Net sales and operating loss in the company’s Assembly segment for the second quarter of 2014 were $38.6 million and $(3.1) million, respectively, compared with Assembly segment net sales and operating loss of $44.9 million and $(0.1) million, respectively, for the second quarter of 2013 and compared with Assembly segment net sales and operating loss of $42.6 million and $(3.9) million, respectively, for the quarter ended March 31, 2014. Sequentially, reduced demand in the industrial & instrumentation, computer and datacommunications, and military and aerospace end markets were partially offset by increased demand in the automotive and telecommunications end markets.

Cash and Working Capital

Cash and cash equivalents at June 30, 2014 were $76.5 million, compared with $54.7 million at December 31, 2013. Cash used by operating activities during the six months ended June 30, 2014, was $(13.3) million. The company’s cash cycle metric of 48.6 days at June 30, 2014 was longer than the company’s typical metric primarily as a result of i) an increasing mix of sales to customers with longer payment terms and ii) increased inventories purchased and manufactured to support higher demand from automotive and telecommunications customers. During the six months ended June 30, 2014, the company used approximately $24.4 million cash for interest payments and used a net of approximately $7.9 million cash for payment of income taxes.

During the six months ended June 30, 2014, the company used a net of approximately $23.5 million cash for investing activities. Capital expenditures during the six months ended June 30, 2014, were $27.7 million, of which $12.7 million were incurred during the most recent quarter. During the six months ended June 30, 2014, approximately $4.9 million of capital expenditures were incurred in connection with capacity expansion and other special projects, of which approximately $1.7 million was incurred during the most recent quarter. In May 2014, the company received an interim insurance settlement payment which included approximately $2.0 million related to property and equipment damaged in a 2012 fire in its Guangzhou, China printed circuit board factory.

During the six months ended June 30, 2014, financing activities provided a net of approximately $58.6 million cash, including approximately $62.5 million cash provided by net borrowings, approximately $(3.3) million cash used to pay financing fees, and approximately $(0.6) million cash used for withholding taxes related to net share settlements of vested stock compensation.

Use of Non-GAAP Financial Measures

In addition to the condensed consolidated financial statements presented in accordance with U.S. GAAP, management uses certain non-GAAP financial measures, including “Adjusted EBITDA” and “Adjusted EPS”.

Adjusted EBITDA is not a recognized financial measure under U.S. GAAP, and does not purport to be an alternative to operating income or an indicator of operating performance. Adjusted EBITDA is presented to enhance an understanding of operating results and is not intended to represent cash flows or results of operations. The Board of Directors, lenders and management use Adjusted EBITDA primarily as an additional measure of operating performance for matters including executive compensation and competitor comparisons. The use of this non-GAAP measure provides an indication of the company’s ability to service debt, and management considers it an appropriate measure to use because of the company’s leveraged position.

Adjusted EBITDA has certain material limitations, primarily due to the exclusion of certain amounts that are material to the company’s consolidated results of operations, such as interest expense, income tax expense, and depreciation and amortization. In addition, Adjusted EBITDA may differ from the Adjusted EBITDA calculations reported by other companies in the industry, limiting its usefulness as a comparative measure.

The company uses Adjusted EBITDA to provide meaningful supplemental information regarding operating performance and profitability by excluding from Adjusted EBITDA certain items that the company believes are not indicative of its ongoing operating results or will not impact future operating cash flows, which include restructuring and impairment charges, loss on early extinguishment of debt, stock compensation, costs associated with acquisitions and equity registrations, and other, net.

Adjusted EPS is not a recognized financial measure under U.S. GAAP, does not purport to be an indicator of the company’s financial performance, and might not be consistent with measures used by other companies. The company’s management believes this supplemental measure is useful in understanding underlying trends of the business and analyzing the effects of certain events that are infrequent or unusual for the company.

Adjusted EPS has certain material limitations, primarily due to the exclusion of certain amounts from earnings that are material to the company’s consolidated results of operations, such as costs associated with acquisitions and equity registrations, restructuring and impairment charges, certain interest and other expenses, and certain adjustments to net income to arrive at net income available to common stockholders. As a result, Adjusted EPS differs materially from the earnings per share calculations reported by other companies in the industry, limiting its usefulness as a comparative measure.

Investor Conference Call

Management will host a conference call to discuss the second quarter results at 4:30 p.m. Eastern Time today, August 5, 2014. The live webcast of the conference call will be available at http://investor.viasystems.com. The conference call will be available live to interested parties by dialing 1-877-640-9867 (toll-free). For international callers, please dial 1-914-495-8546.