Visteon Corporation (NYSE: VC)announced first-quarter 2016 results, reporting sales of $802 million and net income attributable to Visteon of $19 million, or $0.49 per diluted share. Adjusted EBITDA, a non-GAAP financial measure as defined below, was $89 million for the first quarter, compared with $78 million in the same period last year. Adjusted net income, a non-GAAP financial measure as defined below, was $47 million for the first quarter, or $1.22 per diluted share.

“Our strong financial results reflect the increasing desire of vehicle manufacturers to include our cockpit electronics technology in their vehicles, as well as solid cost performance across our global operations,” said Sachin Lawande, president and CEO. “We made progress aligning our engineering organization with our customers’ needs regionally and globally, while bringing more strategic focus to our research and development investment. We continue to leverage our position as the only Tier 1 automotive supplier exclusively focused on the rapidly growing automotive cockpit electronics segment.”

Cash used by operating activities in the first quarter, including discontinued operations, totaled $58 million. Adjusted free cash flow, a non-GAAP financial measure as defined below, was a use of $28 million for the first quarter.

First Quarter in Review

Visteon reported first-quarter sales of $802 million, a decrease of $14 million compared with the same quarter last year. The decrease is primarily related to the sale of the Germany interiors facility during the fourth quarter of 2015 and unfavorable currency, partially offset by higher production volumes and new business.

Electronics Product Group sales totaled $793 million, an increase of $12 million from the first quarter of 2015. On a regional basis, Asia accounted for 38 percent of sales, Europe 32 percent, North America 29 percent, and South America 1 percent.

Visteon gross margin for the first quarter of 2016 was $121 million, compared with $112 million a year earlier. Selling, general and administrative expenses were $56 million for the first quarter, compared with $58 million for the first quarter of 2015. The $9 million increase in gross margin reflected higher sales volume and new business impacts, partially offset by the impact of unfavorable currency.

Adjusted EBITDA for the Electronics Product Group was $94 million for the first quarter of 2016, compared with $84 million for the same quarter last year. The improvement was primarily driven by increased production volumes and new business, partially offset by unfavorable currency. Beginning in 2016, costs associated with the company’s corporate headquarters and other administrative support functions have been included with the Electronics Product Group for all comparative periods. Adjusted EBITDA for the Other operations was a loss of $5 million, compared with a loss of $6 million for the first quarter last year.

For the first quarter of 2016, the company reported net income attributable to Visteon of $19 million, or earnings per share of $0.49 per diluted share. First-quarter net income included a loss of $13 million from discontinued operations, net of tax and $15 million of restructuring, transformation, integration and related costs. Adjusted net income, which excludes these costs, was $47 million, or $1.22 per diluted share.

Through the first quarter of 2016, customers awarded Visteon new business wins amounting to $1.2 billion of lifetime revenue. Visteon’s ongoing backlog, defined as cumulative remaining life-of-program booked sales, was approximately $15.6 billion as of March 31, 2016, an increase of $0.4 billion since Dec. 31, 2015.

Pending Acquisition of AllGo Systems

On Jan. 12, 2016, Visteon announced it had signed an agreement to acquire AllGo Systems – a leading developer of embedded multimedia system solutions to global vehicle manufacturers – to add greater scale depth to Visteon’s infotainment software capabilities. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed during the second quarter of 2016.

Cash and Debt Balances

As of March 31, 2016, Visteon had global cash and equivalents totaling $808 million. During the first quarter of 2016, Visteon paid a special distribution to its shareholder of approximately $1.74 billion. This outflow was partially offset by a recovery of $356 million of withholding taxes related to the 2015 climate divestiture. Total debt as of March 31 was $382 million.

For the first quarter of 2016, cash from operations was a use of $58 million, capital expenditures were $25 million and adjusted free cash flow was a use of $28 million in the quarter. Cash flows included results related to discontinued operations.

Visteon had a use of $13 million of cash from operations related to Electronics Product Group costs. Electronics Product Group capital expenditures totaled $24 million, and adjusted free cash flow for the Electronics Product Group was a use of $22 million in the quarter.

Special Distribution to Shareholders and Share Repurchases

On Jan. 22, 2016, Visteon paid a special distribution of $43.40 per share of its common stock outstanding as of Jan. 15, 2016, or approximately $1.74 billion in the aggregate.

During the first quarter of 2016, Visteon purchased $105 million, or 1,607,849 shares, under the stock repurchase agreement entered in December 2015, complying with the provisions of Rule 10b5-1 and Rule 10b-18 under the Securities Exchange Act of 1934 (“10b5-1 Share Repurchase Program”). Additionally, during the first quarter of 2016, Visteon entered into an Accelerated Stock Buyback (ASB) with a third party to purchase shares of its common stock for a payment of $395 million and received 4,370,678 shares. This ASB is expected to be completed by Dec. 15, 2016. Visteon’s board of directors has authorized $500 million of share repurchase of its shares of common stock through Dec. 31, 2016, including the 10b5-1 Share Repurchase Program entered in 2015 and the ASB entered in 2016.

Since the June 9, 2015, Climate transaction, Visteon has substantially completed the return of approximately $2.75 billion to shareholders through 2015 and 2016 share repurchases and the January 2016 special distribution.

Full-Year 2016 Outlook

Visteon affirmed its full-year 2016 guidance for its key financial metrics. The company projects 2016 sales for the Electronics Product Group of $3.2 billion. Adjusted EBITDA for the Electronics Product Group is projected in the range of $305 million to $335 million. Adjusted free cash flow, as defined below, for the Electronics Product Group is projected in the range of $110 million to $150 million.