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Cooper Standard Reports Second Quarter Results and Announces Significant New Fortrex™ Technology Agreement

NOVI, Mich., Aug. 1, 2019 /PRNewswire/ -- Cooper-Standard Holdings Inc. (CPS) today reported results for the second quarter 2019.

Second Quarter 2019 Summary

  • Sales totaled $764.8 million
  • Net income of $145.3 million or $8.36 per diluted share
  • Adjusted EBITDA of $58.1 million or 7.6 percent of sales
  • Adjusted net income of $5.4 million or $0.31 per diluted share
  • Contract awards related to innovation products for annualized sales of $171 million
  • Significant new Fortrex technology agreement signed subsequent to quarter end

"Our results for the quarter were once again negatively impacted by continuing weak production volume and mix in China and Europe, as well as the slower than expected ramp up of an important new vehicle platform in North America," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "Looking ahead, we expect these challenging market dynamics to continue at least through the end of the year, and we have revised our full-year outlook accordingly.

"We are working to mitigate these headwinds as much as possible by accelerating planned restructuring and further streamlining the business under our global management structure," Edwards added.  "We expect these actions will help us to improve our overall efficiency in the near-term and better position the Company for long-term profitable growth.  We remain on track with our new program launches, cost reduction initiatives and the strategic diversification of our business."

Consolidated Results


Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018


(dollar amounts in millions except per share amounts)

Sales

$

764.8



$

928.3



$

1,644.8



$

1,895.7


Net income

$

145.3



$

41.9



$

141.8



$

98.7


Adjusted net income

$

5.4



$

50.3



$

17.2



$

114.1


Earnings per diluted share

$

8.36



$

2.28



$

8.11



$

5.36


Adjusted earnings per diluted share

$

0.31



$

2.74



$

0.99



$

6.19


Adjusted EBITDA

$

58.1



$

107.9



$

124.5



$

230.5


The year-over-year change in second quarter sales was primarily attributable to the sale of the Company's Anti-Vibration Systems (AVS) business, unfavorable volume and mix, and foreign exchange.

Net income for the second quarter 2019 included a $189.9 million gain on the sale of the AVS business, certain project costs related to acquisitions and divestitures, and restructuring charges related to headcount reduction actions.  Adjusted net income, which excludes these items and their related tax impact, declined in the second quarter 2019 compared to the prior year due largely to unfavorable volume and mix, general inflation, customer price adjustments and higher material costs, partially offset by operating efficiencies and other cost saving initiatives.

Adjusted net income, adjusted EBITDA and adjusted earnings per diluted share are non-GAAP measures.  Reconciliations to the most directly comparable financial measures, calculated and presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), are provided in the attached supplemental schedules.

Notable Developments

The Company continues at a record pace for new program launches and contract awards related to recent product innovations.  During the second quarter, the Company successfully launched 84 new customer programs, an increase of 75 percent compared to the second quarter of 2018. Also during the quarter, the Company received new contract awards related to product innovations, including both new and replacement business, totaling $171 million in annualized sales.  These awards included the first production order for FlushSeal™ glass sealing technology on an all-new electric vehicle platform. In the first six months of the year, contract awards related to product innovations totaled $252 million in annualized sales.  Net new business awards received during the second quarter and in the first six months of the year totaled $53 million and $129 million in annualized sales, respectively. Cooper Standard's expanding portfolio of commercialized innovation products includes: MagAlloy™; ArmorHose™; ArmorHose™ TPV; LightHose; Gen III Posi-Lock; TP Microdense; Microdense EPDM; FlushSeal glass sealing technology; and Fortrex.

Subsequent to the end of the second quarter, Cooper Standard signed a new Fortrex™ technology agreement with a multinational industrial products manufacturer based in Asia.  Under the agreement, the customer is expected to initially focus on developing three to four new product applications using Fortrex™ technology. The new agreement, which is the third the Company has signed this year, is further demonstration of the versatility of the Fortrex chemistry platform and the diverse market applications that it can address.

Segment Results of Operations

Sales


Three Months Ended June 30,



Variance Due To:


2019


2018


Change



Volume / Mix*


Foreign Exchange


Acquisitions/

Divestiture,

net


(dollar amounts in thousands)

Sales to external customers













North America

$

404,863



$

477,608



$

(72,745)




$

(39,189)



$

(1,629)



$

(31,927)


Europe

216,217



279,124



(62,907)




(28,740)



(13,686)



(20,481)


Asia Pacific

118,603



147,994



(29,391)




(36,146)



(8,061)



14,816


South America

25,123



23,536



1,587




3,817



(2,230)




Consolidated

$

764,806



$

928,262



$

(163,456)




$

(100,258)



$

(25,606)



$

(37,592)



* Net of customer price reductions

 

  • The impact of foreign currency exchange primarily relates to the Euro, Chinese Renminbi, Brazilian Real and the Canadian Dollar.

 

Adjusted EBITDA


Three Months Ended June 30,



Variance Due To:


2019


2018


Change



Volume /

Mix*


Foreign Exchange


Cost (Increases) / Decreases


Acquisitions/

Divestiture,
net


(dollar amounts in thousands)

Segment adjusted EBITDA















North America

$

54,867



$

82,672



$

(27,805)




$

(25,927)



$

(583)



$

2,286



$

(3,581)


Europe

6,082



16,292



(10,210)




(11,611)



(1,185)



2,498



88


Asia Pacific

(1,586)



11,304



(12,890)




(17,096)



(1,452)



5,821



(163)


South America

(1,284)



(2,361)



1,077




1,298



206



(427)




Consolidated adjusted EBITDA

$

58,079



$

107,907



$

(49,828)




$

(53,336)



$

(3,014)



$

10,178



$

(3,656)



* Net of customer price reductions

 

  • The impact of foreign currency exchange is primarily driven by the Chinese Renminbi, Euro, Canadian Dollar, Mexican Peso, Polish Zloty and Czech Koruna.
  • The Cost (Increases) / Decreases category above includes:

Liquidity and Cash Flow

At June 30, 2019, Cooper Standard had cash and cash equivalents totaling $310.8 million.  Net cash used in operating activities in the second quarter 2019 was $7.1 million and free cash flow for the quarter (defined as net cash used in/provided by operating activities minus capital expenditures) was an outflow of $43.0 million.

In addition to cash and cash equivalents, the Company had $158.8 million available under its amended senior asset-based revolving credit facility ("ABL"), inclusive of outstanding letters of credit, for total liquidity of $469.6 million at June 30, 2019.

Total debt at June 30, 2019 was $792.2 million. Net debt (defined as total debt minus cash and cash equivalents) was $481.4 million.  Cooper Standard's net leverage ratio (defined as net debt divided by trailing 12 months adjusted EBITDA) at June 30, 2019 was 1.8 times.

On April 1, 2019, the Company completed the sale of its AVS business.  The total sale price of the transaction was $265.5 million and the Company received $243.4 million in cash proceeds after adjusting for certain liabilities assumed by the purchaser. The estimated net cash proceeds after taxes and transaction-related expenses and fees are expected to be approximately $215 to $220 million.

In June 2018, the Company's board of directors approved a common stock repurchase program authorizing the Company to repurchase, in aggregate, up to $150.0 million of its outstanding common stock. In May 2019, the Company entered into an accelerated share repurchase ("ASR") agreement in the amount of $30.0 million. The ASR is expected to be completed no later than the third quarter of 2019.  As of June 30, 2019, approximately $98.7 million remained available under the 2018 board of directors repurchase authorization.

Outlook

Based on the results achieved in the first two quarters and the industry and economic outlook for the rest of the year, the Company has revised its guidance for the full year 2019 as summarized below:


Previous Guidance
(5/1/2019)

Current Guidance1

Sales

$3.2 - $3.4 billion

$3.0 - $3.2 billion

Adjusted EBITDA2

$300 - $340 million

$270 - $300 million

Capital Expenditures

$180 - $190 million

$175 - $185 million

Cash Restructuring

$15 - $25 million

$25 - $35 million

Effective Tax Rate

16% - 18%

21% - 25%



1

Guidance is representative of management's estimates and expectations as of the date it is published.  Current guidance as presented in this press release is reflective of June 2019 IHS production forecasts for relevant light vehicle platforms and models, customer production schedules and other internal assumptions.

2

Adjusted EBITDA is a non-GAAP financial measure. The Company has not provided a reconciliation of projected adjusted EBITDA to projected net income because full-year net income will include special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.  Due to this uncertainty, the Company cannot reconcile projected adjusted EBITDA to U.S. GAAP net income without unreasonable effort.

Conference Call Details

Cooper Standard management will host a conference call and webcast on August 2, 2019 at 9 a.m. ET to discuss its second quarter 2019 results, provide a general business update and respond to investor questions.  A link to the live webcast of the call (listen only) and presentation materials will be available on Cooper Standard's Investor Relations website at www.ir.cooperstandard.com/events.cfm.

To participate by phone, callers in the United States and Canada should dial toll-free (877) 374-4041.  International callers should dial (253) 237-1156.  Provide the conference ID 8455478 or ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions after the presentation. Callers should dial in at least five minutes prior to the start of the call.

Individuals unable to participate during the live call may visit the investors' portion of the Cooper Standard website (www.ir.cooperstandard.com) for a replay of the webcast.

About Cooper Standard

Cooper Standard, headquartered in Novi, Mich., is a leading global supplier of systems and components for the automotive industry. Products include sealing, fuel and brake delivery, and fluid transfer systems. Cooper Standard employs approximately 30,000 people globally and operates in 21 countries around the world. For more information, please visit www.cooperstandard.com.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby.  Our use of words "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "outlook," "guidance," "forecast," or future or conditional verbs, such as "will," "should," "could," "would," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruption in our supply base; competitive threats and commercial risks associated with us entering new markets; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal proceedings, claims or investigations against us; work stoppages or other labor disruptions; the ability of our intellectual property to withstand legal challenges; cyber-attacks, other disruptions in or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; changes in our assumptions as a result of IRS issuing guidance on the Tax Cuts and Jobs Act; the possibility of future impairment charges to our goodwill and long-lived assets; our dependence on our subsidiaries for cash to satisfy our obligations; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements.  Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

This press release also contains estimates and other information that is based on industry publications, surveys and forecasts.  This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.

CPS_F

Contact for Analysts:

Contact for Media:

Roger Hendriksen

Sharon Wenzl

Cooper Standard

Cooper Standard

(248) 596-6465

(248) 596-6211

roger.hendriksen@cooperstandard.com

sswenzl@cooperstandard.com

 

Financial statements and related notes follow:

 

COOPER-STANDARD HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollar amounts in thousands except per share and share amounts)










Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Sales

$

764,806



$

928,262



$

1,644,844



$

1,895,653


Cost of products sold

666,828



776,897



1,429,318



1,573,408


Gross profit

97,978



151,365



215,526



322,245


Selling, administration & engineering expenses

74,170



76,339



161,144



156,779


Gain on sale of business

(189,910)





(189,910)




Amortization of intangibles

5,148



3,399



8,923



6,805


Restructuring charges

5,927



10,013



23,642



17,138


Impairment charges

2,188





2,188




Operating profit

200,455



61,614



209,539



141,523


Interest expense, net of interest income

(11,575)



(9,973)



(23,507)



(19,773)


Equity in earnings of affiliates

1,891



1,248



4,249



2,935


Loss on refinancing and extinguishment of debt







(770)


Other expense, net

(1,781)



(557)



(2,577)



(2,276)


Income before income taxes

188,990



52,332



187,704



121,639


Income tax expense

44,239



9,130



46,570



21,021


Net income

144,751



43,202



141,134



100,618


Net loss (income) attributable to noncontrolling interests

545



(1,325)



702



(1,949)


Net income attributable to Cooper-Standard Holdings Inc.

$

145,296



$

41,877



$

141,836



$

98,669










Weighted average shares outstanding








Basic

17,312,359



18,000,579



17,423,162



17,996,058


Diluted

17,376,458



18,371,775



17,490,968



18,419,952










Earnings per share:








Basic

$

8.39



$

2.33



$

8.14



$

5.48


Diluted

$

8.36



$

2.28



$

8.11



$

5.36


 

 

COOPER-STANDARD HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands)



June 30, 2019


December 31, 2018


 (unaudited)



Assets




Current assets:




Cash and cash equivalents

$

310,779



$

264,980


Accounts receivable, net

458,504



418,607


Tooling receivable

177,191



141,106


Inventories

184,435



175,572


Prepaid expenses

32,154



36,878


Other current assets

80,072



108,683


Assets held for sale



103,898


Total current assets

1,243,135



1,249,724


Property, plant and equipment, net

993,933



984,241


Operating lease right-of-use assets, net

94,646




Goodwill

142,151



143,681


Intangible assets, net

90,627



99,602


Other assets

140,342



145,855


Total assets

$

2,704,834



$

2,623,103






Liabilities and Equity




Current liabilities:




Debt payable within one year

$

54,447



$

101,323


Accounts payable

415,301



452,320


Payroll liabilities

120,396



92,604


Accrued liabilities

92,843



98,907


Current operating lease liabilities

25,730




Liabilities held for sale



71,195


Total current liabilities

708,717



816,349


Long-term debt

737,757



729,805


Pension benefits

134,644



138,771


Postretirement benefits other than pensions

47,868



40,901


Long-term operating lease liabilities

70,102




Other liabilities

46,594



37,775


Total liabilities

1,745,682



1,763,601


7% Cumulative participating convertible preferred stock




Equity:




Common stock

17



17


Additional paid-in capital

483,792



501,511


Retained earnings

701,647



576,025


Accumulated other comprehensive loss

(249,211)



(246,088)


Total Cooper-Standard Holdings Inc. equity

936,245



831,465


Noncontrolling interests

22,907



28,037


Total equity

959,152



859,502


Total liabilities and equity

$

2,704,834



$

2,623,103


 

 

COOPER-STANDARD HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollar amounts in thousands)






Six Months Ended June 30,


2019


2018

Operating Activities:




Net income

$

141,134



$

100,618


Adjustments to reconcile net income to net cash (used in) provided by operating activities:




Depreciation

65,550



66,367


Amortization of intangibles

8,923



6,805


Gain on sale of business

(189,910)




Impairment charges

2,188




Share-based compensation expense

6,482



10,342


Equity in earnings of affiliates, net of dividends related to earnings

668



1,573


Loss on refinancing and extinguishment of debt



770


Deferred income taxes

19,117



1,420


Other

2,030



1,029


Changes in operating assets and liabilities

(65,148)



(90,613)


Net cash (used in) provided by operating activities

(8,966)



98,311


Investing activities:




Capital expenditures

(95,496)



(106,699)


Acquisition of businesses, net of cash acquired

(452)



(6,195)


Proceeds from sale of business

243,362




Proceeds from sale of fixed assets and other

2,099



(139)


Net cash provided by (used in) investing activities

149,513



(113,033)


Financing activities:




Principal payments on long-term debt

(2,067)



(2,062)


(Decrease) increase in short-term debt, net

(47,351)



224


Purchase of noncontrolling interests

(4,797)



(2,450)


Repurchase of common stock

(36,550)



(43,525)


Taxes withheld and paid on employees' share-based payment awards

(2,733)



(11,279)


Contribution from noncontrolling interest and other

2,277



(327)


Net cash used in financing activities

(91,221)



(59,419)


Effects of exchange rate changes on cash, cash equivalents and restricted cash

(2,882)



(865)


Changes in cash, cash equivalents and restricted cash

46,444



(75,006)


Cash, cash equivalents and restricted cash at beginning of period

267,399



518,461


Cash, cash equivalents and restricted cash at end of period

$

313,843



$

443,455






Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:




Balance as of


June 30, 2019


December 31, 2018

Cash and cash equivalents

$

310,779



$

264,980


Restricted cash included in other current assets

55



18


Restricted cash included in other assets

3,009



2,401


Total cash, cash equivalents and restricted cash shown in the statement of cash flows

$

313,843



$

267,399


 

Non-GAAP Measures

EBITDA, adjusted EBITDA, adjusted net income, adjusted earnings per share, net debt and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative of the Company's core financial activities. Management considers EBITDA, adjusted EBITDA, adjusted net income, adjusted earnings per share, net debt and free cash flow to be key indicators of the Company's operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are utilized in the calculation of the financial covenants and ratios contained in the Company's financing arrangements and management uses these measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income adjusted to reflect income tax expense, interest expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance.  Adjusted net income is defined as net income adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted basic and diluted earnings per share is defined as adjusted net income divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period.  Net debt is defined as total debt minus cash and cash equivalents.  Free cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

When analyzing the Company's operating performance, investors should use EBITDA, adjusted EBITDA, adjusted net income, adjusted earnings per share, net debt and free cash flow as supplements to, and not as alternatives for, net income, operating income, or any other performance measure derived in accordance with U.S. GAAP, and not as an alternative to cash flow from operating activities as a measure of the Company's liquidity. EBITDA, adjusted EBITDA, adjusted net income, adjusted earnings per share, net debt and free cash flow have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results of operations as reported under U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted net income, adjusted earnings per share, net debt and free cash flow differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted EBITDA and adjusted net income, it should be noted that in the future the Company may incur expenses similar to or in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income should not be construed as an inference that the Company's future results will be unaffected by special items.  Reconciliations of EBITDA, adjusted EBITDA, adjusted net income and free cash flow follow.

 

Reconciliation of Non-GAAP Measures


EBITDA and Adjusted EBITDA
(Unaudited)
(Dollar amounts in thousands)


The following table provides a reconciliation of EBITDA and adjusted EBITDA from net income:



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Net income attributable to Cooper-Standard Holdings Inc.

$

145,296



$

41,877



$

141,836



$

98,669


Income tax expense

44,239



9,130



46,570



21,021


Interest expense, net of interest income

11,575



9,973



23,507



19,773


Depreciation and amortization

37,868



36,914



74,473



73,173


EBITDA

$

238,978



$

97,894



$

286,386



$

212,636


Gain on sale of business (1)

(189,910)





(189,910)




Restructuring charges

5,927



10,013



23,642



17,138


Impairment charges (2)

2,188





2,188




Project costs (3)

405





1,668




Lease termination costs (4)

491





491




Loss on refinancing and extinguishment of debt (5)







770


Adjusted EBITDA

$

58,079



$

107,907



$

124,465



$

230,544










Sales

$

764,806



$

928,262



$

1,644,844



$

1,895,653


Net income margin

19.0

%


4.5

%


8.6

%


5.2

%

Adjusted EBITDA margin

7.6

%


11.6

%


7.6

%


12.2

%



(1)

Gain on sale of AVS product line. 

(2)

Non-cash impairment charges related to fixed assets.

(3)

Project costs recorded in selling, administration and engineering expense related to acquisitions and divestiture.

(4)

Lease termination costs no longer recorded as restructuring charges in accordance with ASC 842.

(5)

Loss on refinancing and extinguishment of debt related to the applicable amendment of the Term Loan Facility entered into during such period.

 

 

Adjusted Net Income and Adjusted Earnings Per Share
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)


The following table provides a reconciliation of net income to adjusted net income and the respective earnings per share amounts:



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Net income attributable to Cooper-Standard Holdings Inc.

$

145,296



$

41,877



$

141,836



$

98,669


Gain on sale of business (1)

(189,910)





(189,910)




Restructuring charges

5,927



10,013



23,642



17,138


Impairment charges (2)

2,188





2,188




Project costs (3)

405





1,668




Lease termination costs (4)

491





491




Loss on refinancing and extinguishment of debt (5)







770


Tax impact of adjusting items (6)

41,006



(1,595)



37,325



(2,496)


Adjusted net income

$

5,403



$

50,295



$

17,240



$

114,081










Weighted average shares outstanding:








Basic

17,312,359



18,000,579



17,423,162



17,996,058


Diluted

17,376,458



18,371,775



17,490,968



18,419,952










Earnings per share:








Basic

$

8.39



$

2.33



$

8.14



$

5.48


Diluted

$

8.36



$

2.28



$

8.11



$

5.36










Adjusted earnings per share:








Basic

$

0.31



$

2.79



$

0.99



$

6.34


Diluted

$

0.31



$

2.74



$

0.99



$

6.19




(1)

Gain on sale of AVS product line.

(2)

Non-cash impairment charges related to fixed assets.

(3)

Project costs recorded in selling, administration and engineering expense related to acquisitions and divestiture.

(4)

Lease termination costs no longer recorded as restructuring charges in accordance with ASC 842.

(5)

Loss on refinancing and extinguishment of debt related to the applicable amendment of the Term Loan Facility entered into during such period.

(6)

Represents the elimination of the income tax impact of the above adjustments by calculating the income tax impact of these adjusting items using the appropriate tax rate for the jurisdiction where the charges were incurred.

 

 

Free Cash Flow
(Unaudited)
(Dollar amounts in thousands)


The following table defines free cash flow:



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Net cash (used in) provided by operating activities

$

(7,118)



$

108,867



$

(8,966)



$

98,311


Capital expenditures

(35,863)



(38,841)



(95,496)



(106,699)


Free cash flow

$

(42,981)



$

70,026



$

(104,462)



$

(8,388)


 

Cision

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