Tenneco today announced results for the first quarter ended March 31, 2021, including the following:
- First quarter 2021 total revenue climbed 23% year-over-year to $4.7 billion. Value-add revenue for the first quarter 2021 increased to $3.6 billion, 13% higher versus the first quarter of last year, excluding positive currency impact of $104 million.
- The Company reported first quarter 2021 net income of $65 million, or $0.79 per diluted share, versus a net loss of $839 million or $(10.34) per diluted share last year. Adjusted net income for the first quarter 2021 was $90 million, or $1.09 per diluted share.
- First quarter 2021 EBIT* was $204 million, compared with a loss of $845 million in first quarter 2020. EBIT as a percent of revenue increased to 4.3% versus -22.0% in the prior year.
- First quarter 2021 adjusted EBITDA** jumped 62% to $388 million, compared to $239 million in the first quarter of the prior year. Adjusted EBITDA as a percent of value-add revenue was 10.7%, a 310 basis point increase year-over-year.
- Seasonally better first quarter 2021 cash flow and higher earnings resulted in a 0.4x improvement in net leverage ratio compared to December 31, 2020.
- Quarter-end liquidity of $2.1 billion, including no balance drawn on the $1.5 billion revolving credit facility.
- During the quarter, the Company completed refinancing to extend debt maturities of $800 million from 2024 to 2029, enhancing the Company’s maturity profile and increasing financial flexibility.
“The Tenneco team continues to build on the positive momentum from the second half of last year and delivered strong Q1 results. Our disciplined performance focus, including our Accelerate program, resulted in margin expansion in all operating segments and better free cash flow performance,” said Brian Kesseler, Tenneco CEO. “We’re proud of the dedication of our team and their continuing progress on performance improvement.”
Tenneco is raising its full-year 2021 financial outlook***, and providing an outlook for the second quarter 2021:
|Full Year 2021 – Revised||Second Quarter 2021|
|Value-Add Revenue||$13.5-14B||Value-Add Revenue||$3.3-3.5B|
|Adjusted EBITDA**||$1.35-1.45B||Adjusted EBITDA**||$325-355M|
|Net Debt (1)||Less than $4.2B||Net Leverage Target||~3.0x|
(1) Total debt net of total cash balances.
* EBIT: Earnings before interest expense, income taxes and noncontrolling interests.
** Adjusted EBITDA: Adjusted earnings before interest expense, income taxes, noncontrolling interests, and depreciation and amortization.
*** At the midpoint, the Company estimates 2021 value-add adjusted EBITDA margin will increase 150 basis points year-over-year to 10.2%, a 20 basis point improvement from prior guidance.
“Based on our strong first quarter performance we are raising our full year 2021 guidance with improved revenue, margin and cash flow.” Kesseler added. “We remain laser-focused on creating shareholder value in the near-term through debt reduction, and long-term by driving sustained growth from prioritized investments in the Motorparts, Performance Solutions and CTOHI business lines.”
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