TPI Composites, Inc. Delivers Solid Close to a Challenging Year - Restructuring Plans on Track to Position TPI for the Future
TPI Composites (Nasdaq: TPIC) announced its financial results for Q4 and the full year 2022, highlighting a net loss of $124.2 million for the year. However, adjusted EBITDA for the same period improved significantly to $73.6 million. Despite some inflationary pressures and operational challenges, the company expects net sales growth of 1.5% in 2022, driven by higher average wind blade prices and increased production at facilities in Turkey and Mexico. Looking ahead, TPI projects 2023 net sales between $1.6 billion and $1.7 billion, with an adjusted EBITDA margin in the low single-digit range. The company also plans capital expenditures of approximately $25 million.
- Adjusted EBITDA for 2022 improved to $73.6 million from $2.4 million in 2021.
- Net sales increased by 1.5% in 2022 compared to 2021, primarily due to higher average sales prices and increased production.
- TPI expects 2023 net sales between $1.6 billion and $1.7 billion, indicating growth potential.
- Improved adjusted EBITDA margin in 2022 at 4.2%, up from 0.1% in 2021.
- Net loss attributable to common stockholders was $124.2 million for 2022, although it improved from $165.6 million in 2021.
- Blade volume is expected to decrease slightly in 2023 due to the shutdown of operations in China.
- Supply chain issues and inflationary pressures continue to pose challenges to the business.
SCOTTSDALE, Ariz., Feb. 22, 2023 (GLOBE NEWSWIRE) -- TPI Composites, Inc. (Nasdaq: TPIC), today reported financial results for the fourth quarter and full year ended December 31, 2022.
“We finished 2022 strong and I am proud of our team for the results TPI delivered in a very challenging operating environment,” said Bill Siwek, President and CEO of TPI Composites. “Recently announced partnerships and long-term strategic agreements with key customers such as Vestas, GE, Nordex and ENERCON further solidify the importance of TPI in the wind ecosystem for many years to come.”
“While we continue to see some inflationary headwinds for the entire industry along with persistent permitting and transmission challenges, we believe we are positioned for success in 2023 and stand ready to serve our customers' capacity needs as demand begins accelerating again. Even though we are still waiting for formal implementation guidance to the Inflation Reduction Act, we are already seeing signs of demand coming back in the United States fueled by the expected benefits of this legislation. Blade volume will be down slightly in 2023 as we have ceased operations in China, however, we expect to deliver year-over-year sales growth in the high single to low double-digits in 2023 from the rest of our global footprint.”
“The future for TPI is bright. We are focused on mitigating near-term macro challenges and continue to make necessary operational changes to improve efficiency and profitability. This, with the addition of supportive policy both in the United States and the EU, provides optimism for TPI and the wind industry. At reasonable utilization levels, we expect to eclipse
2022 and Recent Business Highlights
- Adjusted EBITDA from continuing and discontinued operations for the year ended December 31, 2022, totaled
$73.6 million and for the three months ended December 31, 2022, totaled$40.8 million . - Net loss attributable to common stockholders was
$124.2 million for the year ended December 31, 2022, and$57.8 million for the three months ended December 31, 2022. The net loss attributable to common stockholders includes$58.9 million and$15.2 million of preferred stock dividends and accretion in 2022 and for the three months ended December 31, 2022, respectively. - Extended our supply agreement with ENERCON in Türkiye through 2025.
- Extended supply agreements with GE Renewable Energy (GE) through 2025 in Mexico and exploring additional capacity options.
- Signed an agreement with GE which enabled a long-term lease extension of the manufacturing facility in Newton, Iowa, with expectations to begin production beginning in 2024 and committed to collaboration with GE on their next generation blade types.
- Agreed to a long-term global partner framework agreement with Vestas.
- Agreed in principle with Nordex to extend 4 lines in Türkiye through 2026 (with two other lines to be extended through 2024) and add two additional lines in India.
- Collaborated with WindSTAR to design a composite manufacturing process based on a digital twin approach.
| KPIs from continuing and discontinued operations | 4Q’22 | 4Q’21 | FY’22 | FY’21 | ||||||
| Sets1 | 811 | 768 | 2,936 | 3,255 | ||||||
| Estimated megawatts2 | 3,416 | 3,219 | 12,634 | 12,989 | ||||||
| Utilization3 | 87 | % | 71 | % | 79 | % | 76 | % | ||
| Dedicated manufacturing lines4 | 43 | 54 | 43 | 54 | ||||||
| Manufacturing lines installed5 | 43 | 54 | 43 | 54 | ||||||
- Number of wind blade sets (which consist of three wind blades) produced worldwide during the period.
- Estimated megawatts of energy capacity to be generated by wind blade sets produced during the period.
- Utilization represents the percentage of wind blades invoiced during the period compared to the total potential wind blade capacity of manufacturing lines installed during the period.
- Number of wind blade manufacturing lines that are dedicated to our customers under long-term supply agreements at the end of the period.
- Number of wind blade manufacturing lines installed and either in operation, startup or transition during the period.
Fourth Quarter 2022 Financial Results
In December 2022, we committed to a restructuring plan to rebalance our organization and optimize our global manufacturing footprint. Changing economic and geopolitical factors, including increased logistics costs and tariffs imposed on components of wind turbines from China, including wind blades, has had an adverse impact on demand for our wind blades manufactured in our Chinese facilities. In connection with this plan, we ceased production at our Yangzhou, China manufacturing facility as of December 31, 2022, and plan to shut down our business operations in China. Our business operations in China comprised the entirety of our Asia reporting segment. This shutdown will have a meaningful effect on our global manufacturing footprint and consolidated financial results. Accordingly, the historical results of our Asia reporting segment have been presented as discontinued operations in our Consolidated Statements of Operations and Consolidated Balance Sheets.
Net sales from continuing and discontinued operations for the three months ended December 31, 2022 totaled
Net sales from continuing operations for the three months ended December 31, 2022 increased
Net sales from discontinued operations for the three months ended December 31, 2022 increased
Net loss attributable to common stockholders was
The net loss per common share was
Adjusted EBITDA from continuing and discontinued operations for the three months ended December 31, 2022, totaled
Capital expenditures were
We ended the quarter with
Full Year 2022 Financial Results
Net sales from continuing operations and net sales from discontinued operations for the year ended December 31, 2022 totaled
Net sales from continuing operations for the year ended December 31, 2022 increased
Net sales from discontinued operations for the year ended December 31, 2022 decreased
Net loss attributable to common stockholders was
The net loss per common share was
Adjusted EBITDA from continuing and discontinued operations for the year ended December 31, 2022, totaled
Capital expenditures were
2023 Guidance
Guidance for the full year ending December 31, 2023:
| Guidance | Full Year 2023 |
| Net Sales from Continuing Operations | |
| Adjusted EBITDA Margin % from Continuing Operations | Low single-digit |
| Utilization % | |
| Capital Expenditures | Approximately |
Conference Call and Webcast Information
TPI Composites will host an investor conference call this afternoon, Wednesday, February 22nd, at 5:00 pm ET. Interested parties are invited to listen to the conference call which can be accessed live over the phone by dialing 1-877-407-9208, or for international callers, 1-201-493-6784. A replay will be available two hours 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 live call and the replay is 13735318. The replay will be available until March 1, 2023. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors section of the Company’s website at www.tpicomposites.com. The online replay will be available for a limited time beginning immediately following the call.
About TPI Composites, Inc.
TPI Composites, Inc. is a global company focused on innovative and sustainable solutions to decarbonize and electrify the world. TPI delivers high-quality, cost-effective composite solutions through long-term relationships with leading OEMs in the wind and automotive markets. TPI is headquartered in Scottsdale, Arizona and operates factories in the U.S., Mexico, Türkiye and India. TPI operates additional engineering development centers in Denmark and Germany and global service training centers in the U.S. and Spain.
Forward-Looking Statements
This release contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements, among other things, concerning: growth of the wind energy and electric vehicle markets and our addressable markets for our products and services; the impact of the COVID-19 pandemic on our business, effects on our financial statements and our financial outlook; our business strategy, including anticipated trends and developments in and management plans for our business and the wind industry and other markets in which we operate; competition; future financial results, operating results, revenues, gross margin, operating expenses, profitability, products, projected costs, warranties, our ability to improve our operating margins, and capital expenditures. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on our current expectations and our projections about future events. You should not place undue reliance on these forward-looking statements. We undertake no obligation to update any of these forward-looking statements for any reason. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed in “Risk Factors,” in our Annual Report on Form 10-K and other reports that we will file with the SEC.
Non-GAAP Definitions
This press release includes unaudited non-GAAP financial measures, including EBITDA, adjusted EBITDA, net cash (debt) and free cash flow. We define EBITDA as net income (loss) plus interest expense (including losses on the extinguishment of debt and net of interest income), income taxes and depreciation and amortization. We define adjusted EBITDA as EBITDA plus any share-based compensation expense, any foreign currency income or losses, any gains or losses on the sale of assets and asset impairments and any restructuring charges. We define net cash (debt) as the total unrestricted cash and cash equivalents less the total principal amount of debt outstanding. We define free cash flow as net cash flow from operating activities less capital expenditures. We present non-GAAP measures when we believe that the additional information is useful and meaningful to investors. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP.
We provide forward-looking statements in the form of guidance in our quarterly earnings releases and during our quarterly earnings conference calls. This guidance is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures. For example, stock-based compensation is unpredictable for our performance-based awards, which can fluctuate significantly based on current expectations of future achievement of performance-based targets. Amortization of intangible assets and restructuring costs are all impacted by the timing and size of potential future actions, which are difficult to predict. In addition, from time to time, we exclude certain items that occur infrequently, which are also inherently difficult to predict and estimate. It is also difficult to predict the tax effect of the items we exclude and to estimate certain discrete tax items, like the resolution of tax audits or changes to tax laws. As such, the costs that are being excluded from non-GAAP guidance are difficult to predict and a reconciliation or a range of results could lead to disclosure that would be imprecise or potentially misleading. Material changes to any one of the exclusions could have a significant effect on our guidance and future GAAP results.
See Table Five for a reconciliation of certain non-GAAP financial measures to the comparable GAAP measures.
Investor Relations
480-315-8742
Investors@TPIComposites.com
| TPI COMPOSITES, INC. AND SUBSIDIARIES | |||||||||||||||
| TABLE ONE - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Net sales | $ | 402,276 | $ | 349,179 | $ | 1,522,741 | $ | 1,472,386 | |||||||
| Cost of sales | 383,060 | 367,288 | 1,482,428 | 1,459,155 | |||||||||||
| Startup and transition costs | 3,251 | 11,838 | 25,668 | 50,832 | |||||||||||
| Total cost of goods sold | 386,311 | 379,126 | 1,508,096 | 1,509,987 | |||||||||||
| Gross profit (loss) | 15,965 | (29,947 | ) | 14,645 | (37,601 | ) | |||||||||
| General and administrative expenses | 9,771 | 5,427 | 32,349 | 29,246 | |||||||||||
| Loss on sale of assets and asset impairments | 3,700 | 2,966 | 9,842 | 12,436 | |||||||||||
| Restructuring charges, net | 653 | 11,457 | 263 | 12,543 | |||||||||||
| Income (loss) from continuing operations | 1,841 | (49,797 | ) | (27,809 | ) | (91,826 | ) | ||||||||
| Other income (expense): | |||||||||||||||
| Interest expense, net | (2,157 | ) | (5,567 | ) | (5,029 | ) | (13,644 | ) | |||||||
| Foreign currency income (loss) | (9,735 | ) | (16,279 | ) | 4,571 | (21,970 | ) | ||||||||
| Miscellaneous income | 1,333 | 299 | 2,330 | 1,372 | |||||||||||
| Total other income (expense) | (10,559 | ) | (21,547 | ) | 1,872 | (34,242 | ) | ||||||||
| Loss before income taxes | (8,718 | ) | (71,344 | ) | (25,937 | ) | (126,068 | ) | |||||||
| Income tax provision | (17,935 | ) | (4,897 | ) | (29,613 | ) | (29,826 | ) | |||||||
| Net loss from continuing operations | (26,653 | ) | (76,241 | ) | (55,550 | ) | (155,894 | ) | |||||||
| Preferred stock dividends and accretion | (15,245 | ) | (6,040 | ) | (58,903 | ) | (6,040 | ) | |||||||
| Net loss from continuing operations attributable to common stockholders | (41,898 | ) | (82,281 | ) | (114,453 | ) | (161,934 | ) | |||||||
| Net loss from discontinued operations | (15,875 | ) | (11,036 | ) | (9,755 | ) | (3,654 | ) | |||||||
| Net loss attributable to common stockholders | $ | (57,773 | ) | $ | (93,317 | ) | $ | (124,208 | ) | $ | (165,588 | ) | |||
| Weighted-average common shares outstanding: | |||||||||||||||
| Basic | 41,983 | 39,101 | 41,959 | 37,415 | |||||||||||
| Diluted | 41,983 | 39,101 | 41,959 | 37,415 | |||||||||||
| Net loss from continuing operations per common share: | |||||||||||||||
| Basic | $ | (1.00 | ) | $ | (2.10 | ) | $ | (2.73 | ) | $ | (4.33 | ) | |||
| Diluted | $ | (1.00 | ) | $ | (2.10 | ) | $ | (2.73 | ) | $ | (4.33 | ) | |||
| Net loss from discontinued operations per common share: | |||||||||||||||
| Basic | $ | (0.38 | ) | $ | (0.29 | ) | $ | (0.23 | ) | $ | (0.10 | ) | |||
| Diluted | $ | (0.38 | ) | $ | (0.29 | ) | $ | (0.23 | ) | $ | (0.10 | ) | |||
| Net loss per common share: | |||||||||||||||
| Basic | $ | (1.38 | ) | $ | (2.39 | ) | $ | (2.96 | ) | $ | (4.43 | ) | |||
| Diluted | $ | (1.38 | ) | $ | (2.39 | ) | $ | (2.96 | ) | $ | (4.43 | ) | |||
| Non-GAAP Measures (unaudited): | |||||||||||||||
| EBITDA from continuing operations | $ | 2,881 | $ | (55,043 | ) | $ | 17,864 | $ | (74,818 | ) | |||||
| Adjusted EBITDA from continuing operations | $ | 21,151 | $ | (23,322 | ) | $ | 37,857 | $ | (20,055 | ) | |||||
| TPI COMPOSITES, INC. AND SUBSIDIARIES | ||||||||||||||
| TABLE TWO - COMPONENTS OF NET LOSS FROM DISCONTINUED OPERATIONS | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| (in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net sales | $ | 59,544 | $ | 40,284 | $ | 235,588 | $ | 260,197 | ||||||
| Cost of sales | 42,239 | 50,383 | 200,701 | 254,176 | ||||||||||
| Startup and transition costs | - | - | 7,994 | - | ||||||||||
| Total cost of goods sold | 42,239 | 50,383 | 208,695 | 254,176 | ||||||||||
| Gross profit (loss) | 17,305 | (10,099 | ) | 26,893 | 6,021 | |||||||||
| Loss on sale of assets and asset impairments | 16,579 | 146 | 17,530 | 674 | ||||||||||
| Restructuring charges, net | 17,469 | 8,429 | 20,175 | 11,219 | ||||||||||
| Loss from discontinued operations | (16,743 | ) | (18,674 | ) | (10,812 | ) | (5,872 | ) | ||||||
| Other income (expense): | ||||||||||||||
| Interest income, net | 106 | 2 | 147 | 22 | ||||||||||
| Foreign currency income (loss) | (1,525 | ) | (1,119 | ) | 5,627 | (1,701 | ) | |||||||
| Miscellaneous income | 350 | 582 | 1,477 | 831 | ||||||||||
| Total other income (expense) | (1,069 | ) | (535 | ) | 7,251 | (848 | ) | |||||||
| Loss before income taxes | (17,812 | ) | (19,209 | ) | (3,561 | ) | (6,720 | ) | ||||||
| Income tax provision | 1,937 | 8,173 | (6,194 | ) | 3,066 | |||||||||
| Net income (loss) from discontinued operations | $ | (15,875 | ) | $ | (11,036 | ) | $ | (9,755 | ) | $ | (3,654 | ) | ||
| Weighted-average common shares outstanding: | ||||||||||||||
| Basic | 41,983 | 39,101 | 41,959 | 37,415 | ||||||||||
| Diluted | 41,983 | 39,101 | 41,959 | 37,415 | ||||||||||
| Net loss from discontinued operations per common share: | ||||||||||||||
| Basic | $ | (0.38 | ) | $ | (0.29 | ) | $ | (0.23 | ) | $ | (0.10 | ) | ||
| Diluted | $ | (0.38 | ) | $ | (0.29 | ) | $ | (0.23 | ) | $ | (0.10 | ) | ||
| Non-GAAP Measures (unaudited): | ||||||||||||||
| EBITDA from discontinued operations | (16,054 | ) | (14,751 | ) | 3,001 | 8,245 | ||||||||
| Adjusted EBITDA from discontinued operations | 19,636 | (4,935 | ) | 35,700 | 22,432 | |||||||||
| TPI COMPOSITES, INC. AND SUBSIDIARIES | ||||
| TABLE THREE - CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (UNAUDITED) | ||||
| December 31, | December 31, | |||
| (in thousands) | 2022 | 2021 | ||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 133,546 | $ | 216,236 |
| Restricted cash | 9,854 | 10,053 | ||
| Accounts receivable | 184,809 | 152,992 | ||
| Contract assets | 215,939 | 161,030 | ||
| Prepaid expenses | 29,119 | 14,552 | ||
| Other current assets | 26,052 | 22,017 | ||
| Inventories | 10,661 | 10,152 | ||
| Current assets of discontinued operations | 35,182 | 73,239 | ||
| Total current assets | 645,162 | 660,271 | ||
| Noncurrent assets: | ||||
| Property, plant, and equipment, net | 136,841 | 142,613 | ||
| Operating lease right of use assets | 152,312 | 129,203 | ||
| Other noncurrent assets | 27,861 | 29,287 | ||
| Noncurrent assets of discontinued operations | - | 46,327 | ||
| Total assets | $ | 962,176 | $ | 1,007,701 |
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ | 280,499 | $ | 283,536 |
| Accrued warranty | 22,347 | 42,020 | ||
| Current maturities of long-term debt | 59,975 | 66,438 | ||
| Current operating lease liabilities | 22,220 | 22,275 | ||
| Contract liabilities | 17,100 | 1,274 | ||
| Current liabilities of discontinued operations | 54,440 | 53,567 | ||
| Total current liabilities | 456,581 | 469,110 | ||
| Noncurrent liabilities: | ||||
| Long-term debt, net of current maturities | 1,198 | 8,208 | ||
| Noncurrent operating lease liabilities | 133,363 | 136,613 | ||
| Other noncurrent liabilities | 10,670 | 10,615 | ||
| Noncurrent liabilities of discontinued operations | - | 10,229 | ||
| Total liabilities | 601,812 | 634,775 | ||
| Total mezzanine equity | 309,877 | 250,974 | ||
| Total stockholders' equity | 50,487 | 121,952 | ||
| Total liabilities and stockholders' equity | $ | 962,176 | $ | 1,007,701 |
| Non-GAAP Measure (unaudited): | ||||
| Net cash | $ | 82,042 | $ | 167,519 |
| TPI COMPOSITES, INC. AND SUBSIDIARIES | ||||||||||||||||
| TABLE FOUR - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 22,823 | $ | 2,716 | $ | (62,272 | ) | $ | (25,525 | ) | ||||||
| Net cash used in investing activities | (7,340 | ) | (6,981 | ) | (18,832 | ) | (37,119 | ) | ||||||||
| Net cash provided by (used in) financing activities | (1,732 | ) | 150,639 | (14,597 | ) | 198,919 | ||||||||||
| Impact of foreign exchange rates on cash, cash equivalents and restricted cash | 359 | (13,314 | ) | (3,448 | ) | (14,253 | ) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 138,959 | 119,158 | 252,218 | 130,196 | ||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 153,069 | $ | 252,218 | $ | 153,069 | $ | 252,218 | ||||||||
| Cash and cash equivalents | 133,546 | 216,236 | ||||||||||||||
| Restricted cash | 9,854 | 10,053 | ||||||||||||||
| Cash and cash equivalents of discontinued operations | 9,669 | 25,929 | ||||||||||||||
| Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows, end of period | $ | 153,069 | $ | 252,218 | ||||||||||||
| Non-GAAP Measure (unaudited): | ||||||||||||||||
| Free cash flow | $ | 15,483 | $ | (4,265 | ) | $ | (81,104 | ) | $ | (62,644 | ) | |||||
| TPI COMPOSITES, INC. AND SUBSIDIARIES | |||||
| TABLE FIVE - RECONCILIATION OF NON-GAAP MEASURES | |||||
| (UNAUDITED) |
| EBITDA and adjusted EBITDA from continuing operations are reconciled as follows: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||
| Net loss attributable to common stockholders | $ | (57,773 | ) | $ | (93,317 | ) | $ | (124,208 | ) | $ | (165,588 | ) | |
| Net loss (income) from discontinued operations | 15,875 | 11,036 | 9,755 | 3,654 | |||||||||
| Net loss from continuing operations attributable to common stockholders | (41,898 | ) | (82,281 | ) | (114,453 | ) | (161,934 | ) | |||||
| Preferred stock dividends and accretion | 15,245 | 6,040 | 58,903 | 6,040 | |||||||||
| Net loss from continuing operations | (26,653 | ) | (76,241 | ) | (55,550 | ) | (155,894 | ) | |||||
| Adjustments: | |||||||||||||
| Depreciation and amortization | 9,442 | 10,734 | 38,772 | 37,606 | |||||||||
| Interest expense, net | 2,157 | 5,567 | 5,029 | 13,644 | |||||||||
| Income tax provision | 17,935 | 4,897 | 29,613 | 29,826 | |||||||||
| EBITDA from continuing operations | 2,881 | (55,043 | ) | 17,864 | (74,818 | ) | |||||||
| Share-based compensation expense | 4,182 | 1,019 | 14,459 | 7,814 | |||||||||
| Foreign currency loss (income), net | 9,735 | 16,279 | (4,571 | ) | 21,970 | ||||||||
| Loss on sale of assets and asset impairments | 3,700 | 2,966 | 9,842 | 12,436 | |||||||||
| Restructuring charges, net | 653 | 11,457 | 263 | 12,543 | |||||||||
| Adjusted EBITDA from continuing operations | $ | 21,151 | $ | (23,322 | ) | $ | 37,857 | $ | (20,055 | ) | |||
| EBITDA and adjusted EBITDA from discontinued operations are reconciled as follows: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||
| Net loss from discontinued operations | $ | (15,875 | ) | $ | (11,036 | ) | $ | (9,755 | ) | $ | (3,654 | ) | |
| Adjustments: | |||||||||||||
| Depreciation and amortization | 1,864 | 4,460 | 6,709 | 14,987 | |||||||||
| Interest expense (income), net | (106 | ) | (2 | ) | (147 | ) | (22 | ) | |||||
| Income tax provision (benefit) | (1,937 | ) | (8,173 | ) | 6,194 | (3,066 | ) | ||||||
| EBITDA from discontinued operations | (16,054 | ) | (14,751 | ) | 3,001 | 8,245 | |||||||
| Share-based compensation expense | 117 | 122 | 621 | 593 | |||||||||
| Foreign currency loss (income), net | 1,525 | 1,119 | (5,627 | ) | 1,701 | ||||||||
| Loss on sale of assets and asset impairments | 16,579 | 146 | 17,530 | 674 | |||||||||
| Restructuring charges, net | 17,469 | 8,429 | 20,175 | 11,219 | |||||||||
| Adjusted EBITDA from discontinued operations | $ | 19,636 | $ | (4,935 | ) | $ | 35,700 | $ | 22,432 | ||||
| Adjusted EBITDA from continuing and discontinued operations | $ | 40,787 | $ | (28,257 | ) | $ | 73,557 | $ | 2,377 | ||||
| Free cash flow is reconciled as follows: | Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||
| Net cash provided by (used in) operating activities | $ | 22,823 | $ | 2,716 | $ | (62,272 | ) | $ | (25,525 | ) | |||
| Capital expenditures | (7,340 | ) | (6,981 | ) | (18,832 | ) | (37,119 | ) | |||||
| Free cash flow | $ | 15,483 | $ | (4,265 | ) | $ | (81,104 | ) | $ | (62,644 | ) | ||
| Free cash flow from discontinued operations is reconciled as follows: | Year Ended December 31, | ||||||||||||
| (in thousands) | 2022 | 2021 | |||||||||||
| Net cash used in operating activities from discontinued operations | $ | (12,677 | ) | $ | (19,469 | ) | |||||||
| Capital expenditures of discontinued operations | (2,101 | ) | (2,583 | ) | |||||||||
| Free cash flow from discontinued operations | $ | (14,778 | ) | $ | (22,052 | ) | |||||||
| Net cash is reconciled as follows: | December 31, | ||||||||||||
| (in thousands) | 2022 | 2021 | |||||||||||
| Cash and cash equivalents | $ | 133,546 | $ | 216,236 | |||||||||
| Cash and cash equivalents of discontinued operations | 9,669 | 25,929 | |||||||||||
| Less total debt, net of debt issuance costs | (61,173 | ) | (74,646 | ) | |||||||||
| Net cash | $ | 82,042 | $ | 167,519 | |||||||||
FAQ
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