Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q3 2021 Earnings Presentation
27 slides from Commercial Vehicle's earnings presentation, Nov 3, 2021
Slide 1: Q3 2021 Earnings Presentation
Q3 2021 Earnings Presentation November 2021 W E F I N D A WAY !
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”, “co
Slide 3: Presented by
Presented by Harold Bevis Chris Bohnert President and Chief Financial Officer Chief Executive Officer and Investor Relations Q3 2021 Earnings Presentation | 3
Slide 4: Q3 2021 Highlights
Q3 2021 Highlights Securing new business wins while operating in a difficult supply chain environment YTD Net New Q3 Net Sales Q3 Operating Income Q3 Adj. EBITDA Q3 Diluted Adj. EPS Business Awards $239.6M $11.4M $16.9M $0.25 $168M 28%YoY 28%YoY 3%YoY 19%YoY Annualized Versus $187.7M Versus $8.9M Ve
Slide 5: The Road Ahead
The Road Ahead Q3 2021 Update Grow and Diversify Warehouse Automation Electric & Fuel Cell Optimizing Service & Revenue Mix Growth Vehicles Cost Structure $168M of net new business Sales on track to meet or 4 new wins in Q3 worth an Footprint evolution & awards 2021 YTD exceed $150 million expected
Slide 6: Portfolio Rebalance Progress Report
Portfolio Rebalance Progress Report 2021 Sales (9 Months) Europe All Other 18% North American 16% OEM Truck 36% Aftermarket / Asia Pacific Service 11% End Geographies 10% Markets North America 74% 18% Warehouse Automation 17% OEM Construction Equipment North American Truck Warehouse Automation OEM C
Slide 7: The Vehicle Building Environment is Challenging, We Are Modifying Accordingly
The Vehicle Building Environment is Challenging, We Believe The Conditions Will Persist, We are Modifying Accordingly Abrupt reduction in near term Operating Dynamics outlook due to supply chain • End markets now expecting a near term slow down constraints due to supply constraints • Customer schedu
Slide 8: Warehouse Automation – Industry benefitting from retail ecommerce growth
Warehouse Automation – Industry benefitting from retail ecommerce growth and increasing warehouse builds Market Growth Expectations* (000s) in billions $40 $30 $30 $26 $23 $20 $20 $18 $10 $0 2022E 2023E 2024E 2025E 2026E *Source: Logistics IQ Q3 2021 Earnings Presentation | 8
Slide 9: Electric & Fuel Cell Vehicles
Electric & Fuel Cell Vehicles • Value Proposition Ownership of Electrical System ➢ Speed, agility & knowledge: digital development and production ➢ High and low voltage system and product design ➢ Integrated development teams ➢ Creating new electrical distribution system products (Battery Systems) •
Slide 10: Paving the Way Organic Business Growth
Paving the Way Organic Business Growth Improved Business Mix 69% Electric Vehicle $168M YTD 21 Awards All Other 7% 11% Power Sports 5% 9% ICE Truck Warehouse Automation • Electric & Fuel Cell Vehicle wins are longer cycle awards that ramp up to expected run rates over multiple years • Investment of
Slide 11: Summary
Grow earnings and improve revenue mix through global 1 new business program The Warehouse Automation market continues to grow. 2 We are focused on securing 2022 business The Electric & Fuel Cell Vehicle market continues to Summary 3 grow, and we are securing “first fit” positions We are optimizing o
Slide 12: The Road Ahead....
The Road Ahead…. ➢ There is strong end-demand in our served markets. But both CVG and our customers have many supply chain constraints impacting production / sales / output ➢ We believe the difficult supply chain environment will persist. We are lowering our costs, addressing certain pricing issues,
Slide 13: Financial Update
Financial Update Q3 2021 Earnings Presentation | 13
Slide 14: CVG Consolidated Results Q3 2021 vs. Q3 2020
FINANCIAL UPDATE – Q3 2021 CVG Consolidated Results Q3 2021 vs. Q3 2020 In millions Revenues Gross Profit Adj. Operating Income Adjusted EBITDA Q3 2021 $239.6 $30.1 $12.2 $16.9 Gross Margin: 12.6% Operating Margin: 5.1% EBITDA Margin: 7.1% Better / Revenues Gross Profit Adj. Operating Income Adjuste
Slide 15: Electrical Systems Segment Q3 2021 vs. Q3 2020
FINANCIAL UPDATE – Q3 2021 Electrical Systems Segment Q3 2021 vs. Q3 2020 In millions Revenues Gross Profit Adj. Operating Income Q3 2021 $164.1 $23.7 $17.9 Gross Margin: 14.4% Operating Margin: 10.9% Better / Revenues Gross Profit Adj. Operating Income (Worse) $43.0 $7.5 $4.5 Compared to Q3 2020 •
Slide 16: Global Seating Segment Q3 2021 vs. Q3 2020
FINANCIAL UPDATE – Q3 2021 Global Seating Segment Q3 2021 vs. Q3 2020 In millions Revenues Gross Profit Adj. Operating Income Q3 2021 $76.5 $6.5 $0.4 Gross Margin: 8.5% Operating Margin: 0.6% Better / Revenues Gross Profit Adj. Operating Income (Worse) $7.6 $(1.9) $(4.7) Compared to Q3 2020 • Sales
Slide 17: Supplemental Information
Supplemental Information Q3 2021 Earnings Presentation | 17
Slide 18: 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 19: CVG Consolidated Results Q3 2021 vs. Q3 2020
CVG Consolidated Results Q3 2021 vs. Q3 2020 (In millions except for share information) Q3 2021 Q3 2020 Revenue 239.6 187.7 Gross Profit 30.1 24.2 Gross Margin 12.6% 12.9% Selling, General & Administrative Expense 17.9 14.5 Amortization Expense 0.9 0.9 Operating Income 11.4 8.9 Operating Margin 4.8%
Slide 20: Electrical Systems Segment Q3 2021 vs. Q3 2020
Electrical Systems Segment Q3 2021 vs. Q3 2020 (In millions) Q3 2021 Q3 2020 Revenue 164.1 121.1 Gross Profit 23.7 16.1 Gross Margin 14.4% 13.3% Selling, General & Administrative Expense 5.2 3.2 Amortization Expense 0.7 0.7 Operating Income 17.8 12.2 Operating Margin 10.8% 10.1% Adjusted Operating I
Slide 21: Global Seating Segment Q3 2021 vs. Q3 2020
Global Seating Segment Q3 2021 vs. Q3 2020 (In millions) Q3 2021 Q3 2020 Revenue 76.5 68.9 Gross Profit 6.5 8.4 Gross Margin 8.5% 12.2% Selling, General & Administrative Expense 6.0 3.5 Amortization Expense 0.1 0.1 Operating Income 0.4 4.8 Operating Margin 0.6% 6.9% Adjusted Operating Income 0.4 5.1
Slide 22: CVG Consolidated Balance Sheet
CVG Consolidated Balance Sheet September December 31, in millions 30, 2021 2020 Cash 33.6 50.5 Q3 2021 Highlights Accounts receivable, net 192.1 151.1 Inventories Other current assets 146.5 19.9 91.2 17.7 Primarily raw material Total current assets 392.1 310.5 increase driven by cost Property, plant
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (In millions) Q3 2021 Q3 2020 Operating Income/(Loss) $ 11.4 $ 8.9 Deferred Consideration Purchase Accounting 0.1 0.5 Restructuring - 2.1 Executive Transition 0.7 - Investigation - 0.5 Adjusted Operating Income/(Loss) 12.2 12.0 % of Revenues 5.1%
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP to NON-GAAP Financial Measures – Adjusted EBITDA (in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net income $ (24.6) $ (12.5) $ 4.2 $ (4.1) $ 8.5 $ 5.1 $ 7.5 Interest 4.6 5.3 5.5 5.2 5.0 2.8 1.6 Provision / (Benefit) for Income Taxes (7.3) (3.1) (1.0) 3.9
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to NON-GAAP Financial Measures – Diluted EPS Three Months Ended (in millions except for share information) September 30, 2021 September 30, 2020 Net Income/(Loss) $ 7.5 $ 4.2 Operating income (loss) adjustments 0.8 3.1 Loss on extinguishment of debt - - Adjusted (benefit) prov
Slide 26: Reconciliation of GAAP to Non-GAAP Segment Information
Reconciliation of GAAP to Non-GAAP Segment Information For the Three Months Ended September 30, 2021 Electrical Global Corporate Total (in millions) Systems Seating Operating Income/(Loss) $ 17.8 $ 0.4 $ (6.8) $ 11.4 Deferred consideration purchase accounting 0.1 - - 0.1 Executive Transition - - 0.7
Slide 27: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Cash Flow from Operations $ 10.3 $ 10.1 $ 10.4 $ 3.6 $ (15.4) $ (9.4) $ 3.9 1 Capital Expenditures (3.4) (1.0) (1.0) (1.0) (1.7) (5.2) (4.5) Free Cash Flow 6.9 9.1 9.4 2.6 (
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