Shiloh Industries Inc., a leading global supplier of lightweighting, noise and vibration solutions to the automotive, commercial vehicle and other industrial markets, reported fourth-quarter and full-year financial results for our fiscal year ended Oct. 31, 2017.
Fourth-Quarter 2017 Highlights (compared to Fourth-Quarter 2016):
- Revenues decreased to $264.2 million
- Gross profit of $28.3 million with a gross margin of 10.7 percent
- Net loss was $0.9 million or 4 cents per share
- Adjusted earnings per basic share was 13 cents
- Adjusted EBITDA was $18.3 million
- Adjusted EBITDA margin was 6.9 percent
- New product wins represented an expected $213 million in sales over the life-of-programs
Full-Year 2017 Highlights (compared to Full-Year 2016):
- Revenues were $1,042 million compared to $1,065.8 million, with improved margins.
- Gross profit increased 18.7 percent to $114.1 million, compared to $96.2 million, reflecting an increase of $18 million on lower revenues
- Basic net loss per share was 4 cents, compared to basic net income per share of 21 cents
- Basic adjusted earnings per share of 53 cents compared to 59 cents
- Adjusted EBITDA was $75.6 million compared to $63.3 million, a 19.5 percent improvement
- Adjusted EBITDA margin improved 140 basis points to 7.3 percent compared to 5.9 percent
- Debt was reduced by $75.9 million
- New product wins represented an expected $661 million in sales over the life-of-program
“Fiscal 2017 was a year of meaningful improvement for Shiloh as we continued to make gains transforming from a process company to a value-added product company,” said Ramzi Hermiz, president and CEO, of Shiloh Industries. “We delivered improved mix, higher margins and record Adjusted EBITDA, while providing our customers with leading product solutions supported by excellence in service. During the fourth quarter, we took important steps to optimize our footprint and realign resources as we focus on continued profit improvement, while also better preparing for potential changes in the cycle. We remain encouraged about the long-term drivers of demand for our lightweighting solutions.”
Restructuring Actions
During the fourth quarter, the company incurred restructuring expense of $4.8 million, primarily due to the initiation of actions to idle its Pendergrass facility. This action is designed to improve future profitability and competitiveness. The largest portion of the restructuring expenses is related to non-cash asset impairment costs associated with footprint rationalization and mix shift away from commodity products. In addition, it will implement restructuring measures to improve the overall enterprise structure to proactively address the shift in consumer preferences to trucks and SUVs away from passenger cars and the need for incremental lightweighting technologies.
2018 Outlook
Shiloh is introducing guidance for the full year fiscal 2018 with adjusted EBITDA in a range of $73 million to $76 million and an adjusted EBITDA margin range of 7.4 percent to 7.8 percent. In addition, the company expects annual capital expenditures to be approximately 4 percent to 5 percent of revenue.
