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For the fiscal year ended:
December 31, 2018 |
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Commission file number:
001-34903 |
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Delaware
|
| |
27-3679414
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|
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(State of Incorporation)
|
| |
(IRS Employer Identification Number)
|
|
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17672 Laurel Park Drive North, Suite 400 E
Livonia, Michigan (Address of Principal Executive Offices) |
| |
48152
(Zip Code) |
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Title of each class
|
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
|
| |
New York Stock Exchange
|
|
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Large accelerated filer
☐
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Accelerated filer
☒
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Non-accelerated filer
☐
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Smaller reporting company
☐
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| | | |
Emerging growth company
☐
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10-K Pages
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PART I | | | | | | | |
| | | | 1 | | | |
| | | | 13 | | | |
| | | | 21 | | | |
| | | | 21 | | | |
| | | | 22 | | | |
| | | | 22 | | | |
PART II | | | | | | | |
| | | | 23 | | | |
| | | | 25 | | | |
| | | | 27 | | | |
| | | | 48 | | | |
| | | | 50 | | | |
| | | | 98 | | | |
| | | | 98 | | | |
| | | | 100 | | | |
PART III | | | | | | | |
| | | | 101 | | | |
| | | | 101 | | | |
| | | | 101 | | | |
| | | | 102 | | | |
| | | | 102 | | | |
PART IV | | | | | | | |
| | | | 103 | | | |
| | | | 111 | | | |
| | | | 112 | | |
Customer
|
| | |||||
Ford
|
| | | | 47% | | |
Fiat – Chrysler
|
| | | | 22% | | |
Nissan
|
| | | | 12% | | |
Toyota
|
| | | | 8% | | |
BMW
|
| | | | 5% | | |
Volkswagen Group
|
| | | | 2% | | |
Honda
|
| | | | 2% | | |
Other
|
| | | | 2% | | |
Total
|
| | | | 100% | | |
|
Vehicle Platform
|
| | |||||
SUV
|
| | | | 53% | | |
Pickup
|
| | | | 27% | | |
Van
|
| | | | 4% | | |
MPV
|
| | | | 2% | | |
Light trucks
|
| | | | 86% | | |
Large Car
|
| | | | 7% | | |
Small Car
|
| | | | 5% | | |
All Other
|
| | | | 2% | | |
Total
|
| | | | 100% | | |
|
Product Group
|
| | |||||
Body structures and assemblies
|
| | | | 47% | | |
Chassis and lower vehicle structures
|
| | | | 36% | | |
Complex body-in-white assemblies
|
| | | | 17% | | |
Total
|
| | | | 100% | | |
|
OEM
|
| |
Models
|
| |
Product Type
|
|
North America | | | | | | | |
Ford
|
| | Econoline | | | Frame Assembly | |
| | | Explorer | | | Complex Assembly | |
| | | Expedition/Navigator | | | Body Structures | |
| | | F-Series | | | Frame Assembly/Body Structures | |
| | | Taurus/MKS | | | Complex Assembly | |
| | | Escape | | | Body Structures & Complex Assembly | |
Chrysler
|
| | Caravan | | | Body Structures | |
| | | Grand Cherokee/Durango | | | Body Structures | |
| | | Wrangler | | | Frame Assembly | |
| | | Cherokee | | | Body Structures | |
| | | Ram Pickup | | | Body Structures | |
Nissan
|
| | Frontier | | | Body Structures & Frame Assembly | |
| | | NV Series | | | Frame Assembly | |
| | | Titan | | | Frame Assembly | |
| | | Altima | | | Body Structures | |
Toyota
|
| | Camry | | | Body Structures | |
| | | Corolla | | | Body Structures | |
| | | Tacoma | | | Body Structures | |
| | | Tundra | | | Body Structures | |
BMW
|
| | X3 | | | Body Structures & Complex Assembly | |
| | | X4 | | | Body Structures & Complex Assembly | |
| | | X5 | | | Body Structures & Complex Assembly | |
| | | X6 | | | Body Structures & Complex Assembly | |
Brazil | | | | | | | |
VW
|
| | Gol | | | Body Structures | |
| | | Saveiro | | | Body Structures | |
| | | Fox | | | Body Structures | |
| | | Up! | | | Body Structures | |
Honda
|
| | Fit | | | Body Structures | |
| | | Vezel | | | Body Structures | |
| | | Civic | | | Body Structures | |
| | | City | | | Body Structures | |
PSA
|
| | Picasso | | | Body Structures | |
Facility
|
| |
Country
|
| |
Description of Use
|
| |
Square Feet
|
| |
Ownership
|
|
U.S. Locations | | | | | | | | | | | | | |
Auburn, Indiana
|
| |
United States
|
| | Manufacturing | | | 162,800 | | | Leased | |
Bardstown, Kentucky (2 locations)
|
| |
United States
|
| | Manufacturing | | | 519,000 | | | Owned/Leased(1) | |
Bellevue, Ohio (2 locations)
|
| |
United States
|
| | Manufacturing | | | 377,450 | | | Leased | |
Bluffton, Ohio
|
| |
United States
|
| | Manufacturing | | | 196,200 | | | Leased | |
Chicago, Illinois
|
| |
United States
|
| | Manufacturing | | | 418,200 | | | Leased | |
Clinton Township, Michigan
|
| |
United States
|
| | Manufacturing | | | 392,300 | | | Leased | |
Elkton, Michigan
|
| |
United States
|
| | Manufacturing | | | 1,100,000 | | | Owned | |
Grand Rapids, Michigan
|
| |
United States
|
| | Office | | | 5,900 | | | Leased | |
Fountain Inn, South Carolina
|
| |
United States
|
| | Manufacturing | | | 274,385 | | | Leased | |
Livonia, Michigan
|
| |
United States
|
| | Corporate Office/Technical Center | | | 76,300 | | | Leased | |
Madison, Mississippi
|
| |
United States
|
| | Manufacturing | | | 270,000 | | | Leased | |
Meridian, Mississippi
|
| |
United States
|
| | Manufacturing | | | 420,000 | | | Leased | |
Plymouth, Michigan
|
| |
United States
|
| | Manufacturing | | | 315,133 | | | Leased | |
Shepherdsville, Kentucky
|
| |
United States
|
| | Manufacturing | | | 311,878 | | | Leased | |
Non-U.S. Locations | | | | | | | | | | | | | |
Mexico City (4 locations)
|
| | Mexico | | | Manufacturing | | | 192,663 | | | Leased | |
Shanghai
|
| | China | | | Corporate Office/Technical Center | | | 475 | | | Leased | |
Hyderabad
|
| | India | | | Technical Center | | | 8,700 | | | Leased | |
Yokohama
|
| | Japan | | | Technical Center | | | 2,500 | | | Leased | |
Aruja
|
| | Brazil | | | Manufacturing/Technical Center | | | 334,880 | | | Owned | |
| | |
2018
|
| |
2017
|
| ||||||||||||||||||
High and Low Closing Prices per Share
|
| |
High Price
|
| |
Low Price
|
| |
High Price
|
| |
Low Price
|
| ||||||||||||
Fourth Quarter
|
| | | $ | 31.31 | | | | | $ | 23.77 | | | | | $ | 33.05 | | | | | $ | 27.45 | | |
Third Quarter
|
| | | | 35.45 | | | | | | 30.25 | | | | | | 27.45 | | | | | | 21.55 | | |
Second Quarter
|
| | | | 34.30 | | | | | | 26.50 | | | | | | 27.90 | | | | | | 21.10 | | |
First Quarter
|
| | | | 32.45 | | | | | | 25.30 | | | | | | 28.75 | | | | | | 24.75 | | |
| | |
12/31/2013
|
| |
12/31/2014
|
| |
12/31/2015
|
| |
12/31/2016
|
| |
12/31/2017
|
| |
12/31/2018
|
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Tower International, Inc.
|
| | | $ | 100.00 | | | | | $ | 119.39 | | | | | $ | 133.99 | | | | | $ | 135.41 | | | | | $ | 142.76 | | | | | $ | 111.21 | | |
S&P 500
|
| | | | 100.00 | | | | | | 111.39 | | | | | | 120.39 | | | | | | 134.78 | | | | | | 144.65 | | | | | | 135.63 | | |
S&P 500 Supercomposite Auto Parts and Equipment Index
|
| | | | 100.00 | | | | | | 102.01 | | | | | | 100.09 | | | | | | 105.59 | | | | | | 126.23 | | | | | | 85.59 | | |
Declaration Date
|
| |
Cash Amount
|
| |
Record Date
|
| |
Payment Date
|
| |||
2018 | | | | | | | | | | | | | |
October 18, 2018
|
| | | $ | 0.13 | | | |
November 8, 2018
|
| |
December 7, 2018
|
|
July 17, 2018
|
| | | | 0.12 | | | |
August 9, 2018
|
| |
September 7, 2018
|
|
April 19, 2018
|
| | | | 0.12 | | | |
May 10, 2018
|
| |
June 8, 2018
|
|
January 26, 2018
|
| | | | 0.12 | | | |
February 9, 2018
|
| |
February 28, 2018
|
|
2017 | | | | | | | | | | | | | |
October 20, 2017
|
| | | $ | 0.12 | | | |
November 10, 2017
|
| |
December 8, 2017
|
|
July 21, 2017
|
| | | | 0.11 | | | |
August 10, 2017
|
| |
September 8, 2017
|
|
April 21, 2017
|
| | | | 0.11 | | | |
May 10, 2017
|
| |
June 9, 2017
|
|
January 27, 2017
|
| | | | 0.11 | | | |
February 10, 2017
|
| |
February 28, 2017
|
|
2016 | | | | | | | | | | | | | |
October 21, 2016
|
| | | $ | 0.11 | | | |
November 10, 2016
|
| |
December 9, 2016
|
|
July 22, 2016
|
| | | | 0.10 | | | |
August 10, 2016
|
| |
September 9, 2016
|
|
April 22, 2016
|
| | | | 0.10 | | | |
May 10, 2016
|
| |
June 10, 2016
|
|
January 29, 2016
|
| | | | 0.10 | | | |
February 10, 2016
|
| |
February 29, 2016
|
|
Period
|
| |
Total Number of
Shares (or Units) Purchased |
| |
Weighted
Average Price Paid per Share (or Unit) |
| |
Total Number of
Shares (or Units) Purchased as of Publicly Announced Plan or Program |
| |
Dollar Value of
Shares that May Yet Be Purchased Under Plan or Program(1) |
| ||||||||||||
October 1 to October 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | 81,056,732 | | |
November 1 to November 30, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | 81,056,732 | | |
December 1 to December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | 81,056,732 | | |
Total
|
| | | | — | | | | | $ | — | | | | | | — | | | | | | | | |
|
| | |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||
| | |
(in millions except share and per share data)
|
| |||||||||||||||||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 1,571.9 | | | | | $ | 1,382.5 | | | | | $ | 1,319.0 | | | | | $ | 1,230.8 | | | | | $ | 1,225.6 | | |
Cost of sales
|
| | | | 1,378.0 | | | | | | 1,193.3 | | | | | | 1,144.9 | | | | | | 1,083.4 | | | | | | 1,073.3 | | |
Gross profit
|
| | | | 193.9 | | | | | | 189.2 | | | | | | 174.1 | | | | | | 147.4 | | | | | | 152.3 | | |
Gross profit margin
|
| | | | 12.3% | | | | | | 13.7% | | | | | | 13.2% | | | | | | 12.0% | | | | | | 12.4% | | |
Selling, general, and administrative expenses
|
| | | $ | 89.5 | | | | | $ | 87.8 | | | | | $ | 102.1 | | | | | $ | 100.7 | | | | | $ | 98.8 | | |
Amortization expense
|
| | | | 0.4 | | | | | | 0.4 | | | | | | 0.4 | | | | | | 0.2 | | | | | | 0.4 | | |
Restructuring and asset impairment charges,
net(a) |
| | | | 3.4 | | | | | | 9.1 | | | | | | 20.9 | | | | | | 8.5 | | | | | | 10.3 | | |
Operating income
|
| | | | 100.6 | | | | | | 91.9 | | | | | | 50.7 | | | | | | 38.0 | | | | | | 42.8 | | |
Operating income margin
|
| | | | 6.4% | | | | | | 6.6% | | | | | | 3.8% | | | | | | 3.1% | | | | | | 3.5% | | |
Interest expense, net
|
| | | $ | 18.8 | | | | | $ | 9.7 | | | | | $ | 17.2 | | | | | $ | 19.9 | | | | | $ | 30.0 | | |
Net periodic benefit income/(expense)(b)
|
| | | | (2.4) | | | | | | 2.2 | | | | | | (6.3) | | | | | | (5.2) | | | | | | (2.8) | | |
Other expense
|
| | | | 1.0 | | | | | | 0.6 | | | | | | 4.8 | | | | | | — | | | | | | 0.1 | | |
Income before provision for income taxes
|
| | | | 78.4 | | | | | | 83.8 | | | | | | 22.5 | | | | | | 12.8 | | | | | | 9.8 | | |
Provision/(benefit) for income taxes(c)(d)(e)
|
| | | | 1.3 | | | | | | 44.1 | | | | | | 8.8 | | | | | | (131.8) | | | | | | (7.3) | | |
Income from continuing operations
|
| | | | 77.1 | | | | | | 39.7 | | | | | | 13.7 | | | | | | 144.6 | | | | | | 17.1 | | |
Income/(loss) from discontinued operations, net of
tax(f) |
| | | | (28.2) | | | | | | 8.0 | | | | | | 25.6 | | | | | | 51.2 | | | | | | 10.0 | | |
Net income
|
| | | | 48.9 | | | | | | 47.7 | | | | | | 39.3 | | | | | | 195.8 | | | | | | 27.1 | | |
Net income attributable to the noncontrolling
interests |
| | | | — | | | | | | 0.1 | | | | | | 0.7 | | | | | | 1.7 | | | | | | 5.6 | | |
Net income attributable to Tower International, Inc.
|
| | | $ | 48.9 | | | | | $ | 47.6 | | | | | $ | 38.6 | | | | | $ | 194.1 | | | | | $ | 21.5 | | |
Basic income/(loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income per share from continuing operations
|
| | | $ | 3.75 | | | | | $ | 1.93 | | | | | $ | 0.62 | | | | | $ | 6.77 | | | | | $ | 0.56 | | |
Income/(loss) per share from discontinued operations
|
| | | | (1.38) | | | | | | 0.39 | | | | | | 1.23 | | | | | | 2.43 | | | | | | 0.48 | | |
| | |
2018
|
| |
2017
|
| |
2016
|
| |
2015
|
| |
2014
|
| |||||||||||||||
| | |
(in millions except share and per share data)
|
| |||||||||||||||||||||||||||
Net income attributable to Tower International, Inc. per share
|
| | | | 2.37 | | | | | | 2.32 | | | | | | 1.85 | | | | | | 9.20 | | | | | | 1.04 | | |
Weighted average basic shares outstanding (in thousands)
|
| | | | 20,592 | | | | | | 20,499 | | | | | | 20,864 | | | | | | 21,093 | | | | | | 20,662 | | |
Diluted income/(loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income per share from continuing operations
|
| | | $ | 3.67 | | | | | $ | 1.90 | | | | | $ | 0.61 | | | | | $ | 6.67 | | | | | $ | 0.54 | | |
Income/(loss) per share from discontinued operations
|
| | | | (1.34) | | | | | | 0.39 | | | | | | 1.21 | | | | | | 2.39 | | | | | | 0.47 | | |
Net income attributable to Tower International, Inc. per share
|
| | | | 2.33 | | | | | | 2.29 | | | | | | 1.82 | | | | | | 9.06 | | | | | | 1.01 | | |
Weighted average diluted shares outstanding (in thousands)
|
| | | | 20,996 | | | | | | 20,829 | | | | | | 21,222 | | | | | | 21,408 | | | | | | 21,391 | | |
Balance Sheets Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 68.1 | | | | | $ | 96.3 | | | | | $ | 49.0 | | | | | $ | 93.2 | | | | | $ | 104.8 | | |
Total assets(g)
|
| | | | 1,170.4 | | | | | | 1,260.9 | | | | | | 1,162.5 | | | | | | 1,215.5 | | | | | | 1,165.2 | | |
Total debt(g)(h)
|
| | | | 298.6 | | | | | | 350.8 | | | | | | 359.8 | | | | | | 411.6 | | | | | | 441.9 | | |
Total stockholders’ equity
|
| | | | 300.9 | | | | | | 269.9 | | | | | | 213.9 | | | | | | 206.7 | | | | | | 99.8 | | |
| | |
North America
|
| |
Brazil
|
| ||||||
2018 production volumes
|
| | | | 17.0 | | | | | | 2.7 | | |
2017 production volumes
|
| | | | 17.1 | | | | | | 2.6 | | |
Increase/(decrease)
|
| | | | (0.1) | | | | | | 0.1 | | |
Percentage change
|
| | | | (0.6)% | | | | | | 4.0% | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Revenues
|
| | | $ | 1,571.9 | | | | | $ | 1,382.5 | | |
Cost of sales
|
| | | | 1,378.0 | | | | | | 1,193.3 | | |
Gross profit
|
| | | | 193.9 | | | | | | 189.2 | | |
Selling, general, and administrative expenses
|
| | | | 89.5 | | | | | | 87.8 | | |
Amortization expense
|
| | | | 0.4 | | | | | | 0.4 | | |
Restructuring and asset impairment charges
|
| | | | 3.4 | | | | | | 9.1 | | |
Operating income
|
| | | | 100.6 | | | | | | 91.9 | | |
Interest expense, net
|
| | | | 18.8 | | | | | | 9.7 | | |
Net periodic benefit income/(expense)
|
| | | | (2.4) | | | | | | 2.2 | | |
Other expense
|
| | | | 1.0 | | | | | | 0.6 | | |
Provision for income taxes
|
| | | | 1.3 | | | | | | 44.1 | | |
Income/(loss) from discontinued operations, net of tax
|
| | | | (28.2) | | | | | | 8.0 | | |
Noncontrolling interest, net of taxes
|
| | | | — | | | | | | 0.1 | | |
Net income attributable to Tower International, Inc.
|
| | | $ | 48.9 | | | | | $ | 47.6 | | |
|
| | |
Year Ended
December 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Net income attributable to Tower International, Inc.
|
| | | $ | 48.9 | | | | | $ | 47.6 | | |
Interest expense, net
|
| | | | 18.8 | | | | | | 9.7 | | |
Net periodic benefit (income)/expense
|
| | | | 2.4 | | | | | | (2.2) | | |
Other expenses
|
| | | | 1.0 | | | | | | 0.6 | | |
Provision for income taxes
|
| | | | 1.3 | | | | | | 44.1 | | |
(Income)/loss from discontinued operations, net of tax
|
| | | | 28.2 | | | | | | (8.0) | | |
Noncontrolling interest, net of taxes
|
| | | | — | | | | | | 0.1 | | |
Operating income
|
| | | | 100.6 | | | | | | 91.9 | | |
Restructuring and asset impairment charges, net
|
| | | | 3.4 | | | | | | 9.1 | | |
Depreciation and amortization
|
| | | | 54.8 | | | | | | 50.5 | | |
Acquisition costs and other
|
| | | | 0.2 | | | | | | 0.2 | | |
Long-term compensation expense(a)
|
| | | | 7.7 | | | | | | 5.6 | | |
Lease expenses(b)
|
| | | | 11.1 | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | 177.7 | | | | | $ | 157.3 | | |
|
| | |
Revenues
|
| |
Adjusted
EBITDA(c) |
| ||||||
2018 results
|
| | | $ | 1,571.9 | | | | | $ | 177.7 | | |
2017 results
|
| | | | 1,382.5 | | | | | | 157.3 | | |
Variance
|
| | | $ | 189.4 | | | | | $ | 20.4 | | |
Variance attributable to: | | | | ||||||||||
Volume and mix
|
| | | $ | 184.7 | | | | | $ | 28.6 | | |
Foreign exchange
|
| | | | (6.8) | | | | | | (0.6) | | |
Pricing and economics
|
| | | | 11.5 | | | | | | (14.4) | | |
Efficiencies
|
| | | | — | | | | | | 9.2 | | |
Selling, general, and administrative expenses and other items(d)
|
| | | | — | | | | | | (2.4) | | |
Total
|
| | | $ | 189.4 | | | | | $ | 20.4 | | |
|
| | |
North
America |
| |
Brazil
|
| ||||||
2017 production volumes
|
| | | | 17.1 | | | | | | 2.6 | | |
2016 production volumes
|
| | | | 17.8 | | | | | | 2.1 | | |
Increase/(decrease)
|
| | | | (0.8) | | | | | | 0.5 | | |
Percentage change
|
| | | | (4.3)% | | | | | | 26.1% | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenues
|
| | | $ | 1,382.5 | | | | | $ | 1,319.0 | | |
Cost of sales
|
| | | | 1,193.3 | | | | | | 1,144.9 | | |
Gross profit
|
| | | | 189.2 | | | | | | 174.1 | | |
Selling, general, and administrative expenses
|
| | | | 87.8 | | | | | | 102.1 | | |
Amortization
|
| | | | 0.4 | | | | | | 0.4 | | |
Restructuring and asset impairments
|
| | | | 9.1 | | | | | | 20.9 | | |
Operating income
|
| | | | 91.9 | | | | | | 50.7 | | |
Interest expense, net
|
| | | | 9.7 | | | | | | 17.2 | | |
Net periodic benefit income/(expense)
|
| | | | 2.2 | | | | | | (6.3) | | |
Other expense
|
| | | | 0.6 | | | | | | 4.8 | | |
Provision for income taxes
|
| | | | 44.1 | | | | | | 8.8 | | |
Income from discontinued operations, net of tax
|
| | | | 8.0 | | | | | | 25.6 | | |
Noncontrolling interest, net of taxes
|
| | | | 0.1 | | | | | | 0.7 | | |
Net income attributable to Tower International, Inc.
|
| | | $ | 47.6 | | | | | $ | 38.6 | | |
|
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Net income attributable to Tower International, Inc.
|
| | | $ | 47.6 | | | | | | 38.6 | | |
Interest expense, net
|
| | | | 9.7 | | | | | | 17.2 | | |
Net periodic benefit (income)/expense
|
| | | | (2.2) | | | | | | 6.3 | | |
Other expenses(a)
|
| | | | 0.6 | | | | | | 4.8 | | |
Provision for income taxes
|
| | | | 44.1 | | | | | | 8.8 | | |
Income from discontinued operations, net of tax
|
| | | | (8.0) | | | | | | (25.6) | | |
Noncontrolling interest, net of taxes
|
| | | | 0.1 | | | | | | 0.7 | | |
Operating income
|
| | | | 91.9 | | | | | | 50.7 | | |
Restructuring and asset impairments(b)
|
| | | | 9.1 | | | | | | 20.9 | | |
Depreciation and amortization
|
| | | | 50.5 | | | | | | 47.9 | | |
Acquisition costs and other
|
| | | | 0.2 | | | | | | 0.1 | | |
Long-term compensation expense(c)
|
| | | | 5.6 | | | | | | 13.6 | | |
Adjusted EBITDA
|
| | | $ | 157.3 | | | | | $ | 133.2 | | |
|
| | |
Revenues
|
| |
Adjusted
EBITDA(d) |
| ||||||
2017 results
|
| | | $ | 1,382.5 | | | | | $ | 157.3 | | |
2016 results
|
| | | | 1,319.0 | | | | | | 133.2 | | |
Variance
|
| | | $ | 63.5 | | | | | $ | 24.1 | | |
Variance attributable to: | | | | | | | | | | | | | |
Volume and mix
|
| | | $ | 60.1 | | | | | $ | 16.0 | | |
Foreign exchange
|
| | | | 4.3 | | | | | | 0.2 | | |
Pricing and economics
|
| | | | (0.9) | | | | | | (9.2) | | |
Efficiencies
|
| | | | — | | | | | | 20.4 | | |
Selling, general, and administrative expenses and other items(e)
|
| | | | — | | | | | | (3.3) | | |
Total
|
| | | $ | 63.5 | | | | | $ | 24.1 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Employee termination costs
|
| | | $ | 3.1 | | | | | $ | 7.9 | | | | | $ | 1.3 | | |
Other exit costs
|
| | | | 0.3 | | | | | | 1.2 | | | | | | 4.6 | | |
Asset impairment charges
|
| | | | — | | | | | | — | | | | | | 15.0 | | |
Total restructuring and asset impairment charges, net
|
| | | $ | 3.4 | | | | | $ | 9.1 | | | | | $ | 20.9 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Net cash provided by/(used in): | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 98.2 | | | | | $ | 127.0 | | | | | $ | 97.2 | | |
Investing activities
|
| | | | (63.9) | | | | | | (51.3) | | | | | | (67.6) | | |
Financing activities
|
| | | | (60.5) | | | | | | (28.4) | | | | | | (75.3) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Net cash provided by continuing operating activities
|
| | | $ | 98.2 | | | | | $ | 127.0 | | | | | $ | 97.2 | | |
Cash disbursed for purchases of property, plant, and equipment, net
|
| | | | (83.1) | | | | | | (67.2) | | | | | | (72.2) | | |
Free cash flow
|
| | | $ | 15.1 | | | | | $ | 59.8 | | | | | $ | 25.0 | | |
|
| | | |||||
Total Revolving Credit Commitment
|
| | | $ | 200.0 | | |
Letter of credit outstanding
|
| | | | (8.2) | | |
Availability on Fourth Amended Revolving Credit Facility Agreement
|
| | | $ | 191.8 | | |
|
| | |
As of December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Total debt, including capital leases and net of debt issue costs
|
| | | $ | 298.6 | | | | | $ | 350.8 | | | | | $ | 359.8 | | |
Less: Cash and cash equivalents
|
| | | | (68.1) | | | | | | (96.3) | | | | | | (49.0) | | |
Net debt
|
| | | $ | 230.5 | | | | | $ | 254.4 | | | | | $ | 310.8 | | |
|
Contractual Obligations
|
| |
Total
|
| |
Less than
1 Year |
| |
2 – 3 Years
|
| |
4 – 5 Years
|
| |
After
5 Years |
| |||||||||||||||
Long-term debt (including current portion): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term Loan Credit Facility
|
| | | $ | 303.5 | | | | | $ | 3.6 | | | | | $ | 7.2 | | | | | $ | 7.2 | | | | | $ | 285.5 | | |
Other subsidiary indebtedness
|
| | | | 1.0 | | | | | | 0.5 | | | | | | 0.5 | | | | | | — | | | | | | — | | |
Cash interest payments
|
| | | | 81.5 | | | | | | 16.0 | | | | | | 31.3 | | | | | | 30.5 | | | | | | 3.7 | | |
Pension contributions(a)
|
| | | | 31.6 | | | | | | 5.9 | | | | | | 13.4 | | | | | | 10.9 | | | | | | 1.4 | | |
Expected tax payments(b)
|
| | | | 4.5 | | | | | | — | | | | | | 0.1 | | | | | | — | | | | | | 4.4 | | |
Capital and tooling purchase obligations(c)
|
| | | | 112.9 | | | | | | 112.9 | | | | | | — | | | | | | — | | | | | | — | | |
Operating leases
|
| | | | 340.2 | | | | | | 42.3 | | | | | | 97.0 | | | | | | 89.0 | | | | | | 111.9 | | |
Total contractual obligations at December 31, 2018
|
| | | $ | 875.2 | | | | | $ | 181.2 | | | | | $ | 149.5 | | | | | $ | 137.6 | | | | | $ | 406.9 | | |
|
| | |
Impact on Net
Periodic Benefit Cost |
| |||||||||
| | |
Increase
|
| |
Decrease
|
| ||||||
.25% change in discount rate
|
| | | $ | 0.4 | | | | | $ | 0.4 | | |
.25% change in expected long-term rate of return
|
| | | | (0.5) | | | | | | 0.5 | | |
| | |
Impact on Projected Pension
Benefit Obligation |
| |||||||||
| | |
Increase
|
| |
Decrease
|
| ||||||
.25% change in discount rate
|
| | | $ | (5.2) | | | | | $ | 5.4 | | |
| | |
Form 10-K
Page |
| |||
Audited Financial Statements for the Three Years Ended December 31, 2018: | | | | | | | |
| | | | 51 | | | |
| | | | 52 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 55 | | | |
| | | | 56 | | | |
| | | | 57 | | | |
Supplementary Data | | | | | | | |
| | | | 97 | | |
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 68,066 | | | | | $ | 96,313 | | |
Accounts receivable, net of allowance of $823 and $556
|
| | | | 113,128 | | | | | | 123,958 | | |
Inventories (Note 3)
|
| | | | 69,434 | | | | | | 57,495 | | |
Assets held for sale (Note 5)
|
| | | | 431,613 | | | | | | 517,783 | | |
Prepaid tooling, notes receivable, and other
|
| | | | 27,552 | | | | | | 43,986 | | |
Total current assets
|
| | | | 709,793 | | | | | | 839,535 | | |
Property, plant, and equipment, net
|
| | | | 347,803 | | | | | | 323,199 | | |
Goodwill (Note 3)
|
| | | | 7,453 | | | | | | 7,424 | | |
Deferred tax asset
|
| | | | 82,832 | | | | | | 82,077 | | |
Other assets, net
|
| | | | 22,511 | | | | | | 8,638 | | |
Total assets
|
| | | $ | 1,170,392 | | | | | $ | 1,260,873 | | |
LIABILITIES AND EQUITY
|
| | | | | | | | | | | | |
Short-term debt (Note 6)
|
| | | $ | 4,148 | | | | | $ | 4,744 | | |
Accounts payable
|
| | | | 188,760 | | | | | | 213,333 | | |
Accrued liabilities
|
| | | | 84,306 | | | | | | 74,040 | | |
Liabilities held for sale (Note 5)
|
| | | | 167,882 | | | | | | 210,905 | | |
Total current liabilities
|
| | | | 445,096 | | | | | | 503,022 | | |
Long-term debt, net of current maturities (Note 6)
|
| | | | 294,457 | | | | | | 346,011 | | |
Pension liability (Note 9)
|
| | | | 45,762 | | | | | | 47,813 | | |
Other non-current liabilities
|
| | | | 84,163 | | | | | | 94,155 | | |
Total non-current liabilities
|
| | | | 424,382 | | | | | | 487,979 | | |
Total liabilities
|
| | | | 869,478 | | | | | | 991,001 | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value, 50,000,000 authorized and 0 issued and outstanding
|
| | | | — | | | | | | — | | |
Common stock, $0.01 par value, 350,000,000 authorized, 22,400,074 issued and 20,606,736 outstanding at December 31, 2018, and 22,317,671 issued and 20,542,397 outstanding at December 31, 2017
|
| | | | 224 | | | | | | 223 | | |
Additional paid in capital
|
| | | | 347,816 | | | | | | 344,153 | | |
Treasury stock, at cost, 1,793,338 and 1,775,274 shares as of December 31, 2018 and December 31, 2017
|
| | | | (36,882) | | | | | | (36,408) | | |
Retained earnings
|
| | | | 64,676 | | | | | | 29,712 | | |
Accumulated other comprehensive loss (Note 3)
|
| | | | (74,920) | | | | | | (67,808) | | |
Total stockholders’ equity
|
| | | | 300,914 | | | | | | 269,872 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 1,170,392 | | | | | $ | 1,260,873 | | |
|
| | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
Year Ended
December 31, 2016 |
| |||||||||
Revenues (Note 3)
|
| | | $ | 1,571,853 | | | | | $ | 1,382,474 | | | | | $ | 1,319,046 | | |
Cost of sales
|
| | | | 1,377,955 | | | | | | 1,193,311 | | | | | | 1,144,914 | | |
Gross profit
|
| | | | 193,898 | | | | | | 189,163 | | | | | | 174,132 | | |
Selling, general, and administrative expenses
|
| | | | 89,527 | | | | | | 87,756 | | | | | | 102,058 | | |
Amortization expense (Note 3)
|
| | | | 435 | | | | | | 443 | | | | | | 449 | | |
Restructuring and asset impairment charges, net (Note 4)
|
| | | | 3,380 | | | | | | 9,098 | | | | | | 20,913 | | |
Operating income
|
| | | | 100,556 | | | | | | 91,866 | | | | | | 50,712 | | |
Interest expense
|
| | | | 19,856 | | | | | | 10,882 | | | | | | 18,259 | | |
Interest income
|
| | | | 1,058 | | | | | | 1,138 | | | | | | 1,097 | | |
Net periodic benefit income/(expense)
|
| | | | (2,403) | | | | | | 2,245 | | | | | | (6,324) | | |
Other expense
|
| | | | 977 | | | | | | 575 | | | | | | 4,754 | | |
Income before provision for income taxes and income/(loss) from discontinued operations
|
| | | | 78,378 | | | | | | 83,792 | | | | | | 22,472 | | |
Provision for income taxes (Note 8)
|
| | | | 1,259 | | | | | | 44,089 | | | | | | 8,768 | | |
Income from continuing operations
|
| | | | 77,119 | | | | | | 39,703 | | | | | | 13,704 | | |
Income/(loss) from discontinued operations, net of tax
(Note 5) |
| | | | (28,219) | | | | | | 8,032 | | | | | | 25,576 | | |
Net income
|
| | | | 48,900 | | | | | | 47,735 | | | | | | 39,280 | | |
Less: Net income attributable to noncontrolling interests
|
| | | | — | | | | | | 110 | | | | | | 701 | | |
Net income attributable to Tower International, Inc.
|
| | | $ | 48,900 | | | | | $ | 47,625 | | | | | $ | 38,579 | | |
Weighted average basic shares outstanding
|
| | | | 20,591,674 | | | | | | 20,498,668 | | | | | | 20,864,321 | | |
Weighted average diluted shares outstanding
|
| | | | 20,996,068 | | | | | | 20,828,888 | | | | | | 21,222,183 | | |
Basic income per share attributable to Tower International, Inc.
(Note 10): |
| | | | | | | | | | | | | | | | | | |
Income per share from continuing operations
|
| | | $ | 3.75 | | | | | $ | 1.93 | | | | | $ | 0.62 | | |
Income/(loss) per share from discontinued operations
|
| | | | (1.38) | | | | | | 0.39 | | | | | | 1.23 | | |
Income per share
|
| | | | 2.37 | | | | | | 2.32 | | | | | | 1.85 | | |
Diluted income per share attributable to Tower International, Inc. (Note 10):
|
| | | | | | | | | | | | | | | | | | |
Income per share from continuing operations
|
| | | $ | 3.67 | | | | | $ | 1.90 | | | | | $ | 0.61 | | |
Income/(loss) per share from discontinued operations
|
| | | | (1.34) | | | | | | 0.39 | | | | | | 1.21 | | |
Income per share
|
| | | | 2.33 | | | | | | 2.29 | | | | | | 1.82 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Net income
|
| | | $ | 48,900 | | | | | $ | 47,735 | | | | | $ | 39,280 | | |
Other comprehensive income/(loss), net of tax | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of tax expense/(benefit) of
$1.8 million, ($10 million), and $2.5 million |
| | | | (14,784) | | | | | | 19,602 | | | | | | (4,401) | | |
Change in defined benefit plans net of tax expense/(benefit) of ($0.1) million, $0.8 million, and $0.7 million
|
| | | | 64 | | | | | | 723 | | | | | | 1,030 | | |
Unrealized gain/(loss) on qualifying cash flow hedge, net of tax
expense/(benefit) of $1.3 million, ($2.8 million), and $0 million |
| | | | 3,760 | | | | | | (4,698) | | | | | | — | | |
Other comprehensive income/(loss), net of tax
|
| | | | (10,960) | | | | | | 15,627 | | | | | | (3,371) | | |
Comprehensive income
|
| | | | 37,940 | | | | | | 63,362 | | | | | | 35,909 | | |
Less: Comprehensive income attributable to noncontrolling interests
|
| | | | — | | | | | | 162 | | | | | | 221 | | |
Comprehensive income attributable to Tower International, Inc.
|
| | | $ | 37,940 | | | | | $ | 63,200 | | | | | $ | 35,688 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
OPERATING ACTIVITIES: | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 48,900 | | | | | $ | 47,735 | | | | | $ | 39,280 | | |
Less: Income/(loss) from discontinued operations, net of tax
|
| | | | (28,219) | | | | | | 8,032 | | | | | | 25,576 | | |
Income from continuing operations
|
| | | | 77,119 | | | | | | 39,703 | | | | | | 13,704 | | |
Adjustments required to reconcile income from continuing operations to net cash
provided by continuing operating activities: |
| | | | | | | | | | | | | | | | | | |
Non-cash restructuring and asset impairment charges, net
|
| | | | — | | | | | | — | | | | | | 15,000 | | |
Deferred income tax provision
|
| | | | (3,334) | | | | | | 41,702 | | | | | | 6,547 | | |
Depreciation and amortization
|
| | | | 54,815 | | | | | | 50,471 | | | | | | 47,861 | | |
Non-cash share-based compensation
|
| | | | 3,413 | | | | | | 2,219 | | | | | | 2,455 | | |
Pension income, net of contributions
|
| | | | (4,270) | | | | | | (11,512) | | | | | | (1,999) | | |
Change in working capital and other operating items
|
| | | | (29,496) | | | | | | 4,408 | | | | | | 13,608 | | |
Net cash provided by continuing operating activities
|
| | | $ | 98,247 | | | | | $ | 126,991 | | | | | $ | 97,176 | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | |
Cash disbursed for purchases of property, plant, and equipment, net
|
| | | $ | (83,141) | | | | | $ | (67,240) | | | | | $ | (72,194) | | |
Proceeds from disposition of China joint ventures, net
|
| | | | 4,314 | | | | | | 15,944 | | | | | | 4,546 | | |
Net proceeds from sale of property, plant, and equipment
|
| | | | 14,883 | | | | | | — | | | | | | — | | |
Net cash used in continuing investing activities
|
| | | $ | (63,944) | | | | | $ | (51,296) | | | | | $ | (67,648) | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | |
Proceeds from borrowings
|
| | | $ | 104,303 | | | | | $ | 485,368 | | | | | $ | 494,442 | | |
Repayments of borrowings
|
| | | | (104,508) | | | | | | (498,553) | | | | | | (491,849) | | |
Voluntary repayments on Term Loan Credit Facility
|
| | | | (50,000) | | | | | | — | | | | | | (50,000) | | |
Debt financing costs
|
| | | | — | | | | | | (4,747) | | | | | | — | | |
Original issuance discount
|
| | | | — | | | | | | (1,808) | | | | | | — | | |
Dividend payment to Tower shareholders
|
| | | | (10,088) | | | | | | (9,221) | | | | | | (8,570) | | |
Proceeds from stock options exercised
|
| | | | 251 | | | | | | 1,313 | | | | | | 305 | | |
Purchase of treasury stock
|
| | | | (474) | | | | | | (763) | | | | | | (19,578) | | |
Net cash used in continuing financing activities
|
| | | $ | (60,516) | | | | | $ | (28,411) | | | | | $ | (75,250) | | |
Discontinued operations: | | | | | | | | | | | | | | | | | | | |
Net cash from discontinued operating activities
|
| | | $ | 74,455 | | | | | $ | 26,645 | | | | | $ | 61,117 | | |
Net cash used in discontinued investing activities
|
| | | | (47,587) | | | | | | (39,504) | | | | | | (47,678) | | |
Net cash from/(used in) discontinued financing activities
|
| | | | (26,456) | | | | | | 8,649 | | | | | | (11,347) | | |
Net cash from/(used in) discontinued operations
|
| | | $ | 412 | | | | | $ | (4,210) | | | | | $ | 2,092 | | |
Effect of exchange rate changes on continuing cash and cash equivalents
|
| | | $ | (2,446) | | | | | $ | 4,256 | | | | | $ | (623) | | |
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | $ | (28,247) | | | | | $ | 47,330 | | | | | $ | (44,253) | | |
CASH AND CASH EQUIVALENTS: | | | | | | | | | | | | | | | | | | | |
Beginning of period
|
| | | $ | 96,313 | | | | | $ | 48,983 | | | | | $ | 93,236 | | |
End of period
|
| | | $ | 68,066 | | | | | $ | 96,313 | | | | | $ | 48,983 | | |
Supplemental Cash Flow Information: | | | | | | | | | | | | | | | | | | | |
Interest paid, net of amounts capitalized
|
| | | $ | 20,949 | | | | | $ | 20,553 | | | | | $ | 17,217 | | |
Income taxes paid
|
| | | | 5,665 | | | | | | 2,580 | | | | | | 2,255 | | |
Non-cash Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital expenditures in liabilities for purchases of property, plant, and equipment
|
| | | $ | 19,399 | | | | | $ | 9,746 | | | | | $ | 6,372 | | |
| | |
Common Stock
Units/Shares |
| |
Amount
|
| |
Additional
Paid-in Capital |
| |
Treasury
Stock |
| |
Retained
Earnings/ (Deficit) |
| |
Accumulated
Other Comprehensive Loss |
| |
Total
Stockholders’ Equity Attributable to Tower International, Inc. |
| |
Noncontrolling
Interest Amount |
| |
Total
Equity |
| |||||||||||||||||||||||||||
Balance at December 31, 2015
|
| | | | 21,111,610 | | | | | $ | 220 | | | | | $ | 337,864 | | | | | $ | (16,067) | | | | | $ | (44,030) | | | | | $ | (80,492) | | | | | $ | 197,495 | | | | | $ | 9,224 | | | | | $ | 206,719 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,579 | | | | | | — | | | | | | 38,579 | | | | | | 701 | | | | | | 39,280 | | |
Other comprehensive
income/(loss) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,891) | | | | | | (2,891) | | | | | | (480) | | | | | | (3,371) | | |
Total comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 35,688 | | | | | | 221 | | | | | | 35,909 | | |
Vesting of RSUs
|
| | | | 77,912 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock options exercised
|
| | | | 25,670 | | | | | | — | | | | | | 305 | | | | | | — | | | | | | — | | | | | | — | | | | | | 305 | | | | | | — | | | | | | 305 | | |
Treasury stock
|
| | | | (856,061) | | | | | | — | | | | | | — | | | | | | (19,578) | | | | | | — | | | | | | — | | | | | | (19,578) | | | | | | — | | | | | | (19,578) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 2,455 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,455 | | | | | | — | | | | | | 2,455 | | |
Dividend paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,570) | | | | | | — | | | | | | (8,570) | | | | | | — | | | | | | (8,570) | | |
Noncontrolling interest sold
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Noncontrolling interest dividends – Wuhu
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,301) | | | | | | (3,301) | | |
Balance at December 31, 2016
|
| | | | 20,359,131 | | | | | $ | 221 | | | | | $ | 340,623 | | | | | $ | (35,645) | | | | | $ | (14,021) | | | | | $ | (83,383) | | | | | $ | 207,795 | | | | | $ | 6,144 | | | | | $ | 213,939 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,625 | | | | | | — | | | | | | 47,625 | | | | | | 110 | | | | | | 47,735 | | |
Other comprehensive
income/(loss) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,575 | | | | | | 15,575 | | | | | | 52 | | | | | | 15,627 | | |
Total comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 63,200 | | | | | | 162 | | | | | | 63,362 | | |
Vesting of RSUs
|
| | | | 101,478 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock options exercised
|
| | | | 108,791 | | | | | | 1 | | | | | | 1,312 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,313 | | | | | | — | | | | | | 1,313 | | |
Treasury stock
|
| | | | (27,003) | | | | | | — | | | | | | — | | | | | | (763) | | | | | | — | | | | | | — | | | | | | (763) | | | | | | — | | | | | | (763) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 2,219 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,219 | | | | | | — | | | | | | 2,219 | | |
Dividend paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,221) | | | | | | — | | | | | | (9,221) | | | | | | — | | | | | | (9,221) | | |
Noncontrolling interest sold
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,306) | | | | | | (6,306) | | |
Cumulative effect of the adoption of ASU No. 2016-09
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,329 | | | | | | — | | | | | | 5,329 | | | | | | — | | | | | | 5,329 | | |
Balance at December 31, 2017
|
| | | | 20,542,397 | | | | | $ | 223 | | | | | $ | 344,153 | | | | | $ | (36,408) | | | | | $ | 29,712 | | | | | $ | (67,808) | | | | | $ | 269,872 | | | | | $ | — | | | | | $ | 269,872 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 48,900 | | | | | | — | | | | | | 48,900 | | | | | | — | | | | | | 48,900 | | |
Other comprehensive
income/(loss) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,960) | | | | | | (10,960) | | | | | | — | | | | | | (10,960) | | |
Total comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,940 | | | | | | — | | | | | | 37,940 | | |
Vesting of RSUs
|
| | | | 62,225 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock options exercised
|
| | | | 20,178 | | | | | | — | | | | | | 251 | | | | | | — | | | | | | — | | | | | | — | | | | | | 251 | | | | | | — | | | | | | 251 | | |
Treasury stock
|
| | | | (18,064) | | | | | | — | | | | | | — | | | | | | (474) | | | | | | — | | | | | | — | | | | | | (474) | | | | | | — | | | | | | (474) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | 3,413 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,413 | | | | | | — | | | | | | 3,413 | | |
Dividend paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,088) | | | | | | — | | | | | | (10,088) | | | | | | — | | | | | | (10,088) | | |
Cumulative effect of the adoption of ASU No. 2017-12
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,848) | | | | | | 3,848 | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December 31, 2018
|
| | | | 20,606,736 | | | | | $ | 224 | | | | | $ | 347,816 | | | | | $ | (36,882) | | | | | $ | 64,676 | | | | | $ | (74,920) | | | | | $ | 300,914 | | | | | $ | — | | | | | $ | 300,914 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Raw materials
|
| | | $ | 29,752 | | | | | $ | 23,566 | | |
Work in process
|
| | | | 13,008 | | | | | | 12,914 | | |
Finished goods
|
| | | | 26,674 | | | | | | 21,015 | | |
Total inventory
|
| | | $ | 69,434 | | | | | $ | 57,495 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Customer-owned tooling, net
|
| | | $ | 14,758 | | | | | $ | 33,332 | | |
Company-owned tooling
|
| | | | 507 | | | | | | 277 | | |
Total tooling, net
|
| | | $ | 15,265 | | | | | $ | 33,609 | | |
|
|
Buildings and improvements
|
| |
32 to 40 years
|
|
|
Machinery and equipment
|
| |
3 to 20 years
|
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Cost: | | | | | | | | | | | | | |
Land
|
| | | $ | 5,329 | | | | | $ | 7,383 | | |
Buildings and improvements
|
| | | | 106,594 | | | | | | 118,893 | | |
Machinery and equipment
|
| | | | 656,084 | | | | | | 623,291 | | |
Construction in progress
|
| | | | 74,490 | | | | | | 33,633 | | |
Property, plant, and equipment, gross
|
| | | | 842,497 | | | | | | 783,200 | | |
Less: accumulated depreciation
|
| | | | (494,694) | | | | | | (460,001) | | |
Property, plant, and equipment, net
|
| | | $ | 347,803 | | | | | $ | 323,199 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Beginning balance
|
| | | $ | 16,687 | | | | | $ | 16,676 | | |
Liabilities incurred
|
| | | | 1,378 | | | | | | 3,698 | | |
Accretion expense
|
| | | | 1,182 | | | | | | 1,338 | | |
Liabilities settled
|
| | | | — | | | | | | — | | |
Change in estimate
|
| | | | (4,751) | | | | | | (5,025) | | |
Ending balance
|
| | | $ | 14,496 | | | | | $ | 16,687 | | |
|
|
Balance at December 31, 2016
|
| | | $ | 7,090 | | |
|
Currency translation adjustment
|
| | | | 334 | | |
|
Balance at December 31, 2017
|
| | | | 7,424 | | |
|
Currency translation adjustment
|
| | | | 29 | | |
|
Balance at December 31, 2018
|
| | | $ | 7,453 | | |
|
| | |
Quoted prices in active
markets for identical assets |
| |
Significant other
observable inputs |
| |
Significant
unobservable inputs |
| |
Total
gains/(losses) |
| ||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Long-lived assets held for sale
|
| |
Not applicable
|
| |
Not applicable
|
| | | $ | 263.7 | | | | | $ | (44.0) | | |
| | |
Quoted prices in active
markets for identical assets |
| |
Significant other
observable inputs |
| |
Significant
unobservable inputs |
| |
Total
gains/(losses) |
| ||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Long-lived assets held for sale
|
| |
Not applicable
|
| |
Not applicable
|
| | | $ | 4.3 | | | | | $ | (0.3) | | |
| | |
Quoted prices in active
markets for identical assets |
| |
Significant other
observable inputs |
| |
Significant
unobservable inputs |
| |
Total
gains/(losses) |
| ||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Long-lived assets held for sale
|
| |
Not applicable
|
| |
Not applicable
|
| | | $ | 4.6 | | | | | $ | (3.1) | | |
Asset impairment
|
| |
Not applicable
|
| |
Not applicable
|
| | | | 18.6 | | | | | | (15.0) | | |
Customer
|
| | |||||
Ford
|
| | | | 47% | | |
Fiat – Chrysler
|
| | | | 22% | | |
Nissan
|
| | | | 12% | | |
Toyota
|
| | | | 8% | | |
BMW
|
| | | | 5% | | |
Volkswagen Group
|
| | | | 2% | | |
Honda
|
| | | | 2% | | |
Other
|
| | | | 2% | | |
Total
|
| | | | 100% | | |
|
Vehicle Platform
|
| | |||||
SUV
|
| | | | 53% | | |
Pickup
|
| | | | 27% | | |
Van
|
| | | | 4% | | |
MPV
|
| | | | 2% | | |
Light trucks
|
| | | | 86% | | |
Large Car
|
| | | | 7% | | |
Small Car
|
| | | | 5% | | |
All Other
|
| | | | 2% | | |
Total
|
| | | | 100% | | |
|
| | |
As of
December 31, 2018 |
| |
As of
December 31, 2017 |
| ||||||
Foreign currency translation adjustments, net of tax expense of $2.9 million and
$0.1 million |
| | | $ | (36,531) | | | | | $ | (24,861) | | |
Defined benefit plans, net of tax expense of $14.9 million and $15 million
|
| | | | (38,185) | | | | | | (38,249) | | |
Unrealized loss on qualifying cash flow hedge, net of tax (benefit) of ($1.3 million) and ($2.8 million)
|
| | | | (204) | | | | | | (4,698) | | |
Accumulated other comprehensive loss
|
| | | $ | (74,920) | | | | | $ | (67,808) | | |
|
| | |
Unrealized Losses
on Qualifying Cash Flow Hedge |
| |
Defined Benefit
Plans |
| |
Foreign Currency
Translation Adjustments |
| |
Total
|
| ||||||||||||
Balance at December 31, 2017
|
| | | $ | (4,698) | | | | | $ | (38,249) | | | | | $ | (24,861) | | | | | $ | (67,808) | | |
Other comprehensive income/(loss) before reclassification
|
| | | | 3,760 | | | | | | 64 | | | | | | (14,784) | | | | | | (10,960) | | |
Amounts reclassified from accumulated other comprehensive income
|
| | | | 734 | | | | | | — | | | | | | 3,114 | | | | | | 3,848 | | |
Net current-period other comprehensive income/(loss)
|
| | | | 4,494 | | | | | | 64 | | | | | | (11,670) | | | | | | (7,112) | | |
Balance at December 31, 2018
|
| | | $ | (204) | | | | | $ | (38,185) | | | | | $ | (36,531) | | | | | $ | (74,920) | | |
|
| | |
Unrealized Gains
on Qualifying Cash Flow Hedge |
| |
Defined Benefit
Plans |
| |
Foreign Currency
Translation Adjustments |
| |
Total
|
| ||||||||||||
Balance at December 31, 2016
|
| | | $ | — | | | | | $ | (38,972) | | | | | $ | (44,411) | | | | | $ | (83,383) | | |
Other comprehensive income/(loss) before reclassification
|
| | | | (4,698) | | | | | | 723 | | | | | | 19,550 | | | | | | 15,575 | | |
Net current-period other comprehensive income/(loss)
|
| | | | (4,698) | | | | | | 723 | | | | | | 19,550 | | | | | | 15,575 | | |
Balance at December 31, 2017
|
| | | $ | (4,698) | | | | | $ | (38,249) | | | | | $ | (24,861) | | | | | $ | (67,808) | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Employee termination costs
|
| | | $ | 3,059 | | | | | $ | 7,862 | | | | | $ | 1,335 | | |
Other exit costs
|
| | | | 321 | | | | | | 1,236 | | | | | | 4,578 | | |
Asset impairments
|
| | | | — | | | | | | — | | | | | | 15,000 | | |
Total restructuring expense
|
| | | $ | 3,380 | | | | | $ | 9,098 | | | | | $ | 20,913 | | |
|
|
Balance at December 31, 2016
|
| | | $ | 197 | | |
|
Payments
|
| | | | (3,989) | | |
|
Increase in liability
|
| | | | 7,862 | | |
|
Balance at December 31, 2017
|
| | | | 4,070 | | |
|
Payments
|
| | | | (4,421) | | |
|
Increase in liability
|
| | | | 3,059 | | |
|
Balance at December 31, 2018
|
| | | $ | 2,708 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Revenues
|
| | | $ | 650,294 | | | | | $ | 683,487 | | | | | $ | 714,381 | | |
Loss from sale of discontinued operations
|
| | | | (44,000) | | | | | | (2,896) | | | | | | (3,100) | | |
Income/(loss) from discontinued operations: | | | | | | | | | | | | | | | | | | | |
Income before provision for income taxes
|
| | | | (20,968) | | | | | | 19,769 | | | | | | 36,568 | | |
Provision for income taxes
|
| | | | 7,251 | | | | | | 11,737 | | | | | | 10,992 | | |
Income/(loss) from discontinued operations, net of tax
|
| | | $ | (28,219) | | | | | $ | 8,032 | | | | | $ | 25,576 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets
|
| | | $ | 175,774 | | | | | $ | 222,505 | | |
Property, plant, and equipment, net
|
| | | | 239,023 | | | | | | 226,312 | | |
Other assets, net
|
| | | | 7,072 | | | | | | 16,125 | | |
Goodwill
|
| | | | 17,744 | | | | | | 56,241 | | |
Fair value adjustment
|
| | | | (8,000) | | | | | | (3,400) | | |
Total assets held for sale
|
| | | $ | 431,613 | | | | | $ | 517,783 | | |
LIABILITIES
|
| | | | | | | | | | | | |
Short-term debt and current maturities of capital lease obligations
|
| | | $ | 14,890 | | | | | $ | 38,383 | | |
Accounts payable and accrued liabilities
|
| | | | 142,638 | | | | | | 161,724 | | |
Total current liabilities
|
| | | | 157,528 | | | | | | 200,107 | | |
Long-term debt, net of current maturities
|
| | | | — | | | | | | — | | |
Other non-current liabilities
|
| | | | 10,354 | | | | | | 10,798 | | |
Total non-current liabilities
|
| | | | 10,354 | | | | | | 10,798 | | |
Total liabilities held for sale
|
| | | $ | 167,882 | | | | | $ | 210,905 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Term Loan Credit Facility (net of discount of $1,653 and $2,288)
|
| | | $ | 303,521 | | | | | $ | 356,501 | | |
Amended Revolving Credit Facility
|
| | | | — | | | | | | — | | |
Other foreign subsidiary indebtedness
|
| | | | 1,044 | | | | | | 2,352 | | |
Debt issue costs
|
| | | | (5,960) | | | | | | (8,098) | | |
Total debt
|
| | | | 298,605 | | | | | | 350,755 | | |
Less: Current maturities of debts
|
| | | | (4,148) | | | | | | (4,744) | | |
Total long-term debt
|
| | | $ | 294,457 | | | | | $ | 346,011 | | |
|
|
2019
|
| | | $ | 4,148 | | |
|
2020
|
| | | | 3,894 | | |
|
2021
|
| | | | 3,806 | | |
|
2022
|
| | | | 3,656 | | |
|
2023
|
| | | | 3,615 | | |
|
Thereafter
|
| | | | 285,446 | | |
|
Total
|
| | | | 304,565 | | |
|
Less: Debt issue costs
|
| | | | (5,960) | | |
|
Total, net of debt issue costs
|
| | | $ | 298,605 | | |
|
| | |
Brazil
|
| |||
Balance at December 31, 2017
|
| | | $ | 2,352 | | |
Maturities of indebtedness
|
| | | | (963) | | |
Change in borrowings on credit facilities, net
|
| | | | — | | |
Foreign exchange impact
|
| | | | (345) | | |
Balance at December 31, 2018
|
| | | $ | 1,044 | | |
|
| | |
Location
|
| |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Net investment hedge
|
| |
Other non-current liabilities
|
| | | $ | 19,903 | | | | | $ | 27,001 | | |
Interest rate swap
|
| |
Other non-current liabilities
|
| | | | 5,034 | | | | | | 8,918 | | |
| | |
Deferred gain/(loss) in AOCI
Year Ended December 31, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Net investment hedge
|
| | | $ | 21,099 | | | | | $ | 9,849 | | |
Interest rate hedge
|
| | | | (1,546) | | | | | | (7,537) | | |
Total
|
| | | $ | 19,553 | | | | | $ | 2,312 | | |
|
| | |
Year Ended
December 31, 2018 |
| |||
Interest expense
|
| | | $ | 19,856 | | |
Effect of hedging
|
| | | | (1,563) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Domestic
|
| | | $ | 73,274 | | | | | $ | 72,967 | | | | | $ | 29,454 | | |
Foreign
|
| | | | 5,104 | | | | | | 10,825 | | | | | | (6,982) | | |
Total
|
| | | $ | 78,378 | | | | | $ | 83,792 | | | | | $ | 22,472 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Domestic – Federal
|
| | | $ | (461) | | | | | $ | 352 | | | | | $ | 152 | | |
Domestic – State
|
| | | | 2,147 | | | | | | (364) | | | | | | 925 | | |
Foreign
|
| | | | 2,907 | | | | | | 2,399 | | | | | | 1,144 | | |
Total
|
| | | | 4,593 | | | | | | 2,387 | | | | | | 2,221 | | |
Deferred and other: | | | | | | | | | | | | | | | | | | | |
Domestic – Federal
|
| | | | 10,784 | | | | | | 40,819 | | | | | | 3,912 | | |
Domestic – State
|
| | | | 1,779 | | | | | | 637 | | | | | | 807 | | |
Foreign
|
| | | | (15,897) | | | | | | 246 | | | | | | 1,828 | | |
Total
|
| | | | (3,334) | | | | | | 41,702 | | | | | | 6,547 | | |
Total provision/(benefit) for income taxes
|
| | | $ | 1,259 | | | | | $ | 44,089 | | | | | $ | 8,768 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Taxes at U.S. federal statutory rate
|
| | | $ | 16,459 | | | | | $ | 29,327 | | | | | $ | 7,865 | | |
State tax expense
|
| | | | 3,112 | | | | | | 88 | | | | | | 1,297 | | |
Foreign tax rate differential
|
| | | | 544 | | | | | | (522) | | | | | | 316 | | |
Valuation allowance
|
| | | | (11,365) | | | | | | (1,380) | | | | | | 6,502 | | |
Permanent differences
|
| | | | 724 | | | | | | (1,340) | | | | | | 235 | | |
U.S. Tax Reform – Deferred Tax Asset Revaluation
|
| | | | — | | | | | | 27,163 | | | | | | | | |
Increase/(decrease) in uncertain tax positions
|
| | | | (393) | | | | | | 1,236 | | | | | | 779 | | |
Tax credits
|
| | | | (8,191) | | | | | | (10,365) | | | | | | (7,855) | | |
Other
|
| | | | 369 | | | | | | (118) | | | | | | (371) | | |
Total income tax expense/(benefit)
|
| | | $ | 1,259 | | | | | $ | 44,089 | | | | | $ | 8,768 | | |
|
| | |
December 31,
2018 |
| |
December 31,
2017 |
| ||||||
Deferred tax assets are attributable to: | | | | | | | | | | | | | |
Net operating loss carryforwards and tax credits
|
| | | $ | 108,720 | | | | | $ | 113,865 | | |
Non-deductible reserves and other accruals
|
| | | | 26,881 | | | | | | 25,323 | | |
Accrued pension and postretirement benefit obligations
|
| | | | 12,652 | | | | | | 13,140 | | |
Hedging
|
| | | | 6,165 | | | | | | 8,976 | | |
Capitalized leases
|
| | | | 2,375 | | | | | | 2,841 | | |
Other
|
| | | | 1,748 | | | | | | — | | |
Total gross deferred tax assets
|
| | | | 158,541 | | | | | | 164,145 | | |
Less: valuation allowances
|
| | | | (48,712) | | | | | | (63,300) | | |
Net deferred tax assets
|
| | | $ | 109,829 | | | | | $ | 100,845 | | |
Deferred tax liabilities are attributable to: | | | | | | | | | | | | | |
Long lived assets
|
| | | $ | (18,394) | | | | | $ | (6,115) | | |
Prepaid tooling development costs
|
| | | | (3,110) | | | | | | (7,784) | | |
Prepaid Expense
|
| | | | (5,480) | | | | | | (1,619) | | |
Deferred cancellation of indebtedness income
|
| | | | — | | | | | | (2,236) | | |
Other
|
| | | | (13) | | | | | | (1,014) | | |
Total gross deferred tax liabilities
|
| | | | (26,997) | | | | | | (18,768) | | |
Net deferred tax asset/(liability)
|
| | | $ | 82,832 | | | | | $ | 82,077 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Unrecognized tax benefit – January 1
|
| | | $ | 4,973 | | | | | $ | 3,682 | | | | | $ | 2,880 | | |
Increase in prior year tax positions
|
| | | | — | | | | | | 247 | | | | | | — | | |
Decrease in prior year tax positions
|
| | | | — | | | | | | — | | | | | | (164) | | |
Increase in current year tax positions
|
| | | | 188 | | | | | | 1,039 | | | | | | 1,000 | | |
Audit settlements
|
| | | | (638) | | | | | | — | | | | | | — | | |
Lapse in statute of limitations
|
| | | | — | | | | | | — | | | | | | (25) | | |
Foreign currency translation
|
| | | | 1 | | | | | | 5 | | | | | | (9) | | |
Liabilities held for sale
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 4,524 | | | | | $ | 4,973 | | | | | $ | 3,682 | | |
|
| | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||
Reconciliation of fair value of Pension Plan assets: | | | | | | | | | | | | | |
Fair value of assets, beginning of period
|
| | | $ | 201,522 | | | | | $ | 186,473 | | |
Actual return
|
| | | | (12,070) | | | | | | 28,660 | | |
Employer contributions
|
| | | | 6,019 | | | | | | 8,600 | | |
Expenses paid from Pension Plan assets
|
| | | | (3,341) | | | | | | (3,491) | | |
Benefits paid
|
| | | | (16,953) | | | | | | (18,720) | | |
Fair value of assets, end of period
|
| | | $ | 175,177 | | | | | $ | 201,522 | | |
Change in projected benefit obligation: | | | | | | | | | | | | | |
Projected benefit obligation, beginning of period
|
| | | $ | 249,335 | | | | | $ | 248,100 | | |
Service cost
|
| | | | 17 | | | | | | 19 | | |
Interest cost
|
| | | | 7,155 | | | | | | 7,493 | | |
Actuarial (gain)/loss
|
| | | | (18,615) | | | | | | 12,443 | | |
Benefits paid
|
| | | | (16,953) | | | | | | (18,720) | | |
Projected benefit obligation, end of period
|
| | | $ | 220,939 | | | | | $ | 249,335 | | |
Funded status of the Pension Plan
|
| | | $ | (45,762) | | | | | $ | (47,813) | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Service cost
|
| | | $ | 17 | | | | | $ | 19 | | | | | $ | 21 | | |
Interest cost
|
| | | | 7,155 | | | | | | 7,493 | | | | | | 7,708 | | |
Expected return on plan assets
|
| | | | (10,562) | | | | | | (10,329) | | | | | | (10,316) | | |
Amortization of prior service credit
|
| | | | (95) | | | | | | (95) | | | | | | (95) | | |
Actuarial loss
|
| | | | 5,234 | | | | | | — | | | | | | 8,330 | | |
Net periodic benefit cost/(income)
|
| | | $ | 1,749 | | | | | $ | (2,912) | | | | | $ | 5,648 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Unrecognized gain/(loss)
|
| | | $ | (2,124) | | | | | $ | 2,398 | | | | | $ | 2,091 | | |
Amortization of prior service credit
|
| | | | (95) | | | | | | (95) | | | | | | (95) | | |
Amount recognized
|
| | | $ | (2,219) | | | | | $ | 2,303 | | | | | $ | 1,996 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Unrecognized loss
|
| | | $ | (24,901) | | | | | $ | (22,777) | | |
Net prior service credit
|
| | | | 1,570 | | | | | | 1,665 | | |
Deferred tax impact
|
| | | | (13,364) | | | | | | (13,919) | | |
Accumulated other comprehensive loss
|
| | | $ | (36,695) | | | | | $ | (35,031) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Discount rate
|
| | | | 4.09% | | | | | | 3.42% | | |
Annual rate of increase in compensation
|
| | | | 4.5% | | | | | | 4.5% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Discount rate
|
| | | | 3.42% | | | | | | 3.84% | | | | | | 4.01% | | |
Expected long-term rate of return on plan assets
|
| | | | 7.4% | | | | | | 7.4% | | | | | | 7.4% | | |
Annual rate of increase in compensation
|
| | | | 4.5% | | | | | | 4.5% | | | | | | 4.5% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Asset Classes:
|
| |
2018
|
| |
2017
|
| |
2018 Target
|
| |||||||||
Equity securities
|
| | | | 43% | | | | | | 45% | | | | | | 50% | | |
Non-equity investments
|
| | | | 12% | | | | | | 12% | | | | | | 5% | | |
Fixed income investments
|
| | | | 36% | | | | | | 34% | | | | | | 40% | | |
Cash and cash equivalents
|
| | | | 1% | | | | | | 2% | | | | | | —% | | |
Real estate
|
| | | | 8% | | | | | | 7% | | | | | | 5% | | |
Total
|
| | | | 100% | | | | | | 100% | | | | | | 100% | | |
|
| | |
Fair Value Measurements at December 31, 2018
|
| |||||||||||||||||||||
Asset Classes
|
| |
Total
|
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 2 | | | | | $ | 2 | | | | | $ | — | | | | | $ | — | | |
Equity securities
|
| | | | 75 | | | | | | — | | | | | | 75 | | | | | | — | | |
Mutual funds(a)
|
| | | | 21 | | | | | | 12 | | | | | | 9 | | | | | | — | | |
Corporate bonds
|
| | | | 47 | | | | | | — | | | | | | 47 | | | | | | — | | |
Government bonds
|
| | | | 15 | | | | | | — | | | | | | 15 | | | | | | — | | |
Real estate investment funds
|
| | | | 15 | | | | | | — | | | | | | — | | | | | | 15 | | |
Total
|
| | | $ | 175 | | | | | $ | 14 | | | | | $ | 146 | | | | | $ | 15 | | |
|
| | |
Fair Value Measurements at December 31, 2017
|
| |||||||||||||||||||||
Asset Classes
|
| |
Total
|
| |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
| |
Significant
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 3 | | | | | $ | 2 | | | | | $ | 1 | | | | | $ | — | | |
Equity securities
|
| | | | 91 | | | | | | — | | | | | | 91 | | | | | | — | | |
Mutual funds(a)
|
| | | | 26 | | | | | | 16 | | | | | | 10 | | | | | | — | | |
Corporate bonds
|
| | | | 51 | | | | | | — | | | | | | 51 | | | | | | — | | |
Government bonds
|
| | | | 17 | | | | | | — | | | | | | 17 | | | | | | — | | |
Real estate investment funds
|
| | | | 14 | | | | | | — | | | | | | — | | | | | | 14 | | |
Total
|
| | | $ | 202 | | | | | $ | 18 | | | | | $ | 170 | | | | | $ | 14 | | |
|
| | |
Real Estate
Investment Funds |
| |||
Balance at December 31, 2016
|
| | | $ | 14 | | |
Return on plan assets held at the reporting date
|
| | | | — | | |
Purchases
|
| | | | — | | |
Redemptions
|
| | | | — | | |
Balance at December 31, 2017
|
| | | $ | 14 | | |
Return on plan assets held at the reporting date
|
| | | | 1 | | |
Purchases
|
| | | | — | | |
Redemptions
|
| | | | — | | |
Balance at December 31, 2018
|
| | | $ | 15 | | |
|
| | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||
Reconciliation of fair value of life insurance plan assets: | | | | | | | | | | | | | |
Fair value of assets, beginning of period
|
| | | $ | — | | | | | $ | — | | |
Employer contributions
|
| | | | 729 | | | | | | 744 | | |
Benefits paid
|
| | | | (729) | | | | | | (744) | | |
Fair value of assets, end of period
|
| | | $ | — | | | | | $ | — | | |
Change in benefit obligation: | | | | | | | | | | | | | |
Benefit obligation, beginning of period
|
| | | $ | 16,892 | | | | | $ | 16,200 | | |
Service cost
|
| | | | 6 | | | | | | 5 | | |
Interest cost
|
| | | | 516 | | | | | | 530 | | |
Actuarial loss/(gain)
|
| | | | (2,062) | | | | | | 901 | | |
Benefits paid
|
| | | | (729) | | | | | | (744) | | |
Benefit obligation, end of period
|
| | | $ | 14,623 | | | | | $ | 16,892 | | |
Funded status of life insurance plans
|
| | | $ | (14,623) | | | | | $ | (16,892) | | |
|
| | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
Year Ended
December 31, 2016 |
| |||||||||
Service cost
|
| | | $ | 6 | | | | | $ | 5 | | | | | $ | 5 | | |
Interest cost
|
| | | | 516 | | | | | | 530 | | | | | | 539 | | |
Amortization of prior service credit
|
| | | | 132 | | | | | | 132 | | | | | | 132 | | |
Net periodic benefit cost
|
| | | $ | 654 | | | | | $ | 667 | | | | | $ | 676 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Net actuarial gain/(loss)
|
| | | $ | 2,062 | | | | | $ | (901) | | | | | $ | (393) | | |
Amortization of prior service cost
|
| | | | 132 | | | | | | 132 | | | | | | 132 | | |
Amount recognized
|
| | | $ | 2,194 | | | | | $ | (769) | | | | | $ | (261) | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Unrecognized gain/(loss)
|
| | | $ | 1,388 | | | | | $ | (674) | | |
Net prior service credit
|
| | | | (1,315) | | | | | | (1,447) | | |
Deferred tax impact
|
| | | | (1,563) | | | | | | (1,097) | | |
Accumulated other comprehensive loss
|
| | | $ | (1,490) | | | | | $ | (3,218) | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Income from continuing operations
|
| | | $ | 77,119 | | | | | $ | 39,703 | | | | | $ | 13,704 | | |
Income/(loss) from discontinued operations, net of tax
|
| | | | (28,219) | | | | | | 8,032 | | | | | | 25,576 | | |
Net income
|
| | | | 48,900 | | | | | | 47,735 | | | | | | 39,280 | | |
Less: Net income attributable to the noncontrolling interests
|
| | | | — | | | | | | 110 | | | | | | 701 | | |
Net income attributable to Tower International, Inc.
|
| | | $ | 48,900 | | | | | $ | 47,625 | | | | | $ | 38,579 | | |
Basic income/(loss) per share: | | | | | | | | | | | | | | | | | | | |
Continuing operations
|
| | | $ | 3.75 | | | | | $ | 1.93 | | | | | $ | 0.62 | | |
Discontinued operations
|
| | | | (1.38) | | | | | | 0.39 | | | | | | 1.23 | | |
Net income attributable to Tower International, Inc.
|
| | | | 2.37 | | | | | | 2.32 | | | | | | 1.85 | | |
Basic weighted average shares outstanding
|
| | | | 20,591,674 | | | | | | 20,498,668 | | | | | | 20,864,321 | | |
Diluted income/(loss) per share: | | | | | | | | | | | | | | | | | | | |
Continuing operations
|
| | | $ | 3.67 | | | | | $ | 1.90 | | | | | $ | 0.61 | | |
Discontinued operations
|
| | | | (1.34) | | | | | | 0.39 | | | | | | 1.21 | | |
Net income attributable to Tower International, Inc.
|
| | | | 2.33 | | | | | | 2.29 | | | | | | 1.82 | | |
Diluted weighted average shares outstanding
|
| | | | 20,996,068 | | | | | | 20,828,888 | | | | | | 21,222,183 | | |
Declaration Date
|
| |
Cash Amount
|
| |
Record Date
|
| |
Payment Date
|
| |||
2018 | | | | | | | | | | | | | |
October 18, 2018
|
| | | $ | 0.13 | | | |
November 8, 2018
|
| |
December 7, 2018
|
|
July 17, 2018
|
| | | | 0.12 | | | |
August 9, 2018
|
| |
September 7, 2018
|
|
April 19, 2018
|
| | | | 0.12 | | | |
May 10, 2018
|
| |
June 8, 2018
|
|
January 26, 2018
|
| | | | 0.12 | | | |
February 9, 2018
|
| |
February 28, 2018
|
|
2017 | | | | | | | | | | | | | |
October 20, 2017
|
| | | $ | 0.12 | | | |
November 10, 2017
|
| |
December 8, 2017
|
|
July 21, 2017
|
| | | | 0.11 | | | |
August 10, 2017
|
| |
September 8, 2017
|
|
April 21, 2017
|
| | | | 0.11 | | | |
May 10, 2017
|
| |
June 9, 2017
|
|
January 27, 2017
|
| | | | 0.11 | | | |
February 10, 2017
|
| |
February 28, 2017
|
|
2016 | | | | | | | | | | | | | |
October 21, 2016
|
| | | $ | 0.11 | | | |
November 10, 2016
|
| |
December 9, 2016
|
|
July 22, 2016
|
| | | | 0.10 | | | |
August 10, 2016
|
| |
September 9, 2016
|
|
April 22, 2016
|
| | | | 0.10 | | | |
May 10, 2016
|
| |
June 10, 2016
|
|
January 29, 2016
|
| | | | 0.10 | | | |
February 10, 2016
|
| |
February 29, 2016
|
|
| | |
Options
|
| |
Restricted Stock Units
|
| ||||||||||||||||||
Outstanding at:
|
| |
Shares
|
| |
Weighted
Average Exercise Price |
| |
Shares
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||||||||
December 31, 2015
|
| | | | 500,138 | | | | | $ | 12.17 | | | | | | 187,498 | | | | | $ | 23.59 | | |
Granted
|
| | | | — | | | | | | — | | | | | | 105,468 | | | | | | 23.26 | | |
Options exercised or RSUs vested
|
| | | | (25,670) | | | | | | 11.90 | | | | | | (77,912) | | | | | | 19.92 | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | (1,532) | | | | | | 25.26 | | |
December 31, 2016
|
| | | | 474,468 | | | | | $ | 12.18 | | | | | | 213,522 | | | | | $ | 24.77 | | |
Granted
|
| | | | — | | | | | | — | | | | | | 106,312 | | | | | | 28.09 | | |
Options exercised or RSUs vested
|
| | | | (108,791) | | | | | | 12.07 | | | | | | (101,478) | | | | | | 24.99 | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | (5,335) | | | | | | 25.47 | | |
December 31, 2017
|
| | | | 365,677 | | | | | $ | 12.22 | | | | | | 213,022 | | | | | $ | 26.30 | | |
Granted
|
| | | | — | | | | | | — | | | | | | 242,531 | | | | | | 26.35 | | |
Options exercised or RSUs vested
|
| | | | (20,178) | | | | | | 12.45 | | | | | | (62,225) | | | | | | 26.32 | | |
Forfeited
|
| | | | (4,155) | | | | | | 12.04 | | | | | | (5,281) | | | | | | 26.21 | | |
December 31, 2018
|
| | | | 341,344 | | | | | $ | 12.21 | | | | | | 388,047 | | | | | $ | 26.33 | | |
|
| Year Ended December 31, 2018: | | | | | | | |
|
Revenues
|
| | | $ | 1,571,853 | | |
|
Net Income
|
| | | | 48,900 | | |
|
Capital Expenditures(a)
|
| | | | 83,141 | | |
|
Total assets(b)
|
| | | | 1,170,392 | | |
| Year Ended December 31, 2017: | | | | | | | |
|
Revenues
|
| | | $ | 1,382,474 | | |
|
Net Income
|
| | | | 47,625 | | |
|
Capital Expenditures(a)
|
| | | | 67,240 | | |
|
Total assets(b)
|
| | | | 1,260,873 | | |
| Year Ended December 31, 2016: | | | | | | | |
|
Revenues
|
| | | $ | 1,319,046 | | |
|
Net Income
|
| | | | 38,579 | | |
|
Capital Expenditures(a)
|
| | | | 72,194 | | |
| | |
Year Ended and End of Year December 31,
|
||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
||||||||||||||||||||||||||
| | |
Revenues
|
| |
Long-Lived
Assets |
| |
Revenues
|
| |
Long-Lived
Assets |
| |
Revenues
|
| |
Long-Lived
Assets |
|||||||||||||||||
U.S.
|
| | | $ | 1,470,772 | | | | | $ | 332,086 | | | | | $ | 1,273,442 | | | | | $ | 305,127 | | | | | $ | 1,222,120 | | | | | $ | 276,892 |
Mexico
|
| | | | 48,099 | | | | | | 6,785 | | | | | | 49,755 | | | | | | 4,110 | | | | | | 52,203 | | | | | | 4,223 |
Brazil
|
| | | | 52,982 | | | | | | 9,439 | | | | | | 59,277 | | | | | | 14,239 | | | | | | 44,723 | | | | | | 15,340 |
Intercompany eliminations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — |
Total
|
| | | $ | 1,571,853 | | | | | $ | 348,310 | | | | | $ | 1,382,474 | | | | | $ | 323,476 | | | | | $ | 1,319,046 | | | | | $ | 296,455 |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Body structures and assemblies
|
| | | | 47% | | | | | | 44% | | | | | | 46% | | |
Chassis, lower vehicle structures, and suspension components
|
| | | | 36% | | | | | | 34% | | | | | | 30% | | |
Complex body-in-white assemblies
|
| | | | 17% | | | | | | 22% | | | | | | 24% | | |
Total
|
| | | | 100% | | | | | | 100% | | | | | | 100% | | |
|
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Ford
|
| | | | 47% | | | | | | 51% | | | | | | 47% | | |
Fiat – Chrysler
|
| | | | 22% | | | | | | 18% | | | | | | 21% | | |
Nissan
|
| | | | 12% | | | | | | 15% | | | | | | 12% | | |
Year
|
| |
Operating
Leases |
| |||
2019
|
| | | $ | 42,261 | | |
2020
|
| | | | 49,615 | | |
2021
|
| | | | 47,385 | | |
2022
|
| | | | 45,831 | | |
2023
|
| | | | 43,139 | | |
Thereafter
|
| | | | 111,947 | | |
Total future lease payments
|
| | | $ | 340,178 | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Accounts receivable
|
| | | $ | 10,830 | | | | | $ | (21,357) | | | | | $ | 32,950 | | |
Inventories
|
| | | | (11,939) | | | | | | (3,808) | | | | | | (4,067) | | |
Prepaid tooling and other current assets
|
| | | | 16,435 | | | | | | 20,729 | | | | | | (17,868) | | |
Accounts payable and accrued liabilities
|
| | | | (23,960) | | | | | | 24,780 | | | | | | 14,590 | | |
Other assets and liabilities
|
| | | | (20,862) | | | | | | (15,936) | | | | | | (11,997) | | |
Change in working capital and other operating items
|
| | | $ | (29,496) | | | | | $ | 4,408 | | | | | $ | 13,608 | | |
|
Quarter
|
| |
Net Sales
|
| |
Gross Profit
|
| |
Net
Income/(Loss) |
| |
Net
Income/(Loss) Attributable to Tower International, Inc. |
| |
Diluted
Earnings/(Loss) per Share |
| |||||||||||||||
2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1st
|
| | | $ | 407,233 | | | | | $ | 48,184 | | | | | $ | 17,300 | | | | | $ | 17,300 | | | | | $ | 0.83 | | |
2nd
|
| | | | 395,929 | | | | | | 50,822 | | | | | | 22,376 | | | | | | 22,376 | | | | | | 1.07 | | |
3rd
|
| | | | 391,421 | | | | | | 52,166 | | | | | | 22,580 | | | | | | 22,580 | | | | | | 1.07 | | |
4th(a)
|
| | | | 377,270 | | | | | | 42,726 | | | | | | (13,356) | | | | | | (13,356) | | | | | | (0.64) | | |
Full Year
|
| | | $ | 1,571,853 | | | | | $ | 193,898 | | | | | $ | 48,900 | | | | | $ | 48,900 | | | | | | 2.33 | | |
2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1st
|
| | | $ | 352,450 | | | | | $ | 42,715 | | | | | $ | 17,413 | | | | | $ | 17,345 | | | | | $ | 0.83 | | |
2nd
|
| | | | 344,821 | | | | | | 48,130 | | | | | | 19,258 | | | | | | 19,216 | | | | | | 0.92 | | |
3rd(b)
|
| | | | 330,397 | | | | | | 47,179 | | | | | | 14,931 | | | | | | 14,931 | | | | | | 0.72 | | |
4th(c)
|
| | | | 354,806 | | | | | | 51,139 | | | | | | (3,867) | | | | | | (3,867) | | | | | | (0.19) | | |
Full Year
|
| | | $ | 1,382,474 | | | | | $ | 189,163 | | | | | $ | 47,735 | | | | | $ | 47,625 | | | | | | 2.29 | | |
|
Plan Category
|
| |
Number of Securities
to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights |
| |
Weighted-Average
Exercise Price of Outstanding Options, Warrants, and Rights |
| |
Number of Securities
Remaining Available for Future Issuance Under Equity Compensation Plans |
| |||||||||
Equity compensation plans approved by security
holders |
| | | | 729,391 | | | | | $ | 19.72 | | | | | | 585,287 | | |
Equity compensation plans not approved by security holders
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | |
Total
|
| | | | 729,391 | | | | | $ | 19.72 | | | | | | 585,287 | | |
|
| | |
Page
|
| |||
| | | | 51 | | | |
| | | | 52 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 55 | | | |
| | | | 56 | | | |
| | | | 57 | | |
Column A
|
| |
Column B
|
| |
Column C
|
| |
Column D
|
| |
Column E
|
| ||||||||||||||||||
| | |
Balance at
Beginning of Year |
| |
Additions
|
| |
Deductions
|
| |
Balance at
End of Year |
| ||||||||||||||||||
Description
|
| |
Charged to
Costs and Expenses |
| |
Charged to
Other Accounts |
| ||||||||||||||||||||||||
Year Ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts
|
| | | $ | 556 | | | | | $ | 278 | | | | | $ | — | | | | | $ | (11)(a) | | | | | $ | 823 | | |
Deferred tax asset valuation allowance
|
| | | | 63,300 | | | | | | (11,367) | | | | | | (3,221) | | | | | | — | | | | | | 48,712 | | |
Year Ended December 31, 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts
|
| | | $ | 602 | | | | | $ | (29) | | | | | $ | — | | | | | $ | (17)(a) | | | | | $ | 556 | | |
Deferred tax asset valuation allowance
|
| | | | 58,985 | | | | | | (1,380) | | | | | | 5,695 | | | | | | — | | | | | | 63,300 | | |
Year Ended December 31, 2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts
|
| | | $ | 437 | | | | | $ | 181 | | | | | $ | — | | | | | $ | (16)(a) | | | | | $ | 602 | | |
Deferred tax asset valuation allowance
|
| | | | 46,289 | | | | | | 6,502 | | | | | | 6,194 | | | | | | — | | | | | | 58,985 | | |
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|
11.1
|
| |
A statement regarding the computation of earnings per share is omitted because such computation can be clearly determined from the material contained in this Report.
|
|
| | | Subsidiaries of Tower International, Inc. | | |
| | | Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|
101.INS
|
| | XBRL Instance Document | |
|
101.SCH
|
| | XBRL Taxonomy Extension Scheme 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 | |
| Date: February 27, 2019 | | |
/s/ Jeffrey L. Kersten
Jeffrey L. Kersten
Chief Financial Officer |
|
Signature
|
| |
Title
|
|
/s/ James C. Gouin
James C. Gouin
|
| | Chief Executive Officer and Director (Principal Executive Officer) |
|
/s/ Jeffrey L. Kersten
Jeffrey L. Kersten
|
| | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
|
/s/ Gregory B. Guastella
Gregory B. Guastella
|
| | Principal Accounting Officer | |
/s/ Thomas K. Brown
Thomas K. Brown
|
| | Director | |
/s/ James Chapman
James Chapman
|
| | Director | |
/s/ Frank E. English
Frank E. English
|
| | Director | |
/s/ Alison Davis-Blake
Alison Davis-Blake
|
| | Director | |
/s/ Dev Kapadia
Dev Kapadia
|
| | Director | |
/s/ Mark M. Malcolm
Mark M. Malcolm
|
| | Director | |