Visteon(VC) - 2024 Q2 - Quarterly Results

Business Performance - Visteon won $3.1 billion in new business in the first half of the year, including nearly $1.8 billion from display wins[1] - The company reported second quarter sales of $1,014 million, a 3.2% increase from $983 million in the same quarter last year[7] - Net income for the second quarter was $71 million, or $2.54 per diluted share, compared to $20 million in the prior year[8] - Adjusted EBITDA reached a record $136 million in the second quarter, an increase of $46 million year-over-year, with an adjusted EBITDA margin of 13.4%[8] - Visteon launched 41 new products across 17 OEMs in the first half of the year, including significant launches for Toyota, Mazda, and Porsche[10] - For full-year 2024, Visteon updated its sales guidance to a range of $3.85 billion to $3.95 billion and adjusted EBITDA guidance to $455 million to $475 million[12] Financial Position - The company ended the second quarter with net cash of $181 million, cash of $508 million, and debt of $327 million[9] - Cash from operations for the first six months was $126 million, with capital expenditures of $68 million and adjusted free cash flow of $62 million[9] - Visteon's gross margin in the second quarter was $147 million, compared to $104 million in the same quarter last year[8] - The company’s cash, equivalents, and restricted cash at the end of the period stood at $508 million, compared to $459 million at the end of the previous period[30] - Total assets increased to $2,731 million as of June 30, 2024, compared to $2,727 million at December 31, 2023[39] - Cash and equivalents decreased slightly to $505 million from $515 million[39] - Accounts receivable increased to $695 million from $666 million, indicating improved collection efforts[39] - Total current liabilities decreased to $887 million from $931 million, reflecting better management of short-term obligations[39] - Retained earnings increased to $2,387 million from $2,274 million, showing strong profitability retention[39] - Total stockholders' equity rose to $1,198 million from $1,123 million, indicating a solid financial position[39] Profitability Metrics - Visteon reported a net income of $71 million for the three months ended June 30, 2024, compared to $20 million for the same period in 2023, representing a 255% increase[30] - Diluted earnings per share increased to $2.54 for the three months ended June 30, 2024, from $0.70 in the same period of 2023, marking a 263% rise[30] - Adjusted net income for the six months ended June 30, 2024, was $116 million, up from $70 million for the same period in 2023, reflecting a 66% increase[38] - Visteon’s adjusted earnings per share for the six months ended June 30, 2024, was $4.16, compared to $2.44 for the same period in 2023, indicating a 70% increase[38] - Adjusted free cash flow for the six months ended June 30, 2024, was $62 million, compared to $32 million for the same period in 2023[42] - Estimated full-year free cash flow for 2024 is projected at $305 million[42] Operational Challenges - The company anticipates continued impacts from geopolitical conflicts and supply chain disruptions, which may affect future performance[27] - Visteon emphasizes the importance of adjusted net income and adjusted earnings per share as useful measures for assessing profitability and performance[37] - Adjusted EBITDA is used as a performance measure, excluding items that may obscure operational trends[40] - The company experienced a net cash decrease of $10 million for the three months ended June 30, 2024, compared to a decrease of $64 million in the same period of 2023[30] - Capital expenditures, including intangibles, totaled $31 million for the three months ended June 30, 2024, compared to $30 million for the same period in 2023[30] - Net cash used by investing activities was $35 million for the three months ended June 30, 2024, compared to $29 million for the same period in 2023[30] - The company reported a decrease in accrued employee liabilities to $81 million from $99 million, suggesting improved workforce management[39]