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TheStreet Open House

Viasystems Announces Third Quarter 2011 Earnings

Investor Conference Call

Viasystems will broadcast live via internet an investor conference call at 5:00 p.m. Eastern Time today, November 8, 2011. The live listen-only audio of the conference call will be available at http://investor.viasystems.com. The live conference call will be available by telephone for professional investors and analysts by dialing 877-640-9867 (toll-free) or 914-495-8546.

A telephonic replay of the conference call will be available for one week at 855-859-2056 or 404-537-3406. Replay listeners should enter the conference ID 22242191. The webcast replay will be available at http://investor.viasystems.com for an indefinite period.

Forward Looking Statements

Certain statements in this communication constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of Viasystems regarding future events and are subject to significant risks and uncertainty. Statements regarding our expected performance in the future are forward-looking statements. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Viasystems undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Actual results may differ materially from those expressed or implied. Such differences may result from a variety of factors, including but not limited to: legal or regulatory proceedings; any actions taken by the Company, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); or developments beyond the Company’s control, including but not limited to, changes in domestic or global economic conditions, competitive conditions and consumer preferences, adverse weather conditions or natural disasters, health concerns, international, political or military developments and technological developments. Additional factors that may cause results to differ materially from those described in the forward-looking statements are set forth under the heading “Item 1A. Risk Factors,” in the Annual Report on Form 10-K filed by Viasystems with the SEC on February 9, 2011 and in Viasystems’ other filings made from time to time with the SEC and available at the SEC’s website, www.sec.gov.

About Viasystems

Viasystems Group, Inc. is a technology leader and a worldwide provider of complex multi-layer, printed circuit boards (PCBs) and electro-mechanical solutions (E-M Solutions). Its PCBs serve as the “electronic backbone” of almost all electronic equipment, and its E-M Solutions products and services include integration of PCBs and other components into finished or semi-finished electronic equipment, for which it also provides custom and standard metal enclosures, cabinets, racks and sub-racks, backplanes, cable assemblies and busbars. Viasystems’ approximately 15,000 employees around the world serve approximately 800 customers in the automotive, telecommunications, industrial & instrumentation, computer and datacommunications, and military and aerospace end markets. For additional information about Viasystems, please visit the Company’s website at www.viasystems.com.

 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in thousands, except per share amounts)

(Unaudited)

 
 
  Three Months Ended
September 30, 2011   June 30, 2011   September 30, 2010
 
Net sales $ 278,818 $ 270,744 $ 259,325
Operating expenses:
Cost of goods sold, exclusive of items shown separately

 

219,233

219,574

198,117

Selling, general and administrative 21,216 19,268 20,536
Depreciation 16,508 16,332 14,426
Amortization 428 430 447
Restructuring and impairment       26
Operating income 21,433 15,140 25,773
Other expense:
Interest expense, net 7,235 7,225 7,323
Amortization of deferred financing costs 503 504 512
Other, net   439   532   1,033
Income before income taxes 13,256 6,879 16,905
Income taxes   5,871   3,311   5,985
Net income $ 7,385 $ 3,568 $ 10,920
 
Less:
Net income attributable to noncontrolling interest   524   385   709
Net income attributable to common stockholders $ 6,861 $ 3,183 $ 10,211
 
Basic earnings per share $ 0.34 $ 0.16 $ 0.51
Diluted earnings per share $ 0.34 $ 0.16 $ 0.51
Basic weighted average shares outstanding   19,980,792   19,980,153   19,979,015
Diluted weighted average shares outstanding   20,131,738   20,135,530   19,979,260
 

This information is intended to be reviewed in conjunction with the Company’s filings with the

Securities and Exchange Commission.

 
 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 
 
  September 30, 2011   December 31, 2010
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 68,540 $ 103,599
Accounts receivable, net 197,969 169,247
Inventories 110,814 94,877
Prepaid expenses and other   31,946   22,940
Total current assets 409,269 390,663
Property, plant and equipment, net 298,288 273,113
Goodwill and other noncurrent assets   113,650   116,797
Total assets $ 821,207 $ 780,573
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $ 10,051 $ 10,258
Accounts payable 194,818 162,322
Accrued and other liabilities   73,448   83,798
Total current liabilities 278,317 256,378
Long-term debt, less current maturities 216,365 215,139
Other non-current liabilities   48,462   51,951
Total liabilities   543,144   523,468
 
Total stockholders’ equity   278,063   257,105
Total liabilities and stockholders’ equity $ 821,207 $ 780,573
 

This information is intended to be reviewed in conjunctions with the Company’s filings with the

Securities and Exchange Commission.

 
 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(Unaudited)

 
 
  Nine Months Ended   Nine Months Ended
September 30, 2011 September 30, 2010
 
Net cash provided by operating activities $ 39,978   $ 33,336  
 
Cash flows from investing activities:
Capital expenditures (75,134 ) (36,873 )
Proceeds from disposals of property 516 9,769
Acquisition of Merix (35,326 )
Cash acquired in acquisition of Merix       13,667  
Net cash used in investing activities   (74,618 )   (48,763 )
 
Cash flows from financing activities:
Proceeds from exercise of stock options 18
Repayments of capital lease obligations (208 ) (139 )
Distribution to noncontrolling interest (229 ) (783 )
Borrowings under credit facilities, net of repayments (4,200 )
Repayment of 10.5% Senior Subordinated Notes (105,904 )
Change in restricted cash 105,734
Repayment of 2013 Notes (515 )
Financing and other fees       (2,294 )
Net cash used in financing activities   (419 )   (8,101 )
 
Net change in cash and cash equivalents (35,059 ) (23,528 )
 
Beginning cash   103,599     108,993  
Ending cash $ 68,540   $ 85,465  
 

This information is intended to be reviewed in conjunction with the Company’s filings with the

Securities and Exchange Commission.

 
 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

NET SALES AND BALANCE SHEET STATISTICS

(dollars in millions)

(Unaudited)

 
 
  Three Months Ended
September 30, 2011   June 30, 2011   September 30, 2010
Net sales by segment      
Printed Circuit Boards $ 224.4 80 % $ 215.1 79 % $ 208.9 81 %
Assembly   54.4 20 %   55.6 21 %   50.4 19 %
$ 278.8 100 % $ 270.7 100 % $ 259.3 100 %
 
   
Percentage of Net Sales Net Sales Increase
Three Months Ended Sequential:   Year/Year:
Sep. 30,   Jun. 30,   Sep. 30, 3Q11 vs 3Q11 vs
2011 2011 2010 2Q11 3Q10
Net sales by end market
Automotive 41 % 37 % 35 % 13 % 25 %
Telecommunications 17 % 19 % 24 % (7 %) (24 %)
Industrial & Instrumentation 24 % 27 % 24 % (6 %) 8 %
Computer and Datacommunications 14 % 13 % 13 % 11 % 22 %
Military and Aerospace 4 % 4 % 4 % (3 %) (1 %)
100 % 100 % 100 % 3 % 8 %
 
                               
3Q11 2Q11 1Q11 4Q10 3Q10
Working capital metrics
Days’ sales outstanding 63.9 64.0 65.3 62.5 60.6
Inventory turns 7.9 8.6 7.4 8.1 8.4
Days’ payables outstanding 80.0 77.4 84.3 76.3 74.6
Cash cycle (days) 29.4 28.4 29.6 30.8 28.8
 
 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

RECONCILIATION OF OPERATING INCOME

TO ADJUSTED EBITDA

(dollars in millions)

(Unaudited)

 
 
  Three Months Ended
September 30, 2011   June 30, 2011   September 30, 2010
 
Operating income $ 21.4 $ 15.1 $ 25.8
Add-back:
Depreciation and amortization 16.9 16.8 14.9
Non-cash stock compensation expense 1.9 2.3 1.2
Costs relating to acquisitions and equity registrations   0.1   0.1  
Adjusted EBITDA $ 40.3 $ 34.3 $ 41.9
 
 
 
 
 
 
 

VIASYSTEMS GROUP, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

RECONCILIATION OF DILUTED EARNINGS PER SHARE

TO ADJUSTED EARNINGS PER SHARE

(dollars in thousands, except per share amounts)

(Unaudited)

 
 
  Three Months Ended
September 30, 2011   June 30, 2011   September 30, 2010
 
Net income attributable to common stockholders (GAAP) $ 6,861 $ 3,183 $ 10,211
 
Adjustments:
Non-cash stock compensation expense 1,850 2,339 1,239
Amortization 931 934 959
Non-cash interest 399 399 399
Costs related to acquisitions and equity registrations 95 99 37
Restructuring and impairment 26
Special income tax items (11 ) (745 ) (13 )
Income tax effects of adjustments       2     1  
 

Adjusted net income attributable to common stockholders

$

10,125

 

$

6,211

 

$

12,859

 
 
Diluted weighted average shares outstanding (GAAP)   20,131,738     20,135,530     19,979,260  
 
Diluted earnings per share (GAAP) $ 0.34   $ 0.16   $ 0.51  
Adjusted EPS $ 0.50   $ 0.31   $ 0.64  
 
 
 




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