VALLEY CITY, Ohio–(BUSINESS WIRE)–Shiloh Industries, Inc. (NASDAQ: SHLO), a leading global supplier
of lightweighting, noise, and vibration solutions to the automotive,
commercial vehicle and other industrial markets, today reported
financial results for its fiscal 2019 second-quarter ended April 30,
2019.
Second Quarter 2019 Highlights:
- Revenues were $273.4 million.
- Gross profit was $28.7 million with a gross margin of 10.5%.
- Net income was $1.1 million or 5 cents per diluted share.
-
Adjusted earnings per diluted share was 24 cents, consistent with the
second quarter of 2018. - Adjusted EBITDA was $23.3 million, an increase of 14.8% year-over-year.
-
Adjusted EBITDA margin was 8.5%, an expansion of 170 basis points
year-over-year.
“We made significant progress increasing our profitability as we
continue to execute exciting new launches of products containing our
innovative and leading technology,” said Ramzi Hermiz, president and
chief executive officer. “These launches provide Shiloh with recurring
revenue streams and strengthen our product mix. We are also excited
about our new business awards of approximately $300 million won in the
first half of our fiscal year and remain optimistic despite market
uncertainties. We expect our preemptive actions and restructuring
initiatives will continue to mitigate market softness and contribute to
our profitability. As we look toward the second half, we expect to
deliver full year guidance and are raising the mid-point of our adjusted
EBITDA range.”
2019 Outlook
Shiloh is maintaining its previously announced 2019 guidance for revenue
to range from $1,000 million to $1,150 million and tightening the range
of adjusted EBITDA to $65 million to $70 million from $62 million to $70
million.
Shiloh to Host Conference Call Today at 8:00
A.M. ET
Shiloh will host a conference call on Monday, June 10, 2019 at 8:00 A.M.
Eastern Time to discuss Shiloh’s second quarter fiscal 2019 financial
results. The conference call can be accessed by dialing 1-877-407-0784,
or for international callers, 1-201-689-8560. Please dial-in
approximately five minutes in advance and request the Shiloh Industries
second quarter fiscal 2019 results conference call. A replay will be
available after the call and can be accessed by dialing 1-844-512-2921,
or for international callers, 1-412-317-6671. The passcode for the
replay is 13688285. The replay will be available until July 1, 2019.
Interested investors and other parties may also listen to a simultaneous
webcast of the conference call by logging onto the Investor Relations
section of Shiloh’s website at www.shiloh.com.
Investor Contact:
For inquiries, please contact our Investor Relations department at:
1-330-558-2601 or at [email protected].
About Shiloh Industries, Inc.
Shiloh Industries, Inc. (NASDAQ: SHLO) is a global innovative solutions
provider focusing on lightweighting technologies that provide
environmental and safety benefits to the mobility market. Shiloh designs
and manufactures products within body structure, chassis and propulsion
systems. Shiloh’s multi-component, multi-material solutions are
comprised of a variety of alloys in aluminum, magnesium and steel
grades, along with its proprietary line of noise and vibration reducing
ShilohCore® acoustic laminate products. The strategic BlankLight®,
CastLight® and StampLight® brands combine to maximize lightweighting
solutions without compromising safety or performance. Shiloh has
approximately 4,000 dedicated employees with operations, sales and
technical centers throughout Asia, Europe and North America.
Forward-Looking Statements
Certain statements made by Shiloh in this press release regarding our
operating performance, events or developments that we believe or expect
to occur in the future, including those that discuss strategies, goals,
outlook or other non-historical matters, or which relate to future
sales, earnings expectations, cost savings, awarded sales, volume
growth, earnings or general belief in our expectations of future
operating results are “forward-looking” statements within the meaning of
the Private Securities Litigation Reform Act of 1995. The
forward-looking statements are made on the basis of management’s
assumptions and expectations. As a result, there can be no guarantee or
assurance that these assumptions and expectations will in fact occur.
The forward-looking statements are subject to risks and uncertainties
that may cause actual results to materially differ from those contained
in the statements due to a variety of factors, including (1) our ability
to accomplish our strategic objectives; (2) our ability to obtain future
sales; (3) changes in worldwide economic and political conditions,
including adverse effects from terrorism or related hostilities; (4)
costs related to legal and administrative matters; (5) our ability to
realize cost savings expected to offset price concessions; (6) our
ability to successfully integrate acquired businesses, including
businesses located outside of the United States; (7) risks associated
with doing business internationally, including economic, political and
social instability, foreign currency exposure and the lack of acceptance
of our products; (8) inefficiencies related to production and product
launches that are greater than anticipated; (9) changes in technology
and technological risks; (10) work stoppages and strikes at our
facilities and that of our customers or suppliers; (11) our dependence
on the automotive and heavy truck industries, which are highly cyclical;
(12) the dependence of the automotive industry on consumer spending,
which is subject to the impact of domestic and international economic
conditions affecting car and light truck production; (13) regulations
and policies regarding international trade; (14) financial and business
downturns of our customers or vendors, including any production cutbacks
or bankruptcies; (15) increases in the price of, or limitations on the
availability of aluminum, magnesium or steel, our primary raw materials,
or decreases in the price of scrap steel; (16) the successful launch and
consumer acceptance of new vehicles for which we supply parts; (17) the
impact on financial statements of any known or unknown accounting errors
or irregularities; and the magnitude of any adjustments in restated
financial statements of our operating results; (18) the occurrence of
any event or condition that may be deemed a material adverse effect
under agreements related to our outstanding indebtedness or a decrease
in customer demand which could cause a covenant default under agreements
related to our outstanding indebtedness; (19) pension plan funding
requirements; and (20) other factors besides those listed here could
also materially affect our business. See “Part II, Item 1A. Risk
Factors” in our Annual Report on Form 10-K for the fiscal year ended
October 31, 2018 for a more complete discussion of these risks and
uncertainties. Any or all of these risks and uncertainties could cause
actual results to differ materially from those reflected in the
forward-looking statements. These forward-looking statements reflect
management’s analysis only as of the date of this Press Release. We
undertake no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date
of filing this Press Release. In addition to the disclosures contained
herein, readers should carefully review risks and uncertainties
contained in other documents we file from time to time with the SEC.
Non-GAAP Financial Measures
This press release may include non-GAAP financial measures, including
“EBITDA,” “adjusted EBITDA,” “adjusted EBITDA margin” and “adjusted
earnings per share.” We define EBITDA as net income (loss) before
interest, taxes, depreciation and amortization. We define adjusted
EBITDA as net income (loss) before interest, taxes, depreciation,
amortization, and other adjustments as described in the reconciliations
accompanying this press release. We define adjusted EBITDA margin as
adjusted EBITDA divided by net revenues as shown in the reconciliations
accompanying this press release. Adjusted earnings per share excludes
certain income and expense items as shown in the reconciliation
accompanying this press release. We use EBITDA, adjusted EBITDA,
adjusted EBITDA margin and adjusted earnings per share as supplements to
information provided in accordance with generally accepted accounting
principles (“GAAP”) in evaluating our business and they are included in
this press release because they are principal factors upon which our
management assesses performance. Reconciliations of these non-GAAP
financial measures to the most directly comparable financial measures
calculated in accordance with GAAP are set forth below. The non-GAAP
measures presented in this release are not measures of performance under
GAAP. These measures should not be considered as alternatives to the
most directly comparable financial measures calculated in accordance
with GAAP. Other companies in our industry may define these non-GAAP
measures differently than we do and, as a result, these non-GAAP
measures may not be comparable to similarly titled measures used by
other companies; and certain of our non-GAAP financial measures exclude
financial information that some may consider important in evaluating our
performance. Given the inherent uncertainty regarding special items and
other expenses in any future period, a reconciliation of forward-looking
financial measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP is not feasible. The
magnitude of these items, however, may be significant.
| Adjusted Earnings Per Share Reconciliation |
Three Months |
Six Months |
|||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net income (loss) per common share (GAAP) | |||||||||||||||
| Basic | $ | 0.05 | $ | 0.17 | $ | (0.15 | ) | $ | 0.38 | ||||||
| Tax Cuts and Jobs Act, impact | — | — | — | (0.14 | ) | ||||||||||
| Restructuring | 0.15 | 0.05 | 0.25 | 0.10 | |||||||||||
| Amortization of intangibles | 0.02 | 0.02 | 0.03 | 0.04 | |||||||||||
| Legal and professional fees | 0.02 | — | 0.07 | 0.01 | |||||||||||
| Adjusted basic earnings (loss) per share (non-GAAP) | $ | 0.24 | $ | 0.24 | $ | 0.20 | $ | 0.39 | |||||||
| Adjusted EBITDA Reconciliation |
Three Months |
Six Months |
|||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||
| Net income (loss) | $ | 1,112 | $ | 4,025 | $ | (3,586 | ) | $ | 8,883 | ||||||||
| Depreciation and amortization | 11,498 | 11,298 | 23,358 | 21,414 | |||||||||||||
| Interest expense | 3,847 | 2,642 | 7,197 | 4,977 | |||||||||||||
| Provision (benefit) for income taxes | 1,448 | 218 | (1,639 | ) | (2,840 | ) | |||||||||||
| EBITDA (non-GAAP) | 17,905 | 18,183 | 25,330 | 32,434 | |||||||||||||
| Restructuring | 4,460 | 1,483 | 7,466 | 2,997 | |||||||||||||
| Legal and professional fees | 461 | 83 | 2,096 | 367 | |||||||||||||
| Stock compensation | 445 | 526 | 990 | 1,042 | |||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 23,271 | $ | 20,275 | $ | 35,882 | $ | 36,840 | |||||||||
| Adjusted EBITDA margin (non-GAAP) | 8.5 | % | 6.8 | % | 6.7 | % | 6.8 | % | |||||||||
|
SHILOH INDUSTRIES, INC. |
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|
CONSOLIDATED BALANCE SHEETS |
|||||||||
|
(Dollar amounts in thousands) |
|||||||||
|
April 30, |
October 31, |
||||||||
| (Unaudited) | |||||||||
| ASSETS: | |||||||||
| Cash and cash equivalents | $ | 17,660 | $ | 16,843 | |||||
| Accounts receivable, net | 192,125 | 209,733 | |||||||
| Related party accounts receivable | 2,306 | 996 | |||||||
| Prepaid income taxes | 1,898 | 1,391 | |||||||
| Inventories, net | 67,323 | 71,412 | |||||||
| Prepaid expenses | 10,083 | 10,478 | |||||||
| Other current assets | 8,838 | 22,124 | |||||||
| Total current assets | 300,233 | 332,977 | |||||||
| Property, plant and equipment, net | 329,359 | 316,176 | |||||||
| Goodwill | 27,421 | 27,376 | |||||||
| Intangible assets, net | 13,973 | 14,939 | |||||||
| Deferred income taxes | 5,734 | 5,665 | |||||||
| Other assets | 6,470 | 12,542 | |||||||
| Total assets | $ | 683,190 | $ | 709,675 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||||
| Current debt | $ | 484 | $ | 1,327 | |||||
| Accounts payable | 180,793 | 177,400 | |||||||
| Other accrued expenses | 39,405 | 63,031 | |||||||
| Accrued income taxes | 90 | 1,874 | |||||||
| Total current liabilities | 220,772 | 243,632 | |||||||
| Long-term debt | 247,597 | 245,351 | |||||||
| Long-term benefit liabilities | 15,677 | 15,553 | |||||||
| Deferred income taxes | 801 | 2,894 | |||||||
| Other liabilities | 3,190 | 2,723 | |||||||
| Total liabilities | 488,037 | 510,153 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders’ equity: | |||||||||
|
Preferred stock, $0.01 per share; 5,000,000 shares authorized; no shares issued and outstanding at April 30, 2019 and October 31, 2018, respectively |
— | — | |||||||
|
Common stock, par value $0.01 per share; 75,000,000 and 50,000,000 shares authorized at April 30, 2019 and October 31, 2018, respectively; 23,762,075 and 23,417,107 shares issued and outstanding at April 30, 2019 and October 31, 2018, respectively |
238 | 234 | |||||||
| Paid-in capital | 115,391 | 114,405 | |||||||
| Retained earnings | 132,227 | 135,813 | |||||||
| Accumulated other comprehensive loss, net | (52,703 | ) | (50,930 | ) | |||||
| Total stockholders’ equity | 195,153 | 199,522 | |||||||
| Total liabilities and stockholders’ equity | $ | 683,190 | $ | 709,675 | |||||
|
SHILOH INDUSTRIES, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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|
(Amounts in thousands, except per share data) |
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| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Net revenues | $ | 273,370 | $ | 297,340 | $ | 532,303 | $ | 545,006 | |||||||||
| Cost of sales | 244,691 | 265,837 | 489,933 | 485,613 | |||||||||||||
| Gross profit | 28,679 | 31,503 | 42,370 | 59,393 | |||||||||||||
| Selling, general & administrative expenses | 16,879 | 22,146 | 32,964 | 43,386 | |||||||||||||
| Amortization of intangible assets | 519 | 595 | 1,040 | 1,160 | |||||||||||||
| Restructuring | 4,460 | 1,483 | 7,466 | 2,997 | |||||||||||||
| Operating income | 6,821 | 7,279 | 900 | 11,850 | |||||||||||||
| Interest expense | 3,848 | 2,645 | 7,203 | 4,985 | |||||||||||||
| Interest income | (1 | ) | (3 | ) | (6 | ) | (8 | ) | |||||||||
| Other (income) expense, net | 414 | 394 | (1,072 | ) | 830 | ||||||||||||
| Income (loss) before income taxes | 2,560 | 4,243 | (5,225 | ) | 6,043 | ||||||||||||
| Provision (benefit) for income taxes | 1,448 | 218 | (1,639 | ) | (2,840 | ) | |||||||||||
| Net income (loss) | $ | 1,112 | $ | 4,025 | $ | (3,586 | ) | $ | 8,883 | ||||||||
| Income (loss) per share: | |||||||||||||||||
| Basic earnings (loss) per share | $ | 0.05 | $ | 0.17 | $ | (0.15 | ) | $ | 0.38 | ||||||||
| Basic weighted average number of common shares | 23,516 | 23,222 | 23,450 | 23,164 | |||||||||||||
| Diluted earnings (loss) per share | $ | 0.05 | $ | 0.17 | $ | (0.15 | ) | $ | 0.38 | ||||||||
| Diluted weighted average number of common shares | 23,559 | 23,357 | 23,450 | 23,311 | |||||||||||||
|
SHILOH INDUSTRIES, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
(Dollar amounts in thousands) |
|||||||||
| Six Months Ended April 30, | |||||||||
| 2019 | 2018 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income (loss) | $ | (3,586 | ) | $ | 8,883 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
| Depreciation and amortization | 23,358 | 21,414 | |||||||
| Amortization of deferred financing costs | 596 | 621 | |||||||
| Restructuring | 1,272 | 581 | |||||||
| Deferred income taxes | (2,739 | ) | (2,949 | ) | |||||
| Stock-based compensation expense | 990 | 1,042 | |||||||
| (Gain) loss on sale of assets | (4,156 | ) | 60 | ||||||
| Loss on marketable securities | 25 | — | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable, net | 25,456 | 2,294 | |||||||
| Inventories, net | 7,196 | 1,287 | |||||||
| Prepaids and other assets | 2,432 | (4,445 | ) | ||||||
| Payables and other liabilities | (33,669 | ) | (7,286 | ) | |||||
| Prepaid and accrued income taxes | (4,419 | ) | (1,442 | ) | |||||
| Net cash provided by operating activities | 12,756 | 20,060 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Capital expenditures | (33,248 | ) | (23,772 | ) | |||||
| Acquisitions, net of cash required | — | (62,481 | ) | ||||||
| Derivative settlements | 5,855 | — | |||||||
| Proceeds from sale of assets | 12,339 | 70 | |||||||
| Net cash used in investing activities | (15,054 | ) | (86,183 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
| Payment of capital leases | (370 | ) | (448 | ) | |||||
| Proceeds from long-term borrowings | 140,700 | 174,900 | |||||||
| Repayments of long-term borrowings | (138,200 | ) | (100,161 | ) | |||||
| Payment of deferred financing costs | — | (103 | ) | ||||||
| Proceeds from exercise of stock options | — | 33 | |||||||
| Net cash provided by financing activities | 2,130 | 74,221 | |||||||
| Effect of foreign currency exchange rate fluctuations on cash | 985 | 779 | |||||||
| Net increase in cash and cash equivalents | 817 | 8,877 | |||||||
| Cash and cash equivalents at beginning of period | 16,843 | 8,736 | |||||||
| Cash and cash equivalents at end of period | $ | 17,660 | $ | 17,613 | |||||
Contacts
Kevin Doherty
330-558-2601
[email protected]
