Horizon Global Corporation (NYSE: HZN), one of the world’s leadingof branded towing and trailering equipment, today reported financial results for the third quarter of 2021.
“When we launched our turnaround plan in late 2019, we set out to build a strong global organization that would not waver regardless of the external business climate,” stated Terry Gohl, Horizon Global’s President and Chief Executive Officer. “Our Q3 2021 performance is evidence that we achieved this objective. Despite significant and unprecedented macroeconomic headwinds relating to material costs andconstraints, we did not bend. Instead, we rose to the occasion and rapidly identified and deployed targeted actions, including commercial price recovery, rebalancing, and operational cost mitigation, to partially offset the impact of -wide headwinds. At the same time, we never lost sight of our long-term strategic plan and accelerated the execution of operational improvement initiatives to support the business in Q3 2021 and beyond.”
2021 Third Quarter Segment Results
Horizon Americas. Net sales decreased $3.2 million, or 2.8%, to $115.9 million when compared to the third quarter of 2020. The net sales decrease was primarily driven by a $7.8 million decrease in the retail sales channel attributable to material and EBITDA(1) decreased to $14.5 million for the quarter, as compared to $15.5 million for the third quarter of 2020.constraints, partially offset by a combined $3.3 million increase in the e-commerce and industrial sales channels. Horizon Americas generated an operating profit of $12.4 million, a decrease of $0.8 million compared to the third quarter of 2020, primarily driven by the lower net sales described above, partially offset by reduced selling, general and administrative costs (SG&A). Adjusted
Horizon EBITDA(1) decreased to $3.4 million for the quarter, as compared to $6.1 million for the third quarter of 2020.-Africa. Net sales decreased $1.8 million, or 2.2%, to $80.7 million when compared to the third quarter of 2020. The net sales decrease was primarily driven by a $7.8 million decrease in the OEM sales channel attributable to semiconductor supply constraints, and a $2.0 million decrease in the aftermarket sales channel. The decrease was partially offset by a $7.0 million increase in the OES sales channel. Horizon -Africa generated an operating loss of $0.2 million, a reduction of $2.6 million compared to the third quarter of 2020, primarily driven by the lower net sales described above, coupled with higher SG&A. Adjusted
Balance Sheet and Liquidity. Cash and Availability(2) was $54.9 million, a reduction of $28.5 million compared to December 31, 2020. Working Capital(3) was $109.5 million, an increase of $53.9 million compared to December 31, 2020, primarily reflecting increased raw material costs and in-transit inventory levels due toand material constraints. Gross debt increased $30.2 million to $296.3 million compared to December 31, 2020, primarily reflecting additional borrowings on the Company’s ABL as well as proceeds from the term loan refinancing completed during the first quarter of 2021.
Gohl commented, “I want to thank the global team for its extraordinary efforts so far in 2021. We have delivered exceptional year-to-date results and, despite a challenging macroeconomic environment, continue to improve this business day in and day out. Our sights remain on double-digit margins, and we believe this target is achievable through the continued execution of operational improvement initiatives across our global operations, the optimization of our-Africa footprint, and, importantly, continuing to serve as the supplier of choice to our customers in our core geographies.
Conference Call Details
Horizon Global will host a conference call regarding third quarter 2021 earnings on Thursday, November 4, 2021, at 8:30 a.m. Eastern Time. The conference call will be hosted by Horizon Global’s President and Chief Executive Officer, Terry Gohl, and Dennis Richardville, Horizon Global’s Chief Financial Officer. Participants on the call are asked to register five to ten minutes prior to the scheduled start time by dialing (844) 825-9786 and from outside the U.S. at (412) 902-4185. Please ask to join the Horizon Global call.
The third quarter 2021 results and supplemental materials, including a presentation in PDF format, will be distributed before the market opens on November 4, 2021, and will be available on the Company’s website at www.horizonglobal.com prior to the start of the call.
The conference call will be webcast simultaneously and in its entirety through the Horizon Global website. Shareholders, media representatives, and others may participate in the webcast by registering through the Investor Relations section on the Company’s website.
A replay of the call will be available on Horizon Global’s website or by phone by dialing (877) 344-7529 and from outside the U.S. at (412) 317-0088. Please use the conference identification number 10155632. The telephone replay will be available approximately two hours after the end of the call and continue through November 18, 2021.
About Horizon Global
Headquartered in Plymouth, MI, Horizon Global is the #1 designer, OEMs, retailers, dealer networks, and the end consumer as the category leader in the , leisure, and agricultural market segments. Horizon provides its customers with outstanding products and services that reflect the Company’s commitment to market leadership, innovation, and operational excellence. The Company’s mission is to utilize forward-thinking technology to develop and deliver best-in-class products for our customers, engage with our employees and realize value creation for our shareholders., and distributor of a wide variety of high-quality, custom-engineered towing, trailering, cargo management, and other related accessory products in and . The Company serves
Horizon Global is home to some of the world’s most recognized brands in the towing and trailering, including Draw-Tite, Reese, Westfalia, BULLDOG, Fulton, and Tekonsha. Horizon Global has approximately 4,350 employees.
For more information, please visit www.horizonglobal.com.