Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q1 2024 Earnings Presentation
18 slides from Commercial Vehicle's earnings presentation, May 7, 2024
Slide 1: Earnings Presentation Q1 2024
Earnings Presentation James Ray – President & Chief Executive Officer Q1 2024 Andy Cheung – Executive Vice President & Chief Financial Officer May 7, 2024
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain 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”, “ta
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights Q1 HIGHLIGHTS Q1 FINANCIAL HIGHLIGHTS MOROCCO EXPANSION NEW BUSINESS WINS ON TRACK ~$45 MILLION • Construction of second facility in REVENUE ADJUSTED EBITDA Morocco to support • 2024 program wins, estimated new wins in Electrical peak annual value when fully $232 $12.7 Systems rem
Slide 4: Focus on Execution and Operational Excellence
Focus on Execution and Operational Excellence Organizational Efficiency Improvements • Restructuring actions to reduce cost and align resources to support growth product lines • Continued investment in new, low-cost facilities to support new business wins • Capacity consolidation to maximize ROIC Op
Slide 5: Modular UNITY Seat Expansion
Modular UNITY Seat Expansion • Recent wins across the globe with Unity o Standardization of core seat design across regions and markets o Truck market wins in N.A. and Europe and APAC o Construction market wins in APAC and N.A. • Market driven features improving customer satisfaction o Powered seat
Slide 6: First Quarter 2024 Results
First Quarter 2024 Results CONSOLIDATED RESULTS Commentary Three Months GAAP Measures Ended Mar 31 • Revenue down 12% in Q1driven by a softening in customer demand globally, the wind down of certain ($ in millions except for share information) 2024 2023 programs and declines in Aftermarket and Indus
Slide 7: Electrical Systems
Electrical Systems Sales and Adjusted Operating Income Commentary Q1 • Revenue growth of 2% in the quarter driven primarily by pricing Revenue ($mm) • Softening in global construction and agriculture end markets +2% 55.8 • Q1 adjusted OI declined $3.0 million, driven by the impact of labor 54.7 infl
Slide 8: Vehicle Solutions
Vehicle Solutions Sales and Adjusted Operating Income Commentary Q1 • Q1 revenue declined 14% due to lower customer demand and wind- Revenue ($mm) down of certain programs -14% • Q1 adjusted OI decline of $2.6 million driven by lower volumes 160.6 • Focus on strengthening the core Vehicle Solutions
Slide 9: Aftermarket & Accessories
Aftermarket & Accessories Sales and Adjusted Operating Income Commentary Q1 Revenue ($mm) • Q1 revenue declined 9% against a strong Q1’23 as customers manage inventory levels; strong sequential growth of 9% versus -9% Q4’23 37.6 34.1 • Q1 adjusted OI margin decline of $1.0 million; sequential improv
Slide 10: Industrial Automation
Industrial Automation Sales and Adjusted Operating Income Commentary Q1 • Q1 revenue down 56% as customer demand declined Revenue ($mm) -56% • Focused on generating new orders 9.7 • Q1 adjusted OI down $1.7 million driven by lower sales volumes and higher investment in SG&A supporting New 4.3 Produc
Slide 11: Updated Fiscal 2024 Outlook
Updated Fiscal 2024 Outlook ACT North American Class 8 Build Forecast (000s) FY24 CVG Outlook ($mm) 340 Metric 2023 Actual 2024 Outlook 315 Net Sales 995 915 – 1,015 305 Adjusted EBITDA 68 60 - 73 2022 2023 2024F • YoY Class 8 truck build decline of ~10% lower than previously forecast, offset by wea
Slide 12: Appendix
Appendix Q4/FY 2023 March 5, 2024 12
Slide 13: Use of non-GAAP financial measures
This earnings presentation 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
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q1 2024 Q1 2023 Operating Income/(Loss) 6.6 14.6 Restructuring 1.9 0.7 Adjusted Operating Income 8.5 15.4 % of Revenues 3.6% 5.8% Net Income/(Loss) 2.9 8.7 Interest Expense 2.3 2.9 Provision (benefit) for income taxes 1.2 3.3 Deprec
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP Reconciliation of GAAP to Non-GAAP to Non-GAAP Financial Financial MeasuresMeasures – Adjusted EBITDA (in millions) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2023 2023 2023 2023 2024 Net income/(Loss) 2.5 3.6 (32.0) 8.7 10.1 7.3 23.3 2.9 Interest 2.1 2.8 2.9 2.9 2.8 2.6 2.4 2.3 P
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q1 2024 Q1 2023 Net income/(Loss) 2.9 8.7 Operating income (loss) adjustments 1.9 0.7 Adjusted (benefit) provision for income taxes (0.5) (0.2) Adjusted net income (loss) 4.4 9.2 Diluted EP
Slide 17: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Mar 31, 2024 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 10.4 2.0 4.5 (2.0) (8.3) 6.6 Restructuring 0.5 1.1 0.0 0.1 0.1 1.9 Adjusted Operating Income/(Loss) 10.9 3
Slide 18: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Cash Flow from Operations $ 16.9 $ 38.3 $ 35.2 $ 0.1 $ 11.5 $ 18.5 $ 8.3 $ (2.4) Capital Expenditures1 (5.0) (3.9) (7.2) (3.3) (5.9) (6.0) (4.5) (5.1) Free Cash Flow
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