LONDON, Aug. 1, 2019
/PRNewswire/ -- Delphi Technologies PLC (NYSE: DLPH) ("Delphi
Technologies" or the "Company"), a global leader in vehicle
propulsion systems, today reported second quarter 2019 U.S. GAAP
earnings of $0.31 per diluted share
compared to $0.97 per diluted share
for the prior year period. Excluding special items, second quarter
earnings totaled $0.58 per diluted
share compared to $1.29 per diluted
share for the prior year period. The Company also reported revenue
of $1.1 billion for the quarter and
$2.3 billion for the year-to-date
period, a decrease of 9% and 10% compared to $1.2 billion and $2.5
billion for the respective equivalent prior periods, on a
U.S. GAAP basis. Adjusting for currency exchange, the second
quarter and year-to-date revenue decreased 5% and 6%,
respectively.
Second quarter highlights
- Revenue of $1.1 billion, down 9%
on a U.S. GAAP basis and down 5% on a constant currency basis,
year-on-year
- U.S. GAAP net income of $27
million, diluted earnings per share of $0.31
-
- Excluding special items, earnings of $0.58 per diluted share
- U.S. GAAP operating income of $56
million, or 5.0% margin
-
- Adjusted operating income of $81
million, or 7.2% margin
- Generated $70 million of cash
from operating activities
- Returned $15 million to
shareholders through share repurchases
Year-to-date highlights
- Revenue of $2.3 billion, down 10%
on U.S. GAAP basis and down 6% on a constant currency basis,
year-on-year
- U.S. GAAP net income of $43
million, diluted earnings per share of $0.49
-
- Excluding special items, earnings of $1.25 per diluted share
- U.S. GAAP operating income of $111
million, or 4.9% margin
-
- Adjusted operating income of $168
million, or 7.4% margin
- Generated $91 million of cash
from operating activities
- Returned $30 million to
shareholders through share repurchases
CEO comments
"I am pleased with the progress we made
in the second quarter, despite a challenging industry and macro
environment, particularly in China," said Richard
F. Dauch, Chief Executive Officer of Delphi Technologies.
"We established a new company vision and mission, simplified our
organizational structure and continued to improve our execution on
key initiatives. Consistent with our mission to make vehicles drive
cleaner, better and further, we secured a number of key wins,
including our largest Power Electronics program. We also
announced our industry-first 500+ bar GDi system, which will
significantly improve vehicle emissions. Our leadership in
propulsion technologies, customer focus and differentiated value
proposition for both passenger cars and commercial vehicles
underscores my confidence in our long-term growth potential. In the
shorter-term, we remain focused on delivering improved underlying
profitability, and creating value for all our stakeholders."
Second quarter 2019 results
The Company reported
second quarter 2019 revenue of $1.1
billion, a decrease of 9% from the prior year period, on a
U.S. GAAP basis. Adjusted for currency exchange, revenue decreased
by 5% in the second quarter. Adjusted revenue, a non-GAAP financial
measure defined below, reflects a decrease of 7% in Powertrain
Systems and an increase of 3% in Aftermarket. On a regional basis,
adjusted revenue also reflects decreases of 10% in both
North America and in Asia Pacific, partially offset by growth of 3%
in South America and consistent
revenue in Europe.
The Company reported second quarter 2019 U.S. GAAP net income of
$27 million and net income of
$0.31 per diluted share, compared to
$86 million and $0.97 per diluted share in the prior year period.
Second quarter Adjusted Net Income, a non-GAAP financial measure
defined below, totaled $51 million,
or $0.58 per diluted share, which
compares to Adjusted Net Income in the prior year period of
$115 million, or $1.29 per diluted share. The decrease in Adjusted
Net Income was primarily due to unfavorable product mix, most
notably a decrease in revenues of higher margin diesel fuel
injection systems, and an increase in revenues of lower margin
advanced gasoline direct injection fuel systems. In addition, the
decrease in Adjusted Net Income was also impacted by decreased
volume and adverse currency exchange movements, partially offset by
improvements in operational performance.
Second quarter U.S. GAAP operating income was $56 million, compared to $122 million in the prior year period. Adjusted
Operating Income, a non-GAAP financial measure defined below, was
$81 million, compared to $156 million in the prior year period. Adjusted
Operating Income margin decreased 550 basis points in the second
quarter of 2019 to 7.2%, compared with 12.7% in the prior year
period. The decrease in Adjusted Operating Income was primarily due
to unfavorable product mix as referenced above, lower volume and
adverse currency exchange movements, partially offset by continued
improvements in operational performance. Depreciation and
amortization expense (including asset impairment charges and
amortization of deferred debt issuance costs) totaled $58 million in the second quarter as compared to
$49 million in the prior year
period.
Interest expense for the second quarter totaled $18 million, as compared to $19 million interest expense in the prior year
period.
U.S. GAAP tax expense in the second quarter of 2019 was
$14 million, resulting in an
effective tax rate of approximately 30%, compared to $20 million, or an effective rate of 19%, in the
prior year period. The increase in the effective tax rate primarily
reflects the impacts of unfavorable changes in geographic income
mix.
The Company generated net cash flow from operating activities
of $70 million in the second quarter, compared
to $164 million in the prior year period, which primarily
reflects the decline in net income and decreased net working
capital. With respect to cash flow used in investing activities,
capital expenditures totaled $103
million in the second quarter, compared to $57 million in the prior year period. The
increased spending is primarily due to investments to support
long-term growth in key technologies, particularly gasoline direct
injection fuel systems and power electronics products, as well as
higher capital expenditures related to becoming a stand-alone
public company.
Year-to-date 2019 results
For the six months ended
June 30, 2019, the Company reported revenue of $2.3 billion a decrease of 10% from the prior
year period, on a U.S. GAAP basis. Adjusted for currency exchange,
revenue decreased by 6% during the period. Adjusted revenue
reflects a decrease of 7% in Powertrain Systems and 2% in
Aftermarket. On a regional basis, adjusted revenue also reflects
decreases of 18% in Asia Pacific
and 7% in North America, partially
offset by growth of 2% in Europe
and 5% in South America.
For the 2019 year-to-date period, the Company reported 2019 U.S.
GAAP net income of $43 million and
net income of $0.49 per diluted
share, compared to $184 million and
$2.07 per diluted share in the prior
year period. Year-to-date Adjusted Net Income totaled $110 million, or $1.25 per diluted share, which compares to
Adjusted Net Income in the prior year period of $231 million, or $2.60 per diluted share. The decrease in Adjusted
Net Income was primarily due to unfavorable product mix, most
notably a decrease in revenues of higher margin diesel fuel
injection systems, and an increase in revenues of lower margin
advanced gasoline direct injection fuel systems. In addition, the
decrease in Adjusted Net Income was also impacted by lower volume
and adverse currency exchange movements, partially offset by
improvements in operational performance.
The Company reported U.S. GAAP operating income of $111 million for the six months ended
June 30, 2019, compared to $260
million in the prior year period. Adjusted Operating Income,
a non-GAAP financial measure defined below, was $168 million for the six months ended
June 30, 2019, compared to $315
million in the prior year period. Adjusted Operating Income
margin decreased 510 basis points for the six months ended
June 30, 2019 to 7.4%, compared to 12.5% in the prior year
period. The decrease in Adjusted Operating Income was primarily due
to unfavorable product mix as referenced above, lower volume and
adverse currency exchange movements, partially offset by
improvements in operational performance. Depreciation and
amortization expense (including asset impairment charges and
amortization of deferred debt issuance costs) totaled $112 million as compared to $100 million in the prior year period.
Interest expense for the six months ended June 30, 2019
totaled $36 million, as compared to
$39 million in the prior year
period.
U.S. GAAP tax expense for the six months ended June 30,
2019 was $22 million, resulting in an
effective tax rate of approximately 31%, compared to $42 million, or an effective rate of 18%, in the
prior year period. The increase in the effective tax rate primarily
reflects the impacts of unfavorable changes in geographic income
mix.
The Company generated net cash flow from operating activities
of $91 million in the six months ended June 30,
2019, compared to $239 million in the prior year period,
primarily due to the decrease in net income. With respect to cash
flow used in investing activities, capital expenditures totaled
$234 million during the six months
ended June 30, 2019, compared to $123
million in the prior year period. The increased spending is
primarily due to investments to support long-term growth in key
technologies, particularly gasoline direct injection fuel systems
and power electronics, as well as higher capital expenditures
related to becoming a stand-alone public company.
Revised full year 2019 outlook
The Company's full year 2019 financial outlook is as
follows:
(in millions,
except per share amounts)
|
|
Outlook
|
Full Year
2019
|
Revenue
|
$4,425 -
$4,475
|
Adjusted operating
income margin*
|
~8%
|
Adjusted net income
per share*
|
$2.65 -
$2.85
|
Cash flow from
operations
|
$280 -
$310
|
Capital
expenditures
|
$315 -
$325
|
Adjusted effective
tax rate*
|
~18%
|
|
* The Company
does not provide forward-looking operating income, net income per
share or effective tax rate on a U.S. GAAP basis, or a quantitative
reconciliation of these forward-looking non-GAAP financial measures
to the most directly comparable U.S. GAAP financial measures, due
to the difficulty in predicting with a reasonable degree of
certainty extraordinary expenses that the Company may incur, or
extraordinary benefits that the Company may realize, during
the financial outlook period presented. These items are
uncertain, depend on various factors, and could have a material
impact on U.S. GAAP reported results during the financial outlook
period presented.
|
Conference call and webcast
The Company will host a
conference call to discuss these results at 8:30 a.m. (EDT) / 1:30
p.m. (BST) today, which is accessible by dialing
866.761.8621 (US domestic) or +1 703.925.2612 (international) or
through a webcast at http://ir.delphi.com. The conference ID number
is 5798291. A slide presentation will accompany the prepared
remarks and has been posted on the investor relations section of
the Company's website. A replay will be available two hours
following the conference call.
Use of non-GAAP financial information
This press
release contains information about Delphi Technologies' financial
results which are not presented in accordance with U.S. GAAP.
Specifically, Adjusted Operating Income, Adjusted Net Income,
Adjusted Net Income per Share and the Adjusted Effective Tax Rate
are non-GAAP financial measures. Adjusted Operating Income
represents net income before interest expense, other (expense)
income, net, income tax expense, equity income, net of tax,
restructuring, separation costs, asset impairments and pension
charges. Adjusted Operating Income margin is defined as Adjusted
Operating Income as a percentage of net sales.
Adjusted Net Income represents net income attributable to Delphi
Technologies before restructuring and other special items,
including the tax impact thereon. Adjusted Net Income per Share
represents Adjusted Net Income divided by the weighted average
number of diluted shares outstanding for the period. Adjusted
Effective Tax Rate represents income tax expense less the income
tax related to the adjustments noted above for Adjusted Net Income,
divided by income before income taxes less adjustments.
In addition, this press release contains information about the
Company's adjusted revenue, which is presented on a constant
currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of fluctuations in foreign
currency exchange rates that occurred between the comparative
periods. Constant currency net sales results are calculated by
translating current period net sales in local currency to the U.S.
dollar amount by using the currency conversion rate for the prior
comparative period. The Company consistently applies this
approach to net sales for all countries where the functional
currency is not the U.S. dollar. The Company believes that this
presentation provides useful supplemental information regarding
changes in our revenue that were not due to fluctuations in
currency exchange rates and such information is consistent with how
the Company assesses changes in its revenue between comparative
periods.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position, results of operations
and liquidity. In particular, management believes Adjusted
Operating Income, Adjusted Net Income and Adjusted Net Income per
Share are useful measures in assessing the Company's ongoing
financial performance that, when reconciled to the
corresponding U.S. GAAP measure, provide improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and that may obscure underlying business
results and trends. Management also uses these non-GAAP
financial measures for internal planning and forecasting
purposes.
Such non-GAAP financial measures are reconciled to the most
directly comparable U.S. GAAP financial measures in the attached
supplemental schedules at the end of this press release. Non-GAAP
measures should not be considered in isolation or as a substitute
for the Company's reported results prepared in accordance with U.S.
GAAP and, as calculated, may not be comparable to other similarly
titled measures of other companies.
Forward-looking statements
This press release, as well
as other statements made by Delphi Technologies PLC, contain
forward-looking statements that reflect, when made, the Company's
current views with respect to future events and financial
performance and, in particular, the Company's 2019 outlook.
Such forward-looking statements are subject to many risks,
uncertainties and factors relating to the Company's operations and
business environment, which may cause the actual results of the
Company to be materially different from any future results. All
statements that address future operating, financial or business
performance or the Company's strategies or expectations are
forward-looking statements. In some cases, you can identify these
statements by forward-looking words such as "may," "might," "will,"
"should," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "projects," "potential," "outlook" or
"continue," the negatives thereof and other comparable terminology.
Factors that could cause actual results to differ materially from
these forward-looking statements include, but are not limited to,
the following: global and regional economic conditions,
including conditions affecting the credit market and those
resulting from the United Kingdom
referendum held on June 23, 2016 in
which voters approved an exit from the European Union, commonly
referred to as "Brexit"; risks inherent in operating as a
global company, such as, fluctuations in interest rates and foreign
currency exchange rates and economic, political and trade
conditions around the world; the cyclical nature of automotive
sales and production; the potential disruptions in the supply of
and changes in the competitive environment for raw material
integral to the Company's products; the Company's ability to
maintain contracts that are critical to its operations; potential
changes to beneficial free trade laws and regulations such as the
North American Free Trade Agreement; the ability of the Company to
achieve the intended benefits from its separation from its former
parent or from acquisitions the Company may make; the ability of
the Company to attract, motivate and/or retain key executives; the
ability of the Company to avoid or continue to operate during a
strike, or partial work stoppage or slow down by any of its
unionized employees or those of its principal customers; the
ability of the Company to attract and retain customers; changes in
the costs of raw materials; the Company's indebtedness, including
the amount thereof and capital availability and cost; the cost and
outcome of any claims, legal proceedings or investigations; the
failure or breach of information technology systems; severe weather
conditions and natural disasters and any resultant disruptions on
the supply or production of goods or services or customer demands;
acts of war and/or terrorism, as well as the impact of actions
taken by governments as a result of further acts or threats of
terrorism; and the timing and occurrence (or non-occurrence) of
other events or circumstances that may be beyond the Company's
control.
Additional factors are discussed under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's filings with
the Securities and Exchange Commission. New risks and uncertainties
arise from time to time, and it is impossible for us to predict
these events or how they may affect the Company. It should be
remembered that the price of the ordinary shares and any income
from them can go down as well as up. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
and/or otherwise, except as may be required by law.
About Delphi Technologies
Delphi Technologies is a
global provider of propulsion technologies that make vehicles drive
cleaner, better and further. It offers pioneering solutions for
internal combustion engine, hybrid and electric passenger cars and
commercial vehicles. Delphi Technologies builds on its Original
Equipment expertise to provide leading service solutions for the
aftermarket. Headquartered in London (UK), the company operates technical
centers, manufacturing sites, customer support service centers in
24 countries and employs more than 21,000 people around the world.
Visit www.delphi.com to learn more.
DELPHI
TECHNOLOGIES PLC
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
2019
|
2018
|
2019
|
2018
|
|
(in millions,
except per share amounts)
|
Net sales
|
$
|
1,121
|
|
$
|
1,232
|
|
$
|
2,272
|
|
$
|
2,528
|
|
Operating
expenses:
|
|
|
|
|
Cost of
sales
|
955
|
|
991
|
|
1,938
|
|
2,037
|
|
Selling, general and
administrative
|
103
|
|
105
|
|
207
|
|
202
|
|
Amortization
|
2
|
|
2
|
|
8
|
|
6
|
|
Restructuring
|
5
|
|
12
|
|
8
|
|
23
|
|
Total operating
expenses
|
1,065
|
|
1,110
|
|
2,161
|
|
2,268
|
|
Operating
income
|
56
|
|
122
|
|
111
|
|
260
|
|
Interest
expense
|
(18)
|
|
(19)
|
|
(36)
|
|
(39)
|
|
Other income
(expense), net
|
8
|
|
4
|
|
(4)
|
|
10
|
|
Income before income
taxes and equity income
|
46
|
|
107
|
|
71
|
|
231
|
|
Income tax
expense
|
(14)
|
|
(20)
|
|
(22)
|
|
(42)
|
|
Income before equity
income
|
32
|
|
87
|
|
49
|
|
189
|
|
Equity (loss) income,
net of tax
|
(1)
|
|
3
|
|
1
|
|
6
|
|
Net income
|
31
|
|
90
|
|
50
|
|
195
|
|
Net income
attributable to noncontrolling interest
|
4
|
|
4
|
|
7
|
|
11
|
|
Net income
attributable to Delphi Technologies
|
$
|
27
|
|
$
|
86
|
|
$
|
43
|
|
$
|
184
|
|
|
|
|
|
|
Net income per share
attributable to Delphi Technologies:
|
|
|
|
|
Basic
|
$
|
0.31
|
|
$
|
0.97
|
|
$
|
0.49
|
|
$
|
2.07
|
|
Diluted
|
$
|
0.31
|
|
$
|
0.97
|
|
$
|
0.49
|
|
$
|
2.07
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
Basic
|
87.77
|
|
88.78
|
|
88.11
|
|
88.75
|
|
Diluted
|
88.11
|
|
89.05
|
|
88.33
|
|
88.98
|
|
|
|
|
|
|
Cash dividends
declared per share
|
$
|
—
|
|
$
|
0.17
|
|
$
|
—
|
|
$
|
0.34
|
|
DELPHI
TECHNOLOGIES PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
(Unaudited)
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
162
|
|
|
$
|
359
|
|
Restricted
cash
|
1
|
|
|
1
|
|
Accounts receivable,
net
|
884
|
|
|
878
|
|
Inventories,
net
|
553
|
|
|
521
|
|
Other current
assets
|
178
|
|
|
172
|
|
Total current
assets
|
1,778
|
|
|
1,931
|
|
Long-term
assets:
|
|
|
|
Property,
net
|
1,509
|
|
|
1,445
|
|
Investments in
affiliates
|
39
|
|
|
44
|
|
Intangible assets,
net
|
61
|
|
|
69
|
|
Goodwill
|
7
|
|
|
7
|
|
Deferred income
taxes
|
273
|
|
|
280
|
|
Other long-term
assets (1)
|
236
|
|
|
117
|
|
Total long-term
assets
|
2,125
|
|
|
1,962
|
|
Total
assets
|
$
|
3,903
|
|
|
$
|
3,893
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
39
|
|
|
$
|
43
|
|
Accounts
payable
|
832
|
|
|
906
|
|
Accrued liabilities
(1)
|
443
|
|
|
428
|
|
Total current
liabilities
|
1,314
|
|
|
1,377
|
|
Long-term
liabilities:
|
|
|
|
Long-term
debt
|
1,475
|
|
|
1,488
|
|
Pension and other
postretirement benefit obligations
|
408
|
|
|
467
|
|
Other long-term
liabilities (1)
|
206
|
|
|
123
|
|
Total long-term
liabilities
|
2,089
|
|
|
2,078
|
|
Total
liabilities
|
3,403
|
|
|
3,455
|
|
Total Delphi
Technologies shareholders' equity
|
357
|
|
|
292
|
|
Noncontrolling
interest
|
143
|
|
|
146
|
|
Total shareholders'
equity
|
500
|
|
|
438
|
|
Total liabilities and
shareholders' equity
|
$
|
3,903
|
|
|
$
|
3,893
|
|
|
|
|
|
(1) The Company
adopted Accounting Standards Update 2016-2, Leases (Topic
842), in the first quarter of 2019 using the optional modified
retrospective transition method and did not recast the comparative
periods. As of June 30, 2019, operating lease assets of $117
million are included in other long-term assets. Additionally,
operating lease liabilities of $120 million were recorded as of
June 30, 2019, of which $21 million is included in accrued
liabilities and $99 million is included in other long-term
liabilities
|
DELPHI
TECHNOLOGIES PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
50
|
|
|
$
|
195
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
112
|
|
|
100
|
|
Restructuring
expense, net of cash paid
|
(11)
|
|
|
(17)
|
|
Deferred income
taxes
|
(2)
|
|
|
3
|
|
Pension and other
postretirement benefit expenses
|
18
|
|
|
22
|
|
Income from equity
method investments, net of dividends received
|
(1)
|
|
|
(6)
|
|
Other, net
|
8
|
|
|
10
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
(6)
|
|
|
64
|
|
Inventories
|
(32)
|
|
|
(22)
|
|
Accounts
payable
|
(13)
|
|
|
(72)
|
|
Other, net
|
(6)
|
|
|
(15)
|
|
Pension
contributions
|
(26)
|
|
|
(23)
|
|
Net cash provided by
operating activities
|
91
|
|
|
239
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(234)
|
|
|
(123)
|
|
Proceeds from sale of
property
|
5
|
|
|
1
|
|
Proceeds from
insurance settlement claims
|
—
|
|
|
1
|
|
Cost of technology
investments
|
—
|
|
|
(7)
|
|
Settlement of
undesignated derivatives
|
(1)
|
|
|
(10)
|
|
Net cash used in
investing activities
|
(230)
|
|
|
(138)
|
|
Cash flows from
financing activities:
|
|
|
|
Net repayments under
other short-term debt agreements
|
—
|
|
|
(2)
|
|
Repayments under
long-term debt agreements
|
(19)
|
|
|
(9)
|
|
Dividend payments of
consolidated affiliates to minority shareholders
|
(8)
|
|
|
(10)
|
|
Repurchase of
ordinary shares
|
(29)
|
|
|
—
|
|
Distribution of cash
dividends
|
—
|
|
|
(30)
|
|
Taxes withheld and
paid on employees' restricted share awards
|
(2)
|
|
|
(5)
|
|
Net cash used in
financing activities
|
(58)
|
|
|
(56)
|
|
Effect of exchange
rate fluctuations on cash, cash equivalents and restricted
cash
|
—
|
|
|
(12)
|
|
Decrease in cash,
cash equivalents and restricted cash
|
(197)
|
|
|
33
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
360
|
|
|
339
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
163
|
|
|
$
|
372
|
|
DELPHI TECHNOLOGIES
PLC
FOOTNOTES
(Unaudited)
1. Segment Summary
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
%
|
|
2019
|
|
2018
|
|
%
|
|
(in
millions)
|
|
|
|
(in
millions)
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
971
|
|
|
$
|
1,086
|
|
|
(11)%
|
|
$
|
1,991
|
|
|
$
|
2,239
|
|
|
(11)%
|
Aftermarket
|
214
|
|
|
215
|
|
|
0%
|
|
407
|
|
|
432
|
|
|
(6)%
|
Eliminations and
Other (1)
|
(64)
|
|
|
(69)
|
|
|
|
|
(126)
|
|
|
(143)
|
|
|
|
Net Sales
|
$
|
1,121
|
|
|
$
|
1,232
|
|
|
|
|
$
|
2,272
|
|
|
$
|
2,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
64
|
|
|
$
|
134
|
|
|
(52)%
|
|
$
|
140
|
|
|
$
|
276
|
|
|
(49)%
|
Aftermarket
|
17
|
|
|
22
|
|
|
(23)%
|
|
28
|
|
|
39
|
|
|
(28)%
|
Adjusted Operating
Income
|
$
|
81
|
|
|
$
|
156
|
|
|
|
|
$
|
168
|
|
|
$
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Eliminations and Other includes the elimination of inter-segment
transactions
|
|
|
|
|
|
|
|
|
2. Weighted Average Number of Diluted Shares
Outstanding
The following table illustrates the weighted average shares
outstanding used in calculating basic and diluted net income per
share attributable to Delphi Technologies for the three and six
months ended June 30, 2019 and 2018:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
Weighted average
ordinary shares outstanding, basic
|
87.77
|
|
|
88.78
|
|
|
88.11
|
|
|
88.75
|
|
Dilutive shares
related to RSUs
|
0.34
|
|
|
0.27
|
|
|
0.22
|
|
|
0.23
|
|
Weighted average
ordinary shares outstanding, including
dilutive shares
|
88.11
|
|
|
89.05
|
|
|
88.33
|
|
|
88.98
|
|
Net income per share
attributable to Delphi Technologies:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.31
|
|
|
$
|
0.97
|
|
|
$
|
0.49
|
|
|
$
|
2.07
|
|
Diluted
|
$
|
0.31
|
|
|
$
|
0.97
|
|
|
$
|
0.49
|
|
|
$
|
2.07
|
|
DELPHI TECHNOLOGIES
PLC
RECONCILIATION OF NON-GAAP
MEASURES
(Unaudited)
In this press release the Company has provided information
regarding certain non-GAAP financial measures, including "Adjusted
Operating Income," "Adjusted Net Income" and "Adjusted Net Income
per Share." Such non-GAAP financial measures are reconciled to
their closest U.S. GAAP financial measure in the following
schedules.
Adjusted Operating Income: Adjusted Operating Income is
presented as a supplemental measure of the Company's financial
performance which management believes is useful to investors in
assessing the Company's ongoing financial performance that, when
reconciled to the corresponding U.S. GAAP measure, provides
improved comparability between periods through the exclusion of
certain items that management believes are not indicative of the
Company's core operating performance and which may obscure
underlying business results and trends. Management utilizes
Adjusted Operating Income in its financial decision making process,
to evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Management also utilizes
Adjusted Operating Income as the key performance measure of segment
income or loss and for planning and forecasting purposes to
allocate resources to the Company's segments, as management also
believes this measure is most reflective of the operational
profitability or loss of the operating segments. Adjusted Operating
Income is defined as net income before interest expense, other
income (expense), net, income tax expense, equity (loss) income,
net of tax, restructuring, separation costs, asset impairments and
pension charges. Not all companies use identical calculations of
Adjusted Operating Income, therefore this presentation may not be
comparable to other similarly titled measures of other companies.
The Company's 2019 outlook was determined using a consistent manner
and methodology.
Consolidated
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
($ in
millions)
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
Net income
attributable to Delphi Technologies
|
$
|
27
|
|
|
|
|
$
|
86
|
|
|
|
|
$
|
43
|
|
|
|
|
$
|
184
|
|
|
|
Net income
attributable to noncontrolling interest
|
4
|
|
|
|
|
4
|
|
|
|
|
7
|
|
|
|
|
11
|
|
|
|
Net income
|
31
|
|
|
|
|
90
|
|
|
|
|
50
|
|
|
|
|
195
|
|
|
|
Equity loss (income),
net of tax
|
1
|
|
|
|
|
(3)
|
|
|
|
|
(1)
|
|
|
|
|
(6)
|
|
|
|
Income tax
expense
|
14
|
|
|
|
|
20
|
|
|
|
|
22
|
|
|
|
|
42
|
|
|
|
Other (income)
expense, net
|
(8)
|
|
|
|
|
(4)
|
|
|
|
|
4
|
|
|
|
|
(10)
|
|
|
|
Interest
expense
|
18
|
|
|
|
|
19
|
|
|
|
|
36
|
|
|
|
|
39
|
|
|
|
Operating
income
|
56
|
|
|
5.0
|
%
|
|
122
|
|
|
9.9
|
%
|
|
111
|
|
|
4.9
|
%
|
|
260
|
|
|
10.3
|
%
|
Restructuring
|
5
|
|
|
|
|
12
|
|
|
|
|
8
|
|
|
|
|
23
|
|
|
|
Separation costs
(1)
|
13
|
|
|
|
|
21
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
Asset
impairments
|
5
|
|
|
|
|
1
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
Pension charges
(2)
|
2
|
|
|
|
|
—
|
|
|
|
|
10
|
|
|
|
|
—
|
|
|
|
Adjusted operating
income
|
$
|
81
|
|
|
7.2
|
%
|
|
$
|
156
|
|
|
12.7
|
%
|
|
$
|
168
|
|
|
7.4
|
%
|
|
$
|
315
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Separation
costs include one-time incremental expenses associated with
becoming a stand-alone publicly-traded company
|
(2) Pension
charges include additional contributions to defined contribution
plans, other payments to impacted employees and other related
expenses resulting from the freeze of future accruals for nearly
all U.K. defined benefit pension plans
|
Segment Adjusted
Operating Income
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
43
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
56
|
Restructuring
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
Separation costs
(1)
|
11
|
|
|
2
|
|
|
—
|
|
|
13
|
Asset
impairments
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
Pension charges
(2)
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
Adjusted operating
income
|
$
|
64
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
55
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
105
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
122
|
Restructuring
|
11
|
|
|
1
|
|
|
—
|
|
|
12
|
Separation costs
(1)
|
17
|
|
|
4
|
|
|
—
|
|
|
21
|
Asset
impairments
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
Adjusted operating
income
|
$
|
134
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
156
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
47
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
90
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
111
|
Restructuring
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
Separation costs
(1)
|
27
|
|
|
4
|
|
|
—
|
|
|
31
|
Asset
impairments
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
Pension charges
(2)
|
9
|
|
|
1
|
|
|
—
|
|
|
10
|
Adjusted operating
income
|
$
|
140
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
168
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
107
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2018
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
228
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
260
|
Restructuring
|
22
|
|
|
1
|
|
|
—
|
|
|
23
|
Separation costs
(1)
|
25
|
|
|
6
|
|
|
—
|
|
|
31
|
Asset
impairments
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
Adjusted operating
income
|
$
|
276
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
315
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
96
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Separation costs
include one-time incremental expenses associated with becoming a
stand-alone publicly-traded company
|
(2)
|
Pension charges
include additional contributions to defined contribution plans,
other payments to impacted employees and other related expenses
resulting from the freeze of future accruals for nearly all U.K.
defined benefit pension plans
|
(3)
|
Includes asset
impairments
|
Adjusted Net Income and Adjusted Net Income per Share:
Adjusted Net Income and Adjusted Net Income per Share, which are
non-GAAP measures, are presented as supplemental measures of the
Company's financial performance which management believes are
useful to investors in assessing the Company's ongoing financial
performance that, when reconciled to the corresponding U.S. GAAP
measure, provide improved comparability between periods through the
exclusion of certain items that management believes are not
indicative of the Company's core operating performance and which
may obscure underlying business results and trends. Management
utilizes Adjusted Net Income and Adjusted Net Income per Share in
its financial decision making process, to evaluate performance of
the Company and for internal reporting, planning and forecasting
purposes. Adjusted Net Income is defined as net income attributable
to Delphi Technologies before restructuring and other special
items, including the tax impact thereon. Adjusted Net Income per
Share is defined as Adjusted Net Income divided by the weighted
average number of diluted shares outstanding for the period. Not
all companies use identical calculations of Adjusted Net Income and
Adjusted Net Income per Share, therefore this presentation may not
be comparable to other similarly titled measures of other
companies. The Company's 2019 outlook was determined using a
consistent manner and methodology.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share amounts)
|
Net income
attributable to Delphi Technologies
|
$
|
27
|
|
|
$
|
86
|
|
|
$
|
43
|
|
|
$
|
184
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
Restructuring
|
5
|
|
|
12
|
|
|
8
|
|
|
23
|
|
Separation costs
(1)
|
13
|
|
|
21
|
|
|
31
|
|
|
31
|
|
Asset
impairments
|
5
|
|
|
1
|
|
|
8
|
|
|
1
|
|
Pension charges
(2)
|
2
|
|
|
—
|
|
|
25
|
|
|
—
|
|
Tax impact of
adjusting items (3)
|
(1)
|
|
|
(5)
|
|
|
(5)
|
|
|
(8)
|
|
Adjusted net income
attributable to Delphi Technologies
|
$
|
51
|
|
|
$
|
115
|
|
|
$
|
110
|
|
|
$
|
231
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
88.11
|
|
|
89.05
|
|
|
88.33
|
|
|
88.98
|
|
Diluted net income
per share attributable to Delphi
Technologies
|
$
|
0.31
|
|
|
$
|
0.97
|
|
|
$
|
0.49
|
|
|
$
|
2.07
|
|
Adjusted net income
per share
|
$
|
0.58
|
|
|
$
|
1.29
|
|
|
$
|
1.25
|
|
|
$
|
2.60
|
|
|
|
(1)
|
Separation costs
include one-time incremental expenses associated with becoming a
stand-alone publicly-traded company.
|
(2)
|
Pension charges
include a one-time plan curtailment charge, additional
contributions to defined contribution plans, other payments to
impacted employees and other related expenses resulting from the
freeze of future accruals for nearly all U.K. defined benefit
pension plans.
|
(3)
|
Represents the income
tax impacts of the adjustments made for restructuring and other
special items by calculating the anticipated income tax impact of
these items using the appropriate tax rate for the jurisdiction
where the charges were incurred.
|
View original
content:http://www.prnewswire.com/news-releases/delphi-technologies-reports-second-quarter-2019-financial-results-updates-full-year-outlook-300894244.html
SOURCE Delphi Technologies PLC