CVG Reports Third Quarter 2024 Results
CVG reported third quarter 2024 financial results with revenues of $171.8 million, down 15.3% year-over-year, primarily due to softening customer demand. The company posted a net loss from continuing operations of $0.9 million, or $(0.03) per share, compared to net income of $4.7 million in the prior year. Adjusted EBITDA was $4.3 million, down 64.8%, with a margin of 2.5%. The company revised its full-year 2024 outlook, projecting net sales of $710-$740 million and adjusted EBITDA of $20-$25 million. CVG completed the sale of its Cab Structures and Industrial Automation businesses as part of strategic portfolio actions.
CVG ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando ricavi di $171.8 milioni, con una diminuzione del 15.3% rispetto all'anno precedente, principalmente a causa di una flessione nella domanda da parte dei clienti. L'azienda ha registrato una perdita netta dalle operazioni continuative di $0.9 milioni, ovvero $(0.03) per azione, rispetto a un utile netto di $4.7 milioni dell'anno scorso. L'EBITDA rettificato è stato di $4.3 milioni, in calo del 64.8%, con un margine del 2.5%. L'azienda ha rivisto le sue previsioni per l'intero anno 2024, prevedendo vendite nette tra $710 e $740 milioni e un EBITDA rettificato tra $20 e $25 milioni. CVG ha completato la vendita delle sue attività di Cab Structures e Industrial Automation come parte di azioni strategiche di portafoglio.
CVG reportó los resultados financieros del tercer trimestre de 2024, con ingresos de $171.8 millones, una disminución del 15.3% en comparación con el año anterior, principalmente debido a la disminución de la demanda de los clientes. La compañía registró una pérdida neta de las operaciones continuas de $0.9 millones, o $(0.03) por acción, en comparación con una ganancia neta de $4.7 millones en el año anterior. El EBITDA ajustado fue de $4.3 millones, lo que representa una caída del 64.8%, con un margen del 2.5%. La empresa revisó su perspectiva para todo el año 2024, proyectando ventas netas de entre $710 y $740 millones y un EBITDA ajustado de entre $20 y $25 millones. CVG completó la venta de sus negocios de Cab Structures y Automatización Industrial como parte de acciones estratégicas del portafolio.
CVG는 2024년 3분기 재무 결과를 보고했으며, 매출은 $171.8 백만 달러로 전년 대비 15.3% 감소했습니다. 이는 주로 고객 수요의 감소 때문입니다. 회사는 계속되는 운영에서 순손실 $0.9 백만 달러, 즉 주당 $(0.03)를 기록했으며, 이는 전년의 순이익 $4.7 백만 달러와 비교됩니다. 조정된 EBITDA는 $4.3 백만 달러로 64.8% 감소했으며, 마진은 2.5%입니다. 회사는 2024년 전체 연도 전망을 수정하여, 순매출을 $710-$740 백만 달러, 조정된 EBITDA를 $20-$25 백만 달러로 예상하고 있습니다. CVG는 전략적 포트폴리오 조치의 일환으로 Cab Structures 및 산업 자동화 사업의 매각을 완료했습니다.
CVG a publié les résultats financiers du troisième trimestre 2024, affichant des revenus de $171.8 millions, en baisse de 15.3% par rapport à l'année précédente, principalement en raison d'un affaiblissement de la demande des clients. L'entreprise a enregistré une perte nette des opérations continues de $0.9 million, soit $(0.03) par action, contre un bénéfice net de $4.7 millions l'année précédente. Le EBITDA ajusté s'élevait à $4.3 millions, en baisse de 64.8%, avec une marge de 2.5%. L'entreprise a révisé ses prévisions pour l'ensemble de l'année 2024, projetant des ventes nettes de $710 à $740 millions et un EBITDA ajusté de $20 à $25 millions. CVG a finalisé la vente de ses activités de Cab Structures et d'Automatisation Industrielle dans le cadre d'actions stratégiques de portefeuille.
CVG hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit Einnahmen von $171.8 Millionen, was einem Rückgang von 15.3% im Jahresvergleich entspricht, hauptsächlich aufgrund einer nachlassenden Kundennachfrage. Das Unternehmen verzeichnete einen Nettoverlust aus fortgeführten Betrieben von $0.9 Millionen, oder $(0.03) pro Aktie, im Vergleich zu einem Nettogewinn von $4.7 Millionen im Vorjahr. Das bereinigte EBITDA betrug $4.3 Millionen, was einem Rückgang von 64.8% entspricht, bei einer Marge von 2.5%. Das Unternehmen hat seinen Ausblick für das Gesamtjahr 2024 angepasst und erwartet Nettoumsätze von $710-$740 Millionen und ein bereinigtes EBITDA von $20-$25 Millionen. CVG hat den Verkauf seiner Geschäftsbereiche Cab Structures und Industrial Automation als Teil strategischer Portfolioaktionen abgeschlossen.
- Completed strategic divestitures of Cab Structures and Industrial Automation businesses
- Strong liquidity position of $177.2 million
- New business wins of $18 million in Q3, bringing YTD total to $95 million
- Vehicle Solutions segment maintained profitability with $5.1 million operating income
- Revenue declined 15.3% to $171.8 million
- Operating loss of $1.1 million compared to $8.9 million income prior year
- Adjusted EBITDA dropped 64.8% to $4.3 million
- Lowered full-year 2024 guidance for both revenue and adjusted EBITDA
- Operational inefficiencies affecting financial performance
- Decreased customer demand across all segments
Insights
Q3 results show significant operational challenges with
Key concerns include operational inefficiencies, weaker customer demand across segments and margin compression. However, liquidity remains solid with
Market conditions present significant challenges across all segments. Vehicle Solutions saw
North American Class 8 truck builds forecast of 316,000 units for 2024, down from 340,247 in 2023, indicates a cooling commercial vehicle market. The combination of market headwinds and internal restructuring creates a challenging environment for near-term recovery.
Third quarter sales of
Makes progress on strategic portfolio actions
Provides updated guidance for full year 2024
NEW ALBANY, Ohio, Nov. 04, 2024 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its third quarter ended September 30, 2024.
As a result of strategic portfolio actions, results from the Cab Structures and Industrial Automation businesses have been reclassified to discontinued operations for current and prior periods. The results and comparisons presented below reflect continuing operations unless otherwise noted.
Third Quarter 2024 Highlights (Results from Continuing Operations; compared with prior year, where comparisons are noted)
- Revenues of
$171.8 million , down15.3% , due primarily to a global softening in customer demand. - Operating loss of
$1.1 million , adjusted operating loss of$0.4 million , down compared to operating income and adjusted operating income of$8.9 million . The decrease in operating income was driven primarily by lower sales volumes and operational inefficiencies. - New business wins in the quarter of approximately
$18 million when fully ramped, bringing the year-to-date total to$95 million ; these wins were concentrated in our Electrical Systems segment, and include meaningful wins in our Vehicle Solutions segment. - Net loss from continuing operations of
$0.9 million , or$(0.03) per diluted share and adjusted net loss of$0.4 million , or$(0.01) per diluted share, compared to net income of$4.7 million , or$0.14 per diluted share and adjusted net income of$4.7 million , or$0.14 per diluted share. - Adjusted EBITDA of
$4.3 million , down64.8% , with an adjusted EBITDA margin of2.5% , down from6.0% .
James Ray, President and Chief Executive Officer, said, “Since taking over the CEO role eleven months ago, we have been tirelessly focused on reshaping the CVG operating model to create a more streamlined, lower cost, and customer-focused company. Our CVG team has been working diligently to divest non-strategic portfolio assets like Cab Structures and Industrial Automation, execute new program launches in Vehicle Solutions, initiate restructuring actions, pay down debt, and expand our global footprint in critical regions of Mexico and Morocco. Market conditions have made this transformation process even more difficult this year, as weaker customer demand and shifting production schedules have created operational and supply chain challenges. As a result of both market conditions and our portfolio actions, we have experienced incremental operational inefficiencies this year affecting our financial performance, especially during the third quarter. We are not happy with our performance and have taken significant steps to change the forward direction with expected performance improvement.”
Mr. Ray continued, “In addition to portfolio and restructuring actions, we’ve made senior management changes to drive growth in our Electrical Systems business and improve the efficiency of our supply chain and manufacturing operations while addressing structural costs and right sizing the company. This is an inflection point for CVG with many key actions completed this year. Despite softer end markets and slower new program ramps, we expect the actions we are taking today to help us reshape the company, driving incremental profitability with minimal added costs when customers’ demand improves. We believe this intense focus on operational excellence will make CVG more resilient and position us for margin expansion and growth with a commitment to value creation.”
Andy Cheung, Chief Financial Officer, added, “Despite a challenging third quarter due to both external market conditions and internal operational issues, we successfully concluded multiple significant portfolio moves. The majority of proceeds from these actions were used to pay down debt. Executing these transactions led to short-term production inefficiencies that weighed on results during the quarter. We are currently addressing these operational issues to improve manufacturing capabilities and future competitiveness. With a more focused portfolio, we see potential to further streamline our enterprise cost structure. Ultimately, we expect these strategic actions will reposition our business for growth and margin expansion in 2025 and beyond.”
Third Quarter Financial Results from Continuing Operations
(amounts in millions except per share data and percentages)
Third Quarter | ||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Revenues | $ | 171.8 | $ | 202.9 | $ | (31.1) | (15.3)% | |||||||
Gross profit | $ | 16.4 | $ | 29.3 | $ | (12.9) | (44.0)% | |||||||
Gross margin | ||||||||||||||
Adjusted gross profit 1 | $ | 19.9 | $ | 29.4 | $ | (9.5) | (32.3)% | |||||||
Adjusted gross margin 1 | ||||||||||||||
Operating income (loss) | $ | (1.1) | $ | 8.9 | $ | (10.0) | NM2 | |||||||
Operating margin | (0.6)% | |||||||||||||
Adjusted operating income (loss) 1 | $ | (0.4) | $ | 8.9 | $ | (9.3) | NM2 | |||||||
Adjusted operating margin 1 | (0.2)% | |||||||||||||
Net income (loss) | $ | (0.9) | $ | 4.7 | $ | (5.6) | NM2 | |||||||
Adjusted net income (loss) 1 | $ | (0.4) | $ | 4.7 | $ | (5.1) | NM2 | |||||||
Earnings (loss) per share, diluted | $ | (0.03) | $ | 0.14 | $ | (0.17) | NM2 | |||||||
Adjusted earnings (loss) per share, diluted 1 | $ | (0.01) | $ | 0.14 | $ | (0.15) | NM2 | |||||||
Adjusted EBITDA 1 | $ | 4.3 | $ | 12.2 | $ | (7.9) | (64.8)% | |||||||
Adjusted EBITDA margin 1 | ||||||||||||||
1 See Appendix A for GAAP to Non-GAAP reconciliation | ||||||||||||||
2 Not meaningful |
Consolidated Results from Continuing Operations
Third Quarter 2024 Results
- Third quarter 2024 revenues were
$171.8 million , compared to$202.9 million in the prior year period, a decrease of15.3% . The overall decrease in revenues was due to lower sales as a result of a softening in customer demand in our Vehicle Solutions and Electrical Systems segments. - Operating loss in the third quarter 2024 was
$1.1 million compared to operating income of$8.9 million in the prior year period. The decrease in operating income was attributable to the impact of lower sales volumes, unfavorable mix, operational inefficiencies and increased restructuring charges. Third quarter 2024 adjusted operating loss was$0.4 million , compared to adjusted operating income of$8.9 million in the prior year period. - Interest associated with debt and other expenses was
$2.4 million and$2.5 million for the third quarter 2024 and 2023, respectively. - Net loss from continuing operations was
$0.9 million , or$(0.03) per share, for the third quarter 2024 compared to net income of$4.7 million , or$0.14 per diluted share, in the prior year period. Third quarter 2024 adjusted net loss was$0.4 million , or$(0.01) per share, compared to adjusted net income of$4.7 million , or$0.14 per diluted share.
On September 30, 2024, the Company had
Third Quarter 2024 Segment Results
Vehicle Solutions Segment
- Revenues were
$97.3 million compared to$115.2 million for the prior year period, a decrease of15.6% , due to lower sales volume as a result of decreased customer demand and the wind-down of certain programs. - Operating income was
$5.1 million , compared to$8.3 million in the prior year period, a decrease of37.9% , primarily attributable to lower customer demand, operational remediation investments, and increased freight costs, partially offset by lower SG&A expenses due to the gain on the sale of a building of$3.5 million . Third quarter 2024 adjusted operating income was$3.8 million compared to$8.3 million in the prior year period.
Electrical Systems Segment
- Revenues were
$43.4 million compared to$53.9 million in the prior year period, a decrease of19.5% , primarily due to a global softening in the Construction & Agriculture end-markets and the phase out of certain lower margin business. - Operating loss was
$0.4 million compared to operating income of$5.9 million in the prior year period, a decrease of106.6% . The decrease in operating income was primarily attributable to lower sales volumes, restructuring activities, and unfavorable foreign exchange. Third quarter 2024 adjusted operating income was$0.9 million compared to$5.9 million in the prior year period.
Aftermarket & Accessories Segment
- Revenues were
$31.1 million compared to$33.8 million in the prior year period, a decrease of8.0% , primarily as a result of lower sales volume due to a reduction of backlog in the prior period as well as decreased customer demand. - Operating income was
$3.1 million compared to$4.3 million in the prior year period, a decrease of27.0% . The decrease in operating income was primarily attributable to lower sales volumes, operational inefficiencies and restructuring activities. Third quarter 2024 adjusted operating income was$3.9 million compared to$4.3 million in the prior year period.
Outlook
CVG issued the following outlook for the full year 2024 which reflects both market developments and strategic portfolio actions undertaken:
Metric | Prior 2024 Outlook (1) | Revised 2024 Outlook (1) |
Net Sales | ||
Adjusted EBITDA |
(1) This outlook excludes any contribution from CVG’s Cab Structures or Industrial Automation businesses in 2024. On October 1, 2024, CVG closed the previously announced sale of the Cab Structures business, and received the final installment of the purchase price. Separately, CVG closed the sale of the Industrial Automation business on October 30, 2024.
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 316,000 units. The 2023 actual Class 8 truck builds according to the ACT Research was 340,247 units.
Based on industry data, we continue to project global agriculture market demand for our customers' products 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, November 5, 2024, at 8:30 a.m. ET. Management intends to reference the Q3 2024 Earnings Call Presentation during the conference call. To participate, dial (800) 549-8228 using conference code 04909. International participants dial (289) 819-1520 using conference code 04909.
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 (888) 660-6264 using access code 04909#.
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 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, 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 (1)
Three Months and Nine Months Ended September 30, 2024 and 2023
(Unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||
Revenues | $ | 171,772 | $ | 202,897 | $ | 560,063 | $ | 641,747 | |||||
Cost of revenues | 155,351 | 173,588 | 500,019 | 545,033 | |||||||||
Gross profit | 16,421 | 29,309 | 60,044 | 96,714 | |||||||||
Selling, general and administrative expenses | 17,481 | 20,389 | 55,531 | 60,910 | |||||||||
Operating (loss) income | (1,060) | 8,920 | 4,513 | 35,804 | |||||||||
Other (income) expense | (1,033) | 383 | (615) | 488 | |||||||||
Interest expense | 2,371 | 2,489 | 6,974 | 7,910 | |||||||||
Income (loss) before provision for income taxes | (2,398) | 6,048 | (1,846) | 27,406 | |||||||||
Provision (benefit) for income taxes | (1,515) | 1,367 | (1,110) | 6,345 | |||||||||
Net income (loss) from continuing operations | $ | (883) | $ | 4,681 | $ | (736) | $ | 21,061 | |||||
Net income from discontinued operations | 10,397 | 2,609 | 11,588 | 5,069 | |||||||||
Net income | 9,514 | 7,290 | 10,852 | 26,130 | |||||||||
Basic earnings (loss) per share | |||||||||||||
Income (loss) from continuing operations | $ | (0.03) | $ | 0.14 | $ | (0.02) | $ | 0.64 | |||||
Income from discontinued operations | $ | 0.31 | $ | 0.08 | $ | 0.35 | $ | 0.15 | |||||
Diluted earning (loss) per share | |||||||||||||
Income (loss) from continuing operations | $ | (0.03) | $ | 0.14 | $ | (0.02) | $ | 0.63 | |||||
Income from discontinued operations | $ | 0.31 | $ | 0.08 | $ | 0.35 | $ | 0.15 | |||||
Weighted average shares outstanding: | |||||||||||||
Basic | 33,458 | 33,100 | 33,392 | 33,010 | |||||||||
Diluted | 33,458 | 33,350 | 33,392 | 33,408 |
(1) The operating results related to the cab structures business and Industrial Automation business have been reflected as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except per share amounts)
ASSETS | September 30, 2024 | December 31, 2023 | |||||
Current assets: | |||||||
Cash | $ | 30,885 | $ | 37,848 | |||
Accounts receivable, net | 127,247 | 129,346 | |||||
Inventories | 130,917 | 117,267 | |||||
Current assets held for sale | 4,951 | 15,603 | |||||
Note receivable | 20,000 | — | |||||
Other current assets | 32,263 | 27,678 | |||||
Total current assets | 346,263 | 327,742 | |||||
Property, plant and equipment, net | 69,619 | 68,923 | |||||
Intangible assets, net | 4,133 | 6,594 | |||||
Deferred income taxes | 39,328 | 33,568 | |||||
Noncurrent assets held for sale | — | 11,130 | |||||
Other assets, net | 35,998 | 35,257 | |||||
Total assets | $ | 495,341 | $ | 483,214 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 93,008 | $ | 75,246 | |||
Accrued liabilities and other | 49,910 | 51,354 | |||||
Current portion of long-term debt and short-term debt | 2,969 | 15,313 | |||||
Current liabilities held-for-sale | 4,251 | 3,276 | |||||
Total current liabilities | 150,138 | 145,189 | |||||
Long-term debt | 125,790 | 126,201 | |||||
Noncurrent liabilities held-for-sale | — | 870 | |||||
Pension and other post-retirement benefits | 10,195 | 9,196 | |||||
Other long-term liabilities | 29,953 | 28,826 | |||||
Total liabilities | $ | 316,076 | $ | 310,282 | |||
Stockholders’ equity: | |||||||
Preferred stock | $ | — | $ | — | |||
Common stock | 335 | 333 | |||||
Treasury stock | (16,209) | (16,150) | |||||
Additional paid-in capital | 268,195 | 265,217 | |||||
Retained deficit | (35,332) | (46,184) | |||||
Accumulated other comprehensive loss | (37,724) | (30,284) | |||||
Total stockholders’ equity | 179,265 | 172,932 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 495,341 | $ | 483,214 |
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENT FINANCIAL INFORMATION
(Unaudited)
(Amounts in thousands)
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
Revenues | $ | 97,296 | $ | 115,235 | $ | 43,380 | $ | 53,862 | $ | 31,096 | $ | 33,800 | $ | — | $ | — | $ | 171,772 | $ | 202,897 | |||||||||||||
Gross profit (loss) | 8,774 | 15,050 | 2,213 | 7,881 | 5,474 | 6,416 | (40) | (38) | 16,421 | 29,309 | |||||||||||||||||||||||
Selling, general & administrative expenses | 3,629 | 6,761 | 2,598 | 2,018 | 2,328 | 2,104 | 8,926 | 9,506 | 17,481 | 20,389 | |||||||||||||||||||||||
Operating income (loss) | $ | 5,145 | $ | 8,289 | $ | (385) | $ | 5,863 | $ | 3,146 | $ | 4,312 | $ | (8,966) | $ | (9,544) | $ | (1,060) | $ | 8,920 |
Nine Months Ended September 30, | |||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Revenues | $ — | $ — | |||||||||||||||||
Gross profit (loss) | 32,177 | 49,263 | 9,934 | 26,524 | 18,091 | 21,071 | (158) | (144) | 60,044 | 96,714 | |||||||||
Selling, general & administrative expenses | 15,985 | 19,609 | 7,799 | 6,932 | 6,228 | 6,017 | 25,519 | 28,352 | 55,531 | 60,910 | |||||||||
Operating income (loss) | $ 2,135 | $ (25,677) | $ (28,496) | $ 4,513 |
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 | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
Gross profit | $ | 16,421 | $ | 29,309 | $ | 60,044 | $ | 96,714 | |||||||
Restructuring | 3,518 | 70 | 8,618 | 1,443 | |||||||||||
Adjusted gross profit | $ | 19,939 | $ | 29,379 | $ | 68,662 | $ | 98,157 | |||||||
% of revenues |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
Operating income (loss) | $ | (1,060) | $ | 8,920 | $ | 4,513 | $ | 35,804 | |||||||
Restructuring | 4,217 | — | 9,769 | 431 | |||||||||||
Gain on sale of fixed assets | (3,544) | — | (3,544) | — | |||||||||||
Total operating income (loss) adjustments | 673 | — | 6,225 | 431 | |||||||||||
Adjusted operating income (loss) | $ | (387) | $ | 8,920 | $ | 10,738 | $ | 36,235 | |||||||
% of revenues | (0.2)% |
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||
Net income (loss) from continuing operations | $ | (883) | $ | 4,681 | $ | (736) | $ | 21,061 | ||||||
Operating income (loss) adjustments | 673 | — | 6,225 | 431 | ||||||||||
Adjusted provision for income taxes1 | (168) | — | (1,556) | (108) | ||||||||||
Adjusted net income (loss) from continuing operations | $ | (378) | $ | 4,681 | $ | 3,933 | $ | 21,384 | ||||||
Diluted EPS | $ | (0.03) | $ | 0.14 | $ | (0.02) | $ | 0.63 | ||||||
Adjustments to diluted EPS | $ | 0.02 | $ | — | $ | 0.14 | $ | 0.01 | ||||||
Adjusted diluted EPS | $ | (0.01) | $ | 0.14 | $ | 0.12 | $ | 0.64 |
- Reported Tax Provision adjusted for tax effect of special charges at
25%
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
Net income (loss) from continuing operations | $ | (883) | $ | 4,681 | $ | (736) | $ | 21,061 | |||||||
Interest expense | 2,371 | 2,489 | 6,974 | 7,910 | |||||||||||
Provision for income taxes | (1,515) | 1,367 | (1,110) | 6,345 | |||||||||||
Depreciation expense | 3,562 | 3,361 | 10,438 | 9,740 | |||||||||||
Amortization expense | 140 | 267 | 463 | 804 | |||||||||||
EBITDA | $ | 3,675 | $ | 12,165 | $ | 16,029 | $ | 45,860 | |||||||
% of revenues | |||||||||||||||
EBITDA adjustments | |||||||||||||||
Restructuring | $ | 4,217 | $ | — | $ | 9,769 | $ | 431 | |||||||
Gain on sale of fixed assets | (3,544) | — | (3,544) | $ | — | ||||||||||
Adjusted EBITDA | $ | 4,348 | $ | 12,165 | $ | 22,254 | $ | 46,291 | |||||||
% of revenues |
Three Months Ended September 30, 2024 | |||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||
Operating income (loss) | $ | 5,145 | $ | (385) | $ | 3,146 | $ | (8,966) | $ | (1,060) | |||||||||
Restructuring | 2,188 | 1,275 | 754 | — | 4,217 | ||||||||||||||
Gain on sale of fixed assets | $ | (3,544) | $ | — | $ | — | $ | — | $ | (3,544) | |||||||||
Adjusted operating income (loss) | $ | 3,789 | $ | 890 | $ | 3,900 | $ | (8,966) | $ | (387) | |||||||||
% of revenues | (0.2)% |
Nine Months Ended September 30, 2024 | |||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||
Operating income (loss) | $ | 16,192 | $ | 2,135 | $ | 11,863 | $ | (25,677) | $ | 4,513 | |||||||||
Restructuring | 4,876 | 3,744 | 985 | 164 | 9,769 | ||||||||||||||
Gain on sale of fixed assets | $ | (3,544) | $ | — | $ | — | $ | — | $ | (3,544) | |||||||||
Adjusted operating income (loss) | $ | 17,524 | $ | 5,879 | $ | 12,848 | $ | (25,513) | $ | 10,738 | |||||||||
% of revenues |
Three Months Ended September 30, 2023 | |||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||
Operating income (loss) | $ | 8,289 | $ | 5,863 | $ | 4,312 | $ | (9,544) | $ | 8,920 | |||||||||
Restructuring | — | — | — | — | $ | — | |||||||||||||
Adjusted operating income (loss) | $ | 8,289 | $ | 5,863 | $ | 4,312 | $ | (9,544) | $ | 8,920 | |||||||||
% of revenues |
Nine Months Ended September 30, 2023 | |||||||||||||||||||
Vehicle Solutions | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||
Operating income (loss) | $ | 29,654 | $ | 19,592 | $ | 15,054 | $ | (28,496) | $ | 35,804 | |||||||||
Restructuring | 423 | 8 | — | — | 431 | ||||||||||||||
Adjusted operating income (loss) | $ | 30,077 | $ | 19,600 | $ | 15,054 | $ | (28,496) | $ | 36,235 | |||||||||
% of revenues |
The following tables present reconciliations of the captions within CVG's Condensed Consolidated Statements of Cash Flows to Free cash flow, attributable to continuing operations, discontinued operations, and total CVG for the three and nine months ended September 30, 2024 and 2023.
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
CONTINUING OPERATIONS | |||||||||||||||
Cash flows from operating activities | $ | (4,190) | $ | 16,939 | $ | (2,268) | $ | 20,963 | |||||||
Purchases of property, plant and equipment | (2,877) | (5,628) | (13,709) | (14,782) | |||||||||||
Proceeds from disposal/sale of property, plant and equipment | 4,455 | — | 4,455 | — | |||||||||||
Proceeds from sale of business | 19,760 | — | 22,960 | — | |||||||||||
Free cash flow from continuing operations | $ | 17,148 | $ | 11,311 | $ | 11,438 | $ | 6,181 | |||||||
DISCONTINUED OPERATIONS | |||||||||||||||
Cash flows from operating activities | $ | (12,877) | $ | 1,529 | $ | (4,567) | $ | 9,027 | |||||||
Purchases of property, plant and equipment | (404) | (389) | (838) | (414) | |||||||||||
Free cash flow from discontinued operations | $ | (13,281) | $ | 1,140 | $ | (5,405) | $ | 8,613 | |||||||
TOTAL COMPANY | |||||||||||||||
Cash flows from operating activities | $ | (17,067) | $ | 18,468 | $ | (6,835) | $ | 29,990 | |||||||
Purchases of property, plant and equipment | (3,281) | (6,017) | (14,547) | (15,196) | |||||||||||
Proceeds from disposal/sale of property, plant and equipment | 4,455 | — | 4,455 | — | |||||||||||
Proceeds from sale of business | 19,760 | — | 22,960 | — | |||||||||||
Free cash flow | $ | 3,867 | $ | 12,451 | $ | 6,033 | $ | 14,794 |
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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