Gentherm Profits More Than Double, Revenue Up 23% In 2014

NORTHVILLE — Gentherm Inc. (NASDAQ: THRM), the automotive thermal management equipment supplier, posted net income of $70.1 million or $1.95 a share, in 2014, up from $33.8 million or $94 cents a share in 2013. Revenue was $811.3 million, up from $662.1 million in 2013.

In the fourth quarter, net income was $19.8 million or 55 cents a share, up from $11 million or 31 cents a share in the fourth quarter of 2013. Revenue was $205.2 million, up from $182.3 million in the fourth quarter of 2013.

“We believe 2014 was a great year as we achieved nearly all of the goals we set out for ourselves, especially in growing our bottom line,” said Gentherm president and CEO Daniel R. Coker. “Our strong top line and bottom line results for 2014 again demonstrate our ability to drive revenues and profit as we expand globally in North America, Europe and Asia. We have doubled our business in the past three years and completed an important strategic acquisition, all of which has been accomplished with internal funding.”

The company said it has opened a new office in Houston, Texas in recent weeks and has begun building manufacturing plants in Vietnam and Macedonia.

Added Coker: “One of our long term goals is to generate 25 percent of our revenue from non-automotive markets and we believe we are beginning to make progress in achieving that goal. In addition to our bedding and mattress business, we are moving quickly forward with investigating new opportunities in the medical, aerospace, industrial and commercial consumer markets.”

The company also released an adjusted earnings before interest, taxes, depreciation and amortization figure of $131.4 million for the year, up from $81.5 million in 2013. The company said the figure is released to help shareholders understand Gentherm’s results from continuing operations given “the significant amount of acquisition-related amortization recorded against the company’s earnings.”

Research and development spending for the year was $57.5 million, up $7.7 million, or 15 percent, from the year before. The company said the increase represents more resources, including staff, researching improvements to existing products and introduction of new products. Selling, general and administrative expenses were $84.6 million for the year, up from $72.1 million from a year ago.

The company said that “barring unforeseen economic turbulence,” it’s expecting revenue for 2015 to increase 10 to 15 percent over 2014 revenue.

To listen to a replay of a conference call discussing these results, visit the investor section of www.gentherm.com.

Gentherm’s automotive products include actively heated and cooled seat systems and cup holders, heated and ventilated seat systems, thermal storage bins, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), cable systems and other electronic devices. The company is also developing materials for thermoelectric and systems for waste heat recovery and electrical power generation for the automotive markets that may have far-reaching applications for consumer products as well as industrial and technology markets.

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