Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q4 2023 Earnings Presentation
21 slides from Commercial Vehicle's earnings presentation, Mar 5, 2024
Slide 1: Earnings Presentation Q4 & FY 2023
Earnings Presentation James Ray – President & Chief Executive Officer Q4 & FY 2023 Andy Cheung – Executive Vice President & Chief Financial Officer March 5, 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: Introduction
INTRODUCTION James Ray President & CEO 3
Slide 4: Q4 & Full Year 2023 Highlights
Q4 & Full Year 2023 Highlights 2023 HIGHLIGHTS Q4 FINANCIAL HIGHLIGHTS IMPROVED PROFITABILITY NEW BUSINESS WINS Adjusted EBITDA Up >$150 MILLION 26% REVENUE ADJUSTED EBITDA Adjusted $223 $10.3 EBITDA margin • 2023 program wins, peak annual value when fully ramped, majority MILLION MILLION Up 140 bps
Slide 5: Recent Strategic Actions
Recent Strategic Actions North American Footprint Optimization • Actions taken to optimize footprint • Closing one facility and shifting production to other locations • Rationalizing higher-cost capacity to expand margins Cost Reduction Efforts • Reducing organizational costs and aligning resources
Slide 6: Fourth Quarter & Full Year 2023 Results
Fourth Quarter & Full Year 2023 Results CONSOLIDATED RESULTS Highlights Three Months Twelve Months GAAP Measures Ended Dec 31 Ended Dec 31 ($ in millions except for share • Record revenue in 2023, driven by continued price 2023 2022 2023 2022 information) realization and contribution of new business
Slide 7: Q4'23 Adjusted EPS Bridge Including Special Items
Q4’23 Adjusted EPS Bridge Including Special Items $0.70 Reversal of non-cash tax valuation allowance ($0.66) Impact of a strike- related labor stoppage at a customer facility $0.06 $0.15 $0.05 $0.09 $0.15 GAAP Earnings per Tax Adjustments* Restructuring Adj. EPS Strike Impacts Adj. EPS (ex-special S
Slide 8: Electrical Systems
Electrical Systems Sales and Adjusted Operating Income Highlights Q4 Full Year Revenue ($mm) • Strong revenue growth and margin expansion in the Q4 and full year 2023 as pricing and contributions from prior new wins 228.4 driving improved results +27% 180.4 • Increased pricing helped offset material
Slide 9: Vehicle Solutions
Vehicle Solutions Sales and Adjusted Operating Income Highlights Q4 Full Year Revenue ($mm) • Q4 revenue negatively impacted by a labor strike at one customer facility and softness in demand -10% 587.1 142.8 579.7 +1% • Full year 2023 revenue up slightly due to increased N.A. Class 8 128.4 productio
Slide 10: Aftermarket & Accessories
Aftermarket & Accessories Sales and Adjusted Operating Income Highlights Q4 Full Year Revenue ($mm) • Q4 revenue declines driven by lower volumes; 2022 results benefited from significant backlog that didn’t repeat in 2023 34.1 -8% +5% 140.2 • Full year 2023 revenue increase of 5% driven by increased
Slide 11: Industrial Automation
Industrial Automation Sales and Adjusted Operating Income Highlights Q4 Full Year Revenue ($mm) • Challenging market conditions prevailed throughout the year, weighing on revenues and margins -35% 87.7 11.0 -56% • As a result, Q4 revenue down 35% and full year 2023 revenue 7.1 down 56% 38.9 • Aligne
Slide 12: Key Focus Areas for 2024
Key Focus Areas for 2024 Growth in Electrical Systems • Continuing new business wins in this segment in 2024 • Electrical Systems wins reduce cyclicality and increase end-market diversification • Goal is to make this our largest business Ramp Up New Plants • Electrical Systems plants ramping as sche
Slide 13: Fiscal 2024 Outlook
Fiscal 2024 Outlook FY24 CVG Outlook ($mm) Metric 2023 Actual 2024 Outlook Net Sales 995 915 – 1,015 Adjusted EBITDA 68 60 - 73 • Expect to benefit from growth in Electrical Systems, partially offsetting the projected 16% decline in Class 8 truck builds • Full year 2024 margin performance expected t
Slide 14: Appendix
Appendix Q4/FY 2023 March 5, 2024 14
Slide 15: 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 16: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Operating Income/(Loss) 5.0 (4.0) 48.1 20.1 Restructuring 0.8 2.0 2.3 5.4 HW Inventory adjustment - 10.4 - 10.4 Deferred consideration purchase accounting - - - 0.3 Executive transition 0.8 - 0.8 0.3
Slide 17: 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) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 Net income/(Loss) 4.0 2.5 3.6 (32.0) 8.7 10.1 7.3 23.3 Interest 2.0 2.1 2.8 2.9 2.9 2.8 2.6 2.4 P
Slide 18: 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) Q4 2023 Q4 2022 FY 2023 FY 2022 Net income/(Loss) 23.3 (32.0) 49.4 (22.0) Operating income (loss) adjustments 1.6 12.4 3.1 16.5 Other adjustment on FX - (0.1) - (0.0) Loss on early extingui
Slide 19: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 3.6 6.7 3.4 0.9 (9.6) 5.0 Restructuring 0.4 - - (0.6) 1.0 0.8 Executive Transition - 0.8 0.8 Adjusted Oper
Slide 20: Segment GAAP to Non GAAP Twelve Months
Segment GAAP to Non GAAP QTD For the Twelve Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 42.0 26.3 19.0 (1.4) (37.9) 48.1 Restructuring 0.8 0.0 - 0.5 1.0 2.3 Executive transition - - - 0.8 0.8 A
Slide 21: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Cash Flow from Operations $ (21.4) $ 16.9 $ 38.3 $ 35.2 $ 0.1 $ 11.1 $ 18.5 $ 8.3 Capital Expenditures1 (3.6) (5.0) (3.9) (7.2) (3.3) (5.9) (6.0) (4.5) Free Cash Flo
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