CVG (NASDAQ: CVGI), a diversified industrial products and services
company, today announced financial results for its second quarter
ended June 30, 2022.
Second Quarter
2022 Highlights (Compared with
prior-year, where comparisons are noted)
- Sales of $250.8
million, down $7.1 million or 2.8%.
- Operating Income of
$6.2 million. Adjusted operating income of $8.1 million, down $8.5
million or 51.2%.
- Net income of $2.5
million, or $0.08 per diluted share. Adjusted net income of $4.3
million, or $0.13 per diluted share, a decrease of $0.20 per
diluted share.
- Adjusted EBITDA of
$12.4 million, down $9.2 million, and adjusted EBITDA margin of
4.9%.
- New pricing began
with the Company's largest customer on July 1, and with several
other customers in 2022. The price increases are expected to
benefit the Company's profitability in the second half of 2022 by
approximately $15 million, and $30 million annually, depending on
inflationary and other pressures.
- The Company expects
full year debt paydown to be $25 million to $40 million.
- The Company
continued to win new diversified business, especially in the
Electric Vehicle market and has won 29 new business platforms year
to date worth an estimated $104 million of new annualized business
when fully ramped. Annualized new wins are now at over $300 million
per year, centered in electrical systems for electric
vehicles.
CVG made progress in Q2 2022 on multiple fronts
including: improved pricing on existing business; execution of
restructuring plan with associated cost savings; winning new
business in targeted areas; a re-start of its profitable China
business; and stabilization of the Company’s business in the
Ukraine and Czech Republic region. With these changes, CVG expects
profits and free cash flow to improve sequentially in the second
half of 2022.
Core Business Optimization. CVG has a dual
approach to optimize its core business with price increases and
cost reduction. It has substantially renegotiated pricing
agreements with a majority of customers with the new pricing
taking effect in Q3 2022. The price increases are expected to add
to the anticipated run-rate by more than $30 million annually,
depending on inflationary and other pressures. The second half of
2022 is expected to benefit from approximately $15 million of
increased pricing which is expected to improve profitability and
free cash flow, depending on above mentioned inflationary and other
pressures. CVG also continued execution of its restructuring plan
which includes part regionalization, part vertical integration and
a modest headcount reduction in July. The Company is offsetting
rapid inflation increases with a price increase program and a
cost-reduction program. This environment is expected to
continue.
Win New Business Focused on Electrification. CVG
is focused on strengthening its go-forward revenue profile and
continued to win new business in the second quarter with most of
the wins in the Electrical Systems segment. CVG has cumulatively
won over $300 million of new annualized business in the last 30
months, when fully ramped up. The timing of the ramp-ups is tied
into global supply chain constraints which has been hard to
predict. The platform value of the new business is over $2 billion
in lifetime revenue. CVG has a focused organic growth plan for each
business, and is particularly focused on electrification and the
Electric Vehicle industry. To accomplish this growth, the Company
has developed and fielded over 100 new products in the last 30
months. The Company’s new business pipeline continues to grow and
is now approximately $5 billion in size.
Debt Paydown and Improved Free Cash Flow. The
aftermath of the global pandemic and cost inflation caused the
Company to significantly invest into its working capital profile.
This investment peaked in Q1 2022 and the Company generated free
cash flow in Q2 2022 and expects to accelerate its free cash flow
generation going forward. The Company expects its profits and free
cash flow to continue to improve in the second half of 2022 and
enable the Company to achieve its goal of paying down $25 to $40
million of debt for the full year.
Harold Bevis, President and Chief Executive
Officer of CVG, said, "We made significant progress in the second
quarter on multiple fronts which, we believe, positions CVG for
improved profitability and free cash flow generation for the
balance of the year. This is despite the sudden pullback by an
industry leader in the e-commerce fulfillment arena. This is a
bellwether event for many market participants like CVG and is
expected to continue for a year. In vehicle building, we are still
in a difficult operating environment with many parts and labor
shortages and continued inflation. However, we successfully
renegotiated pricing with several customers which, prior to the
renegotiation, suppressed profitability in the second half of 2021
and first half of 2022. The new pricing is expected to deliver
approximately $15 million of improved profitability in the second
half of 2022 and more than $30 million annually, depending on
inflationary and other pressures. We remain committed to continue
to renegotiate prices and lower our costs as we manage through this
cycle. Additionally, our China facility has reopened, and our
Ukrainian facility’s operations have improved during the
quarter.
Lastly, there continues to be more demand than
supply in the North American Class 8 truck market. As such, the
Company expects to be able to increase its revenues by contributing
to solving these operational problems. In summary, while we are in
a tough operating environment for vehicle production and a pause in
the warehouse automation business, we expect an improved
performance for the third and fourth quarter to deliver stronger
earnings, free cash generation and debt repayment.”
Second Quarter Financial
Results(amounts in millions except per share data and
percentages)
|
Second Quarter |
|
|
|
|
|
2022 |
|
2021 |
|
$ Change |
|
% Change |
Revenues |
$ |
250.8 |
|
|
$ |
257.9 |
|
|
$ |
(7.1 |
) |
|
(2.8 |
)% |
Gross profit |
$ |
21.9 |
|
|
$ |
34.4 |
|
|
$ |
(12.5 |
) |
|
(36.3 |
)% |
Gross margin |
|
8.7 |
% |
|
|
13.3 |
% |
|
|
|
|
Adjusted gross profit 1 |
$ |
23.3 |
|
|
$ |
34.4 |
|
|
$ |
(11.1 |
) |
|
(32.3 |
)% |
Adjusted gross margin 1 |
|
9.3 |
% |
|
|
13.3 |
% |
|
|
|
|
Operating income (loss) |
$ |
6.2 |
|
|
$ |
16.3 |
|
|
$ |
(10.1 |
) |
|
(62.0 |
)% |
Operating margin |
|
2.5 |
% |
|
|
6.3 |
% |
|
|
|
|
Adjusted operating income
(loss) 1 |
$ |
8.1 |
|
|
$ |
16.6 |
|
|
$ |
(8.5 |
) |
|
(51.2 |
)% |
Adjusted operating margin 1 |
|
3.2 |
% |
|
|
6.4 |
% |
|
|
|
|
Net income (loss) |
$ |
2.5 |
|
|
$ |
5.1 |
|
|
$ |
(2.6 |
) |
|
(51.0 |
)% |
Adjusted net income (loss)1 |
$ |
4.3 |
|
|
$ |
10.7 |
|
|
$ |
(6.4 |
) |
|
(59.8 |
)% |
Earnings (loss) per share,
diluted |
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
(0.08 |
) |
|
(50.0 |
)% |
Adjusted earnings per share, diluted 1 |
$ |
0.13 |
|
|
$ |
0.33 |
|
|
$ |
(0.20 |
) |
|
(60.6 |
)% |
Adjusted EBITDA 1 |
$ |
12.4 |
|
|
$ |
21.6 |
|
|
$ |
(9.2 |
) |
|
(42.6 |
)% |
Adjusted EBITDA margin 1 |
|
4.9 |
% |
|
|
8.5 |
% |
|
|
|
|
1 See Appendix A
for GAAP to Non-GAAP reconciliation |
|
|
|
|
Consolidated Results of
Operations
Second Quarter 2022 Results
- Second quarter 2022
revenues were $250.8 million compared to $257.9 million in the
prior year period, a decrease of 2.8%. The decrease in revenues is
primarily driven by a volume decrease in Warehouse Automation,
offset by increased pricing to offset material cost increases
across all other segments. Foreign currency translation also
unfavorably impacted second quarter of 2022 revenues by $4.8
million, or by 1.9%.
- Operating income
for the second quarter of 2022 was $6.2 million compared to $16.3
million in the prior year period. The decrease in operating income
is primarily attributable to a lag in price-cost offsets,
$2.9 million of new business startup costs and $1.8 million of
restructuring expenses. The second quarter of 2022 adjusted
operating income was $8.1 million, excluding special charges.
- Interest associated
with debt and other expenses was $2.1 million and $2.8 million for
the second quarter ended June 30, 2022 and 2021,
respectively.
- Net income was $2.5
million, or $0.08 per diluted share, for the second quarter of 2022
compared to $5.1 million, or $0.16 per diluted share, in the prior
year period.
At June 30, 2022, the Company had $31.0
million of outstanding borrowings on its revolving credit
facility, $28.5 million of cash and $117.8
million of availability from the revolving credit facility,
resulting in total liquidity of $146.3 million.
Segment Results
Second Quarter 2022 Results
Vehicle Solutions Segment
- Revenues in the
second quarter 2022 were $142.8 million compared to $130.2 million
in the prior year period, an increase of 9.6%, primarily resulting
from material cost pass-through.
- Operating income
for the second quarter of 2022 was $1.5 million compared to $8.2
million in the prior year period, a decrease of 81.7%, primarily
driven by a lag in price-cost offsets and increased new business
startup costs.
Warehouse Automation
Segment
- Revenues in the
second quarter of 2022 were $28.5 million compared to $54.3 million
in the prior year period, a decrease of 47.5% primarily due to
lower demand levels.
- Operating income
for the second quarter of 2022 was $1.3 million compared to $8.5
million in the prior year period. The decrease in operating income
was primarily attributable to lower volumes. Adjusted operating
income was $1.7 million, a decrease of 79.8%.
Electric Systems Segment
- Revenues in the
second quarter of 2022 were $47.3 million compared to $44.2 million
in the prior year period, an increase of 7.1%, primarily resulting
from material cost pass-through and contributions from new business
wins.
- Operating income
was $5.9 million compared to $3.1 million in the prior year period.
The increase in operating income is primarily attributable to
volumes and material cost pass-through. Adjusted operating income
was $6.5 million, an increase of 108.1%.
Aftermarket and Accessories
Segment
- Revenues were $32.2
million compared to $29.2 million in the prior year period, an
increase of 10.2%, primarily resulting from material cost
pass-through.
- Operating income
was $1.1 million compared to $3.7 million in the prior year period.
The decrease in operating income is primarily attributable to a lag
in price-cost offsets. Adjusted operating income was $1.7 million,
a decrease of 54.1%.
2022 Demand Outlook
According to ACT Research, 2022 North American
Class 8 truck production levels are expected to be at 305,000 units
and Class 5-7 production are expected to be at 230,000 units. This
outlook supports the Company’s 2022 outlook for vehicle
products.
According to LogisticsIQ, demand for warehouse
automation products is expected to grow approximately 15% annually
through 2027. However, the North American industry is below the
trendline at the moment due to an industry leader's actions to
address its fulfillment overcapacity and excess operating expenses.
This overhang is impacting the industry for the time being.
However, the long term outlook supports demand for the Company's
warehouse automation business.
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 Friday, August 5, 2022, at 10:00 a.m. ET.
During the conference call, management intends to reference the Q2
2022 Earnings Call Presentation posted on the "Investors" section
of CVG's website. To participate, dial (888) 396-8049 using
conference code 14385257. International participants dial (416)
764-8646 using conference code 14385257.
This call is being webcast and can be accessed
through the “Investors” section of CVG’s website at www.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,
toll-free callers can dial (877) 674-7070 using access code
385257.
Company Contact
Christopher H. BohnertChief Financial
OfficerCVGIR@cvgrp.com
About CVG
At CVG, we deliver real solutions to complex
design, engineering and manufacturing problems across a range of
global industries by innovating, constantly adding value, and
treating our customer's bottom line as if it were our own.
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, including the short-term and long-term
impact of the COVID-19 pandemic on our business, 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, 2022 and 2021
(Unaudited)
(Amounts in thousands, except per share
amounts)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Revenues |
$ |
250,849 |
|
|
$ |
257,941 |
|
|
$ |
495,223 |
|
$ |
503,063 |
|
Cost of revenues |
|
228,970 |
|
|
|
223,573 |
|
|
|
447,961 |
|
|
437,574 |
|
Gross profit |
|
21,879 |
|
|
|
34,368 |
|
|
|
47,262 |
|
|
65,489 |
|
Selling, general and
administrative expenses |
|
15,652 |
|
|
|
18,039 |
|
|
|
32,651 |
|
|
33,757 |
|
Operating income |
|
6,227 |
|
|
|
16,329 |
|
|
|
14,611 |
|
|
31,732 |
|
Other (income) expense |
|
(167 |
) |
|
|
(285 |
) |
|
|
874 |
|
|
(941 |
) |
Interest expense |
|
2,118 |
|
|
|
2,818 |
|
|
|
4,079 |
|
|
7,859 |
|
Loss on extinguishment of
debt |
|
921 |
|
|
|
7,155 |
|
|
|
921 |
|
|
7,155 |
|
Income before provision for income taxes |
|
3,355 |
|
|
|
6,641 |
|
|
|
8,737 |
|
|
17,659 |
|
Provision for income taxes |
|
870 |
|
|
|
1,546 |
|
|
|
2,270 |
|
|
4,074 |
|
Net income |
$ |
2,485 |
|
|
$ |
5,095 |
|
|
$ |
6,467 |
|
$ |
13,585 |
|
Earnings per Common
Share: |
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.20 |
|
$ |
0.43 |
|
Diluted |
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.20 |
|
$ |
0.42 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
32,237 |
|
|
|
31,458 |
|
|
|
32,152 |
|
|
31,361 |
|
Diluted |
|
33,039 |
|
|
|
32,674 |
|
|
|
33,009 |
|
|
32,654 |
|
COMMERCIAL VEHICLE GROUP, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(Amounts in thousands, except per share
amounts)
ASSETS |
June 30, 2022 |
|
December 31, 2021 |
Current assets: |
|
|
|
Cash |
$ |
28,500 |
|
|
$ |
34,958 |
|
Accounts receivable, net of allowances of $485 and $243,
respectively |
|
219,312 |
|
|
|
174,472 |
|
Inventories |
|
150,025 |
|
|
|
141,045 |
|
Other current assets |
|
19,066 |
|
|
|
20,201 |
|
Total current assets |
|
416,903 |
|
|
|
370,676 |
|
Property, plant and equipment,
net |
|
65,275 |
|
|
|
63,126 |
|
Intangible assets, net |
|
16,416 |
|
|
|
18,283 |
|
Deferred income taxes |
|
24,470 |
|
|
|
24,108 |
|
Other assets, net |
|
33,508 |
|
|
|
31,500 |
|
Total assets |
$ |
556,572 |
|
|
$ |
507,693 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
125,450 |
|
|
$ |
101,915 |
|
Accrued liabilities and other |
|
58,337 |
|
|
|
50,840 |
|
Current portion of long-term debt |
|
8,750 |
|
|
|
9,375 |
|
Total current liabilities |
|
192,537 |
|
|
|
162,130 |
|
Long-term debt |
|
197,157 |
|
|
|
185,581 |
|
Pension and other post-retirement
benefits |
|
7,043 |
|
|
|
9,905 |
|
Other long-term liabilities |
|
26,381 |
|
|
|
23,424 |
|
Total liabilities |
$ |
423,118 |
|
|
$ |
381,040 |
|
Stockholders’ equity: |
|
|
|
Preferred stock, $0.01 par value ($5,000,000 shares authorized; no
shares issued and outstanding) |
$ |
— |
|
|
$ |
— |
|
Common stock, $0.01 par value ($60,000,000 shares authorized;
32,447,768 and 32,034,592 shares issued and outstanding
respectively) |
|
325 |
|
|
|
321 |
|
Treasury stock, at cost: 1,832,518 and 1,708,981 shares,
respectively |
|
(14,084 |
) |
|
|
(13,172 |
) |
Additional paid-in capital |
|
258,384 |
|
|
|
255,566 |
|
Retained deficit |
|
(67,157 |
) |
|
|
(73,624 |
) |
Accumulated other comprehensive loss |
|
(44,014 |
) |
|
|
(42,438 |
) |
Total stockholders’ equity |
|
133,454 |
|
|
|
126,653 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
556,572 |
|
|
$ |
507,693 |
|
|
COMMERCIAL VEHICLE GROUP, INC. AND
SUBSIDIARIES
BUSINESS SEGMENT FINANCIAL
INFORMATION
(Unaudited)
(Amounts in thousands)
|
Three Months Ended June 30, |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
2021 |
Revenues |
$ |
142,785 |
|
$ |
130,230 |
|
$ |
28,547 |
|
$ |
54,324 |
|
$ |
47,345 |
|
$ |
44,195 |
|
$ |
32,172 |
|
$ |
29,192 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
250,849 |
|
$ |
257,941 |
Gross profit |
|
8,912 |
|
|
14,963 |
|
|
2,855 |
|
|
9,686 |
|
|
7,245 |
|
|
4,588 |
|
|
2,867 |
|
|
5,135 |
|
|
— |
|
|
|
(4 |
) |
|
|
21,879 |
|
|
34,368 |
Selling, general &
administrative expenses |
|
7,403 |
|
|
6,721 |
|
|
1,547 |
|
|
1,206 |
|
|
1,303 |
|
|
1,459 |
|
|
1,735 |
|
|
1,449 |
|
|
3,664 |
|
|
|
7,204 |
|
|
|
15,652 |
|
|
18,039 |
Operating income (loss) |
$ |
1,509 |
|
$ |
8,242 |
|
$ |
1,308 |
|
$ |
8,480 |
|
$ |
5,942 |
|
$ |
3,129 |
|
$ |
1,132 |
|
$ |
3,686 |
|
$ |
(3,664 |
) |
|
$ |
(7,208 |
) |
|
$ |
6,227 |
|
$ |
16,329 |
|
Six Months Ended June 30, |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues |
$ |
282,941 |
|
$ |
254,572 |
|
$ |
62,673 |
|
$ |
98,696 |
|
$ |
87,222 |
|
$ |
90,657 |
|
$ |
62,387 |
|
$ |
59,138 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
495,223 |
|
$ |
503,063 |
Gross profit |
|
21,817 |
|
|
28,771 |
|
|
7,846 |
|
|
15,126 |
|
|
10,647 |
|
|
10,912 |
|
|
6,952 |
|
|
10,720 |
|
|
— |
|
|
|
(40 |
) |
|
|
47,262 |
|
|
65,489 |
Selling, general &
administrative expenses |
|
13,990 |
|
|
13,046 |
|
|
2,871 |
|
|
2,738 |
|
|
2,942 |
|
|
2,927 |
|
|
3,199 |
|
|
2,871 |
|
|
9,649 |
|
|
|
12,175 |
|
|
|
32,651 |
|
|
33,757 |
Operating income (loss) |
$ |
7,827 |
|
$ |
15,725 |
|
$ |
4,975 |
|
$ |
12,388 |
|
$ |
7,705 |
|
$ |
7,985 |
|
$ |
3,753 |
|
$ |
7,849 |
|
$ |
(9,649 |
) |
|
$ |
(12,215 |
) |
|
$ |
14,611 |
|
$ |
31,732 |
|
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, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Gross profit |
$ |
21,879 |
|
|
$ |
34,368 |
|
|
$ |
47,262 |
|
|
$ |
65,489 |
|
Restructuring |
|
1,455 |
|
|
|
— |
|
|
|
2,349 |
|
|
|
— |
|
Adjusted gross profit |
$ |
23,334 |
|
|
$ |
34,368 |
|
|
$ |
49,611 |
|
|
$ |
65,489 |
|
% of revenues |
|
9.3 |
% |
|
|
13.3 |
% |
|
|
10.0 |
% |
|
|
13.0 |
% |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Operating income (loss) |
$ |
6,227 |
|
|
$ |
16,329 |
|
|
$ |
14,611 |
|
|
$ |
31,732 |
|
Restructuring |
|
1,751 |
|
|
|
— |
|
|
|
2,740 |
|
|
|
— |
|
Deferred consideration purchase accounting |
|
119 |
|
|
|
120 |
|
|
|
238 |
|
|
|
368 |
|
Investigation |
|
— |
|
|
|
200 |
|
|
|
— |
|
|
|
394 |
|
Total operating income (loss) adjustments |
|
1,870 |
|
|
|
320 |
|
|
|
2,978 |
|
|
|
762 |
|
Adjusted operating income
(loss) |
$ |
8,097 |
|
|
$ |
16,649 |
|
|
$ |
17,589 |
|
|
$ |
32,494 |
|
% of revenues |
|
3.2 |
% |
|
|
6.5 |
% |
|
|
3.6 |
% |
|
|
6.5 |
% |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Net income (loss) |
$ |
2,485 |
|
|
$ |
5,095 |
|
|
$ |
6,467 |
|
|
$ |
13,585 |
|
Operating income (loss) adjustments |
|
1,870 |
|
|
|
320 |
|
|
|
2,978 |
|
|
|
762 |
|
Loss on extinguishment of debt |
|
921 |
|
|
|
7,155 |
|
|
|
921 |
|
|
|
7,155 |
|
Hryvnia fair value adjustments on forward exchange contracts |
|
(424 |
) |
|
|
— |
|
|
|
251 |
|
|
|
— |
|
Adjusted (benefit) provision for income taxes1 |
|
(592 |
) |
|
|
(1,869 |
) |
|
|
(1,038 |
) |
|
|
(1,979 |
) |
Adjusted net income
(loss) |
$ |
4,260 |
|
|
$ |
10,701 |
|
|
$ |
9,579 |
|
|
$ |
19,523 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.08 |
|
|
$ |
0.16 |
|
|
$ |
0.20 |
|
|
$ |
0.42 |
|
Adjustments to diluted EPS |
$ |
0.05 |
|
|
$ |
0.17 |
|
|
$ |
0.09 |
|
|
$ |
0.18 |
|
Adjusted diluted EPS |
$ |
0.13 |
|
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.60 |
|
1 Reported Tax (Benefit) Provision
adjusted for tax effect of special charges at 25%
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
June 30, 2021 |
Net income (loss) |
$ |
2,485 |
|
|
$ |
5,095 |
|
|
$ |
6,467 |
|
|
$ |
13,585 |
|
Interest expense |
|
2,118 |
|
|
|
2,818 |
|
|
|
4,079 |
|
|
|
7,859 |
|
Provision (benefit) for income taxes |
|
870 |
|
|
|
1,546 |
|
|
|
2,270 |
|
|
|
4,074 |
|
Depreciation expense |
|
3,719 |
|
|
|
3,807 |
|
|
|
7,294 |
|
|
|
7,588 |
|
Amortization expense |
|
855 |
|
|
|
859 |
|
|
|
1,712 |
|
|
|
1,720 |
|
EBITDA |
$ |
10,047 |
|
|
$ |
14,125 |
|
|
$ |
21,822 |
|
|
$ |
34,826 |
|
% of revenues |
|
4.0 |
% |
|
|
5.5 |
% |
|
|
4.4 |
% |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
EBITDA adjustments |
|
|
|
|
|
|
|
Restructuring |
$ |
1,751 |
|
|
$ |
— |
|
|
$ |
2,740 |
|
|
$ |
— |
|
Deferred consideration purchase accounting |
|
119 |
|
|
|
120 |
|
|
|
238 |
|
|
|
368 |
|
Loss on extinguishment of debt |
|
921 |
|
|
|
7,155 |
|
|
|
921 |
|
|
|
7,155 |
|
Hryvnia fair value adjustments on forward exchange contracts |
|
(424 |
) |
|
|
— |
|
|
|
251 |
|
|
|
— |
|
Investigation |
|
— |
|
|
|
200 |
|
|
|
— |
|
|
|
394 |
|
Adjusted EBITDA |
$ |
12,414 |
|
|
$ |
21,600 |
|
|
$ |
25,972 |
|
|
$ |
42,743 |
|
% of revenues |
|
4.9 |
% |
|
|
8.4 |
% |
|
|
5.2 |
% |
|
|
8.5 |
% |
|
Three Months Ended June 30, 2022 |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
1,509 |
|
|
$ |
1,308 |
|
|
$ |
5,942 |
|
|
$ |
1,132 |
|
|
$ |
(3,664 |
) |
|
$ |
6,227 |
|
Restructuring |
|
— |
|
|
|
314 |
|
|
|
571 |
|
|
|
560 |
|
|
|
306 |
|
|
|
1,751 |
|
Deferred consideration purchase accounting |
|
— |
|
|
|
119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
119 |
|
Adjusted operating income
(loss) |
$ |
1,509 |
|
|
$ |
1,741 |
|
|
$ |
6,513 |
|
|
$ |
1,692 |
|
|
$ |
(3,358 |
) |
|
$ |
8,097 |
|
% of revenues |
|
1.1 |
% |
|
|
6.1 |
% |
|
|
13.8 |
% |
|
|
5.3 |
% |
|
|
|
|
3.2 |
% |
|
Six Months Ended June 30, 2022 |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
7,827 |
|
|
$ |
4,975 |
|
|
$ |
7,705 |
|
|
$ |
3,753 |
|
|
$ |
(9,649 |
) |
|
$ |
14,611 |
|
Restructuring |
|
204 |
|
|
|
664 |
|
|
|
571 |
|
|
|
995 |
|
|
|
306 |
|
|
|
2,740 |
|
Deferred consideration purchase accounting |
|
— |
|
|
|
238 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
238 |
|
Adjusted operating income
(loss) |
$ |
8,031 |
|
|
$ |
5,877 |
|
|
$ |
8,276 |
|
|
$ |
4,748 |
|
|
$ |
(9,343 |
) |
|
$ |
17,589 |
|
% of revenues |
|
2.8 |
% |
|
|
9.4 |
% |
|
|
9.5 |
% |
|
|
7.6 |
% |
|
|
|
|
3.6 |
% |
|
Three Months Ended June 30, 2021 |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
8,242 |
|
|
$ |
8,480 |
|
|
$ |
3,129 |
|
|
$ |
3,686 |
|
|
$ |
(7,208 |
) |
|
$ |
16,329 |
|
Deferred consideration purchase accounting |
|
— |
|
|
|
120 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
120 |
|
Investigation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
Adjusted operating income
(loss) |
$ |
8,242 |
|
|
$ |
8,600 |
|
|
$ |
3,129 |
|
|
$ |
3,686 |
|
|
$ |
(7,008 |
) |
|
$ |
16,649 |
|
% of revenues |
|
6.3 |
% |
|
|
15.8 |
% |
|
|
7.1 |
% |
|
|
12.6 |
% |
|
|
|
|
6.5 |
% |
|
Six Months Ended June 30, 2021 |
|
Vehicle Solutions |
|
Warehouse Automation |
|
Electrical Systems |
|
Aftermarket and Accessories |
|
Corporate/Other |
|
Total |
Operating income (loss) |
$ |
15,725 |
|
|
$ |
12,388 |
|
|
$ |
7,985 |
|
|
$ |
7,849 |
|
|
$ |
(12,215 |
) |
|
$ |
31,732 |
|
Deferred consideration purchase accounting |
|
— |
|
|
|
368 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
368 |
|
Investigation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
394 |
|
|
|
394 |
|
Adjusted operating income
(loss) |
$ |
15,725 |
|
|
$ |
12,756 |
|
|
$ |
7,985 |
|
|
$ |
7,849 |
|
|
$ |
(11,821 |
) |
|
$ |
32,494 |
|
% of revenues |
|
6.2 |
% |
|
|
12.9 |
% |
|
|
8.8 |
% |
|
|
13.3 |
% |
|
|
|
|
6.5 |
% |
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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