CVG Reports Second Quarter 2024 Results
CVG reported Q2 2024 results with revenues of $229.9 million, down 12.3% year-over-year. The company posted a net loss of $1.6 million, or $(0.05) per diluted share, compared to net income of $10.1 million in Q2 2023. Adjusted EBITDA was $10.0 million, down 51.9%, with a margin of 4.3%.
Key factors impacting results included softening demand in construction and agricultural markets, reduced volumes in new business launches, and operational inefficiencies. CVG announced the sale of its Cab Structures Business and is evaluating strategic alternatives for its Industrial Automation segment. The company has revised its 2024 outlook, now projecting net sales of $900-$960 million and adjusted EBITDA of $42-$52 million.
CVG ha riportato i risultati del secondo trimestre del 2024 con ricavi di 229,9 milioni di dollari, in calo del 12,3% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 1,6 milioni di dollari, ovvero $(0,05) per azione diluita, rispetto a un utile netto di 10,1 milioni di dollari nel secondo trimestre del 2023. L'EBITDA rettificato è stato di 10,0 milioni di dollari, in calo del 51,9%, con un margine del 4,3%.
I fattori chiave che hanno influenzato i risultati includono la diminuzione della domanda nei mercati delle costruzioni e dell'agricoltura, riduzioni dei volumi nelle nuove iniziative commerciali e inefficienze operative. CVG ha annunciato la vendita della sua divisione Cab Structures e sta valutando alternative strategiche per il suo segmento di Automazione Industriale. L'azienda ha rivisto le sue previsioni per il 2024, ora prevedendo vendite nette di 900-960 milioni di dollari e un EBITDA rettificato di 42-52 milioni di dollari.
CVG reportó los resultados del segundo trimestre de 2024 con ingresos de 229,9 millones de dólares, una disminución del 12,3% en comparación con el año anterior. La compañía tuvo una pérdida neta de 1,6 millones de dólares, o $(0,05) por acción diluida, en comparación con una ganancia neta de 10,1 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado fue de 10,0 millones de dólares, una caída del 51,9%, con un margen del 4,3%.
Los factores clave que impactaban los resultados incluían la disminución de la demanda en los mercados de construcción y agrícola, reducciones en los volúmenes de nuevos lanzamientos comerciales y eficiencias operativas. CVG anunció la venta de su negocio de Estructuras de Cabinas y está evaluando alternativas estratégicas para su segmento de Automatización Industrial. La compañía ha revisado sus previsiones para 2024, proyectando ahora ventas netas de 900-960 millones de dólares y un EBITDA ajustado de 42-52 millones de dólares.
CVG는 2024년 2분기 실적을 보고하며 2억 2,990만 달러의 매출을 기록했으며, 이는 전년 대비 12.3% 감소한 수치입니다. 회사는 160만 달러의 순손실을 기록했으며, 희석 주당 $(0.05)입니다. 이는 2023년 2분기 순이익 1,010만 달러에 비해 하락한 수치입니다. 조정된 EBITDA는 1천만 달러로 51.9% 감소했으며, 마진은 4.3%입니다.
결과에 영향을 미친 주요 요인은 건설 및 농업 시장 수요의 약세, 새로운 사업 출시에서의 거래량 감소, 운영 비효율성이었습니다. CVG는 자신의 캐빈 구조 사업을 매각한다고 발표했으며, 산업 자동화 부문의 전략적 대안을 평가하고 있습니다. 회사는 2024년 전망을 수정하여 현재 순매출을 9억~9억 6천만 달러, 조정된 EBITDA를 4천2백만~5천2백만 달러로 예상하고 있습니다.
CVG a annoncé les résultats du deuxième trimestre 2024 avec des revenus de 229,9 millions de dollars, en baisse de 12,3% par rapport à l'année précédente. L'entreprise a enregistré une perte nette de 1,6 million de dollars, soit $(0,05) par action diluée, contre un bénéfice net de 10,1 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté était de 10,0 millions de dollars, en baisse de 51,9%, avec une marge de 4,3%.
Les principaux facteurs ayant influencé les résultats comprenaient un affaiblissement de la demande sur les marchés de la construction et de l'agriculture, des volumes réduits dans les nouveaux lancements commerciaux et des inefficacités opérationnelles. CVG a annoncé la vente de son activité Cab Structures et évalue des alternatives stratégiques pour son segment d'automatisation industrielle. L'entreprise a révisé ses prévisions pour 2024, projetant désormais des ventes nettes de 900 à 960 millions de dollars et un EBITDA ajusté de 42 à 52 millions de dollars.
CVG meldete die Ergebnisse des zweiten Quartals 2024 mit Einnahmen von 229,9 Millionen Dollar, was einem Rückgang von 12,3% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 1,6 Millionen Dollar, oder $(0,05) pro verwässerter Aktie, im Vergleich zu einem Nettogewinn von 10,1 Millionen Dollar im zweiten Quartal 2023. Das bereinigte EBITDA betrug 10,0 Millionen Dollar, was einem Rückgang von 51,9% entspricht, mit einer Marge von 4,3%.
Wesentliche Faktoren, die die Ergebnisse beeinflussten, waren die nachlassende Nachfrage in den Bau- und Agrarmärkten, reduzierte Volumina bei neuen Geschäftseinführungen und operationale Ineffizienzen. CVG gab die Veräußerung seines Geschäftsbereichs Kabinenstrukturen bekannt und prüft strategische Alternativen für sein Segment der industriellen Automatisierung. Das Unternehmen hat seine Prognose für 2024 überarbeitet und rechnet jetzt mit Nettoumsätzen von 900-960 Millionen Dollar sowie einem bereinigten EBITDA von 42-52 Millionen Dollar.
- New business wins of $32 million in Q2, bringing year-to-date total to $80 million
- Free cash flow of $6.4 million in Q2
- Strong liquidity position with $192.2 million available
- Headcount reduced by more than 10% as part of cost-cutting measures
- Sale of Cab Structures Business expected to close in H2 2024, aligning with transformation strategy
- Revenues down 12.3% year-over-year to $229.9 million
- Net loss of $1.6 million compared to net income of $10.1 million in Q2 2023
- Adjusted EBITDA down 51.9% to $10.0 million
- Operating income decreased 95.2% to $0.8 million
- Lowered full-year 2024 guidance for net sales and adjusted EBITDA
Insights
CVG's Q2 2024 results show significant challenges, with revenues down
Key concerns include:
- Adjusted EBITDA margin shrinking to
4.3% from7.9% - Operating income plummeting
95.2% to$0.8 million - Revised 2024 outlook with lower revenue and EBITDA projections
However, there are some positive aspects:
$32 million in new business wins- Strategic sale of Cab Structures Business to streamline portfolio
- Ongoing cost reduction efforts, including a
10% headcount reduction
Investors should closely monitor CVG's ability to navigate market challenges and execute its transformation strategy.
The global softening in construction and agricultural markets is significantly impacting CVG's performance. Industry projections indicate:
- Global agriculture market demand expected to decline
15% to20% in 2024 - Construction market demand projected to decrease
10% to15% - North American Class 8 truck production forecast at 308,000 units for 2024, down from 340,247 in 2023
These market trends are reflected in CVG's segment performance:
- Vehicle Solutions revenue down
7.7% - Electrical Systems revenue decreased
21.2% - Aftermarket & Accessories revenue declined
8.1% - Industrial Automation revenue dropped
44.6%
The company's strategic focus on reducing cyclicality and balancing customer concentration is important in this challenging environment. The sale of the Cab Structures Business and potential divestment of Industrial Automation align with this strategy, potentially improving long-term resilience.
EPS of
Adjusted EBITDA of
Strategic actions taken to strengthen Vehicle Solutions Business
Provides updated guidance for full year 2024
NEW ALBANY, Ohio, Aug. 05, 2024 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its second quarter ended June 30, 2024.
Second Quarter 2024 Highlights (Compared with prior year, where comparisons are noted)
- Revenues of
$229.9 million , down12.3% , due primarily to a global softening in customer demand. - Operating income of
$0.8 million , down95.2% ; adjusted operating income of$5.7 million , down65.9% . The decrease in operating income was driven primarily by lower sales volumes, partially offset by reduced SG&A. - New business wins in the quarter of approximately
$32 million when fully ramped, bringing the year-to-date total to$80 million ; these wins were concentrated in our Electrical Systems segment, and includes meaningful wins in our Vehicle Solutions segment. - Net loss of
$1.6 million , or$(0.05) per diluted share and adjusted net income of$2.1 million , or$0.06 per diluted share, compared to net income of$10.1 million , or$0.30 per diluted share and adjusted net income of$10.7 million , or$0.32 per diluted share. - Adjusted EBITDA of
$10.0 million , down51.9% , with an adjusted EBITDA margin of4.3% , down from7.9% .
James Ray, President and Chief Executive Officer, said, “CVG continues to drive its strategic transformation, despite second quarter results that were challenged due to multiple factors. In particular, we witnessed continued softening in the construction and agricultural end markets and reduced volumes in our new business win launches, impacting our key growth segment in Electrical Systems. We also experienced operational inefficiencies in our Vehicle Solutions segment resulting from a new product launch with a major customer across multiple sites as well as activities to prepare our Cab Structures Business for sale. We made incremental investments in both internal and external support teams deployed to the affected facilities and expect to achieve more stability during the balance of the year. These market dynamics and operational activities weighed on second quarter profitability. While we are disappointed with our second quarter performance, we are taking proactive steps to right-size our cost structure and improve operational execution as we navigate a lower demand environment.”
Mr. Ray concluded, “Despite these challenges in the second quarter, we continue to position CVG for future success. We maintained our strong track record of procuring new business wins in the quarter and recently announced the sale of our Cab Structures Business, that is expected to close in the second half of 2024, which will serve to further streamline our product portfolio and aligns with our transformation strategy to reduce cyclicality, balance customer concentration, and strengthen our Vehicle Solutions business. We expect the trend of OEM’s insourcing components of their cab manufacturing to continue, so monetizing the facility now will create value for shareholders and will allow us to redeploy capital in key areas to improve our operating model. Strategic actions like this one, combined with our ongoing cost reduction and business optimization efforts, are expected to position CVG to benefit from the anticipated improvement in market conditions.”
Andy Cheung, Chief Financial Officer, added, “We are taking swift action to respond to the end market and operational challenges through restructuring and headcount reduction efforts to improve profitability. We’ve incurred
Second Quarter Financial Results
(amounts in millions except per share data and percentages)
| Second Quarter | ||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||
| Revenues | $ | 229.9 | $ | 262.2 | $ | (32.3 | ) | (12.3 | )% | |||||
| Gross profit | $ | 21.0 | $ | 38.4 | $ | (17.4 | ) | (45.3 | )% | |||||
| Gross margin | 9.1 | % | 14.6 | % | ||||||||||
| Adjusted gross profit 1 | $ | 25.6 | $ | 39.1 | $ | (13.5 | ) | (34.5 | )% | |||||
| Adjusted gross margin 1 | 11.1 | % | 14.9 | % | ||||||||||
| Operating income | $ | 0.8 | $ | 15.9 | $ | (15.1 | ) | (95.0 | )% | |||||
| Operating margin | 0.3 | % | 6.1 | % | ||||||||||
| Adjusted operating income 1 | $ | 5.7 | $ | 16.7 | $ | (11.0 | ) | (65.9 | )% | |||||
| Adjusted operating margin 1 | 2.5 | % | 6.4 | % | ||||||||||
| Net income (loss) | $ | (1.6 | ) | $ | 10.1 | $ | (11.7 | ) | (115.8 | )% | ||||
| Adjusted net income 1 | $ | 2.1 | $ | 10.7 | $ | (8.6 | ) | (80.4 | )% | |||||
| Earnings (loss) per share, diluted | $ | (0.05 | ) | $ | 0.30 | $ | (0.35 | ) | (116.7 | )% | ||||
| Adjusted earnings per share, diluted 1 | $ | 0.06 | $ | 0.32 | $ | (0.26 | ) | (81.3 | )% | |||||
| Adjusted EBITDA 1 | $ | 10.0 | $ | 20.8 | $ | (10.8 | ) | (51.9 | )% | |||||
| Adjusted EBITDA margin 1 | 4.3 | % | 7.9 | % | ||||||||||
| 1 See Appendix A for GAAP to Non-GAAP reconciliation | ||||||||||||||
Consolidated Results
Second Quarter 2024 Results
- Second quarter 2024 revenues were
$229.9 million , compared to$262.2 million in the prior year period, a decrease of12.3% . The overall decrease in revenues was due to a softening in customer demand impacting all segments and the wind-down of certain programs in our Vehicle Solutions segment. - Operating income in the second quarter 2024 was
$0.8 million compared to$15.9 million in the prior year period. The decrease in operating income was attributable to the impact of lower sales volumes, operational inefficiencies and increased restructuring charges. Second quarter 2024 adjusted operating income was$5.7 million , compared to$16.7 million in the prior year period. - Interest associated with debt and other expenses was
$2.5 million and$2.8 million for the second quarter 2024 and 2023, respectively. - Net loss was
$1.6 million , or$(0.05) per diluted share, for the second quarter 2024 compared to net income of$10.1 million , or$0.30 per diluted share, in the prior year period.
On June 30, 2024, the Company had
Second Quarter 2024 Segment Results
Vehicle Solutions Segment
- Revenues were
$140.9 million compared to$152.7 million for the prior year period, a decrease of7.7% , due to lower customer demand and the wind-down of certain operations. - Operating income was
$5.1 million , compared to$14.1 million in the prior year period, a decrease of64.1% , primarily attributable to lower customer demand, operational remediation investments, and increased freight costs partially offset by lower SG&A. Second quarter 2024 adjusted operating income was$8.3 million compared to$14.5 million in the prior year period.
Electrical Systems Segment
- Revenues were
$50.2 million compared to$63.6 million in the prior year period, a decrease of21.2% , primarily due to a global softening in the Construction & Agriculture end-markets and the phase out of certain lower margin business. - Operating income was
$0.5 million compared to$7.7 million in the prior year period, a decrease of93.4% . The decrease in operating income was primarily attributable to lower customer demand, restructuring costs, labor inflation, and unfavorable foreign exchange impacts. Second quarter 2024 adjusted operating income was$1.9 million compared to$7.7 million in the prior year period.
Aftermarket & Accessories Segment
- Revenues were
$33.9 million compared to$36.8 million in the prior year period, a decrease of8.1% , primarily as a result of lower sales volume due to decreased customer demand and the reduction of backlog in the prior period. - Operating income was
$4.5 million compared to$5.5 million in the prior year period, a decrease of19.4% . The decrease in operating income was primarily attributable to lower sales volumes, product mix and higher labor and benefit costs. Second quarter 2024 adjusted operating income was$4.7 million compared to$5.5 million in the prior year period.
Industrial Automation Segment
- Revenues were
$5.0 million compared to$9.0 million in the prior year period, a decrease of44.6% , as a result of lower sales volume due to decreased customer demand. - Operating loss was
$1.0 million , compared to$2.1 million in the prior year period. The decrease in operating loss was primarily attributable to benefits from recently implemented restructuring programs. Second quarter 2024 adjusted operating loss was$0.9 million , compared to$1.7 million in the prior year period.
Outlook
CVG issued the following outlook for the full year 2024 which reflects both market developments and pending strategic portfolio actions:
| Metric | Prior 2024 Outlook | Revised 2024 Outlook | Adjusted Revised 2024 Outlook (1) |
| Net Sales | |||
| Adjusted EBITDA |
(1) This Adjusted Revised outlook excludes any contribution from CVG’s Cab Structures or Industrial Automation businesses in 2024. On July 31, 2024, CVG signed an asset purchase agreement for the sale of the Cab Structures business with closing expected in the second half of 2024. Separately, CVG is currently exploring strategic alternatives for the Industrial Automation business.
This outlook reflects, among others, current industry forecasts for North America Class 8 truck builds. According to ACT Research, 2024 North American Class 8 truck production levels are expected to be at 308,000 units. The 2023 actual Class 8 truck builds according to the ACT Research was 340,247 units.
Agriculture and construction market conditions have deteriorated relative to our prior update in March 2024. Based on industry data, we now project segments within global agriculture market demand to be down
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 Tuesday, August 6, 2024, at 8:30 a.m. ET. Management intends to reference the Q2 2024 Earnings Call Presentation during the conference call. To participate, dial (800) 549-8228 using conference code 11335. International participants dial (289) 819-1520 using conference code 11335.
This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.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 (+1) 888 660 6264 using access code 11335#.
Company Contact
Andy Cheung
Chief Financial Officer
CVG
IR@cvgrp.com
Investor Relations Contact
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com
About CVG
At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. 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 closing of the recently announced sale of its Cab Structures Business, its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction and agricultural 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.
Other Information
Throughout this document, certain numbers in the tables or elsewhere may not sum due to rounding. Rounding may have also impacted the presentation of certain year-on-year percentage changes.
| COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months and Six Months Ended June 30, 2024 and 2023 (Unaudited) (Amounts in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Revenues | $ | 229,906 | $ | 262,194 | $ | 461,974 | $ | 524,903 | |||||||
| Cost of revenues | 208,927 | 223,793 | 414,330 | 451,293 | |||||||||||
| Gross profit | 20,979 | 38,401 | 47,644 | 73,610 | |||||||||||
| Selling, general and administrative expenses | 20,219 | 22,457 | 40,312 | 43,022 | |||||||||||
| Operating income | 760 | 15,944 | 7,332 | 30,588 | |||||||||||
| Other expense | 207 | 307 | 419 | 105 | |||||||||||
| Interest expense | 2,488 | 2,804 | 4,739 | 5,694 | |||||||||||
| Income (loss) before provision for income taxes | (1,935 | ) | 12,833 | 2,174 | 24,789 | ||||||||||
| Provision (benefit) for income taxes | (334 | ) | 2,693 | 836 | 5,949 | ||||||||||
| Net income (loss) | $ | (1,601 | ) | $ | 10,140 | $ | 1,338 | $ | 18,840 | ||||||
| Earnings (loss) per Common Share: | |||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.31 | $ | 0.04 | $ | 0.57 | ||||||
| Diluted | $ | (0.05 | ) | $ | 0.30 | $ | 0.04 | $ | 0.57 | ||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 33,393 | 33,051 | 33,359 | 32,960 | |||||||||||
| Diluted | 33,393 | 33,429 | 33,834 | 33,312 | |||||||||||
| COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except per share amounts) | |||||||
| ASSETS | June 30, 2024 | December 31, 2023 | |||||
| Current assets: | |||||||
| Cash | $ | 39,341 | $ | 37,848 | |||
| Accounts receivable, net | 138,689 | 133,949 | |||||
| Inventories | 132,556 | 128,082 | |||||
| Other current assets | 35,634 | 27,863 | |||||
| Total current assets | 346,220 | 327,742 | |||||
| Property, plant and equipment, net | 75,530 | 73,468 | |||||
| Intangible assets, net | 7,743 | 11,222 | |||||
| Deferred income taxes | 34,158 | 33,568 | |||||
| Other assets, net | 39,545 | 37,214 | |||||
| Total assets | $ | 503,196 | $ | 483,214 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 100,810 | $ | 77,314 | |||
| Accrued liabilities and other | 49,557 | 52,562 | |||||
| Current portion of long-term debt and short-term debt | 17,500 | 15,313 | |||||
| Total current liabilities | 167,867 | 145,189 | |||||
| Long-term debt | 124,458 | 126,201 | |||||
| Pension and other post-retirement benefits | 9,593 | 9,196 | |||||
| Other long-term liabilities | 31,671 | 29,696 | |||||
| Total liabilities | $ | 333,589 | $ | 310,282 | |||
| Stockholders’ equity: | |||||||
| Preferred stock | $ | — | $ | — | |||
| Common stock | 334 | 333 | |||||
| Treasury stock | (16,170 | ) | (16,150 | ) | |||
| Additional paid-in capital | 267,230 | 265,217 | |||||
| Retained deficit | (44,846 | ) | (46,184 | ) | |||
| Accumulated other comprehensive loss | (36,941 | ) | (30,284 | ) | |||
| Total stockholders’ equity | 169,607 | 172,932 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 503,196 | $ | 483,214 | |||
| COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES BUSINESS SEGMENT FINANCIAL INFORMATION (Unaudited) (Amounts in thousands) | |||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| Revenues | $ | 140,904 | $ | 152,730 | $ | 50,152 | $ | 63,625 | $ | 33,860 | $ | 36,829 | $ | 4,990 | $ | 9,010 | $ | — | $ | — | $ | 229,906 | $ | 262,194 | |||||||||||||||
| Gross profit (loss) | 11,557 | 20,904 | 3,167 | 10,345 | 6,447 | 7,788 | (192 | ) | (636 | ) | — | — | 20,979 | 38,401 | |||||||||||||||||||||||||
| Selling, general & administrative expenses | 6,480 | 6,769 | 2,660 | 2,686 | 1,993 | 2,262 | 823 | 1,425 | 8,263 | 9,315 | 20,219 | 22,457 | |||||||||||||||||||||||||||
| Operating income (loss) | $ | 5,077 | $ | 14,135 | $ | 507 | $ | 7,659 | $ | 4,454 | $ | 5,526 | $ | (1,015 | ) | $ | (2,061 | ) | $ | (8,263 | ) | $ | (9,315 | ) | $ | 760 | $ | 15,944 | |||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| Revenues | $ | 278,814 | $ | 313,315 | $ | 105,947 | $ | 118,373 | $ | 67,921 | $ | 74,458 | $ | 9,292 | $ | 18,757 | $ | — | $ | — | $ | 461,974 | $ | 524,903 | |||||||||||||||
| Gross profit (loss) | 27,785 | 40,374 | 7,721 | 18,643 | 12,886 | 15,015 | (748 | ) | (422 | ) | — | — | 47,644 | 73,610 | |||||||||||||||||||||||||
| Selling, general & administrative expenses | 12,357 | 12,847 | 5,202 | 4,914 | 3,900 | 3,913 | 2,262 | 2,501 | 16,591 | 18,847 | 40,312 | 43,022 | |||||||||||||||||||||||||||
| Operating income (loss) | $ | 15,428 | $ | 27,527 | $ | 2,519 | $ | 13,729 | $ | 8,986 | $ | 11,102 | $ | (3,010 | ) | $ | (2,923 | ) | $ | (16,591 | ) | $ | (18,847 | ) | $ | 7,332 | $ | 30,588 | |||||||||||
| 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, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Gross profit | $ | 20,979 | $ | 38,401 | $ | 47,644 | $ | 73,610 | |||||||
| Restructuring | 4,670 | 683 | 6,372 | 1,373 | |||||||||||
| Adjusted gross profit | $ | 25,649 | $ | 39,084 | $ | 54,016 | $ | 74,983 | |||||||
| % of revenues | 11.2 | % | 14.9 | % | 11.7 | % | 14.3 | % | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Operating income | $ | 760 | $ | 15,944 | $ | 7,332 | $ | 30,588 | |||||||
| Restructuring | 4,928 | 718 | 6,824 | 1,431 | |||||||||||
| Total operating income adjustments | 4,928 | 718 | 6,824 | 1,431 | |||||||||||
| Adjusted operating income | $ | 5,688 | $ | 16,662 | $ | 14,156 | $ | 32,019 | |||||||
| % of revenues | 2.5 | % | 6.4 | % | 3.1 | % | 6.1 | % | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Net income (loss) | $ | (1,601 | ) | $ | 10,140 | $ | 1,338 | $ | 18,840 | ||||||
| Operating income adjustments | 4,928 | 718 | 6,824 | 1,431 | |||||||||||
| Adjusted provision for income taxes1 | (1,232 | ) | (180 | ) | (1,706 | ) | (358 | ) | |||||||
| Adjusted net income | $ | 2,095 | $ | 10,678 | $ | 6,456 | $ | 19,913 | |||||||
| Diluted EPS | $ | (0.05 | ) | $ | 0.30 | $ | 0.04 | $ | 0.57 | ||||||
| Adjustments to diluted EPS | $ | 0.11 | $ | 0.02 | $ | 0.15 | $ | 0.03 | |||||||
| Adjusted diluted EPS | $ | 0.06 | $ | 0.32 | $ | 0.19 | $ | 0.60 | |||||||
1. Reported Tax Provision adjusted for tax effect of special charges at
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Net income (loss) | $ | (1,601 | ) | $ | 10,140 | $ | 1,338 | $ | 18,840 | ||||||
| Interest expense | 2,488 | 2,804 | 4,739 | 5,694 | |||||||||||
| Provision for income taxes | (334 | ) | 2,693 | 836 | 5,949 | ||||||||||
| Depreciation expense | 3,782 | 3,547 | 7,491 | 6,977 | |||||||||||
| Amortization expense | 720 | 864 | 1,483 | 1,696 | |||||||||||
| EBITDA | $ | 5,055 | $ | 20,048 | $ | 15,887 | $ | 39,156 | |||||||
| % of revenues | 2.2 | % | 7.6 | % | 3.4 | % | 7.5 | % | |||||||
| EBITDA adjustments | |||||||||||||||
| Restructuring | $ | 4,928 | $ | 718 | $ | 6,824 | $ | 1,431 | |||||||
| Adjusted EBITDA | $ | 9,983 | $ | 20,766 | $ | 22,711 | $ | 40,587 | |||||||
| % of revenues | 4.3 | % | 7.9 | % | 4.9 | % | 7.7 | % | |||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||
| Operating income (loss) | $ | 5,077 | $ | 507 | $ | 4,454 | $ | (1,015 | ) | $ | (8,263 | ) | $ | 760 | |||||||||
| Restructuring | 3,236 | 1,379 | 197 | 116 | — | 4,928 | |||||||||||||||||
| Adjusted operating income (loss) | $ | 8,313 | $ | 1,886 | $ | 4,651 | $ | (899 | ) | $ | (8,263 | ) | $ | 5,688 | |||||||||
| % of revenues | 5.9 | % | 3.8 | % | 13.7 | % | (18.0 | )% | 2.5 | % | |||||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||
| Operating income (loss) | $ | 15,428 | $ | 2,519 | $ | 8,986 | $ | (3,010 | ) | $ | (16,591 | ) | $ | 7,332 | |||||||||
| Restructuring | 3,769 | 2,469 | 231 | 191 | 164 | 6,824 | |||||||||||||||||
| Adjusted operating income (loss) | $ | 19,197 | $ | 4,988 | $ | 9,217 | $ | (2,819 | ) | $ | (16,427 | ) | $ | 14,156 | |||||||||
| % of revenues | 6.9 | % | 4.7 | % | 13.6 | % | (30.3 | )% | 3.1 | % | |||||||||||||
| Three Months Ended June 30, 2023 | |||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||
| Operating income (loss) | $ | 14,135 | $ | 7,659 | $ | 5,526 | $ | (2,061 | ) | $ | (9,315 | ) | $ | 15,944 | |||||||||
| Restructuring | 340 | — | — | 378 | — | $ | 718 | ||||||||||||||||
| Adjusted operating income (loss) | $ | 14,475 | $ | 7,659 | $ | 5,526 | $ | (1,683 | ) | $ | (9,315 | ) | $ | 16,662 | |||||||||
| % of revenues | 9.5 | % | 12.0 | % | 15.0 | % | (18.7 | )% | 6.4 | % | |||||||||||||
| Six Months Ended June 30, 2023 | |||||||||||||||||||||||
| Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Industrial Automation | Corporate/Other | Total | ||||||||||||||||||
| Operating income (loss) | $ | 27,527 | $ | 13,729 | $ | 11,102 | $ | (2,923 | ) | $ | (18,847 | ) | $ | 30,588 | |||||||||
| Restructuring | 423 | 8 | — | 1,000 | — | 1,431 | |||||||||||||||||
| Adjusted operating income (loss) | $ | 27,950 | $ | 13,737 | $ | 11,102 | $ | (1,923 | ) | $ | (18,847 | ) | $ | 32,019 | |||||||||
| % of revenues | 8.9 | % | 11.6 | % | 14.9 | % | (10.3 | )% | 6.1 | % | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
| Cash flows from operating activities | $ | 12,588 | $ | 11,464 | $ | 10,232 | $ | 11,522 | |||||||
| Purchases of property, plant and equipment | (6,207 | ) | (5,858 | ) | (11,266 | ) | (9,179 | ) | |||||||
| Free cash flow | $ | 6,381 | $ | 5,606 | $ | (1,034 | ) | $ | 2,343 | ||||||
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.
FAQ
What were CVG's Q2 2024 revenue and EPS results?
How much did CVG's adjusted EBITDA decline in Q2 2024?
What strategic actions is CVG taking to improve its business?
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