Q4 2020 Horizon Global Corp Earnings Call
[music].
Good morning, everyone and welcome to a horizon Global's fourth quarter, 2000, and 'twenty conference call.
My name is Andrea and I will be your operator for today's call.
All participants will be in a listen only mode until we reached a question and answer session of the conference call.
This call is being recorded at the request of Horizon Global.
If anyone has any objections you may disconnect at any time.
I would now like to introduce Mr. Jeff <unk> with Lambert IR Horizon Global's Investor relations for them.
Mr. Chaika you May proceed.
Thank you operator, good morning, and welcome to Horizon, Global's fourth quarter, and full year, 2020 conference call and webcast on the call today are Terry Gohl Horizon, Global's, Chief Executive Officer, and Dennis Richard Bell Horizon, Global's, Chief a chief financial Officer.
Earlier this morning, we announced our fourth quarter 2020 results. The release is available on many new sites as well as and the Investor Relations section of our website at Horizon Global Dotcom.
Turning to slide two today's presentation also includes non-GAAP disclosures. These disclosures are reconciled to GAAP and the appendices to a quarterly press release and presentation.
Both of which are available on the Investor Relations section of a website at horizon Global Dot com.
Turning to slide three I'd like to remind you that statements in today's presentation will include our views about horizon Global's future performance, which constitute forward looking statements. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward looking statements. We've.
Scribe, these risks and uncertainties and a risk factors and other disclosures and the company's most recent annual report on form 10-K quarterly reports on form 10-Q, and other filings with the Securities and Exchange Commission with all that being said I would like to turn the call over to Horizon Global's, Chief Executive Officer, Terry Gohl.
And Jerry.
Thank you, Jeff and welcome to all of you who are participating in our call today for.
First on behalf of the complete horizon global team and will probably present, our fourth quarter and full year 2000, and 'twenty results.
And last quarter's earning call. We described the momentum that we were experiencing as the company as we sprang back from the second quarter impact of the global COVID-19 pandemic.
As a as we reflect on our performance and the fourth quarter and full year 2020, our theme can be summed up in these two words.
And on track.
2020, as you all know was a challenging one.
It's hard to believe that it's been a full year since the global pandemic enveloped us all and we we're all faced with many new challenges that were brought from it.
Challenges without the clarity a historical countermeasures, a roadmaps to follow to lead us through it.
Across the spectrum from our customers to our suppliers and to our incredible work force, we should take pause and reflect on the incredible achievements and advancements we all have made and our industry, while being on the forefront of the development and implementation of Covid specific operational protocols that protect our employees as well.
Those and the communities we serve.
While allowing us to continue to advance our businesses.
And it's off to all of you.
We at Horizon and adapted we defined our plan and we are extremely pleased to say that we remained on track.
And on track with a rate of change plans tied to addressing our company's weaknesses and on track with our objectives tied to ensuring horizon global's position as the number one supplier of choice for our customers.
The number one customer of choice for a great suppliers and the number one employee a choice for our outstanding employees around the globe.
What we will present, a day will reinforce that.
And we are excited to provide an in depth look at our 2000 and 'twenty performance as well as providing an early look at several indicators that reflect continued momentum in 2021.
Turning to page five.
During our third quarter call, we presented a significant rate of change and improvements for our financial and operational metrics across the board.
And today's presentation, we are presenting similar rate of change improvements, resulting from the tremendous effort and focus of our team.
Keeping with a theme today, we want to ensure that you understand that these results represent what we had planned for and that they reflect only the initial step and a multi year turnaround plan. We developed for the company at the tail end of 2019.
These numbers, while representing outstanding rate of improvement from your prior simply reflect the impact of the initial steps we have taken throughout the company.
Actions, including but not limited to organizational structure talent and enhancements and optimization to best in class business process deployments across several targeted areas to operational excellence and continuous improvement methods and actions deployed across the board.
In 2020, we set the foundation for the company that we expected to achieve.
Simply put we remain on track.
Looking forward on this page you will see the breadth of actions, we set for the company to achieve and 2020.
The green checks reflect action complete status showing that we were not deterred with a from our objectives. In spite of the COVID-19, pandemic and a multitude of unprecedented challenges that came along with it during 2020.
And I won't go into all of these items line by line, they're there for your review, but please recognize that behind every one of these headlined actions are hundreds of sub actions that make up the work plan for each macro objective.
Please recognize that we focused on eliminating waste throughout our company with a principal focus being on our operational performance both on manufacturing and distribution.
Our initial focus when it came to these improvements was addressing the state of the business in North America.
We chose to go big and to execute a plan that would position horizon not only as an acceptable supplier to our combined channel, but to transform our business to present us as the top tier supplier against the most stringent standards.
Those standards assigned by our OEM customers.
Mission accomplished as we continuously improved our ratings and now have plants that we would stack up against anyone.
Recent customer I a T F audit results have been excellent and position us for further business opportunities as we move forward.
Simply put we achieved a planned actions and then some we remained on track.
Turning to page six how.
How did we perform and the fourth quarter and the full year 2020.
As we look at the margin performance during the period, you will see as you did and the third quarter dramatic year over year improvements as we recognize the value of improvement actions taken throughout the course of the year.
Net sales for the fourth quarter at 175.9 billion represented a 23, 6% improvement from the prior year net.
Net sales for both regions were up for the quarter with Americas, leading the way with an increase of 34, 3% and Europe Africa up 12, 6% Dennis will provide further details of this and his comments to follow.
Our adjusted EBIT performance of $7 3 million for the fourth quarter was $23 8 million or 1000, and 580 basis points better than the fourth quarter of 2019.
Again, this was bolstered by positive sales volume and the impact of continuous improvement actions across all aspects of our business.
Our 2020 full year adjusted EBITDA, a $26 4 million also represents a significant improvement from the prior year with this key financial metric being up 34, $34 7 million or a 520 basis points better than 2019.
Please note that this was accomplished despite a full.
Full year lower sales, a $29 3 million with the most severe sales declines concentrated at the end of the first quarter and continuing through the second quarter, a 2020 due to the COVID-19 impacted production schedules.
Fourth quarter operating loss of $800000 was significantly better than 2019.
For this measure.
2000, and 320 basis points, better, yes, 2000, and 320 basis points better.
The full year operating loss of $6 9 million, while significantly better than the prior year by 50.3 million represents the heavy impact of the COVID-19 reduced volumes experienced earlier in the year.
When it came to cash flow and liquidity and the team continued to perform extremely well.
The company generated $39 1 million a cash from operations for the year and an improvement of a staggering 107.6 million from 2019.
Our culture and methods changed under this management team during 2020.
We are focused on cash generation and operate accordingly.
We have improved our working capital metrics, all while ensuring that we continue to invest and our operations and a new business.
Overall, while the rate of change for the quarter and for the year was impressive. It was basically on track to a one year plan regarding regardless of Covid.
Performance in the back half of the year highlight the impact of our continuous improvement actions and increased market demand and our increase in market share.
Please turn to play seven.
And this slide will continue to highlight two fundamentals of our American sales.
In this case, we are reflecting the year over year unit sales increases seen for a core backbone products and North America.
Our aftermarket hitches and a brake controller portfolio.
As you can see we are capitalized and the operational improvements implemented throughout 2020 to support accelerating market demand and to secure a conquest volume from our competitors.
Relative to our aftermarket hits portfolio, we increased unit sales performance by 59% and the fourth quarter compared to prior year.
Even more impressive was a 93 per cent increase in December 2020, compared to December 2019.
And exceptional result, but there is more to follow as you will see and our order intake as we exited 2020.
With substantial booked orders to be filled in 2021.
This product line and carry a significant opportunities for us and we're in the process of implementing manufacturing investments to increase capacity even further.
A second but equally important core product is there a brake controller line.
Investments made and operational improvements implemented throughout 2000, and 2020 are continuing to pay off for us in terms of unit sales.
Q4 sales were up 44% from 2019, including a 51% year over year improvement in December 2020 versus December 2019.
This product line was impacted more heavily during COVID-19 shutdown period due to its high concentration of OEM volume at that time.
We have and will continue to expand this product line and add capacity during quarter, one and quarter two of 2021.
While these two product lines are highlight please note that we are increasing our production capacity for many other fabricated products made in North America.
As you should see we're going on the offensive relative to capitalizing on our transformation across our entire product line.
We expect to maximize our capacities of our plants to meet market demand and a to ensure product availability for our branded products.
Market fundamentals for these products remained positive.
For both aftermarket and OEM channels, increasing towing and cargo management and accessories into their portfolio.
While the RV business is booming OE and general consumer demand continues to rise.
<unk> style accessorizing to support travel and leisure continues at a torrid pace and that.
Outdoor activities and recreational activities continue to drive demand.
Sales of bikes, a T v's watercrafts, along with camping accessories sales are all leading to increased demand for our products. This is not showing any signs of slowing down soon.
The OEM production plans continue to be focused on pickups, and Suvs and this remains a strong indicator a tolling and accessory demand for the future.
Favorability for our products and greater level and as demand away from a historical sensitivities impacted and seasonality of RV sector will certainly result.
Infrastructure and construction remains strong and it has a potential to accelerate with potential federal investments.
This will be supportive of OEM vehicles, a man and the individual business owner supporting these and infrastructure initiatives to drive continuation of Accessorizing with our products.
Turning to page eight.
And this page we continue with a theme of operational efficiency.
We introduced a side last quarter as it represented a significant focus for us in terms of sales velocity improvement.
And to a multitude of actions taken.
Instead of a unit sales increase for hitches and brake control is represented on the prior slide as well as our portfolio management optimization actions described and prior releases and you can see that through these actions we are increasing our efficiency throughout our distribution sites in North America.
We've improved our sales value per unit sold by 45 per cent for June through December 2020.
Versus prior year this.
This includes and 85% improvement for a December 2020 versus December 2019.
Well, we don't control market demand or mix, we do control what products, we bring to the market and the volumes of those products that we present to the marketplace. This strategy continues to yield positive results for the company.
Turning to page nine.
Here, we are presenting and alternative view of performance on a year over year comparative basis.
Putting that into perspective.
Covid shutdown periods of July through December 2020, we increased our sales by 17, 9% over the same period and 2019.
While converting on those sales with a 220% increase and our adjusted EBITDA performance compared to the same period and 2019.
The market continues to respond favorably to the company and our actions with demonstrated confidence via increased order intake volume across both the Americas, and the Europe and Africa regions, including both the aftermarket and the OEM sales channels in both regions.
Note that the Americas.
And our pursuit of breaking through the double digit margin performance was achieved and the fourth quarter.
Right the seasonality of the business. This is a good start.
Further this point, please turn to page 10.
And this chart, we depict our gross sales versus open orders that were in place at the end of each month ending in December 2020 in North America as compared to 2019.
As you can see during the fourth quarter, we had monthly secured or not yet to be filled well above prior year levels.
Balances increased each month throughout the quarter from $30 million to $50 million in December.
December was 79% better than the prior year for this measure.
Our customers continue to exhibit confidence and our company and our brands with increasing orders and equally important sustainability of those borders.
As noted earlier, we have taken measures to increase our capacity and we'll continue with new capacity increase measures and support of our customers and the furtherance of our strategic plan.
Take a look at the 50 million balance at the end of December and the actual sales in January of 2020.
Significant indication of the strength of the market and the outlook for demand going into 2021 again, good signs across the board.
On page 11, we highlight the recent action taken relative to successfully refinancing our debt.
We exited 2020 with positive tail winds and performance so with that backdrop, we decided to opportunistically investigate our debt refinancing options.
Following a competitive process or a new financing partner Atlantic Park came out on top with attractive terms that addressed our existing term loan and provided committed financing to address our convertible notes and.
We were able to secure a $225 million facility with favorable conditions and rates.
$100 million was applied to address our term loan with a $125 million being retained under a delayed draw facility to address our converts in the future.
A nominal 25 basis point ticking fee applied to the committed delayed draw funds.
We secured a rate of LIBOR, plus 750 with a covenant light structure that provides operational flexibility as we continue to execute our strategic plan.
As part of the agreement with Atlantic parked a company issued $3 9 million warrants and an extra day exercise price of $9. This as well highlight significant confidence.
A company.
We thank Matt banana and the entire Atlantic team for their investment we appreciate your confidence and support.
I'll now turn it over to Dennis for the financial section before returning with some closing comments and early indicators for 2021.
Thank you Terry.
Everyone and thank you for joining us.
Echo Terry's comments, we are pleased with the fourth quarter and full year results. Despite the macro impact of COVID-19, the efforts of the horizon global team and contributed to positive financial results.
We are continuing to work diligently to ensure a continues as we focus on earnings growth liquidity and working capital management.
I would like to thank everyone for their contributions and dedication.
Please turn to slide 11 for an update on a refinancing.
And as Terry discussed on February 2nd a successfully refinanced our existing term loan by entering into a new credit agreement with Atlantic Park for a six year 225 million dollar term loan facility.
Alone included and initial commitment of $100 million.
Each was fully borrowed at the time of the agreement and used to repay all the outstanding borrowings and accrued interest on the company's existing term loan.
The new term loan also provides for a $125 million delayed draw facility.
The company can borrow.
To repay our outstanding convertible notes.
The reduced interest rate is LIBOR, plus 750 basis points subject to a 1% LIBOR floor.
The delayed draw facility has a 25 basis point ticking fee on the Undrawn portion and.
A new term loan and also provides for flexible financial covenants, including a 27 5 million dollar capital expenditure covenant and a net leverage ratio covenant with the initial net leverage ratio test commencing with a quarter ending March 31.
2023.
The new term loan and is further evidence of the company's opportunistic approach and provides for a financial flexibility and long term stability to the capital structure to support the company's strategic initiatives.
Please turn to slide 12 for a review of the company's consolidated results for the fourth quarter of 2020.
As a reminder, all results will be on a continuing operations basis.
As a result of the company's sale of its APAC segment and a third quarter 2019, APAC is classified as discontinued operations for all periods presented and horizon Global financial statements. Therefore are not included and the discussion ongoing results.
For the fourth quarter of 2020 consolidated net sales were $175 $9 million.
And increase of $33 $6 million.
For 23, 6%.
For the fourth quarter a 2019.
The increase was primarily attributable to $24 $7 million, a higher net sales and the American segment, but both operating segments reported net sales increases for the corner.
We reported an operating loss, a point $8 million and improvement of $32 $9 million over the fourth quarter a 2019.
Increased gross profit as a result of increased net sales, coupled with manufacturing and operating efficiencies and seven $4 million of SG&A savings drove the favorability and a quarter.
We reported adjusted EBITDA of $7 $3 million, which is in any and increase of $23 $8 million over the fourth quarter a 2019.
Higher adjusted EBITDA was primarily due.
For both the increase in gross profit and favorable SG&A previously mentioned.
Consolidated adjusted EBITDA margin increased to four 2% as compared to a.
A negative margin of 11, 6% and the fourth quarter a 2019.
Now, let's turn to slide 13 for a review of the segment performance for the quarter.
Yeah.
Net sales and the Americans were $96 $8 million $24.7 million or 34, 3% higher than the fourth quarter a 2019.
We reported strong demand and volume across virtually all of the American sales channels.
The net sales increase was primarily driven by $13 $3 million, a higher net sales and the aftermarket channel as well as a $7.5 million combined increase and the retail and ecommerce channels.
Automotive OEM and Oes net sales also increased $2 $1 million.
We reported operating profit of $8 $6 million and the America segment.
<unk>, two and operating loss of $16 $2 million for the fourth quarter a 2019.
The increase in operating profit was primarily driven by higher gross profit and the quarter from the increased sales volumes and manufacturing efficiencies across the segment.
As well as a reduction and inventory scrap and reserves compared to the fourth quarter a 2019.
We also recognized $8 $6 million, a favorable SG&A, which contributed to the operating profit improvement.
Adjusted EBITDA increased to $10 $9 million as compared to and adjusted EBITDA loss.
A $5 $6 million for the fourth quarter a 2019.
Based on the strong operating results previously mentioned.
Adjusted EBITDA margin increased to 11, 3% as compared to a negative margin a 7.7% for the fourth quarter of 2019.
Transitioning to our Europe Africa operating segment.
Net sales increased to $79 $1 million up $8 $9 million or a 12, 6% compared to the fourth quarter a 2019.
This increase was primarily due to $5 $9 million.
Of combined higher net sales and the automotive OEM and Oes sales channels and $3 $1 million increase and the aftermarket sales channel.
We reported an operating loss of $2.4 million compared to an operating loss of $12.2 million for the fourth quarter 2019.
The improvement was driven by a $9 $2 million increase in gross profit primarily attributable to the higher net sales as well as the lower material and labor efficiencies.
Adjusted EBITDA increased to $2 $5 million as compared to an adjusted EBITDA loss, a $5 $9 million from a fourth quarter a 2019.
Adjusted EBITDA margin increased to three 1% as.
As compared to a negative margin of eight 4%.
For the fourth quarter a 2019.
Turning to slide four we show the full year consolidated results.
Consolidated net sales were $661 $2 million a.
A decrease of $29 $3 million or for 2% from the prior year.
Yeah.
Our net sales were impacted by the COVID-19 pandemic that began.
Late in the first quarter and significantly impacted the company.
During the second quarter.
With business disruption and economic uncertainties and all of our end markets.
The net sales decrease from a prior year was primarily attributable to $38 8 million.
Millions of dollars of lower net sales and our Europe Africa segment.
Which included a decrease of $37 $3 million and a second quarter a 2020.
The consolidated net <unk>.
Sales decrease for the year and was partially offset by an increase and net sales and the Americas segment of $9 $7 million over the prior year. Despite a $34 8 million dollar decrease and net sales during the second quarter, a 2020, a period most significantly impacted by the pandemic.
Nick.
Yeah.
We reported an operating loss of $6 $9 million.
And improvement of $53 million over the prior year.
This improvement was driven by a higher gross profit.
Of $24 $3 million, despite the impact of COVID-19 on net sales and the first half of the year as well as $26 $8 million a global SG&A improvement.
Adjusted EBITDA for 2020.
Was $26 $4 million, which is $34 $7 million higher and the adjusted EBITDA loss of $8 $3 million for 2019.
Consolidated eight.
Consolidated adjusted EBITDA margin increased two 4% as compared to a negative margin of one 2% from the prior year.
Now, let's turn to slide 15 for a review of a full year segment performance.
Net sales and the Americans were 382 $4 million.
$9 $7 million higher than the prior year.
Despite the previously mentioned COVID-19 impacts.
Combined net sales and the aftermarket and ecommerce channels for $25 $9 million higher than the prior year.
This increase was partially offset.
By combined $15 $7 million decrease and the automotive OEM and retail channels.
We reported an operating profit of $28 million compared to an operating loss of $10.4 million from a prior year a.
A higher operating profit was primarily driven by $24 $2 million of higher gross profit.
For the full year.
Doing and a large part to the implementation of operational improvement initiatives across the segment as well as $13 $6 million of SG&A savings.
Adjusted EBITDA for 2020 increased to $38 $4 million as compared to $8 $4 million for 2019.
Adjusted EBITDA margin increased to 10, 1% as compared to two 3% for the prior year.
Transitioning to our Europe Africa operating segment net sales decreased $38 $8 million or 12, 2% to $278 $9 million compared to the prior year.
This decrease was primarily due to lower volumes and the automotive OEM automotive Oems and industrial sales channels.
Representing a decrease of $46 million and the aggregate.
Salting from lost production days due to plant closures and economic uncertainties related to.
To the COVID-19 pandemic.
Which primarily impacted the second quarter.
Partially offsetting the lower net sales and these channels was $3 $6 million, a higher net sales and the aftermarket sales channel.
Yeah.
We reported an operating loss of $8 $4 million.
And to an operating loss of $12 $1 million from a prior year.
The improved operating margin was primarily attributable to a higher gross profit and the period as well as $5 million of lower SG&A.
Adjusted EBITDA for 2020 was $8 $7 million and increase of $5 $9 million over the prior year.
Adjusted EBITDA margin increased three 1% as compared to 0.9% from the prior year.
Now moving onto our working capital and liquidity and free cash flow a position on slide 16.
Total trade working capital was $55 6 million, which represented a decrease of $34 million compared to the fourth quarter a 2020.
And a decrease of $11 million compared to the end of the third quarter of 2020.
Specifically receivables increased $15.7 million for $87.4 million from the and other prior year.
Day sales outstanding was 46, which is consistent with the end of the prior year.
Inventory decreased $21.3 million to $115 $3 million from the end of the prior year day.
On hand inventory was 74 days a decrease of 20 days from the end of the prior year.
The company focused on its inventory management during 2020 and a reported results demonstrate these efforts.
Accounts payable increased $21.1 million to $99.5 million from the end of the prior year.
Days payable is on hand was 64 days and an increase a 10 days from the end of the prior year.
Cash and availability or liquidity totaled $83 $4 million at the end of 2020.
Which was comprised of $38 $4 million, a availability under our credit facilities and cash on hand, a $45 million.
This reflects a $38 5 million dollar improvement over a year and 2019.
Free cash flow totaled $25 $8 million.
For 2020, which is $104 million higher from the prior year.
Free cash flow for the fourth quarter, a 2020 was $9 $7 million, which is a $13 6 million dollar improvement from the fourth quarter a 2019.
The improvement in free cash flow for both periods, a significant and demonstrates.
Our focus on working capital management, and overall strong financial results for the company.
Yeah.
Turning to slide 17 for a review of our debt and capital structure.
Total gross debt increased by $25 $2 million from $249 million at the end of 2019 to $266 $1 million at at year end 2020.
This was primarily due to increased borrowings during the first and second quarter, a 2020 to strengthen liquidity and response to the COVID-19 pandemic.
As a note at a time of our refinancing.
Of a new term loan on February 2nd of 2021 gross debt was $280 million.
Which represents an increase of $14 million on a pro forma basis.
From the end of the fourth quarter a 2020.
The initial borrowings on a new term loan.
Was used to repay the existing term loan and accrued interest and other related expenses.
Moving on to debt maturities on slide 18.
Our February 2021 refinancing allowed the company to address its near term maturities and.
And a cost effective manner with the nearest maturity being our convertible notes due Q3 a 2022.
We believe the extended runway towards a company the ability to execute on its long term strategic plans.
Overall, our financial results for 2020 demonstrate what was in many ways a successful with a challenging year as we completed the first full year under the new leadership team, while navigating through the COVID-19 pandemic.
Our operational improvement initiatives helped drive a positive financial results.
During the year and provided the market confidence and led to the successful refinancing of our term loan.
We remain focused on earnings growth liquidity and continued working capital management to ensure that the cash flow from operations support the liquidity needs for the business.
We look forward to continuing the momentum in 2020 one.
With that I will turn it back over to Terry for his closing comments.
Thanks, Dennis and thank you and your team for driving meaningful meaningful improvements throughout the finance organization and processes throughout 2020, great job and again. Thank you.
Turning to page 19.
To provide some insight into 2021, we look again at our two key products and North America, hitches and brake controllers.
Relative to hitches, we are showing here a total picture inclusive of aftermarket and OEM performance.
Through February year to date, and 2021, and our sales are up 19% for this product line and and increasing to 29% in February and comparison to the same period and 2020.
We are truly capitalizing on the capacity increases we implemented along with the strength of the market and demand for our products.
Add to this our order intake increases through the period, which has resulted in an increase in orders to be filled of 21% from January to February this results and a strong outlook for this product.
Relative to brake controllers, our sales show a similar story.
Year to day through February sales were up 30% with February alone being up 35% as compared to the same period and 2020.
New OEM platform launch volume increases, coupled with and increased market penetration and the aftermarket channel are providing a solid foundation for this product going forward.
We have a solid order book associated with a brake controllers and we expect a further capitalize on that demand.
With increased capacity is being introduced during Q1 and.
And Q2 this year and.
Bit of a good news.
On page 20, you'll see our top level initiatives for 2021 day.
With a broad and lean a bit more to our European operations and customers all while continuing the foundation built and the action set during 2020 in the Americas.
We have already been active and successful early this year and execution of our plans regarding refinancing commercial initiatives and organizational strengthening and our European operations.
We have won significant new business and Europe aligned with our targets as.
As we move forward through the year, we will focus on further optimization and performance and our logistics worldwide.
As well as our production capacity in both Europe Africa, and North America.
We expect to leverage our capacity enhancements to further our vertical integration were accretive and to further our capacities and market position beyond our base strategic plan.
We will begin to assess certain accretive bolt on acquisitions and organic expansions or collaborations to support it.
We also expect to advance our capabilities through advanced business, ERP and warehouse management systems to be deployed in North America.
We have a solid plan and will continue to be on track to achieve it.
Finishing on page 21, we leave you with these metrics.
For the fourth quarter.
Liquidity better than prior year by $38 5 million.
Adjusted EBITDA better than prior year by $23 8 million.
Operating profit better than prior year by $32 9 million and sales better than prior year at $33 6 million.
For the full year cash flow from operations better than prior year by 107 6 million and.
Adjusted EBITDA better than prior year by $34 7 million.
And operating profit better than 2019 by $53 million.
All of this with a major pandemic occurring in 2020.
As a final note the strength of our sales order book and North America, We continued to highlight positive market and customer demand for our products and brands. Our sales are up 7% year over year through February 2021 in spite a material constraints tied to global electronics and with port constraints scene and Q4.
2000, and 'twenty and into 2021.
We have taken actions tied to addressing these constraints with only act a re time our book sales. Thanks to great work by our purchasing logistics and manufacturing teams. We are seeing improvements to both of these issues entering March.
The final note and.
Is that a order intake for lastly through February 2021 resulted in open orders to be filled at 104% greater than what was in place and February of 2020.
A significant indicator of the strength of the market and demands another great sign and we sincerely appreciate a great customers around the globe.
In conclusion.
We are on track to our plan and as you heard today, we are just getting started.
Thank you and and I'll turn it back for the operator for questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
And if you are using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Thank you at this time, we have no further questions I would now like to turn the conference over to Mr. Terry Gohl for closing remarks.
Well given no questions. Let me say, thanks again for joining the call today and that and we look forward to speaking with you very shortly again as we present, our first quarter results for 2021 and with that have a great day and thank you.
Yes.
Yes.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
Yes.
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