Tenneco Inc. (TEN) stock prices were up by 11.56% shortly after the market opened for trading on June 3rd, 2021, bringing the price per share up to USD$20.51 early on in the trading day.
Financial reports for the first quarter of the fiscal year 2021 period ended March 31st, 2021 indicated total revenues of USD$4.7 billion being generated. This represents a 23% year-over-year increase from the total revenue reported for the same time period of the prior year. Value-add revenue for the first quarter of fiscal 2021 jumped to USD$3.6 billion, indicating a 13% year-over-year increase as compared to the prior-year quarter. Value-add revenue for Q1 2021 excludes positive currency impact that amounted to USD$104 million.
Net Income Breakdown
The first quarter of the fiscal year 2021 saw a net income of USD$65 million being generated, which represents a net income of USD$0.79 per diluted share. This is a massive improvement from the USD$839 million net loss reported for the same quarter of the prior year, representing a devastating USD$10.34 net loss per diluted share. Adjusted net income for 2021 comes out to USD$90 million, which represents a net income of USD$1.09 per diluted share.
EBIT for the first quarter of fiscal 2021 was reported at USD$204 million, a massive correction of the USD$845 million loss reported for Q1 2021. EBIT as a percentage of revenue was up to 4.3%, up from the negative 22% reported in the prior-year quarter. Net leverage ratio improved by 0.4x as a result of seasonally better cash flow for the first quarter of fiscal 2021 as compared to reports from December 31st, 2020.
Solid Liquidity Position
Over the course of the first quarter of the fiscal year 2021, TEN reported successful refinancing to extend debt maturities in the amount of USD$800 million. This move will see the debt maturing in 2029 instead of the previous deadline of 2024, thus enhancing the company’s maturity profile and increasing financial flexibility. TEN reported having a solid liquidity position of USD$2.1 billion as of March 31st, 2021, with no balance drawn on the existing USD$1.5 billion revolving credit facility.
Future Outlook for TEN
Armed with a solid liquidity position, TEN is poised to continue its trajectory of success in light of the astounding improvements reported in the most recent quarterly reports as compared to reports of the prior-year quarter. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.