Garrett Motion Inc. - GTX STOCK NEWS

Garrett Motion Inc. has announced the conversion of its Series A Preferred Stock into a single class of Common Stock. This move aims to simplify the company's capital structure and increase market capitalization and liquidity. The conversion will also allow Garrett to engage more effectively with the investment community. Trading of the Series A Preferred Stock on Nasdaq has been suspended, and each holder will receive one share of Garrett's Common Stock for each share of Series A Preferred Stock previously held. Additionally, holders will receive a payment of accrued and unpaid dividends on the Series A Preferred Stock through June 30, 2023, as well as dividends that would have accrued through September 30, 2023.

Garrett Motion Inc. reported a strong first quarter of 2023 with net sales of $970 million, an 8% increase year-over-year, and an adjusted EBITDA of $168 million (17.3% margin). The net income stood at $81 million, resulting in an 8.4% margin, a decline from 9.8% in 2022. The company benefitted from increased volumes and successful new product launches. Despite inflationary pressures, gross profit rose to $189 million (19.5% margin). Cash flow from operations improved to $92 million compared to $73 million last year. Garrett reaffirmed its 2023 outlook with projected net sales of $3.79 billion to $3.98 billion and adjusted EBITDA of $585 million to $635 million. The simplification of capital structure is expected to enhance cash flow by over $100 million annually.

Garrett Motion Inc. (NASDAQ: GTX) showcased its advanced turbocharging and electrification technologies at Auto Shanghai 2023 (April 18-27), targeting the growing automotive market in China. CEO Olivier Rabiller emphasized the company's commitment to sustainable mobility through innovative engineering solutions. New offerings include variable nozzle turbines for enhanced fuel efficiency, E-turbos for smaller engines, and hydrogen fuel cell compressors aimed at zero-emission vehicles. Garrett also invests over 50% of R&D resources into electrification and is developing a 3-in-1 E-axle technology. The company maintains a strong presence in China with manufacturing facilities in Shanghai and Wuhan and an expanding R&D center, employing over 1,000 professionals.

Garrett Motion Inc. (Nasdaq: GTX, GTXAP) reported strong preliminary results for Q1 2023, with a net sales increase of 8% to $970 million compared to $901 million in Q1 2022. The company also announced an updated financial outlook for the full year 2023, revising net sales forecasts to between $3.79 billion and $3.98 billion, up from $3.55 billion to $3.85 billion. Adjusted EBITDA is expected to be between $585 million and $635 million. Net income for Q1 was $81 million, down from $88 million year-over-year, reflecting prior unrealized gains. Cash flow from operations improved to $92 million vs. $73 million in the previous year. The full year outlook also anticipates industry production increase of 1%. Garrett has initiated a syndication of a $700 million secured Term Loan B for capital structure normalization.

Garrett Motion Inc. (Nasdaq: GTX, GTXAP) has announced the conversion of its Series A Preferred Stock into Common Stock, expected around July 3, 2023. This move simplifies the capital structure, enhancing liquidity with a multi-billion dollar equity market capitalization. The elimination of the 11% dividend on Series A Preferred Stock will benefit the company's annual net cash flow by over $100 million. Additionally, Garrett plans to repurchase $570 million of Series A shares and has authorized a $250 million increase in its stock buyback program. Centerbridge and Oaktree will remain significant shareholders, reducing their governance rights while maintaining their board seats. This transition aims to broaden Garrett's shareholder base and improve financial flexibility.

Garrett Motion Inc. (Nasdaq: GTX, GTXAP) reported stronger than expected year-to-date financial results, forecasting full-year net income and Adjusted EBITDA at the upper end of previous guidance. Key drivers include robust industry volumes, operational excellence, and favorable foreign exchange. The company is on track to meet the Consolidated EBITDA threshold for automatic conversion of Series A preferred stock, contingent on achieving a 75-day volume-weighted average price exceeding $7.875 per share. The current VWAP is $7.70. Full-year 2023 guidance includes net sales of $3.55 billion to $3.85 billion and Adjusted EBITDA of $555 million to $615 million.

Garrett Motion Inc. (Nasdaq: GTX, GTXAP) announced a quarterly cash dividend of $0.17 per share for its Series A 11% PIK Preferred Stock, instead of allowing the dividend to accrete. The dividend will be paid on April 3, 2023, to shareholders on record as of the close of business on March 22, 2023. This decision reflects the company's commitment to providing immediate shareholder returns while navigating its capital structure. Garrett Motion, a leader in automotive technology, focuses on enhancing vehicle efficiency and connectivity. For detailed information, visit Garrett Motion's website.

Garrett Motion Inc. (Nasdaq: GTX, GTXAP) reported Q4 2022 net sales of $898 million, a 4% increase from Q4 2021, and a 15% rise at constant currency. The company achieved a net income of $112 million with a 12.5% margin. For the full year, net sales fell 1% to $3.6 billion, amid a 10.8% net income margin. Adjusted EBITDA for Q4 2022 rose 8.5% to $140 million, with a margin of 15.6%. Garrett anticipates 2023 net sales between $3.55 billion and $3.85 billion, with a focus on electrification technologies. The company ended 2022 with $721 million in liquidity, including $246 million in cash.