LAKE FOREST, Ill., May 6, 2021 /PRNewswire/ -- Tenneco (NYSE:
TEN) today announced results for the first quarter ended
March 31, 2021, including the
following:
- First quarter 2021 total revenue climbed 23% year-over-year to
$4.7 billion. Value-add revenue for
the first quarter 2021 increased to $3.6
billion, 13% higher versus the first quarter of last year,
excluding positive currency impact of $104
million.
- The Company reported first quarter 2021 net income of
$65 million, or $0.79 per diluted share, versus a net loss of
$839 million or $(10.34) per diluted share last year. Adjusted
net income for the first quarter 2021 was $90 million, or $1.09 per diluted share.
- First quarter 2021 EBIT* was $204
million, compared with a loss of $845
million in first quarter 2020. EBIT as a percent of revenue
increased to 4.3% versus -22.0% in the prior year.
- First quarter 2021 adjusted EBITDA** jumped 62% to $388 million, compared to $239 million in the first quarter of the prior
year. Adjusted EBITDA as a percent of value-add revenue was 10.7%,
a 310 basis point increase year-over-year.
- Seasonally better first quarter 2021 cash flow and higher
earnings resulted in a 0.4x improvement in net leverage ratio
compared to December 31, 2020.
- Quarter-end liquidity of $2.1
billion, including no balance drawn on the $1.5 billion revolving credit facility.
- During the quarter, the Company completed refinancing to extend
debt maturities of $800 million from
2024 to 2029, enhancing the Company's maturity profile and
increasing financial flexibility.
Tenneco posts robust Q1 revenue growth, margin expansion, and
raises 2021 full year guidance.
"The Tenneco team continues to build on the positive momentum
from the second half of last year and delivered strong Q1
results. Our disciplined performance focus, including our
Accelerate+ program, resulted in margin expansion in all operating
segments and better free cash flow performance," said Brian Kesseler, Tenneco CEO. "We're proud of the
dedication of our team and their continuing progress on performance
improvement."
Outlook
Tenneco is raising its full-year 2021
financial outlook***, and providing an outlook for the second
quarter 2021:
Full Year 2021 -
Revised
|
|
Second Quarter
2021
|
Revenue
|
$17.6-18.1B
|
|
Revenue
|
$4.35-4.55B
|
Value-Add
Revenue
|
$13.5-14B
|
|
Value-Add
Revenue
|
$3.3-3.5B
|
Adjusted
EBITDA**
|
$1.35-1.45B
|
|
Adjusted
EBITDA**
|
$325-355M
|
Net Debt
(1)
|
Less than
$4.2B
|
|
Net Leverage
Target
|
~3.0x
|
|
(1) Total debt net of
total cash balances.
|
* EBIT: Earnings
before interest expense, income taxes and noncontrolling
interests.
|
** Adjusted EBITDA:
Adjusted earnings before interest expense, income taxes,
noncontrolling interests, and depreciation and
amortization.
|
*** At the midpoint,
the Company estimates 2021 value-add adjusted EBITDA margin will
increase 150 basis points year-over-year to 10.2%, a 20 basis point
improvement from prior guidance.
|
"Based on our strong first quarter performance we are raising
our full year 2021 guidance with improved revenue, margin and cash
flow," Kesseler added. "We remain laser-focused on creating
shareholder value in the near-term through debt reduction, and
long-term by driving sustained growth from prioritized investments
in the Motorparts, Performance Solutions and CTOHI business
lines."
Earnings Conference Call Details
The Company will
report its first quarter 2021 financial results before the market
opens on Thursday, May 6, 2021 and
host a webcast conference call the same day at 9:30 a.m. ET. The purpose of the call is to
discuss the Company's financial results for the first quarter 2021,
as well as to provide other information regarding the company's
outlook.
A live "listen only" webcast and presentation materials will be
available on the investor section of the company's website at
https://investors.tenneco.com. An archive of the webcast will be
available approximately one hour after conclusion of the call for
one year.
Telephone participants are encouraged to pre-register for the
conference call using the following link:
https://dpregister.com/sreg/10154604/e68fe5b068
Callers who pre-register will be given a conference passcode and
unique PIN to gain immediate access to the call and bypass the live
operator. Participants may pre-register at any time,
including up to and after the call start time.
Those without internet access or unable to pre-register may dial
in, using the passcode "Tenneco Inc."
PARTICIPANT DIAL IN (TOLL
FREE): 1-833-366-1121
PARTICIPANT INTERNATIONAL DIAL IN: 1-412-902-6733
Annual Meeting
The Tenneco Board of Directors has
scheduled the company's annual meeting of shareholders for
Friday, May 14, 2021 at 10:00 a.m. CT. The record date for shareholders
eligible to vote at the meeting is March 24,
2021. This year's annual meeting will be held entirely
online to allow for greater participation in light of the public
health impact of the COVID-19 pandemic.
Attachment 1
Statements of Income (Loss) – 3
months
Balance Sheets
Statements of Cash Flows – 3 Months
Attachment 2
Reconciliation of GAAP to Non-GAAP
Earnings Measures – 3 Months
Reconciliation of GAAP Revenue and Earnings to Non-GAAP Revenue and
Earnings Measures – 3 Months
Reconciliation of GAAP Revenue to Non-GAAP Revenue Measures – 3
Months
Reconciliation of Non-GAAP Measures – Debt Net of Total
Cash/Adjusted LTM EBITDA including noncontrolling interests
Reconciliation of GAAP to Non-GAAP Revenue Measures – Original
Equipment, Original Equipment Service and Aftermarket Revenue – 3
Months
Reconciliation of GAAP to Non-GAAP Revenue and Earnings Measures
– Q2, Q3, Q4 and FY 2020 Recast
About Tenneco
Tenneco is one of the world's leading
designers, manufacturers and marketers of automotive products for
original equipment and aftermarket customers, with full year 2020
revenues of $15.4 billion and
approximately 73,000 team members working at more than 270 sites
worldwide. Through our four business groups, Motorparts,
Performance Solutions♦, Clean Air and Powertrain,
Tenneco is driving advancements in global mobility by delivering
technology solutions for diversified global markets, including
light vehicle, commercial truck, off-highway, industrial,
motorsport and the aftermarket.
Visit www.tenneco.com to learn more.
Investors and others should note that Tenneco routinely posts
important information on its website and considers the Investor
section, www.investors.tenneco.com, a channel of
distribution.
♦ Please see attachment 1 for information on the name
change of the Ride Performance segment to "Performance
Solutions."
About Guidance
Revenue estimates and other
forecasted information in this release are based on OE
manufacturers' programs that have been formally awarded to the
company; programs where Tenneco is highly confident that it will be
awarded business based on informal customer indications consistent
with past practices; and Tenneco's status as supplier for the
existing program and its relationship with the customer. This
information is also based on anticipated vehicle production levels
and pricing, including precious metals pricing and the impact of
material cost changes. Unless otherwise indicated, our methodology
does not attempt to forecast currency fluctuations, and
accordingly, reflects constant currency. Certain elements of the
restructuring and related expenses, legal settlements, substrate
pricing, and other unusual charges we incur from time to time
cannot be forecasted accurately. In this respect, we are not
able to forecast corresponding GAAP measures without unreasonable
efforts on account of these factors and other factors not in our
control.
Safe Harbor
This press release contains forward-looking statements. The
words "will," "would," "could," "expect," "anticipate," and similar
expressions (and variations thereof), identify these
forward-looking statements. These forward-looking statements are
based on the current expectations of the Company (including its
subsidiaries). Because these statements involve risks and
uncertainties, actual results may differ materially from the
expectations expressed in the forward-looking statements.
Important factors that could cause actual results to differ
materially from the expectations reflected in the forward-looking
statements include: general economic, business, market and social
conditions, including the effects of the COVID-19 pandemic;
disasters, local and global public health emergencies or other
catastrophic events, where we or our customers do business, and any
resultant disruptions; our ability (or inability) to successfully
execute cost reduction, performance improvement and other plans,
including our plans in response to the COVID-19 pandemic and our
previously announced accelerated performance improvement plan
("Accelerate"), and to realize the anticipated benefits from these
plans; changes in capital availability or costs, including
increases in our cost of borrowing (i.e., interest rate increases),
the amount of our debt, our ability to access capital markets at
favorable rates, and the credit ratings of our debt and our
financial flexibility to respond to COVID-19 pandemic; our ability
to maintain compliance with the agreements governing our
indebtedness and otherwise have sufficient liquidity through the
COVID-19 pandemic; our working capital requirements; our ability to
source and procure needed materials, components and other products,
and services in accordance with customer demand and at competitive
prices; the cost and outcome of existing and any future claims,
legal proceedings or investigations; changes in consumer demand for
our OE products or aftermarket products, prices and our ability to
have our products included on top selling vehicles, including any
shifts in consumer preferences; the continued evolution of the
automotive industry towards car and ride sharing and autonomous
vehicles; to the announced plans, in an effort to reduce greenhouse
gas emissions, of governments and vehicle manufacturers to limit
production of diesel and gasoline powered vehicles in various
national and local jurisdictions globally; the cyclical
nature of the global vehicle industry, including the performance of
the global aftermarket sector and the impact of vehicle parts'
longer product lives; changes in automotive and commercial vehicle
manufacturers' production rates and their actual and forecasted
requirements for our products, due to difficult economic conditions
and/or regulatory or legal changes affecting internal combustion
engines and/or aftermarket products; our dependence on certain
large customers, including the loss of any of our large OE
manufacturer customers (on whom we depend for a substantial portion
of our revenues), or the loss of market shares by these customers
if we are unable to achieve increased sales to other OE-customers
or any change in customer demand due to delays in the adoption or
enforcement of worldwide emissions regulations; the overall highly
competitive nature of the automotive and commercial vehicle parts
industries, and any resultant inability to realize the sales
represented by our awarded book of business (which is based on
anticipated pricing and volumes over the life of the applicable
program); risks inherent in operating a multi-national company;
damage to the reputation of one or more of our leading brands;
industry-wide strikes, labor disruptions at our facilities or any
labor or other economic disruptions at any of our significant
customers or suppliers or any of our customers' other suppliers;
changes in distribution channels or competitive conditions in the
markets and countries where we operate; customer acceptance of new
products; our ability to successfully integrate, and benefit from,
any acquisitions that we complete; the potential impairment in the
carrying value of our long-lived assets, goodwill, and other
intangible assets or the inability to fully realize our deferred
tax assets; increases in the costs of raw materials or components,
including our ability to successfully reduce the impact of any such
cost increases through materials substitutions, cost reduction
initiatives, customer recovery and other methods; the impact of the
extensive, increasing, and changing laws and regulations to which
we are subject, including environmental laws and regulations, which
may result in our incurrence of environmental liabilities in excess
of the amount reserved or increased costs or loss of revenues
relating to products subject to changing regulation; and the
timing and occurrence (or non-occurrence) of other transactions,
events and circumstances which may be beyond our control.
In addition, statements regarding the Company's ongoing
review of strategic alternatives and the potential separation of
the Company into a powertrain technology company and an aftermarket
and ride performance company constitute forward-looking statements.
Important factors that could cause actual results to differ
materially from the expectations reflected in the forward-looking
statements include (in addition to the risks set forth above): the
ability to identify and consummate strategic alternatives that
yield additional value for shareholders; the timing, benefits and
outcome of the Company's strategic review process; the structure,
terms and specific risk and uncertainties associated with any
potential strategic alternative; potential disruptions in our
business and stock price as a result of our exploration, review and
pursuit of any strategic alternatives; the possibility that the
Company may not complete a separation of the aftermarket and ride
performance business from the powertrain technology business (or
achieve some or all of the anticipated benefits of such a
separation on the timeline contemplated or at all); the ability to
retain and hire key personnel and maintain relationships with
customers, suppliers or other business partners; the potential
diversion of management's attention resulting from a separation or
other strategic alternative; the risk the combined company and each
separate company following a separation will underperform relative
to our expectations; the ongoing transaction costs and risk that we
may incur greater costs following a separation of the business or
other strategic alternative; and the risk a separation is
determined to be a taxable transaction.
The risks included here are not exhaustive. The Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date of this press
release. Additional information regarding these risk factors and
uncertainties is, and will be, detailed from time to time in the
Company's SEC filings, including but not limited to its annual
report on Form 10-K for the year ended December 31, 2020.
Investor inquiries:
Linae Golla
847-482-5162
lgolla@tenneco.com
Rich Kwas
248-849-1340
rich.kwas@tenneco.com
Media inquiries:
Bill
Dawson
847-482-5807
bdawson@tenneco.com
ATTACHMENT
1
|
TENNECO
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
Unaudited
|
(millions, except per
share amounts)
|
|
|
Three Months
Ended
March
31,
|
|
2021
|
|
2020*
|
Net sales and
operating revenues:
|
|
|
|
Motorparts
|
$
|
719
|
|
|
$
|
706
|
|
Performance
Solutions
|
787
|
|
|
669
|
|
Clean Air - Value-add
revenues
|
1,036
|
|
|
845
|
|
Clean Air - Substrate
sales
|
1,088
|
|
|
700
|
|
Powertrain
|
1,101
|
|
|
916
|
|
Total net sales and operating revenues
|
4,731
|
|
|
3,836
|
|
Costs and
expenses:
|
|
|
|
Cost of
sales (exclusive of depreciation and amortization)
|
4,061
|
|
|
3,339
|
|
Selling,
general, and administrative
|
255
|
|
|
249
|
|
Depreciation and amortization
|
155
|
|
|
171
|
|
Engineering, research, and development
|
72
|
|
|
77
|
|
Restructuring charges, net and asset impairments
|
25
|
|
|
484
|
|
Goodwill
and intangible impairment charges
|
—
|
|
|
383
|
|
Total costs and expenses
|
4,568
|
|
|
4,703
|
|
Other income
(expense):
|
|
|
|
Non-service pension
and other postretirement benefit (costs) credits
|
3
|
|
|
1
|
|
Equity in earnings
(losses) of nonconsolidated affiliates, net of tax
|
22
|
|
|
13
|
|
Gain (loss) on
extinguishment of debt
|
8
|
|
|
—
|
|
Other income
(expense), net
|
8
|
|
|
8
|
|
|
41
|
|
|
22
|
|
Earnings (loss)
before interest expense, income taxes, and noncontrolling
interests
|
204
|
|
|
(845)
|
|
Interest
expense
|
(70)
|
|
|
(75)
|
|
Earnings (loss)
before income taxes and noncontrolling interests
|
134
|
|
|
(920)
|
|
Income tax (expense)
benefit
|
(47)
|
|
|
94
|
|
Net income
(loss)
|
87
|
|
|
(826)
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
22
|
|
|
13
|
|
Net income (loss)
attributable to Tenneco Inc.
|
$
|
65
|
|
|
$
|
(839)
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
Earnings (loss) per
share
|
$
|
0.80
|
|
|
$
|
(10.34)
|
|
Weighted average
shares outstanding
|
82.0
|
|
|
81.2
|
|
Diluted earnings
(loss) per share:
|
|
|
|
Earnings (loss) per
share
|
$
|
0.79
|
|
|
$
|
(10.34)
|
|
Weighted average
shares outstanding
|
82.5
|
|
|
81.2
|
|
_______________________________________
|
* Beginning in the
first quarter of 2021, the Company made a change to its operating
segments. This change consisted of moving a reporting unit within
the Powertrain segment to the Ride Performance segment. In
addition, with this change to its segments, Ride Performance was
renamed Performance Solutions. As such, prior period operating
segment results have been conformed to reflect the Company's
current operating segments.
|
ATTACHMENT
1
|
TENNECO
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
(dollars in
millions)
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
626
|
|
|
$
|
798
|
|
|
Restricted
cash
|
5
|
|
|
5
|
|
|
Receivables,
net
|
2,822
|
|
(a)
|
2,528
|
|
(a)
|
Inventories
|
1,830
|
|
|
1,743
|
|
|
Prepayments and other
current assets
|
589
|
|
|
619
|
|
|
Other noncurrent
assets
|
3,010
|
|
|
3,102
|
|
|
Property, plant, and
equipment, net
|
2,955
|
|
|
3,057
|
|
|
Total
assets
|
$
|
11,837
|
|
|
$
|
11,852
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Short-term debt,
including current maturities of long-term debt
|
$
|
124
|
|
|
$
|
162
|
|
|
Accounts
payable
|
3,090
|
|
|
2,917
|
|
|
Accrued compensation
and employee benefits
|
431
|
|
|
365
|
|
|
Accrued income
taxes
|
65
|
|
|
54
|
|
|
Accrued expenses and
other current liabilities
|
1,053
|
|
|
1,188
|
|
|
Long-term
debt
|
5,111
|
|
(b)
|
5,171
|
|
(b)
|
Deferred income
taxes
|
94
|
|
|
89
|
|
|
Pension and
postretirement benefits
|
1,062
|
|
|
1,101
|
|
|
Deferred credits and
other liabilities
|
511
|
|
|
546
|
|
|
Redeemable
noncontrolling interests
|
87
|
|
|
78
|
|
|
Total Tenneco Inc.
shareholders' equity (deficit)
|
(96)
|
|
|
(119)
|
|
|
Noncontrolling
interests
|
305
|
|
|
300
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
$
|
11,837
|
|
|
$
|
11,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
|
(a) Accounts
receivable net of:
|
|
|
|
|
Accounts receivable
outstanding and derecognized
|
$
|
976
|
|
|
$
|
956
|
|
|
|
|
|
|
|
(b) Long-term debt
composed of:
|
|
|
|
|
Revolver
Borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
LIBOR plus 2.25% Term
Loan A due 2019 through 2023(1)
|
1,490
|
|
|
1,520
|
|
|
LIBOR plus 3.00% Term
Loan B due 2019 through 2025
|
1,610
|
|
|
1,612
|
|
|
$225 million of 5.375%
Senior Notes due 2024
|
223
|
|
|
223
|
|
|
$500 million of 5.000%
Senior Notes due 2026
|
495
|
|
|
494
|
|
|
€300 million of
Euribor plus 4.875% Euro Floating Rate Notes due
2024(2)
|
—
|
|
|
370
|
|
|
€350 million of 5.000%
Euro Fixed Rate Notes due 2024(2)
|
—
|
|
|
445
|
|
|
$500 million of
7.875% Senior Secured Notes due 2029
|
490
|
|
|
489
|
|
|
$800 million of
5.125% Senior Secured Notes due 2029(3)
|
786
|
|
|
—
|
|
|
Other Debt, primarily
foreign instruments
|
23
|
|
|
23
|
|
|
|
5,117
|
|
|
5,176
|
|
|
Less: maturities
classified as current
|
6
|
|
|
5
|
|
|
Total long-term
debt
|
$
|
5,111
|
|
|
$
|
5,171
|
|
|
____________________________
|
(1)
|
The interest rate on
Term Loan A at December 31, 2020 was LIBOR plus 2.50%.
|
(2)
|
The Company satisfied
and discharged all of its 4.875% Euro Floating Rate Notes due 2024
and 5.000% Euro Fixed Rate Notes due 2024 on March 17,
2021.
|
(3)
|
On March 17, 2021,
the Company issued $800 million aggregate principal amount of
5.125% senior secured notes due April 15, 2029.
|
ATTACHMENT
1
|
TENNECO
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Unaudited
|
(dollars in
millions)
|
|
|
Three Months Ended
March
31,
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
87
|
|
|
$
|
(826)
|
|
Adjustments to
reconcile net income (loss) to cash (used) provided by operating
activities:
|
|
|
|
Goodwill and
intangible impairment charges
|
—
|
|
|
383
|
|
Depreciation and
amortization
|
155
|
|
|
171
|
|
Deferred income
taxes
|
(4)
|
|
|
(166)
|
|
Stock-based
compensation
|
5
|
|
|
2
|
|
Restructuring charges
and asset impairments, net of cash paid
|
—
|
|
|
454
|
|
Change in pension and
other postretirement benefit plans
|
(1)
|
|
|
(19)
|
|
Equity in earnings of
nonconsolidated affiliates
|
(22)
|
|
|
(13)
|
|
Cash dividends
received from nonconsolidated affiliates
|
57
|
|
|
13
|
|
Loss (gain) on sale of
assets and other
|
(9)
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables
|
(452)
|
|
|
139
|
|
Inventories
|
(120)
|
|
|
(73)
|
|
Payables and accrued
expenses
|
240
|
|
|
(136)
|
|
Accrued interest and
accrued income taxes
|
8
|
|
|
29
|
|
Other assets and
liabilities
|
6
|
|
|
(110)
|
|
Net cash (used)
provided by operating activities
|
(50)
|
|
|
(152)
|
|
Investing
Activities
|
|
|
|
Proceeds from sale of
assets
|
7
|
|
|
2
|
|
Net proceeds from
sale of business
|
1
|
|
|
—
|
|
Cash payments for
property, plant, and equipment
|
(95)
|
|
|
(137)
|
|
Proceeds from
deferred purchase price of factored receivables
|
115
|
|
|
56
|
|
Other
|
—
|
|
|
2
|
|
Net cash (used)
provided by investing activities
|
28
|
|
|
(77)
|
|
Financing
Activities
|
|
|
|
Proceeds from term
loans and notes
|
813
|
|
|
67
|
|
Repayments of term
loans and notes
|
(862)
|
|
|
(84)
|
|
Debt issuance costs
of long-term debt
|
(11)
|
|
|
(8)
|
|
Borrowings on
revolving lines of credit
|
1,382
|
|
|
3,161
|
|
Payments on revolving
lines of credit
|
(1,394)
|
|
|
(2,659)
|
|
Issuance (repurchase)
of common shares
|
(2)
|
|
|
(1)
|
|
Net increase
(decrease) in bank overdrafts
|
—
|
|
|
(2)
|
|
Distributions to
noncontrolling interest partners
|
(7)
|
|
|
(2)
|
|
Other
|
(49)
|
|
|
11
|
|
Net cash (used)
provided by financing activities
|
(130)
|
|
|
483
|
|
Effect of foreign
exchange rate changes on cash, cash equivalents, and restricted
cash
|
(20)
|
|
|
(50)
|
|
Increase (decrease)
in cash, cash equivalents, and restricted cash
|
(172)
|
|
|
204
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
803
|
|
|
566
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
631
|
|
|
$
|
770
|
|
Supplemental Cash
Flow Information
|
|
|
|
Cash paid during the
period for interest
|
$
|
65
|
|
|
$
|
67
|
|
Cash paid during the
period for income taxes, net of refunds
|
$
|
46
|
|
|
$
|
41
|
|
Lease assets obtained
in exchange for new operating lease liabilities
|
$
|
15
|
|
|
$
|
51
|
|
Non-cash Investing
Activities
|
|
|
|
Period end balance of
accounts payable for property, plant, and equipment
|
$
|
91
|
|
|
$
|
96
|
|
Deferred purchase
price of receivables factored in the period
|
$
|
135
|
|
|
$
|
60
|
|
Reduction in assets
from redeemable noncontrolling interest transaction with
owner
|
$
|
—
|
|
|
$
|
53
|
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
GAAP(1) TO NON-GAAP EARNINGS
MEASURES(2)
|
Unaudited
|
(dollars in millions,
except per share amounts)
|
|
|
Q1
2021
|
|
Q1
2020
|
|
Net
income
(loss)
attributable
to Tenneco
Inc.
|
|
Per
Share
|
|
Net income
(loss)
attributable
to
noncontrolling
interests
|
|
Income
tax
(expense)
benefit
|
|
EBIT
|
|
EBITDA
(3)
|
|
Net
income
(loss)
attributable
to Tenneco
Inc.
|
|
Per
Share
|
|
Net income
(loss)
attributable
to
noncontrolling
interests
|
|
Income
tax
(expense)
benefit
|
|
EBIT
|
|
EBITDA
(3)
|
Earnings (Loss)
Measures
|
$
|
65
|
|
|
$
|
0.79
|
|
|
$
|
22
|
|
|
$
|
(47)
|
|
|
$
|
204
|
|
|
$
|
359
|
|
|
$
|
(839)
|
|
|
$
|
(10.34)
|
|
|
$
|
13
|
|
|
$
|
94
|
|
|
$
|
(845)
|
|
|
$
|
(674)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses (5)
|
28
|
|
|
0.33
|
|
|
—
|
|
|
(3)
|
|
|
31
|
|
|
28
|
|
|
31
|
|
|
0.38
|
|
|
—
|
|
|
(8)
|
|
|
39
|
|
|
34
|
|
Loss on sale of
business
|
—
|
|
|
0.01
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other costs
(including strategic and transaction related)
(6)
|
8
|
|
|
0.10
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
19
|
|
|
0.23
|
|
|
—
|
|
|
(6)
|
|
|
25
|
|
|
25
|
|
Gain on debt
extinguishment
|
(8)
|
|
|
(0.10)
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Goodwill and
intangibles impairment charge (7)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
366
|
|
|
4.52
|
|
|
5
|
|
|
(12)
|
|
|
383
|
|
|
383
|
|
Asset impairments
(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
371
|
|
|
4.57
|
|
|
7
|
|
|
(93)
|
|
|
471
|
|
|
471
|
|
Noncontrolling
interests adjustments (9)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
0.14
|
|
|
(11)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net tax
adjustments
|
(3)
|
|
|
(0.04)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
0.19
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
Adjusted Net income,
EPS, NCI, Tax, EBIT, and EBITDA (4)
|
$
|
90
|
|
|
$
|
1.09
|
|
|
$
|
22
|
|
|
$
|
(54)
|
|
|
$
|
236
|
|
|
$
|
388
|
|
|
$
|
(26)
|
|
|
$
|
(0.31)
|
|
|
$
|
14
|
|
|
$
|
(10)
|
|
|
$
|
73
|
|
|
$
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2021
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net income (loss)
attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
65
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
87
|
|
Income tax (expense)
benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
(47)
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(70)
|
|
EBIT, Earnings (Loss)
before interest expense, income taxes and noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
204
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
155
|
|
Total EBITDA
including noncontrolling interests (3)
|
$
|
102
|
|
|
$
|
43
|
|
|
$
|
149
|
|
|
$
|
115
|
|
|
$
|
409
|
|
|
$
|
(50)
|
|
|
$
|
359
|
|
Restructuring and
related expenses(5)
|
2
|
|
|
4
|
|
|
9
|
|
|
11
|
|
|
26
|
|
|
2
|
|
|
28
|
|
Loss on sale of
business
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Other costs (including
strategic and transaction related) (6)
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
9
|
|
|
8
|
|
Gain on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
|
(8)
|
|
Adjusted EBITDA
(4)
|
$
|
105
|
|
|
$
|
47
|
|
|
$
|
157
|
|
|
$
|
126
|
|
|
$
|
435
|
|
|
$
|
(47)
|
|
|
$
|
388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2020*
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net income (loss)
attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(839)
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
Net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(826)
|
|
Income tax (expense)
benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
94
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
(75)
|
|
EBIT, Earnings (Loss)
before interest expense, income taxes and noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
(845)
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
171
|
|
Total EBITDA
including noncontrolling interests (3)
|
$
|
(40)
|
|
|
$
|
(674)
|
|
|
$
|
99
|
|
|
$
|
27
|
|
|
$
|
(588)
|
|
|
$
|
(86)
|
|
|
$
|
(674)
|
|
Restructuring and
related expenses(5)
|
3
|
|
|
25
|
|
|
1
|
|
|
—
|
|
|
29
|
|
|
5
|
|
|
34
|
|
Goodwill and
intangible impairment charges (7)
|
110
|
|
|
232
|
|
|
—
|
|
|
41
|
|
|
383
|
|
|
—
|
|
|
383
|
|
Asset impairments
(8)
|
—
|
|
|
455
|
|
|
—
|
|
|
—
|
|
|
455
|
|
|
16
|
|
|
471
|
|
Other costs (including
strategic and transaction related) (6)
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
21
|
|
|
25
|
|
Adjusted EBITDA
(4)
|
$
|
73
|
|
|
$
|
38
|
|
|
$
|
104
|
|
|
$
|
68
|
|
|
$
|
283
|
|
|
$
|
(44)
|
|
|
$
|
239
|
|
___________________________________
|
* Beginning in the
first quarter of 2021, the Company made a change to its operating
segments. This change consisted of moving a reporting unit within
the Powertrain segment to the Ride Performance segment. In
addition, with this change to its segments, Ride Performance was
renamed Performance Solutions. As such, prior period operating
segment results have been conformed to reflect the Company's
current operating
segments.
|
|
(1) U.S. Generally
Accepted Accounting Principles.
|
|
(2) Tenneco presents
the above reconciliation of GAAP to non-GAAP earnings measures
primarily to reflect the results in a manner that allows a better
understanding of the results of operational activities separate
from the financial impact of decisions made for the long-term
benefit of the company and other items impacting comparability
between the periods. Adjustments similar to the ones reflected
above have been recorded in earlier periods, and similar types of
adjustments can reasonably be expected to be recorded in future
periods. Using only the non-GAAP earnings measures to analyze
earnings would have material limitations because its calculation is
based on the subjective determinations of management regarding the
nature and classification of events and circumstances that
investors may find material. Management compensates for these
limitations by utilizing both GAAP and non-GAAP earnings measures
reflected above to understand and analyze the results of the
business. The company believes investors find the non-GAAP
information helpful in understanding the ongoing performance of
operations separate from items that may have a disproportionate
positive or negative impact on the company's financial results in
any particular period.
|
|
(3) EBITDA including
noncontrolling interests represents income before interest expense,
income taxes, noncontrolling interests and depreciation and
amortization. EBITDA including noncontrolling interests is
not a calculation based upon GAAP. The amounts included in
the EBITDA including noncontrolling interests calculation, however,
are derived from amounts included in the historical statements of
income data. In addition, EBITDA including noncontrolling
interests should not be considered as an alternative to net income
attributable to Tenneco Inc. or operating income as an indicator of
the company's operating performance, or as an alternative to
operating cash flows as a measure of liquidity. Tenneco has
presented EBITDA including noncontrolling interests because it
regularly reviews EBITDA including noncontrolling interests as a
measure of the company's performance. In addition, Tenneco
believes its investors utilize and analyze the company's EBITDA
including noncontrolling interests for similar purposes.
Tenneco also believes EBITDA including noncontrolling interests
assists investors in comparing a company's performance on a
consistent basis without regard to depreciation and amortization,
which can vary significantly depending upon many factors.
However, the EBITDA including noncontrolling interests measure
presented may not always be comparable to similarly titled measures
reported by other companies due to differences in the components of
the calculation.
|
|
(4) Adjusted results
are presented in order to reflect the results in a manner that
allows a better understanding of operational activities separate
from the financial impact of decisions made for the long term
benefit of the company and other items impacting comparability
between periods. Similar adjustments have been recorded in
earlier periods and similar types of adjustments can reasonably be
expected to be recorded in future periods. The company
believes investors find the non-GAAP information helpful in
understanding the ongoing performance of operations separate from
items that may have a disproportionate positive or negative impact
on the company's financial results in any particular
period.
|
|
(5) Q1 2021 and Q1
2020 includes $3 million and $5 million of accelerated depreciation
related to plant closures, respectively.
|
|
(6) Amounts in Q1
2020 included costs related to the acquisitions and expected
separation.
|
|
(7) Non-cash asset
impairment charge related to goodwill and intangibles.
|
|
(8) Asset impairment
charges.
|
|
(9) Amount relates to
adjustments made to mark certain redeemable noncontrolling
interests to their redemption values.
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
GAAP(1) REVENUE AND EARNINGS TO NON-GAAP REVENUE AND
EARNINGS MEASURES(2)
|
UNAUDITED
|
(dollars in millions
except percents)
|
|
|
Q1
2021
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
719
|
|
|
$
|
787
|
|
|
$
|
2,124
|
|
|
$
|
1,101
|
|
|
$
|
4,731
|
|
|
$
|
—
|
|
|
$
|
4,731
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
1,088
|
|
|
—
|
|
|
1,088
|
|
|
—
|
|
|
1,088
|
|
Value-add
revenues
|
$
|
719
|
|
|
$
|
787
|
|
|
$
|
1,036
|
|
|
$
|
1,101
|
|
|
$
|
3,643
|
|
|
$
|
—
|
|
|
$
|
3,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
102
|
|
|
$
|
43
|
|
|
$
|
149
|
|
|
$
|
115
|
|
|
$
|
409
|
|
|
$
|
(50)
|
|
|
$
|
359
|
|
EBITDA as a %
of revenue
|
14.2%
|
|
|
5.5%
|
|
|
7.0%
|
|
|
10.4%
|
|
|
8.6%
|
|
|
|
|
7.6%
|
|
EBITDA as a %
of value-add revenue
|
14.2%
|
|
|
5.5%
|
|
|
14.4%
|
|
|
10.4%
|
|
|
11.2%
|
|
|
|
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
105
|
|
|
$
|
47
|
|
|
$
|
157
|
|
|
$
|
126
|
|
|
$
|
435
|
|
|
$
|
(47)
|
|
|
$
|
388
|
|
Adjusted EBITDA
as a % of revenue
|
14.6%
|
|
|
6.0%
|
|
|
7.4%
|
|
|
11.4%
|
|
|
9.2%
|
|
|
|
|
8.2%
|
|
Adjusted EBITDA
as a % of value-add revenue
|
14.6%
|
|
|
6.0%
|
|
|
15.2%
|
|
|
11.4%
|
|
|
11.9%
|
|
|
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2020
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
706
|
|
|
$
|
669
|
|
|
$
|
1,545
|
|
|
$
|
916
|
|
|
$
|
3,836
|
|
|
$
|
—
|
|
|
$
|
3,836
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
700
|
|
|
—
|
|
|
700
|
|
|
—
|
|
|
700
|
|
Value-add
revenues
|
$
|
706
|
|
|
$
|
669
|
|
|
$
|
845
|
|
|
$
|
916
|
|
|
$
|
3,136
|
|
|
$
|
—
|
|
|
$
|
3,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
(40)
|
|
|
$
|
(674)
|
|
|
$
|
99
|
|
|
$
|
27
|
|
|
$
|
(588)
|
|
|
$
|
(86)
|
|
|
$
|
(674)
|
|
EBITDA as a %
of revenue
|
(5.7)%
|
|
|
(100.7)%
|
|
|
6.4%
|
|
|
2.9%
|
|
|
(15.3)%
|
|
|
|
|
(17.6)%
|
|
EBITDA as a %
of value-add revenue
|
(5.7)%
|
|
|
(100.7)%
|
|
|
11.7%
|
|
|
2.9%
|
|
|
(18.8)%
|
|
|
|
|
(21.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
73
|
|
|
$
|
38
|
|
|
$
|
104
|
|
|
$
|
68
|
|
|
$
|
283
|
|
|
$
|
(44)
|
|
|
$
|
239
|
|
Adjusted EBITDA
as a % of revenue
|
10.3%
|
|
|
5.7%
|
|
|
6.7%
|
|
|
7.4%
|
|
|
7.4%
|
|
|
|
|
6.2%
|
|
Adjusted EBITDA
as a % of value-add revenue
|
10.3%
|
|
|
5.7%
|
|
|
12.3%
|
|
|
7.4%
|
|
|
9.0%
|
|
|
|
|
7.6%
|
|
_____________________________________
|
(1) U.S. Generally
Accepted Accounting Principles.
|
|
(2) Tenneco presents
the above reconciliation of revenues in order to reflect EBITDA and
adjusted EBITDA as a percent of both total revenues and value-add
revenues. Substrate sales include precious metals pricing,
which may be volatile. Substrate sales occur when, at the
direction of its OE customers, Tenneco purchases catalytic
converters or components thereof from suppliers, uses them in its
manufacturing processes and sells them as part of the completed
system. While Tenneco original equipment customers assume the risk
of this volatility, it impacts reported revenue. Excluding
substrate sales removes this impact. Further, presenting
EBITDA and adjusted EBITDA as a percent of value-add revenue
assists investors in evaluating the company's operational
performance without the impact of such substrate sales. See
prior pages for a discussion of EBITDA and adjusted
EBITDA.
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
GAAP(1) TO NON-GAAP REVENUE
MEASURES(2)
|
Unaudited
|
(dollars in millions
except percents)
|
|
|
Q1 2020
Value-
add
Revenues
|
|
Currency
|
|
Volume,
Mix
and
Other
|
|
Q1 2021
Value-
add
Revenues
|
|
%
Change
increase
(decrease)
excluding
currency
|
Motorparts
|
$
|
706
|
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
719
|
|
|
0.6%
|
Performance
Solutions
|
669
|
|
|
27
|
|
|
91
|
|
|
787
|
|
|
13.6%
|
Clean Air
|
845
|
|
|
27
|
|
|
164
|
|
|
1,036
|
|
|
19.4%
|
Powertrain
|
916
|
|
|
41
|
|
|
144
|
|
|
1,101
|
|
|
15.7%
|
Total Tenneco
Inc.
|
$
|
3,136
|
|
|
$
|
104
|
|
|
$
|
403
|
|
|
$
|
3,643
|
|
|
12.9%
|
________________________________
|
(1) U.S. Generally
Accepted Accounting Principles.
|
|
(2) Tenneco presents
the above reconciliation of revenues in order to reflect value-add
revenues separately from the effects of doing business in
currencies other than the U.S. dollar. Additionally,
substrate sales include precious metals pricing, which may be
volatile. Substrate sales occur when, at the direction of its
OE customers, Tenneco purchases catalytic converters or components
thereof from suppliers, uses them in its manufacturing processes
and sells them as part of the completed system. While Tenneco
original equipment customers assume the risk of this volatility, it
impacts reported revenue. Excluding substrate sales removes
this impact. Tenneco uses this information to analyze the
trend in revenues before these factors. Tenneco believes
investors find this information useful in understanding period to
period comparisons in the company's revenues.
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
NON-GAAP MEASURES
|
Debt net of total
cash / Adjusted LTM EBITDA including noncontrolling
interests
|
Unaudited
|
(dollars in millions
except ratios)
|
|
|
March
31,
2021
|
|
March
31,
2020
|
Total debt
|
$
|
5,235
|
|
|
$
|
6,012
|
|
Total cash, cash
equivalents and restricted cash (total cash)
|
631
|
|
|
770
|
|
Debt net of total
cash balances (1)
|
$
|
4,604
|
|
|
$
|
5,242
|
|
Adjusted LTM EBITDA
including noncontrolling interests (2) (3)
|
$
|
1,194
|
|
|
$
|
1,327
|
|
Ratio of debt net of
total cash balances to adjusted LTM EBITDA including noncontrolling
interests (4)
|
3.9x
|
|
|
4.0x
|
|
|
Q2
2020
|
|
Q3
2020
|
|
Q4
2020
|
|
Q1
2021
|
|
Q1 2021
LTM
|
Net income (loss)
attributable to Tenneco Inc.
|
$
|
(350)
|
|
|
$
|
(499)
|
|
|
$
|
167
|
|
|
$
|
65
|
|
|
$
|
(617)
|
|
Net income (loss)
attributable to noncontrolling interests
|
10
|
|
|
19
|
|
|
19
|
|
|
22
|
|
|
70
|
|
Net income
(loss)
|
(340)
|
|
|
(480)
|
|
|
186
|
|
|
87
|
|
|
(547)
|
|
Income tax (expense)
benefit
|
101
|
|
|
(648)
|
|
|
(6)
|
|
|
(47)
|
|
|
(600)
|
|
Interest
expense
|
(66)
|
|
|
(68)
|
|
|
(68)
|
|
|
(70)
|
|
|
(272)
|
|
EBIT, Earnings (Loss)
before interest expense, income taxes and noncontrolling
interests
|
(375)
|
|
|
236
|
|
|
260
|
|
|
204
|
|
|
325
|
|
Depreciation and
amortization
|
159
|
|
|
151
|
|
|
158
|
|
|
155
|
|
|
623
|
|
Total EBITDA
including noncontrolling interests (2)
|
$
|
(216)
|
|
|
$
|
387
|
|
|
$
|
418
|
|
|
$
|
359
|
|
|
$
|
948
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
105
|
|
|
24
|
|
|
6
|
|
|
28
|
|
|
163
|
|
Inventory write-down
(5)
|
82
|
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
73
|
|
Other costs
(including strategic and transaction related)
(6)
|
8
|
|
|
4
|
|
|
1
|
|
|
8
|
|
|
21
|
|
Asset impairments
(7)
|
29
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
32
|
|
Antitrust reserve
change in estimate (8)
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
(Gain)/Loss on sale
of assets or business
|
—
|
|
|
—
|
|
|
(2)
|
|
|
1
|
|
|
(1)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(8)
|
|
|
(10)
|
|
OPEB curtailment
(9)
|
—
|
|
|
(21)
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
Total Adjusted EBITDA
including noncontrolling interests (3)
|
$
|
8
|
|
|
$
|
388
|
|
|
$
|
410
|
|
|
$
|
388
|
|
|
$
|
1,194
|
|
|
|
Q2
2019
|
|
Q3
2019
|
|
Q4
2019
|
|
Q1
2020
|
|
Q1 2020
LTM
|
Net income (loss)
attributable to Tenneco Inc.
|
$
|
26
|
|
|
$
|
70
|
|
|
$
|
(313)
|
|
|
$
|
(839)
|
|
|
$
|
(1,056)
|
|
Net income (loss)
attributable to noncontrolling interests
|
19
|
|
|
8
|
|
|
75
|
|
|
13
|
|
|
115
|
|
Net income
(loss)
|
45
|
|
|
78
|
|
|
(238)
|
|
|
(826)
|
|
|
(941)
|
|
Income tax (expense)
benefit
|
(14)
|
|
|
9
|
|
|
(14)
|
|
|
94
|
|
|
75
|
|
Interest
expense
|
(82)
|
|
|
(79)
|
|
|
(80)
|
|
|
(75)
|
|
|
(316)
|
|
EBIT, Earnings (Loss)
before interest expense, income taxes and noncontrolling
interests
|
141
|
|
|
148
|
|
|
(144)
|
|
|
(845)
|
|
|
(700)
|
|
Depreciation and
amortization
|
169
|
|
|
165
|
|
|
170
|
|
|
171
|
|
|
675
|
|
Total EBITDA
including noncontrolling interests (2)
|
$
|
310
|
|
|
$
|
313
|
|
|
$
|
26
|
|
|
$
|
(674)
|
|
|
$
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
57
|
|
|
28
|
|
|
36
|
|
|
34
|
|
|
155
|
|
Goodwill and
intangible impairment charges (10)
|
—
|
|
|
9
|
|
|
172
|
|
|
383
|
|
|
564
|
|
Asset impairments
(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
471
|
|
|
471
|
|
Other costs
(including strategic and transaction related)
(6)
|
27
|
|
|
30
|
|
|
30
|
|
|
25
|
|
|
112
|
|
Antitrust reserve
change in estimate (8)
|
—
|
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
Cost reduction
initiatives (11)
|
2
|
|
|
6
|
|
|
(1)
|
|
|
—
|
|
|
7
|
|
Costs to achieve
synergies (12)
|
7
|
|
|
7
|
|
|
8
|
|
|
—
|
|
|
22
|
|
Purchase accounting
charges (13)
|
3
|
|
|
11
|
|
|
2
|
|
|
—
|
|
|
16
|
|
Process harmonization
(14)
|
1
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
17
|
|
Pension adjustments
(15)
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Warranty charge
(16)
|
7
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Brazil tax credit
(17)
|
—
|
|
|
(22)
|
|
|
—
|
|
|
—
|
|
|
(22)
|
|
Out of period
adjustment (18)
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Impairment of assets
held for sale
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
Total Adjusted EBITDA
including noncontrolling interests (3)
|
$
|
414
|
|
|
$
|
387
|
|
|
$
|
287
|
|
|
$
|
239
|
|
|
$
|
1,327
|
|
_____________________________
|
(1) Tenneco presents
debt net of total cash balances because management believes it is a
useful measure of Tenneco's credit position and progress toward
reducing leverage. The calculation is limited in that the company
may not always be able to use cash to repay debt on a
dollar-for-dollar basis.
|
|
(2) EBITDA including
noncontrolling interests represents income before interest expense,
income taxes, noncontrolling interests and depreciation and
amortization. EBITDA including noncontrolling interests is not a
calculation based upon GAAP. The amounts included in the EBITDA
including noncontrolling interests calculation, however, are
derived from amounts included in the historical statements of
income data. In addition, EBITDA including noncontrolling interests
should not be considered as an alternative to net income (loss)
attributable to Tenneco Inc. or operating income as an indicator of
the company's operating performance, or as an alternative to
operating cash flows as a measure of liquidity. Tenneco has
presented EBITDA including noncontrolling interests because it
regularly reviews EBITDA including noncontrolling interests as a
measure of the company's performance. In addition, Tenneco believes
its investors utilize and analyze the company's EBITDA including
noncontrolling interests for similar purposes. Tenneco also
believes EBITDA including noncontrolling interests assists
investors in comparing a company's performance on a consistent
basis without regard to depreciation and amortization, which can
vary significantly depending upon many factors. However, the EBITDA
including noncontrolling interests measure presented may not always
be comparable to similarly titled measures reported by other
companies due to differences in the components of the
calculation.
|
|
(3) Adjusted EBITDA
including noncontrolling interests is presented in order to reflect
the results in a manner that allows a better understanding of
operational activities separate from the financial impact of
decisions made for the long term benefit of the company and other
items impacting comparability between the periods. Similar
adjustments to EBITDA including noncontrolling interests have been
recorded in earlier periods, and similar types of adjustments can
reasonably be expected to be recorded in future periods. The
company believes investors find the non-GAAP information helpful in
understanding the ongoing performance of operations separate from
items that may have a disproportionate positive or negative impact
on the company's financial results in any particular
period.
|
|
(4) Tenneco presents
the above reconciliation of the ratio of debt net of total cash to
Adjusted LTM EBITDA including noncontrolling interests to show
trends that investors may find useful in understanding the
company's ability to service its debt. For purposes of this
calculation, Adjusted LTM EBITDA including noncontrolling interests
is used as an indicator of the company's performance and debt net
of total cash is presented as an indicator of the company's credit
position and progress toward reducing the company's financial
leverage. This reconciliation is provided as supplemental
information and not intended to replace the company's existing
covenant ratios or any other financial measures that investors may
find useful in describing the company's financial position. See
notes (1), (2) and (3) for a description of the limitations of
using debt net of total cash, EBITDA including noncontrolling
interests and Adjusted EBITDA including noncontrolling
interests.
|
|
(5) Non-cash charge
to write-down inventory in the Motorparts segment in connection
with its initiative to rationalize its supply chain and
distribution network.
|
|
(6) Amounts in prior
periods included costs related to the acquisitions and expected
separation.
|
|
(7) Asset impairment
charges.
|
|
(8) Reduction in
estimated antitrust accrual.
|
|
(9) OPEB curtailment
as a result of an amended union agreement that eliminates
healthcare benefits for future retirees.
|
|
(10) Non-cash asset
impairment charge related to goodwill and intangibles.
|
|
(11) Costs related to
cost reduction initiatives.
|
|
(12) Costs to achieve
synergies related to the Acquisitions.
|
|
(13) This primarily
relates to a non-cash charge to cost of sales for the amortization
of the inventory fair value step-up recorded as part of the
Acquisitions.
|
|
(14) Charge due to
process harmonization.
|
|
(15) Charges related
to pension derisking and other adjustments.
|
|
(16) Charge related
to warranty. Although Tenneco regularly incurs warranty costs, this
specific charge is of an unusual nature in the period
incurred.
|
|
(17) Recovery of
value-added tax in a foreign jurisdiction.
|
|
(18) Inventory losses
attributable to prior periods.
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
GAAP(1) TO NON-GAAP REVENUE
MEASURES(2)
|
Unaudited
|
(dollars in
millions)
|
|
|
Q1
2021
|
|
Original
equipment
light vehicle
revenues
|
|
Original
equipment
commercial truck,
off-
highway,
industrial
and other
revenues
|
|
Aftermarket
&
original
equipment
service
revenues
|
|
Total
|
Net sales and
operating revenues
|
$
|
2,905
|
|
|
$
|
774
|
|
|
$
|
1,052
|
|
|
$
|
4,731
|
|
Less: Substrate
sales
|
906
|
|
|
149
|
|
|
33
|
|
|
1,088
|
|
Value-add
revenues
|
$
|
1,999
|
|
|
$
|
625
|
|
|
$
|
1,019
|
|
|
$
|
3,643
|
|
|
|
|
|
|
|
|
|
|
Q1 2020
(3)
|
|
Original
equipment
light vehicle
revenues
|
|
Original
equipment
commercial truck,
off-
highway,
industrial
and other
revenues
|
|
Aftermarket
&
original
equipment
service
revenues
|
|
Total
|
Net sales and
operating revenues
|
$
|
2,264
|
|
|
$
|
532
|
|
|
$
|
1,040
|
|
|
$
|
3,836
|
|
Less: Substrate
sales
|
573
|
|
|
107
|
|
|
20
|
|
|
700
|
|
Value-add
revenues
|
$
|
1,691
|
|
|
$
|
425
|
|
|
$
|
1,020
|
|
|
$
|
3,136
|
|
|
Q1
2020
Value-add
Revenues
|
|
Currency
|
|
Volume,
Mix
and
Other
|
|
Q1
2021
Value-add
Revenues
|
|
%
Change
increase
(decrease)
excluding
currency
|
Original equipment
light vehicle revenues
|
$
|
1,691
|
|
|
$
|
78
|
|
|
$
|
230
|
|
|
$
|
1,999
|
|
|
13.6%
|
Original equipment
commercial truck, off-highway, industrial and other
revenues
|
425
|
|
|
38
|
|
|
162
|
|
|
625
|
|
|
38.1%
|
Aftermarket &
original equipment service revenues
|
1,020
|
|
|
(12)
|
|
|
11
|
|
|
1,019
|
|
|
1.1%
|
Total Tenneco
Inc.
|
$
|
3,136
|
|
|
$
|
104
|
|
|
$
|
403
|
|
|
$
|
3,643
|
|
|
12.9%
|
________________________________________
|
(1) U.S. Generally
Accepted Accounting
Principles.
|
|
(2) Tenneco presents
the above reconciliation of revenues in order to reflect value-add
revenues separately from the effects of doing business in
currencies other than the U.S. dollar. Additionally,
substrate sales include precious metals pricing, which may be
volatile. Substrate sales occur when, at the direction of its
OE customers, Tenneco purchases catalytic converters or components
thereof from suppliers, uses them in its manufacturing processes
and sells them as part of the completed system. While Tenneco
original equipment customers assume the risk of this volatility, it
impacts reported revenue. Excluding substrate sales removes
this impact. Tenneco uses this information to analyze the
trend in revenues before these factors. Tenneco believes
investors find this information useful in understanding period to
period comparisons in the company's revenues.
|
|
(3) Prior to the
second quarter 2020, original equipment service revenues was
previously classified within original equipment light vehicle
revenues and original equipment commercial truck, off-highway,
industrial and other revenues.
|
ATTACHMENT
2
|
TENNECO
INC.
|
RECONCILIATION OF
GAAP(1) REVENUE AND EARNINGS TO NON-GAAP REVENUE
AND EARNINGS MEASURES(2) - Q2, Q3, Q4 & FY 2020
RECAST
|
Unaudited
|
(dollars in
millions)
|
|
|
Q2
2020
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
559
|
|
|
$
|
378
|
|
|
$
|
1,140
|
|
|
$
|
560
|
|
|
$
|
2,637
|
|
|
$
|
—
|
|
|
$
|
2,637
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
Value-add revenues
(3)
|
$
|
559
|
|
|
$
|
378
|
|
|
$
|
517
|
|
|
$
|
560
|
|
|
$
|
2,014
|
|
|
$
|
—
|
|
|
$
|
2,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Previously
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA
including noncontrolling interests (4)
|
$
|
(52)
|
|
|
$
|
(70)
|
|
|
$
|
17
|
|
|
$
|
(62)
|
|
|
$
|
(167)
|
|
|
$
|
(49)
|
|
|
$
|
(216)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
17
|
|
|
29
|
|
|
21
|
|
|
37
|
|
|
104
|
|
|
1
|
|
|
105
|
|
Inventory
write-down
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
—
|
|
|
82
|
|
Asset
impairments
|
24
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
28
|
|
|
1
|
|
|
29
|
|
Other costs (including
strategic and transaction related)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Adjusted EBITDA
(5)
|
$
|
71
|
|
|
$
|
(41)
|
|
|
$
|
38
|
|
|
$
|
(21)
|
|
|
$
|
47
|
|
|
$
|
(39)
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recasts for
Transfer of Business Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Total
EBITDA including noncontrolling interests
|
—
|
|
|
7
|
|
|
—
|
|
|
(7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Recast Total EBITDA
including noncontrolling interests (4)
|
(52)
|
|
|
(63)
|
|
|
17
|
|
|
(69)
|
|
|
(167)
|
|
|
(49)
|
|
|
(216)
|
|
Total adjustments (no
change from what is noted above)
|
123
|
|
|
29
|
|
|
21
|
|
|
41
|
|
|
214
|
|
|
10
|
|
|
224
|
|
Recast Adjusted
EBITDA (5)
|
$
|
71
|
|
|
$
|
(34)
|
|
|
$
|
38
|
|
|
$
|
(28)
|
|
|
$
|
47
|
|
|
$
|
(39)
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recast Adjusted
EBITDA as a % of value-add revenue (6)
|
12.7%
|
|
|
(9.0)%
|
|
|
7.4%
|
|
|
(5.0)%
|
|
|
2.3%
|
|
|
|
|
0.4%
|
|
|
|
Q3
2020
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
730
|
|
|
$
|
679
|
|
|
$
|
1,919
|
|
|
$
|
928
|
|
|
$
|
4,256
|
|
|
$
|
—
|
|
|
$
|
4,256
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
961
|
|
|
—
|
|
|
961
|
|
|
—
|
|
|
961
|
|
Value-add revenues
(3)
|
$
|
730
|
|
|
$
|
679
|
|
|
$
|
958
|
|
|
$
|
928
|
|
|
$
|
3,295
|
|
|
$
|
—
|
|
|
$
|
3,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Previously
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA
including noncontrolling interests (4)
|
$
|
138
|
|
|
$
|
23
|
|
|
$
|
149
|
|
|
$
|
111
|
|
|
$
|
421
|
|
|
$
|
(34)
|
|
|
$
|
387
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
(1)
|
|
|
11
|
|
|
1
|
|
|
13
|
|
|
24
|
|
|
—
|
|
|
24
|
|
Inventory
write-down
|
(9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
|
(9)
|
|
Asset
impairments
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
Other costs (including
strategic and transaction related)
|
—
|
|
|
(2)
|
|
|
(1)
|
|
|
—
|
|
|
(3)
|
|
|
7
|
|
|
4
|
|
OPEB
curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
(21)
|
|
Adjusted EBITDA
(5)
|
$
|
131
|
|
|
$
|
32
|
|
|
$
|
149
|
|
|
$
|
124
|
|
|
$
|
436
|
|
|
$
|
(48)
|
|
|
$
|
388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recasts for
Transfer of Business Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Total
EBITDA including noncontrolling interests
|
—
|
|
|
23
|
|
|
—
|
|
|
(23)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Recast Total EBITDA
including noncontrolling interests (4)
|
138
|
|
|
46
|
|
|
149
|
|
|
88
|
|
|
421
|
|
|
(34)
|
|
|
387
|
|
Total adjustments (no
change from what is noted above)
|
(7)
|
|
|
9
|
|
|
—
|
|
|
13
|
|
|
15
|
|
|
(14)
|
|
|
1
|
|
Recast Adjusted
EBITDA (5)
|
$
|
131
|
|
|
$
|
55
|
|
|
$
|
149
|
|
|
$
|
101
|
|
|
$
|
436
|
|
|
$
|
(48)
|
|
|
$
|
388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recast Adjusted
EBITDA as a % of value-add revenue (6)
|
17.9%
|
|
|
8.1%
|
|
|
15.6%
|
|
|
10.9%
|
|
|
13.2%
|
|
|
|
|
11.8%
|
|
|
|
Q4
2020
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
730
|
|
|
$
|
776
|
|
|
$
|
2,117
|
|
|
$
|
1,027
|
|
|
$
|
4,650
|
|
|
$
|
—
|
|
|
$
|
4,650
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
1,071
|
|
|
—
|
|
|
1,071
|
|
|
—
|
|
|
1,071
|
|
Value-add revenues
(3)
|
$
|
730
|
|
|
$
|
776
|
|
|
$
|
1,046
|
|
|
$
|
1,027
|
|
|
$
|
3,579
|
|
|
$
|
—
|
|
|
$
|
3,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Previously
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA
including noncontrolling interests (4)
|
$
|
109
|
|
|
$
|
29
|
|
|
$
|
175
|
|
|
$
|
151
|
|
|
$
|
464
|
|
|
$
|
(46)
|
|
|
$
|
418
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
1
|
|
|
3
|
|
|
(1)
|
|
|
1
|
|
|
4
|
|
|
2
|
|
|
6
|
|
Other costs (including
strategic and transaction related)
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
4
|
|
|
1
|
|
Antitrust reserve
change in estimate
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
(Gain)/Loss on sale of
assets
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
1
|
|
|
(2)
|
|
Gain on extinguishment
of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
Adjusted EBITDA
(5)
|
$
|
110
|
|
|
$
|
29
|
|
|
$
|
160
|
|
|
$
|
152
|
|
|
$
|
451
|
|
|
$
|
(41)
|
|
|
$
|
410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recasts for
Transfer of Business Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Total
EBITDA including noncontrolling interests
|
—
|
|
|
28
|
|
|
—
|
|
|
(28)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Recast Total EBITDA
including noncontrolling interests (4)
|
109
|
|
|
57
|
|
|
175
|
|
|
123
|
|
|
464
|
|
|
(46)
|
|
|
418
|
|
Total adjustments (no
change from what is noted above)
|
1
|
|
|
—
|
|
|
(15)
|
|
|
1
|
|
|
(13)
|
|
|
5
|
|
|
(8)
|
|
Recast Adjusted
EBITDA (5)
|
$
|
110
|
|
|
$
|
57
|
|
|
$
|
160
|
|
|
$
|
124
|
|
|
$
|
451
|
|
|
$
|
(41)
|
|
|
$
|
410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recast Adjusted
EBITDA as a % of value-add revenue (6)
|
15.1%
|
|
|
7.3%
|
|
|
15.3%
|
|
|
12.1%
|
|
|
12.6%
|
|
|
|
|
11.5%
|
|
|
|
Q4 2020
YTD
|
|
Global
Segments
|
|
|
|
|
|
Motorparts
|
|
Performance
Solutions
|
|
Clean
Air
|
|
Powertrain
|
|
Total
|
|
Corporate
|
|
Total
|
Net sales and
operating revenues
|
$
|
2,725
|
|
|
$
|
2,502
|
|
|
$
|
6,721
|
|
|
$
|
3,431
|
|
|
$
|
15,379
|
|
|
$
|
—
|
|
|
$
|
15,379
|
|
Less: Substrate
sales
|
—
|
|
|
—
|
|
|
3,355
|
|
|
—
|
|
|
3,355
|
|
|
—
|
|
|
3,355
|
|
Value-add revenues
(3)
|
$
|
2,725
|
|
|
$
|
2,502
|
|
|
$
|
3,366
|
|
|
$
|
3,431
|
|
|
$
|
12,024
|
|
|
$
|
—
|
|
|
$
|
12,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Previously
Reported:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total EBITDA
including noncontrolling interests (4)
|
$
|
155
|
|
|
$
|
(595)
|
|
|
$
|
440
|
|
|
$
|
130
|
|
|
$
|
130
|
|
|
$
|
(215)
|
|
|
$
|
(85)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
related expenses
|
20
|
|
|
68
|
|
|
22
|
|
|
51
|
|
|
161
|
|
|
8
|
|
|
169
|
|
Inventory
write-down
|
73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
Asset
impairments
|
27
|
|
|
455
|
|
|
—
|
|
|
4
|
|
|
486
|
|
|
17
|
|
|
503
|
|
Other costs (including
strategic and transaction related)
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
40
|
|
|
38
|
|
Antitrust reserve
change in estimate
|
—
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
(Gain)/Loss on sale of
assets
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
1
|
|
|
(2)
|
|
Gain on extinguishment
of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
OPEB
curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
(21)
|
|
Goodwill and
intangible impairment charges
|
110
|
|
|
113
|
|
|
—
|
|
|
160
|
|
|
383
|
|
|
—
|
|
|
383
|
|
Adjusted EBITDA
(5)
|
$
|
385
|
|
|
$
|
36
|
|
|
$
|
451
|
|
|
$
|
345
|
|
|
$
|
1,217
|
|
|
$
|
(172)
|
|
|
$
|
1,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recasts for
Transfer of Business Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment to Total
EBITDA including noncontrolling interests
|
—
|
|
|
(39)
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Recast Total EBITDA
including noncontrolling interests (4)
|
155
|
|
|
(634)
|
|
|
440
|
|
|
169
|
|
|
130
|
|
|
(215)
|
|
|
(85)
|
|
Total
adjustments
|
230
|
|
|
750
|
|
|
11
|
|
|
96
|
|
|
1,087
|
|
|
43
|
|
|
1,130
|
|
Recast Adjusted
EBITDA (5)
|
$
|
385
|
|
|
$
|
116
|
|
|
$
|
451
|
|
|
$
|
265
|
|
|
$
|
1,217
|
|
|
$
|
(172)
|
|
|
$
|
1,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recast Adjusted
EBITDA as a % of value-add revenue (6)
|
14.1%
|
|
|
4.6%
|
|
|
13.4%
|
|
|
7.7%
|
|
|
10.1%
|
|
|
|
|
8.7%
|
|
________________________________________
|
(1) U.S. Generally
Accepted Accounting Principles.
|
|
(2) Tenneco presents
the above reconciliation of revenues in order to reflect EBITDA and
adjusted EBITDA as a percent of value-add revenues. Substrate
sales include precious metals pricing, which may be volatile.
Substrate sales occur when, at the direction of its OE customers,
Tenneco purchases catalytic converters or components thereof from
suppliers, uses them in its manufacturing processes and sells them
as part of the completed system. While Tenneco original equipment
customers assume the risk of this volatility, it impacts reported
revenue. Excluding substrate sales removes this impact.
Further, presenting EBITDA and adjusted EBITDA as a percent of
value-add revenue assists investors in evaluating the company's
operational performance without the impact of such substrate
sales. See prior pages for a discussion of EBITDA and
adjusted
EBITDA.
|
|
(3) Tenneco
presents the above reconciliation of revenues in order to reflect
value-add revenues separately from substrate sales. Substrate
sales include precious metals pricing, which may be volatile.
Substrate sales occur when, at the direction of its OE customers,
Tenneco purchases catalytic converters or components thereof from
suppliers, uses them in its manufacturing processes and sells them
as part of the completed system. While Tenneco original equipment
customers assume the risk of this volatility, it impacts reported
revenue. Excluding substrate sales removes this impact.
Tenneco uses this information to analyze the trend in revenues
before these factors. Tenneco believes investors find this
information useful in understanding period to period comparisons in
the company's revenues.
|
|
(4) EBITDA including
noncontrolling interests represents income before interest expense,
income taxes, noncontrolling interests and depreciation and
amortization. EBITDA including noncontrolling interests is
not a calculation based upon GAAP. The amounts included in
the EBITDA including noncontrolling interests calculation, however,
are derived from amounts included in the historical statements of
income data. In addition, EBITDA including noncontrolling
interests should not be considered as an alternative to net income
attributable to Tenneco Inc. or operating income as an indicator of
the company's operating performance, or as an alternative to
operating cash flows as a measure of liquidity. Tenneco has
presented EBITDA including noncontrolling interests because it
regularly reviews EBITDA including noncontrolling interests as a
measure of the company's performance. In addition, Tenneco
believes its investors utilize and analyze the company's EBITDA
including noncontrolling interests for similar purposes.
Tenneco also believes EBITDA including noncontrolling interests
assists investors in comparing a company's performance on a
consistent basis without regard to depreciation and amortization,
which can vary significantly depending upon many factors.
However, the EBITDA including noncontrolling interests measure
presented may not always be comparable to similarly titled measures
reported by other companies due to differences in the components of
the
calculation.
|
|
(5) "Adjusted EBITDA"
is EBITDA including noncontrolling interests (after giving effect
to the reclassification and segment change described above) and is
presented in order to reflect the results in a manner that allows a
better understanding of operational activities separate from the
financial impact of decisions made for the long term benefit of the
company and other items impacting comparability between the
periods. Similar adjustments to EBITDA including
noncontrolling interests have been recorded in earlier periods, and
similar types of adjustments can reasonably be expected to be
recorded in future periods. The company believes investors find the
non-GAAP information helpful in understanding the ongoing
performance of operations separate from items that may have a
disproportionate positive or negative impact on the company's
financial results in any particular
period.
|
|
(6) Tenneco
presents the above reconciliation in order to reflect Adjusted
EBITDA as a percent of value-add revenues. Presenting
Adjusted EBITDA as a percent of value-add revenue assists investors
in evaluating the company's operational performance without the
impact of substrate sales, which can be volatile.
|
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SOURCE Tenneco Inc.