Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q3 2014 Earnings Presentation
21 slides from Cooper-standard's earnings presentation, Oct 31, 2014
Slide 1: Drive for Profitable Growth: Third Quarter Earnings Call
1 DRIVE FOR PROFITABLE GROWTH Third Quarter Earnings Call October 31, 2014
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. We make forward-looking statements in this presentation and may
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
3 Jeff Edwards Chairman and Chief Executive Officer
Slide 4: Industry Overview
4 4 Industry Overview • Global economy struggling to gain momentum • European vehicle production softening • Customers significantly reduced production in Brazil • Volume up in NA with a decline on key platforms
Slide 5: Cooper Standard Overview
5 5 Cooper Standard Overview • Quarter impacted by: – Significant volume decline in Brazil – Foreign exchange fluctuations – Softening sales on key customer platforms • Strategic progress – Notable additions in Asia Pacific – Sale of thermal and emissions product line – Sold breakthrough technologie
Slide 6: Regional Overview
6 6 Regional Overview Europe • Continuing margin improvements • Serbia production on schedule • Added fluid transfer systems capability in Spain North America • Green on major platform launches • Production mix negative for Q3 South America • Significant challenges in Brazil with production and FX v
Slide 7: Cooper Standard / INOAC JV and Huayu-Cooper Standard JV
7 7 Cooper Standard / INOAC JV • Majority - owned JV with an Asian auto supplier provides opportunity for expanding Asia market • Expands our global reach and leadership position in Fluid Transfer Systems product line • Provides additional alignment with Japanese OEMs • Supports global programs Huay
Slide 8: Recap of the Quarter
8 8 Recap of the Quarter • Significant progress on strategic initiatives • Guidance reaffirmed • Continue to anticipate achieving double digit adjusted EBITDA for full year 2014
Slide 9: Allen Campbell, Executive Vice President and Chief Financial Officer
9 Allen Campbell Executive Vice President and Chief Financial Officer
Slide 10: Q3 2014 Performance Overview
10 10 Q3 2014 Performance Overview • Challenges in Brazil affecting results • North America sales impacted by vehicle mix and FX • Continuing margin improvement in Europe • Investing in Asia to support growth
Slide 11: Q3 and Year-to-Date 2014 Revenue
11 Passion for Performance Q3 and Year-to-Date 2014 Revenue Note: Numbers subject to rounding Q3 2013 - $764 Q3 2014 - $781 YTD 2013 - $2,296 YTD 2014 - $2,476 $ USD Millions Third Quarter Year-to-Date $0 $100 $200 $300 $400 $500 North America Europe Asia Pacific South America $409 $258 $54 $43 $413
Slide 12: Q3 and Year-to-Date 2014 Performance
12 Passion for Performance Q3 and Year-to-Date 2014 Performance $ USD Millions, except EPS / % Note: Numbers subject to rounding EBITDA and Adjusted EBITDA are Non-GAAP measures. See appendix. Third Quarter Year-to-Date 2013 2014 2013 2014 $764.1 $781.0 Sales $2,296.3 $2,476.1 115.0 111.3 Gross Prof
Slide 13: EBITDA and Adjusted EBITDA Reconciliation
13 Passion for Performance EBITDA and Adjusted EBITDA Reconciliation $ USD Millions 2014 Net income Income tax expense EBITDA Restructuring, net of noncontrolling interest Adjusted EBITDA Nine Months Ended Sep 30, Net interest expense Depreciation and amortization EBITDA and Adjusted EBITDA are Non-
Slide 14: YTD 2014 Cash Flow and Key Financial Ratios
14 14 YTD 2014 Cash Flow and Key Financial Ratios Note: Numbers subject to rounding $ USD Millions Liquidity Cash Balance as of December 31, 2013 $ 184.4 Cash generated 60.5 Cash Balance as of Sep 30, 2014 $ 244.9 ABL Revolver 180.0 Letters of Credit (35.6) Total Liquidity $ 389.3 Key Financial Rati
Slide 15: 2014 Guidance
15 15 2014 Guidance Key Assumptions: North American production 17.0 million European (including Russia) production 20.0 million Average full year exchange rate 1 EUR = $1.33 USD 1 CAD = $0.91 USD *G=Guidance Cash Balance as of March 31, 2012 296.0 Cash generated (43.9) Cash Balance as of June 30 , 2
Slide 16: Appendix
S_PASSION FOR PERFORMANCE
Slide 17: S_PASSION FOR PERFORMANCE
S_PASSION FOR PERFORMANCE
Slide 18: Adjusted EBITDA Reconciliation, Nine Months Ended September 30, 2014
18 18 Note: Numbers subject to rounding Adj. EBITDA % Margin - Nine Months Ended September 30, 2014 (1) Includes noncash restructuring and is net of noncontrolling interest (2) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reorg
Slide 19: Adjusted EBITDA Reconciliation, Nine Months Ended September 30, 2013
19 19 Note: Numbers subject to rounding Adj. EBITDA % Margin - Nine Months Ended September 30, 2013 (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option ex
Slide 20: Net Leverage Ratio and Adj. EBITDA Margin as of September 30, 2014
20 20 Net Leverage Ratio and Adj. EBITDA % Margin as of September 30, 2014 Note: Numbers subject to rounding ($ USD Millions) Three Months Ended Twelve Months Ended Dec 31, 2013 Mar 31, 2014 Jun 30, 2014 Sep 30, 2014 Sep 30, 2014 Net income (loss) $ (20.8) $ 19.7 $ 13.2 $ 22.7 $ 34.8 Income tax expe
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
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