• CVG Reports Second Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 03 авг 2021 15:41:45   America/Chicago

    Quarterly Sales of $257.9 million, EPS $0.16, Adjusted EPS $0.33

    Estimated $129 million of Net New Annualized Business Secured Year to Date

    NEW ALBANY, Ohio, Aug. 03, 2021 (GLOBE NEWSWIRE) --  CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its second quarter ended June 30, 2021.

    Second Quarter 2021 Highlights (Compared with prior-year period, where comparisons are noted)

    • Revenue of $257.9 million, up 103.3% and up sequentially 5.2% from the record Q1 2021 revenue. The increase year over year is primarily driven by a very weak Covid impacted Q2 2020 comparable, new business wins in Warehouse Automation and demand growth in North American OEM truck.
    • Operating Income of $16.3 million, up $26.8 million primarily due to a very weak Covid-impacted Q2 2020 comparable and higher sales volume in Q2 2021.
    • Adjusted operating income of $16.6 million, up $20.2 million due to higher sales volume and an improved cost structure driven by 2020 restructuring actions.
    • Net income of $5.1 million, or $0.16 per diluted share. Excluding debt refinancing and other costs, adjusted net income was $10.7 million, or $0.33 per diluted share, an increase of $0.57 per share.
    • Adjusted EBITDA of $21.6 million, up $20.4 million due to higher sales volumes when compared to a very weak Covid impacted Q2 2020 comparable, lower costs and improved sales mix.
    • Warehouse automation revenues grew to $52.3 million, representing 20.3% of consolidated sales in Q2 2021.
    • Estimated $129.0 million of net new annualized business secured year to date, driven by electric vehicle platform wins as well as wins in warehouse automation, recreation and specialty vehicle markets.
    • During the quarter, the Company refinanced its debt with a new bank group with a flexible design that enables us to have up to $200 million of borrowing capacity and reduction of interest expense by $3.1 million per quarter, on a full quarter basis. This is a major milestone in our business transformation program.

    Harold Bevis, President and Chief Executive Officer of CVG, said, “Our results are continuing confirmation that our strategic initiatives to transform CVG into a secular growth business are taking hold. We are diversifying our customer base and expanding our end market coverage to mitigate cyclicality as we strive to transform CVG into a secular growth business. This transformation is being driven by Warehouse Automation which delivered 25% sequential growth and now represents 20% of total Company sales in the second quarter. We are also having strong success winning new business in the Electric Vehicle sector with multiple new wins and new products in the quarter across our business portfolio in this important end market. Currently, we are working with 25 electric vehicle OEM’s on 52 opportunities and believe we are well positioned for the transition in to electric vehicles away from internal combustion engine vehicles. Year to date, we have achieved approximately $129.0 million of net new annualized business awards; a majority of which are in the EV sector and, we believe, provides visibility for future revenue growth.”

    Chris Bohnert, Chief Financial Officer, commented, "While we continued to deliver record results in the second quarter, we also remained focused on driving financial flexibility and improved operational gains. During the quarter, we refinanced our debt which saved us $2.5 million compared to the prior year period and will provide $3.1 million of interest savings, on a full quarter basis. This refinancing also provides flexibility to invest in our strong sales growth and new business opportunities. Our margins will remain a focus in the second half of the year as we continue to implement actions such as material substitutions, increased supplier communications and production schedule adjustments to overcome material and labor shortages and commodity cost pressures we are experiencing.”

    Second Quarter Financial Results

    (amounts in millions except per share data and percentages)

     Second Quarter    
     2021 2020 $ Change % Change
    Revenues$257.9  $126.9   $131.0  103.3%
    Gross profit$34.4  $6.5   $27.9  429.2%
    Gross margin13.3% 5.1 %    
    Adjusted gross profit 1$34.4  $8.5   $25.9  304.7%
    Adjusted gross margin 113.3% 6.7 %    
    Operating income (loss)$16.3  $(10.5)  $26.8  NM 2
    Operating margin6.3% (8.3)%    
    Adjusted operating income (loss) 1$16.6  $(3.6)  $20.2  NM 2
    Adjusted operating margin 16.4% (2.8)%    
    Net income (loss)$5.1  $(12.5)  $17.6  NM 2
    Adjusted net income (loss) 1$10.7  $(7.3)  $18.0  NM 2
    Earnings (loss) per share, diluted$0.16  $(0.40)  $0.56  NM 2
    Adjusted earnings (loss) per share, diluted 1$0.33  $(0.24)  $0.57  NM 2
    Adjusted EBITDA 1$21.6  $1.2   $20.4  1700.0%
    Adjusted EBITDA margin 18.4% 1.0 %    
    1 See Appendix A for GAAP to Non-GAAP reconciliation    
    2 Not meaningful    

    Consolidated Results of Operations

    Second Quarter 2021 Results

    • Second quarter 2021 revenues were $257.9 million compared to $126.9 million in the prior year period, an increase of 103.3%. The increase in revenues is primarily driven by a very weak Covid impacted Q2 2020 comparable, new business wins in Warehouse Automation and demand growth in North American OEM truck. Foreign currency translation also favorably impacted second quarter of 2021 revenues by $6.8 million, or by 5.4%.
    • Operating income for the second quarter of 2021 was $16.3 million compared to an operating loss of $10.5 million in the prior year period. The increase in operating income is primarily attributable to higher sales volume and an improved cost structure. The second quarter of 2021 adjusted operating income was $16.6 million, excluding special charges.
    • Interest associated with debt and other expenses was $2.8 million and $5.3 million for the second quarter ended June 30, 2021 and 2020, respectively. The decrease in interest was primarily the result of the refinancing of the company's debt on April 30, 2021.
    • Net income was $5.1 million, or $0.16 per diluted share, for the second quarter of 2021 compared to a net loss of $12.5 million, or $(0.40) per diluted share, in the prior year period. Net income included a $7.2 million charge (on a pre-tax basis) for the debt refinancing occurring in the quarter.

    At June 30, 2021, the Company had $35.5 million outstanding borrowings on its revolving credit facility, $41.0 million of cash and $88.1 million of availability from the revolving credit facility, resulting in total liquidity of $129.1 million.

    Segment Results

    Electrical Systems Segment

    Second Quarter 2021 Results

    • Revenues for the Electrical Systems segment in the second quarter 2021 were $175.1 million compared to $74.2 million in the prior year period, an increase of 136.0% primarily as a result of a very weak Covid impacted Q2 2020, business growth in warehouse automation and improved demand in the global wire harness business, especially construction equipment. Foreign currency translation favorably impacted second quarter 2021 revenues by $2.7 million, or by 3.6%.
    • Operating income for the second quarter of 2021 was $18.6 million compared to operating loss of $6.2 million in the prior year period. The increase in operating income was primarily attributable to increased sales due to a very weak Covid impacted Q2 2020.

    Global Seating Segment

    Second Quarter 2021 Results

    • Revenues for the Global Seating segment in the second quarter of 2021 were $84.9 million compared to $53.9 million in the prior year period, an increase of 57.6% due to a very weak Covid impacted Q2 2020 and the improving global commercial vehicle end markets, particularly in Asia Pacific and Europe. Foreign currency translation favorably impacted second quarter 2021 revenues by $4.1 million, or by 7.7%.
    • Operating income for the second quarter of 2021 was $5.0 million compared to $1.5 million in the prior year period. The increase in operating income was primarily attributable to higher sales volume due to a very weak Covid impacted Q2 2020.

    2021 Demand Outlook

    The demand outlook for the Company's key markets are favorable.

    • According to a July 2021 report by ACT Research, a publisher of industry market research, 2020 North American Class 8 truck build production was 214,250 units and Class 5-7 production was 223,721 units. 2021 North American Class 8 truck production levels are expected to be at 314,000 units and Class 5-7 production are expected to be at 250,000 units. This outlook supports demand for the Company’s vehicle products.
    • The demand outlook for the Company’s entrance into the electric vehicle market is favorable. Many global electric vehicle platforms are underway across the spectrum of vehicle types. Adoption rates are forecast to increase and supports continuance of the Company's efforts aimed at partnering with Electric Vehicle makers to help them develop and produce these vehicles and make use of the Company’s full product basket of the following: entire electrical systems for the chassis and powertrain, seating solutions, headliners, interior trim, mirrors, wipers, floor mats, and road sensors.
    • The demand outlook for the Company’s warehouse automation products is favorable. According to LogisticsIQ, demand for warehouse automation products is expected to grow approximately 14% annually through 2026. This outlook supports demand for the Company's warehouse automation products.

    GAAP to Non-GAAP Reconciliation

    A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A & B to this release.

    Conference Call

    A conference call to discuss this press release is scheduled for Wednesday, August 4, 2021, at 10:00 a.m. ET. Management intends to reference the Q2 2021 Earnings Call Presentation during the conference call. To participate, dial (833) 235-5650 using conference code 6090559. International participants dial (647) 689-4139 using conference code 6090559.  

    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, dial (800) 585-8367 using access code 6090559 and international callers can dial (416) 621-4642 using access code 6090559.  

    Company Contact

    Christopher H. Bohnert
    Chief Financial Officer
    CVG
    IR@cvgrp.com

    About CVG

    CVG is a global provider of components and assemblies into two primary end markets – the global vehicle market and the U.S. technology integrator markets. The company provides components and assemblies to global vehicle companies to build original equipment and provides aftermarket products for fleet owners. The company also provides mechanical assemblies to warehouse automation integrators and to U.S. military technology integrators.

    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, 2021 and 2020

    (Unaudited)

    (Amounts in thousands, except per share amounts)

     Three Months Ended  Six Months Ended
     June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
    Revenues$257,941  $126,896  $503,063  $314,001 
    Cost of revenues223,573  120,421  437,574  287,223 
    Gross profit34,368  6,475  65,489  26,778 
    Selling, general and administrative expenses18,039  16,840  33,757  34,799 
    Goodwill and other impairment  150    29,017 
    Operating income (loss)16,329  (10,515) 31,732  (37,038)
    Other (income) expense(285) (205) (941) 536 
    Interest expense2,818  5,309  7,859  9,933 
    Loss on extinguishment of debt7,155    7,155   
    Income (loss) before provision for income taxes6,641  (15,619) 17,659  (47,507)
    Provision (benefit) for income taxes1,546  (3,122) 4,074  (10,416)
    Net income (loss)$5,095  $(12,497) $13,585  $(37,091)
    Earnings (loss) per Common Share:       
    Basic$0.16  $(0.40) $0.43  $(1.20)
    Diluted$0.16  $(0.40) $0.42  $(1.20)
    Weighted average shares outstanding:       
    Basic31,458  30,890  31,361  30,848 
    Diluted32,674  30,890  32,654  30,848 
                

    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS

    (Unaudited)

    (Amounts in thousands, except per share amounts)

    ASSETSJune 30, 2021 December 31, 2020
    Current assets:   
    Cash$40,971  $50,503 
    Accounts receivable, net of allowances of $610 and $644, respectively202,058  151,101 
    Inventories128,319  91,247 
    Other current assets21,650  17,686 
    Total current assets392,998  310,537 
    Property, plant and equipment, net61,262  62,776 
    Intangible assets, net20,028  21,804 
    Deferred income taxes24,678  25,981 
    Other assets, net30,989  33,275 
    Total assets$529,955  $454,373 
    LIABILITIES AND STOCKHOLDERS' EQUITY   
    Current liabilities:   
    Accounts payable$141,797  $112,402 
    Accrued liabilities and other46,501  50,056 
    Current portion of long-term debt7,500  2,429 
    Total current liabilities195,798  164,887 
    Long-term debt177,225  144,147 
    Pension and other post-retirement benefits13,909  15,296 
    Other long-term liabilities31,386  34,673 
    Total liabilities$418,318  $359,003 
    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; 31,569,749 and 31,249,811 shares issued and outstanding respectively)316  313 
    Treasury stock, at cost: 1,567,654 and 1,560,623 shares, respectively(11,966) (11,893)
    Additional paid-in capital252,478  249,312 
    Retained deficit(83,771) (97,356)
    Accumulated other comprehensive loss(45,420) (45,006)
    Total stockholders’ equity111,637  95,370 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$529,955  $454,373 
            

    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

    BUSINESS SEGMENT FINANCIAL INFORMATION

    (Unaudited)

    (Amounts in thousands)

     Three Months Ended June 30,
     Electrical Systems Global Seating Corporate / Other Total
     2021 2020 2021 2020 2021 2020 2021 2020
    Revenues               
    External revenues$174,104  $73,498  $83,837  $53,398  $  $  $257,941  $126,896 
    Intersegment revenues1,000  712  1,061  464  (2,061) (1,176)    
    Total revenues$175,104  $74,210  $84,898  $53,862  $(2,061) $(1,176) $257,941  $126,896 
    Gross profit23,776  1,144  10,594  5,345  (2) (14) 34,368  6,475 
    Selling, general & administrative expenses5,224  7,309  5,611  3,810  7,204  5,721  18,039  16,840 
    Goodwill and other impairment          150    150 
    Operating income (loss)$18,552  $(6,165) $4,983  $1,535  $(7,206) $(5,885) $16,329  $(10,515)
                                    


     Six Months Ended June 30,
     Electrical Systems Global Seating Corporate / Other Total
     2021 2020 2021 2020 2021 2020 2021 2020
    Revenues               
    External revenues$333,792  $184,665  $169,271  $129,336  $  $  $503,063  $314,001 
    Intersegment revenues3,554  1,643  6,721  506  (10,275) (2,149)    
    Total revenues$337,346  $186,308  $175,992  $129,842  $(10,275) $(2,149) $503,063  $314,001 
    Gross profit44,048  12,090  21,482  14,714  (41) (26) 65,489  26,778 
    Selling, general & administrative expenses10,627  11,989  10,955  8,733  12,175  14,077  33,757  34,799 
    Goodwill and other impairment  23,415    4,809    793    29,017 
    Operating income (loss)$33,421  $(23,314) $10,527  $1,172  $(12,216) $(14,896) $31,732  $(37,038)
                                    

    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, 2021 June 30, 2020 June 30, 2021 June 30, 2020
    Gross profit$34,368  $6,475  $65,489  $26,778 
    Restructuring  2,021    2,152 
    Adjusted gross profit$34,368  $8,496  $65,489  $28,930 
    % of revenues13.3% 6.7% 13.0% 9.2%


     Three Months Ended Six Months Ended
     June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
    Operating income (loss)$16,329  $(10,515)  $31,732  $(37,038) 
    Restructuring  2,944     3,115  
    Deferred consideration purchase accounting120  3,461   368  3,461  
    Investigation200  408   394  2,784  
    CEO transition       2,256  
    Impairment of goodwill and long-lived assets  150     29,017  
    Total operating income (loss) adjustments320  6,963   762  40,633  
    Adjusted operating income (loss)$16,649  $(3,552)  $32,494  $3,595  
    % of revenues6.5% (2.8)% 6.5% 1.1 %


     Three Months Ended Six Months Ended
     June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
    Net income (loss)$5,095  $(12,497) $13,585  $(37,091)
    Operating income (loss) adjustments320  6,963  762  40,633 
    Loss on extinguishment of debt7,155    7,155   
    Adjusted (benefit) provision for income taxes1(1,869) (1,741) (1,979) (10,158)
    Adjusted net income (loss)$10,701  $(7,275) $19,523  $(6,616)
            
    Diluted EPS$0.16  $(0.40) $0.42  $(1.20)
    Adjustments to diluted EPS$0.17  $0.16  $0.18  $0.99 
    Adjusted diluted EPS$0.33  $(0.24) $0.60  $(0.21)
    1. Reported Tax (Benefit) Provision adjusted for tax effect of special charges at 25%

     Three Months Ended Six Months Ended
     June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
    Net income (loss)$5,095  $(12,497)  $13,585  $(37,091) 
    Interest expense2,818  5,309   7,859  9,933  
    Provision (benefit) for income taxes1,546  (3,122)  4,074  (10,416) 
    Depreciation expense3,807  3,729   7,588  7,509  
    Amortization expense859  856   1,720  1,716  
    Impairment of goodwill and long-lived assets  150     29,017  
    EBITDA$14,125  $(5,575)  $34,826  $668  
    % of revenues5.5% (4.4)% 6.9% 0.2 %
            
    EBITDA adjustments       
    Restructuring$  $2,944   $  $3,115  
    Deferred consideration purchase accounting120  3,461   368  3,461  
    Investigation200  408   394  2,784  
    CEO transition       2,256  
    Loss on extinguishment of debt7,155     7,155    
    Adjusted EBITDA$21,600  $1,238   $42,743  $12,284  
    % of revenues8.4% 1.0 % 8.5% 3.9 %
                  

    COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
    Appendix B: Segment Reconciliation of GAAP to Non-GAAP Financial Measures

    (Unaudited)

    (Amounts in thousands, except percentages)

     Three Months Ended June 30, 2021
     Electrical
    Systems
     Global
    Seating
     Corporate Total
    Operating income (loss)$18,552  $4,983  $(7,206) $16,329 
    Deferred consideration purchase accounting120      120 
    Investigation    200  200 
    Adjusted operating income (loss)$18,672  $4,983  $(7,006) $16,649 
    % of revenues10.7% 5.9%   6.5%


     Six Months Ended June 30, 2021
     Electrical
    Systems
     Global
    Seating
     Corporate /
    Other
     Total
    Operating income (loss)$33,421  $10,527  $(12,216) $31,732 
    Deferred consideration purchase accounting368      368 
    Investigation    394  394 
    Adjusted operating income (loss)$33,789  $10,527  $(11,822) $32,494 
    % of revenues10.0% 6.0%   6.5%


     Three Months Ended June 30, 2020
     Electrical
    Systems
     Global
    Seating
     Corporate /
    Other
     Total
    Operating income (loss)$(6,165)  $1,535  $(5,885) $(10,515) 
    Deferred consideration purchase accounting3,461       3,461  
    Restructuring1,986   546  412  2,944  
    Investigation     408  408  
    Impairment of goodwill and long-lived assets     150  150  
    Adjusted operating income (loss)$(718)  $2,081  $(4,915) $(3,552) 
    % of revenues(1.0)% 3.9%   (2.8)%


     Six Months Ended June 30, 2020
     Electrical
    Systems
     Global
    Seating
     Corporate /
    Other
     Total
    Operating income (loss)$(23,314)  $1,172  $(14,896) $(37,038) 
    Deferred consideration purchase accounting3,461       3,461  
    Restructuring1,986   677  452  3,115  
    Investigation     2,784  2,784  
    CEO transition     2,256  2,256  
    Impairment of goodwill and long-lived assets23,415   4,809  793  29,017  
    Adjusted operating income (loss)$5,548   $6,658  $(8,611) $3,595  
    % of revenues3.0 % 5.1%   1.1 %

    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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