Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q3 2024 Earnings Presentation
20 slides from Commercial Vehicle's earnings presentation, Nov 5, 2024
Slide 1: Q3-2024 Earnings Presentation
Q3-2024 Earnings Presentation James Ray – President & Chief Executive Officer November 5, 2024 Andy Cheung – Executive Vice President & Chief Financial Officer
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain 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”, “co
Slide 3: Q3 2024 Overview
Q3 2024 Overview YTD TAKEAWAYS Q3 FINANCIAL OVERVIEW DEBT PAYDOWN NEW BUSINESS WINS $13 MILLION ~$95 MILLION • Debt paydown this year • Year-to-date program driven by divestiture wins, estimated peak REVENUE ADJUSTED EBITDA proceeds, with $20 annual value when fully million additional ramped, majori
Slide 4: Strategic Portfolio Actions Taken in 2024
Strategic Portfolio Actions Taken in 2024 FinishTEK Cab Structures Chillicothe Facility Industrial Automation Sale of production facility, with prior Sale of hydrographic and paint Sale of Kings Mountain cab Overview production consolidated in other Sale of business decorator structures facility CVG
Slide 5: Key Leadership Changes to Strengthen Performance
Key Leadership Changes to Strengthen Performance Global Leadership Changes Strategic Goals Electrical Systems Senior Leader Drive Growth in Electrical Systems • Proven track record of delivering accretive growth (both • Electrical Systems growth remains a top priority organic and inorganic) across m
Slide 6: Third Quarter 2024 Results
Third Quarter 2024 Results CONSOLIDATED RESULTS (Continuing Operations) Commentary GAAP Measures Three Months Nine Months • Revenue down 15% in Q3 due to lower sales as a result of a Ended Sep 30 Ended Sep 30 softening in customer demand in our Vehicle Solutions and ($ in millions except for share E
Slide 7: Electrical Systems
Electrical Systems Sales and Adjusted Operating Income Commentary Q3 YTD Revenue ($mm) • Revenue declined 19% in the quarter driven primarily by global Construction and Agriculture markets softening and slower ramp of new business wins -19% -13% 172.2 • Q3 adjusted OI declined $5.0 million, driven b
Slide 8: Vehicle Solutions
Vehicle Solutions Sales and Adjusted Operating Income Commentary Q3 YTD Revenue ($mm) • Q3 revenue declined 16% due to lower customer demand and wind-down of certain programs -16% -14% 362.8 • Q3 adjusted OI decline of $4.5 million driven by lower volumes, 115.2 312.8 operational investments, plant
Slide 9: Aftermarket
Aftermarket Sales and Adjusted Operating Income Commentary Q3 YTD Revenue ($mm) • Q3 revenue declined 8% year-over-year with lower sales volume -8% resulting from a reduction of backlog in the prior period and -8% decreased customer demand 106.7 33.8 98.0 31.1 • Q3 adjusted OI decline of $0.4 millio
Slide 10: Key CVG Markets Update
Key CVG Markets Update NA Class 8 Heavy Truck Build Outlook CVG Revenue by End Market ACT Research is forecasting a weaker 2024/2025 followed by strong growth 340 348 315 -7% 316 +23% -10% 283 Heavy Truck 30 - 35% 2022 2023 2024F 2025F 2026F Construction/Ag Source: ACT Research Units in Thousands 25
Slide 11: Updated Fiscal 2024 Outlook
Updated Fiscal 2024 Outlook FY24 CVG Outlook ($M) Metric Prior 2024 Outlook(1) Revised 2024 Outlook(1) Net Sales $730 – $780 $710 – $740 Adjusted EBITDA $28 - $36 $20 – $25 (1) This outlook excludes any contribution from CVG’s Cab Structures or Industrial Automation businesses in 2024. On October 1,
Slide 12: Building a Stronger Future…
Building a Stronger Future… Segment Vehicle Solutions Electrical Systems Aftermarket Corporate • Headcount reduction • Improved efficiency, and capacity • Centralized global completed sale of utilization shifting to • Taking steps to operations under new Key Cab Structures lower-cost facilities impr
Slide 13: Appendix
Appendix Q3 2024 Earnings Presentation - 13
Slide 14: Non-GAAP Financial Measures
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 multi-year corporat
Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q3 2024 Q3 2023 YTD 2024 YTD 2023 Operating Income/(Loss) (1.1) 8.9 4.5 35.8 Restructuring 4.2 - 9.8 0.4 Gain on sale of fixed assets (3.5) (3.5) Adjusted Operating Income (0.4) 8.9 10.7 36.2 % of Revenues (0.2%) 4.4% 1.9% 5.6% Net
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q3 Q3 YTD YTD 2024 2023 2024 2023 Net income/(Loss) from continuing operations (0.9) 4.7 (0.7) 21.1 Operating income (loss) adjustments 0.7 - 6.2 0.4 Adjusted (benefit) provision for income
Slide 17: Segment GAAP to Non-GAAP QTD
Segment GAAP to Non-GAAP QTD For the Three Months Ended September 30, 2024 Vehicle Electrical (in millions) Solutions Systems Aftermarket Corporate Total Operating Income/(Loss) 5.1 (0.4) 3.1 (9.0) (1.1) Restructuring 2.2 1.3 0.8 - 4.2 Gain on Sale of Fixed Assets (3.5) - - - (3.5) Adjusted Operatin
Slide 18: Segment GAAP to Non-GAAP YTD
Segment GAAP to Non-GAAP YTD For the Nine Months Ended September 30, 2024 Vehicle Electrical (in millions) Solutions Systems Aftermarket Corporate Total Operating Income/(Loss) 16.2 2.1 11.9 (25.7) 4.5 Restructuring 4.9 3.7 1.0 0.2 9.8 Gain on Sale of Assets (3.5) - - - (3.5) Adjusted Operating Inco
Slide 19: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q3 2024 Q3 2023 YTD 2024 YTD 2023 CONTINUING OPERATIONS Cash Flow from Operations $ (4.2) $ 16.9 $ (2.3) $ 21.0 Capital Expenditures1 1.6 (5.6) (9.3) (14.8) Proceeds From Sale of Business 19,8 - 23.0 - Free Cash Flow from Continu
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Income/(Loss) 22.3 1.4 (1.3) (0.9) Interest Expense 2.3 2.2 2.4 2.4 Provision (benefit) for income taxes (21.3) 0.7 (0.3) (1.5) Depreciation Expense 3.4 3.5 3.5 3.6 Amortization Expense 0.2 0.2 0.
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