LONDON, Oct. 31, 2019 /PRNewswire/ -- Delphi
Technologies PLC (NYSE: DLPH) ("Delphi Technologies" or the
"Company") today announced financial results for its third quarter
2019.
Q3 2019 results
|
Revenue
|
|
Operating
Income
|
|
Operating
Income Margin
|
|
Net Income per
Share - Diluted
|
|
Cash From
Operations
|
GAAP
|
$1.0
B
|
|
$45
M
|
|
4.4%
|
|
$0.16
|
|
$59
M
|
vs. Q3
2018
|
(11)%
|
|
(44)%
|
|
(2.6) pts
|
|
(64)%
|
|
$5 M
|
|
|
|
|
|
|
|
|
|
|
|
Adj. Revenue
Growth
|
|
Adj. Operating
Income
|
|
Adj. Operating
Income Margin
|
|
Adj. Net
Income
per Share -
Diluted
|
|
|
Non-GAAP
|
N/A
|
|
$71
M
|
|
6.9%
|
|
$0.56
|
|
|
vs. Q3
2018
|
(8)%
|
|
(34)%
|
|
(2.4) pts
|
|
(22)%
|
|
|
- Revenue of $1.0 billion decreased
11% percent from the year-ago quarter. Adjusting for currency
exchange, revenue decreased 8%. The decline was primarily due to
lower global production, particularly in China, the downward trend in passenger car
diesel fuel injection systems in Europe, and the closure of certain customer
production sites in North
America.
- On a regional basis, adjusted revenue reflects decreases of 12%
in Asia Pacific, 6% in
Europe, 7% in North America, and 7% in South America.
- Operating income was $45 million,
compared to $81 million in the prior
year period. Adjusted operating income was $71 million, compared to $108 million in the prior year period. The
year-on-year decline in adjusted operating income was primarily due
to unfavorable product mix, most notably between higher margin
passenger car diesel fuel injection systems, and lower margin
advanced gasoline direct injection fuel systems.
- Quarterly earnings per diluted share of $0.16 represents a 64% decline from the year-ago
quarter. Excluding special items, earnings per diluted share was
$0.56, compared to $0.72 in the prior year period.
- Cash flow from operating activities was $59 million, compared to $54 million in the prior year period. The
year-on-year increase is primarily due to an improvement in working
capital, offset by the decrease in net income.
CEO comment
"Consistent with our first half performance, our Q3 results were
impacted by ongoing industry and macro headwinds," said
Richard F. Dauch, Chief Executive
Officer of Delphi Technologies. "While we continue to make solid
progress in a number of key operational and commercial areas, we
must act with increased urgency to improve our financial
performance. Today we have announced a fundamental transformation
plan, which is a direct response to the major transitions and
challenges our industry faces, consistent with our priority to
realign and reshape Delphi Technologies for future profitable
growth. This important and necessary step is expected to reduce our
annualized costs by more than $150
million over the next three years, while significantly
improving our free cash flow and return on invested capital. As a
pioneer in propulsion technologies, we remain focused on investing
to support our longer-term growth, executing on our strong business
wins, and delivering on our vision to make vehicles drive cleaner,
better and further."
Cost reduction plan
Over the next three years, the Company plans to take a range of
actions to reshape and realign its engineering footprint, as well
as significantly reducing its overall cost structure, to accelerate
its longer-term profitable growth.
In total, these actions are expected to result in restructuring
costs of approximately $200 million
through the end of 2022. The corresponding gross cost savings are
expected to amount to more than $150
million in 2022, with approximately $50
million targeted in 2020.
The Company plans to utilize these savings to improve its
overall operating margin, while continuing to invest in key
technologies to support longer-term growth.
In addition, the Company expects the cost reduction plan to
significantly improve its cash flow performance. Net of the
restructuring costs referenced above, the Company expects the plan
to deliver an approximately $300
million cash benefit through the end of 2023.
As a result of these plans, and its focus on improving cash flow
performance, the Company is also suspending its existing
$200 million share repurchase
program.
Segment results
|
Q3
2019
|
|
Q3
2018
|
|
%
change
|
|
% FX
adj(1)
|
|
(in
millions)
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
888
|
|
|
$
|
1,017
|
|
|
(13)%
|
|
(10%)
|
Aftermarket
|
214
|
|
|
217
|
|
|
(1)%
|
|
2%
|
Eliminations and
Other (2)
|
(69)
|
|
|
(75)
|
|
|
|
|
|
Net
Sales
|
$
|
1,033
|
|
|
$
|
1,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
26
|
|
|
$
|
66
|
|
|
(61)%
|
|
|
Aftermarket
|
19
|
|
|
15
|
|
|
27%
|
|
|
Operating
Income
|
$
|
45
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
49
|
|
|
$
|
92
|
|
|
(47)%
|
|
|
Aftermarket
|
22
|
|
|
16
|
|
|
38%
|
|
|
Adjusted Operating
Income
|
$
|
71
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On a
constant currency basis, year-on-year.
|
|
|
(2)
Eliminations and Other includes the elimination of inter-segment
transactions.
|
|
|
Revised full year 2019 outlook (in millions, except
per share amounts)
Revenue
|
$4,300 -
$4,325
|
Adjusted operating
income margin*
|
7.0% -
7.2%
|
Adjusted net income
per share*
|
$2.25 -
$2.35
|
Cash flow from
operations
|
$235 -
$250
|
Capital
expenditures
|
$350 -
$360
|
Adjusted effective
tax rate*
|
~19%
|
|
|
*
|
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) / 12:30 p.m. (GMT) 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 6645438. 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
"Forward-Looking Statements", "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, including in the Company's Current Report on
Form 8-K filed on October 31, 2019.
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.
In addition, this press release includes a description of the
Company's intention to restructure its global technical center
footprint and reduce salaried and contract staff. These actions are
subject to consultation with employee works councils and other
employee representatives.
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share amounts)
|
Net sales
|
$
|
1,033
|
|
|
$
|
1,159
|
|
|
$
|
3,305
|
|
|
$
|
3,687
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
sales
|
883
|
|
|
965
|
|
|
2,821
|
|
|
3,002
|
|
Selling, general and
administrative
|
89
|
|
|
105
|
|
|
296
|
|
|
307
|
|
Amortization
|
3
|
|
|
3
|
|
|
11
|
|
|
9
|
|
Restructuring
|
13
|
|
|
5
|
|
|
21
|
|
|
28
|
|
Total operating
expenses
|
988
|
|
|
1,078
|
|
|
3,149
|
|
|
3,346
|
|
Operating
income
|
45
|
|
|
81
|
|
|
156
|
|
|
341
|
|
Interest
expense
|
(16)
|
|
|
(20)
|
|
|
(52)
|
|
|
(59)
|
|
Other income
(expense), net
|
8
|
|
|
(6)
|
|
|
4
|
|
|
4
|
|
Income before income
taxes and equity income
|
37
|
|
|
55
|
|
|
108
|
|
|
286
|
|
Income tax
expense
|
(21)
|
|
|
(12)
|
|
|
(43)
|
|
|
(54)
|
|
Income before equity
income
|
16
|
|
|
43
|
|
|
65
|
|
|
232
|
|
Equity income, net of
tax
|
1
|
|
|
—
|
|
|
2
|
|
|
6
|
|
Net income
|
17
|
|
|
43
|
|
|
67
|
|
|
238
|
|
Net income
attributable to noncontrolling interest
|
3
|
|
|
4
|
|
|
10
|
|
|
15
|
|
Net income
attributable to Delphi Technologies
|
$
|
14
|
|
|
$
|
39
|
|
|
$
|
57
|
|
|
$
|
223
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Delphi
Technologies:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.65
|
|
|
$
|
2.51
|
|
Diluted
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.65
|
|
|
$
|
2.51
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
86.90
|
|
|
88.74
|
|
|
87.70
|
|
|
88.74
|
|
Diluted
|
86.91
|
|
|
88.97
|
|
|
87.85
|
|
|
88.98
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
0.51
|
|
DELPHI
TECHNOLOGIES PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
|
(Unaudited)
|
|
|
(in
millions)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
104
|
|
|
$
|
359
|
|
Restricted
cash
|
1
|
|
|
1
|
|
Accounts receivable,
net
|
842
|
|
|
878
|
|
Inventories,
net
|
518
|
|
|
521
|
|
Other current
assets
|
192
|
|
|
172
|
|
Total current
assets
|
1,657
|
|
|
1,931
|
|
Long-term
assets:
|
|
|
|
Property,
net
|
1,481
|
|
|
1,445
|
|
Investments in
affiliates
|
40
|
|
|
44
|
|
Intangible assets,
net
|
57
|
|
|
69
|
|
Goodwill
|
6
|
|
|
7
|
|
Deferred income
taxes
|
252
|
|
|
280
|
|
Other long-term
assets (1)
|
265
|
|
|
117
|
|
Total long-term
assets
|
2,101
|
|
|
1,962
|
|
Total
assets
|
$
|
3,758
|
|
|
$
|
3,893
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
43
|
|
|
$
|
43
|
|
Accounts
payable
|
728
|
|
|
906
|
|
Accrued liabilities
(1)
|
460
|
|
|
428
|
|
Total current
liabilities
|
1,231
|
|
|
1,377
|
|
Long-term
liabilities:
|
|
|
|
Long-term
debt
|
1,465
|
|
|
1,488
|
|
Pension and other
postretirement benefit obligations
|
383
|
|
|
467
|
|
Other long-term
liabilities (1)
|
187
|
|
|
123
|
|
Total long-term
liabilities
|
2,035
|
|
|
2,078
|
|
Total
liabilities
|
3,266
|
|
|
3,455
|
|
Total Delphi
Technologies shareholders' equity
|
359
|
|
|
292
|
|
Noncontrolling
interest
|
133
|
|
|
146
|
|
Total shareholders'
equity
|
492
|
|
|
438
|
|
Total liabilities and
shareholders' equity
|
$
|
3,758
|
|
|
$
|
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
September 30, 2019, operating lease assets of $111 million are
included in other long-term assets. Additionally, operating lease
liabilities of $113 million were recorded as of September 30, 2019,
of which $20 million is included in accrued liabilities and $93
million is included in other long-term liabilities
|
DELPHI
TECHNOLOGIES PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
(in
millions)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
67
|
|
|
$
|
238
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
167
|
|
|
148
|
|
Restructuring
expense, net of cash paid
|
(8)
|
|
|
(23)
|
|
Deferred income
taxes
|
11
|
|
|
6
|
|
Pension and other
postretirement benefit expenses
|
16
|
|
|
33
|
|
Income from equity
method investments, net of dividends received
|
(2)
|
|
|
(6)
|
|
Other, net
|
14
|
|
|
14
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts receivable,
net
|
36
|
|
|
92
|
|
Inventories
|
3
|
|
|
(57)
|
|
Accounts
payable
|
(93)
|
|
|
(88)
|
|
Other, net
|
(26)
|
|
|
(30)
|
|
Pension
contributions
|
(35)
|
|
|
(34)
|
|
Net cash provided by
operating activities
|
150
|
|
|
293
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(322)
|
|
|
(185)
|
|
Proceeds from sale of
property
|
5
|
|
|
2
|
|
Proceeds from
insurance settlement claims
|
—
|
|
|
1
|
|
Cost of technology
investments
|
—
|
|
|
(7)
|
|
Settlement of
undesignated derivatives
|
(1)
|
|
|
(2)
|
|
Net cash used in
investing activities
|
(318)
|
|
|
(191)
|
|
Cash flows from
financing activities:
|
|
|
|
Net proceeds
(repayments) under other short-term debt agreements
|
3
|
|
|
(2)
|
|
Repayments under
long-term debt agreements
|
(28)
|
|
|
(14)
|
|
Dividend payments of
consolidated affiliates to minority shareholders
|
(11)
|
|
|
(12)
|
|
Repurchase of
ordinary shares
|
(44)
|
|
|
(9)
|
|
Distribution of cash
dividends
|
—
|
|
|
(45)
|
|
Taxes withheld and
paid on employees' restricted share awards
|
(2)
|
|
|
(5)
|
|
Net cash used in
financing activities
|
(82)
|
|
|
(87)
|
|
Effect of exchange
rate fluctuations on cash, cash equivalents and restricted
cash
|
(5)
|
|
|
(12)
|
|
(Decrease) increase
in cash, cash equivalents and restricted cash
|
(255)
|
|
|
3
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
360
|
|
|
339
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
105
|
|
|
$
|
342
|
|
DELPHI
TECHNOLOGIES PLC
|
FOOTNOTES
|
(Unaudited)
|
|
|
1. Segment
Summary
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
%
|
|
2019
|
|
2018
|
|
%
|
|
(in
millions)
|
|
|
|
(in
millions)
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
888
|
|
|
$
|
1,017
|
|
|
(13)%
|
|
$
|
2,879
|
|
|
$
|
3,256
|
|
|
(12)%
|
Aftermarket
|
214
|
|
|
217
|
|
|
(1)%
|
|
621
|
|
|
649
|
|
|
(4)%
|
Eliminations and
Other (1)
|
(69)
|
|
|
(75)
|
|
|
|
|
(195)
|
|
|
(218)
|
|
|
|
Net Sales
|
$
|
1,033
|
|
|
$
|
1,159
|
|
|
|
|
$
|
3,305
|
|
|
$
|
3,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
Powertrain
Systems
|
$
|
49
|
|
|
$
|
92
|
|
|
(47)%
|
|
$
|
189
|
|
|
$
|
368
|
|
|
(49)%
|
Aftermarket
|
22
|
|
|
16
|
|
|
38%
|
|
50
|
|
|
55
|
|
|
(9)%
|
Adjusted Operating
Income
|
$
|
71
|
|
|
$
|
108
|
|
|
|
|
$
|
239
|
|
|
$
|
423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months ended
September 30, 2019 and 2018:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share data)
|
Weighted average
ordinary shares outstanding, basic
|
86.90
|
|
|
88.74
|
|
|
87.70
|
|
|
88.74
|
|
Dilutive shares
related to RSUs
|
0.01
|
|
|
0.23
|
|
|
0.15
|
|
|
0.24
|
|
Weighted average
ordinary shares outstanding, including
dilutive shares
|
86.91
|
|
|
88.97
|
|
|
87.85
|
|
|
88.98
|
|
Net income per share
attributable to Delphi Technologies:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.65
|
|
|
$
|
2.51
|
|
Diluted
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.65
|
|
|
$
|
2.51
|
|
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 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
($ in
millions)
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
Net income
attributable to Delphi
Technologies
|
$
|
14
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
57
|
|
|
|
|
$
|
223
|
|
|
|
Net income
attributable to noncontrolling
interest
|
3
|
|
|
|
|
4
|
|
|
|
|
10
|
|
|
|
|
15
|
|
|
|
Net income
|
17
|
|
|
|
|
43
|
|
|
|
|
67
|
|
|
|
|
238
|
|
|
|
Equity income, net of
tax
|
(1)
|
|
|
|
|
—
|
|
|
|
|
(2)
|
|
|
|
|
(6)
|
|
|
|
Income tax
expense
|
21
|
|
|
|
|
12
|
|
|
|
|
43
|
|
|
|
|
54
|
|
|
|
Other (income)
expense, net
|
(8)
|
|
|
|
|
6
|
|
|
|
|
(4)
|
|
|
|
|
(4)
|
|
|
|
Interest
expense
|
16
|
|
|
|
|
20
|
|
|
|
|
52
|
|
|
|
|
59
|
|
|
|
Operating
income
|
45
|
|
|
4.4
|
%
|
|
81
|
|
|
7.0
|
%
|
|
156
|
|
|
4.7
|
%
|
|
341
|
|
|
9.2
|
%
|
Restructuring
|
13
|
|
|
|
|
5
|
|
|
|
|
21
|
|
|
|
|
28
|
|
|
|
Separation costs
(1)
|
10
|
|
|
|
|
22
|
|
|
|
|
41
|
|
|
|
|
53
|
|
|
|
Asset
impairments
|
1
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|
|
|
1
|
|
|
|
Pension charges
(2)
|
2
|
|
|
|
|
—
|
|
|
|
|
12
|
|
|
|
|
—
|
|
|
|
Adjusted operating
income
|
$
|
71
|
|
|
6.9
|
%
|
|
$
|
108
|
|
|
9.3
|
%
|
|
$
|
239
|
|
|
7.2
|
%
|
|
$
|
423
|
|
|
11.5
|
%
|
(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
September 30, 2019
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
26
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
45
|
|
Restructuring
|
12
|
|
|
1
|
|
|
—
|
|
|
13
|
|
Separation costs
(1)
|
8
|
|
|
2
|
|
|
—
|
|
|
10
|
|
Asset
impairments
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Pension charges
(2)
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Adjusted operating
income
|
$
|
49
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
52
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
66
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
81
|
|
Restructuring
|
9
|
|
|
(4)
|
|
|
—
|
|
|
5
|
|
Separation costs
(1)
|
17
|
|
|
5
|
|
|
—
|
|
|
22
|
|
Adjusted operating
income
|
$
|
92
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
46
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
116
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
156
|
|
Restructuring
|
19
|
|
|
2
|
|
|
—
|
|
|
21
|
|
Separation costs
(1)
|
35
|
|
|
6
|
|
|
—
|
|
|
41
|
|
Asset
impairments
|
8
|
|
|
1
|
|
|
—
|
|
|
9
|
|
Pension charges
(2)
|
11
|
|
|
1
|
|
|
—
|
|
|
12
|
|
Adjusted operating
income
|
$
|
189
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
239
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
159
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
Powertrain
Systems
|
|
Aftermarket
|
|
Eliminations
and Other
|
|
Total
|
Operating
income
|
$
|
294
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
341
|
|
Restructuring
|
31
|
|
|
(3)
|
|
|
—
|
|
|
28
|
|
Separation costs
(1)
|
42
|
|
|
11
|
|
|
—
|
|
|
53
|
|
Asset
impairments
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Adjusted operating
income
|
$
|
368
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
423
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization (3)
|
$
|
142
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
145
|
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in millions,
except per share amounts)
|
Net income
attributable to Delphi Technologies
|
$
|
14
|
|
|
$
|
39
|
|
|
$
|
57
|
|
|
$
|
223
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
Restructuring
|
13
|
|
|
5
|
|
|
21
|
|
|
28
|
|
Separation costs
(1)
|
10
|
|
|
22
|
|
|
41
|
|
|
53
|
|
Asset
impairments
|
1
|
|
|
—
|
|
|
9
|
|
|
1
|
|
Pension charges
(2)
|
2
|
|
|
—
|
|
|
27
|
|
|
—
|
|
Tax adjustments
(3)
|
9
|
|
|
(2)
|
|
|
4
|
|
|
(10)
|
|
Adjusted net income
attributable to Delphi Technologies
|
$
|
49
|
|
|
$
|
64
|
|
|
$
|
159
|
|
|
$
|
295
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
86.91
|
|
|
88.97
|
|
|
87.85
|
|
|
88.98
|
|
Diluted net income
per share attributable to Delphi
Technologies
|
$
|
0.16
|
|
|
$
|
0.44
|
|
|
$
|
0.65
|
|
|
$
|
2.51
|
|
Adjusted net income
per share
|
$
|
0.56
|
|
|
$
|
0.72
|
|
|
$
|
1.81
|
|
|
$
|
3.32
|
|
|
|
(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 an
adjustment to income tax expense related to the tax impact of a
one-time intercompany transaction, changes in tax law recognized at
the date of enactment, adjustments to provisional amounts recorded
in 2017 related to the U.S. Tax Cuts and Jobs Act and 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-third-quarter-results-announces-cost-reduction-plan-to-accelerate-profitable-growth-300948699.html
SOURCE Delphi Technologies