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Tower International Reports Solid Fourth Quarter Results, Planned Sale of Two China JVs, and Major OEM Outsourcing Award

LIVONIA, Mich., Feb. 12, 2015 /PRNewswire/ -- Tower International, Inc. (NYSE: TOWR), a leading integrated global manufacturer of engineered automotive structural metal components and assemblies, today announced fourth quarter 2014 results, provided a preliminary outlook for 2015, and discussed related business developments. 

To facilitate comparisons with prior guidance, the following financial results for fourth quarter 2014 are presented on a non-GAAP basis to include two China joint ventures that were held for sale as of year-end 2014 and are being accounted for as discontinued operations; a reconciliation to results for continuing operations is provided in the attached financial tables.

  • Revenue for the fourth quarter was $534 million, up 3 percent from $517 million in the fourth quarter 2013.
  • Adjusted EBITDA for the quarter was $55.5 million, up 12 percent from $49.6 million a year ago. The improvement primarily reflected favorable net cost performance.
  • Excluding certain items in the fourth quarter 2014, as detailed below, and comparable items in the fourth quarter of 2013, diluted adjusted earnings per share were $0.84 per share, up 87 percent.

On a GAAP basis (excluding the China joint ventures held for sale), fourth quarter 2014 results included revenue of $502 million and a net loss of $21 million, which was more than explained by a projected non-cash book loss of $23 million from the planned sale of one of the joint ventures.  An anticipated book gain of $18 million from the sale of the other joint venture will be recognized when the sale closes.

Tower has reached preliminary agreement to sell one of its China joint ventures, subject to Chinese government approval, with closing expected mid-year 2015.  The Company also is in early-stage discussions to sell a second China JV.  In 2014, these joint ventures together provided consolidated Tower revenue of $114 million, adjusted EBITDA of $15 million, and diluted adjusted earnings per share of 21 cents; these results were down from 2013.  The projected enterprise value to be received from the planned sales is about $95 million, or about 6.3 times 2014 adjusted EBITDA.

The preliminary outlook for 2015 and comparisons with 2014 discussed below are for continuing operations (excluding the China JVs held for sale).

  • The preliminary revenue outlook for 2015 is $2 billion, compared with $2.068 billion in 2014; the projected decline is more than explained by currency translation, including an assumed average value for the Euro of $1.12. At constant exchange rates and excluding the previously disclosed sale of a plant in Italy, this reflects organic revenue growth of 5% in 2015, on top of 6% organic growth (at constant exchange) in 2014.
  • Adjusted EBITDA in 2015 is projected at about $200 million (or about $215 million at 2014 exchange rates), compared with $204 million in 2014.
  • Despite the currency translation headwinds, Tower's anticipated 2015 diluted adjusted earnings per share of $3.10 are up from $3.02 in 2014. At constant exchange, 2015 earnings would be projected at $3.60.
  • Adjusted free cash flow is projected at $60 million in 2015. This would represent about an 11% yield relative to Tower's present stock market value.
  • Achievement of Tower's present financial plans for 2015 would reduce year-end net debt to about $240 million and leverage to about 1.2 times adjusted EBITDA, each being a major improvement of about one-third from year-end 2014.

In other business developments:

  • Tower has won a major new business award to support OEM outsourcing in the U.S. This award, with start of production in 2017, plus assumed future awards of planned follow-on models are projected to represent approximately $100 million of annual revenue when fully launched in 2019. We consider this significant award to be meaningful validation of an anticipated OEM trend and a positive indicator of Tower's competitiveness and prospects for future profitable organic growth.
  • Tower achieved record quality performance in 2014 of only 11 customer-reported defects per million parts. We believe this is world-class quality and is a meaningful contributor to Tower's organic growth achievements and future prospects.
  • Last month, Tower re-couponed its Euro debt swap (which was initiated last October), resulting in a cash gain of $22 million and a reduction in the fixed interest rate from 4.0% to 3.7%. This Euro debt swap, which matures in 2020, provides an ongoing partial enterprise-value hedge against Euro currency translation relative to the dollar.

"2014 was another year of Tower delivering on its commitments.  Despite the markets in Brazil and Europe not living up to initial expectations, our team found a way to get it done," said President and CEO Mark Malcolm.  "We will not waver in taking actions intended to strengthen our capabilities and outlook, as evidenced by the planned China transactions, which we expect to further demonstrate that the sum value of Tower's regional businesses far surpasses the company's present stock-price valuation.  For those focused mainly on the near term, Tower is projecting for 2015 what we believe is sector-leading, double-digit free cash flow yield.  And for those also focused on longer-term prospects, our world-class quality and the recent OEM outsourcing award signal what we believe will be a bright future of profitable growth prospects for Tower."

Tower to Host Conference Call Today at 1 p.m. EST

Tower will discuss its fourth quarter 2014 results, preliminary outlooks for 2015, and other related matters in a conference call at 1 p.m. EST today.  Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company's website or by telephone.  The slide presentation and webcast can be accessed via the investor relations portion of Tower's website www.towerinternational.com

To dial into the conference call, domestic callers should dial (866) 393-4576, international callers should dial (706) 679-1462.  An audio recording of the call will be available approximately two hours after the completion of the call.  To access this recording, please dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and reference Conference I.D. #81864636.  A webcast replay will also be available and may be accessed via Tower's website.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures: "adjusted EBITDA", "adjusted EBITDA margin", "adjusted earnings per Share (EPS)", "free cash flow", "adjusted free cash flow", and "net debt."  We define adjusted EBITDA as net income / (loss) before interest, taxes, depreciation, amortization, restructuring items and other adjustments described in the reconciliations provided in this presentation.  Adjusted EBITDA margin represents adjusted EBITDA divided by revenues.  Adjusted earnings per share exclude certain income and expense items described in the reconciliation provided in this presentation.  Free cash flow is defined as cash provided by operating activities less cash disbursed for purchases of property, plant and equipment.  Adjusted free cash flow is free cash flow excluding cash received or disbursed for customer tooling.  Net debt represents total debt less cash and cash equivalents.  We use adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, free cash flow, adjusted free cash flow and net debt 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 above are not measures of performance under GAAP.  These measures should not be considered as alternatives for 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 in our industry; 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 expense 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.

For purposes of comparability, we have also provided certain non-GAAP measures presenting results of operations as if our discontinued Chinese joint ventures were continuing operations.  This analysis assists us, and we believe will assist investors in assessing our prior guidance.  Reconciliations provided below reflect all adjustments made from GAAP results to reflect this presentation.

Forward-Looking Statements and Risk Factors

This press release contains statements which constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company's projected revenue, adjusted EBITDA, diluted adjusted earnings per share, adjusted free cash flow and statements regarding new sources of profitable growth, future financial results and the Company's future business outlook. The forward-looking statements can be identified by words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "project," "target," and other similar expressions.  Forward-looking statements are made as of the date of this press release and are based upon management's current expectations and beliefs concerning future developments and their potential effects on us.  Such forward-looking statements are not guarantees of future performance.  The following important factors, as well as risk factors described in our reports filed with the SEC, could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements:

  • global automobile production volumes;
  • the financial condition of our customers and suppliers;
  • our ability to make scheduled payments of principal or interest on our indebtedness and comply with the covenants and restrictions contained in the instruments governing our indebtedness;
  • our ability to refinance our indebtedness;
  • risks associated with our non-U.S. operations, including foreign exchange risks and economic uncertainty in some regions;
  • any increase in the expense and funding requirements of our pension and other postretirement benefits;
  • our customers' ability to obtain equity and debt financing for their businesses;
  • our dependence on our largest customers;
  • pricing pressure from our customers;
  • work stoppages or other labor issues affecting us or our customers or suppliers;
  • our ability to integrate acquired businesses;
  • risks associated with business divestitures; and
  • costs or liabilities relating to environmental and safety regulations.

We do not assume any obligation to update or revise the forward-looking statements contained in this press release.

Contact:
Derek Fiebig
Executive Director, Investor & External Relations
(248) 675-6457
fiebig.derek@towerinternational.com

 

 

TOWER INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share amounts - unaudited)





















Three Months Ended December 31,


Year Ended December 31,



2014


2013


2014


2013










Revenues


$               502,319


$               480,847


$            2,067,771


$            1,966,492

Cost of sales


449,201


424,579


1,838,578


1,736,176

  Gross profit


53,118


56,268


229,193


230,316

Selling, general, and administrative expenses


32,701


35,114


132,635


132,804

Amortization expense


-


659


1,544


2,793

Restructuring and asset impairment charges, net


6,751


2,301


14,248


21,198

   Operating income


13,666


18,194


80,766


73,521

Interest expense 


12,937


7,600


34,767


51,405

Interest income


138


233


534


739

Other expense


-


30


87


48,448

  Income / (loss) before provision / (benefit) for income taxes and equity in loss of joint venture


867


10,797


46,446


(25,593)

Provision / (benefit) for income taxes


2,143


(7,166)


9,272


178

Equity in loss of joint venture, net of tax


(25)


(185)


(651)


(558)

  Income / (loss) from continuing operations


(1,301)


17,778


36,523


(26,329)

Income / (loss) from discontinued operations, net of tax


(16,742)


2,756


(9,436)


10,265

        Net income / (loss)


(18,043)


20,534


27,087


(16,064)

    Less: Net income attributable to the noncontrolling interests


2,553


1,564


5,571


4,211

  Net income / (loss) attributable to Tower International, Inc.


$               (20,596)


$                 18,970


$                 21,516


$               (20,275)










Weighted average basic shares outstanding


20,751,634


20,471,819


20,662,425


20,387,168

Weighted average diluted shares outstanding


20,751,634


21,164,188


21,391,000


20,387,168










Basic income / (loss) per share attributable to Tower International, Inc.:








Income / (loss) per share from continuing operations


$                   (0.19)


$                     0.79


$                     1.50


$                   (1.50)

Income / (loss) per share from discontinued operations


(0.81)


0.13


(0.46)


0.50

Income / (loss) per share 


(0.99)


0.93


1.04


(0.99)










Diluted income / (loss) per share attributable to Tower International, Inc.:








Income / (loss) per share from continuing operations


$                   (0.19)


$                     0.77


$                     1.45


$                   (1.50)

Income / (loss) per share from discontinued operations


(0.81)


0.13


(0.44)


0.50

Income / (loss) per share


(0.99)


0.90


1.01


(0.99)

 

 

 



TOWER INTERNATIONAL, INC. AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF OPERATIONS



AND CERTAIN NON-GAAP INFORMATION



(Amounts in thousands, except per share amounts - unaudited)














Three Months Ended December 31, 2014





Including Discontinued Operations (Non-GAAP)


Discontinued Operations Adjustments (a)


Continuing Operations (GAAP)










Revenues


$            533,886


$              31,567


$            502,319

Cost of sales


476,316


27,115


449,201


Gross profit


57,570


4,452


53,118

Selling, general, and administrative expenses


32,814


113


32,701

Amortization expense


-


-


-

Restructuring and asset impairment charges, net


26,607


19,856


6,751


  Operating income / (loss)


(1,851)


(15,517)


13,666

Interest expense 


13,027


90


12,937

Interest income


341


203


138

Other expense


-


-


-


Income / (loss) before benefit for income taxes and equity in loss of joint venture


(14,537)


(15,404)


867

Benefit for income taxes


3,481


1,338


2,143

Equity in loss of joint venture, net of tax


(25)


-


(25)


Loss from continuing operations


(18,043)


(16,742)


(1,301)

Loss from discontinued operations, net of tax


-


-


(16,742)



        Net loss


(18,043)


(16,742)


(18,043)



   Less: Net income attributable to the noncontrolling interests


2,553


2,290


2,553



Net loss attributable to Tower International, Inc.


$            (20,596)


$            (19,032)


$            (20,596)



















CERTAIN NON-GAAP FINANCIAL INFORMATION







Diluted adjusted earnings per share


$                  0.84


$                  0.10


$                  0.74










Adjusted EBITDA


$              55,447


$                6,671


$              48,776










Adjusted Free Cash Flow


$              22,355


$                   979


$              21,376



















(a)  These adjustments remove all previously reported balances related to the discontinued operations.  Adjustment to remove the net income attributable to the noncontrolling interests of the discontinued operations is not required in accordance with generally accepted accounting principles.

 

 

 



TOWER INTERNATIONAL, INC. AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF OPERATIONS



AND CERTAIN NON-GAAP INFORMATION



(Amounts in thousands, except per share amounts - unaudited)














Three Months Ended December 31, 2013





Including Discontinued Operations (Non-GAAP)


Discontinued Operations Adjustments (a)


Continuing Operations (GAAP)










Revenues


$            516,804


$              35,957


$            480,847

Cost of sales


456,840


32,261


424,579


Gross profit


59,964


3,696


56,268

Selling, general, and administrative expenses


35,353


239


35,114

Amortization expense


659


-


659

Restructuring and asset impairment charges, net


2,301


-


2,301


  Operating income


21,651


3,457


18,194

Interest expense 


7,693


93


7,600

Interest income


311


78


233

Other expense


30


-


30


Income before provision / (benefit) for income taxes and equity in loss of joint venture


14,239


3,442


10,797

Provision / (benefit) for income taxes


(6,480)


686


(7,166)

Equity in loss of joint venture, net of tax


(185)


-


(185)


Income from continuing operations


20,534


2,756


17,778

Income from discontinued operations, net of tax


-


-


2,756



        Net loss


20,534


2,756


20,534



   Less: Net income attributable to the noncontrolling interests


1,564


968


1,564



Net income attributable to Tower International, Inc.


$              18,970


$                1,788


$              18,970



















CERTAIN NON-GAAP FINANCIAL INFORMATION







Diluted adjusted earnings per share


$                  0.45


$                  0.08


$                  0.37










Adjusted EBITDA


$              49,601


$                5,037


$              44,564










Adjusted Free Cash Flow


$              23,045


$                5,441


$              17,604



















(a)  These adjustments remove all previously reported balances related to the discontinued operations.  Adjustment to remove the net income attributable to the noncontrolling interests of the discontinued operations is not required in accordance with generally accepted accounting principles.

 

 

 



TOWER INTERNATIONAL, INC. AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF OPERATIONS



AND CERTAIN NON-GAAP INFORMATION



(Amounts in thousands, except per share amounts - unaudited)














Year Ended December 31, 2014





Including Discontinued Operations (Non-GAAP)


Discontinued Operations Adjustments (a)


Continuing Operations (GAAP)










Revenues


$         2,181,472


$            113,701


$         2,067,771

Cost of sales


1,945,000


106,422


1,838,578


Gross profit


236,472


7,279


229,193

Selling, general, and administrative expenses


133,308


673


132,635

Amortization expense


1,544


-


1,544

Restructuring and asset impairment charges, net


34,104


19,856


14,248


  Operating income / (loss)


67,516


(13,250)


80,766

Interest expense 


35,037


270


34,767

Interest income


1,287


753


534

Other expense / (income)


(5,462)


(5,549)


87


Income / (loss) before provision for income taxes and equity in loss of joint venture


39,228


(7,218)


46,446

Provision for income taxes


11,490


2,218


9,272

Equity in loss of joint venture, net of tax


(651)


-


(651)


Income / (loss) from continuing operations


27,087


(9,436)


36,523

Loss from discontinued operations, net of tax


-


-


(9,436)



        Net income / (loss)


27,087


(9,436)


27,087



   Less: Net income attributable to the noncontrolling interests


5,571


4,555


5,571



Net income / (loss) attributable to Tower International, Inc.


$              21,516


$            (13,991)


$              21,516



















CERTAIN NON-GAAP FINANCIAL INFORMATION







Diluted adjusted earnings per share


$                  3.23


$                  0.21


$                  3.02










Adjusted EBITDA


$            219,167


$              14,985


$            204,182










Adjusted Free Cash Flow


$              34,082


$              14,575


$              19,507



















(a)  These adjustments remove all previously reported balances related to the discontinued operations.  Adjustment to remove the net income attributable to the noncontrolling interests of the discontinued operations is not required in accordance with generally accepted accounting principles.

 

 

 



TOWER INTERNATIONAL, INC. AND SUBSIDIARIES



CONSOLIDATED STATEMENTS OF OPERATIONS



AND CERTAIN NON-GAAP INFORMATION



(Amounts in thousands, except per share amounts - unaudited)














Year Ended December 31, 2013





Including Discontinued Operations (Non-GAAP)


Discontinued Operations Adjustments (a)


Continuing Operations (GAAP)










Revenues


$         2,102,019


$            135,527


$         1,966,492

Cost of sales


1,858,553


122,377


1,736,176


Gross profit


243,466


13,150


230,316

Selling, general, and administrative expenses


133,588


784


132,804

Amortization expense


2,793


-


2,793

Restructuring and asset impairment charges, net


21,207


9


21,198


  Operating income


85,878


12,357


73,521

Interest expense 


52,068


663


51,405

Interest income


1,209


470


739

Other expense


48,448


-


48,448


Income / (loss) before provision for income taxes and equity in loss of joint venture


(13,429)


12,164


(25,593)

Provision for income taxes


2,077


1,899


178

Equity in loss of joint venture, net of tax


(558)


-


(558)


Income / (loss) from continuing operations


(16,064)


10,265


(26,329)

Income from discontinued operations, net of tax


-


-


10,265



        Net income / (loss)


(16,064)


10,265


(16,064)



   Less: Net income attributable to the noncontrolling interests


4,211


3,440


4,211



Net income / (loss) attributable to Tower International, Inc.


$            (20,275)


$                6,825


$            (20,275)



















CERTAIN NON-GAAP FINANCIAL INFORMATION







Diluted adjusted earnings per share


$                  2.28


$                  0.32


$                  1.96










Adjusted EBITDA


$            212,294


$              18,366


$            193,928










Adjusted Free Cash Flow


$              35,448


$                1,159


$              34,289



















(a)  These adjustments remove all previously reported balances related to the discontinued operations.  Adjustment to remove the net income attributable to the noncontrolling interests of the discontinued operations is not required in accordance with generally accepted accounting principles.

 

 

 

TOWER INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS 

(Amounts in thousands, except share data - unaudited)













December 31, 2014


December 31, 2013






ASSETS





Cash and cash equivalents


$                           148,561


$                         134,880

Accounts receivable, net of allowance of $1,181 and $2,071


230,377


255,674

Inventories


69,775


81,278

Deferred tax asset - current


6,900


8,649

Assets held for sale


141,295


-

Prepaid tooling, notes receivable, and other


41,986


44,896

Total current assets


638,894


525,377






Property, plant, and equipment, net


451,126


549,605

Goodwill


56,691


66,976

Investment in joint venture


7,752


8,624

Deferred tax asset - non-current


3,608


3,732

Other assets, net


24,845


28,679

Total assets


$                        1,182,916


$                      1,182,993






LIABILITIES AND EQUITY





Short-term debt and current maturities of capital lease obligations


$                             31,139


$                           39,704

Accounts payable 


257,011


262,425

Accrued liabilities


105,772


129,167

Liabilities held for sale


67,707


-

Total current liabilities


461,629


431,296






Long-term debt, net of current maturities


457,179


454,073

Obligations under capital leases, net of current maturities


7,740


10,013

Deferred tax liability - non-current


12,972


14,381

Pension liability


68,637


54,915

Other non-current liabilities


74,981


81,446

Total non-current liabilities 


621,509


614,828

  Total liabilities


1,083,138


1,046,124






Stockholders' equity:





Tower International, Inc.'s stockholders' equity





Preferred stock, $0.01 par value, 50,000,000 authorized and 0 issued and outstanding


-


-


Common stock, $0.01 par value, 350,000,000 authorized, 21,393,592 issued and 20,752,226 outstanding at December 31, 2014 and 21,079,027 issued and 20,472,637 outstanding at December 31, 2013


214


211

Additional paid in capital


335,338


327,998

Treasury stock, at cost, 641,366 and 606,390 shares as of December 31, 2014 and December 31, 2013


(9,516)


(8,594)

Accumulated deficit


(235,971)


(257,487)

Accumulated other comprehensive income / (loss)


(46,914)


12,247

Total Tower International, Inc.'s stockholders' equity


43,151


74,375

Noncontrolling interests in subsidiaries


56,627


62,494

Total stockholders' equity


99,778


136,869






Total liabilities and stockholders' equity


$                        1,182,916


$                      1,182,993

 

 

 

TOWER INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands - unaudited)





















Three Months Ended December 31,


Year Ended December 31,



2014


2013


2014


2013










OPERATING ACTIVITIES:









Net income / (loss)


$              (18,043)


$               20,534


$               27,087


$              (16,064)

Less: Income / (loss) from discontinued operations, net of tax


(16,742)


2,756


(9,436)


10,265

 Income / (loss) from continuing operations


(1,301)


17,778


36,523


(26,329)










Adjustments required to reconcile income / (loss) from continuing operations to net cash provided by operating activities:









Asset impairment charges


4,558


230


4,558


11,227

Term Loan re-pricing fees


-


-


87


-

Premium on notes redemption and other fees


-


30


-


48,448

Deferred income tax benefit


(412)


(11,359)


(198)


(9,688)

Depreciation and amortization


20,692


22,324


87,241


88,838

Non-cash share-based compensation


1,146


1,083


4,712


4,743

Pension expense / (income), net of contributions


1,641


(3,777)


(11,275)


(17,131)

Change in working capital and other operating items


52,008


55,952


(9,075)


27,684

Net cash provided by continuing operating activities


$               78,332


$               82,261


$             112,573


$             127,792










INVESTING ACTIVITIES:









Cash disbursed for purchases of property, plant, and equipment, net


$              (36,094)


$              (39,661)


$              (98,440)


$              (78,034)

Net proceeds from sale of property, plant, and equipment


-


-


-


12,040

Investment in joint venture


-


-


(760)


(6,293)

Net cash used in continuing investing activities


$              (36,094)


$              (39,661)


$              (99,200)


$              (72,287)










FINANCING ACTIVITIES:









Proceeds from borrowings


$               34,222


$             101,241


$             131,313


$             547,944

Repayments of  borrowings


(39,240)


(125,629)


(154,928)


(598,457)

Proceeds from borrowings on Additional Term Loans


-


-


33,145


417,900

Debt financing costs


(1,034)


(1,441)


(3,595)


(10,878)

Redemption of notes


-


-


-


(361,992)

Premium paid on notes redemption and other fees


-


-


-


(43,078)

Premium paid on re-pricing of Term Loan Credit Facility and other fees


-


-


-


(4,318)

Secondary stock offering transaction costs


-


(754)


(75)


(814)

Proceeds from stock options exercised


21


157


2,629


2,224

Purchase of treasury stock


-


-


(922)


(297)

Noncontrolling interest dividends


(7,660)


(2,581)


(10,189)


(9,329)

Net cash used in continuing financing activities


$              (13,691)


$              (29,007)


$                (2,622)


$              (61,095)










Discontinued operations:









Net cash from discontinued operating activities


$                 1,083


$               21,320


$                 8,579


$               25,558

Net cash from discontinued investing activities


(5,445)


(5,111)


554


1,732

Net cash from discontinued financing activities


95


(3,121)


(711)


(4,491)

         Net cash from discontinued operations


$                (4,267)


$               13,088


$                 8,422


$               22,799










Effect of exchange rate changes on continuing cash and cash equivalents


$                (2,146)


$                 1,851


$                (5,492)


$                 3,728










NET CHANGE IN CASH AND CASH EQUIVALENTS


$               22,134


$               28,532


$               13,681


$               20,937










CASH AND CASH EQUIVALENTS:









Beginning of period


$             126,427


$             106,348


$             134,880


$             113,943










End of period


$             148,561


$             134,880


$             148,561


$             134,880

 

 

 

TOWER INTERNATIONAL, INC. AND SUBSIDIARIES

CERTAIN ITEMS INCLUDED IN NET INCOME

(Amounts in thousands, except per share amounts - unaudited)





















Three Months Ended


Year Ended



December 31,


December 31,



2014


2013


2014


2013










Income / (expense) items included in net income / (loss), net of tax:









Cost of sales









Commercial settlement related to 2010-13 scrap


$               -


$               -


$      (6,009)


$               -

Pension actuarial loss


(4,160)


-


(4,160)


-

Closure of Tower Defense & Aerospace


-


-


-


(4,414)

Selling, general, and administrative expenses









One-time CEO compensation awards


(671)


-


(1,555)


-

Acquisition costs and other


-


-


-


(327)

Restructuring and asset impairment charges, net









One-time restructuring actions


(1,140)


(1,195)


(2,102)


(2,219)

Severance costs in Europe*


(136)


-


(432)


-

Lease buyout of previously closed facility


-


-


(3,448)


-

Loss on sale of None, Italy facility


(2,266)


-


(2,266)


-

Goodwill impairment charge in Brazil


(2,292)


-


(2,292)


-

Other asset impairment charges


-


(230)


-


(10,935)

Facility closure


-


-


-


(3,575)

Interest expense









Mark-to-market loss on derivative financial instruments


(5,753)


-


(5,753)


-

Debt issue costs


(969)


-


(969)


-

Acceleration of the amortization of debt issue costs and OID


-


-


-


(11,342)

Other expense









Premium and other fees for re-pricing of Term Loan 


-


130


(87)


(4,410)

Secondary stock offering transaction costs


-


(160)


-


(960)

Premium on redemption of Senior Secured Notes


-


-


-


(42,470)

Breakage of Letter of Credit Facility


-


-


-


(608)

Provision / (benefit) for income taxes









Foreign subsidiary tax audit


-


-


-


2,300

Non-cash income tax benefit on gain in other comprehensive income


-


10,828


-


10,828

Discontinued operations









Income / (loss) from discontinued operations


(16,742)


2,756


(9,436)


10,265

Noncontrolling interests









Net income attributable to noncontrolling interests**


(2,290)


(968)


(4,555)


(3,440)

Total items included in net income / (loss), net of tax


$    (36,419)


$     11,161


$    (43,064)


$    (61,307)










Net income / (loss) attributable to Tower International, Inc.


$    (20,596)


$     18,970


$     21,516


$    (20,275)










Memo:  Average shares outstanding (in thousands)









Basic


20,752


20,472


20,662


20,387

Diluted


20,752


21,164


21,391


20,387










Income / (loss) per common share (GAAP)









Basic


$        (0.99)


$         0.93


$         1.04


$        (0.99)

Diluted


(0.99)


0.90


1.01


(0.99)










Diluted adjusted earnings per share (non-GAAP)***


$         0.74


$         0.37


$         3.02


$         1.96










*       Amounts are net of tax of $30K and $157K, respectively.









**      Amounts attributable to noncontrolling interests of discontinued operations.







***    Excludes the certain items shown above.  For the three months ended December 31, 2014 and the year ended December 31, 2013, diluted share counts of 21.5 million and 20.9 million, respectively, were used to calculate diluted adjusted earnings per share.

 

 

 

TOWER INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS

(Amounts in thousands - unaudited)




























Segment Data


Three Months Ended December 31,



2014


2013



Revenues


Adjusted EBITDA


Revenues


Adjusted EBITDA

International


$              195,544


$                15,069


$              208,808


$                18,048

Americas


306,775


33,707


272,039


26,516

  Consolidated


$              502,319


$                48,776


$              480,847


$                44,564












Year Ended December 31,



2014


2013



Revenues


Adjusted EBITDA


Revenues


Adjusted EBITDA

International


$              842,269


$                64,400


$              815,492


$                63,868

Americas


1,225,502


139,782


1,151,000


130,060

  Consolidated


$           2,067,771


$              204,182


$           1,966,492


$              193,928




























Adjusted EBITDA Reconciliation


Three Months Ended December 31,


Year Ended December 31,



2014


2013


2014


2013

Adjusted EBITDA


$                48,776


$                44,564


$              204,182


$              193,928

Restructuring and asset impairment charges, net


(6,751)


(2,301)


(14,248)


(21,198)

Depreciation and amortization


(20,692)


(22,324)


(87,241)


(88,838)

Acquisition costs and other


(134)


(3)


(445)


(907)

Long-term compensation expense


(3,374)


(1,742)


(11,313)


(6,630)

Interest expense, net


(12,799)


(7,367)


(34,233)


(50,666)

Other expense


-


(30)


(87)


(48,448)

Commercial settlement related to 2010 - 13 scrap


-


-


(6,009)


-

Closure of Tower Defense & Aerospace


-


-


-


(2,835)

Benefit / (provision) for income taxes


(2,143)


7,166


(9,272)


(178)

Equity in loss of joint venture, net of tax


(25)


(185)


(651)


(558)

Pension actuarial loss


(4,160)


-


(4,160)


-

Income / (loss) from discontinued operations, net of tax


(16,742)


2,756


(9,436)


10,265

Net income attributable to noncontrolling interests


(2,553)


(1,564)


(5,571)


(4,211)

  Net income / (loss) attributable to Tower International, Inc.


$              (20,596)


$                18,970


$                21,516


$              (20,275)




























Adjusted Free Cash Flow Reconciliation


Three Months Ended December 31,


Year Ended December 31,



2014


2013


2014


2013

Net cash provided by continuing operating activities


$                78,332


$                82,261


$              112,573


$              127,792

Cash disbursed for purchases of PP&E, net


(36,094)


(39,661)


(98,440)


(78,034)

  Free cash flow


42,238


42,600


14,133


49,758

Net cash provided / (disbursed) for customer-owned tooling


20,862


24,996


(5,374)


15,469

  Adjusted free cash flow


$                21,376


$                17,604


$                19,507


$                34,289




























Net Debt Reconciliation






December 31,


December 31,







2014


2013

Short-term debt and current maturities of capital lease obligations






$                31,139


$                39,704

Long-term debt, net of current maturities






457,179


454,073

Obligations under capital leases, net of current maturities






7,740


10,013

  Total debt






496,058


503,790

Less: Cash and cash equivalents






(148,561)


(134,880)

Add: Cash attributable to discontinued operations






16,025


-

  Net debt






$              363,522


$              368,910

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tower-international-reports-solid-fourth-quarter-results-planned-sale-of-two-china-jvs-and-major-oem-outsourcing-award-300035039.html

SOURCE Tower International, Inc.