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GENTHERM Gentherm Reports 2021 Third Quarter Results October 28 , 2021 Automotive Revenue Continued to Significantly Outperform Light Vehicle Production Secured $ 260 Million in New Automotive Awards Updates 2021 Guidance NORTHVILLE , Mich . , Oct. 28 , 2021 ( GLOBE NEWSWIRE ) -- Gentherm ( NASDAQ : THRM ) , a global market leader of innovative thermal management technologies , today announced its financial results for the third quarter ended September 30 , 2021 . Third Quarter Highlights • Product revenues of $ 243.4 million decreased 6.2 % from $ 259.5 million in the 2020 third quarter ● Excluding the impact of foreign currency translation , product revenues decreased 7.3 % year over year • GAAP diluted earnings per share was $ 0.47 as compared to $ 0.73 in the prior - year period ● Adjusted earnings per share ( see table herein ) was $ 0.51 as compared to $ 0.91 in the prior - year period • Secured automotive new business awards totaling $ 260 million Phil Eyler , the Company's President and CEO , said " I am proud of the team for their strong execution in the third quarter , despite the unprecedented global supply chain disruption and production volatility . In Automotive , we continued to significantly outperform light vehicle production in the key markets we serve and secured $ 260 million of new awards from auto makers around the world . Importantly , 40 % of these awards are for electric vehicles . In Medical , we are gaining market share with strong demand for Blanketrol® . I am especially pleased that we increased cash flow from operations by over 40 % in the third quarter compared to the same period last year . " " While supply disruptions and production volatilities will remain challenging in the foreseeable future , our relentless focus on operational execution , innovation and cash flow generation position us well to continue to drive shareholder value over the long term , " continued Eyler . 2021 Third Quarter Financial Review Product revenues of $ 243.4 million decreased $ 16.2 million , or 6.2 % , in the third quarter of 2021 as compared to the prior - year period . Excluding the impact of foreign currency translation , product revenues decreased 7.3 % year over year . Automotive revenues decreased 6.7 % year over year , as decreases in Climate Control Seat ( CCS® ) , Seat Heaters and Electronics offset revenue increases in all other product categories . Adjusting for foreign currency translation , organic Automotive revenues decreased 7.8 % year over year . According to IHS Markit , actual light vehicle production decreased by 22.6 % when compared to the third quarter of 2020 in the Company's key markets of North America , Europe , China , Japan and Korea . Gentherm Medical revenue increased 5.9 % year over year , primarily due to higher Blanketrol® and Hemotherm sales . See the " Revenue by Product Category " table included below for additional detail . The gross margin rate decreased to 28.5 % in the current - year period versus 31.8 % in the prior - year period , primarily as a result of the negative impact from industry - wide supply chain disruptions , annual customer price reductions as well as wage and material inflation . These were partially offset by cost recoveries from customers and supplier cost reductions . Net research and development expenses of $ 20.6 million in the third quarter of 2021 increased $ 2.5 million , or 13.9 % , year over year as the company increased investments in ClimateSenseTM and battery performance solutions , partially offset by higher R & D reimbursement . Selling , general and administrative expenses of $ 27.3 million in the third quarter of 2021 increased $ 1.6 million , or 6.2 % , versus the prior - year period . The year - over - year increase was primarily driven by the absence of temporary COVID - 19 cost reduction measures that were taken by the Company in the third quarter of 2020 . Restructuring expenses for the third quarter of 2021 were $ 0.7 million , as compared to $ 0.3 million incurred in the prior - year period , as a result of the restructuring plan to improve the Company's manufacturing productivity and rationalize its footprint . As described more fully in the table included below , " Reconciliation of Net Income to Adjusted EBITDA , " the Company recorded Adjusted EBITDA of $ 30.5 million during the third quarter of 2021 compared to $ 50.1 million in the prior year , a year - over - year decrease of $ 19.7 million or 39.2 % . Income tax expense in the 2021 third quarter was $ 4.6 million , as compared with $ 9.6 million in the prior - year period . The effective tax rate was 22.9 % for the current - year quarter . GAAP diluted earnings per share for the third quarter of 2021 was $ 0.47 compared with $ 0.73 for the prior - year period . Adjusted diluted earnings per share , excluding non - cash purchase accounting impact , unrealized currency gain , restructuring expenses and other impacts ( see table herein ) , was $ 0.51 . Adjusted diluted earnings per share in the prior - year period was $ 0.91 . Guidance The Company is updating its full - year 2021 guidance that was last provided on September 14 , 2021 :