Gentherm Reports Record 2012 Fourth Quarter, Year-End Revenues

NORTHVILLE, Mich., March 6, 2013 /PRNewswire/ -- Gentherm (NASDAQ-GS:THRM), the global market leader and developer of innovative thermal management technologies, today announced record revenues for the fourth quarter and year-ended December 31, 2012.

On May 16, 2011, Gentherm closed the previously announced acquisition of a majority interest in W.E.T. Automotive Systems AG, a publicly-traded German automotive thermal control and electronic components company.  As a result, the 2011 year-end period includes operating results of W.E.T. beginning May 16, 2011.  The 2012 fourth quarter is the second quarter where the year-over-year comparisons include a full three months of W.E.T. financial results for both periods since the acquisition.

President and CEO Daniel R. Coker said, "We are pleased with our record setting revenues for the fourth quarter and the full year, which reflect strong performance from all our operating groups.  We are also pleased with an equally important, and for the long run, perhaps more important event that occurred on February 22nd of this year—the registration of a Domination and Profit and Loss Transfer Agreement in Germany which will allow for the complete integration of Gentherm and W.E.T. Automotive Systems.

"The acquisition of W.E.T. was a seminal event in the history of Gentherm, allowing us to become a much larger, more capable and more global Company," Coker added.  "We are confident that the future will show what we have been saying in the past few months: that this acquisition is a natural and synergistic partnership of two innovative companies that will benefit all of our shareholders.  We are today optimistic about what the future holds based on what we have already accomplished together, and we are just getting started." 

Impact of One-time Events in 2012 Fourth Quarter
During the 2012 fourth quarter and full year, basic and fully diluted earnings per share were $0.09 and $0.39, respectively; however, these results reflect the impact of three one-time events that occurred in the quarter.  First, Gentherm entered into an amendment to accelerate and terminate certain royalty obligations from a worldwide license agreement.  As a result, the Company recorded an additional expense totaling $1.6 million in cost of sales during the 2012 fourth quarter, or $0.03 per basic and diluted share for the fourth quarter and $0.04 per basic and diluted share for the full year.  The agreement eliminates royalty expenses which totaled approximately $400,000 on a quarterly basis during 2012. 

Second, during the fourth quarter of 2012, Gentherm changed its accounting policy so that external patent development costs are to be expensed as incurred as part of research and development expenses and no longer capitalized and amortized as part of cost of sales over the registered useful life of the patents.  Previously, Gentherm had capitalized its external patent development costs, but reported internal costs as expenses.  The change reduced operating income by $324,000 and $1.0 million during the 2012 fourth quarter and full year, respectively, or $0.01 and $0.02 per basic and fully diluted share for the 2012 fourth quarter and full year, respectively. 

Finally, the American Taxpayer Relief Act of 2012 ("the Act") was signed into law but not until January 2, 2013.  The Act retroactively restored the research and development credit and certain exemptions under the foreign income tax rules, however, because a change in tax law is accounted for in the period of enactment, the retroactive effect of the Act on the Company's U.S. federal taxes for 2012, a benefit of approximately $1.3 million, or $0.04 per basic and diluted share for the 2012 fourth quarter, will not be recognized until the first quarter of 2013. 

Adjusting for these impacts, Gentherm would have reported net income attributable to common shareholders of $0.17 per basic and diluted share for the 2012 fourth quarter and $0.50 per basic and $0.49 per diluted share for the full year. 

Fourth Quarter Financial Highlights
Revenues for the 2012 fourth quarter increased 13 percent to a record $148.2 million from $131 million in the prior year fourth quarter.  This reflected higher overall global automotive industry production volumes, new vehicle program launches since the end of the 2011 fourth quarter and the expansion of certain programs into new geographic regions by customers on existing vehicles. 

New program launches for the Company's Climate Control Seat™ (CCS™) include the Ford Flex, Nissan Pathfinder, Infiniti JX, Hyundai i40 and Kia K9 Cadenza.  Certain existing vehicle programs had higher revenue during the period as a result of Gentherm's customers expanding the availability of the product to additional geographic regions.  This includes the Kia Optima, which is now also offered in China and North America. 

Partially offsetting higher product revenues during the 2012 fourth quarter was a decline related to the weakening of the Euro against the U.S. Dollar which negatively impacted the Company's Euro-denominated revenues.  The Euro-denominated product revenue for the 2012 fourth quarter was €31.1 million and the average U.S. Dollar/Euro exchange rate for the quarter was 1.2969.  If the average exchange rate for the 2012 fourth quarter had been equal to the average U.S. Dollar/Euro rate for the fourth quarter of 2011, which was 1.3490, Gentherm would have reported incrementally higher revenue of approximately $1.6 million.

"While there was some softness in Europe, it was offset by our much broader product line and the strengthening of the automotive market in North America," Coker said.  "We have seen very solid cooperation in product development and operations between Gentherm and W.E.T.  This has resulted in excellent progress over the last several quarters, and we are well positioned to complete the integration of the two companies.  We also opened up a new electronics facility in Shen Zhen, China during the fourth quarter of 2012, which adds to our Asian presence and increases our production capacity."

Net income attributable to common shareholders for the 2012 fourth quarter was $2.6 million, or $0.09 per basic and diluted share.  Non-cash purchase accounting impacts related to the W.E.T. acquisition in the quarter totaled $3.3 million, or $0.06 per basic and diluted share.  In addition, the 2012 fourth quarter results include convertible preferred stock dividends of $1.2 million, which reduced net income attributable to common shareholders by $0.04 per basic and diluted share.  Adjusting for these factors, Gentherm would have reported net income attributable to common shareholders of $0.19 per basic and diluted share. 

Net income attributable to common shareholders for the fourth quarter of 2011 was $5.9 million, or $0.25 per basic share and $0.24 per diluted share, which included one-time charges related to the acquisition, related financing and non-cash purchase accounting impacts totaling $2.1 million, net of tax benefit, or $0.09 per basic and diluted share.  In addition, convertible preferred stock dividends of $2.5 million were recorded during the 2011 fourth quarter.  Excluding these charges, Gentherm would have earned $10.6 million, or $0.45 per basic and $0.44 per diluted share, in the 2011 fourth quarter.  The fees and expenses associated with the W.E.T. acquisition are detailed in the Acquisition Transaction Expenses, W.E.T. Purchase Accounting Impacts and Other Effects table accompanying the release.

Gross margin as a percentage of revenue for the fourth quarter of 2012 decreased to 25.8 percent, down slightly from 25.9 percent for the fourth quarter of 2011.  This decrease was primarily the result of the higher cost of sales reported from the one-time additional royalty expense totaling $1.6 million recorded in the 2012 fourth quarter as previously described.  Without this extra expense, the gross margin would have been 26.9 percent representing an improvement over the prior year fourth quarter of 1.0 percent.

Adjusted EBITDA for the fourth quarter of 2012 was $18.1 million compared with Adjusted EBITDA of $14.5 million for the prior year period.

Historical Gentherm financial results and Adjusted EBITDA for the 2012 fourth quarter and year (which are non-GAAP measures) are provided to help shareholders understand Gentherm's results of operations due to the acquisition of W.E.T.  These non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Gentherm's reported results prepared in accordance with GAAP.

2012 Year-End Financial Highlights
For 2012, revenues increased to $555 million from $369.6 million in 2011.  The increase in revenues reflects a full year of W.E.T. revenues in 2012 compared with seven and a half months of W.E.T. revenues in 2011.  Had Gentherm acquired W.E.T. on January 1, 2011, pro-forma combined revenues during 2011 would have been $501.2 million.  When compared to 2011 pro-forma combined revenues, Gentherm revenues for 2012 increased approximately 10.7 percent.

Partially offsetting higher product revenues in 2012 is a decline related to the weakening of the Euro against the U.S. Dollar which negatively impacted the Company's Euro-denominated revenues.  The Euro-denominated product revenue for 2012 was €126.6 million and the average U.S. Dollar/Euro exchange rate for the year was 1.2861.  If the average exchange rate for 2012 had been equal to the average U.S. Dollar/Euro rate for all of 2011, which was 1.3921, Gentherm would have reported incrementally higher revenue of approximately $13.4 million.

Net income attributable to common shareholders for 2012 was $11.2 million, or $0.39 per basic and diluted share.  Non-cash purchase accounting impacts related to the W.E.T. acquisition totaled $13.0 million, or $0.27 per basic and $0.26 per diluted share.  In addition, the results for 2012 include convertible preferred stock dividends of $6.7 million, which reduced net income attributable to common shareholders by $0.24 per basic and $0.23 per diluted share.  Adjusting for these factors, Gentherm would have reported net income attributable to common shareholders of $0.90 per basic and $0.88 per diluted share. 

Net income attributable to common shareholders in 2011 was $1.4 million, or $0.06 per basic and diluted share, which included acquisition-related one-time fees and expenses totaling $5.3 million, debt retirement expense of $1.2 million, non-cash purchase accounting impacts totaling $12.9 million and convertible preferred stock dividends of $8.2 million.  Excluding these charges, Gentherm would have earned $23.4 million, or $1.03 per basic and $1.00 per diluted share, in 2011.  The fees and expenses associated with the W.E.T. acquisition are detailed in the Acquisition Transaction Expenses, W.E.T. Purchase Accounting Impacts and Other Effects table accompanying the release.

Gross margin as a percentage of revenue in 2012 was 25.6 percent compared with 25.7 percent in 2011.  This decrease was primarily the result of the higher cost of sales reported from the one-time additional royalty expense totaling $1.6 million recorded in the 2012 fourth quarter as previously described.  Without this extra expense, the gross margin would have been 25.9 percent representing a slight improvement over 2011.

Adjusted EBITDA in 2012 (which is described in the tables that follow) was $69.5 million compared with Adjusted EBITDA of $49.2 million in 2011.

Interest Expense and Revaluation of Derivatives
Interest expense for the 2012 fourth quarter and full year was $1.1 million and $4.1 million, respectively, compared with $1.1 million and $3.5 million in the respective prior year periods.  Approximately $1.6 million in interest expense in 2012 was related to the debt of W.E.T., and the balance resulted from financing used to fund a portion of the W.E.T. acquisition.

For the 2012 fourth quarter and year, the Company recorded losses related to the revaluation of derivative financial instruments of $1.2 million and $2.3 million, respectively, compared with losses of $545,000 and $6.1 million for the respective prior year periods.  Derivative losses stem from W.E.T.'s Cash Related Swap (CRS) contract and portfolio of currency derivative instruments. 

Research and Development, Selling, General and Administrative Expenses
Net research and development expenses were approximately the same during the 2012 fourth quarter results as compared to the 2011 fourth quarter.  Net research and development expenses for the 2012 full year were up $11.2 million to $41.0 million, reflecting a full year of W.E.T. research and development expenses incurred in 2012 compared with seven and a half months of W.E.T. expenses incurred in 2011.  

As previously described, during the fourth quarter of 2012, Gentherm changed its accounting policy so that external patent development costs are to be expensed as incurred and no longer capitalized and amortized over the registered useful life of the patents.  These costs are now classified as research and development expenses whereas the amortization previously recorded was included in cost of sales.

Selling, general and administrative (SG&A) expenses for the 2012 fourth quarter and year increased $2.9 million and $22.8 million, respectively, when compared to the respective prior year periods.  This was primarily due to a full year of W.E.T. expenses incurred in 2012 compared with seven and a half months of W.E.T. expenses in 2011.  Increases in historical Gentherm SG&A expenses in 2012 include expenses related to a Domination and Profit and Loss Transfer Agreement (DPLTA) for W.E.T., expenses related to the Sarbanes-Oxley compliance implementation for W.E.T. and one-time fees associated with an investigation of a potential acquisition which was not completed.  Increased expenses also included higher general legal, audit and travel costs, as well as wages and benefits costs resulting from new employee hiring and merit increases.

The Company's balance sheet as of December 31, 2012, had total cash and cash equivalents of $58.2 million, total assets of $439.2 million and shareholders' equity of $215.2 million.  Total debt was $57.0 million, and the book value of the unredeemed Series C Convertible Preferred Stock was $22.5 million as of December 31, 2012.

Guidance
Barring unforeseen economic turbulence, including worsening of the European market or unfavorable fluctuations of the Euro exchange rate, 2013 revenue appears to be strong.  Gentherm is expecting revenue for 2013 to increase 8 to 10 percent over 2012 revenues, which were $555 million.

Conference Call
As previously announced, Gentherm is conducting a conference call today to be broadcast live over the Internet at 11:30 AM Eastern Time to review these financial results.  The dial-in number for the call is 1-877-941-2068.  The live webcast and archived replay of the call can be accessed in the Events page of the Investor section of Gentherm's website at www.gentherm.com.

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including Adjusted EBITDA and historical Gentherm financial results, may be considered non-GAAP financial measures.  Gentherm believes this information is useful to investors because it provides a basis for measuring Gentherm's available capital resources, the operating performance of Gentherm's business and Gentherm's cash flow that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles. Gentherm's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Gentherm's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP.  Reconciliation between net income and EBITDA is provided in the financial tables at the end of this news release.

About Gentherm
Gentherm (NASDAQ-GS:THRM) is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. Automotive products include actively heated and cooled seat systems and cup holders, heated and ventilated seat systems, thermal storage bins, heated seat and steering wheel systems, cable systems and other electronic devices.  The Company's advanced technology team is developing more efficient materials for thermoelectrics and systems for waste heat recovery and electrical power generation for the automotive market that may have far-reaching applications for consumer products as well as industrial and technology markets.  Gentherm has more than 6,000 employees in facilities in the U.S., Germany, Mexico, China, Canada, Japan, England, Korea, Malta, Hungary and the Ukraine.  For more information, go to www.gentherm.com.

Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties, and actual results may be different.  Important factors that could cause the Company's actual results to differ materially from its expectations in this release are risks that sales may not significantly increase, additional financing, if necessary, may not be available, new competitors may arise and adverse conditions in the automotive industry may negatively affect its results.  The liquidity and trading price of its common stock may be negatively affected by these and other factors.  Please also refer to Gentherm's Securities and Exchange Commission (SEC) filings and reports, including, but not limited to, its Form 10-K for the year ended December 31, 2012; all of which are available free of charge on the SEC's website at www.sec.gov.  Gentherm expressly disclaims any intent or obligation to update any forward-looking statements.

TABLES FOLLOW

GENTHERM INCORPORATED


CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)





Three Months Ended

Year Ended


December 31,

December 31,


2012

2011

2012

2011

Product revenues

$         148,242

$         131,016

$         554,979

$         369,588

Cost of sales

109,942

97,115

413,052

274,621

            Gross margin

38,300

33,901

141,927

94,967

Operating costs and expenses:





      Research and development

10,860

10,738

43,189

30,665

      Research and development reimbursements

(476)

(351)

(2,239)

(932)

            Net research and development expenses

10,384

10,387

40,950

29,733

      Acquisition transaction expenses

(64)

5,316

      Selling, general and administrative

18,947

16,018

64,919

42,110

            Total operating costs and expenses

29,331

26,341

105,869

77,159

Operating income

8,969

7,560

36,058

17,808

Interest expense

(1,054)

(1,060)

(4,136)

(3,511)

Debt retirement expense

(190)

(1,160)

Revaluation of derivatives

(1,236)

(545)

(2,292)

(6,118)

Foreign currency gain (loss)

(156)

5,795

2,201

9,207

Loss from equity investment

146


(82)

(243)

Other income

64

(638)

923

(114)

Earnings before income tax

6,733

10,922

32,672

15,869

Income tax expense

1,027

852

8,351

4,666

Net income

5,706

10,070

24,321

11,203

Loss (gain) attributable to non-controlling interest

(1,958)

(1,720)

(6,449)

(1,545)

Net income attributable to Gentherm, Inc

3,748

8,350

17,872

9,658

Convertible preferred stock dividends

(1,190)

(2,490)

(6,711)

(8,228)

Net income (loss) attributable to common shareholders

$          2,558

$          5,860

$        11,161

$             1,430






Basic earnings (loss) per share

$            0.09

$            0.25

$            0.39

$               0.06

Diluted earnings (loss) per share

$            0.09

$            0.24

$            0.39

$               0.06






Weighted average number of shares – basic

29,717

23,361

28,353

22,606

Weighted average number of shares – diluted

30,082

23,986

28,862

23,455

 

 

GENTHERM INCORPORATED

FOURTH QUARTER RESULTS EXCLUDING W.E.T.

The following table presents select operations data for the period as reported, amounts for W.E.T. operations and amounts for Gentherm less the W.E.T. amounts representing the historical portion of Gentherm.  These historical Gentherm financial results, which are non-GAAP measures, are provided to help shareholders understand Gentherm's results of operations in light of the 2011 acquisition of W.E.T.  These non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Gentherm's reported results prepared in accordance with GAAP.





Three-month period ended December 31, 2012




(In Thousands)




As Reported


Less: W.E.T.


Historical Gentherm

Product revenues


$         148,242


$         112,094


$           36,148

Cost of sales (1)


109,942


82,109


27,833

Gross margin


38,300


29,985


8,315

Gross margin percent


25.8%


26.7%


23.0%

Operating expenses:








Net research and development expenses

10,384


7,626


2,758


Selling, general and administrative expenses (2)

18,947


13,484


5,463


Operating income

8,969


8,875


94

Earnings before income tax 

6,733


7,215


(482)







(1)Amount for Historical Gentherm includes one-time additional royalty expense totaling $1,611.

(2)During the 2012 fourth quarter, historical Gentherm incurred approximately $260 in expenses related to the

     DPLTA and Sarbanes-Oxley compliance for W.E.T. within selling, general and administrative expenses.





Three-month period ended December 31, 2011




(In Thousands)




As Reported


Less: W.E.T.


Historical Gentherm

Product revenues


$         131,016


$         96,948


$           34,068

Cost of sales


97,115


72,332


24,783

Gross margin


33,901


24,616


9,285

Gross margin percent


25.9%


25.4%


27.3%

Operating expenses:








Net research and development expenses

10,387


7,739


2,648


Acquisition transaction expenses

(64)


(245)


181


Selling, general and administrative  expenses

16,018


11,835


4,183


Operating income

7,560


5,287


2,273

Earnings before income tax 

10,922


9,403


1,519

 

 

GENTHERM INCORPORATED

FULL YEAR RESULTS EXCLUDING W.E.T.

The following table presents select operations data for the period as reported, amounts for W.E.T. operations and amounts for Gentherm less the W.E.T. amounts representing the historical portion of Gentherm.  These historical Gentherm financial results, which are non-GAAP measures, are provided to help shareholders understand Gentherm's results of operations in light of the 2011 acquisition of W.E.T.  These non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Gentherm's reported results prepared in accordance with GAAP.





Twelve-month period ended December 31, 2012




(In Thousands)




As Reported


Less: W.E.T.


Historical Gentherm

Product revenues


$         554,979


$         422,714


$         132,265

Cost of sales (1)


413,052


316,471


96,581

Gross margin


141,927


106,243


35,684

Gross margin percent


25.6%


25.1%


27.0%

Operating expenses:








Net research and development expenses

40,950


30,600


10,350


Selling, general and administrative  expenses (2)

64,919


44,494


20,425


Operating income

36,058


31,149


4,909

Earnings before income tax 

32,672


30,216


2,456


(1)Amount for Historical Gentherm includes one-time additional royalty expense totaling $1,611.

(2)During the period ending December 31, 2012, historical Gentherm incurred approximately $1,950 in expenses related to the
         DPLTA and Sarbanes-Oxley compliance for W.E.T. within selling, general and administrative expenses.





Twelve-month period ended December 31, 2011




(In Thousands)




As Reported


Less: W.E.T.


Historical Gentherm

Product revenues


$         369,588


$         237,248


$         132,340

Cost of sales


274,621


179,374


95,247

Gross margin


94,967


57,874


37,093

Gross margin percent


25.7%


24.4%


28.0%

Operating expenses:








Net research and development expenses

29,773


18,793


10,980


Acquisition transaction expenses

5,316


468


4,848


Selling, general and administrative  expenses

42,110


27,747


14,363


Operating income

17,808


10,866


6,942

Earnings before income tax 

15,869


9,050


6,819

 

 

GENTHERM INCORPORATED


RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME

(Unaudited, in thousands)





     Three Months Ended

            December 31,            

    Twelve Months Ended

            December 31,            


2012

2011

2012

2011

Net income (loss)

$         5,706

$       10,070

$       24,321

$       11,203

Add Back:





   Income tax expense

1,027

852

8,351

4,666

   Interest expense (income)

1,054

1,060

4,136

3,511

   Depreciation and amortization

7,660

7,482

29,595

22,385

Adjustments:





   Acquisition transaction expense

(64)

5,316

   Debt retirement expense

190

1,160

   Unrealized currency (gain) loss

1,437

(5,611)

3,350

(3,756)

   Unrealized revaluation of derivatives

1,234

544

(248)

4,685

Adjusted EBITDA

$       18,118

$       14,523

$       69,505

$       49,170

Use of Non-GAAP Financial Measures
In evaluating its business, Gentherm considers and uses Adjusted EBITDA as a supplemental measure of its operating performance.  The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and deferred financing cost amortization, less transaction expenses, debt retirement expenses, unrealized currency (gain) loss and unrealized revaluation of derivatives.  Management believes that Adjusted EBITDA is a meaningful measure of liquidity and the Company's ability to service debt because it provides a measure of cash available for such purposes. Management provides an Adjusted EBITDA measure so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company's performance on a period-over-period basis.

The term Adjusted EBITDA is not defined under GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP.  Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company's operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with GAAP.  Gentherm compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally.

 

GENTHERM INCORPORATED


ACQUISITION TRANSACTION EXPENSES, W.E.T. PURCHASE ACCOUNTING IMPACTS AND OTHER EFFECTS

(In thousands, except per share data)








   Three Months Ended

   December 31,

Twelve Months Ended

December 31,

Future Periods (estimated)


2012

2011

2012

2011

2013

2014

2015

Thereafter










Transaction related current expenses









Acquisition transaction expenses

$         –

$      (64)

$         –

$  5,326

$         –

$         –

$         –

$           –

Debt retirement expense

190

1,160


126

6,476

Non-cash purchase accounting impacts









Customer relationships amortization

$  1,945

$  2,090

$  7,717

$  5,222

$  7,717

$  7,922

$  7,922

$  40,861

Technology amortization

816

876

3,236

2,190

3,236

3,322

3,322

6,253

Product development costs amortization

526

440

2,087

1,002

2,136

2,193

1,242

50

Order backlog amortization

3,032

Inventory fair value adjustment

1,481


$  3,287

$  3,406

$  13,040

$  12,927

$  13,089

$  13,437

$  12,486

$  47,164










Tax effect

(761)

(835)

(3,020)

(4,001)

(3,031)

(3,112)

(2,892)

(10,923)

Net income effect

2,526

2,697

10,020

15,402

10,058

10,325

9,594

36,241

Non-controlling interest effect

(608)

(621)

(2,413)

(2,356)

(101)

(103)

(96)

(362)

Net income available to shareholders effect

$  1,918

$  2,076

$  7,607

$  13,046

$  9,957

$  10,222

$  9,498

$  35,878










Earnings (loss) per share - difference









Basic

$  0.06

$  0.09

$  0.27

$  0.58





Diluted

$  0.06

$  0.09

$  0.26

$  0.56














Series C Preferred Stock dividend

$  1,190

$  2,490

$  6,711

$  8,228

$  1,622

$           –

$         –

$          –










Earnings (loss) per share - difference









Basic

$  0.04

$  0.11

$  0.24

$  0.36





Diluted

$  0.04

$  0.10

$  0.23

$  0.35





 

 

GENTHERM INCORPORATED


CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)


December 31,

ASSETS

2012

2011

Current Assets:



Cash & cash equivalents

$         58,152

$         23,839

Accounts receivable

102,261

82,395

Inventory

53,756

46,344

Derivative financial instruments

160

2,675

Deferred income tax assets

15,006

12,732

Prepaid expenses and other assets

12,809

9,685

Total current assets

242,144

177,670

Property and equipment, net

55,010

44,794

Goodwill

24,729

24,245

Other intangible assets

95,870

103,806

Deferred financing costs

1,880

2,441

Deferred income tax assets

5,361

13,147

Derivative financial instruments

4,141

Other non-current assets

10,062

8,774

Total assets

$       439,197

$       374,877




LIABILITIES AND SHAREHOLDERS' EQUITY



Current Liabilities:



Accounts payable

$         42,508

$         42,533

Accrued liabilities

54,157

46,293

Current maturities of long-term debt

17,218

14,570

Derivative financial instruments

3,326

5,101

Deferred tax liabilities

3,218

Total current liabilities

117,209

111,715

Pension benefit obligation

5,009

3,872

Other Liabilities

4,540

1,862

Long-term debt, less current maturities

39,734

61,677

Derivative financial instruments

13,245

17,189

Deferred tax liabilities

21,828

23,679

Total liabilities

201,565

219,994

Commitments and contingencies



Series C Convertible Preferred Stock..

22,469

50,098

Shareholders' equity:



Common Stock:



No par value; 55,000,000 shares authorized, 29,818,225 and 23,515,571 issued and outstanding at December 31, 2012 and 2011, respectively

166,309

80,502

Paid-in capital

23,778

23,387

Accumulated other comprehensive income

(10,889)

(14,754)

Accumulated deficit

(17,383)

(28,544)

Total Gentherm Incorporated shareholders' equity

161,815

60,591

Non-controlling interest

53,348

44,194

Total shareholders' equity

215,163

104,785

Total liabilities and shareholders' equity

$       439,197

$       374,877




 

 

GENTHERM INCORPORATED

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)





Year Ended December 31,


2012

2011

Operating Activities:



Net income

$24,321

$       11,203

Adjustments to reconcile net income to cash provided by operating activities:



Depreciation and amortization

30,627

23,282

Deferred income tax expense (benefit)

789

(599 )

Loss on revaluation of derivatives

167

6,118

Debt extinguishment expenses

960

Stock compensation

1,252

2,073

Loss on sale of property, plant & equipment

555

35

Provision for doubtful accounts

533

1,241

Defined benefit plan expense

50

266

Excess tax benefit from equity awards

171

(3,257 )

(Gain) Loss from equity investment

82

243

Changes in operating assets and liabilities:



Accounts receivable

(18,367)

(12,639 )

Inventory

(5,847)

(4,624 )

Prepaid expenses and other assets

(3,228)

1,937

Accounts payable

1,788

4,722

Accrued liabilities

4,314

3,266

Net cash provided by operating activities

37,207

34,227

Investing Activities:



Purchases of derivative financial instruments

(7,787)

Sales and maturities of short-term investments

9,761

Investment in subsidiary, net of cash acquired

(113,432 )

Equity investment

(491 )

Loan to equity investment

(590)

(860 )

Cash invested in corporate owned life insurance

(265)

(266 )

Purchase of property and equipment

(26,793)

(10,673 )

Proceeds from the sale of property and equipment

40

Net cash provided by (used in) investing activities

(35,395)

(115,961 )

Financing Activities:



Distribution paid to non-controlling interest

(290)

Cash paid for financing costs

(264)

(4,493 )

Borrowing of Debt

3,326

138,168

Repayments of Debt

(22,953)

(110,775 )

Proceeds from public offering of common stock

75,532

Proceeds from the sale of Series C Convertible Preferred Stock

61,403

Proceeds from the sale of embedded derivatives

2,610

Excess tax benefit from equity awards

(171)

3,257

Proceeds from sale of W.E.T. equity to non-controlling interest

1,921

1,175

Redemption of Series C Preferred Stock

(25,740)

(7,780 )

Series C Preferred Stock Holders dividend

(1,362 )

Proceeds from the exercise of Common Stock options

774

3,345

Proceeds from sale of common stock, net of cash expenses

Net cash provided by (used in) financing activities

32,135

85,548

Foreign currency effect on cash and cash equivalents

366

(6,559 )

Net (decrease) increase in cash and cash equivalents

34,313

(2,745 )

Cash and cash equivalents at beginning of period

23,839

26,584

Cash and cash equivalents at end of period

$       58,152

$       23,839

Supplemental disclosure of cash flow information:



Cash paid for interest

$         3,545

$        3,963

Cash paid for taxes

$         8,445

$        5,322

Supplemental disclosure of non-cash transactions:



Issuance of Common Stock for Series C Preferred Stock redemption

$         7,780

$         7,780

Issuance of Common Stock for Series C Preferred Stock dividend

$         1,031

$         2,242

Common stock issued to directors and employees

$            429

$            669

 

Contact:

Allen & Caron Inc


Jill Bertotti (investors)


jill@allencaron.com


Len Hall (media)


len@allencaron.com


(949) 474-4300

SOURCE Gentherm



RELATED LINKS
http://www.gentherm.com

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