Core Molding Technologies, Inc. (NYSE American: CMT) (“Core
Molding” or the “Company”) today announced results for the third
quarter ended September 30, 2017.
“Core Molding generated increased product sales in the third
quarter, both on a year-over-year and a sequential basis,” stated
Kevin Barnett, Core Molding Technologies’ President and Chief
Executive Officer. “Our product sales were up 11% compared to the
third quarter of last year as a result of stronger demand from both
heavy-duty truck and marine customers. The Company delivered net
income of $0.11 per diluted share in the current year third quarter
compared to $0.13 per diluted share in the same period last year,
which had higher total sales. Our increase in product sales to
heavy-duty truck customers is consistent with the cyclical recovery
forecasted by industry analysts.”
Third Quarter 2017 Compared to Third
Quarter 2016:
- Net sales were $38.5 million compared
to $41.3 million.
- Product sales were $37.6 million
compared to $33.8 million.
- Gross margin was 15.0% compared to
13.5%.
- Operating income was $1.4 million
compared to $1.7 million.
- Net income was $0.9 million, or $0.11
per diluted share, compared with $1.0 million, or $0.13 per diluted
share.
Nine Months 2017 Compared to Nine
Months 2016:
- Net sales were $122.6 million compared
to $125.8 million.
- Product sales were $110.7 million
compared to $113.2 million.
- Gross margin was 16.0% compared to
16.5%.
- Operating income was $7.2 million
compared to $8.4 million.
- Net income was $4.7 million, or $0.61
per diluted share, compared with $5.4 million, or $0.70 per diluted
share.
Total sales of $38.5 million in the 2017 third quarter were down
approximately 7% from the prior year due to a decline in tooling
sales, which were higher in the 2016 third quarter from the launch
of new and replacement programs. Total sales were down 3%
year-to-date relative to the first nine months of 2016 reflecting
lower tooling sales along with modestly lower product sales to
heavy-duty truck and automotive customers, partially offset by
increased demand from customers in the marine market. Gross margin
increased in the third quarter of 2017 relative to the prior year,
driven by more favorable product mix and production costs,
partially offset by higher raw material prices. The decline in
gross margin for the first nine months of 2017 was primarily due to
the rise in raw material costs. Operating and net income declined
as a percent of sales for the 2017 third quarter and year-to-date
compared to the prior year primarily due to the lower overall sales
and an increase in operating cost.
Financial Position at September 30,
2017:
- Cash and cash equivalents of $27.5
million.
- Total assets of $138.7 million.
- Total debt of $7.5 million.
- Stockholders’ equity of $102.0
million.
The Company’s cash position of $27.5 million was slightly lower
than its $28.3 million in cash and cash equivalents at December 31,
2016 primarily due to an increase in working capital resulting from
a pick-up in customer demand.
Outlook
Mr. Barnett stated, “As 2017 comes to a close, we expect fourth
quarter 2017 product sales to be higher than the prior year period,
driven largely by further strengthening in demand by heavy-duty
truck and marine customers. Industry sources continue to forecast
an increase in heavy-duty truck production levels for 2017 and
2018, which are now expected to increase 10% and 15%, respectively,
relative to the prior years.”
Mr. Barnett concluded, “Our focus remains on identifying and
pursuing potential acquisitions aimed at diversifying our end
markets, materials and processes in order to enhance the organic
growth we are anticipating with our heavy-duty truck customers.
With our strong balance sheet, consistent cash flow and a cyclical
upswing unfolding in our main end-market, we are well positioned to
be patient and disciplined when approaching potential transactions.
Our outlook for a rising top-line combined with our focus on
continuous improvement efforts to drive efficiencies makes us
optimistic about our ability to build shareholder value in the near
and longer term.”
Dividend
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.05 per share payable on November 28, 2017 to
shareholders of record on November 17, 2017.
About Core Molding Technologies,
Inc.
Core Molding Technologies, Inc. is a manufacturer of sheet
molding compound (SMC) and molder of fiberglass reinforced
thermoset and thermoplastic materials. Core specializes in
large-format moldings and offers a wide range of fiberglass
processes, including compression molding of SMC, glass mat
thermoplastics (GMT) and bulk molding compounds (BMC); compression
and transfer molding of direct long-fiber thermoplastics (D-LFT);
spray-up, lay-up, resin transfer (RTM) and vacuum resin transfer
molding (V-RTM). Additionally, the company offers reaction
injection molding (RIM) of dicyclopentadiene (DCPD). Core serves a
wide variety of markets, including the medium and heavy-duty truck,
marine, automotive, agriculture, construction and other commercial
products markets. Headquartered in Columbus, Ohio, Core maintains
plants in Columbus and Batavia, Ohio; Gaffney, South Carolina;
Winona, Minnesota; and Matamoros, Mexico. For further information,
visit the company's website at www.coremt.com.
This press release may contain certain forward-looking
statements within the meaning of the federal securities laws. As a
general matter, forward-looking statements are those focused upon
future plans, objectives or performance as opposed to historical
items and include statements of anticipated events or trends and
expectations and beliefs relating to matters not historical in
nature. Such forward-looking statements involve known and unknown
risks and are subject to uncertainties and factors relating to Core
Molding Technologies' operations and business environment, all of
which are difficult to predict and many of which are beyond Core
Molding Technologies' control. Words such as “may,” “will,”
“could,” “would,” “should,” “anticipate,” “predict,” “potential,”
“continue,” “expect,” “intend,” “plans,” “projects,” “believes,”
“estimates,” “encouraged,” “confident” and similar expressions are
used to identify these forward-looking statements. These
uncertainties and factors could cause Core Molding Technologies'
actual results to differ materially from those matters expressed in
or implied by such forward-looking statements. Except as required
by law, Core Molding Technologies Inc. undertakes no obligation to
update these forward looking statements.
Core Molding Technologies believes that the following factors,
among others, could affect its future performance and cause actual
results to differ materially from those expressed or implied by
forward-looking statements made in this report: business conditions
in the plastics, transportation, marine and commercial product
industries (including slowdown in demand for truck production);
federal and state regulations (including engine emission
regulations); general economic, social, regulatory (including
foreign trade policy) and political environments in the countries
in which Core Molding Technologies operates; safety and security
conditions in Mexico; dependence upon certain major customers as
the primary source of Core Molding Technologies’ sales revenues;
efforts of Core Molding Technologies to expand its customer base;
the ability to develop new and innovative products and to diversify
markets, materials and processes and increase operational
enhancements; the actions of competitors, customers, and suppliers;
failure of Core Molding Technologies’ suppliers to perform their
obligations; the availability of raw materials; inflationary
pressures; new technologies; regulatory matters; labor relations;
the loss or inability of Core Molding Technologies to attract and
retain key personnel; the Company's ability to successfully
identify, evaluate and manage potential acquisitions and to benefit
from and properly integrate any completed acquisitions; federal,
state and local environmental laws and regulations; the
availability of capital; the ability of Core Molding Technologies
to provide on-time delivery to customers, which may require
additional shipping expenses to ensure on-time delivery or
otherwise result in late fees; risk of cancellation or rescheduling
of orders; management’s decision to pursue new products or
businesses which involve additional costs, risks or capital
expenditures; inadequate insurance coverage to protect against
potential hazards; equipment and machinery failure; product
liability and warranty claims; and other risks identified from time
to time in Core Molding Technologies’ other public documents on
file with the Securities and Exchange Commission, including those
described in Item 1A of the 2016 Annual Report on Form 10-K.
(See Accompanying Tables)
CORE MOLDING TECHNOLOGIES, INC.
Condensed
Consolidated Statements of Income (Unaudited)
(in thousands, expect per share data)
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 Net sales:
Products $ 37,593 $ 33,816 $ 110,723 $ 113,159 Tooling 901 7,520
11,885 12,651
Total net sales 38,494 41,336 122,608 125,810
Total cost of sales 32,730 35,755 103,001 105,043
Gross margin 5,764 5,581 19,607 20,767
Total selling, general and administrative expense 4,358
3,924 12,450 12,361
Operating income 1,406 1,657
7,157 8,406
Interest expense 62 67 191 233
Income before income taxes 1,344 1,590 6,966 8,173
Income tax expense 489 561 2,262 2,794
Net
income $ 855 $ 1,029 $ 4,704 $ 5,379
Net income per
common share: Basic $ 0.11 $ 0.13 $ 0.61 $ 0.71 Diluted $ 0.11
$ 0.13 $ 0.61 $ 0.70
Weighted average shares outstanding:
Basic 7,711 7,635 7,683 7,616 Diluted 7,757 7,667 7,739 7,649
Condensed
Consolidated Balance Sheets
(in thousands)
As of9/30/2017(Unaudited)
As of12/31/2016
Assets: Cash $ 27,540 $ 28,285 Accounts Receivable, net 24,293
19,551 Inventories, net 12,794 10,912 Other Current Assets 2,177
1,140 Property, Plant and Equipment, net 68,111 70,601 Goodwill and
Intangibles, net 2,928 2,966 Other Long-term Assets 862 - Total
Assets $ 138,705 $ 133,455 Liabilities and Stockholders'
Equity: Current Portion of Long-term Debt $ 3,000 $ 3,000 Accounts
Payable 11,652 8,534 Compensation and Related Benefits 4,847 5,004
Tooling in Progress 1,184 1,084 Accrued Liabilities and Other 1,873
2,658 Long-Term Debt 4,500 6,750 Deferred Tax Liability 992 992
Post Retirement Benefits Liability 8,638 8,667 Stockholders' Equity
102,019 96,766 Total Liabilities and Stockholders' Equity $ 138,705
$ 133,455
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version on businesswire.com: http://www.businesswire.com/news/home/20171102005269/en/
Company:Core Molding Technologies, Inc.John Zimmer,
614-870-5604Vice President & Chief Financial
Officerjzimmer@coremt.comorInvestor Relations:The Equity
Group Inc.Fred Buonocore,
212-836-9607fbuonocore@equityny.comorKevin Towle,
212-836-9620ktowle@equityny.comwww.theequitygroup.com
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