Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — INVEST Ohio (September 2013)
28 slides from Core Molding Technologies's conference presentation, Sep 12, 2013
Slide 1: Presented for INVEST Ohio September 12, 2013
Presented for INVEST Ohio September 12, 2013
Slide 2: Forward-looking Statement and Additional Information
Forward-looking Statement and Additional Information This presentation contains historical information and forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as o
Slide 3: Company Overview
Company Overview Founded: Incorporated in 1996 Headquarters: Columbus, Ohio Listing: NYSE MKT Ticker: CMT 2012 Revenue: $162 million Employees: ~ 1300 (U.S. and Mexico) Locations: 4 Markets served: Medium- and heavy-duty trucks, automotive, transit, marine, construction, agricultural equipment and o
Slide 4: Large molded parts for OEMs
Visors Hoods Sleeper roofs Fender extensions Air deflectors Cab trim Watercraft decks & hulls • Core manufactures large molded parts for original equipment manufacturers (OEMs) • We specialize in combining multiple moldings and hardware to produce complex assemblies • Many industries use these parts
Slide 5: Markets Supported
Markets Supported Heavy Truck • Manufacturers of heavy- and medium-duty (Class 6-8) trucks . . . also includes buses Automotive • Manufacturers of light passenger vehicles, plus their Tier 1 and Tier 2 suppliers Marine • Applications for the production of watercraft Construction and Agricultural Equ
Slide 6: Company Development
Company Development 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1996-Core purchases the assets of the Columbus Plastics division from Navistar Inc. for stock and debt consideration. 1998-Core builds a greenfield plant in Gaffney, SC. to add a strategic location. 2
Slide 7: Core Strengths and Business Highlights
• Prominent North American supplier of composite products to the Class 6-8 truck market • Industry-leading range of processes capability • Leading assembler of complex, precision tolerant vehicle components • Customer-focused material development • Dedicated management team experienced in managing t
Slide 8: Facilities
Facilities Columbus, OH Cincinnati, OH Gaffney, SC Matamoros, MX Primary plant processes • SMC compounding • SMC molding • RIM molding • RTM • Machining • Assembly • Robotic spray-up • Hand lay-up • RTM/V-RTM • Vacuum bag molding • Machining • Assembly • SMC molding • GMT molding • Machining • Assem
Slide 9: Four plants serving US, Canada and Mexico
Core operates four plants that are well positioned to serve the industrial regions of the US, Canada and Mexico Core has over 1 million ft2 of manufacturing space in North America.
Slide 10: Composite Process Offerings
Composite Process Offerings Competitive Advantages: • Core offers a full range of composite processes to meet individual customer needs, production volume requirements and cost objectives • Core provides assemblies with components individually customized by process • Core develops custom formulation
Slide 11: Processes – SMC Compounding
Sheet molding compound is the process of converting of resins and fiber reinforcements into sheet form for use in compression molding • Approximately 48 million lbs. of capacity • Creation of specialized systems to meet a variety of customer needs Processes – SMC Compounding Numerous formulation
Slide 12: Processes – Compression Molding
A premade mixture of chopped reinforcements, resins, and fillers is placed into a mold and cured under high heat and pressure • With over 40 presses, Core is operating a significant portion of large tonnage press capacity in North America • Assets well-distributed across organization to meet custo
Slide 13: Processes – RTM / VRTM
A reinforcing material is manually placed into a mold, the mold is closed and resin is injected into the part area • Excellent capability on mid- to low-volume products • Ability to provide directional strength characteristics • Capability to produce molds internally • Improved dimensional stabili
Slide 14: Processes – Spray Up / Hand Lay Up
Chopped or directional reinforcing fibers are sprayed or hand-laid onto a mold and wetted with resin to produce the part • Used in low-volume applications with minimal back side surface requirements Processes – Spray Up / Hand Lay Up • Ability to be applied by hand or robotically • Capability to p
Slide 15: Processes – Secondary Operations
Heavy use of automation for efficient and reliable process execution on the plant floor • Automated assembly systems • Secondary drill fixtures (PLC controlled) • Water jet machining • Robotic bond dispense Processes – Secondary Operations • Automated part handling • In-process dimensional inspect
Slide 16: Fundamentals of the N.A. Heavy Truck Market
Many brands, with four (4) large OEMs . . .all are customers Cyclical industry with 5-6 year business cycles Changing demographics away from owner-operators to more large fleets Fleets operate vehicles ~6 years before sending to secondary market, driving a steady replacement demand Long mo
Slide 17: Truck fleet age and Class 8 production
5.0 5.5 6.0 6.5 7.0 90 95 00 05 10 15 Source: ACT Research Co. LLC Age of US vehicle fleet is at record levels Avg. Age US Class 8 Trucks (yr) 50 100 150 200 250 300 350 08 09 10 11 12 13 14 15 16 17 18 North American truck builds are cyclical, but have historically increased each cycle N.A. Class 8
Slide 18: Other Active Markets at Core
Marine • Long relationship with Yamaha and its WaveRunner® product line, market share leader in nearly every category • Specialized products for the yachting industry Automotive • Materials approved at Ford, Chrysler and GM • Underbody shields, including advanced products • Electric vehicle batt
Slide 19: Financial Information
Financial Information • 2009 truck production volume was at a 30-year low • Truck production levels improved in 2010 through 2012 • Core achieved record sales in 2012 • 2013 truck production volumes have been lower than expected, but are projected by industry analysts and customers to increase into
Slide 20: Well Positioned for Growth
Well Positioned for Growth • Core has invested $47 million in PP&E since the beginning of 2008, adding infrastructure to support long-term growth • Strong cash flows have supported this investment: Total Debt is $6.6 million at June 30, 2013 • Working capital at June 30, 2013 of $16.5 million • Debt
Slide 21: Investment Considerations
• Market price to book value per share of 1.1(1) • Trading at an approximate 10.6 PE(2) • Strong and consistent operating cash flow • Solid balance sheet and low leverage • Seasoned leadership team • Long-term customer relationships and proven performance • Recent new business awards and anticipated
Slide 22: Growth & Product Development – Formulations and Processes
Growth & Product Development – Formulations and Processes Lightweighting initiative • New automotive CAFE standards for fuel economy drive research on low-density material systems Featherlite® SMC (2011) AiriliteTM SMC (2013) Continued advancement in new material development • Fiber reinforc
Slide 23: Growth & Product Development – Heavy Truck Market
Growth & Product Development – Heavy Truck Market North American Class 8 heavy truck market expected to increase +14% in 2014 Completed a $6 million/year conversion program for a heavy truck roof in 2012 Awarded $30 million/year Volvo hood and roof program in 2013 Continuing to find opportun
Slide 24: Growth & Product Development – Other Market Development
Growth & Product Development – Other Market Development • Similar part structure (panels, structural reinforcements, complex assemblies) • Utilize existing quality and management systems • Designing specific SMC material systems to meet customers’ evolving needs • Introduced industry-leading low-den
Slide 25: Core plants geographic reach
Core plants Geographic reach Automotive plants Core’s plants have ideal reach to current truck customers . . . . . . and are in good places to reach targeted customers in our growth markets: Construction and agricultural equipment plants Truck customer plants
Slide 26: In Summary
IN SUMMARY Core Molding Technologies: • Is a large format composites manufacturer • Has leading market share in the medium- and heavy- duty truck market • Is developing opportunities in new markets • Has a consistent history of financial performance • Is well positioned for growth
Slide 27: Appendix – EBITDA Reconciliation
Appendix – EBITDA Reconciliation EBITDA Reconciliation (in millions) 2008 2009 2010 2011 2012 YTD June 2013 EBITDA $12.735 $6.341 $10.366 $20.886 $17.013 $7.593 Depreciation and Amortization 3.544 3.856 3.949 3.942 4.523 2.476 Provisions for Income Taxes 2.761 0.427 2.643 5.722 3.966 1.709 Interest
Slide 28: Presented for INVEST Ohio September 12, 2013
Presented for INVEST Ohio September 12, 2013
Core Molding Technologies — INVEST Ohio (September 2013) on 6ix