Horizon Global Corp., one of the world’s leading manufacturers of branded towing and trailering equipment, has reported fourth-quarter and full-year financial results for 2019, closing a year of strategic business realignment and management refocus to drive its operational improvement initiatives.
Fourth quarter highlights include:
• Successful amendment of Horizon’s ABL to stabilize liquidity and support future operating flexibility
• Net sales of $142.3 million; increase of $4.5 million, or 3.3%, over prior-year comparable period
• Operating loss of $33.7 million, or (23.7)% of net sales; improvement of $0.6 million over prior-year comparable period
• Net loss from continuing operations of $32 million; improvement of $18.1 million over prior-year comparable period
• Adjusted EBITDA(2) of $(16.5) million; down $1.2 million from prior-year comparable period
Full-year highlights include:
• Completed sale of Horizon Asia-Pacific business segment (APAC); significantly improved leverage and provided additional liquidity and operating flexibility
• Completed refinancing of debt structure to support business realignment and allow for increased covenant flexibility
• Net sales of $690.5 million; decrease of $23.5 million, or 3.3%, from prior year
• Operating loss of $57.2 million, or (8.3)% of net sales; improvement of $133.4 million over prior year
• Net loss from continuing operations of $110 million; improvement of $109.4 million over prior year
• Adjusted EBITDA(2) of $(8.3) million; down $16 million from prior year
“Since my appointment as CEO in September 2019, I am encouraged by the progress we have made,” said Terry Gohl, Horizon Global’s president and CEO. “We are executing our operational improvement initiatives across all facets of the business and we continue to identify new opportunities every day. We are moving with speed and purpose to improve our underlying operations and service to our customers. We expect that our progress will result in substantially improved margins and free cash flow, and, importantly, create value for our shareholders in 2020 and beyond.”
Gohl added, “Horizon Global undertook a competitive process to refinance our ABL. The process demonstrated significant lender confidence in our operational improvement initiatives plan and the operating and financial results that we expect to deliver. On March 13, 2020, The company entered into an agreement with Encina Business Credit LLC that will provide the c company with the liquidity and financial flexibility necessary to drive our operational improvement initiatives in 2020.”
Gohl added, “Horizon Global’s 2019 results reflect the many challenges we faced during the year. We are not satisfied with this performance, we expect this company to be an industry leader and we are confident that we have the team, brands and focus to solidify ourselves as the supplier of choice across the markets we serve. We will continue to execute our well-defined operational improvement initiatives and capitalize on new opportunities. Our focus will continue to be on operational excellence, margin expansion and free cash flow. In 2020, we are optimistic that Horizon Global will deliver on its initiatives, meet and exceed customer expectations and create value for our shareholders.”
