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Announces Record Quarterly Revenue, including Record Organic Quarterly Revenue
Secured the First Combined Award for Thermal and Pneumatic Comfort
Maintains Total Company 2022 Guidance
NORTHVILLE, Mich., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Gentherm (NASDAQ:THRM), a global market leader of innovative thermal management and pneumatic comfort technologies, today announced its financial results for the third quarter ended September 30, 2022.
Third Quarter Highlights
Phil Eyler, the Company's President and CEO, said, “Our third quarter results validate the effectiveness of our focused growth strategy and demonstrate our unique position to capitalize on industry megatrends in the mid and long term. As we mark the completion of the initial quarter since closing the acquisition of Alfmeier, we and our customers have already begun benefitting from Gentherm’s expanded value proposition. Demand for our thermal and pneumatic massage and lumbar comfort solutions, especially in the electric vehicle (EV) market, continues to be strong – evidenced by the milestone achievements of our third quarter. First, we won our inaugural combined award for thermal and pneumatic comfort with one of the largest global EV manufacturers. Second, we recently announced that the 2024 Cadillac CELESTIQ will be the first-to-market vehicle to feature Gentherm’s ClimateSense® four-zone microclimate system as standard equipment. These awards underscore the growing traction of our innovative solutions.”
“I am extremely proud of the global Gentherm team for driving ground-breaking innovation, outperforming light vehicle production, stringently managing costs and delivering record quarterly revenue despite a challenging industry backdrop,” continued Eyler.
2022 Third Quarter Financial Review
Product revenues of $333.0 million increased $89.6 million, or 36.8%, in the third quarter of 2022 as compared to the prior-year period. Excluding the impact of foreign currency translation, product revenues increased 44.4% year over year. On a comparable basis, adjusting for acquisitions and foreign currency translation, product revenues increased 27.0% year over year.
The company added $41.3 million in revenue resulting from the acquisition of Alfmeier effective August 1, 2022. Alfmeier grew 16.9% from the comparable prior-year two-month period, excluding the impact of foreign currency translation.
Automotive revenues increased 38.4% year over year, driven by contribution from the acquisition of Alfmeier as well as growth in Steering Wheel Heaters, Climate Controlled Seat, Seat Heaters, Battery Performance Solutions, and Other Automotive. Adjusting for foreign currency translation and the Alfmeier acquisition, Automotive revenues increased 28.5% year over year. According to S&P Global Mobility, actual light vehicle production increased by 25.8% when compared to the third quarter of 2021 in the Company’s key markets of North America, Europe, China, Japan, and Korea.
Gentherm Medical revenue increased 0.5% year over year, 4.1% excluding the impact of foreign currency translation, driven by a $1.2 million contribution from the acquisition of Dacheng Medical.
See the “Revenue by Product Category” table included below for additional detail.
The gross margin rate decreased to 24.1% in the current-year period versus 28.5% in the prior-year period, primarily as a result of wage and material inflation, the industry-wide supply chain disruptions, the acquired Alfmeier business having a lower gross margin rate relative to the Company’s organic business, as well as the negative impact from foreign currency translation. These were partially offset by fixed cost leverage from higher unit volume and cost recoveries from customers.
Net research and development expenses of $22.7 million in the third quarter of 2022 increased $2.1 million, or 10.1%, primarily as a result of the additional expenses from the Alfmeier business and increased investments in ClimateSense and battery performance solutions.
Selling, general and administrative (SG&A) expenses of $34.9 million in the third quarter of 2022 increased $7.5 million, or 27.5%, versus the prior-year period. The year-over-year increase was primarily driven by $7.5 million of expenses associated with the Alfmeier and Dacheng acquisitions and additional expenses from the acquired businesses, partially offset by lower incentive compensation.
Acquisition expenses of $11.3 million in the current-year period were $11.3 million higher than the prior-year period as a result of expenses associated with the Alfmeier and Dacheng acquisitions including previously noted SG&A expenses and $3.8 million realized foreign currency loss. The Company incurred minimal restructuring expenses in the current-year period, compared to $0.7 million in the prior-year period.
As described more fully in the table included below, “Reconciliation of Net Income to Adjusted EBITDA,” the Company recorded Adjusted EBITDA of $43.2 million during the third quarter of 2022 compared to $30.5 million in the prior year, a year-over-year increase of $12.7 million or 41.7%.
Income tax expense in the 2022 third quarter was $5.8 million, as compared with $4.6 million in the prior-year period. The effective tax rate was 37.1% for the current-year quarter.
GAAP diluted earnings per share for the third quarter of 2022 was $0.29 compared with $0.47 for the prior-year period. Adjusted diluted earnings per share, excluding acquisition expenses, unrealized currency loss, non-cash purchase accounting impact, and other impacts (see table herein), was $0.70. Adjusted diluted earnings per share in the prior-year period was $0.51.
Guidance
The Company maintains its total company full-year 2022 guidance but updates acquisition assumptions that were initially provided in its second quarter 2022 earnings release on August 2, 2022:
Conference Call
As previously announced, Gentherm will conduct a conference call today at 8:00 am Eastern Time to review these results. The dial-in number for the call is 1-877-300-8521 (callers in the U.S.) or +1-412-317-6026 (callers outside this U.S.). The passcode for the live call is 10172220.
A live webcast and one-year archived replay of the call can be accessed on the Events page of the Investor section of Gentherm's website at www.gentherm.com.
A telephonic replay will be available approximately two hours after the call until 11:59 pm Eastern Time on November 16, 2022. The replay can be accessed by dialing 1-844-512-2921 (callers in the U.S.), or +1-412-317-6671 (callers outside the U.S.). The passcode for the replay is 10172220.
Investor Relations Contact
Yijing Brentano
investors@gentherm.com
(248) 308-1702
Media Contact
Melissa Fischer
media@gentherm.com
248.289.9702
About Gentherm
Gentherm (NASDAQ:THRM) is the global market leader of innovative thermal management and pneumatic comfort technologies for the automotive industry. Automotive products include variable temperature Climate Control Seats, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, valve system technologies, and other electronic devices. Medical products include patient temperature management systems. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm has approximately 13,000 employees in facilities in the United States, Germany, China, Czech Republic, Hungary, Japan, Malta, Mexico, North Macedonia, South Korea, United Kingdom, Ukraine, and Vietnam. For more information, go to www.gentherm.com.
Forward-Looking Statements
Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Gentherm Incorporated's goals, beliefs, plans and expectations about its prospects for the future and other future events. The forward-looking statements included in this release are made as of the date hereof or as of the date specified herein and are based on management's reasonable expectations and beliefs. Such statements are subject to a number of important assumptions, risks, uncertainties and other factors that may cause actual results or performance to differ materially from that described in or indicated by the forward-looking statements, including that:
The foregoing risks should be read in conjunction with the Company's filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors”, in its most recent Annual Report on Form 10-K and subsequent SEC filings, for a discussion of these and other risks and uncertainties. In addition, the business outlook discussed in this release does not include the impact of any business combinations, acquisitions, divestitures, strategic investments and other significant transactions that may be completed after the date hereof, each of which may present material risks to the Company’s future business and financial results.
Except as required by law, the Company expressly disclaims any obligation or undertaking to update any forward-looking statements to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
GENTHERM INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Product revenues | $ | 332,962 | $ | 243,384 | $ | 861,334 | $ | 797,924 | ||||||||
| Cost of sales | 252,610 | 173,997 | 657,492 | 561,655 | ||||||||||||
| Gross margin | 80,352 | 69,387 | 203,842 | 236,269 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Net research and development expenses | 22,666 | 20,590 | 62,425 | 56,420 | ||||||||||||
| Selling, general and administrative expenses | 34,859 | 27,344 | 96,109 | 83,093 | ||||||||||||
| Restructuring expenses | 6 | 749 | 561 | 3,631 | ||||||||||||
| Total operating expenses | 57,531 | 48,683 | 159,095 | 143,144 | ||||||||||||
| Operating income | 22,821 | 20,704 | 44,747 | 93,125 | ||||||||||||
| Interest expense, net | 714 | (515 | ) | (1,285 | ) | (2,184 | ) | |||||||||
| Foreign currency (loss) gain | (8,285 | ) | 133 | (1,516 | ) | 391 | ||||||||||
| Other income | 361 | 10 | 698 | 13 | ||||||||||||
| Earnings before income tax | 15,611 | 20,332 | 42,644 | 91,345 | ||||||||||||
| Income tax expense | 5,784 | 4,646 | 13,998 | 17,959 | ||||||||||||
| Net income | $ | 9,827 | $ | 15,686 | $ | 28,646 | $ | 73,386 | ||||||||
| Basic earnings per share | $ | 0.30 | $ | 0.47 | $ | 0.87 | $ | 2.22 | ||||||||
| Diluted earnings per share | $ | 0.29 | $ | 0.47 | $ | 0.86 | $ | 2.19 | ||||||||
| Weighted average number of shares – basic | 33,162 | 33,178 | 33,106 | 33,075 | ||||||||||||
| Weighted average number of shares – diluted | 33,470 | 33,609 | 33,460 | 33,489 | ||||||||||||
GENTHERM INCORPORATED
REVENUE BY PRODUCT CATEGORY AND RECONCILIATION OF FOREIGN CURRENCY TRANSLATION IMPACT
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||
| Climate Control Seat | $ | 112,059 | $ | 89,991 | 24.5 | % | $ | 311,281 | $ | 297,393 | 4.7 | % | ||||||||||
| Seat Heaters | 75,568 | 61,516 | 22.8 | % | 210,367 | 208,101 | 1.1 | % | ||||||||||||||
| Steering Wheel Heaters | 31,482 | 24,578 | 28.1 | % | 89,169 | 80,139 | 11.3 | % | ||||||||||||||
| Automotive Cables | 18,338 | 19,465 | (5.8 | )% | 59,662 | 66,686 | (10.5 | )% | ||||||||||||||
| Battery Performance Solutions | 20,331 | 16,928 | 20.1 | % | 55,395 | 52,265 | 6.0 | % | ||||||||||||||
| Electronics | 12,083 | 11,567 | 4.5 | % | 33,190 | 41,324 | (19.7 | )% | ||||||||||||||
| Lumbar and Massage Comfort Solutions (a) | 22,740 | — | 100.0 | % | 22,740 | — | 100.0 | % | ||||||||||||||
| Valve System Technologies (a) | 18,542 | — | 100.0 | % | 18,542 | — | 100.0 | % | ||||||||||||||
| Other Automotive | 11,412 | 8,983 | 27.0 | % | 29,224 | 21,595 | 35.3 | % | ||||||||||||||
| Subtotal Automotive segment | 322,555 | 233,028 | 38.4 | % | 829,570 | 767,503 | 8.1 | % | ||||||||||||||
| Medical segment (b) | 10,407 | 10,356 | 0.5 | % | 31,764 | 30,421 | 4.4 | % | ||||||||||||||
| Total Company | $ | 332,962 | $ | 243,384 | 36.8 | % | $ | 861,334 | $ | 797,924 | 7.9 | % | ||||||||||
| Foreign currency translation impact (c) | (18,438 | ) | — | (38,609 | ) | — | ||||||||||||||||
| Total Company, excluding foreign currency translation impact | $ | 351,400 | $ | 243,384 | 44.4 | % | $ | 899,943 | $ | 797,924 | 12.8 | % | ||||||||||
| (a) Represents product revenues from Alfmeier since the acquisition date of August 1, 2022. | ||||||||||||||||||||||
| (b) Includes product revenues of $1,234 from Dacheng since the acquisition date of July 13, 2022. | ||||||||||||||||||||||
| (c) Foreign currency translation impacts for the Automotive segment and Medical segment were $(18,068) and $(370), respectively, for the three months ended September 30, 2022. | ||||||||||||||||||||||
GENTHERM INCORPORATED
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net income | $ | 9,827 | $ | 15,686 | $ | 28,646 | $ | 73,386 | ||||||||
| Add back: | ||||||||||||||||
| Depreciation and amortization | 11,774 | 9,859 | 30,259 | 29,182 | ||||||||||||
| Income tax expense | 5,784 | 4,646 | 13,998 | 17,959 | ||||||||||||
| Interest (income) expense, net (a) | (714 | ) | 515 | 1,285 | 2,184 | |||||||||||
| Adjustments: | ||||||||||||||||
| Restructuring expense | 6 | 749 | 561 | 3,631 | ||||||||||||
| Unrealized currency loss (gain) | 5,308 | (1,039 | ) | (1,032 | ) | (1,345 | ) | |||||||||
| Acquisition expenses (b) (c) | 11,349 | 65 | 18,357 | 1,023 | ||||||||||||
| Other | (157 | ) | — | (483 | ) | — | ||||||||||
| Adjusted EBITDA | $ | 43,177 | $ | 30,481 | $ | 91,591 | $ | 126,020 | ||||||||
| Product revenues | $ | 332,962 | $ | 243,384 | $ | 861,334 | $ | 797,924 | ||||||||
| Adjusted EBITDA % | 13.0 | % | 12.5 | % | 10.6 | % | 15.8 | % | ||||||||
| (a) Includes $3,191 and $2,498 of interest income for the three and nine months ended September 30, 2022, respectively, related to mark-to-market adjustment of our floating-to-fixed interest rate swap agreement with a notional amount of $100,000. | ||||||||||||||||
| (b) Includes realized foreign currency loss of $3,806 for the three and nine months ended September 30, 2022, related to foreign currency forward contracts used to hedge the foreign currency risk associated with the forecasted purchase of Alfmeier. | ||||||||||||||||
| (c) Includes compensation expense of $1,091 for the three and nine months ended September 30, 2022, related to accruals for Dacheng contingent payments that were negotiated with seller as part of the Dacheng acquisition. These contingent payments are expected to be paid upon the achievement of certain performance metrics and continued employment of the former majority shareholder of Dacheng. | ||||||||||||||||
Use of Non-GAAP Financial Measures
In addition to the results reported in accordance with GAAP throughout this release, the Company has provided here or elsewhere information regarding adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted EBITDA margin, adjusted earnings per share (“Adjusted earnings per share” or “Adjusted EPS”), free cash flow, Net Debt, organic revenue, revenue excluding acquired businesses and foreign currency translation, revenue excluding foreign currency translation, and gross margin rate excluding acquired businesses, each a non-GAAP financial measure. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, and other gains and losses not reflective of the Company’s ongoing operations and related tax effects including transaction expenses, debt retirement expenses, impairment of assets held for sale, gain or loss on sale of business, restructuring expense, unrealized currency gain or loss and unrealized revaluation of derivatives. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by product revenues. The Company defines Adjusted EPS as earnings adjusted by gains and losses not reflective of the Company’s ongoing operations and related tax effects including transaction expenses, debt retirement expenses, impairment of assets held for sale, gain or loss on sale of business, restructuring expense, unrealized currency gain or loss and unrealized revaluation of derivatives. The Company defines Free Cash Flow as Net cash (used in) provided by operating activities less Purchases of property and equipment. The Company defines Net Debt as the principal amount of all Consolidated Funded Indebtedness (as defined in the Credit Agreement) less cash and cash equivalents. The Company defines organic revenue as revenue, excluding revenue from acquired businesses. Note that in recent prior periods, the Company used organic revenue instead to be revenue excluding foreign currency translation (see below). The Company defines revenue excluding acquired businesses and foreign currency translation as revenue, excluding the revenue from acquired businesses and the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates. The Company defines revenue excluding foreign currency translation as revenue, excluding the estimated effects of foreign currency exchange on revenue by translating actual revenue using the prior period foreign currency exchange rates.
The Company’s reconciliations are included in this release or can be found in the supplemental materials furnished as Exhibit 99.2 to the Company’s Form 8-K dated November 2, 2022.
In evaluating its business, the Company considers and uses Free Cash Flow and Net Debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. Management provides such non-GAAP financial measures so that investors will have the same financial information that management uses with the belief that it will assist investors in properly assessing the Company's performance on a period-over-period basis by excluding matters not indicative of the Company’s ongoing operating or liquidity results. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur revenues, expenses, and cash and non-cash obligations that are the same as or similar to some of the adjustments in our presentation of non-GAAP financial measures. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. There also can be no assurance that we will not modify the presentation of our non-GAAP financial measures in the future, and any such modification may be material. Other companies in our industry may define and calculate these non-GAAP financial measures differently than we do and those calculations may not be comparable to our metrics. These non-GAAP measures have limitations as analytical tools, and when assessing the Company's operating performance or liquidity, investors should not consider these non-GAAP measures in isolation, or as a substitute for net income, revenue or other consolidated income statement or cash flow statement data prepared in accordance with GAAP.
Non-GAAP measures referenced in this release and other public communications may include estimates of future Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS. Such forward-looking non-GAAP measures may differ significantly from the corresponding GAAP measures, due to depreciation and amortization, tax expense, and/or interest expense, some or all of which management has not quantified for the future periods.
GENTHERM INCORPORATED
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net income | $ | 9,827 | $ | 15,686 | $ | 28,646 | $ | 73,386 | ||||||||
| Non-cash purchase accounting impact | 2,842 | 2,141 | 6,426 | 6,241 | ||||||||||||
| Restructuring expenses | 6 | 749 | 561 | 3,631 | ||||||||||||
| Unrealized currency loss (gain) | 5,308 | (1,039 | ) | (1,032 | ) | (1,345 | ) | |||||||||
| Acquisition expenses (a) (b) | 11,349 | 65 | 18,357 | 1,023 | ||||||||||||
| Other | (157 | ) | — | (483 | ) | — | ||||||||||
| Tax effect of above | (5,822 | ) | (566 | ) | (7,020 | ) | (2,557 | ) | ||||||||
| Adjusted net income | $ | 23,353 | $ | 17,036 | $ | 45,455 | $ | 80,379 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 33,162 | 33,178 | 33,106 | 33,075 | ||||||||||||
| Diluted | 33,470 | 33,609 | 33,460 | 33,489 | ||||||||||||
| Earnings per share, as reported: | ||||||||||||||||
| Basic | $ | 0.30 | $ | 0.47 | $ | 0.87 | $ | 2.22 | ||||||||
| Diluted | $ | 0.29 | $ | 0.47 | $ | 0.86 | $ | 2.19 | ||||||||
| Adjusted earnings per share: | ||||||||||||||||
| Basic | $ | 0.70 | $ | 0.51 | $ | 1.37 | $ | 2.43 | ||||||||
| Diluted | $ | 0.70 | $ | 0.51 | $ | 1.36 | $ | 2.40 | ||||||||
| (a) Includes realized foreign currency loss of $3,806 for the three and nine months ended September 30, 2022, related to foreign currency forward contracts used to hedge the foreign currency risk associated with the forecasted purchase of Alfmeier. | ||||||||||||||||
| (b) Includes compensation expense of $1,091 for the three and nine months ended September 30, 2022, related to accruals for Dacheng contingent payments that were negotiated with seller as part of the Dacheng acquisition. These contingent payments are expected to be paid upon the achievement of certain performance metrics and continued employment of the former majority shareholder of Dacheng. | ||||||||||||||||
GENTHERM INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
| September 30, 2022 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 139,163 | $ | 190,606 | ||||
| Accounts receivable, net | 248,570 | 182,987 | ||||||
| Inventory: | ||||||||
| Raw materials | 154,273 | 96,426 | ||||||
| Work in process | 17,157 | 9,495 | ||||||
| Finished goods | 62,465 | 53,556 | ||||||
| Inventory, net | 233,895 | 159,477 | ||||||
| Other current assets | 84,344 | 32,775 | ||||||
| Total current assets | 705,972 | 565,845 | ||||||
| Property and equipment, net | 228,056 | 155,270 | ||||||
| Goodwill | 125,273 | 66,033 | ||||||
| Other intangible assets, net | 68,639 | 37,554 | ||||||
| Operating lease right-of-use assets | 30,214 | 24,387 | ||||||
| Deferred income tax assets | 66,322 | 69,630 | ||||||
| Other non-current assets | 16,857 | 16,624 | ||||||
| Total assets | $ | 1,241,333 | $ | 935,343 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 208,338 | $ | 122,727 | ||||
| Current lease liabilities | 7,448 | 5,669 | ||||||
| Current maturities of long-term debt | 3,540 | 2,500 | ||||||
| Other current liabilities | 100,898 | 82,193 | ||||||
| Total current liabilities | 320,224 | 213,089 | ||||||
| Long-term debt, less current maturities | 232,000 | 36,250 | ||||||
| Non-current lease liabilities | 22,013 | 19,789 | ||||||
| Pension benefit obligation | 5,850 | 6,832 | ||||||
| Other non-current liabilities | 37,157 | 5,577 | ||||||
| Total liabilities | $ | 617,244 | $ | 281,537 | ||||
| Shareholders’ equity: | ||||||||
| Common Stock: | ||||||||
| No par value; 55,000,000 shares authorized 33,196,404 and 33,008,185 issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 119,801 | 118,646 | ||||||
| Paid-in capital | 5,477 | 5,866 | ||||||
| Accumulated other comprehensive loss | (96,051 | ) | (36,922 | ) | ||||
| Accumulated earnings | 594,862 | 566,216 | ||||||
| Total shareholders’ equity | 624,089 | 653,806 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,241,333 | $ | 935,343 | ||||
GENTHERM INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Operating Activities: | ||||||||
| Net income | $ | 28,646 | $ | 73,386 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 30,470 | 29,430 | ||||||
| Deferred income taxes | (1,207 | ) | 3,867 | |||||
| Non-cash stock based compensation | 3,383 | 11,760 | ||||||
| Loss on disposition of property and equipment | 620 | 638 | ||||||
| Other | 881 | (650 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable, net | (55,780 | ) | 26,162 | |||||
| Inventory | (48,930 | ) | (34,019 | ) | ||||
| Other assets | (10,868 | ) | 597 | |||||
| Accounts payable | 60,983 | 9,231 | ||||||
| Other liabilities | 4,759 | (3,296 | ) | |||||
| Net cash provided by operating activities | 12,957 | 117,106 | ||||||
| Investing Activities: | ||||||||
| Purchases of property and equipment | (25,737 | ) | (29,585 | ) | ||||
| Proceeds from the sale of property and equipment | 175 | 11 | ||||||
| Acquisition of businesses, net of cash acquired | (224,097 | ) | (2,827 | ) | ||||
| Proceeds from deferred purchase price of factored receivables | 2,168 | — | ||||||
| Cost of technology investments | (350 | ) | (7,557 | ) | ||||
| Net cash used in investing activities | (247,841 | ) | (39,958 | ) | ||||
| Financing Activities: | ||||||||
| Borrowings on debt | 207,000 | — | ||||||
| Repayments of debt | (11,559 | ) | (151,993 | ) | ||||
| Proceeds from the exercise of Common Stock options | 1,556 | 7,467 | ||||||
| Taxes withheld and paid on employees' share-based payment awards | (5,415 | ) | (3,991 | ) | ||||
| Acquisition contingent consideration payment | — | (69 | ) | |||||
| Net cash provided by (used in) financing activities | 191,582 | (148,586 | ) | |||||
| Foreign currency effect | (8,141 | ) | (1,821 | ) | ||||
| Net decrease in cash and cash equivalents | (51,443 | ) | (73,259 | ) | ||||
| Cash and cash equivalents at beginning of period | 190,606 | 268,345 | ||||||
| Cash and cash equivalents at end of period | $ | 139,163 | $ | 195,086 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for taxes | $ | 13,509 | $ | 12,348 | ||||
| Cash paid for interest | $ | 3,334 | $ | 1,823 | ||||