CVG (NASDAQ: CVGI), a diversified industrial products and services
company, today announced financial results for its second quarter
ended June 30, 2024.
Second Quarter
2024 Highlights (Compared with
prior year, where comparisons are noted)
- Revenues of $229.9
million, down 12.3%, due primarily to a global softening in
customer demand.
- Operating income of
$0.8 million, down 95.2%; adjusted operating income of $5.7
million, down 65.9%. The decrease in operating income was driven
primarily by lower sales volumes, partially offset by reduced
SG&A.
- New business wins
in the quarter of approximately $32 million when fully ramped,
bringing the year-to-date total to $80 million; these wins were
concentrated in our Electrical Systems segment, and includes
meaningful wins in our Vehicle Solutions segment.
- Net loss of $1.6
million, or $(0.05) per diluted share and adjusted net income of
$2.1 million, or $0.06 per diluted share, compared to net income of
$10.1 million, or $0.30 per diluted share and adjusted net income
of $10.7 million, or $0.32 per diluted share.
- Adjusted EBITDA of
$10.0 million, down 51.9%, with an adjusted EBITDA margin of 4.3%,
down from 7.9%.
James Ray, President and Chief Executive
Officer, said, “CVG continues to drive its strategic
transformation, despite second quarter results that were challenged
due to multiple factors. In particular, we witnessed continued
softening in the construction and agricultural end markets and
reduced volumes in our new business win launches, impacting our key
growth segment in Electrical Systems. We also experienced
operational inefficiencies in our Vehicle Solutions segment
resulting from a new product launch with a major customer across
multiple sites as well as activities to prepare our Cab Structures
Business for sale. We made incremental investments in both internal
and external support teams deployed to the affected facilities and
expect to achieve more stability during the balance of the year.
These market dynamics and operational activities weighed on second
quarter profitability. While we are disappointed with our second
quarter performance, we are taking proactive steps to right-size
our cost structure and improve operational execution as we navigate
a lower demand environment.”
Mr. Ray concluded, “Despite these challenges in
the second quarter, we continue to position CVG for future success.
We maintained our strong track record of procuring new business
wins in the quarter and recently announced the sale of our Cab
Structures Business, that is expected to close in the second half
of 2024, which will serve to further streamline our product
portfolio and aligns with our transformation strategy to reduce
cyclicality, balance customer concentration, and strengthen our
Vehicle Solutions business. We expect the trend of OEM’s insourcing
components of their cab manufacturing to continue, so monetizing
the facility now will create value for shareholders and will allow
us to redeploy capital in key areas to improve our operating model.
Strategic actions like this one, combined with our ongoing cost
reduction and business optimization efforts, are expected to
position CVG to benefit from the anticipated improvement in market
conditions.”
Andy Cheung, Chief Financial Officer, added, “We
are taking swift action to respond to the end market and
operational challenges through restructuring and headcount
reduction efforts to improve profitability. We’ve incurred $6.8
million in restructuring expenses year-to-date and have reduced our
headcount by more than 10%. Additionally, we have made progress on
the strategic evaluation of our Industrial Automation segment,
which we believe will culminate in the third quarter of this year
and is reflected in our guidance. We are adjusting our annual
guidance ranges for fiscal year 2024 to reflect current market
trends to include the deterioration in global construction and
agriculture markets, and we are providing an adjusted version of
the updated guidance for the Cab Structures and Industrial
Automation businesses. Following closing, we anticipate that the
majority of the disposition proceeds will support debt paydown as
we further strengthen our balance sheet.”
Second Quarter Financial
Results(amounts in millions except per share data and
percentages)
|
Second Quarter |
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
Revenues |
$ |
229.9 |
|
|
$ |
262.2 |
|
|
$ |
(32.3 |
) |
|
(12.3 |
)% |
Gross profit |
$ |
21.0 |
|
|
$ |
38.4 |
|
|
$ |
(17.4 |
) |
|
(45.3 |
)% |
Gross margin |
|
9.1 |
% |
|
|
14.6 |
% |
|
|
|
|
Adjusted gross profit 1 |
$ |
25.6 |
|
|
$ |
39.1 |
|
|
$ |
(13.5 |
) |
|
(34.5 |
)% |
Adjusted gross margin 1 |
|
11.1 |
% |
|
|
14.9 |
% |
|
|
|
|
Operating income |
$ |
0.8 |
|
|
$ |
15.9 |
|
|
$ |
(15.1 |
) |
|
(95.0 |
)% |
Operating margin |
|
0.3 |
% |
|
|
6.1 |
% |
|
|
|
|
Adjusted operating income
1 |
$ |
5.7 |
|
|
$ |
16.7 |
|
|
$ |
(11.0 |
) |
|
(65.9 |
)% |
Adjusted operating margin 1 |
|
2.5 |
% |
|
|
6.4 |
% |
|
|
|
|
Net income (loss) |
$ |
(1.6 |
) |
|
$ |
10.1 |
|
|
$ |
(11.7 |
) |
|
(115.8 |
)% |
Adjusted net income 1 |
$ |
2.1 |
|
|
$ |
10.7 |
|
|
$ |
(8.6 |
) |
|
(80.4 |
)% |
Earnings (loss) per share,
diluted |
$ |
(0.05 |
) |
|
$ |
0.30 |
|
|
$ |
(0.35 |
) |
|
(116.7 |
)% |
Adjusted earnings per share, diluted 1 |
$ |
0.06 |
|
|
$ |
0.32 |
|
|
$ |
(0.26 |
) |
|
(81.3 |
)% |
Adjusted EBITDA 1 |
$ |
10.0 |
|
|
$ |
20.8 |
|
|
$ |
(10.8 |
) |
|
(51.9 |
)% |
Adjusted EBITDA margin 1 |
|
4.3 |
% |
|
|
7.9 |
% |
|
|
|
|
1 See Appendix A
for GAAP to Non-GAAP reconciliation |
|
|
|
|
|
|
|
|
|
Consolidated Results
Second Quarter 2024 Results
- Second quarter 2024
revenues were $229.9 million, compared to $262.2 million in the
prior year period, a decrease of 12.3%. The overall decrease in
revenues was due to a softening in customer demand impacting all
segments and the wind-down of certain programs in our Vehicle
Solutions segment.
- Operating income in
the second quarter 2024 was $0.8 million compared to $15.9 million
in the prior year period. The decrease in operating income was
attributable to the impact of lower sales volumes, operational
inefficiencies and increased restructuring charges. Second quarter
2024 adjusted operating income was $5.7 million, compared to $16.7
million in the prior year period.
- Interest associated
with debt and other expenses was $2.5 million and $2.8 million for
the second quarter 2024 and 2023, respectively.
- Net loss was $1.6
million, or $(0.05) per diluted share, for the second quarter 2024
compared to net income of $10.1 million, or $0.30 per diluted
share, in the prior year period.
On June 30, 2024, the Company had $7.0
million of outstanding borrowings on its U.S. revolving credit
facility and no outstanding borrowings on its China credit
facility, $39.3 million of cash and $152.9
million of availability from the credit facilities, resulting
in total liquidity of $192.2 million.
Second Quarter 2024 Segment
Results
Vehicle Solutions Segment
- Revenues were
$140.9 million compared to $152.7 million for the prior year
period, a decrease of 7.7%, due to lower customer demand and the
wind-down of certain operations.
- Operating income
was $5.1 million, compared to $14.1 million in the prior year
period, a decrease of 64.1%, primarily attributable to lower
customer demand, operational remediation investments, and increased
freight costs partially offset by lower SG&A. Second quarter
2024 adjusted operating income was $8.3 million compared to $14.5
million in the prior year period.
Electrical Systems Segment
- Revenues were $50.2
million compared to $63.6 million in the prior year period, a
decrease of 21.2%, primarily due to a global softening in the
Construction & Agriculture end-markets and the phase out of
certain lower margin business.
- Operating income
was $0.5 million compared to $7.7 million in the prior year period,
a decrease of 93.4%. The decrease in operating income was primarily
attributable to lower customer demand, restructuring costs, labor
inflation, and unfavorable foreign exchange impacts. Second quarter
2024 adjusted operating income was $1.9 million compared to $7.7
million in the prior year period.
Aftermarket & Accessories
Segment
- Revenues were $33.9
million compared to $36.8 million in the prior year period, a
decrease of 8.1%, primarily as a result of lower sales volume due
to decreased customer demand and the reduction of backlog in the
prior period.
- Operating income
was $4.5 million compared to $5.5 million in the prior year period,
a decrease of 19.4%. The decrease in operating income was primarily
attributable to lower sales volumes, product mix and higher labor
and benefit costs. Second quarter 2024 adjusted operating income
was $4.7 million compared to $5.5 million in the prior year
period.
Industrial Automation
Segment
- Revenues were $5.0
million compared to $9.0 million in the prior year period, a
decrease of 44.6%, as a result of lower sales volume due to
decreased customer demand.
- Operating loss was
$1.0 million, compared to $2.1 million in the prior year period.
The decrease in operating loss was primarily attributable to
benefits from recently implemented restructuring programs. Second
quarter 2024 adjusted operating loss was $0.9 million, compared to
$1.7 million in the prior year period.
Outlook
CVG issued the following outlook for the full
year 2024 which reflects both market developments and pending
strategic portfolio actions:
Metric |
Prior 2024 Outlook |
Revised 2024 Outlook |
AdjustedRevised 2024 Outlook
(1) |
Net Sales |
$915 - $1,015 |
$900 - $960 |
$730 - $780 |
Adjusted EBITDA |
$60 - $73 |
$42 - $52 |
$28 - $36 |
(1) This Adjusted
Revised outlook excludes any contribution from CVG’s Cab Structures
or Industrial Automation businesses in 2024. On July 31, 2024, CVG
signed an asset purchase agreement for the sale of the Cab
Structures business with closing expected in the second half of
2024. Separately, CVG is currently exploring strategic alternatives
for the Industrial Automation business.
This outlook reflects, among others, current
industry forecasts for North America Class 8 truck builds.
According to ACT Research, 2024 North American Class 8 truck
production levels are expected to be at 308,000 units. The 2023
actual Class 8 truck builds according to the ACT Research was
340,247 units.
Agriculture and construction market conditions
have deteriorated relative to our prior update in March 2024. Based
on industry data, we now project segments within global agriculture
market demand to be down 15% to 20% and construction market demand
to be down 10% to 15% in 2024.
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 Tuesday, August 6, 2024, at 8:30 a.m. ET.
Management intends to reference the Q2 2024 Earnings Call
Presentation during the conference call. To participate, dial (800)
549-8228 using conference code 11335. International participants
dial (289) 819-1520 using conference code 11335.
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 (+1) 888 660 6264 using access code
11335#.
Company ContactAndy CheungChief
Financial OfficerCVGIR@cvgrp.com
Investor Relations ContactRoss
Collins or Stephen PoeAlpha IR GroupCVGI@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 closing of the recently announced sale of its Cab
Structures Business, 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 and agricultural 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.
Other Information
Throughout this document, certain numbers in the
tables or elsewhere may not sum due to rounding. Rounding may have
also impacted the presentation of certain year-on-year percentage
changes.
COMMERCIAL VEHICLE GROUP, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONSThree Months and Six
Months Ended June 30,
2024 and
2023(Unaudited)(Amounts
in thousands, except per share amounts) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Revenues |
$ |
229,906 |
|
|
$ |
262,194 |
|
|
$ |
461,974 |
|
|
$ |
524,903 |
|
Cost of
revenues |
|
208,927 |
|
|
|
223,793 |
|
|
|
414,330 |
|
|
|
451,293 |
|
Gross profit |
|
20,979 |
|
|
|
38,401 |
|
|
|
47,644 |
|
|
|
73,610 |
|
Selling,
general and administrative expenses |
|
20,219 |
|
|
|
22,457 |
|
|
|
40,312 |
|
|
|
43,022 |
|
Operating income |
|
760 |
|
|
|
15,944 |
|
|
|
7,332 |
|
|
|
30,588 |
|
Other
expense |
|
207 |
|
|
|
307 |
|
|
|
419 |
|
|
|
105 |
|
Interest
expense |
|
2,488 |
|
|
|
2,804 |
|
|
|
4,739 |
|
|
|
5,694 |
|
Income (loss) before provision for income taxes |
|
(1,935 |
) |
|
|
12,833 |
|
|
|
2,174 |
|
|
|
24,789 |
|
Provision (benefit) for income taxes |
|
(334 |
) |
|
|
2,693 |
|
|
|
836 |
|
|
|
5,949 |
|
Net
income (loss) |
$ |
(1,601 |
) |
|
$ |
10,140 |
|
|
$ |
1,338 |
|
|
$ |
18,840 |
|
Earnings (loss) per Common
Share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
0.31 |
|
|
$ |
0.04 |
|
|
$ |
0.57 |
|
Diluted |
$ |
(0.05 |
) |
|
$ |
0.30 |
|
|
$ |
0.04 |
|
|
$ |
0.57 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
33,393 |
|
|
|
33,051 |
|
|
|
33,359 |
|
|
|
32,960 |
|
Diluted |
|
33,393 |
|
|
|
33,429 |
|
|
|
33,834 |
|
|
|
33,312 |
|
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)(Amounts in
thousands, except per share amounts) |
|
ASSETS |
June 30, 2024 |
|
December 31, 2023 |
Current
assets: |
|
|
|
Cash |
$ |
39,341 |
|
|
$ |
37,848 |
|
Accounts receivable, net |
|
138,689 |
|
|
|
133,949 |
|
Inventories |
|
132,556 |
|
|
|
128,082 |
|
Other current assets |
|
35,634 |
|
|
|
27,863 |
|
Total current assets |
|
346,220 |
|
|
|
327,742 |
|
Property, plant and equipment, net |
|
75,530 |
|
|
|
73,468 |
|
Intangible assets, net |
|
7,743 |
|
|
|
11,222 |
|
Deferred
income taxes |
|
34,158 |
|
|
|
33,568 |
|
Other
assets, net |
|
39,545 |
|
|
|
37,214 |
|
Total assets |
$ |
503,196 |
|
|
$ |
483,214 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
100,810 |
|
|
$ |
77,314 |
|
Accrued liabilities and other |
|
49,557 |
|
|
|
52,562 |
|
Current portion of long-term debt and short-term debt |
|
17,500 |
|
|
|
15,313 |
|
Total current liabilities |
|
167,867 |
|
|
|
145,189 |
|
Long-term debt |
|
124,458 |
|
|
|
126,201 |
|
Pension
and other post-retirement benefits |
|
9,593 |
|
|
|
9,196 |
|
Other
long-term liabilities |
|
31,671 |
|
|
|
29,696 |
|
Total liabilities |
$ |
333,589 |
|
|
$ |
310,282 |
|
Stockholders’ equity: |
|
|
|
Preferred stock |
$ |
— |
|
|
$ |
— |
|
Common stock |
|
334 |
|
|
|
333 |
|
Treasury stock |
|
(16,170 |
) |
|
|
(16,150 |
) |
Additional paid-in capital |
|
267,230 |
|
|
|
265,217 |
|
Retained deficit |
|
(44,846 |
) |
|
|
(46,184 |
) |
Accumulated other comprehensive loss |
|
(36,941 |
) |
|
|
(30,284 |
) |
Total stockholders’ equity |
|
169,607 |
|
|
|
172,932 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
503,196 |
|
|
$ |
483,214 |
|
COMMERCIAL VEHICLE GROUP, INC. AND
SUBSIDIARIESBUSINESS SEGMENT FINANCIAL
INFORMATION(Unaudited)(Amounts in
thousands) |
|
|
Three Months Ended June 30, |
|
Vehicle Solutions |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Industrial Automation |
|
Corporate/Other |
|
Total |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
Revenues |
$ |
140,904 |
|
$ |
152,730 |
|
$ |
50,152 |
|
$ |
63,625 |
|
$ |
33,860 |
|
$ |
36,829 |
|
$ |
4,990 |
|
|
$ |
9,010 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
229,906 |
|
$ |
262,194 |
Gross
profit (loss) |
|
11,557 |
|
|
20,904 |
|
|
3,167 |
|
|
10,345 |
|
|
6,447 |
|
|
7,788 |
|
|
(192 |
) |
|
|
(636 |
) |
|
|
— |
|
|
|
— |
|
|
|
20,979 |
|
|
38,401 |
Selling,
general & administrative expenses |
|
6,480 |
|
|
6,769 |
|
|
2,660 |
|
|
2,686 |
|
|
1,993 |
|
|
2,262 |
|
|
823 |
|
|
|
1,425 |
|
|
|
8,263 |
|
|
|
9,315 |
|
|
|
20,219 |
|
|
22,457 |
Operating income (loss) |
$ |
5,077 |
|
$ |
14,135 |
|
$ |
507 |
|
$ |
7,659 |
|
$ |
4,454 |
|
$ |
5,526 |
|
$ |
(1,015 |
) |
|
$ |
(2,061 |
) |
|
$ |
(8,263 |
) |
|
$ |
(9,315 |
) |
|
$ |
760 |
|
$ |
15,944 |
|
Six Months Ended June 30, |
|
Vehicle Solutions |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Industrial Automation |
|
Corporate/Other |
|
Total |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
Revenues |
$ |
278,814 |
|
$ |
313,315 |
|
$ |
105,947 |
|
$ |
118,373 |
|
$ |
67,921 |
|
$ |
74,458 |
|
$ |
9,292 |
|
|
$ |
18,757 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
461,974 |
|
$ |
524,903 |
Gross
profit (loss) |
|
27,785 |
|
|
40,374 |
|
|
7,721 |
|
|
18,643 |
|
|
12,886 |
|
|
15,015 |
|
|
(748 |
) |
|
|
(422 |
) |
|
|
— |
|
|
|
— |
|
|
|
47,644 |
|
|
73,610 |
Selling,
general & administrative expenses |
|
12,357 |
|
|
12,847 |
|
|
5,202 |
|
|
4,914 |
|
|
3,900 |
|
|
3,913 |
|
|
2,262 |
|
|
|
2,501 |
|
|
|
16,591 |
|
|
|
18,847 |
|
|
|
40,312 |
|
|
43,022 |
Operating income (loss) |
$ |
15,428 |
|
$ |
27,527 |
|
$ |
2,519 |
|
$ |
13,729 |
|
$ |
8,986 |
|
$ |
11,102 |
|
$ |
(3,010 |
) |
|
$ |
(2,923 |
) |
|
$ |
(16,591 |
) |
|
$ |
(18,847 |
) |
|
$ |
7,332 |
|
$ |
30,588 |
COMMERCIAL VEHICLE GROUP, INC. AND
SUBSIDIARIESAppendix 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, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Gross profit |
$ |
20,979 |
|
|
$ |
38,401 |
|
|
$ |
47,644 |
|
|
$ |
73,610 |
|
Restructuring |
|
4,670 |
|
|
|
683 |
|
|
|
6,372 |
|
|
|
1,373 |
|
Adjusted gross profit |
$ |
25,649 |
|
|
$ |
39,084 |
|
|
$ |
54,016 |
|
|
$ |
74,983 |
|
% of revenues |
|
11.2 |
% |
|
|
14.9 |
% |
|
|
11.7 |
% |
|
|
14.3 |
% |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Operating income |
$ |
760 |
|
|
$ |
15,944 |
|
|
$ |
7,332 |
|
|
$ |
30,588 |
|
Restructuring |
|
4,928 |
|
|
|
718 |
|
|
|
6,824 |
|
|
|
1,431 |
|
Total operating income adjustments |
|
4,928 |
|
|
|
718 |
|
|
|
6,824 |
|
|
|
1,431 |
|
Adjusted operating income |
$ |
5,688 |
|
|
$ |
16,662 |
|
|
$ |
14,156 |
|
|
$ |
32,019 |
|
% of revenues |
|
2.5 |
% |
|
|
6.4 |
% |
|
|
3.1 |
% |
|
|
6.1 |
% |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Net income (loss) |
$ |
(1,601 |
) |
|
$ |
10,140 |
|
|
$ |
1,338 |
|
|
$ |
18,840 |
|
Operating income adjustments |
|
4,928 |
|
|
|
718 |
|
|
|
6,824 |
|
|
|
1,431 |
|
Adjusted provision for income taxes1 |
|
(1,232 |
) |
|
|
(180 |
) |
|
|
(1,706 |
) |
|
|
(358 |
) |
Adjusted net income |
$ |
2,095 |
|
|
$ |
10,678 |
|
|
$ |
6,456 |
|
|
$ |
19,913 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.05 |
) |
|
$ |
0.30 |
|
|
$ |
0.04 |
|
|
$ |
0.57 |
|
Adjustments to diluted EPS |
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
0.15 |
|
|
$ |
0.03 |
|
Adjusted diluted EPS |
$ |
0.06 |
|
|
$ |
0.32 |
|
|
$ |
0.19 |
|
|
$ |
0.60 |
|
1. Reported Tax Provision adjusted for tax effect
of special charges at 25%
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Net income (loss) |
$ |
(1,601 |
) |
|
$ |
10,140 |
|
|
$ |
1,338 |
|
|
$ |
18,840 |
|
Interest expense |
|
2,488 |
|
|
|
2,804 |
|
|
|
4,739 |
|
|
|
5,694 |
|
Provision for income taxes |
|
(334 |
) |
|
|
2,693 |
|
|
|
836 |
|
|
|
5,949 |
|
Depreciation expense |
|
3,782 |
|
|
|
3,547 |
|
|
|
7,491 |
|
|
|
6,977 |
|
Amortization expense |
|
720 |
|
|
|
864 |
|
|
|
1,483 |
|
|
|
1,696 |
|
EBITDA |
$ |
5,055 |
|
|
$ |
20,048 |
|
|
$ |
15,887 |
|
|
$ |
39,156 |
|
% of revenues |
|
2.2 |
% |
|
|
7.6 |
% |
|
|
3.4 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
EBITDA adjustments |
|
|
|
|
|
|
|
Restructuring |
$ |
4,928 |
|
|
$ |
718 |
|
|
$ |
6,824 |
|
|
$ |
1,431 |
|
Adjusted EBITDA |
$ |
9,983 |
|
|
$ |
20,766 |
|
|
$ |
22,711 |
|
|
$ |
40,587 |
|
% of revenues |
|
4.3 |
% |
|
|
7.9 |
% |
|
|
4.9 |
% |
|
|
7.7 |
% |
|
Three Months Ended June 30, 2024 |
|
Vehicle Solutions |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Industrial Automation |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
5,077 |
|
|
$ |
507 |
|
|
$ |
4,454 |
|
|
$ |
(1,015 |
) |
|
$ |
(8,263 |
) |
|
$ |
760 |
|
Restructuring |
|
3,236 |
|
|
|
1,379 |
|
|
|
197 |
|
|
|
116 |
|
|
|
— |
|
|
|
4,928 |
|
Adjusted operating income
(loss) |
$ |
8,313 |
|
|
$ |
1,886 |
|
|
$ |
4,651 |
|
|
$ |
(899 |
) |
|
$ |
(8,263 |
) |
|
$ |
5,688 |
|
% of revenues |
|
5.9 |
% |
|
|
3.8 |
% |
|
|
13.7 |
% |
|
(18.0 |
)% |
|
|
|
|
2.5 |
% |
|
Six Months Ended June 30, 2024 |
|
Vehicle Solutions |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Industrial Automation |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
15,428 |
|
|
$ |
2,519 |
|
|
$ |
8,986 |
|
|
$ |
(3,010 |
) |
|
$ |
(16,591 |
) |
|
$ |
7,332 |
|
Restructuring |
|
3,769 |
|
|
|
2,469 |
|
|
|
231 |
|
|
|
191 |
|
|
|
164 |
|
|
|
6,824 |
|
Adjusted operating income
(loss) |
$ |
19,197 |
|
|
$ |
4,988 |
|
|
$ |
9,217 |
|
|
$ |
(2,819 |
) |
|
$ |
(16,427 |
) |
|
$ |
14,156 |
|
% of revenues |
|
6.9 |
% |
|
|
4.7 |
% |
|
|
13.6 |
% |
|
(30.3 |
)% |
|
|
|
|
3.1 |
% |
|
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 |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
Cash flows from operating activities |
$ |
12,588 |
|
|
$ |
11,464 |
|
|
$ |
10,232 |
|
|
$ |
11,522 |
|
Purchases of property, plant and equipment |
|
(6,207 |
) |
|
|
(5,858 |
) |
|
|
(11,266 |
) |
|
|
(9,179 |
) |
Free cash flow |
$ |
6,381 |
|
|
$ |
5,606 |
|
|
$ |
(1,034 |
) |
|
$ |
2,343 |
|
|
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.
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