Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Midwest IDEAS Conference 2024
25 slides from Core Molding Technologies's conference presentation, Aug 27, 2024
Slide 1: Midwest Ideas Conference August 2024
MIDWEST IDEAS CONFERENCE August 2024
Slide 2: Safe Harbor Statements and Non-GAAP Financial Measures
SAFE HARBOR STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2 Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the federal securities laws, which are subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amen
Slide 3: Core Molding Technologies
US 44% Canada 16% Mexico 40% CORE MOLDING TECHNOLOGIES The most reliable, innovative and responsive partner in engineered materials and manufacturing solutions: SOLUTION | INNOVATION | MANUFACTURING Diversified Portfolio with Long Term Customer Relationships Building Products Industrial & Utilities
Slide 4: Investment Highlights
✓ Market Leadership Position ✓ Few competitors, high barriers to entry ✓ Large Addressable Market ✓ Long-term relationships with blue-chip companies ✓ Proprietary, Highly-Engineered Products ✓ Single source, technical solutions of structural systems ✓ Product innovation expertise with product design
Slide 5: > $10B Addressable Market
> $10B ADDRESSABLE MARKET • Grow wallet share with large customers • Multiple industry channel expansion $2.6B Grow • Market leader in truck & powersports • Focus on higher value solutions Based on management estimates with current process portfolio. Industry Dynamics $2.3B Grow $1.9B Grow $1.9B Gro
Slide 6: Large North American Manufacturing Footprint
LARGE NORTH AMERICAN MANUFACTURING FOOTPRINT 16.0% 33.0% 23.0% 15.0% 6.0% 7.0% Columbus, OH Matamoros, MX Cobourg, Ontario Winona, MN Gaffney, SC Monterrey, MX 82 presses >1.3M Square Feet Product Sales by Facility* *Based on 2023 Product Sales 6
Slide 7: Industry and Customer Diversification
INDUSTRY AND CUSTOMER DIVERSIFICATION 52% Truck 24% Power Sports 8% Building Products 16% Industrial, Utilities & Other 2023 Net Product Sales By Industry Truck Powersport Building Products Industrial and UtilitiesLong-term relationships with blue-chip companies providing single-source manufacturing
Slide 8: How We Diversify
HOW WE DIVERSIFY 8 Building Products Industrial & Utilities Power Sports Transportation Light Weighting | Durability | Cost Savings | Corrosion Resistance | Parts Consolidation | Recyclability
Slide 9: Four Strategic Growth Initiatives
Organic and Acquisition, New Industries, Deeper Penetration with Existing Customers Revenue Growth FOUR STRATEGIC GROWTH INITIATIVES 9 Unique, High Value Solutions = Higher Margins Technical Solution Sales Operational Excellence, Continuous Improvement Culture Profitability Improvements Reinvestment
Slide 10: Invest For Growth
Invest For Growth 1. Lead generation processes and deeper customer engagement ▪ Customer Lunch & Learn events, Sales Agent engagement ▪ Lead generation campaign for all past customers and past opportunities ▪ Driving trade show display and attendance ▪ Cross selling into current markets – e.g. Truck
Slide 11: Macro Tailwinds from the Infrastructure Investment and Jobs Act
Water Systems $62B Investment Infrastructure (Roads, Bridges) MACRO TAILWINDS FROM THE INFRASTRUCTURE INVESTMENT AND JOBS ACT 11 Broadband $110B Investment $65B Investment
Slide 12: Integrated Materials and Processes from One Supplier
INTEGRATED MATERIALS AND PROCESSES FROM ONE SUPPLIER 12 High Strength to Weight • High performance vs cost = Value • Durability and corrosion resistance Innovative Material & Process Development • Large format / One-piece design • Design Flexibility • Value Added Features Lightweight = Lower Total C
Slide 13: Light Weighting
LIGHT WEIGHTING 13 Multiple Benefits from Lightweight Parts: ✓ Easier installation ✓ Reduced Labor ✓ Improved Employee Safety / Reduced Injuries / OSHA ✓ On site modifications ✓ Reduced need for onsite installation equipment ✓ Saves 80% CO2 emissions vs concrete equivalent ✓ Lower overall cost Polym
Slide 14: Part Consolidation / Solutions
PART CONSOLIDATION / SOLUTIONS 14 Multiple Benefits from a Solution with Part Consolidation: ✓ Unique Solutions creating an optimized design ✓ Simplified assembly / Reduced Labor for the customer ✓ Integrated with the customer development (Early in the development process) ✓ Unique capability to cre
Slide 15: Why Core Molding? (1-3)
Why Core Molding? 1. Culture As A Competitive Advantage: Holistic approach to purposefully create an engaged knowledgeable team that wants to win and feels empowered to win. 3. Industry leader in Composite product design / manufacturing 2. Long term trusted partner with industry leaders supplying si
Slide 16: Why Core Molding? (4-6)
Why Core Molding? 4. Co-development, product design and manufacture to optimize products for performance and cost. • Localized strengthening (material reduction) 6. Large and growing portfolio of complementary processes, capable NA footprint and deep expertise of producing in MX. 5. Capability to de
Slide 17: Financials
17 FINANCIALS
Slide 18: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY 18 Organic Growth • Capital investments meeting Company’s return requirements • Projected capital spend in 2024 of $13mm • R&D spending M&A • Tuck in acquisitions • Valuations of $10 - $40 million • One to two acquisitions a year • Disciplined evaluation process to identi
Slide 19: Selected Financial Information
SELECTED FINANCIAL INFORMATION 19 • Impact of economic slowdown reducing customer demand in 2024 • Company focus on operational improvements and portfolio profitability driving higher earnings • Adjusted EBITDA as % of sales increased to 11.2% • Disciplined capital deployment approach resulting in i
Slide 20: Cash Flows and Reinvestment
in millions Operating Cash Flows Sustaining Capex Growth Capex Free Cash Flows Free Cash Flows Excluding Growth Capex 2021 12.5$ 6.3$ 5.1$ 1.1$ 6.2$ 2022 19.0$ 7.8$ 8.8$ 2.4$ 11.2$ 2023 34.8$ 6.1$ 3.0$ 25.7$ 28.7$ Total 66.3$ 20.2$ 16.9$ 29.2$ 46.1$ 3 Year Avg. 22.1$ 6.7$ 5.6$ 9.7$ 15.4$ First Half
Slide 21: Long Term Financial Goals
LONG TERM FINANCIAL GOALS Revenues Operating Income Return on Capital Employed December 2023 3 – 5 Years $358MM 7.4% 16.4% >$500MM • Organic growth • Acquisitions • Goal timing may be impacted due to return to pre-pandemic demand levels 8%-10% • Operational improvements • Value selling • Leverage fi
Slide 22: Contacts
CONTACTS 22 Company Contact John Zimmer Chief Financial Officer jzimmer@coremt.com Investor Contact Sandy Martin / Steven Hooser Three Part Advisors 214.616.2207
Slide 23: Appendix
APPENDIX 23
Slide 24: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION (1) Includes net interest expense, non-cash periodic post retirement costs and loss on extinguishment of debt. (2) Reflects Cincinnati facility closing. Reconciliation of GAAP to Non-GAAP Financial Measures * Adjusted EBITDA represents net income b
Slide 25: Year-End and Return on Capital Employed Reconciliation
YEAR-END AND RETURN ON CAPITAL EMPLOYED (“ROCE”) RECONCILIATION 25 . Reconciliation of GAAP to Non-GAAP Financial Measures * Return on Capital Employed represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) restructu
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