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Exhibit 99.1
For Immediate Release
Contact: Steven Klueg
Senior Vice President and Chief Financial Officer
704-864-6711
AFFINIA REPORTS FINANCIAL RESULTS FOR THE
THIRD QUARTER 2015
| Reported Third Quarter Net Sales of $238 Million, with Currency Adjusted Sales of $262 Million |
GASTONIA, NORTH CAROLINA, November 11, 2015 Affinia Group Intermediate Holdings Inc. (Affinia), an innovative global leader in the design, manufacture, distribution and marketing of industrial grade products and services, today reported net sales of $238 million for the third quarter of 2015 compared to $248 million in the third quarter of 2014, a decrease of $10 million or 4.0%. On a currency adjusted basis, net sales for the third quarter of 2015 improved by 5.6% or $14 million over the same period in 2014. Adjusted EBITDA was $30 million in the third quarter of 2015 compared to $38 million in the same period in the prior year, a decrease of 21.1%.
In the third quarter of 2015, Affinia entered into an agreement and plan of merger with MANN + HUMMEL Holding GmbH (MANN + HUMMEL), a German limited liability company, pursuant to which Affinia Group Holdings Inc., Affinias parent, will merge with a subsidiary of MANN + HUMMEL. It is currently anticipated that this transaction will close in the first quarter of 2016 or earlier depending on timing of regulatory approvals and satisfaction of other closing conditions. Additionally, Affinia closed during the late third and early fourth quarters of 2015 on the sale of the businesses that comprised its Affinia South America (ASA) segment to multiple buyers. All of the results of the ASA segment are presented within discontinued operations.
Keith Wilson, President and Chief Executive Officer, commented, With the disposition of our ASA segment now complete, our focus will be solely on our Filtration business. Our global Filtration team has continued to show its commitment to serve our customers by delivering a high quality portfolio of products, superior service and enhanced logistics. Additionally, our employees around the world are very excited about Affinia becoming part of the MANN + HUMMEL family and embrace the opportunity to continue to provide significant value to our customers.
Free cash flow, which is operating cash flow less capital expenditures, was $13 million in the third quarter of 2015, compared to a cash outflow of $9 million in the third quarter of 2014. Trade working capital was $157 million at September 30, 2015, an increase of $22 million from December 31, 2014.
The proceeds from the sale of ASA reduced debt levels and further strengthened our balance sheet. Our focus remains on executing on our strategic initiatives and closing out the year strong, while positioning our businesses for a successful start to 2016. stated Steven Klueg, Senior Vice President and Chief Financial Officer.
Net Sales
Net sales, which are comprised solely of Filtration segment sales as a result of the classification of ASA as discontinued operations, were $238 million for the third quarter of 2015 compared with $248 million for the same period last year. The decrease in net sales compared to the prior year is attributable to unfavorable currency and anticipated lower volumes in our North America operations, partially offset by strong local currency sales in Europe and South America. On a currency adjusted basis, net sales for the third quarter of 2015 improved by 5.6% or $14 million over the same period in 2014.
Operating Profit
Operating profit for the third quarter of 2015 was $26 million, a $7 million decrease compared to the prior year. Operating profit in the Filtration segment was $41 million in the third quarter of 2015, a $5 million decrease versus the prior year, primarily due to unfavorable currency and anticipated lower volumes in North America.
Adjusted EBITDA
Adjusted EBITDA was $30 million in the third quarter of 2015, an $8 million decrease compared to the corresponding period in the prior year, with Adjusted EBITDA margins of 12.6% in the third quarter of 2015 compared to 15.3% in the third quarter of 2014. Adjusted EBITDA for the Filtration segment was $41 million in the third quarter of 2015, an $8 million decline versus the same period in the prior year, due to unfavorable currency and lower volumes in North America.
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Affinia Group Intermediate Holdings Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2015 10-K Annual Report includes:
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Affinia Group Intermediate Holdings Inc. provided additional information to their SEC Filing as exhibits
Ticker: AFN
CIK: 1328655
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-15-010558
Submitted to the SEC: Thu Nov 12 2015 3:31:36 PM EST
Accepted by the SEC: Thu Nov 12 2015
Period: Wednesday, September 30, 2015
Industry: Motor Vehicle Parts And Accessories