Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q1 2015 Earnings Presentation
23 slides from Cooper-standard's earnings presentation, May 8, 2015
Slide 1: First Quarter 2015 Conference Call and Webcast
1 First Quarter 2015 Conference Call and Webcast May 8, 2015
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements There are a number of risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements contained in this announcement. Important factors that could cause the Company's actual results to differ materially fro
Slide 3: Business Highlights First Quarter 2015
3 Business Highlights First Quarter 2015 Jeff Edwards Chairman and CEO
Slide 4: Business Highlights
4 4 Business Highlights • Expanding Margins in Key Markets • Optimizing Global Footprint • Outpacing Industry Growth • Improving Safety Performance
Slide 5: Expanding Margins in Key Markets
5 5 Expanding Margins in Key Markets • Achieved double-digit adjusted EBITDA margins as planned • Consolidated adjusted EBITDA margin reached 10.1% of sales Region Segment Profit Margin Change (Bps) 1Q 2015 vs. 1Q 2014 North America +140 Europe +530 (excl. restructuring) Asia Pacific +170 South Amer
Slide 6: Optimizing Global Footprint
6 6 Optimizing Global Footprint • Finalized acquisition of Huayu-Cooper Standard Sealing • Advancing Cooper Standard INOAC FTS joint venture • Initiated Japanese customer technical reviews • Signed agreement for a new JV in India • Progressing through Europe restructuring as planned
Slide 7: Outpacing Industry Growth
7 7 Outpacing Industry Growth • Revenue increased by 4.7% on an FX neutral basis • FX impact of $77.0 million • Significantly outpaced light vehicle production growth 837.6 800.1 877.1 1Q 2014 1Q 2015 Revenue as Reported Rev. ex FX Impact + 4.7% Revenue Highlights
Slide 8: 1Q 2014 vs 1Q 2015 Revenue Bridge
8 8 1Q 2014 vs 1Q 2015 Revenue Bridge Revenue Up 4x Market (millions) +3% +2% -1% $837.6 $800.1 $877.1 -9%
Slide 9: Revenue by Region
9 9 Revenue by Region Asia Pacific Revenue Growth Accelerating Growth in Asia North America 52% Europe 33% South America 4% 1Q 2014 1Q 2015 (millions) +48% +23% Organic Acq./Div. +25% $57.1 $85.7 Asia Pacific 11%
Slide 10: Financial Review First Quarter 2015
10 Financial Review First Quarter 2015 Matt Hardt EVP and CFO
Slide 11: Q1 2015 Financial Results
11 11 Q1 2015 Financial Results First Quarter 2014 2015 Sales $837.6 $800.1 Gross Profit 134.3 130.9 % Margin 16.0% 16.4% SGA&E 79.6 76.3 Operating Profit 47.2 32.2 % Margin 5.6% 4.0% Other Income - 11.1 Adjusted EBITDA $80.6 $80.8 % Margin 9.6% 10.1% Net Income $19.7 $21.0 Fully Diluted EPS $1.10 $
Slide 12: Q1 Non-Operating Adjustments
12 12 Q1 Non-Operating Adjustments First Quarter 2014 2015 Sales $837.6 $800.1 Gross Profit 134.3 130.9 SGA&E 79.6 76.3 Add back Restructuring 3.0 18.8 Operating Profit (excl. restructuring) 50.2 51.0 % Margin 6.0% 6.4% Other Income/(expense) (excluding $11.6 m gain on JV acq.) (0.4) 1.1 EBIT (excl.
Slide 13: Adjusted EBITDA Bridge
13 13 Adjusted EBITDA Bridge $60 $85 $110 (millions) +20% +9% -8% -13% -8% $80.6 $80.8
Slide 14: Q1 2015 Balance Sheet and Liquidity
14 14 Q1 2015 Balance Sheet and Liquidity Note: Numbers subject to rounding Liquidity Cash Balance as of December 31, 2014 $ 267.3 Cash consumed (72.9) Cash Balance as of March 31, 2015 $ 194.4 ABL Revolver 180.0 Letters of Credit (35.6) Total Liquidity $ 338.8 Key Financial Ratios EBITDA, Adjusted
Slide 15: Cash Flow Improvement Plan
15 15 Cash Flow Improvement Plan Optimizing cash generation through 4 key areas: • Capital Expenditures • Working Capital • Restructuring • Cash Taxes
Slide 16: Company Outlook
16 Company Outlook Jeff Edwards Chairman and CEO
Slide 17: Driving for Profitable Growth
17 17 Driving for Profitable Growth • Driving cash flow improvements • Capturing margin improvement through BBP • Marketing new technologies • Expanding market share in core businesses • Managing headwinds • Pursuing strategic acquisitions
Slide 18: 2015 Guidance
18 18 2015 Guidance Previous Guidance Feb 28, 2015 Current Guidance May 8, 2015 Revenue $3.3 - $3.4 billion Unchanged Capital Expenditure $185 - $210 million $185 - $200 million Restructuring $35 - $45 million $30 - $40 million Cash Tax $45 - $55 million Unchanged Adj. EBITDA Margin 50 – 75 bps impr
Slide 19: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 20: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 21: Non-GAAP Financial Measures
21 21 Non-GAAP Financial Measures EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. Management considers EBITDA and adjusted EBITDA as key indicators of the Company's operating performa
Slide 22: EBITDA and Adjusted EBITDA Reconciliation
22 22 EBITDA and Adjusted EBITDA Reconciliation 2014 2015 Net income attributable to Cooper-Standard Holdings Inc. 19.7$ 21.0$ Income tax expense 12.1 14.7 Interest expense, net of interest income 15.0 9.2 Depreciation and amortization 28.3 26.6 EBITDA 75.1$ 71.5$ Gain on remeasurement of previously
Slide 23: Adj. EBITDA % Margin – Twelve Months Ended March 31, 2015
23 23 Note: Numbers subject to rounding Adj. EBITDA % Margin – Twelve Months Ended March 31, 2015 (1) Includes noncash restructuring and is net of noncontrolling interest. (2) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reorga
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