Horizon Global Reports Financial Results for the Fourth Quarter and Full Year 2021
Horizon Global Corporation (NYSE: HZN) reported its fourth quarter and full-year 2021 financial results, highlighting net sales of $164.3 million for Q4, down $11.6 million from Q4 2020. Full-year net sales increased to $782.1 million, driven by higher retail and industrial channel sales. Q4 gross profit fell to $16.0 million, with a margin decreasing to 9.7%. The company experienced a net loss of $16.2 million in Q4. Supply chain issues, increased costs, and operational inefficiencies contributed to these declines. The CEO remains optimistic about recovery in 2022.
- Full-year net sales increased by $120.9 million compared to the prior year.
- Gross profit for the full year rose by $22.0 million compared to the prior year.
- Adjusted EBITDA for the full year improved by $9.3 million compared to the prior year.
- Q4 net sales decreased by $11.6 million from Q4 2020.
- Q4 gross profit decreased by $16.9 million, leading to a gross profit margin decline to 9.7%.
- Net loss from continuing operations increased by $10.3 million in Q4 compared to the previous year.
- Adjusted EBITDA for Q4 decreased by $15.3 million year-over-year.
Fourth Quarter Highlights
-
Net sales of
$164.3 million -
$11.6 million
-
-
Gross profit of
$16.0 million -
$16.9 million
-
-
Gross profit margin(4) decreased to
9.7% from18.7% in the fourth quarter of 2020 -
Net loss from continuing operations of
$16.2 million -
$10.3 million
-
-
Adjusted EBITDA(1) of
$(8.0) million -
$15.3 million
-
Full Year Highlights
-
Net sales of
$782.1 million -
$120.9 million
-
-
Gross profit of
$142.6 million -
$22.0 million
-
-
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
-
-
Adjusted EBITDA(1) of
$35.7 million -
$9.3 million
-
“Our Q4 and full year 2021 financial performance is consistent with the preliminary results communicated in mid-February,” stated
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
2021 Fourth Quarter Segment Results
Horizon
Horizon
Balance Sheet and Liquidity. Cash and Availability(2) was
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
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
The conference call will be webcast simultaneously and in its entirety through the
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
About
Headquartered in
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
(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 |
|
(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”. |
Condensed Consolidated Balance Sheets (Dollars in thousands) |
||||||||
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|
|
|
|
||||
|
|
(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 |
|
|
|
|
— |
|
|
|
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 |
|
|
(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 |
|
Consolidated Statements of Operations (unaudited) (Dollars in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
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 |
|
$ |
(15,730 |
) |
|
$ |
(5,410 |
) |
|
$ |
(31,720 |
) |
|
$ |
(36,560 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to |
|
|
|
|
|
|
|
|
||||||||
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 |
|
Consolidated Statements of Cash Flows (unaudited) (Dollars in thousands) |
||||||||
|
|
Twelve Months Ended
|
||||||
|
|
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
|
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 |
|
Adjusted EBITDA is defined as net income (loss) attributable to |
|
The following table summarizes The following table summarizes Adjusted EBITDA for our operating segments for the three months ended |
|
|
Three months ended
|
|
Three months ended
|
|
Variance |
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|
|
Horizon
|
|
Horizon
|
|
Corporate |
|
Consolidated |
|
Horizon
|
|
Horizon
|
|
Corporate |
|
Consolidated |
|
Consolidated |
||||||||||||||||
|
|
(dollars in thousands) |
|
(dollars in thousands) |
||||||||||||||||||||||||||||||
Net loss attributable to |
|
|
|
|
|
|
|
$ |
(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 |
||||||||||||||||||||||||||||||||||
|
|
Twelve Months Ended
|
|
Twelve Months Ended
|
|
Variance |
||||||||||||||||||||||||||||
|
|
Horizon
|
|
Horizon
|
|
Corporate |
|
Consolidated |
|
Horizon
|
|
Horizon
|
|
Corporate |
|
Consolidated |
|
Consolidated |
||||||||||||||||
|
|
(dollars in thousands) |
|
(dollars in thousands) |
||||||||||||||||||||||||||||||
Net loss attributable to |
|
|
|
|
|
|
|
$ |
(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 |
|
|
Three Months Ended
|
|
Change |
|||||||||||
|
|
2021 |
|
2020 |
|
$ |
|
% |
|||||||
|
|
(unaudited, dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
102,350 |
|
|
$ |
96,750 |
|
|
$ |
5,600 |
|
|
5.8 |
% |
Horizon |
|
|
61,920 |
|
|
|
79,110 |
|
|
|
(17,190 |
) |
|
(21.7 |
) % |
Total |
|
$ |
164,270 |
|
|
$ |
175,860 |
|
|
$ |
(11,590 |
) |
|
(6.6 |
) % |
Gross Profit |
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
18,460 |
|
|
$ |
25,130 |
|
|
$ |
(6,670 |
) |
|
(26.5 |
) % |
Horizon |
|
|
(2,490 |
) |
|
|
7,750 |
|
|
|
(10,240 |
) |
|
(132.1 |
) % |
Total |
|
$ |
15,970 |
|
|
$ |
32,880 |
|
|
$ |
(16,910 |
) |
|
(51.4 |
) % |
Operating Profit (Loss) |
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
1,580 |
|
|
$ |
8,620 |
|
|
$ |
(7,040 |
) |
|
(81.7 |
) % |
Horizon |
|
|
(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 |
|
$ |
3,460 |
|
|
$ |
10,890 |
|
|
$ |
(7,430 |
) |
|
(68.2 |
) % |
Horizon |
|
|
(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 |
|
|
Twelve Months Ended
|
|
Change |
|||||||||||
|
|
2021 |
|
2020 |
|
$ |
|
% |
|||||||
|
|
(unaudited, dollars in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
456,410 |
|
|
$ |
382,380 |
|
|
$ |
74,030 |
|
|
19.4 |
% |
Horizon |
|
|
325,710 |
|
|
|
278,850 |
|
|
|
46,860 |
|
|
16.8 |
% |
Total |
|
$ |
782,120 |
|
|
$ |
661,230 |
|
|
$ |
120,890 |
|
|
18.3 |
% |
Gross Profit |
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
112,120 |
|
|
$ |
95,850 |
|
|
$ |
16,270 |
|
|
17.0 |
% |
Horizon |
|
|
30,460 |
|
|
|
24,700 |
|
|
|
5,760 |
|
|
23.3 |
% |
Total |
|
$ |
142,580 |
|
|
$ |
120,550 |
|
|
$ |
22,030 |
|
|
18.3 |
% |
Operating Profit (Loss) |
|
|
|
|
|
|
|
|
|||||||
Horizon |
|
$ |
42,580 |
|
|
$ |
27,950 |
|
|
$ |
14,630 |
|
|
52.3 |
% |
Horizon |
|
|
(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 |
|
$ |
49,240 |
|
|
$ |
38,430 |
|
|
$ |
10,810 |
|
|
28.1 |
% |
Horizon |
|
|
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
|
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 |
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||
|
|
Horizon
|
|
Horizon
|
|
Consolidated |
|
Horizon
|
|
Horizon
|
|
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 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220310005087/en/
Investor
(616) 295-2509
jtryka@horizonglobal.com
Source:
FAQ
What were Horizon Global's Q4 2021 financial results?
How did Horizon Global's full-year performance compare to 2020?
What challenges did Horizon Global face in Q4 2021?
What is Horizon Global's outlook for 2022?
