| Wednesday | ||||
Gentherm provided an… Gentherm provided an update on its business and financial position in light of the impact of the COVID-19 pandemic on the global economy. As a safeguard against the uncertainties ahead surrounding the COVID-19 pandemic, the company has recently drawn an additional $169M on its revolving credit facility to increase its cash position and provide additional financial flexibility. As of March 20, 2020, the company had approximately $35M in cash, cash equivalents and restricted cash prior to the draw down. As a result of the draw down, a total of $224M was outstanding under the revolving credit facility. The company has $240M remaining available for additional borrowings subject to specified conditions that Gentherm currently satisfies. In addition, the company is prudently addressing its day-to-day operations, including reducing expenses, inventory levels and capital spending. "At Gentherm, our top priority remains the health and safety of our employees, customers and communities. Our dedicated teams are operating in a highly dynamic situation, and we continue to assess the implications for our business across both our customer and supply bases," said Phil Eyler, President and Chief Executive Officer. "While our Automotive operations that drive a substantial portion of our revenues are operating at a reduced capacity, the demand for medical equipment such as our Blanketrol has grown and the production of our medical products is considered essential manufacturing under current government mandates." The COVID-19 pandemic is dramatically affecting the automotive industry including the temporary suspension of vehicle production across Asia, Europe and North America. As a result of the unprecedented uncertainty facing the automotive industry and global economy, Gentherm is withdrawing its 2020 guidance. | ||||
| Over a week ago | ||||
Meetings to be held in… Meetings to be held in Montreal on March 11 and in Toronto on March 12 hosted by Barrington. | ||||
Meetings to be held in… Meetings to be held in Montreal on March 11 and in Toronto on March 12 hosted by Barrington. | ||||
Meetings to be held in… Meetings to be held in Montreal on March 11 and in Toronto on March 12 hosted by Barrington. | ||||
Gentherm announced that… Gentherm announced that Matt Fisch will join the company's leadership team as SVP and chief technology officer on April 6, 2020. In this role, Fisch will lead Gentherm's technology strategy, advanced product engineering, longer term R&D, and the Company's partnership ecosystem to continue Gentherm's heritage of introducing innovation in Climate and Comfort, Battery Thermal Management, Electronics, and patient thermal products and solutions. Fisch will report to Gentherm's President and CEO, Phil Eyler. Fisch comes to Gentherm from Verifone, a global leader in payments and commerce solutions, where he was the Executive Vice President of Global R&D. | ||||
Gentherm announced… Gentherm announced changes aimed to optimize and drive operational efficiencies across its North American manufacturing base as part of the company's global manufacturing restructuring plan announced in September 2019. As part of the current phase of the restructuring plan, Gentherm will consolidate all North American electronics manufacturing to Celaya, Mexico. This will result in the closure of the Burlington, Canada facility, and the transfer of electronics manufacturing from Acuna, Mexico. The restructuring of Gentherm's North American electronics manufacturing will be completed by mid-2021. The decision will affect approximately 350 Canadian and Mexican salaried and hourly employees. |
| Over a month ago | ||||
Argus analyst David… Argus analyst David Coleman upgraded Gentherm to Buy from Hold with a $55 price target after its Q4 earnings beat, saying the company continues to reduce costs and expand margins in spite of the challenging industry headwinds. The analyst is also positive on Gentherm expanding its technology to other industries such as medicine as the management continues to secure new contracts and "looks for further margin growth this year", adding that its expected FY20 earnings multiple of 19.9-times is toward the lower end of its 5-year range of 11.7- to 33.0-times. | ||||
Craig-Hallum analyst Ryan… Craig-Hallum analyst Ryan Sigdahl raised his price target for Gentherm to $50 from $38 as "solid" execution on its "Fit-for-Growth" cost reductions resulted in a strong profitability beat in Q4 and record free cash flow for the year, and as record Auto awards in Q4 add to a growing backlog. The analyst maintains a Hold rating on the shares. | ||||
The company is providing… The company is providing the following guidance for full-year 2020, excluding divested assets: Product revenues are expected to change between down 1% and up 3%, excluding the impact of foreign currency, with year-over-year growth gradually increasing as the year progresses; Gross margin rate between 29% and 30%; Adjusted operating expenses between 18% and 19% of product revenues; Adjusted EBITDA between 15% and 16% of product revenues; Full-year effective tax rate between 27% and 29%; Capital expenditures between $40M-$50M. | ||||
Reports Q4 revenue… Reports Q4 revenue $230.38M, consensus $225.65M. Reports Q4 GAAP EPS 32c. | ||||