Tax Credit Boosts Horizon Global Profit; Sales Dip

BLOOMFIELD HILLS — Horizon Global Corp. (NYSE: HZN) completed its first quarter as a stand-alone, independent public company with net income of $6.4 million or 35 cents a share in the third quarter ended Sept. 30, an improvement from $5.2 million or 29 cents a share a year earlier.

The increase was due to an income tax credit of $3.2 million. A year ago the company paid $1.7 million in income tax. Income before income tax expense was $3.2 million, down from $6.9 million a year earlier.

Revenue for the quarter was $153.3 million, down from $157.9 million a year earlier.

For the first nine months of 2015, net income was $10 million or 55 cents a share, down from $18.4 million or $1.02 a share a year earlier. Revenue was $454.2 million, down from $484.2 million.

Horizon manufactures branded towing and trailering equipment.

The company also released an operating profit excluding special items figure of $11.7 million for the quarter, up 36 percent from $8.6 million a year earlier. The figure excludes severance and business restructuring costs anda loss on software disposal.

“We are proud of what we have accomplished in our first quarter operating as a stand-alone, independent public company,” said Horizon Global president and CEO A. Mark Zeffro. “Much has been accomplished in our first 90 days, including establishing a company with a culture, vision, and mission that aligns to our objectives for value creation. In addition, we have made significant progress towards execution of our three financial priorities. First, we are on track to achieve our near-term margin target of 10 percent on a segment basis, with the third quarter segment margin improving to 10.1 percent, excluding Special Items. We continue to work on a number of actions geared toward profitability improvement. Second, our cash generation in the quarter coupled with our working capital management resulted in a reduction in our leverage ratio to 3.6 times, with $28 million of cash on hand and total cash available of $98 million. Finally, our revenues were up 2.6 percent on a constant currency basis, driven by retail, e-commerce and aftermarket growth.”

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