Visteon Announces Third Quarter 2007 Results

In this press release the Company has provided information regarding non- GAAP financial measures of "EBIT-R" and "free cash flow." Such non-GAAP financial measures are reconciled to their closest US GAAP financial measure below.

EBIT-R: EBIT-R represents net loss before net interest expense, provision for income taxes and extraordinary item and excludes impairment of long-lived assets and net unreimbursed restructuring charges. Related amounts included in loss from discontinued operations are reflected in the totals below. Management believes EBIT-R is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's operating activities.

                       Three-Months Ended   Nine-Months Ended      FY 2007
                          September 30         September 30       Estimate

                         2007     2006        2007      2006

    Net loss           $(109)    $(177)     $(329)     $(124)   $(430) - (400)
      Interest expense,
       net                42        40        123        117          170
      Provision for
       income taxes       20        10         65         57           95
      Asset impairments   14         -         77         22           77
      Extraordinary item,
       net of tax          -         -          -         (8)           -
      Restructuring and
       other reimbursable
       costs              27        14        121         35          137
      Reimbursement from
       escrow account    (27)      (14)      (121)       (35)        (129)
    EBIT-R              $(33)    $(127)      $(64)       $64     $(80) - (50)

EBIT-R is not a recognized term under US GAAP and does not purport to be an alternative to net income (loss) as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of EBIT-R may not be comparable to other similarly titled measures of other companies. Additionally, EBIT-R is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements.

Free Cash Flow: Free cash flow represents cash flow from operating activities less capital expenditures. Management believes that free cash flow is useful in analyzing the Company's ability to service and repay its debt and it uses the measure for planning and forecasting future periods, as well as in compensation decisions.

                         Three-Months Ended  Nine-Months Ended      2007
                            September 30       September 30       Estimate*
                           2007     2006      2007      2006

    Cash provided from
     operating activities  $(53)   $(34)     $(38)       $42     $90 - 150
      Capital expenditures  (88)    (82)     (232)      (265)      (350)
    Free cash flow        $(141)  $(116)    $(270)     $(223) $ (260) - (200)

Free cash flow is not a recognized term under US GAAP and does not reflect cash used to service debt and does not reflect funds available for investment or other discretionary uses.

*As of September 30, 2007 Visteon had $96 million of total receivable sales. This represents a $61 million decrease from the $157 million at December 31, 2006. Full year 2007 estimates are based on receivables sales equal to the December 31, 2006 level.

Web site:

« Previous Page 1 | 2 | 3             

Review Article Be the first to review this article

Featured Video
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Siemens Goes ECAD With Mentor Graphics Acquisition
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
GIS Analyst II for Air Worldwide at Boston, MA
Senior Structural Engineer for Design Everest at San Francisco, CA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017
SolidCAM: Program your CNCs directly inside your existing CAD system.

Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise