Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q2 2020 Earnings Presentation
25 slides from Commercial Vehicle's earnings presentation, Aug 10, 2020
Slide 1: Q2 Earnings Conference Call
Q2 EARNINGS CONFERENCE CALL HAROLD BEVIS ED CARNEY KIRK FEILER PRESIDENT & CEO INTERIM CFO & TREASURER VP FINANCE & INVESTOR RELATIONS
Slide 2: Forward Looking Statements
Q2 2 0 2 0 FORWARD LOOKING STATEMENTS This presentation contains 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”, “continue”, “likel
Slide 3: Global Team Delivered During Abrupt Downturn
Q2 2 0 2 0 GLOBAL TEAM DELIVERED DURING ABRUPT DOWNTURN Generated >$1m of adjusted EBITDA and >$9m of cash → despite 48% decline in revenue 1 • $8 million of cost-outs in the quarter: combination of permanent and short-term actions including corporate overhead reductions, plant overhead reductions,
Slide 4: Comprehensive Set of Actions Taken
Q2 2 0 2 0 COMPREHENSIVE SET OF ACTIONS TAKEN Free cash flow of >$9m and maintained solid 2 liquidity of >$106M ACTIONS IN PROCESS • Comprehensive global set of actions: used opportunity of light demand to initiate consolidation and repurposing of multiple Consolidating and repurposing facilities, ~
Slide 5: Multi-Year Recovery Forecast for Commercial Vehicles
Q2 2 0 2 0 MULTI-YEAR RECOVERY FORECAST FOR COMMERCIAL VEHICLES 1 End markets forecast to recover to pre-COVID levels 2 Lowering the cost structure on traditional business, expect better margins 3 Expecting additional revenue from new business wins beginning in Q4 END MARKET OUTLOOKS N.A. HEAVY-DUTY
Slide 6: Change Is Underway
CHANGE IS UNDERWAY POSITIONING CVG FOR A NEW AND BETTER FUTURE LEADERSHIP INNOVATION NEW MARKETS Building a strong, new Kick-starting Adding market credibility leadership team with innovation & new and repurposing footprint robust experience product agendas and capabilities outside growing businesse
Slide 7: Pivoting the Company
Q2 2 0 2 0 PIVOTING THE COMPANY 1 Optimizing financial performance of the core business 2 Adding people & growth outside of traditional commercial vehicle business 3 Building strong momentum with new business wins and new opportunities • E-commerce material handling equipment • Electric vehicles and
Slide 8: Strategic Reposition of Footprint
STRATEGIC REPOSITION OF FOOTPRINT I M P L E M E N T I N G A S E T O F D E C I S I V E S T R AT E G I C A C T I O N S T O R E S E T T H E C O M PA N Y ’ S F O O T P R I N T Adding Dedicated Moving to Consolidating Floor Space Expanded footprint, capacity, and Optimize Space Space product complexity t
Slide 9: Penetrate Fast-Growing Ecommerce, Last-Mile Delivery Market
Q2 2 0 2 0 PENETRATE FAST-GROWING ECOMMERCE, LAST-MILE DELIVERY MARKET KEY HIGHLIGHTS First win with Unity™ seat Multi-year, multi-million Last-mile delivery market for global platform aimed at accretive win with a major e-commerce growing at penetration of medium duty electric vehicle (EV) 10%+ CAG
Slide 10: Grow Warehouse Automation Business
Q2 2 0 2 0 GROW WAREHOUSE AUTOMATION BUSINESS This market is central to the company’s growth strategy Multi-year, multi-million accretive win Market expected to grow at 11.7% CAGR to $27 billion by 2025 Expanded product portfolio with a top global warehouse automation technology provider Footprint r
Slide 11: Enhancing the Value of the Company
Q2 2 0 2 0 ENHANCING THE VALUE OF THE COMPANY N AV I G AT I N G N E A R - T E R M M A R K E T D I S R U P T I O N A N D I N C R E A S I N G I N V E S T M E N T I N L O N G - T E R M A D VA N C E M E N T S 11
Slide 12: Four Focus Areas for Increasing the Value of the Company
Q2 2 0 2 0 FOUR FOCUS AREAS FOR INCREASING THE VALUE OF THE COMPANY OPTIMIZE CORE BUSINESS WIN IN ELECTRIC VEHICLES • Leverage new unique global seating platform • EV market is growing with global delivery • Consolidate facilities companies • Improve ROI • Focused on last mile delivery vans and medi
Slide 13: New Approach, Direction, and Decisions for Achieving Success
Q2 2 0 2 0 NEW APPROACH, DIRECTION, AND DECISIONS FOR ACHIEVING SUCCESS N E W L E A D E R S H I P, N E W D I R E C T I O N , N E W C U S T O M E R S , N E W P R O D U C T S , N E W M A R K E T S 13
Slide 14: Financial Update Q2 2020
FINANCIAL UPDATE Q2 2020 MMTONG READY. SET. LEAD.
Slide 15: CVG Consolidated Financials
Q2 2 0 2 0 CVG CONSOLIDATED FINANCIALS $ MILLIONS, EXCEPT PER SHARE DATA Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 126.9 243.2 (116.3) Gross Profit 6.5 32.4 (25.9) • Revenue down 48% compared Gross Margin 5.1% 13.3% to prior year due to COVID-19 impacts SGA 16.0 16.2 (0.2) Amortization 0.9 0.3
Slide 16: Electrical Systems Segment Results
Q2 2 0 2 0 ELECTRICAL SYSTEMS SEGMENT RESULTS $ MILLIONS Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 74.2 141.9 (67.7) Gross Profit 1.1 17.8 (16.7) • Revenue down 48% compared Gross Margin 1.5% 12.5% to prior year due to covid impacts, offset partially by FSE SGA 6.6 3.7 2.9 • Used opportunity of
Slide 17: Global Seating Segment Results
Q2 2 0 2 0 GLOBAL SEATING SEGMENT RESULTS $ MILLIONS Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 53.9 105.3 (51.4) Gross Profit 5.3 14.7 (9.4) • Revenue down 49% compared Gross Margin 9.9% 13.9% to prior year due to covid impacts SGA 3.7 5.2 (1.5) Amortization 0.1 0.1 (0.0) • Used opportunity of
Slide 18: Balance Sheet
Q2 2 0 2 0 BALANCE SHEET $ MILLIONS June 30, March 30, 2020 2020 Q2 2020 NOTES Cash 63.4 58.1 Accounts Receivable 102.8 123.3 • Cash and available liquidity at Inventories 70.7 84.5 June 30, 2020 was $106.6M Other Assets 164.1 165.3 • Reduced inventory by ~$14M in 2Q through a focused effort, Total
Slide 19: Supplemental Information
SUPPLEMENTAL INFORMATION 19
Slide 20: Use of Non-GAAP Financial Measures
Q2 2 0 2 0 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 m
Slide 21: Reconciliation of GAAP to Non-GAAP Measures – Adjusted Operating Income and EBITDA
Q2 2 0 2 0 R E C O N C I L I AT I O N O F G A A P T O N O N - G A A P F I N A N C I A L M E A S U R E S – A D J U S T E D O P E R AT I N G I N C O M E A N D E B I T D A 21
Slide 22: Reconciliation – Adjusted EBITDA
Q2 2 0 2 0 R E C O N C I L I AT I O N O F G A A P T O N O N - G A A P F I N A N C I A L MEASURES – ADJUSTED EBITDA $ Millions For the three months ended Trailing twelve months ended March 31, June 30, September 30, December 31, March 31, June 30, June 30, June 30, 2019 2019 2019 2019 2020 2020 2020
Slide 23: Business Segment Financial Information
Q2 2 0 2 0 BUSINESS SEGMENT FINANCIAL INFORMATION 23
Slide 24: Free Cash Flow
Q2 2 0 2 0 FREE CASH FLOW For the three months ended FREE CASH FLOW* ($M) December 31, March 31, June 30, 9.1 $ Millions 2019 2020 2020 6.9 Cash Flow from Operations $ 8.2 $ 10.3 $ 10.1 3.0 Capital Expenditures (5.2) (3.4) (1.0) Free Cash Flow $ 3.0 $ 6.9 $ 9.1 Q419 Q120 Q220 24
Slide 25: Playback and Contact Information
Q2 2 0 2 0 PLAYBACK AND CONTACT INFORMATION Replay number: 800-585-8367 passcode: 4399004 Telephone replay available through August 24, 2020 Webcast / PowerPoint / replay available at ir.cvgrp.com → Use “Slide Show” format for PowerPoint Investor Relations contact: Kirk Feiler (614) 289 - 0195 25
Commercial Vehicle Group — Q2 2020 Earnings Presentation on 6ix