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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Horizon Global Corporation | NYSE:HZN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.76 | 0 | 01:00:00 |
(Mark One)
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x
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the Quarterly Period Ended September 30, 2019
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or
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o
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the Transition Period from to .
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Delaware
(State or other jurisdiction of
incorporation or organization)
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47-3574483
(IRS Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value
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HZN
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New York Stock Exchange
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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Emerging growth company x
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September 30,
2019 |
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December 31,
2018 |
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Assets
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Current assets:
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Cash and cash equivalents
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$
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16,360
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$
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27,650
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Receivables, net of allowance for doubtful accounts of approximately $5.0 million and $4.8 million at September 30, 2019 and December 31, 2018, respectively
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93,480
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95,170
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Inventories
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141,150
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152,200
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Prepaid expenses and other current assets
|
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9,480
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8,270
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Current assets held-for-sale
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—
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36,080
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Total current assets
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260,470
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319,370
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Property and equipment, net
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78,670
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86,500
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Operating lease right-of-use assets
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56,170
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—
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Goodwill
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4,200
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4,500
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Other intangibles, net
|
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60,350
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69,400
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Deferred income taxes
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440
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|
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660
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|
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Non-current assets held-for-sale
|
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—
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34,790
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|
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Other assets
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5,700
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|
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6,130
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Total assets
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$
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466,000
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$
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521,350
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Liabilities and Shareholders' Equity
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Current liabilities:
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Short-term borrowings and current maturities, long-term debt
|
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$
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24,270
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$
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13,860
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Accounts payable
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79,440
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102,350
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Short-term operating lease liabilities
|
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9,850
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—
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Current liabilities held-for-sale
|
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—
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28,080
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Accrued liabilities
|
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53,020
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58,520
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Total current liabilities
|
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166,580
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202,810
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Gross long-term debt
|
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214,930
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382,220
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Unamortized debt issuance costs and discount
|
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(34,200
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)
|
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(31,570
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)
|
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Long-term debt
|
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180,730
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350,650
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Deferred income taxes
|
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8,280
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12,620
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|
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Long-term operating lease liabilities
|
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50,890
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—
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Non-current liabilities held-for-sale
|
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—
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1,740
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|
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Other long-term liabilities
|
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20,770
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19,750
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|
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Total liabilities
|
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427,250
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587,570
|
|
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Contingencies (See Note 13)
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Shareholders' equity (deficit):
|
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Preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None
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—
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—
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Common stock, $0.01 par: Authorized 400,000,000 shares; 26,073,894 shares issued and 25,387,388 outstanding at September 30, 2019, and 25,866,747 shares issued and 25,180,241 outstanding at December 31, 2018
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250
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250
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Common stock warrants exercisable for 6,487,674 shares issued and outstanding at September 30, 2019; none issued and outstanding at December 31, 2018
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10,720
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—
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Paid-in capital
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162,760
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160,990
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Treasury stock, at cost: 686,506 shares at September 30, 2019 and December 31, 2018
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(10,000
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)
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(10,000
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)
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Accumulated deficit
|
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(110,390
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)
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(222,720
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)
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Accumulated other comprehensive (loss) income
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(11,250
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)
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7,760
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Total Horizon Global shareholders' equity (deficit)
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42,090
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(63,720
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)
|
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Noncontrolling interest
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(3,340
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)
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(2,500
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)
|
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Total shareholders' equity (deficit)
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38,750
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(66,220
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)
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Total liabilities and shareholders' equity
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$
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466,000
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$
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521,350
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Three months ended
September 30, |
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Nine months ended
September 30, |
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2019
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2018
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2019
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2018
|
||||||||
Net sales
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$
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177,850
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$
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194,030
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$
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548,170
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$
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576,250
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Cost of sales
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(149,560
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)
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(159,500
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)
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(460,010
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)
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(472,120
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)
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Gross profit
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28,290
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34,530
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88,160
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104,130
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Selling, general and administrative expenses
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(41,100
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)
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(37,680
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)
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(113,140
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)
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(134,210
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)
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Impairment of goodwill and intangible assets
|
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—
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(26,640
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)
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—
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(125,770
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)
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Net gain (loss) on dispositions of property and equipment
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50
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(110
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)
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1,500
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(520
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)
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Operating loss
|
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(12,760
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)
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(29,900
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)
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(23,480
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)
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(156,370
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)
|
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Other expense, net
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(1,640
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)
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(1,040
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)
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(6,610
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)
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(7,410
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)
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Interest expense
|
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(24,120
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)
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(7,590
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)
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(50,270
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)
|
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(19,580
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)
|
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Loss from continuing operations before income tax
|
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(38,520
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)
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(38,530
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)
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(80,360
|
)
|
|
(183,360
|
)
|
||||
Income tax benefit
|
|
1,020
|
|
|
1,420
|
|
|
2,330
|
|
|
15,770
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|
||||
Net loss from continuing operations
|
|
(37,500
|
)
|
|
(37,110
|
)
|
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(78,030
|
)
|
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(167,590
|
)
|
||||
Income from discontinued operations, net of tax
|
|
182,750
|
|
|
4,110
|
|
|
189,520
|
|
|
9,670
|
|
||||
Net income (loss)
|
|
145,250
|
|
|
(33,000
|
)
|
|
111,490
|
|
|
(157,920
|
)
|
||||
Less: Net loss attributable to noncontrolling interest
|
|
(260
|
)
|
|
(240
|
)
|
|
(840
|
)
|
|
(720
|
)
|
||||
Net income (loss) attributable to Horizon Global
|
|
$
|
145,510
|
|
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$
|
(32,760
|
)
|
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$
|
112,330
|
|
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$
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(157,200
|
)
|
Net income (loss) per share attributable to Horizon Global:
|
|
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||||||||
Basic:
|
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||||||||
Continuing operations
|
|
$
|
(1.47
|
)
|
|
$
|
(1.47
|
)
|
|
$
|
(3.05
|
)
|
|
$
|
(6.67
|
)
|
Discontinued operations
|
|
7.21
|
|
|
0.16
|
|
|
7.50
|
|
|
0.39
|
|
||||
Total
|
|
5.74
|
|
|
(1.31
|
)
|
|
4.45
|
|
|
(6.28
|
)
|
||||
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
(1.47
|
)
|
|
(1.47
|
)
|
|
(3.05
|
)
|
|
(6.67
|
)
|
||||
Discontinued operations
|
|
7.21
|
|
|
0.16
|
|
|
7.50
|
|
|
0.39
|
|
||||
Total
|
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5.74
|
|
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(1.31
|
)
|
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4.45
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|
|
(6.28
|
)
|
||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
25,329,492
|
|
|
25,101,847
|
|
|
25,267,310
|
|
|
25,028,072
|
|
||||
Diluted
|
|
25,329,492
|
|
|
25,101,847
|
|
|
25,267,310
|
|
|
25,028,072
|
|
|
|
Three months ended
September 30, |
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Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
|
$
|
145,250
|
|
|
$
|
(33,000
|
)
|
|
$
|
111,490
|
|
|
$
|
(157,920
|
)
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation and other
|
|
(1,320
|
)
|
|
(680
|
)
|
|
(30
|
)
|
|
(4,400
|
)
|
||||
Derivative instruments
|
|
(440
|
)
|
|
640
|
|
|
(1,720
|
)
|
|
2,960
|
|
||||
Total other comprehensive loss, net of tax
|
|
(1,760
|
)
|
|
(40
|
)
|
|
(1,750
|
)
|
|
(1,440
|
)
|
||||
Total comprehensive income (loss)
|
|
143,490
|
|
|
(33,040
|
)
|
|
109,740
|
|
|
(159,360
|
)
|
||||
Less: Comprehensive loss attributable to noncontrolling interest
|
|
(250
|
)
|
|
(240
|
)
|
|
(830
|
)
|
|
(790
|
)
|
||||
Comprehensive income (loss) attributable to Horizon Global
|
|
$
|
143,740
|
|
|
$
|
(32,800
|
)
|
|
$
|
110,570
|
|
|
$
|
(158,570
|
)
|
|
|
Nine months ended
September 30, |
||||||
|
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
111,490
|
|
|
$
|
(157,920
|
)
|
Less: Net income from discontinued operations
|
|
189,520
|
|
|
9,670
|
|
||
Net loss from continuing operations
|
|
(78,030
|
)
|
|
(167,590
|
)
|
||
|
|
|
|
|
||||
Adjustments to reconcile net loss from continued operations to net cash used for operating activities:
|
|
|
|
|
||||
Net (gain) loss on dispositions of property and equipment
|
|
(1,500
|
)
|
|
520
|
|
||
Depreciation
|
|
11,980
|
|
|
9,410
|
|
||
Amortization of intangible assets
|
|
4,800
|
|
|
5,640
|
|
||
Write off of operating lease assets
|
|
4,250
|
|
|
—
|
|
||
Impairment of goodwill and intangible assets
|
|
—
|
|
|
125,770
|
|
||
Amortization of original issuance discount and debt issuance costs
|
|
18,570
|
|
|
6,050
|
|
||
Deferred income taxes
|
|
(3,390
|
)
|
|
(3,370
|
)
|
||
Non-cash compensation expense
|
|
1,790
|
|
|
1,430
|
|
||
Paid-in-kind interest
|
|
7,620
|
|
|
—
|
|
||
Increase in receivables
|
|
(4,680
|
)
|
|
(31,950
|
)
|
||
Decrease in inventories
|
|
1,920
|
|
|
5,630
|
|
||
(Increase) decrease in prepaid expenses and other assets
|
|
(2,770
|
)
|
|
1,150
|
|
||
Decrease in accounts payable and accrued liabilities
|
|
(15,560
|
)
|
|
(27,450
|
)
|
||
Other, net
|
|
(10,800
|
)
|
|
220
|
|
||
Net cash used for operating activities for continuing operations
|
|
(65,800
|
)
|
|
(74,540
|
)
|
||
Cash Flows from Investing Activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(8,460
|
)
|
|
(9,660
|
)
|
||
Net proceeds from sale of business
|
|
214,570
|
|
|
—
|
|
||
Net proceeds from disposition of property and equipment
|
|
1,470
|
|
|
(280
|
)
|
||
Net cash provided by (used for) investing activities for continuing operations
|
|
207,580
|
|
|
(9,940
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
|
||||
Proceeds from borrowings on credit facilities
|
|
13,780
|
|
|
12,550
|
|
||
Repayments of borrowings on credit facilities
|
|
(6,520
|
)
|
|
(14,390
|
)
|
||
Proceeds from Second Lien Term Loan, net of issuance costs
|
|
35,520
|
|
|
45,430
|
|
||
Repayments of borrowings on First Lien Term Loan, inclusive of transaction costs
|
|
(173,430
|
)
|
|
(6,490
|
)
|
||
Proceeds from ABL Revolving Debt, net of issuance costs
|
|
68,790
|
|
|
72,430
|
|
||
Repayments of borrowings on ABL Revolving Debt
|
|
(112,510
|
)
|
|
(34,830
|
)
|
||
Proceeds from issuance of Series A Preferred Stock
|
|
5,340
|
|
|
—
|
|
||
Proceeds from issuance of Warrants
|
|
5,380
|
|
|
—
|
|
||
Other, net
|
|
(10
|
)
|
|
(300
|
)
|
||
Net cash (used for) provided by financing activities for continuing operations
|
|
(163,660
|
)
|
|
74,400
|
|
||
Discontinued Operations:
|
|
|
|
|
||||
Net cash provided by discontinued operating activities
|
|
11,430
|
|
|
8,500
|
|
||
Net cash used for discontinued investing activities
|
|
(1,120
|
)
|
|
(720
|
)
|
||
Net cash provided by (used for) discontinued financing activities
|
|
—
|
|
|
—
|
|
||
Net cash provided by discontinued operations
|
|
10,310
|
|
|
7,780
|
|
||
Effect of exchange rate changes on cash
|
|
280
|
|
|
40
|
|
||
Cash and Cash Equivalents:
|
|
|
|
|
||||
Decrease for the period
|
|
(11,290
|
)
|
|
(2,260
|
)
|
||
At beginning of period
|
|
27,650
|
|
|
29,570
|
|
||
At end of period
|
|
$
|
16,360
|
|
|
$
|
27,310
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
||||
Cash paid for interest
|
|
$
|
19,730
|
|
|
$
|
13,430
|
|
Cash paid for taxes
|
|
$
|
480
|
|
|
$
|
2,170
|
|
|
|
Common
Stock |
|
Common Stock Warrants
|
|
Paid-in
Capital |
|
Treasury Stock
|
|
Accumulated Deficit
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total Horizon Global Shareholders’ Deficit
|
|
Noncontrolling Interest
|
|
Total Shareholders’ Deficit
|
||||||||||||||||||
Balance at January 1, 2019
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
160,990
|
|
|
$
|
(10,000
|
)
|
|
$
|
(222,720
|
)
|
|
$
|
7,760
|
|
|
$
|
(63,720
|
)
|
|
$
|
(2,500
|
)
|
|
$
|
(66,220
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,100
|
)
|
|
—
|
|
|
(25,100
|
)
|
|
(520
|
)
|
|
(25,620
|
)
|
|||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
140
|
|
|
—
|
|
|
140
|
|
|||||||||
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350
|
|
|
—
|
|
|
350
|
|
|||||||||
Issuance of Warrants
|
|
—
|
|
|
5,380
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,380
|
|
|
—
|
|
|
5,380
|
|
|||||||||
Balance at March 31, 2019
|
|
250
|
|
|
5,380
|
|
|
161,330
|
|
|
(10,000
|
)
|
|
(247,820
|
)
|
|
7,900
|
|
|
(82,960
|
)
|
|
(3,020
|
)
|
|
(85,980
|
)
|
|||||||||
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,080
|
)
|
|
—
|
|
|
(8,080
|
)
|
|
(60
|
)
|
|
(8,140
|
)
|
|||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(130
|
)
|
|
(130
|
)
|
|
—
|
|
|
(130
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
590
|
|
|||||||||
Issuance of Warrants
|
|
—
|
|
|
5,340
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,340
|
|
|
—
|
|
|
5,340
|
|
|||||||||
Balance as of June 30, 2019
|
|
250
|
|
|
10,720
|
|
|
161,920
|
|
|
(10,000
|
)
|
|
(255,900
|
)
|
|
7,770
|
|
|
(85,240
|
)
|
|
(3,080
|
)
|
|
(88,320
|
)
|
|||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,510
|
|
|
—
|
|
|
145,510
|
|
|
(260
|
)
|
|
145,250
|
|
|||||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,760
|
)
|
|
(1,760
|
)
|
|
—
|
|
|
(1,760
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
840
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
840
|
|
|
—
|
|
|
840
|
|
|||||||||
Amounts reclassified from AOCI
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,260
|
)
|
|
(17,260
|
)
|
|
—
|
|
|
(17,260
|
)
|
|||||||||
Balance at September 30, 2019
|
|
$
|
250
|
|
|
$
|
10,720
|
|
|
$
|
162,760
|
|
|
$
|
(10,000
|
)
|
|
$
|
(110,390
|
)
|
|
$
|
(11,250
|
)
|
|
$
|
42,090
|
|
|
$
|
(3,340
|
)
|
|
$
|
38,750
|
|
|
|
Common
Stock |
|
Common Stock Warrants
|
|
Paid-in
Capital |
|
Treasury Stock
|
|
Accumulated Deficit
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total Horizon Global Shareholders’ Equity
|
|
Noncontrolling Interest
|
|
Total Shareholders’ Equity
|
||||||||||||||||||
Balance at December 31, 2017, as reported
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
159,490
|
|
|
$
|
(10,000
|
)
|
|
$
|
(17,860
|
)
|
|
$
|
10,010
|
|
|
$
|
141,890
|
|
|
$
|
(1,490
|
)
|
|
$
|
140,400
|
|
Impact of ASU 2018-02
|
|
—
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
(900
|
)
|
|
560
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Balance at January 1, 2018, as restated
|
|
250
|
|
|
—
|
|
|
159,830
|
|
|
(10,000
|
)
|
|
(18,760
|
)
|
|
10,570
|
|
|
141,890
|
|
|
(1,490
|
)
|
|
140,400
|
|
|||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,510
|
)
|
|
—
|
|
|
(57,510
|
)
|
|
(250
|
)
|
|
(57,760
|
)
|
|||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,680
|
|
|
4,680
|
|
|
10
|
|
|
4,690
|
|
|||||||||
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200
|
)
|
|
—
|
|
|
(200
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
|
720
|
|
|||||||||
Balance at March 31, 2018
|
|
250
|
|
|
—
|
|
|
160,350
|
|
|
(10,000
|
)
|
|
(76,270
|
)
|
|
15,250
|
|
|
89,580
|
|
|
(1,730
|
)
|
|
87,850
|
|
|||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66,930
|
)
|
|
—
|
|
|
(66,930
|
)
|
|
(230
|
)
|
|
(67,160
|
)
|
|||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,010
|
)
|
|
(6,010
|
)
|
|
(80
|
)
|
|
(6,090
|
)
|
|||||||||
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
490
|
|
|||||||||
Balance at June 30, 2018
|
|
250
|
|
|
—
|
|
|
160,830
|
|
|
(10,000
|
)
|
|
(143,200
|
)
|
|
9,240
|
|
|
17,120
|
|
|
(2,040
|
)
|
|
15,080
|
|
|||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,760
|
)
|
|
—
|
|
|
(32,760
|
)
|
|
(240
|
)
|
|
(33,000
|
)
|
|||||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|||||||||
Shares surrendered upon vesting of employees share based payment awards to cover tax obligations
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
(90
|
)
|
|||||||||
Non-cash compensation expense
|
|
—
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
220
|
|
|||||||||
Balance at September 30, 2018
|
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
160,960
|
|
|
$
|
(10,000
|
)
|
|
$
|
(175,960
|
)
|
|
$
|
9,200
|
|
|
$
|
(15,550
|
)
|
|
$
|
(2,280
|
)
|
|
$
|
(17,830
|
)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands)
|
|
(dollars in thousands)
|
||||||||||||
Net sales
|
|
$
|
29,750
|
|
|
$
|
33,810
|
|
|
$
|
92,300
|
|
|
$
|
101,760
|
|
Cost of sales
|
|
(22,250
|
)
|
|
(24,720
|
)
|
|
(68,530
|
)
|
|
(76,250
|
)
|
||||
Selling, general and administrative expenses
|
|
(3,050
|
)
|
|
(3,130
|
)
|
|
(9,580
|
)
|
|
(10,510
|
)
|
||||
Interest expense
|
|
(80
|
)
|
|
(60
|
)
|
|
(310
|
)
|
|
(210
|
)
|
||||
Other expense. net
|
|
(210
|
)
|
|
(470
|
)
|
|
(400
|
)
|
|
(1,800
|
)
|
||||
Income before income tax expense
|
|
4,160
|
|
|
5,430
|
|
|
13,480
|
|
|
12,990
|
|
||||
Income tax expense
|
|
(1,900
|
)
|
|
(1,320
|
)
|
|
(4,450
|
)
|
|
(3,320
|
)
|
||||
Gain on sale of discontinued operations
|
|
$
|
180,490
|
|
|
$
|
—
|
|
|
$
|
180,490
|
|
|
$
|
—
|
|
Income from discontinued operations, net of tax
|
|
$
|
182,750
|
|
|
$
|
4,110
|
|
|
$
|
189,520
|
|
|
$
|
9,670
|
|
|
|
December 31, 2018
|
||
|
|
(dollars in thousands)
|
||
Assets
|
|
|
||
Current assets:
|
|
|
||
Receivables, net of allowance for doubtful accounts
|
|
$
|
13,170
|
|
Inventories
|
|
21,490
|
|
|
Prepaid expenses and other current assets
|
|
1,420
|
|
|
Total current assets
|
|
36,080
|
|
|
Non-current assets:
|
|
|
||
Property and equipment, net
|
|
15,780
|
|
|
Goodwill
|
|
8,160
|
|
|
Other intangibles, net
|
|
8,650
|
|
|
Deferred income taxes
|
|
2,030
|
|
|
Other assets
|
|
170
|
|
|
Total non-current assets
|
|
34,790
|
|
|
Assets held-for-sale
|
|
$
|
70,870
|
|
Liabilities
|
|
|
||
Current liabilities:
|
|
|
||
Accounts payable
|
|
$
|
20,780
|
|
Accrued liabilities
|
|
7,300
|
|
|
Total current liabilities
|
|
28,080
|
|
|
Non-current liabilities:
|
|
|
||
Deferred income taxes
|
|
1,530
|
|
|
Other long-term liabilities
|
|
210
|
|
|
Total non-current liabilities
|
|
1,740
|
|
|
Total liabilities held-for-sale
|
|
$
|
29,820
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net Sales
|
|
|
|
|
|
|
||||||
Automotive OEM
|
|
$
|
21,050
|
|
|
$
|
43,200
|
|
|
$
|
64,250
|
|
Automotive OES
|
|
1,960
|
|
|
16,510
|
|
|
18,470
|
|
|||
Aftermarket
|
|
26,920
|
|
|
19,840
|
|
|
46,760
|
|
|||
Retail
|
|
26,600
|
|
|
—
|
|
|
26,600
|
|
|||
Industrial
|
|
7,650
|
|
|
780
|
|
|
8,430
|
|
|||
E-commerce
|
|
12,040
|
|
|
560
|
|
|
12,600
|
|
|||
Other
|
|
—
|
|
|
740
|
|
|
740
|
|
|||
Total
|
|
$
|
96,220
|
|
|
$
|
81,630
|
|
|
$
|
177,850
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net Sales
|
|
|
|
|
|
|
||||||
Automotive OEM
|
|
$
|
20,320
|
|
|
$
|
40,650
|
|
|
$
|
60,970
|
|
Automotive OES
|
|
1,700
|
|
|
12,600
|
|
|
14,300
|
|
|||
Aftermarket
|
|
38,470
|
|
|
19,980
|
|
|
58,450
|
|
|||
Retail
|
|
29,600
|
|
|
—
|
|
|
29,600
|
|
|||
Industrial
|
|
11,160
|
|
|
—
|
|
|
11,160
|
|
|||
E-commerce
|
|
13,750
|
|
|
1,290
|
|
|
15,040
|
|
|||
Other
|
|
510
|
|
|
4,000
|
|
|
4,510
|
|
|||
Total
|
|
$
|
115,510
|
|
|
$
|
78,520
|
|
|
$
|
194,030
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net Sales
|
|
|
|
|
|
|
||||||
Automotive OEM
|
|
$
|
64,970
|
|
|
$
|
137,900
|
|
|
$
|
202,870
|
|
Automotive OES
|
|
5,380
|
|
|
45,840
|
|
|
51,220
|
|
|||
Aftermarket
|
|
79,910
|
|
|
56,200
|
|
|
136,110
|
|
|||
Retail
|
|
88,230
|
|
|
—
|
|
|
88,230
|
|
|||
Industrial
|
|
23,860
|
|
|
2,340
|
|
|
26,200
|
|
|||
E-commerce
|
|
38,300
|
|
|
1,650
|
|
|
39,950
|
|
|||
Other
|
|
20
|
|
|
3,570
|
|
|
3,590
|
|
|||
Total
|
|
$
|
300,670
|
|
|
$
|
247,500
|
|
|
$
|
548,170
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Net Sales
|
|
|
|
|
|
|
||||||
Automotive OEM
|
|
$
|
60,320
|
|
|
$
|
134,930
|
|
|
$
|
195,250
|
|
Automotive OES
|
|
4,230
|
|
|
39,980
|
|
|
44,210
|
|
|||
Aftermarket
|
|
96,700
|
|
|
65,180
|
|
|
161,880
|
|
|||
Retail
|
|
96,330
|
|
|
—
|
|
|
96,330
|
|
|||
Industrial
|
|
31,680
|
|
|
—
|
|
|
31,680
|
|
|||
E-commerce
|
|
29,340
|
|
|
3,880
|
|
|
33,220
|
|
|||
Other
|
|
1,220
|
|
|
12,460
|
|
|
13,680
|
|
|||
Total
|
|
$
|
319,820
|
|
|
$
|
256,430
|
|
|
$
|
576,250
|
|
(dollars in thousands)
|
|
Horizon Americas
|
||
|
|
|
||
Balance at December 31, 2018
|
|
$
|
4,500
|
|
Foreign currency translation
|
|
(300
|
)
|
|
Balance at September 30, 2019
|
|
$
|
4,200
|
|
|
|
As of
September 30, 2019 |
||||||||||
Intangible Category by Useful Life
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Finite-lived intangible assets:
|
|
|
|
|
|
|
||||||
Customer relationships (2 – 20 years)
|
|
$
|
162,940
|
|
|
$
|
(129,020
|
)
|
|
$
|
33,920
|
|
Technology and other (3 – 15 years)
|
|
20,590
|
|
|
(14,630
|
)
|
|
5,960
|
|
|||
Trademark/Trade names (1 – 8 years)
|
|
150
|
|
|
(150
|
)
|
|
—
|
|
|||
Total finite-lived intangible assets
|
|
183,680
|
|
|
(143,800
|
)
|
|
39,880
|
|
|||
Trademark/Trade names, indefinite-lived
|
|
20,470
|
|
|
—
|
|
|
20,470
|
|
|||
Total other intangible assets
|
|
$
|
204,150
|
|
|
$
|
(143,800
|
)
|
|
$
|
60,350
|
|
|
|
As of
December 31, 2018 |
||||||||||
Intangible Category by Useful Life
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Finite-lived intangible assets:
|
|
|
|
|
|
|
||||||
Customer relationships (2 – 20 years)
|
|
$
|
168,230
|
|
|
$
|
(124,510
|
)
|
|
$
|
43,720
|
|
Technology and other (3 – 15 years)
|
|
20,490
|
|
|
(15,400
|
)
|
|
5,090
|
|
|||
Trademark/Trade names (1 – 8 years)
|
|
150
|
|
|
(150
|
)
|
|
—
|
|
|||
Total finite-lived intangible assets
|
|
188,870
|
|
|
(140,060
|
)
|
|
48,810
|
|
|||
Trademark/Trade names, indefinite-lived
|
|
20,590
|
|
|
—
|
|
|
20,590
|
|
|||
Total other intangible assets
|
|
$
|
209,460
|
|
|
$
|
(140,060
|
)
|
|
$
|
69,400
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Technology and other, included in cost of sales
|
|
$
|
260
|
|
|
$
|
430
|
|
|
$
|
980
|
|
|
$
|
990
|
|
Customer relationships and Trademark/Trade names, included in selling, general and administrative expenses
|
|
1,410
|
|
|
1,600
|
|
|
3,820
|
|
|
4,650
|
|
||||
Total amortization expense
|
|
$
|
1,670
|
|
|
$
|
2,030
|
|
|
$
|
4,800
|
|
|
$
|
5,640
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(dollars in thousands)
|
||||||
Finished goods
|
|
$
|
80,440
|
|
|
$
|
89,000
|
|
Work in process
|
|
12,880
|
|
|
16,160
|
|
||
Raw materials
|
|
47,830
|
|
|
47,040
|
|
||
Total inventories
|
|
$
|
141,150
|
|
|
$
|
152,200
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(dollars in thousands)
|
||||||
Land and land improvements
|
|
$
|
440
|
|
|
$
|
460
|
|
Buildings
|
|
20,460
|
|
|
18,680
|
|
||
Machinery and equipment
|
|
120,840
|
|
|
121,230
|
|
||
|
|
141,740
|
|
|
140,370
|
|
||
Accumulated depreciation
|
|
(63,070
|
)
|
|
(53,870
|
)
|
||
Property and equipment, net
|
|
$
|
78,670
|
|
|
$
|
86,500
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Depreciation expense, included in cost of sales
|
|
$
|
3,170
|
|
|
$
|
2,960
|
|
|
$
|
9,760
|
|
|
$
|
8,630
|
|
Depreciation expense, included in selling, general and administrative expense
|
|
1,420
|
|
|
270
|
|
|
2,220
|
|
|
780
|
|
||||
Total depreciation expense
|
|
$
|
4,590
|
|
|
$
|
3,230
|
|
|
$
|
11,980
|
|
|
$
|
9,410
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(dollars in thousands)
|
||||||
Customer incentives
|
|
$
|
12,700
|
|
|
$
|
9,990
|
|
Customer claims
|
|
10,370
|
|
|
14,130
|
|
||
Accrued compensation
|
|
8,890
|
|
|
5,680
|
|
||
Accrued professional services
|
|
3,940
|
|
|
4,380
|
|
||
Restructuring
|
|
2,450
|
|
|
7,530
|
|
||
Deferred purchase price
|
|
750
|
|
|
3,400
|
|
||
Short-term tax liabilities
|
|
750
|
|
|
1,130
|
|
||
Cross currency swap
|
|
—
|
|
|
1,610
|
|
||
Other
|
|
13,170
|
|
|
10,670
|
|
||
Total accrued liabilities
|
|
$
|
53,020
|
|
|
$
|
58,520
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(dollars in thousands)
|
||||||
Long-term tax liabilities
|
|
$
|
6,220
|
|
|
$
|
6,270
|
|
Deferred purchase price
|
|
2,440
|
|
|
30
|
|
||
Restructuring
|
|
1,980
|
|
|
2,580
|
|
||
Other
|
|
10,130
|
|
|
10,870
|
|
||
Total other long-term liabilities
|
|
$
|
20,770
|
|
|
$
|
19,750
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(dollars in thousands)
|
||||||
ABL Facility
|
|
$
|
19,660
|
|
|
$
|
61,570
|
|
First Lien Term Loan
|
|
25,010
|
|
|
190,520
|
|
||
Second Lien Term Loan
|
|
55,060
|
|
|
—
|
|
||
Convertible Notes
|
|
125,000
|
|
|
125,000
|
|
||
Bank facilities, capital leases and other long-term debt
|
|
14,470
|
|
|
18,990
|
|
||
Gross debt
|
|
239,200
|
|
|
396,080
|
|
||
Less:
|
|
|
|
|
||||
Current maturities, long-term debt
|
|
24,270
|
|
|
13,860
|
|
||
Gross long-term debt
|
|
214,930
|
|
|
382,220
|
|
||
Less:
|
|
|
|
|
||||
Unamortized debt issuance costs and original issuance discount on First Lien Term Loan
|
|
790
|
|
|
7,380
|
|
||
Unamortized debt issuance costs and discount on Second Lien Term Loan
|
|
13,800
|
|
|
—
|
|
||
Unamortized debt issuance costs and discount on Convertible Notes
|
|
19,610
|
|
|
24,190
|
|
||
Unamortized debt issuance costs and discount
|
|
34,200
|
|
|
31,570
|
|
||
Long-term debt
|
|
$
|
180,730
|
|
|
$
|
350,650
|
|
|
|
|
|
Asset / (Liability) Derivatives
|
||||||
|
|
Balance Sheet Caption
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
|
|
(dollars in thousands)
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
Prepaid expenses and other current assets
|
|
$
|
220
|
|
|
$
|
1,910
|
|
Cross currency swap
|
|
Accrued liabilities
|
|
—
|
|
|
(2,480
|
)
|
||
Total derivatives designated as hedging instruments
|
|
|
|
220
|
|
|
(570
|
)
|
||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
||||
Foreign currency forward contracts
|
|
Prepaid expenses and other current assets
|
|
100
|
|
|
70
|
|
||
Total derivatives de-designated as hedging instruments
|
|
|
|
100
|
|
|
70
|
|
||
Total derivatives
|
|
|
|
$
|
320
|
|
|
$
|
(500
|
)
|
|
Amount of Gain Recognized in AOCI on Derivatives (net of tax)
|
||||||
|
As of September 30,
|
|
As of December 31,
|
||||
|
2019
|
|
2018
|
||||
|
(dollars in thousands)
|
||||||
Derivatives classified as cash flow hedges:
|
|||||||
Foreign currency forward contracts
|
$
|
220
|
|
|
$
|
1,870
|
|
Cross currency swap
|
$
|
—
|
|
|
$
|
90
|
|
|
|
Nine months ended September 30,
|
||||||||||||||
|
|
2019
|
2018
|
|||||||||||||
|
|
Cost of sales
|
|
Interest expense
|
|
Cost of sales
|
|
Interest expense
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Total Amounts of Expense Line Items Presented in the Statement of Operations in Which the Effects of Cash Flow Hedges are Recorded
|
|
$
|
(460,010
|
)
|
|
$
|
(50,270
|
)
|
|
$
|
(472,120
|
)
|
|
$
|
(19,580
|
)
|
Amount of Gain Reclassified from AOCI into Earnings
|
|
|
||||||||||||||
Derivatives classified as cash flow hedges:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
|
$
|
1,550
|
|
|
$
|
—
|
|
|
$
|
590
|
|
|
$
|
—
|
|
Cross currency swap
|
|
$
|
—
|
|
|
$
|
900
|
|
|
$
|
—
|
|
|
$
|
4,000
|
|
|
|
Frequency
|
|
Asset / (Liability)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||||||
|
|
|
|
(dollars in thousands)
|
||||||||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
|
Recurring
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
—
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Foreign currency forward contracts
|
|
Recurring
|
|
$
|
1,980
|
|
|
$
|
—
|
|
|
$
|
1,980
|
|
|
$
|
—
|
|
Cross currency swaps
|
|
Recurring
|
|
$
|
(2,480
|
)
|
|
$
|
—
|
|
|
$
|
(2,480
|
)
|
|
$
|
—
|
|
|
|
Employee Costs
|
|
Facility Closure and Other Costs
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Balance at January 1, 2019
|
|
$
|
4,990
|
|
|
$
|
5,120
|
|
|
$
|
10,110
|
|
Payments and other(1)
|
|
(3,810
|
)
|
|
$
|
(1,870
|
)
|
|
(5,680
|
)
|
||
Balance at September 30, 2019
|
|
$
|
1,180
|
|
|
$
|
3,250
|
|
|
$
|
4,430
|
|
Years ending December 31,
|
|
Operating Leases
|
||
|
|
(dollars in thousands)
|
||
2019
|
|
$
|
4,990
|
|
2020
|
|
14,120
|
|
|
2021
|
|
13,180
|
|
|
2022
|
|
11,270
|
|
|
2023
|
|
9,000
|
|
|
2024 and thereafter
|
|
29,900
|
|
|
Total lease payments
|
|
82,460
|
|
|
Less imputed interest
|
|
(21,720
|
)
|
|
Present value of lease liabilities
|
|
$
|
60,740
|
|
December 31,
|
|
Minimum Payments
|
||
|
|
(dollars in thousands)
|
||
2019
|
|
$
|
12,380
|
|
2020
|
|
11,350
|
|
|
2021
|
|
10,120
|
|
|
2022
|
|
7,350
|
|
|
2023
|
|
4,350
|
|
|
Thereafter
|
|
12,480
|
|
|
Total
|
|
$
|
58,030
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands, except share and per share data)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations
|
|
$
|
(37,500
|
)
|
|
$
|
(37,110
|
)
|
|
$
|
(78,030
|
)
|
|
$
|
(167,590
|
)
|
Income from discontinued operations, net of tax
|
|
$
|
182,750
|
|
|
$
|
4,110
|
|
|
$
|
189,520
|
|
|
$
|
9,670
|
|
Less: Net loss attributable to noncontrolling interest
|
|
$
|
(260
|
)
|
|
$
|
(240
|
)
|
|
$
|
(840
|
)
|
|
$
|
(720
|
)
|
Net income (loss) attributable to Horizon Global
|
|
$
|
145,510
|
|
|
$
|
(32,760
|
)
|
|
$
|
112,330
|
|
|
$
|
(157,200
|
)
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic
|
|
25,329,492
|
|
|
25,101,847
|
|
|
25,267,310
|
|
|
25,028,072
|
|
||||
Dilutive effect of stock-based awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average shares outstanding, diluted
|
|
25,329,492
|
|
|
25,101,847
|
|
|
25,267,310
|
|
|
25,028,072
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share attributable to Horizon Global
|
|
|
|
|
|
|
|
|
||||||||
Continuing Operations
|
|
$
|
(1.47
|
)
|
|
$
|
(1.47
|
)
|
|
$
|
(3.05
|
)
|
|
$
|
(6.67
|
)
|
Discontinued Operations
|
|
$
|
7.21
|
|
|
$
|
0.16
|
|
|
$
|
7.50
|
|
|
$
|
0.39
|
|
Total
|
|
$
|
5.74
|
|
|
$
|
(1.31
|
)
|
|
$
|
4.45
|
|
|
$
|
(6.28
|
)
|
Diluted income (loss) per share attributable to Horizon Global
|
|
|
|
|
|
|
|
|
||||||||
Continuing Operations
|
|
$
|
(1.47
|
)
|
|
$
|
(1.47
|
)
|
|
$
|
(3.05
|
)
|
|
$
|
(6.67
|
)
|
Discontinued Operations
|
|
$
|
7.21
|
|
|
$
|
0.16
|
|
|
$
|
7.50
|
|
|
$
|
0.39
|
|
Total
|
|
$
|
5.74
|
|
|
$
|
(1.31
|
)
|
|
$
|
4.45
|
|
|
$
|
(6.28
|
)
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Number of options
|
|
53,321
|
|
|
220,726
|
|
|
61,184
|
|
|
285,538
|
|
Exercise price of options
|
|
$9.20 - $11.29
|
|
|
$9.20 - $11.29
|
|
|
$9.20 - $11.29
|
|
|
$9.20 - $11.29
|
|
Restricted stock units
|
|
1,524,778
|
|
|
629,507
|
|
|
1,101,855
|
|
|
685,286
|
|
Convertible Notes
|
|
5,005,000
|
|
|
5,005,000
|
|
|
5,005,000
|
|
|
5,005,000
|
|
Convertible Notes warrants
|
|
5,005,000
|
|
|
5,005,000
|
|
|
5,005,000
|
|
|
5,005,000
|
|
Second Lien Term Loan warrants
|
|
6,545,479
|
|
|
—
|
|
|
3,671,607
|
|
|
—
|
|
|
|
Number of Stock Options
|
|
Weighted Average Exercise Price
|
|
Average Remaining Contractual Life (Years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at December 31, 2018
|
|
92,967
|
|
|
$
|
10.40
|
|
|
|
|
|
||
Granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Canceled, forfeited
|
|
(39,646
|
)
|
|
10.31
|
|
|
|
|
|
|||
Expired
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at September 30, 2019
|
|
53,321
|
|
|
$
|
10.43
|
|
|
5.8
|
|
$
|
—
|
|
|
|
Number of Restricted Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at December 31, 2018
|
|
419,928
|
|
|
$
|
9.75
|
|
Granted
|
|
1,527,322
|
|
|
3.46
|
|
|
Vested
|
|
(145,981
|
)
|
|
7.40
|
|
|
Canceled, forfeited
|
|
(287,829
|
)
|
|
4.02
|
|
|
Outstanding at September 30, 2019
|
|
1,513,440
|
|
|
$
|
4.31
|
|
|
|
Derivative Instruments
|
|
Foreign Currency Translation
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Balance at January 1, 2019
|
|
$
|
1,960
|
|
|
$
|
5,800
|
|
|
$
|
7,760
|
|
Net unrealized gains arising during the period
|
|
730
|
|
|
(30
|
)
|
|
700
|
|
|||
Less: Net realized gains reclassified to net loss
|
|
2,450
|
|
|
—
|
|
|
2,450
|
|
|||
Amounts reclassified from AOCI
|
|
(20
|
)
|
|
(17,240
|
)
|
|
(17,260
|
)
|
|||
Net current-period change
|
|
(1,740
|
)
|
|
(17,270
|
)
|
|
(19,010
|
)
|
|||
Balance at September 30, 2019
|
|
$
|
220
|
|
|
$
|
(11,470
|
)
|
|
$
|
(11,250
|
)
|
|
|
Derivative Instruments
|
|
Foreign Currency Translation
|
|
Total
|
||||||
|
|
(dollars in thousands)
|
||||||||||
Balance at January 1, 2018
|
|
$
|
(310
|
)
|
|
$
|
10,880
|
|
|
$
|
10,570
|
|
Net unrealized gains (losses) arising during the period (a)
|
|
6,850
|
|
|
(4,330
|
)
|
|
2,520
|
|
|||
Less: Net realized losses reclassified to net loss (b)
|
|
3,890
|
|
|
—
|
|
|
3,890
|
|
|||
Net current-period change
|
|
2,960
|
|
|
(4,330
|
)
|
|
(1,370
|
)
|
|||
Balance at September 30, 2018
|
|
$
|
2,650
|
|
|
$
|
6,550
|
|
|
$
|
9,200
|
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Net Sales
|
|
|
|
|
|
|
|
|
||||||||
Horizon Americas
|
|
$
|
96,220
|
|
|
$
|
115,510
|
|
|
$
|
300,670
|
|
|
$
|
319,820
|
|
Horizon Europe-Africa
|
|
81,630
|
|
|
78,520
|
|
|
247,500
|
|
|
256,430
|
|
||||
Total
|
|
$
|
177,850
|
|
|
$
|
194,030
|
|
|
$
|
548,170
|
|
|
$
|
576,250
|
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Horizon Americas
|
|
$
|
(2,230
|
)
|
|
$
|
7,270
|
|
|
$
|
5,760
|
|
|
$
|
4,730
|
|
Horizon Europe-Africa
|
|
1,730
|
|
|
(31,370
|
)
|
|
120
|
|
|
(132,150
|
)
|
||||
Corporate
|
|
(12,260
|
)
|
|
(5,800
|
)
|
|
(29,360
|
)
|
|
(28,950
|
)
|
||||
Total
|
|
$
|
(12,760
|
)
|
|
$
|
(29,900
|
)
|
|
$
|
(23,480
|
)
|
|
$
|
(156,370
|
)
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Loss on sale of business
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3,630
|
)
|
|
$
|
—
|
|
Foreign currency gain / (loss)
|
|
(1,180
|
)
|
|
(530
|
)
|
|
(1,800
|
)
|
|
(1,070
|
)
|
||||
Customer pay discounts
|
|
(300
|
)
|
|
(610
|
)
|
|
(1,220
|
)
|
|
(1,400
|
)
|
||||
Accretion arising from lease recovery
|
|
(30
|
)
|
|
(50
|
)
|
|
(100
|
)
|
|
(200
|
)
|
||||
Brazil acquisition indemnification asset
|
|
—
|
|
|
(290
|
)
|
|
—
|
|
|
(1,410
|
)
|
||||
Brink acquisition ticking fee
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,130
|
)
|
||||
Other
|
|
(130
|
)
|
|
440
|
|
|
140
|
|
|
1,800
|
|
||||
Total
|
|
$
|
(1,640
|
)
|
|
$
|
(1,040
|
)
|
|
$
|
(6,610
|
)
|
|
$
|
(7,410
|
)
|
•
|
Our ability to realize the expected economic benefits of the changes made to our manufacturing and distribution footprint and management team during 2018 and 2019
|
•
|
Our ability to quickly and cost-effectively introduce new products
|
•
|
Our ability to continue to integrate acquired companies or products that have historically supplemented existing product lines, add new distribution channels and expand our geographic coverage and realize desired operating efficiencies
|
•
|
Our ability to manage our cost structure more efficiently via supply base management, internal sourcing and/or purchasing of materials, selective outsourcing and/or purchasing of support functions, working capital management, and leverage of our administrative functions.
|
|
|
Three months ended September 30,
|
|
Change
|
|
Constant Currency Change
|
||||||||||||||||||||||
|
|
2019
|
|
As a Percentage of Net Sales
|
|
2018
|
|
As a Percentage of Net Sales
|
|
$
|
|
%
|
|
$
|
|
%
|
||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Horizon Americas
|
|
$
|
96,220
|
|
|
54.1
|
%
|
|
$
|
115,510
|
|
|
59.5
|
%
|
|
$
|
(19,290
|
)
|
|
(16.7
|
%)
|
|
$
|
(19,280
|
)
|
|
(16.7
|
%)
|
Horizon Europe-Africa
|
|
81,630
|
|
|
45.9
|
%
|
|
78,520
|
|
|
40.5
|
%
|
|
3,110
|
|
|
4.0
|
%
|
|
6,990
|
|
|
8.9
|
%
|
||||
Total
|
|
$
|
177,850
|
|
|
100.0
|
%
|
|
$
|
194,030
|
|
|
100.0
|
%
|
|
$
|
(16,180
|
)
|
|
(8.3
|
%)
|
|
$
|
(12,290
|
)
|
|
(6.3
|
%)
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Horizon Americas
|
|
$
|
17,270
|
|
|
17.9
|
%
|
|
$
|
27,780
|
|
|
24.0
|
%
|
|
$
|
(10,510
|
)
|
|
(37.8
|
%)
|
|
$
|
(10,460
|
)
|
|
(37.7
|
%)
|
Horizon Europe-Africa
|
|
11,020
|
|
|
13.5
|
%
|
|
6,750
|
|
|
8.6
|
%
|
|
4,270
|
|
|
63.3
|
%
|
|
4,800
|
|
|
71.1
|
%
|
||||
Total
|
|
$
|
28,290
|
|
|
15.9
|
%
|
|
$
|
34,530
|
|
|
17.8
|
%
|
|
$
|
(6,240
|
)
|
|
(18.1
|
%)
|
|
$
|
(5,660
|
)
|
|
(16.4
|
%)
|
Selling, General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Horizon Americas
|
|
$
|
19,500
|
|
|
20.3
|
%
|
|
$
|
20,460
|
|
|
17.7
|
%
|
|
$
|
(960
|
)
|
|
(4.7
|
%)
|
|
$
|
(940
|
)
|
|
(4.6
|
%)
|
Horizon Europe-Africa
|
|
9,330
|
|
|
11.4
|
%
|
|
11,370
|
|
|
14.5
|
%
|
|
(2,040
|
)
|
|
(17.9
|
%)
|
|
(1,600
|
)
|
|
(14.1
|
%)
|
||||
Corporate
|
|
12,270
|
|
|
6.9
|
%
|
|
5,850
|
|
|
3.0
|
%
|
|
6,420
|
|
|
109.7
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Total
|
|
$
|
41,100
|
|
|
23.1
|
%
|
|
$
|
37,680
|
|
|
19.4
|
%
|
|
$
|
3,420
|
|
|
9.1
|
%
|
|
$
|
(2,540
|
)
|
|
15.8
|
%
|
Operating Profit (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Horizon Americas
|
|
$
|
(2,230
|
)
|
|
(2.3
|
)%
|
|
$
|
7,270
|
|
|
6.3
|
%
|
|
$
|
(9,500
|
)
|
|
(130.7
|
%)
|
|
$
|
(9,480
|
)
|
|
(130.4
|
%)
|
Horizon Europe-Africa
|
|
1,730
|
|
|
2.1
|
%
|
|
(31,370
|
)
|
|
(40.0
|
)%
|
|
33,100
|
|
|
(105.5
|
%)
|
|
33,200
|
|
|
(105.8
|
%)
|
||||
Corporate
|
|
(12,260
|
)
|
|
(6.9
|
)%
|
|
(5,800
|
)
|
|
(3.0
|
)%
|
|
(6,460
|
)
|
|
111.4
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Total
|
|
$
|
(12,760
|
)
|
|
(7.2
|
)%
|
|
$
|
(29,900
|
)
|
|
(15.4
|
)%
|
|
$
|
17,140
|
|
|
(57.3
|
%)
|
|
$
|
23,720
|
|
|
22.0
|
%
|
|
|
Three months ended
September 30, 2019 |
||||||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Corporate
|
|
Consolidated
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Net income attributable to Horizon Global
|
|
|
|
|
|
|
|
$
|
145,510
|
|
||||||
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
(260
|
)
|
|||||||
Net income
|
|
|
|
|
|
|
|
145,250
|
|
|||||||
Interest expense
|
|
|
|
|
|
|
|
24,120
|
|
|||||||
Income tax benefit
|
|
|
|
|
|
|
|
(1,020
|
)
|
|||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
6,250
|
|
|||||||
EBITDA
|
|
(940
|
)
|
|
1,380
|
|
|
174,160
|
|
|
174,600
|
|
||||
Net loss attributable to noncontrolling interest
|
|
—
|
|
|
260
|
|
|
—
|
|
|
260
|
|
||||
Income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(182,750
|
)
|
|
(182,750
|
)
|
||||
Severance
|
|
—
|
|
|
—
|
|
|
1,620
|
|
|
1,620
|
|
||||
Restructuring, relocation and related business disruption costs
|
|
(200
|
)
|
|
—
|
|
|
4,250
|
|
|
4,050
|
|
||||
Non-cash stock compensation
|
|
—
|
|
|
—
|
|
|
850
|
|
|
850
|
|
||||
(Gain) loss on business divestitures and other assets
|
|
320
|
|
|
—
|
|
|
(1,320
|
)
|
|
(1,000
|
)
|
||||
Product liability and litigation claims
|
|
820
|
|
|
(4,270
|
)
|
|
—
|
|
|
(3,450
|
)
|
||||
Debt issuance costs
|
|
—
|
|
|
—
|
|
|
530
|
|
|
530
|
|
||||
Unrealized remeasurement costs
|
|
240
|
|
|
650
|
|
|
300
|
|
|
1,190
|
|
||||
Other (income) expense, net
|
|
310
|
|
|
2,720
|
|
|
(1,980
|
)
|
|
1,050
|
|
||||
Adjusted EBITDA
|
|
$
|
550
|
|
|
$
|
740
|
|
|
$
|
(4,340
|
)
|
|
$
|
(3,050
|
)
|
|
|
Three months ended
September 30, 2018 |
||||||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Corporate
|
|
Consolidated
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Net loss attributable to Horizon Global
|
|
|
|
|
|
|
|
$
|
(32,760
|
)
|
||||||
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
(240
|
)
|
|||||||
Net loss
|
|
|
|
|
|
|
|
(33,000
|
)
|
|||||||
Interest expense
|
|
|
|
|
|
|
|
7,590
|
|
|||||||
Income tax benefit
|
|
|
|
|
|
|
|
(1,420
|
)
|
|||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
5,090
|
|
|||||||
EBITDA
|
|
8,030
|
|
|
(31,560
|
)
|
|
1,790
|
|
|
(21,740
|
)
|
||||
Net loss attributable to noncontrolling interest
|
|
—
|
|
|
230
|
|
|
—
|
|
|
230
|
|
||||
Income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(4,110
|
)
|
|
(4,110
|
)
|
||||
Severance
|
|
660
|
|
|
—
|
|
|
—
|
|
|
660
|
|
||||
Restructuring, relocation and related business disruption costs
|
|
4,220
|
|
|
1,370
|
|
|
—
|
|
|
5,590
|
|
||||
Impairment of goodwill and other intangibles
|
|
—
|
|
|
26,640
|
|
|
—
|
|
|
26,640
|
|
||||
Non-cash stock compensation
|
|
—
|
|
|
—
|
|
|
230
|
|
|
230
|
|
||||
Acquisition and integration costs
|
|
—
|
|
|
70
|
|
|
1,130
|
|
|
1,200
|
|
||||
(Gain) loss on business divestitures and other assets
|
|
650
|
|
|
—
|
|
|
—
|
|
|
650
|
|
||||
Unrealized remeasurement costs
|
|
110
|
|
|
530
|
|
|
(110
|
)
|
|
530
|
|
||||
Other (income) expense, net
|
|
570
|
|
|
2,650
|
|
|
(3,290
|
)
|
|
(70
|
)
|
||||
Adjusted EBITDA
|
|
$
|
14,240
|
|
|
$
|
(70
|
)
|
|
$
|
(4,360
|
)
|
|
$
|
9,810
|
|
|
|
Three months ended September 30,
|
|
Change
|
|||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net Sales
|
|
|
|
|
|
|
|
|
|||||||
Automotive OEM
|
|
$
|
21,050
|
|
|
$
|
20,320
|
|
|
$
|
730
|
|
|
3.6
|
%
|
Automotive OES
|
|
1,960
|
|
|
1,700
|
|
|
260
|
|
|
15.3
|
%
|
|||
Aftermarket
|
|
26,920
|
|
|
38,470
|
|
|
(11,550
|
)
|
|
(30.0
|
)%
|
|||
Retail
|
|
26,600
|
|
|
29,600
|
|
|
(3,000
|
)
|
|
(10.1
|
)%
|
|||
Industrial
|
|
7,650
|
|
|
11,160
|
|
|
(3,510
|
)
|
|
(31.5
|
)%
|
|||
E-commerce
|
|
12,040
|
|
|
13,750
|
|
|
(1,710
|
)
|
|
(12.4
|
)%
|
|||
Other
|
|
—
|
|
|
510
|
|
|
(510
|
)
|
|
N/A
|
|
|||
Total
|
|
$
|
96,220
|
|
|
$
|
115,510
|
|
|
$
|
(19,290
|
)
|
|
(16.7
|
)%
|
–
|
$3.3 million unfavorable material input costs primarily related to higher freight and tariff costs
|
–
|
$3.0 million unfavorable manufacturing costs; and
|
–
|
$3.0 million higher scrap costs and inventory reserves; partially offset by
|
–
|
$2.7 million of prior-year comparable period restructuring and footprint rationalization projects and related cost inefficiencies that did not reoccur; and
|
–
|
$2.4 million in lower outbound freight costs
|
–
|
$3.5 million in prior-year comparable period organizational restructuring efforts and costs that did not reoccur, partially offset by
|
–
|
$1.6 million additional professional fees and litigation claims; and
|
–
|
$0.8 million increased allowance for doubtful accounts
|
|
|
Three months ended September 30,
|
|
Change
|
|||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net Sales
|
|
|
|
|
|
|
|
|
|||||||
Automotive OEM
|
|
$
|
43,200
|
|
|
$
|
40,650
|
|
|
$
|
2,550
|
|
|
6.3
|
%
|
Automotive OES
|
|
16,510
|
|
|
12,600
|
|
|
3,910
|
|
|
31.0
|
%
|
|||
Aftermarket
|
|
19,840
|
|
|
19,980
|
|
|
(140
|
)
|
|
(0.7
|
)%
|
|||
Industrial
|
|
780
|
|
|
—
|
|
|
780
|
|
|
N/A
|
|
|||
E-commerce
|
|
560
|
|
|
1,290
|
|
|
(730
|
)
|
|
(56.6
|
)%
|
|||
Other
|
|
740
|
|
|
4,000
|
|
|
(3,260
|
)
|
|
(81.5
|
)%
|
|||
Total
|
|
$
|
81,630
|
|
|
$
|
78,520
|
|
|
$
|
3,110
|
|
|
4.0
|
%
|
–
|
$4.3 million favorable expense recovery related to the settlement of potential product liability claims (see Note 13, “Contingencies”) with one OEM customer
|
–
|
$1.3 million of additional costs incurred in the prior-year period related to restructuring and footprint rationalization projects that did not reoccur; and
|
–
|
$0.7 million reduction in personnel and compensation costs
|
|
|
Nine months ended
September 30, 2019 |
||||||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Corporate
|
|
Consolidated
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Net income attributable to Horizon Global
|
|
|
|
|
|
|
|
$
|
112,330
|
|
||||||
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
(840
|
)
|
|||||||
Net income
|
|
|
|
|
|
|
|
111,490
|
|
|||||||
Interest expense
|
|
|
|
|
|
|
|
50,270
|
|
|||||||
Income tax benefit
|
|
|
|
|
|
|
|
(2,330
|
)
|
|||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
16,790
|
|
|||||||
EBITDA
|
|
10,100
|
|
|
(3,770
|
)
|
|
169,890
|
|
|
176,220
|
|
||||
Net loss attributable to noncontrolling interest
|
|
—
|
|
|
840
|
|
|
—
|
|
|
840
|
|
||||
Income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(189,520
|
)
|
|
(189,520
|
)
|
||||
Severance
|
|
(200
|
)
|
|
10
|
|
|
1,620
|
|
|
1,430
|
|
||||
Restructuring, relocation and related business disruption costs
|
|
1,110
|
|
|
(1,410
|
)
|
|
4,250
|
|
|
3,950
|
|
||||
Non-cash stock compensation
|
|
—
|
|
|
—
|
|
|
1,820
|
|
|
1,820
|
|
||||
(Gain) loss on business divestitures and other assets
|
|
1,280
|
|
|
3,630
|
|
|
—
|
|
|
4,910
|
|
||||
Board transition support
|
|
—
|
|
|
—
|
|
|
1,450
|
|
|
1,450
|
|
||||
Product liability and litigation claims
|
|
820
|
|
|
50
|
|
|
—
|
|
|
870
|
|
||||
Debt issuance costs
|
|
—
|
|
|
—
|
|
|
2,660
|
|
|
2,660
|
|
||||
Unrealized remeasurement costs
|
|
160
|
|
|
1,210
|
|
|
440
|
|
|
1,810
|
|
||||
Other (income) expense, net
|
|
730
|
|
|
8,140
|
|
|
(7,120
|
)
|
|
1,750
|
|
||||
Adjusted EBITDA
|
|
$
|
14,000
|
|
|
$
|
8,700
|
|
|
$
|
(14,510
|
)
|
|
$
|
8,190
|
|
|
|
Nine months ended
September 30, 2018 |
||||||||||||||
|
|
Horizon Americas
|
|
Horizon Europe-Africa
|
|
Corporate
|
|
Consolidated
|
||||||||
|
|
(dollars in thousands)
|
||||||||||||||
Net loss attributable to Horizon Global
|
|
|
|
|
|
|
|
$
|
(157,200
|
)
|
||||||
Net loss attributable to noncontrolling interest
|
|
|
|
|
|
|
|
(720
|
)
|
|||||||
Net loss
|
|
|
|
|
|
|
|
(157,920
|
)
|
|||||||
Interest expense
|
|
|
|
|
|
|
|
19,580
|
|
|||||||
Income tax benefit
|
|
|
|
|
|
|
|
(15,770
|
)
|
|||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
15,070
|
|
|||||||
EBITDA
|
|
7,260
|
|
|
(132,630
|
)
|
|
(13,670
|
)
|
|
(139,040
|
)
|
||||
Net loss attributable to noncontrolling interest
|
|
—
|
|
|
720
|
|
|
—
|
|
|
720
|
|
||||
Income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(9,670
|
)
|
|
(9,670
|
)
|
||||
Severance
|
|
5,010
|
|
|
1,560
|
|
|
2,750
|
|
|
9,320
|
|
||||
Restructuring, relocation and related business disruption costs
|
|
11,830
|
|
|
2,820
|
|
|
—
|
|
|
14,650
|
|
||||
Impairment of goodwill and other intangibles
|
|
—
|
|
|
125,770
|
|
|
—
|
|
|
125,770
|
|
||||
Non-cash stock compensation
|
|
—
|
|
|
—
|
|
|
1,440
|
|
|
1,440
|
|
||||
Acquisition and integration costs
|
|
—
|
|
|
1,390
|
|
|
16,130
|
|
|
17,520
|
|
||||
(Gain) loss on business divestitures and other assets
|
|
1,490
|
|
|
—
|
|
|
—
|
|
|
1,490
|
|
||||
Unrealized remeasurement costs
|
|
110
|
|
|
750
|
|
|
200
|
|
|
1,060
|
|
||||
Other (income) expense, net
|
|
2,160
|
|
|
8,310
|
|
|
(10,710
|
)
|
|
(240
|
)
|
||||
Adjusted EBITDA
|
|
$
|
27,860
|
|
|
$
|
8,690
|
|
|
$
|
(13,530
|
)
|
|
$
|
23,020
|
|
|
|
Nine months ended September 30,
|
|
Change
|
|||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net Sales
|
|
|
|
|
|
|
|
|
|||||||
Automotive OEM
|
|
$
|
64,970
|
|
|
$
|
60,320
|
|
|
$
|
4,650
|
|
|
7.7
|
%
|
Automotive OES
|
|
5,380
|
|
|
4,230
|
|
|
1,150
|
|
|
27.2
|
%
|
|||
Aftermarket
|
|
79,910
|
|
|
96,700
|
|
|
(16,790
|
)
|
|
(17.4
|
)%
|
|||
Retail
|
|
88,230
|
|
|
96,330
|
|
|
(8,100
|
)
|
|
(8.4
|
)%
|
|||
Industrial
|
|
23,860
|
|
|
31,680
|
|
|
(7,820
|
)
|
|
(24.7
|
)%
|
|||
E-commerce
|
|
38,300
|
|
|
29,340
|
|
|
8,960
|
|
|
30.5
|
%
|
|||
Other
|
|
20
|
|
|
1,220
|
|
|
(1,200
|
)
|
|
N/A
|
|
|||
Total
|
|
$
|
300,670
|
|
|
$
|
319,820
|
|
|
$
|
(19,150
|
)
|
|
(6.0
|
)%
|
–
|
$9.1 million unfavorable material input costs primarily related to higher freight and tariff costs
|
–
|
$8.5 million unfavorable manufacturing costs; and
|
–
|
$4.6 million higher scrap costs and inventory reserves; partially offset by
|
–
|
$8.0 million of prior-year comparable period restructuring and footprint rationalization projects and related cost inefficiencies that did not reoccur; and
|
–
|
$3.6 million in lower outbound freight costs
|
–
|
$8.8 million decrease related to prior-year organizational restructuring efforts and business footprint rationalization that did nor reoccur;
|
–
|
$4.0 million of lower personnel and compensation costs; and
|
–
|
$1.4 million of lower sales and marketing costs
|
|
|
Nine months ended September 30,
|
|
Change
|
|||||||||||
|
|
2019
|
|
2018
|
|
$
|
|
%
|
|||||||
Net Sales
|
|
|
|
|
|
|
|
|
|||||||
Automotive OEM
|
|
$
|
137,900
|
|
|
$
|
134,930
|
|
|
$
|
2,970
|
|
|
2.2
|
%
|
Automotive OES
|
|
45,840
|
|
|
39,980
|
|
|
5,860
|
|
|
14.7
|
%
|
|||
Aftermarket
|
|
56,200
|
|
|
65,180
|
|
|
(8,980
|
)
|
|
(13.8
|
)%
|
|||
Industrial
|
|
2,340
|
|
|
—
|
|
|
2,340
|
|
|
N/A
|
|
|||
E-commerce
|
|
1,650
|
|
|
3,880
|
|
|
(2,230
|
)
|
|
(57.5
|
)%
|
|||
Other
|
|
3,570
|
|
|
12,460
|
|
|
(8,890
|
)
|
|
(71.3
|
)%
|
|||
Total
|
|
$
|
247,500
|
|
|
$
|
256,430
|
|
|
$
|
(8,930
|
)
|
|
(3.5
|
)%
|
–
|
$1.9 million unfavorable material input and freight costs, partially offset by
|
–
|
$5.8 million favorable currency exchange due to the change of the Euro in relation to the U.S. dollar
|
–
|
$4.1 million of additional costs incurred in the prior-year comparable period related to restructuring and footprint rationalization projects primarily related to the shift in production to our Brasov, Romania production facility; and
|
–
|
$1.9 million favorable currency exchange due to the change of the Euro in relation to the U.S. dollar;
|
–
|
$1.9 million reduction in functional support and personnel costs due to lower headcount;
|
–
|
$1.0 million reduction in selling and warehouse expense primarily attributable to personnel costs
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
|
Last twelve months ended
September 30, |
||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||||||||
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Horizon Global
|
|
$
|
145,510
|
|
|
$
|
(32,760
|
)
|
|
$
|
178,270
|
|
|
$
|
112,330
|
|
|
$
|
(157,200
|
)
|
|
$
|
269,530
|
|
|
$
|
65,620
|
|
|
$
|
(178,680
|
)
|
|
$
|
244,300
|
|
Net loss attributable to noncontrolling interest
|
|
(260
|
)
|
|
(240
|
)
|
|
(20
|
)
|
|
(840
|
)
|
|
(720
|
)
|
|
(120
|
)
|
|
(1,070
|
)
|
|
(420
|
)
|
|
(650
|
)
|
|||||||||
Net income (loss)
|
|
145,250
|
|
|
(33,000
|
)
|
|
178,250
|
|
|
111,490
|
|
|
(157,920
|
)
|
|
269,410
|
|
|
64,550
|
|
|
(179,100
|
)
|
|
243,650
|
|
|||||||||
Interest expense
|
|
24,120
|
|
|
7,590
|
|
|
16,530
|
|
|
50,270
|
|
|
19,580
|
|
|
30,690
|
|
|
58,140
|
|
|
25,240
|
|
|
32,900
|
|
|||||||||
Income tax benefit
|
|
(1,020
|
)
|
|
(1,420
|
)
|
|
400
|
|
|
(2,330
|
)
|
|
(15,770
|
)
|
|
13,440
|
|
|
1,930
|
|
|
(3,330
|
)
|
|
5,260
|
|
|||||||||
Depreciation and amortization
|
|
6,250
|
|
|
5,090
|
|
|
1,160
|
|
|
16,790
|
|
|
15,070
|
|
|
1,720
|
|
|
22,300
|
|
|
21,310
|
|
|
990
|
|
|||||||||
EBITDA
|
|
174,600
|
|
|
(21,740
|
)
|
|
196,340
|
|
|
176,220
|
|
|
(139,040
|
)
|
|
315,260
|
|
|
146,920
|
|
|
(135,880
|
)
|
|
282,800
|
|
|||||||||
Net loss attributable to noncontrolling interest
|
|
260
|
|
|
240
|
|
|
20
|
|
|
840
|
|
|
720
|
|
|
120
|
|
|
1,070
|
|
|
420
|
|
|
650
|
|
|||||||||
Income from discontinued operations, net of tax
|
|
(182,750
|
)
|
|
(4,110
|
)
|
|
(178,640
|
)
|
|
(189,520
|
)
|
|
(9,670
|
)
|
|
(179,850
|
)
|
|
(192,690
|
)
|
|
(14,210
|
)
|
|
(178,480
|
)
|
|||||||||
EBITDA from continuing operations
|
|
(7,890
|
)
|
|
(25,610
|
)
|
|
17,720
|
|
|
(12,460
|
)
|
|
(147,990
|
)
|
|
135,530
|
|
|
(44,700
|
)
|
|
(149,670
|
)
|
|
104,970
|
|
|||||||||
Adjustments pursuant to Term Loan Agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Losses on sale of receivables
|
|
320
|
|
|
640
|
|
|
(320
|
)
|
|
1,280
|
|
|
1,490
|
|
|
(210
|
)
|
|
1,510
|
|
|
1,730
|
|
|
(220
|
)
|
|||||||||
Non-cash equity grant expenses
|
|
850
|
|
|
230
|
|
|
620
|
|
|
1,820
|
|
|
1,440
|
|
|
380
|
|
|
1,970
|
|
|
2,030
|
|
|
(60
|
)
|
|||||||||
Other non-cash expenses or losses
|
|
1,180
|
|
|
27,470
|
|
|
(26,290
|
)
|
|
5,560
|
|
|
128,250
|
|
|
(122,690
|
)
|
|
9,300
|
|
|
128,420
|
|
|
(119,120
|
)
|
|||||||||
Term Loans related fees, costs and expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,920
|
|
|
—
|
|
|
2,920
|
|
|
2,920
|
|
|
—
|
|
|
2,920
|
|
|||||||||
Lender agent related professional fees, costs, and expenses
|
|
760
|
|
|
—
|
|
|
760
|
|
|
760
|
|
|
—
|
|
|
760
|
|
|
760
|
|
|
—
|
|
|
760
|
|
|||||||||
Non-recurring expenses or costs (a)
|
|
2,890
|
|
|
7,510
|
|
|
(4,620
|
)
|
|
8,480
|
|
|
41,560
|
|
|
(33,080
|
)
|
|
20,570
|
|
|
47,060
|
|
|
(26,490
|
)
|
|||||||||
Asset sale related fees, costs, and expenses (b)
|
|
(1,320
|
)
|
|
—
|
|
|
(1,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Non-cash losses on asset sales
|
|
(50
|
)
|
|
110
|
|
|
(160
|
)
|
|
(150
|
)
|
|
520
|
|
|
(670
|
)
|
|
180
|
|
|
1,330
|
|
|
(1,150
|
)
|
|||||||||
Other expense, net
|
|
210
|
|
|
(540
|
)
|
|
750
|
|
|
(20
|
)
|
|
(2,250
|
)
|
|
2,230
|
|
|
330
|
|
|
(2,190
|
)
|
|
2,520
|
|
|||||||||
Adjusted EBITDA
|
|
(3,050
|
)
|
|
9,810
|
|
|
(12,860
|
)
|
|
8,190
|
|
|
23,020
|
|
|
(14,830
|
)
|
|
(7,160
|
)
|
|
28,710
|
|
|
(35,870
|
)
|
|||||||||
Non-recurring expense limitation (a) (b)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
(31,560
|
)
|
|
31,560
|
|
|
(10,570
|
)
|
|
(37,060
|
)
|
|
26,490
|
|
|||||||||
Other expense, net
|
|
(210
|
)
|
|
540
|
|
|
(750
|
)
|
|
20
|
|
|
2,250
|
|
|
(2,230
|
)
|
|
(330
|
)
|
|
2,190
|
|
|
(2,520
|
)
|
|||||||||
Consolidated EBITDA
|
|
$
|
(3,260
|
)
|
|
$
|
10,350
|
|
|
$
|
(13,610
|
)
|
|
$
|
8,210
|
|
|
$
|
(6,290
|
)
|
|
$
|
14,500
|
|
|
$
|
(18,060
|
)
|
|
$
|
(6,160
|
)
|
|
$
|
(11,900
|
)
|
▪
|
An emerging growth company is exempt from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and financial statements, commonly known as an “auditor discussion and analysis.”
|
▪
|
An emerging growth company is not required to hold a nonbinding advisory stockholder vote on executive compensation or any golden parachute payments not previously approved by stockholders.
|
▪
|
An emerging growth company is not required to comply with the requirement of auditor attestation of management’s assessment of internal control over financial reporting, which is required for other public reporting companies by Section 404 of the Sarbanes-Oxley Act.
|
▪
|
An emerging growth company is eligible for reduced disclosure obligations regarding executive compensation in its periodic and annual reports, including without limitation exemption from the requirement to provide a compensation discussion and analysis describing compensation practices and procedures.
|
▪
|
A company that is an emerging growth company is eligible for reduced financial statement disclosure in registration statements, which must include two years of audited financial statements rather than the three years of audited financial statements that are required for other public reporting companies.
|
▪
|
enhanced the risk assessment process to take into account risks associated with the new lease standard; and
|
▪
|
added controls that address risks associated with the evaluation of all leases for balance sheet recognition, including the revision of the Company’s lease contract review controls.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (a)
|
|||
April 1 - 30, 2019
|
|
—
|
|
|
|
|
—
|
|
|
813,494
|
|
May 1 - 31, 2019
|
|
—
|
|
|
|
|
—
|
|
|
813,494
|
|
June 1 - 30, 2019
|
|
—
|
|
|
|
|
—
|
|
|
813,494
|
|
Total
|
|
—
|
|
|
|
|
—
|
|
|
|
2.1(c)
|
|
3.1(b)
|
|
3.2(a)
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
(a)
|
|
Incorporated by reference to the Exhibit filed with our Current Report on Form 8-K filed on February 20, 2019 (File No. 001-37427).
|
(b)
|
|
Incorporated by reference to the Exhibit filed with our Quarterly Report on Form 10-Q filed on August 8, 2019 (File No. 001-37427).
|
(c)
|
|
Incorporated by reference to the Exhibit filed with our Current Report on Form 8-K filed on September 25, 2019 (File No. 001-37427).
|
|
|
HORIZON GLOBAL CORPORATION (Registrant)
|
||
|
|
|
|
|
|
|
|
|
/s/ JAMIE G.PIERSON
|
|
|
|
|
|
Date:
|
November 12, 2019
|
By:
|
|
Jamie G. Pierson
Chief Financial Officer
|
1 Year Horizon Global Chart |
1 Month Horizon Global Chart |
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