Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q1 2011 Earnings Presentation
24 slides from Cooper-standard's earnings presentation, May 11, 2011
Slide 1: Cooper Standard 1Q 2011 First Quarter Earnings Call
Cooper Standard 1Q 2011 First Quarter 2011 Earnings Call May 11, 2011 Exhibit 99.2
Slide 2: Introduction & Agenda
Introduction & Agenda • Introduction: Glenn Dong, Treasurer • Executive Overview: Jim McElya, CEO • Business Highlights: Keith Stephenson, COO • Financial Review & Updated Guidance: Allen Campbell, CFO • Questions & Answers
Slide 3: Safe Harbor
Safe Harbor In addition to historical information, certain statements contained herein are forward-looking statements within the meaning of federal securities laws, and Cooper Standard Automotive (Cooper Standard) intends that such forward- looking statements be subject to the safe-harbor created th
Slide 4: Safe Harbor
Safe Harbor This presentation includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual result
Slide 5: Executive Overview 1Q 2011
Jim McElya Chairman & CEO Executive Overview 1Q 2011
Slide 6: Executive Overview: First Quarter 2011 Review
Executive Overview: First Quarter 2011 Review • Strong top and bottom-line results: – Sales growth of 15.5%, up across all regions – Adjusted EBITDA margin of 13.3% • Demonstrating the value of our: – Global and diversified customer base – Advantageous business model – Cost discipline – Focus on qua
Slide 7: Executive Overview: First Quarter 2011 Review
Executive Overview: First Quarter 2011 Review • Strategic progress: – High quality wins consistent with global and diverse customer positioning – Recent opportunistic transactions support revenue growth strategies » FMEA / Barre-Thomas and Nishikawa: Global platforms, emerging markets » USi: Technol
Slide 8: Executive Overview: FMEA / Barre-Thomas Transaction
Executive Overview: FMEA / Barre-Thomas Transaction • Material strategic and financial benefits, minimal cash investment • 51% ownership of joint venture with FMEA combining our French body sealing operations with the operations of Barre-Thomas • Strategic benefits: – Expands leadership position in
Slide 9: Executive Overview: Industry Trends
Executive Overview: Industry Trends • Vehicle mix changes • Raw material costs increase • Increased demand for new technology • Strong demand for engineers • Japanese earthquake impact affecting production schedules
Slide 10: Business Highlights
Business Highlights 1Q 2011 Keith Stephenson Chief Operating Officer
Slide 11: Business Highlights
Business Highlights 1 st Quarter • Sales improvement due to recovering volumes and favorable mix • Increased sales across all regions • Several important new business wins • Barre-Thomas deal helping to drive additional business opportunities
Slide 12: Sales By Region & Product Groups
Sales By Region & Product Groups Q1 2011 = $688.8 Million Unconsolidated JV’s – HASCO and NISCO Sales By Product As Reported Sales By Product Unconsolidated JVs Sales By Region With Unconsolidated JVs Sales By Region As Reported North America 52% Europe 35% Asia Pacific 8% South America 5% Sealing 4
Slide 13: Cooper Standard's Top Platforms Q1 2011
Cooper Standard’s Top 20 Platforms Q1 2011 #5 GM LaCrosse #2 Ford Tribute/Escape #20 Peugeot #1 Ford F-150 #7 GM Silverado/Sierra #9 Ford Fusion / Edge #13 Fiat Linea/Punto/Stilo/Bravo #8 Ford Explorer #14 VW Passat #3 GM Tahoe/Yukon/ Escalade #4 Ford Fiesta/Fusion #10 GM Impala #6 Ford Mondeo/Freel
Slide 14: Vehicle Launches
Vehicle Launches st Quarter – Ford F-150 Thermal Management – Ford Focus Sealing – GM Chevrolet Camaro Convertible Sealing – Honda Civic Sealing – Nissan Altima Thermal Management – Nissan Leaf Thermal Management – Nissan Commercial Van Thermal Management Sealing – Renault 3008 Thermal Management –
Slide 15: USi Transaction
USi Transaction • Proprietary technology • Acquisition of USi, Inc., from Ikuyo Co. Ltd. of Japan • Unique coating for surface and a full-range of bright trim sealing assemblies that are quickly gaining popularity Plan to extend technology and capabilities to European and Brazil businesses
Slide 16: Financial Overview
Financial Overview 1Q 2011 Allen Campbell Chief Financial Officer
Slide 17: Opportunistic Transactions: Immediate benefits
Opportunistic Transactions: Immediate benefits • In addition to strategic benefits: • FMEA / Barre-Thomas: French supplier consolidation • Adds three European facilities and Indian JV • JV self-funds incremental restructuring expense • Minimal incremental cash investment • USi: Unique technology • A
Slide 18: Q1 2011 Performance
Q1 2011 Performance $ Millions Net Sales Operating Profit Gross Profit Q1 2011 Q1 2010 $ 688.8 $ 596.3 $ 51.4 $ 51.0 $ 120.8 $ 104.5 Net Income $ 44.9 $ 3.4 Adjusted EBITDA (excluding qtr. one times) $ 91.9 $ 74.2 % Margin 13.3% 12.4% SGA $ 60.9 $ 53.1
Slide 19: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation $ USD Millions Net Income $3.4 $ 44.9 Provision for income tax expense 7.3 EBITDA $43.7 $ 96.0 Restructuring 0.3 4.6 Adjusted EBITDA $ 74.2 $ 91.9 12.3 3 Months Ended March 31st Net interest expense 11.8 9.9 Depreciation and amortization 21.2 28.9 Unrealized
Slide 20: Cash Flow 1Q 2011
Cash Flow 1Q 2011 Cash Balance as of December 31 294.5 $ Cash used (34.8) Cash Balance as of March 31 259.7 $ ($ in Millions) Q1 - 2011 Cash from business 66.3 $ Pension funding (25.6) Changes in operating assets & liabilities (62.3) Cash used in Operations (21.6) $ Capital Expenditures (16.2) Cash
Slide 21: Revised Guidance
Revised Guidance* • Sales: $2.7 billion - $2.8 billion • Capital expenditures: $95 million - $105 million • Cash restructuring: $30 million - $40 million • Cash taxes: $25 million - $30 million * Forecast is based on Cooper Standard estimates for North American production of 13.3. million, and Europ
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
Slide 23: Questions & Answers
Questions & Answers
Slide 24: 2011 Summary
Q1 2011 Summary • Effectively executing on our business plan • New business: global platforms, emerging markets, premier brands • Smart acquisitions fill strategic needs and complements organic growth • Effectively managing impact of raw material pricing and sourcing issues • All while maintaining q
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