Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2013 Earnings Presentation
22 slides from Cooper-standard's earnings presentation, Aug 9, 2013
Slide 1: Cooper Standard Second Quarter Earnings Call
Exhibit 99.1 Cooper Standard Second Quarter Earnings Call August 9, 2013
Slide 2: Safe Harbor
Safe Harbor 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 make such statemen
Slide 3: Executive Overview Second Quarter 2013
Executive Overview Second Quarter 2013 Jeff Edwards Chairman and Chief Executive Officer
Slide 4: Executive Overview: Industry Landscape
Executive Overview Industry Landscape: • North America vehicle production remains strong • Europe headwinds remain, performing as expected • China still growing, some softening taking place • Brazil volatility continues Passion for Performance 4
Slide 5: Executive Overview: Second Quarter Financial Highlights
Executive Overview Second Quarter Financial Highlights: • Sales trajectory on-track and on-pace with industry – Consolidated sales of $784.7 million – 6.8% increase over same quarter 2012 • Successful capital market transactions – $200 million equity self-tender – $200 million bond offering • Contin
Slide 6: Executive Overview: Second Quarter Operational Highlights
Executive Overview Second Quarter Operational Highlights: • Completed staffing of Global Leadership Team • Celebrated groundbreaking for new manufacturing facility in Serbia • Acquired automotive sealing business of Jyco Sealing Technologies with manufacturing locations in Canada, Mexico and China •
Slide 7: Drive for Profitable Growth
Drive for Profitable Growth Long-Term Objective: Top 30 automotive supplier in revenue and top 5 for ROIC Avenues for Success • Leveraging product • Expanding customer leadership positions relationships • Investing in innovation • Targeting new markets • Advantaged global footprint and • High perfor
Slide 8: Financial Overview Second Quarter 2013
Financial Overview Second Quarter 2013 Allen Campbell Chief Financial Officer
Slide 9: Q2 and Year-to-Date 2013 Revenue
Q2 and Year-to-Date 2013 Revenue $ USD Millions Second Quarter Year-to-Date $500 $1,000 $400 $400 $387 $775 $783 $750 $284 $300 $264 $553 $548 $500 $200 $250 $100 $103 $105 $49 $51 $50 $96 $34 $68 $0 $0 North Europe Asia Pacific South North Europe Asia Pacific South America America America America Q
Slide 10: Q2 and Year-to-Date 2013 Performance
Q2 and Year-to-Date 2013 Performance $ USD Millions, except EPS / % Second Quarter Year-to-Date 2012 2013 2012 2013 $734.5 $784.7 Sales $1,499.8 $1,532.3 114.4 132.3 Gross Profit 236.1 252.6 15.6% 16.9% % Margin 15.7% 16.5% 69.0 72.7 SGA 141.0 147.8 42.1 54.6 Operating Profit 81.8 91.1 5.7% 7.0% % M
Slide 11: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Six Months Ended June 30, $ USD Millions 2012 2013 Net income $ 101.1 $ 48.1 Income tax expense (benefit) (38.2) 20.1 Net interest expense 22.0 24.8 Depreciation and amortization 62.1 58.0 EBITDA $ 147.0 $ 151.0 Restructuring, net of noncontrolling interest
Slide 12: Q2 and Year-to-Date 2013 Cash Flow
Q2 and Year-to-Date 2013 Cash Flow ($ USD Millions) Q2 2013 YTD 2013 Cash from business $67.3 $121.2 Pension funding - US (7.1) (7.1) Changes in operating assets & liabilities (74.4) (141.6) Cash used in operations (14.2) (27.5) Capital expenditures (35.8) (70.1) Cash used in operations and CAPEX (5
Slide 13: Other Financial Highlights
Other Financial Highlights • Completed a $200 million equity self-tender on May 2 nd – 4.7 million shares purchased at $43 per share • Issued $200 million 7 3/8% Senior PIK Toggle Notes due April 2018 Capitalization Table ($ USD Millions) Key Financial Ratios Cash & equivalents $160.5 • Net leverage
Slide 14: Full Year 2013 Financial Outlook
Full Year 2013 Financial Outlook • Sales growth 5 to 6% over 2012 • Capital expenditures $165 to $175 million • Cash restructuring $25 to $30 million • Cash taxes $15 to $20 million • Key Assumptions: - North American production 16.2 million - Europe (including Russia) production 18.7 million - Aver
Slide 15: Summary
Summary • Strategy gaining traction • Solid second quarter earnings results • Continuing to position Company for profitable growth • Right people, product portfolio and resources to achieve business objectives Focused on exceeding customer expectations, enhancing operational execution and achieving
Slide 16: Questions & Answers
Questions & Answers G CooperStandard PASSION FOR PERFORMANCE
Slide 17: Appendix
Appendix G CooperStandard PASSION FOR PERFORMANCE
Slide 18: EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2012
EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2012 Six ($ USD Millions) Months Three Months Ended Ended Mar 31, Jun 30, Jun 30, 2012 2012 2012 Net income $ 23.8 $ 77.3 $ 101.1 Income tax expense (benefit) 8.1 (46.2) (38.2) Interest expense, net of interest income 11.2 10.8 22.0 Depreciation
Slide 19: EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2013
EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2013 Six Months ($ USD Millions) Three Months Ended Ended Mar 31, Jun 30, Jun 30, 2013 2013 2013 Net income $ 20.7 $ 27.4 $ 48.1 Income tax expense 7.9 12.2 20.1 Interest expense, net of interest income 11.2 13.6 24.8 Depreciation and amortizati
Slide 20: LTM EBITDA and Adjusted EBITDA as of June 30, 2012
LTM EBITDA and Adjusted EBITDA as of June 30, 2012 Twelve Months ($ USD Millions) Three Months Ended Ended Sep 30, Dec 31, Mar 31, Jun 30, Jun 30, 2011 2011 2012 2012 2012 Net income $ 15.7 $ 23.2 $ 23.8 $ 77.3 $ 140.0 Income tax expense (benefit) 8.0 (6.0) 8.1 (46.2) (36.1) Interest expense, net of
Slide 21: Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2013
Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2013 Twelve Months ($ USD Millions) Three Months Ended Ended Sep 30, Dec 31, Mar 31, Jun 30, Jun 30, 2012 2012 2013 2013 2013 Net income $ 11.6 $ (9.9) $ 20.7 $ 27.4 $ 49.8 Income tax expense 5.4 1.2 7.9 12.2 26.7 Interest expense, net of in
Slide 22: Non-GAAP Financial Measures
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. When analyzing the company’s operating performance, investors should use EBITDA and adjusted EBITDA in add
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