UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 | ||||||||
FORM |
(Exact Name of Registrant as Specified in Charter) |
_____________________ (State or Other Jurisdiction | _____________ (Commission | ______________ (IRS Employer | ||||||
of Incorporation) | File Number) | Identification No.) | ||||||
_____________________ | ___________ (Zip Code) | |||||||
(Address of principal executive offices) |
Registrant’s telephone number, including area code: | ( _____________ |
Not Applicable | ||
________________________________________ (Former name or former address, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||||||||
99.1 | ||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
HORIZON GLOBAL CORPORATION | ||||||||||||||||||||
Date: | August 3, 2021 | By: | /s/ Dennis E. Richardville | |||||||||||||||||
Name: | Dennis E. Richardville | |||||||||||||||||||
Title: | Chief Financial Officer |
CONTACT: | Jeff Tryka, CFA | ||||||||||
Investor Relations, Lambert & Co. | |||||||||||
(616) 295-2509 | |||||||||||
jtryka@horizonglobal.com |
(1) | Please refer to “Company and Business Segment Financial Information” which details certain costs, expense, other charges, that are included in the determination of net income attributable to Horizon Global under GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results. The Company’s management utilizes Adjusted EBITDA as the key measure of company and segment performance and for planning and forecasting purposes, as management believes this measure is most reflective of the operational profitability or loss of the Company and its operating segments and provides management and investors with information to evaluate the operating performance of its business and is representative of its performance used to measure certain of its financial covenants. Adjusted EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Horizon Global, which is the most directly comparable financial measure to Adjusted EBITDA that is prepared in accordance with U.S. GAAP. | ||||
(2) | "Cash and Availability" refers to “cash and cash equivalents” and amounts of cash accessible but undrawn from credit facilities. | ||||
(3) | “Working Capital” defined as "total current assets" excluding "cash, cash equivalents and restricted cash", less "total current liabilities" excluding "current maturities, long-term debt" and "short-term operating lease liabilities". | ||||
(4) | “Gross Profit Margin” refers to “gross profit” as a percentage of “net sales”. |
June 30, 2021 | December 31, 2020 | |||||||||||||
(unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 24,680 | $ | 44,970 | ||||||||||
Restricted cash | 5,510 | 5,720 | ||||||||||||
Receivables, net | 116,240 | 87,420 | ||||||||||||
Inventories | 144,360 | 115,320 | ||||||||||||
Prepaid expenses and other current assets | 12,100 | 11,510 | ||||||||||||
Total current assets | 302,890 | 264,940 | ||||||||||||
Property and equipment, net | 73,520 | 74,090 | ||||||||||||
Operating lease right-of-use assets | 40,400 | 47,310 | ||||||||||||
Goodwill | — | 3,360 | ||||||||||||
Other intangibles, net | 54,890 | 58,230 | ||||||||||||
Deferred income taxes | 1,280 | 1,280 | ||||||||||||
Other assets | 6,410 | 7,280 | ||||||||||||
Total assets | $ | 479,390 | $ | 456,490 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term borrowings and current maturities, long-term debt | $ | 11,990 | $ | 14,120 | ||||||||||
Accounts payable | 111,940 | 99,520 | ||||||||||||
Short-term operating lease liabilities | 11,130 | 12,180 | ||||||||||||
Accrued liabilities | 59,750 | 59,100 | ||||||||||||
Total current liabilities | 194,810 | 184,920 | ||||||||||||
Gross long-term debt | 284,040 | 251,960 | ||||||||||||
Unamortized debt issuance costs and discount | (31,460) | (20,570) | ||||||||||||
Long-term debt | 252,580 | 231,390 | ||||||||||||
Deferred income taxes | 4,080 | 3,130 | ||||||||||||
Long-term operating lease liabilities | 39,410 | 46,340 | ||||||||||||
Other long-term liabilities | 11,000 | 14,560 | ||||||||||||
Total liabilities | 501,880 | 480,340 | ||||||||||||
Total Horizon Global shareholders' deficit | (16,660) | (18,690) | ||||||||||||
Noncontrolling interest | (5,830) | (5,160) | ||||||||||||
Total shareholders' deficit | (22,490) | (23,850) | ||||||||||||
Total liabilities and shareholders' equity | $ | 479,390 | $ | 456,490 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net sales | $ | 222,120 | $ | 120,490 | $ | 421,310 | $ | 283,740 | ||||||||||||||||||
Cost of sales | (174,830) | (102,440) | (333,460) | (239,440) | ||||||||||||||||||||||
Gross profit | 47,290 | 18,050 | 87,850 | 44,300 | ||||||||||||||||||||||
Selling, general and administrative expenses | (35,960) | (26,020) | (69,740) | (58,950) | ||||||||||||||||||||||
Operating profit (loss) | 11,330 | (7,970) | 18,110 | (14,650) | ||||||||||||||||||||||
Other expense, net | (1,990) | (450) | (4,220) | (2,120) | ||||||||||||||||||||||
Loss on debt extinguishment | — | — | (11,650) | — | ||||||||||||||||||||||
Interest expense | (6,980) | (8,220) | (14,030) | (16,410) | ||||||||||||||||||||||
Income (loss) from continuing operations before income tax | 2,360 | (16,640) | (11,790) | (33,180) | ||||||||||||||||||||||
Income tax expense | (1,400) | (80) | (2,400) | (70) | ||||||||||||||||||||||
Net income (loss) from continuing operations | 960 | (16,720) | (14,190) | (33,250) | ||||||||||||||||||||||
Loss from discontinued operations, net of income tax | — | — | — | (500) | ||||||||||||||||||||||
Net income (loss) | 960 | (16,720) | (14,190) | (33,750) | ||||||||||||||||||||||
Less: Net loss attributable to noncontrolling interest | (330) | (380) | (670) | (670) | ||||||||||||||||||||||
Net income (loss) attributable to Horizon Global | $ | 1,290 | $ | (16,340) | $ | (13,520) | $ | (33,080) | ||||||||||||||||||
Net income (loss) per share attributable to Horizon Global: | ||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.05 | $ | (0.64) | $ | (0.50) | $ | (1.28) | ||||||||||||||||||
Discontinued operations | — | — | — | (0.02) | ||||||||||||||||||||||
Total | $ | 0.05 | $ | (0.64) | $ | (0.50) | $ | (1.30) | ||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.04 | $ | (0.64) | $ | (0.50) | $ | (1.28) | ||||||||||||||||||
Discontinued operations | — | — | — | (0.02) | ||||||||||||||||||||||
Total | $ | 0.04 | $ | (0.64) | $ | (0.50) | $ | (1.30) | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 27,022,652 | 25,618,793 | 26,883,818 | 25,509,794 | ||||||||||||||||||||||
Diluted | 32,747,203 | 25,618,793 | 26,883,818 | 25,509,794 |
Six Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||
Net loss | $ | (14,190) | $ | (33,750) | ||||||||||
Less: Net loss from discontinued operations | — | (500) | ||||||||||||
Net loss from continuing operations | (14,190) | (33,250) | ||||||||||||
Adjustments to reconcile net loss from continuing operations to net cash (used for) provided by operating activities: | ||||||||||||||
Depreciation | 7,750 | 7,100 | ||||||||||||
Amortization of intangible assets | 2,970 | 3,430 | ||||||||||||
Loss on debt extinguishment | 11,650 | — | ||||||||||||
Amortization of original issuance discount and debt issuance costs | 5,400 | 8,100 | ||||||||||||
Deferred income taxes | 1,120 | 10 | ||||||||||||
Non-cash compensation expense | 1,710 | 1,320 | ||||||||||||
Paid-in-kind interest | 650 | 3,660 | ||||||||||||
Increase in receivables | (30,630) | (16,780) | ||||||||||||
(Increase) decrease in inventories | (31,350) | 19,270 | ||||||||||||
Increase in prepaid expenses and other assets | (440) | (2,890) | ||||||||||||
Increase in accounts payable and accrued liabilities | 15,960 | 13,460 | ||||||||||||
Other, net | 1,780 | 1,470 | ||||||||||||
Net cash (used for) provided by operating activities for continuing operations | (27,620) | 4,900 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||
Capital expenditures | (9,940) | (5,450) | ||||||||||||
Other, net | 10 | 70 | ||||||||||||
Net cash used for investing activities for continuing operations | (9,930) | (5,380) | ||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||
Proceeds from borrowings on credit facilities | 2,190 | 6,290 | ||||||||||||
Repayments of borrowings on credit facilities | (1,300) | (1,210) | ||||||||||||
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 | 20,000 | 54,680 | ||||||||||||
Repayments of borrowings on Revolving Credit Facility | — | (19,180) | ||||||||||||
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 | (640) | (10) | ||||||||||||
Net cash provided by financing activities for continuing operations | 17,330 | 29,320 | ||||||||||||
Discontinued Operations: | ||||||||||||||
Net cash used for discontinued operations | — | (500) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (280) | (110) | ||||||||||||
Cash, Cash Equivalents and Restricted Cash: | ||||||||||||||
(Decrease) increase for the period | (20,500) | 28,230 | ||||||||||||
At beginning of period | 50,690 | 11,770 | ||||||||||||
At end of period | $ | 30,190 | $ | 40,000 | ||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Cash paid for interest | $ | 10,860 | $ | 4,370 | ||||||||||
Cash paid for taxes, net of refunds | $ | 1,430 | $ | 440 |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Horizon Americas | Horizon Europe-Africa | Corporate | Consolidated | Horizon Americas | Horizon Europe-Africa | Corporate | Consolidated | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Horizon Global | $ | 1,290 | $ | (16,340) | $ | 17,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | (330) | (380) | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 960 | $ | (16,720) | $ | 17,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 6,980 | 8,220 | (1,240) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 1,400 | 80 | 1,320 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,220 | 5,470 | (250) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 15,980 | $ | 5,040 | $ | (6,460) | $ | 14,560 | $ | 5,350 | $ | (3,250) | $ | (5,050) | $ | (2,950) | $ | 17,510 | ||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | — | 330 | — | 330 | — | 380 | — | 380 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, relocation and related business disruption costs | 20 | 90 | (40) | 70 | 410 | 30 | 210 | 650 | (580) | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | 850 | 850 | — | — | 900 | 900 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on business divestitures and other assets | 2,480 | (10) | — | 2,470 | 240 | — | 40 | 280 | 2,190 | |||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | — | — | 190 | 190 | — | — | 560 | 560 | (370) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency remeasurement costs | — | (340) | (110) | (450) | (100) | 690 | (370) | 220 | (670) | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 18,480 | $ | 5,110 | $ | (5,570) | $ | 18,020 | $ | 5,900 | $ | (2,150) | $ | (3,710) | $ | 40 | $ | 17,980 |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2019 | Variance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Horizon Americas | Horizon Europe-Africa | Corporate | Consolidated | Horizon Americas | Horizon Europe-Africa | Corporate | Consolidated | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Horizon Global | $ | 1,290 | $ | (8,080) | $ | 9,370 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | (330) | (60) | (270) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 960 | $ | (8,140) | $ | 9,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 6,980 | 15,320 | (8,340) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 1,400 | (1,040) | 2,440 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,220 | 5,310 | (90) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 15,980 | $ | 5,040 | $ | (6,460) | $ | 14,560 | $ | 11,220 | $ | 5,220 | $ | (4,990) | $ | 11,450 | $ | 3,110 | ||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | — | 330 | — | 330 | — | 60 | — | 60 | 270 | |||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | — | — | — | (2,990) | (2,990) | 2,990 | |||||||||||||||||||||||||||||||||||||||||||||||
Severance | — | — | — | — | (270) | 20 | — | (250) | 250 | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring, relocation and related business disruption costs | 20 | 90 | (40) | 70 | 540 | (10) | — | 530 | (460) | |||||||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | 850 | 850 | — | — | 600 | 600 | 250 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on business divestitures and other assets | 2,480 | (10) | — | 2,470 | 430 | — | 1,320 | 1,750 | 720 | |||||||||||||||||||||||||||||||||||||||||||||||
Board transition support | — | — | — | — | — | — | 760 | 760 | (760) | |||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | — | — | 190 | 190 | — | — | 1,300 | 1,300 | (1,110) | |||||||||||||||||||||||||||||||||||||||||||||||
Unrealized foreign currency remeasurement costs | — | (340) | (110) | (450) | 150 | (680) | (190) | (720) | 270 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | (10) | (200) | — | (210) | 210 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 18,480 | $ | 5,110 | $ | (5,570) | $ | 18,020 | $ | 12,060 | $ | 4,410 | $ | (4,190) | $ | 12,280 | $ | 5,740 |
Three Months Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | $ | % | |||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||
Horizon Americas | $ | 128,380 | $ | 74,120 | $ | 54,260 | 73.2 | % | ||||||||||||||||||
Horizon Europe-Africa | 93,740 | 46,370 | 47,370 | 102.2 | % | |||||||||||||||||||||
Total | $ | 222,120 | $ | 120,490 | $ | 101,630 | 84.3 | % | ||||||||||||||||||
Gross Profit | ||||||||||||||||||||||||||
Horizon Americas | $ | 35,080 | $ | 18,140 | $ | 16,940 | 93.4 | % | ||||||||||||||||||
Horizon Europe-Africa | 12,210 | (90) | 12,300 | 13,666.7 | % | |||||||||||||||||||||
Total | $ | 47,290 | $ | 18,050 | $ | 29,240 | 162.0 | % | ||||||||||||||||||
Operating Profit (Loss) | ||||||||||||||||||||||||||
Horizon Americas | $ | 16,760 | $ | 3,430 | $ | 13,330 | 388.6 | % | ||||||||||||||||||
Horizon Europe-Africa | 1,240 | (5,970) | 7,210 | 120.8 | % | |||||||||||||||||||||
Corporate | (6,670) | (5,430) | (1,240) | (22.8 | %) | |||||||||||||||||||||
Total | $ | 11,330 | $ | (7,970) | $ | 19,300 | 242.2 | % | ||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||
Horizon Americas | $ | 18,480 | $ | 5,900 | $ | 12,580 | 213.2 | % | ||||||||||||||||||
Horizon Europe-Africa | 5,110 | (2,150) | 7,260 | 337.7 | % | |||||||||||||||||||||
Corporate | (5,570) | (3,710) | (1,860) | (50.1 | %) | |||||||||||||||||||||
Total | $ | 18,020 | $ | 40 | $ | 17,980 | 44,950.0 | % |
Three Months Ended June 30, 2021 | ||||||||||||||||||||
Horizon Americas | Horizon Europe-Africa | Consolidated | ||||||||||||||||||
Revenue growth as reported | 73.2 | % | 102.2 | % | 84.3 | % | ||||||||||||||
Less: currency impact | — | % | 17.0 | % | 6.5 | % | ||||||||||||||
Revenue growth at constant currency | 73.2 | % | 85.1 | % | 77.8 | % |
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