Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Investor Presentation (December 2018)
16 slides from Commercial Vehicle's investor presentation, Dec 4, 2018
Slide 1: Commercial Vehicle Group, Inc. December 2018
Patrick Miller President & CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor COMMERCIAL VEHICLE GROUP, INC. Relations DECEMBER 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", “will”, “should”, “could”, “would”, “project”, “continue”, “like
Slide 3: Company Overview
Company Overview • NASDAQ: CVGI • Global Presence : 24 Facilities / 10 Countries • Employees: 8,900 (FYE 2017) • LTM Sales: $862 M* • LTM Operating Income: $62 M* • Shares Outstanding: 31 M* • Market Cap: $215 M** * As of 9/30/18 ** As of 11/28/18 CVG is a leading supplier of a full range of cab rel
Slide 4: Products
Products 20% 25% 42% Wire Harnesses & Interior Trim Controls 6% Seats & Seating 7% Systems Wiper Systems, Mirrors & Controls Cabs and Sleeper Boxes Page | 4 COMMERCIAL VEHICLE GROUP, INC.
Slide 5: 2017 Sales - $755 Million
2017 Sales - $755 Million Region Product End Market Customer Page | 5 COMMERCIAL VEHICLE GROUP, INC.
Slide 6: End Market Outlook
End Market Outlook North American Truck Market Global Construction Equipment Market • Heavy-duty truck build 325k units in 2018; . Construction continues to be supported by Higher build level expected in 2019 consumer spending and global economies . Low machine inventories and high rental • Heavy-du
Slide 7: Targets for Growth
Targets for Growth Wire Harness and Electrical Systems • Global wire assembly market expected to grow at 6.5% CAGR through 2023* • Adjacent market penetration in truck powertrain, power generation and industrial • More electronics in vehicles drives harness content Global Seating product lines • Gro
Slide 8: Investments Underway
Investments Underway • Launched facility in Thailand to support current customer growth • Two new facilities in Mexico launching early 2019 for wire harness and interior trim • Capacity expansion in Ukraine to support European wire harness growth • Continue with upgrades to digital processes across
Slide 9: Summary
Summary • Strong margins • Cost discipline • Process and digital investments • Product design and development • Integrated customer relationships • Growth opportunities • Focused manufacturing capacity expansion • 2019 market outlook is positive Page | 9 COMMERCIAL VEHICLE GROUP, INC.
Slide 10: Finance Update
Finance Update COMMERCIAL VEHICLE GROUP, INC.
Slide 11: Financial Results
Financial Results Three Months Ended (Dollars in millions) September 30, 2018 2017 Sales $ 225.0 $ 198.3 Sales up 13% Gross Profit $ 32.5 $ 25.2 Margin 14.4% 12.7% SG&A $ 15.7 $ 14.1 Operating Income $ 16.5 $ 10.7 Over 50% improvement Margin 7.3% 5.4% Nearly 200 bps higher N.A. Class 8 Production 89
Slide 12: Q3 Historical Performance
Q3 Historical Performance • Strong end-market performance • Revenues up 46% from Q3 2016 • Reflects favorable impact of actions • Restructuring • Cost control • Cost recovery initiatives • Good pull-through on sales • 440 bps improvement from Q3 2016 Page | 12 COMMERCIAL VEHICLE GROUP, INC.
Slide 13: Business Segments
Business Segments Global Truck & Bus Three Months Ended (Dollars in millions) September 30, 2018 2017 Sales $ 146.4 $ 122.0 Gross Profit $ 20.5 $ 17.2 Margin 14.0% 14.1% SG&A $ 5.3 $ 5.5 • Sales up Operating Income $ 14.9 $ 11.4 Margin 10.2% 9.3% • Cost discipline in rising sales environment Global
Slide 14: Capital Structure
Capital Structure LTM LTM (Dollars in millions) Q3 2017 Q3 2018 Term Loan Principal Balance $ 170 Debt $ 174 $ 170 Interest Rate LIBOR + 600 Less: Cash 50 58 Maturity April 2023 Net Debt $ 124 $ 112 Interest Rate Swap $ 80 EBITDA $ 44 $ 78 Interest Rate 8.07% Maturity April 2022 Gross Leverage 3.95
Slide 15: Appendix GAAP to NON-GAAP Reconciliation
Appendix GAAP to NON-GAAP Reconciliation COMMERCIAL VEHICLE GROUP, INC.
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation EBITDA Reconciliation LTM (Dollars in millions) Q3 2018 Net Income $ 28.4 Interest Expense 12.6 Tax Provision 21.2 Depreciation 14.4 Amortization 1.3 EBITDA $ 77.9 Page | 16 COMMERCIAL VEHICLE GROUP, INC.
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