Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q1 2024 Earnings Presentation
24 slides from Cooper-standard's earnings presentation, May 7, 2024
Slide 1: Creating Sustainable Solutions Together
Creating Sustainable Solutions TOGETHER First Quarter 2024 Earnings Presentation May 7, 2024
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations First Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer Financial Overview Jon Banas | Executive VP and Chief Financial Officer Strategic Overview and Outlook Jeff Edwards Q&A 2
Slide 3: Forward-Looking Statements
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. Our use of words “estimate,” “expect,” “anticipate,” “project,” “pl
Slide 4: First Quarter Summary
First Quarter Summary Jeff Edwards, Chairman and CEO
Slide 5: Q1 2024 Highlights
Q1 2024 Highlights Continuing Strong Operating Performance; Year-over-year Margin Improvement 97% 96% 39 World-class Quality World-class Service World-class Safety Green Customer Scorecards Green Launch Scorecards Plants with 0 Incidents (YTD) $19m +300bps $66m Manufacturing/Purchasing Gross Margin
Slide 6: Ongoing Customer Recognition for Excellence
Ongoing Customer Recognition for Excellence GM Supplier of the Year for the 7th Year "Our team is dedicated to consistently delivering world-class solutions that meet or exceed the evolving needs of the mobility industry." 6
Slide 7: Cooper Standard to Publish its 8th Corporate Responsibility Report
Cooper Standard to Publish its 8th Corporate Responsibility Report Committed to Being a Strong Corporate Citizen and Ensuring Long-Term Health of the Business 7
Slide 8: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO
Slide 9: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended March 31, 2024 2023 Sales $ 676.4 $ 682.5 Gross Profit $ 61.6 $ 41.8 % Margin 9.1 % 6.1 % Adjusted EBITDA1 $ 29.3 $ 12.5 % Margin1 4.3 % 1.8 % Income Tax Expense $ 4.1 $ 0.4 Effective Tax Rate % (15.2)% (0.3)% Net Loss $ (
Slide 10: Q1 2024 Bridge Analysis
Q1 2024 Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 2 1 See Appendix for definitions and reconciliation to U.S. GAAP. 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding. 10
Slide 11: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - March 31, 2024 (millions) (millions) Three Months Ended March 31, 2024 2023 ABL availability Net cash (used in) provided by operating activities $ (14.2) $ 30.4 Capital expenditures (16.8) (29.3) Cash on hand Free cash flow $ (31.0) $ 1.1 Curren
Slide 12: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 12
Slide 13: Relentless Focus on Our Strategic Imperatives
Relentless Focus on Our Strategic Imperatives FINANCIAL WORLD-CLASS PROFITABLE GROWTH CORPORATE STRENGTH EXECUTION DRIVEN BY INNOVATION RESPONSIBILITY Execute our business plans Attain world-class results Leverage our materials science and Deliver value to all our stakeholders achieving and sustaini
Slide 14: Optimized Operating Management Structure
Optimized Operating Management Structure Transition to Product Line-based Organization • Provide complete P&L (profit and loss) ownership for each product line to drive profitable growth and increased shareholder value • Reinforce pricing discipline to protect program margins • Prioritize capital al
Slide 15: Enhancing Our Sealing Business
Enhancing Our Sealing Business Building on Performance to Deliver Sustainable Profitable Growth Strategic Growth Drivers • Drive differentiation through innovation, value creation and operational excellence • Align with customer business plans to identify and capture whitespace opportunities • Expan
Slide 16: Rapid Expansion of Fluid Handling Business
Rapid Expansion of Fluid Handling Business Leveraging Innovation, Technical Capabilities and Industry Trends Strategic Growth Drivers • Maximize CPV opportunity by aggressively targeting hybrid programs • Accelerate development and launch of industry leading innovations to expand CPV/TAM • Drive mar
Slide 17: Aggressive Lean Initiatives to Further Optimize Costs
Aggressive Lean Initiatives to Further Optimize Costs • Streamlined operations and engineering execution enabled by product-line structure ◦ Immediate reduction in salaried workforce ◦ Expected cost savings of $20 - $25 million in 2024 ◦ Full annualized cost savings of $40 - $45 million expected in
Slide 18: G CooperStandard
G CooperStandard
Slide 19: Appendix
G CooperStandard
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non- cash and special items that may obscure trends and operating perfo
Slide 21: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (Unaudited, dollar amounts in thousands) Three Months Ended March 31, 2024 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (31,660) $ (130,367) Income tax expense 4,131 358 Interest expense, net of interest income 29,281 30,220 Depreciation and
Slide 22: Adjusted Net Loss and Adjusted EPS
Adjusted Net Loss and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts) Three Months Ended March 31, 2024 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (31,660) $ (130,367) Restructuring charges 1,133 2,379 Loss on refinancing and extinguishment
Slide 23: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended March 31, 2024 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q2 2023 Q3 2023 Q4 2023 Q1 2024 March 31, 2024 Net (loss) income attributable to Cooper-Standard Holdings Inc. $ (27,829) $ 11,363 $ (55,152) $ (31,660) $ (103,278
Slide 24: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended March 31, 2024 2023 Net cash (used in) provided by operating activities $ (14,199) $ 30,379 Capital expenditures (16,834) (29,263) Free cash flow $ (31,033) $ 1,116 24
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