Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Barrington Research Virtual Spring Investment Conference 2020
17 slides from Commercial Vehicle's conference presentation, May 21, 2020
Slide 1: Barrington Investor Conference
BARRINGTON INVESTOR CONFERENCE May 21, 2020 Harold Bevis President & CEO Tim Trenary CFO & Treasurer Kirk Feiler VP Finance & Investor Relations
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation 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 sim
Slide 3: At a Glance
AT A GLANCE WHAT WE DO Sales Breakdown 1 1 ► Leading supplier of BY REGION BY PRODUCT BY END MARKET electrical wire harnesses, seating systems, 9% 15% 17% engineered plastic parts, electro-mechanical 16% 42% products 18% 38% 16% 75% ► Focus on highly-complex, 7% 7% low to medium volume 22% 18% appli
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Leading supplier of electrical wire harnesses, seating systems, engineered plastic components, and electromechanical assemblies Truck and construction Leading supplier to Expanding into core markets in cyclical sophisticated global new and adjacent markets trough with projected
Slide 5: FSE Business Segments Are Growing
FSE BUSINESS SEGMENTS ARE GROWING ► Quarterly revenue grew 30% sequentially ► Surge in demand from industrial customers driven by increasing importance of e-commerce, and military ► Expanding production from one plant to three, using CVG facilities ► Healthy order book in FSE’s core business ► FSE e
Slide 6: Q1 2020 Snapshot and Business Update
Q1 2020 SNAPSHOT AND BUSINESS UPDATE ► Business performed as expected prior to onset of pandemic ► Revenue of $187.1 million, compared to $243.2 million in 1Q 2019 • Cyclical decline in North American medium- and heavy-duty truck and global construction • FSE contributed $13 million in Q1 2020, stre
Slide 7: COVID-19 Impact and Recovery Actions
COVID-19 IMPACT AND RECOVERY ACTIONS Working Towards Health & Safety Cost Reductions Recovery ► Remote working ► Compensation reductions ► Working closely with customers to restart ► Facility closures ► Furloughs/ reductions in force ► Preserving our capabilities ► Social distancing to grow the busi
Slide 8: Actions Taken to Offset Impact of COVID-19
ACTIONS TAKEN TO OFFSET IMPACT OF COVID-19 Excerpt from April 13 press release: • 50% reduction of the compensation for Chief Executive Officer, Harold Bevis • 40% reduction of the compensation for the remaining executive leadership team • 20% reduction of base wages for all global salaried personne
Slide 9: Financial Performance
FINANCIAL PERFORMANCE COMMERCIAL VEHICLE GROUP, INC. INVESTOR PRESENTATION 9
Slide 10: Consolidated Financial Update
CONSOLIDATED FINANCIAL UPDATE $ millions except per share data $ Q1 2020 Q1 2019 Change Q4 2019 FY 2019 Q1 2020 Notes Revenue 187.1 243.2 (56.1) 189.5 901.2 ► Q1 results in line with Gross Profit 20.3 33.1 (12.8) 10.2 105.1 expectations Gross Margin 10.9% 13.6% 5.4% 11.7% ► Sharp declines in end SGA
Slide 11: Electrical Systems Segment Results
ELECTRICAL SYSTEMS SEGMENT RESULTS $ in millions $ Q1 2020 Q1 2019 Change Q4 2019 FY 2019 Q1 2020 Notes Revenue 112.1 143.6 (31.5) 113.9 530.9 ► Revenue down 22% Gross Profit 10.9 19.3 (8.4) 5.8 60.0 compared to prior year high production Gross Margin 9.7% 13.5% 5.1% 11.3% SGA 4.0 4.1 (0.1) 4.0 15.8
Slide 12: Global Seating Segment Results
GLOBAL SEATING SEGMENT RESULTS $ in millions $ Q1 2020 Q1 2019 Change Q4 2019 FY 2019 Q1 2020 Notes Revenue 76.0 104.1 (28.1) 76.5 381.5 ► Revenue down 27% Gross Profit 9.4 13.8 (4.4) 4.4 45.2 compared to high Gross Margin 12.3% 13.2% 5.8% 11.8% production in prior year SGA 4.8 5.3 0.5 4.9 20.4 ► Si
Slide 13: Balance Sheet
BALANCE SHEET $ in millions Q1 2020 Notes Q1 2020 Q1 2019 $ Change • Liquidity at March 31, 2020 Cash 58.1 39.5 18.6 was $114 million; $58 million of cash and $56 million of Accounts Receivable 123.3 115.1 8.2 availability on revolver Inventories 84.5 82.9 1.6 • Amended loan agreements Other Assets
Slide 14: Appendix
APPENDIX COMMERCIAL VEHICLE GROUP, INC. 14
Slide 15: Use of Non-GAAP Financial Measures
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 c
Slide 16: Reconciliation of GAAP to Non-GAAP Measures – Adjusted Operating Income
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES – ADJUSTED OPERATING INCOME For the Three Months Ended March 31, 2020 Electrical Global $ Millions Systems Seating Corporate Total Operating Loss $ (17.1) $ (0.4) $ (9.0) $ (26.5) CEO Transition 2.3 2.3 Restructuring 0.1 0.0 0.2 Investigation 2.4
Slide 17: Reconciliation of GAAP to Non-GAAP Measures – Adjusted EBITDA
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES – ADJUSTED EBITDA $ Millions For the three months ended Trailing twelve months ended March 31, June 30, September December March 31, March 31, March 31, 2019 2019 30, 2019 31, 2019 2020 2020 2019 Net Income 10.0 6.1 7.2 (7.5) (24.6) (18.8) 42.0 I
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