Horizon Europe-Africa

 

 

(2,490

)

 

 

7,750

 

 

 

(10,240

)

 

(132.1

) %

Total

 

$

15,970

 

 

$

32,880

 

 

$

(16,910

)

 

(51.4

) %

Operating Profit (Loss)

 

 

 

 

 

 

 

 

Horizon Americas

 

$

1,580

 

 

$

8,620

 

 

$

(7,040

)

 

(81.7

) %

Horizon Europe-Africa

 

 

(13,080

)

 

 

(2,350

)

 

 

(10,730

)

 

(456.6

) %

Corporate

 

 

(5,720

)

 

 

(7,090

)

 

 

1,370

 

 

19.3

%

Total

 

$

(17,220

)

 

$

(820

)

 

$

(16,400

)

 

(2,000.0

) %

Adjusted EBITDA

 

 

 

 

 

 

 

 

Horizon Americas

 

$

3,460

 

 

$

10,890

 

 

$

(7,430

)

 

(68.2

) %

Horizon Europe-Africa

 

 

(6,950

)

 

 

2,470

 

 

 

(9,420

)

 

(381.4

) %

Corporate

 

 

(4,490

)

 

 

(6,040

)

 

 

1,550

 

 

25.7

%

Total

 

$

(7,980

)

 

$

7,320

 

 

$

(15,300

)

 

(209.0

) %

The following table summarizes financial information for our operating segments for the twelve months ended December 31, 2021 and 2020:

 

 

Twelve Months Ended December 31,

 

Change

 

 

2021

 

2020

 

$

 

%

 

 

(unaudited, dollars in thousands)

Net Sales

 

 

 

 

 

 

 

 

Horizon Americas

 

$

456,410

 

 

$

382,380

 

 

$

74,030

 

 

19.4

%

Horizon Europe-Africa

 

 

325,710

 

 

 

278,850

 

 

 

46,860

 

 

16.8

%

Total

 

$

782,120

 

 

$

661,230

 

 

$

120,890

 

 

18.3

%

Gross Profit

 

 

 

 

 

 

 

 

Horizon Americas

 

$

112,120

 

 

$

95,850

 

 

$

16,270

 

 

17.0

%

Horizon Europe-Africa

 

 

30,460

 

 

 

24,700

 

 

 

5,760

 

 

23.3

%

Total

 

$

142,580

 

 

$

120,550

 

 

$

22,030

 

 

18.3

%

Operating Profit (Loss)

 

 

 

 

 

 

 

 

Horizon Americas

 

$

42,580

 

 

$

27,950

 

 

$

14,630

 

 

52.3

%

Horizon Europe-Africa

 

 

(10,530

)

 

 

(8,390

)

 

 

(2,140

)

 

(25.5

) %

Corporate

 

 

(24,830

)

 

 

(26,470

)

 

 

1,640

 

 

6.2

%

Total

 

$

7,220

 

 

$

(6,910

)

 

$

14,130

 

 

204.5

%

Adjusted EBITDA

 

 

 

 

 

 

 

 

Horizon Americas

 

$

49,240

 

 

$

38,430

 

 

$

10,810

 

 

28.1

%

Horizon Europe-Africa

 

 

6,900

 

 

 

8,680

 

 

 

(1,780

)

 

(20.5

) %

Corporate

 

 

(20,470

)

 

 

(20,700

)

 

 

230

 

 

1.1

%

Total

 

$

35,670

 

 

$

26,410

 

 

$

9,260

 

 

35.1

%

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 U.S. 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, 2021

 

Twelve Months Ended

December 31, 2021

 

 

Horizon Americas

 

Horizon Europe- Africa

 

Consolidated

 

Horizon Americas

 

Horizon Europe- Africa

 

Consolidated

Revenue growth as reported

 

5.8

%

 

(21.7

) %

 

(6.6

) %

 

19.4

%

 

16.8

%

 

18.3

%

Less: currency impact

 

%

 

(0.8

) %

 

(0.4

) %

 

(0.1

) %

 

5.5

%

 

2.3

%

Revenue growth at constant currency

 

5.8

%

 

(20.9

) %

 

(6.2

) %

 

19.5

%

 

11.3

%

 

16.0

%

 

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

Horizon Global (NYSE:HZN)
Historical Stock Chart
Von Feb 2024 bis Mär 2024 Click Here for more Horizon Global Charts.
Horizon Global (NYSE:HZN)
Historical Stock Chart
Von Mär 2023 bis Mär 2024 Click Here for more Horizon Global Charts.