checkAd

     157  0 Kommentare CVG Reports Second Quarter 2023 Results

    Strong quarterly revenues of $262 million, up 4.5% year-over-year
    EPS of $0.30, adjusted EBITDA of $20.8 million or 7.9% of revenue
    Continued strategy execution and operational excellence driving improved results

    NEW ALBANY, Ohio, Aug. 01, 2023 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its second quarter ended June 30, 2023.

    Second Quarter 2023 Highlights (Compared with prior year, where comparisons are noted)

    • Revenues of $262.2 million, up 4.5% primarily driven by strong price realization.
    • Operating income of $15.9 million, up 156.0%; adjusted operating income of $16.7 million, up 106.2%. Improved operating income was driven primarily by improved pricing and cost management.
    • Net income of $10.1 million, or $0.30 per diluted share. Adjusted net income of $10.7 million, or $0.32 per diluted share.
    • Adjusted EBITDA of $20.8 million, up 67.7% with an adjusted EBITDA margin of 7.9%, tracking further towards the Company's long-term profitability target.
    • Net new business wins year-to-date are $124 million. The majority of the new business awards continue to be in the Electrical Systems segment.
    • Our cost reduction program continues to deliver cost savings through process improvements, footprint changes and organizational streamlining.

    Robert C. Griffin, Chairman of the Board and Interim President and Chief Executive Officer, said, "CVG delivered solid second quarter results and we continued to execute well on our long-term strategy. The team’s efforts to drive the Company’s strategic plan are delivering improved financial results, highlighted by strong improvements in revenue, operating income, adjusted EBITDA and free cash flow during the quarter. Additionally, I am pleased to report that our Electrical Systems plant expansions are on track and the Aldama, Mexico plant is open and ramping up production. We remain on track to deliver record revenues in 2023 and continue to expect our full year Adjusted EBITDA margins to show significant expansion versus last year, based on the current vehicle production outlook for the second half of the year. We also believe we continue to be on track to deliver our 2027 targets of $1.5 billion in revenue and 9% EBITDA margin.”

    Mr. Griffin concluded, “I would like to thank our team of employees who helped us improve CVG this quarter and continue to execute our strategy of growing and diversifying our revenue, optimizing our cost structure through process automation and cost reduction, and increasing our margins to become a bigger, more profitable company.”

    Andy Cheung, Chief Financial Officer, added, “The continued execution of our strategy is delivering improved financial results for CVG.   Our focus on winning new business, improved price realization and cost reduction has allowed us to continue to improve our margins and profit.   Additionally, we remain heavily focused on optimizing working capital, increasing cash flows, and paying down our debt.”

    Second Quarter Financial Results
    (amounts in millions except per share data and percentages)

      Second Quarter        
      2023   2022   $ Change   % Change
    Revenues $ 262.2     $ 250.8     $ 11.4   4.5 %
    Gross profit $ 38.4     $ 21.9     $ 16.5   75.3 %
    Gross margin   14.6 %     8.7 %        
    Adjusted gross profit1 $ 39.1     $ 23.3     $ 15.8   67.8 %
    Adjusted gross margin1   14.9 %     9.3 %        
    Operating income $ 15.9     $ 6.2     $ 9.7   156.5 %
    Operating margin   6.1 %     2.5 %        
    Adjusted operating income1 $ 16.7     $ 8.1     $ 8.6   106.2 %
    Adjusted operating margin1   6.4 %     3.2 %        
    Net income $ 10.1     $ 2.5     $ 7.6   304.0 %
    Adjusted net income1 $ 10.7     $ 4.3     $ 6.4   148.8 %
    Earnings per share, diluted $ 0.30     $ 0.08     $ 0.22   275.0 %
    Adjusted earnings per share, diluted1 $ 0.32     $ 0.13     $ 0.19   146.2 %
    Adjusted EBITDA1 $ 20.8     $ 12.4     $ 8.4   67.7 %
    Adjusted EBITDA margin1   7.9 %     4.9 %        
    1See Appendix A for GAAP to Non-GAAP reconciliation        

    Consolidated Results

    Second Quarter 2023 Results

    • Second quarter 2023 revenues were $262.2 million, compared to $250.8 million in the prior year period, an increase of 4.5%. The increase in revenues was primarily driven by increased pricing and volume from new Electrical Systems business, partially offset by lower volumes in the Industrial Automation segment. Foreign currency translation also favorably impacted second quarter 2023 revenues by $0.7 million, or 0.3%.
    • Operating income in the second quarter 2023 was $15.9 million compared to $6.2 million in the prior year period. The increase in operating income was attributable to higher margins, partially offset by higher SG&A. The second quarter 2023 adjusted operating income was $16.7 million, excluding special charges.
    • Interest associated with debt and other expenses was $2.8 million and $2.1 million for the second quarter 2023 and 2022, respectively.
    • Net income was $10.1 million, or $0.30 per diluted share, for the second quarter 2023 compared to net income of $2.5 million, or $0.08 per diluted share, in the prior year period.

    At June 30, 2023, the Company had $9.0 million of outstanding borrowings on its U.S. revolving credit facility and $4.1 million outstanding on its China credit facility, $42.4 million of cash and $148.1 million of availability from the credit facilities, resulting in total liquidity of $190.5 million.

    Second Quarter 2023 Segment Results

    Vehicle Solutions Segment

    • Revenues were $152.7 million compared to $142.8 million for the prior year period, an increase of 7.0%, primarily resulting from increased pricing.
    • Operating income was $14.1 million, compared to $1.5 million in the prior year period, an increase of 836.7%, primarily attributable to price increases with customers and cost reduction initiatives. Adjusted operating income was $14.5 million.

       Electrical Systems Segment

    • Revenues were $63.6 million compared to $47.3 million in the prior year period, an increase of 34.4%, primarily resulting from increased sales volume and pricing.
    • Operating income was $7.7 million compared to $5.9 million in the prior year period, an increase of 28.9%. The increase in operating income was primarily attributable to increased sales volume and pricing.

    Aftermarket & Accessories Segment

    • Revenues were $36.8 million compared to $32.2 million in the prior year period, an increase 14.5%, primarily resulting from increased pricing.
    • Operating income was $5.5 million compared to $1.1 million in the prior year period, an increase of 388.2%. The increase in operating income was primarily attributable to increased pricing and cost reduction.

    Industrial Automation Segment

    • Revenues were $9.0 million compared to $28.5 million in the prior year period, a decrease of 68.4%, primarily due to decreased customer demand which is expected to continue in the third quarter.
    • Operating loss was $2.1 million compared to operating income of $1.3 million in the prior year period. The decrease in operating income was primarily attributable to volume reduction and an inventory charge of $1.6 million. Adjusted operating loss was $1.7 million.

    2023 Demand Outlook

    According to ACT Research, 2023 North American Class 8 truck production levels are expected to be at 339,000 units and Class 5-7 production levels are expected to be at 258,000 units. Estimates from FTR for 2023 are 325,000 units, slightly lower than ACT Research for Class 8 truck builds. The 2022 actual Class 8 truck builds according to the ACT Research was 315,128 units.

    The global commercial and automotive vehicle wire harness market is growing at approximately 4.5%.​ The global electric truck market expected to grow approximately 15% CAGR.

    According to Interact Analysis, the Global Off-Highway vehicle market is expected to increase approximately 4% to 6.2 million units in 2023 from 5.9 million units in 2022. Beyond 2023, the Off-Highway vehicle market is expected to grow in the 4-5% range. We expect our legacy business growth rates to be in line with this outlook.

    Industry forecasts are expecting at least 4% growth in 2023 for North American aftermarket truck parts. Compounded annual growth of at least 4% is forecasted for 2023-2027​.

    GAAP to Non-GAAP Reconciliation

    A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release.

    Conference Call

    A conference call to discuss this press release is scheduled for Wednesday, August 2, 2023, at 10:00 a.m. ET. Management intends to reference the Q2 2023 Earnings Call Presentation during the conference call. To participate, dial (888) 259-6580 using conference code 34051647. International participants dial (416) 764-8624 using conference code 34051647.

    This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.cvgrp.com, where it will be archived for one year.

    A telephonic replay of the conference call will be available for a period of two weeks following the call. To access the replay, dial (877) 674-7070 using access code 051647 and international callers can dial (416) 764-8692 using access code 051647.

    Company Contact
    Andy Cheung
    Chief Financial Officer
    CVG
    IR@cvgrp.com

    Investor Relations Contact
    Ross Collins or Stephen Poe
    Alpha IR Group
    CVGI@alpha-ir.com

    About CVG

    At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.

    Forward-Looking Statements

    This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company’s prospects in the wire harness, warehouse automation and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.

    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    Three Months and Six Months Ended June 30, 2023 and 2022
    (Unaudited)
    (Amounts in thousands, except per share amounts)
     
      Three Months Ended   Six Months Ended
      June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
    Revenues $ 262,194   $ 250,849     $ 524,903   $ 495,223
    Cost of revenues   223,793     228,970       451,293     447,961
    Gross profit   38,401     21,879       73,610     47,262
    Selling, general and administrative expenses   22,457     15,652       43,022     32,651
    Operating income   15,944     6,227       30,588     14,611
    Other (income) expense   307     (167 )     105     874
    Interest expense   2,804     2,118       5,694     4,079
    Loss on extinguishment of debt       921           921
    Income before provision for income taxes   12,833     3,355       24,789     8,737
    Provision for income taxes   2,693     870       5,949     2,270
    Net income $ 10,140   $ 2,485     $ 18,840   $ 6,467
    Earnings per Common Share:              
    Basic $ 0.31   $ 0.08     $ 0.57   $ 0.20
    Diluted $ 0.30   $ 0.08     $ 0.57   $ 0.20
    Weighted average shares outstanding:              
    Basic   33,051     32,237       32,960     32,152
    Diluted   33,429     33,039       33,312     33,009


    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Amounts in thousands, except per share amounts)
     
    ASSETS June 30, 2023   December 31,
    2022
    Current assets:      
    Cash $ 42,441     $ 31,825  
    Accounts receivable, net   173,461       152,626  
    Inventories   131,695       142,542  
    Other current assets   22,180       12,582  
    Total current assets   369,777       339,575  
    Property, plant and equipment, net   70,371       67,805  
    Intangible assets, net   12,924       14,620  
    Deferred income taxes   11,004       12,275  
    Other assets, net   36,414       35,993  
    Total assets $ 500,490     $ 470,268  
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Current liabilities:      
    Accounts payable $ 106,310     $ 122,091  
    Accrued liabilities and other   54,680       42,809  
    Current portion of long-term debt and short-term debt   17,260       10,938  
    Total current liabilities   178,250       175,838  
    Long-term debt   143,943       141,499  
    Pension and other post-retirement benefits   8,780       8,428  
    Other long-term liabilities   25,757       24,463  
    Total liabilities $ 356,730     $ 350,228  
    Stockholders’ equity:      
    Preferred stock $     $  
    Common stock   330       328  
    Treasury stock   (15,302 )     (14,514 )
    Additional paid-in capital   262,897       261,371  
    Retained deficit   (76,755 )     (95,595 )
    Accumulated other comprehensive loss   (27,410 )     (31,550 )
    Total stockholders’ equity   143,760       120,040  
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 500,490     $ 470,268  


    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    BUSINESS SEGMENT FINANCIAL INFORMATION
    (Unaudited)
    (Amounts in thousands)
     
      Three Months Ended June 30,
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket and
    Accessories
      Industrial
    Automation
      Corporate/Other   Total
      2023   2022   2023   2022   2023   2022   2023   2022   2023   2022   2023   2022
    Revenues $ 152,730   $ 142,785   $ 63,625   $ 47,345   $ 36,829   $ 32,172   $ 9,010     $ 28,547   $     $     $ 262,194   $ 250,849
    Gross profit   20,904     8,912     10,345     7,245     7,788     2,867     (636 )     2,855                 38,401     21,879
    Selling, general & administrative expenses   6,769     7,403     2,686     1,303     2,262     1,735     1,425       1,547     9,315       3,664       22,457     15,652
    Operating income (loss) $ 14,135   $ 1,509   $ 7,659   $ 5,942   $ 5,526   $ 1,132   $ (2,061 )   $ 1,308   $ (9,315 )   $ (3,664 )   $ 15,944   $ 6,227


      Six Months Ended June 30,
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket and
    Accessories
      Industrial
    Automation
      Corporate/Other   Total
      2023   2022   2023   2022   2023   2022   2023
      2022   2023
      2022
      2023   2022
    Revenues $ 313,315   $ 282,941   $ 118,373   $ 87,222   $ 74,458   $ 62,387   $ 18,757     $ 62,673   $     $     $ 524,903   $ 495,223
    Gross profit   40,374     21,817     18,643     10,647     15,015     6,952     (422 )     7,846                 73,610     47,262
    Selling, general & administrative expenses   12,847     13,990     4,914     2,942     3,913     3,199     2,501       2,871     18,847       9,649       43,022     32,651
    Operating income (loss) $ 27,527   $ 7,827   $ 13,729   $ 7,705   $ 11,102   $ 3,753   $ (2,923 )   $ 4,975   $ (18,847 )   $ (9,649 )   $ 30,588   $ 14,611


    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    Appendix A: Reconciliation of GAAP to Non-GAAP Financial Measures
    (Unaudited)
    (Amounts in thousands, except per share amounts and percentages)
           
      Three Months Ended   Six Months Ended
      June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
    Gross profit $ 38,401     $ 21,879     $ 73,610     $ 47,262  
    Restructuring   683       1,455       1,373       2,349  
    Adjusted gross profit $ 39,084     $ 23,334     $ 74,983     $ 49,611  
    % of revenues   14.9 %     9.3 %     14.3 %     10.0 %


      Three Months Ended   Six Months Ended
      June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
    Operating income (loss) $ 15,944     $ 6,227     $ 30,588     $ 14,611  
    Restructuring   718       1,751       1,431       2,740  
    Deferred consideration purchase accounting         119             238  
    Total operating income adjustments   718       1,870       1,431       2,978  
    Adjusted operating income $ 16,662     $ 8,097     $ 32,019     $ 17,589  
    % of revenues   6.4 %     3.2 %     6.1 %     3.6 %


      Three Months Ended   Six Months Ended
      June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
    Net income $ 10,140     $ 2,485     $ 18,840     $ 6,467  
    Operating income adjustments   718       1,870       1,431       2,978  
    Loss on extinguishment of debt         921             921  
    Hryvnia fair value adjustments on forward exchange contracts         (424 )           251  
    Adjusted provision for income taxes1   (180 )     (592 )     (358 )     (1,038 )
    Adjusted net income $ 10,678     $ 4,260     $ 19,913     $ 9,579  
                   
    Diluted EPS $ 0.30     $ 0.08     $ 0.57     $ 0.20  
    Adjustments to diluted EPS $ 0.02     $ 0.05     $ 0.03     $ 0.09  
    Adjusted diluted EPS $ 0.32     $ 0.13     $ 0.60     $ 0.29  
    1. Reported Tax Provision adjusted for tax effect of special charges at 25%
      Three Months Ended   Six Months Ended
      June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
    Net income $ 10,140     $ 2,485     $ 18,840     $ 6,467  
    Interest expense   2,804       2,118       5,694       4,079  
    Provision for income taxes   2,693       870       5,949       2,270  
    Depreciation expense   3,547       3,719       6,977       7,294  
    Amortization expense   864       855       1,696       1,712  
    EBITDA $ 20,048     $ 10,047     $ 39,156     $ 21,822  
    % of revenues   7.6 %     4.0 %     7.5 %     4.4 %
                   
    EBITDA adjustments              
    Restructuring $ 718     $ 1,751     $ 1,431     $ 2,740  
    Deferred consideration purchase accounting         119             238  
    Loss on extinguishment of debt         921             921  
    Hryvnia fair value adjustments on forward exchange contracts         (424 )           251  
    Adjusted EBITDA $ 20,766     $ 12,414     $ 40,587     $ 25,972  
    % of revenues   7.9 %     4.9 %     7.7 %     5.2 %


      Three Months Ended June 30, 2023
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket
    and
    Accessories
      Industrial
    Automation
      Corporate/
    Other
      Total
    Operating income (loss) $ 14,135     $ 7,659     $ 5,526     $ (2,061 )   $ (9,315 )   $ 15,944  
    Restructuring   340                   378             718  
    Adjusted operating income (loss) $ 14,475     $ 7,659     $ 5,526     $ (1,683 )   $ (9,315 )   $ 16,662  
    % of revenues   9.5 %     12.0 %     15.0 %     (18.7 )%         6.4 %


      Six Months Ended June 30, 2023
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket
    and
    Accessories
      Industrial
    Automation
      Corporate/
    Other
      Total
    Operating income (loss) $ 27,527     $ 13,729     $ 11,102     $ (2,923 )   $ (18,847 )   $ 30,588  
    Restructuring   423       8             1,000             1,431  
    Adjusted operating income (loss) $ 27,950     $ 13,737     $ 11,102     $ (1,923 )   $ (18,847 )   $ 32,019  
    % of revenues   8.9 %     11.6 %     14.9 %     (10.3 )%         6.1 %


      Three Months Ended June 30, 2022
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket
    and
    Accessories
      Industrial
    Automation
      Corporate/
    Other
      Total
    Operating income (loss) $ 1,509     $ 5,942     $ 1,132     $ 1,308     $ (3,664 )   $ 6,227  
    Restructuring         571       560       314       306     $ 1,751  
    Deferred consideration purchase accounting                     119             119  
    Adjusted operating income (loss) $ 1,509     $ 6,513     $ 1,692     $ 1,741     $ (3,358 )   $ 8,097  
    % of revenues   1.1 %     13.8 %     5.3 %     6.1 %         3.2 %


      Six Months Ended June 30, 2022
      Vehicle
    Solutions
      Electrical
    Systems
      Aftermarket
    and
    Accessories
      Industrial
    Automation
      Corporate/
    Other
      Total
    Operating income (loss) $ 7,827     $ 7,705     $ 3,753     $ 4,975     $ (9,649 )   $ 14,611  
    Restructuring   204       571       995       664       306       2,740  
    Deferred consideration purchase accounting                     238             238  
    Adjusted operating income (loss) $ 8,031     $ 8,276     $ 4,748     $ 5,877     $ (9,343 )   $ 17,589  
    % of revenues   2.8 %     9.5 %     7.6 %     9.4 %         3.6 %

    Use of Non-GAAP Measures

    This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, engage in financial and operational planning and to determine incentive compensation.

    Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on the Company’s financial and operating results and in comparing the Company’s performance to that of its competitors and to comparable reporting periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

    The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.

     





    globenewswire
    0 Follower
    Autor folgen

    Verfasst von globenewswire
    CVG Reports Second Quarter 2023 Results Strong quarterly revenues of $262 million, up 4.5% year-over-yearEPS of $0.30, adjusted EBITDA of $20.8 million or 7.9% of revenueContinued strategy execution and operational excellence driving improved results NEW ALBANY, Ohio, Aug. 01, 2023 …