NEW ALBANY, Ohio, Aug. 4 /PRNewswire-FirstCall/ -- Commercial
Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of
$142.3 million for the second quarter
of 2010, compared to revenues of $103.5
million for the second quarter of 2009. Operating
income for the second quarter of 2010 was $2.6 million compared to an operating loss
of ($22.2) million for the second
quarter of 2009. Net income was $0.7
million for the quarter, or $0.02 per diluted share, compared to a net loss
of ($22.5) million, or ($1.04) per diluted share, in the prior-year
quarter. Fully diluted shares outstanding for the quarter
were 28.0 million compared to 21.7 million for the prior-year
period.
Included in the Company's results for the quarter was
approximately $1.4 million of
restructuring expense related to the closure of its Norwalk, Ohio facility. Excluding this
restructuring expense, the Company's operating income was
approximately $4.0 million for the
quarter. The Company also recorded other income of
$1.3 million, primarily related to
the gain on the mark to market of its foreign exchange currency
contracts.
"We are pleased to see signs of recovery in our end markets and
the benefits of our profit improvement initiatives, which are
reflected in our positive results," said Mervin Dunn, President and Chief Executive
Officer of Commercial Vehicle Group. "With many of our key
end markets showing positive trends in the last few quarters, we
are optimistic about our longer-term opportunities," added Mr.
Dunn.
Revenues for the quarter compared to the prior-year period
increased by approximately $38.8 million, or 37.5%, due primarily to
the increase in the Company's OEM truck, construction and military
end markets and operating income for the quarter increased by
approximately $24.8 million compared
to the prior-year period. Excluding restructuring charges of
$1.4 million in the second quarter of
2010 and $0.2 million in the second
quarter of 2009 as well as intangible and long-lived asset
impairment charges of $7.0 million
and $3.4 million, respectively, in
the second quarter of 2009, operating income for the quarter
compared to the prior-year period increased by approximately
$15.6 million.
The Company reported a positive cash balance of $52.4 million as of June
30, 2010 and had zero funds borrowed under its revolving
credit facility.
"Our financial achievements through the second quarter of 2010
are positive. Excluding non-recurring items such as
restructuring charges and asset impairments, our quarterly
operating income improved approximately $15.6 million on $38.8
million of incremental revenues versus last year. This
marks our fifth consecutive quarter of operating income improvement
when excluding one-time adjustments such as restructuring and
impairment charges, and we are extremely pleased with these
trends," said Chad M. Utrup, Chief
Financial Officer of Commercial Vehicle Group. "As a result
of the financial successes we have achieved over the past year,
combined with our significant improvement in cash and liquidity, we
feel we are in a strong position as we move forward," added Mr.
Utrup.
The Company currently expects North American class 8 production
units in the range of 150 thousand to 155 thousand for the full
year 2010 and approximately 220 to 230 thousand units for 2011.
The Company is not providing revenue or earnings estimates;
however, it does not expect to be required to comply with any
financial covenant requirements for the full year 2010 at this
time.
A conference call to review second quarter results is scheduled
for Thursday, August 5, 2010, at
10:00 a.m. ET. To participate,
dial (888) 680-0879 using access code 99522998. You can
pre-register for the conference call and receive your pin number
at:
https://www.theconferencingservice.com/prereg/key.process?key=PKJNVQFEC
This call is being webcast by Thomson/CCBN and can be accessed
at Commercial Vehicle Group's Web site at www.cvgrp.com.
A replay of the conference call will be available for a period
of two weeks following the call. To access the replay, dial
(888) 286-8010 using access code 85301162.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully
integrated system solutions for the global commercial vehicle
market, including the heavy-duty truck market, the construction and
agriculture markets and the specialty and military transportation
markets. The Company's products include static and suspension
seat systems, electronic wire harness assemblies, controls and
switches, structures and components, interior trim systems
(including instrument panels, door panels, headliners, cabinetry
and floor systems), mirrors and wiper systems specifically designed
for applications in commercial vehicles. The Company
headquartered in New Albany, OH
has operations throughout North
America, Europe and
Asia. 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," "expect," "anticipate," "intend,"
"plan," "estimate," or similar expressions. In particular,
this press release may contain forward-looking statements about
Company expectations for future periods with respect to North
American class 8 production levels, the Company's financial
covenant compliance, 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 in
the industry 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 but not limited to:
(i) general economic or business conditions affecting the markets
in which the Company serves; (ii) the Company's ability to develop
or successfully introduce new products; (iii) risks associated with
conducting business in foreign countries and currencies; (iv)
increased competition in the heavy-duty truck market; (v) the
impact of changes in governmental regulations on the Company's
customers or on its business; (vi) the loss of business from a
major customer or the discontinuation of particular commercial
vehicle platforms; (vii) the Company's ability to obtain future
financing due to changes in the lending markets or its financial
position; and (viii) various other risks as outlined under the
heading "Risk Factors" in the Company's Annual Report on Form 10-K
for fiscal year ending December 31,
2009. 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 Ended June
30,
|
|
Six Months Ended June
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(In thousands, except per share
amounts)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
142,349
|
|
$
103,503
|
|
$
288,756
|
|
$
212,033
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
124,593
|
|
104,592
|
|
254,108
|
|
216,371
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
(Loss)
|
|
17,756
|
|
(1,089)
|
|
34,648
|
|
(4,338)
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
13,668
|
|
10,366
|
|
26,879
|
|
23,709
|
|
|
|
|
|
|
|
|
|
|
|
AMORTIZATION EXPENSE
|
|
60
|
|
97
|
|
120
|
|
194
|
|
|
|
|
|
|
|
|
|
|
|
INTANGIBLE ASSET
IMPAIRMENT
|
|
-
|
|
7,000
|
|
-
|
|
7,000
|
|
|
|
|
|
|
|
|
|
|
|
LONG-LIVED ASSET
IMPAIRMENT
|
|
-
|
|
3,445
|
|
-
|
|
3,445
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING COSTS
|
|
1,410
|
|
235
|
|
1,410
|
|
1,947
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
2,618
|
|
(22,232)
|
|
6,239
|
|
(40,633)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
|
|
(1,281)
|
|
(3,505)
|
|
(2,740)
|
|
(8,397)
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
3,907
|
|
3,666
|
|
8,421
|
|
7,310
|
|
|
|
|
|
|
|
|
|
|
|
LOSS ON EARLY EXTINGUISHMENT OF
DEBT
|
|
-
|
|
-
|
|
-
|
|
795
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income Before (Benefit)
Provision for Income Taxes
|
|
(8)
|
|
(22,393)
|
|
558
|
|
(40,341)
|
|
|
|
|
|
|
|
|
|
|
|
(BENEFIT) PROVISION FOR INCOME
TAXES
|
|
(701)
|
|
120
|
|
(811)
|
|
1,576
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
$
693
|
|
$
(22,513)
|
|
$
1,369
|
|
$
(41,917)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.03
|
|
$
(1.04)
|
|
$
0.05
|
|
$
(1.93)
|
|
Diluted
|
|
$
0.02
|
|
$
(1.04)
|
|
$
0.05
|
|
$
(1.93)
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
27,214
|
|
21,747
|
|
24,973
|
|
21,747
|
|
Diluted
|
|
27,973
|
|
21,747
|
|
25,820
|
|
21,747
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL VEHICLE GROUP, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
June 30,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(In thousands, except share
and
per share
amounts)
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
Cash
|
$
52,371
|
|
$
9,524
|
|
Accounts receivable,
net
|
75,285
|
|
74,063
|
|
Inventories, net
|
62,950
|
|
58,051
|
|
Prepaid expenses and other,
net
|
13,796
|
|
26,781
|
|
Total current assets
|
204,402
|
|
168,419
|
|
PROPERTY, PLANT AND EQUIPMENT,
net
|
56,282
|
|
62,315
|
|
INTANGIBLE ASSETS,
net
|
3,968
|
|
4,087
|
|
OTHER ASSETS, net
|
12,254
|
|
15,688
|
|
TOTAL ASSETS
|
$ 276,906
|
|
$ 250,509
|
|
LIABILITIES AND STOCKHOLDERS’
DEFICIT
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Accounts payable
|
$
58,262
|
|
$
59,657
|
|
Accrued liabilities,
other
|
34,940
|
|
32,977
|
|
Total current
liabilities
|
93,202
|
|
92,634
|
|
LONG-TERM DEBT
|
164,765
|
|
162,644
|
|
PENSION AND OTHER
POST-RETIREMENT BENEFITS
|
25,410
|
|
26,915
|
|
OTHER LONG-TERM
LIABILITIES
|
3,907
|
|
6,081
|
|
Total liabilities
|
287,284
|
|
288,274
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
STOCKHOLDERS’
DEFICIT:
|
|
|
|
|
Preferred stock $.01 par value;
5,000,000 shares authorized; 27,339,930
|
|
|
|
|
and 22,070,531 shares issued and
outstanding, respectively
|
274
|
|
221
|
|
Treasury stock purchased from
employees; 130,674 shares, respectively
|
(1,090)
|
|
(1,090)
|
|
Additional paid-in
capital
|
214,016
|
|
186,291
|
|
Retained loss
|
(198,477)
|
|
(199,846)
|
|
Accumulated other comprehensive
loss
|
(25,101)
|
|
(23,341)
|
|
Total stockholders’
deficit
|
(10,378)
|
|
(37,765)
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’
DEFICIT
|
$ 276,906
|
|
$ 250,509
|
|
|
|
|
|
SOURCE Commercial Vehicle Group, Inc.
Copyright g. 4 PR Newswire