PHINIA (PHIN)2024-02-21 12:32Financial Performance - Q4 2023 U.S. GAAP net sales of $882 million, a 3.6% increase compared to Q4 2022[4] - Full year 2023 U.S. GAAP net sales of $3,500 million, a 4.5% increase compared to 2022[4] - Adjusted sales for Fuel Systems increased to $2,127 million in 2023 from $2,072 million in 2022[30] - Aftermarket adjusted sales rose to $1,323 million in 2023 from $1,276 million in 2022[30] - Full-year 2024 adjusted sales guidance is projected to be between $3,400 million and $3,550 million, with net sales expected to range from $3,415 million to $3,570 million[38] Operating Income and Margins - Q4 2023 operating income of $81 million with an operating margin of 9.2%, a year-over-year decrease of 100 basis points[4] - Full year 2023 operating income of $241 million with an operating margin of 6.9%, a year-over-year decrease of 260 basis points[4] - Adjusted operating income for Fuel Systems was $215 million in 2023, down from $252 million in 2022[32] - Adjusted operating margin for Aftermarket was 14.8% in 2023, down from 15.0% in 2022[32] EBITDA and Margins - Q4 2023 adjusted EBITDA of $127 million with an adjusted EBITDA margin of 14.8%, a year-over-year decrease of 20 basis points[4] - Full year 2023 adjusted EBITDA of $490 million with an adjusted EBITDA margin of 14.2%, a year-over-year decrease of 90 basis points[7] - Adjusted EBITDA margin was 14.2% in 2023, slightly down from 15.1% in 2022[34] - 2024 full year guidance expects adjusted EBITDA of $470 million to $510 million, with adjusted EBITDA margins of 13.8% to 14.4%[7] Net Earnings and Earnings Per Share - Net earnings for Q4 2023 were $33 million, compared to $75 million in Q4 2022, while full-year net earnings for 2023 were $102 million, down from $262 million in 2022[35] - Adjusted net earnings for Q4 2023 were $81 million, up from $33 million in Q4 2022, and full-year adjusted net earnings for 2023 were $194 million, compared to $306 million in 2022[35] - Net earnings per diluted share for Q4 2023 were $0.70, down from $1.60 in Q4 2022, while full-year net earnings per diluted share for 2023 were $2.17, compared to $5.57 in 2022[36] - Adjusted net earnings per diluted share for Q4 2023 were $1.75, up from $0.71 in Q4 2022, and full-year adjusted net earnings per diluted share for 2023 were $4.13, compared to $6.51 in 2022[36] Cash Flow and Liquidity - Q4 2023 net cash provided by operating activities of $62 million, with adjusted free cash flow of $55 million[4] - Net cash provided by operating activities for Q4 2023 was $62 million, down from $181 million in Q4 2022, while full-year net cash provided by operating activities for 2023 was $250 million, compared to $303 million in 2022[37] - Adjusted free cash flow for Q4 2023 was $55 million, down from $164 million in Q4 2022, and full-year adjusted free cash flow for 2023 was $161 million, compared to $227 million in 2022[37] - 2024 full year guidance expects adjusted free cash flow of $160 to $200 million[7] - Cash and cash equivalents increased to $365 million in 2023 from $251 million in 2022[17] - Net debt decreased significantly to $433 million in 2023 from $1,019 million in 2022[19] Capital Expenditures and Assets - Capital expenditures increased to $150 million in 2023 from $107 million in 2022[18] - Total assets remained stable at $4,041 million in 2023 compared to $4,074 million in 2022[17] 2024 Guidance - 2024 full year guidance expects net sales of $3.42 billion to $3.57 billion, adjusted sales of $3.40 billion to $3.55 billion (down 1% to up 3% versus 2023 adjusted sales)[7] - 2024 full year guidance expects adjusted EBITDA of $470 million to $510 million, with adjusted EBITDA margins of 13.8% to 14.4%[7] - 2024 full year guidance expects adjusted free cash flow of $160 to $200 million[7]