Company Achieves Record Revenue and Net
Income for 2015
Core Molding Technologies, Inc. (NYSE MKT:CMT) (“Core Molding”
or “the Company”) today announced results for the fourth quarter
and full year ended December 31, 2015.
Fourth Quarter 2015 Compared to Fourth
Quarter 2014:
- Net sales were $46.6 million compared
to $44.4 million.
- Product sales were $43.5 million
compared to $42.6 million.
- Gross margin was 17.0% compared to
17.6%.
- Operating income was $3.5 million
compared to $4.0 million.
- Net income was $2.3 million, or $0.31
per diluted share, compared with $2.6 million, or $0.34 per diluted
share.
Full Year 2015 Compared to Full Year
2014:
- Net sales were $199.1 million compared
to $175.2 million.
- Product sales were $189.1 million
compared to $169.7 million.
- Gross margin was 18.2% compared to
17.2%.
- Operating income was $18.5 million
compared to $14.6 million.
- Net income was $12.1 million, or $1.58
per diluted share, compared with $9.6 million, or $1.28 per diluted
share.
“We achieved record sales, net income and earnings per share in
2015,” stated Kevin L. Barnett, President and Chief Executive
Officer of Core Molding. “Our strong year-over-year sales growth
was due, in part, to the launch of several new programs with
existing customers as well as an overall increase in customer
demand. Additionally, our March 2015 acquisition of CPI Binani
provided us with new production capabilities in direct long-fiber
thermoplastics, along with new customers in several industries and
incremental revenue. We generated record net income as a result of
the overall sales increase and an improvement in profitability
which pushed net income as a percent of sales to 6.1% in 2015
compared to 5.5% in 2014. While the second half of 2015 was
impacted by a slowdown in demand by our truck customers, we still
managed to produce solid overall results in the fourth
quarter.”
Outlook
Mr. Barnett continued, "Looking at full year 2016, industry
sources forecast a decline in production of Class 8 trucks of
approximately 20%, which represents a relatively moderate
down-cycle compared to the slowdowns experienced in the past two
decades. While truck sales continue to represent more than 75% of
our total sales, we expect our increasing end market
diversification efforts, aided by our CPI Binani acquisition, along
with other strategic investments we have made in new process
offerings, to partially offset the impact of the truck production
slowdown. Over the long term, we believe we are well positioned to
deliver profitable growth as we continue to diversify our markets,
materials and processes and drive operational enhancements.”
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,” “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.
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 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; 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 Company’s 2015 Annual Report to stockholders
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 Year Ended 12/31/2015
12/31/2014 12/31/2015 12/31/2014 Product Sales $
43,492 $ 42,592 $ 189,103 $ 169,744 Tooling Sales 3,072
1,822 9,965 5,460 Net Sales 46,564 44,414 199,068
175,204 Cost of Sales 38,630 36,619 162,816
145,018 Gross Margin 7,934 7,795 36,252 30,186 Selling, General and
Admin. Expense 4,460 3,841 17,754 15,539
Operating Income 3,474 3,954 18,498 14,647 Interest Expense, net 94
22 330 122 Income before Taxes 3,380 3,932
18,168 14,525 Income Tax Expense 1,049 1,366 6,118
4,891 Net Income $ 2,331 $ 2,566 $ 12,050
$ 9,634 Net Income Per Common Share Basic $ 0.31 $
0.34 $ 1.59 $ 1.28 Diluted $ 0.31 $ 0.34 $ 1.58 $ 1.28 Weighted
Average Shares Outstanding Basic 7,597 7,556 7,583 7,508 Diluted
7,625 7,586 7,623 7,553
Condensed
Consolidated Balance Sheets
(in thousands)
As of12/31/2015(Unaudited)
As of12/31/2014
Assets: Cash $ 8,943 $ 2,312
Accounts Receivable
36,886 34,360
Inventories
13,697 11,635 Other Current Assets 3,158 6,316 Property, Plant and
Equipment, net 74,103 61,995 Goodwill 2,403 1,097 Intangibles, net
613 — Total Assets $ 139,803 $ 117,715
Liabilities and Stockholders' Equity Current Portion of Long-term
Debt and Interest Rate Swaps $ 3,716 $ 4,516 Accounts Payable
13,481 9,256 Compensation and Related Benefits 8,474 7,087 Tooling
in Progress 2,271 8,068 Accrued Liabilities and Other 2,120 1,388
Long-Term Debt and Interest Rate Swaps 9,750 717
Deferred Tax Liability
2,252 1,365 Post Retirement Benefits Liability 9,006 9,172
Stockholders' Equity 88,733 76,146 Total Liabilities and
Stockholders' Equity $ 139,803 $ 117,715
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160310005771/en/
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.comorAlex Kovtun, (212)
836-9620akovtun@equityny.comwww.theequitygroup.com
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