Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q1 2014 Earnings Presentation
21 slides from Cooper-standard's earnings presentation, May 6, 2014
Slide 1: Drive for Profitable Growth: First Quarter Earnings Call
1 DRIVE FOR PROFITABLE GROWTH First Quarter Earnings Call May 6, 2014
Slide 2: Forward-Looking Statements
2 2 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. We make forward-looking statements in this presentation and may
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
3 Jeff Edwards Chairman and Chief Executive Officer
Slide 4: Achieving Profitable Growth
4 4 Achieving Profitable Growth • Year-over-year sales growth of 12% • Building momentum in quarter towards improved profitability and on-target for double digit adjusted EBITDA margins • Stabilizing challenges in North America • Gaining traction in Europe • Improving global bench strength
Slide 5: Stabilizing & Improving Operations in NA
5 5 • Outlook: 2014 volumes remain strong – Possible headwinds on full-size trucks in second half* • Posting strong year-over-year sales increase of 13% • Isolated challenges stabilized – Resume normalized operations by end of Q2 and on track to stronger adjusted EBITDA margins • Investing in bench
Slide 6: Delivering Improved Margins in Europe
6 6 Delivering Improved Margins in Europe • Outlook: modest volume pick-up in quarter – Full year forecast remains unchanged • Sales increased 16.5% year-over-year • Enhanced leadership strength has resulted in improved operational performance • Serbia facility on schedule with ramp-up expected thro
Slide 7: Focused on Asia Pacific Profitable Growth
7 7 Focused on Asia Pacific Profitable Growth • Outlook: 2014 volumes remain stable • Strong capital investment (11.2% of sales) • Sealing production started at Bawal, India facility • Opening new R&D center in Shanghai, China – Will provide additional engineering capabilities and customer support •
Slide 8: Addressing Challenges in South America
8 8 • Outlook: challenging economic environment – Foreign exchange volatility – Decreasing vehicle production in 2014 • Gaining market share • Multiple launches in first half • Improving operating performance and financial metrics Addressing Challenges in South America
Slide 9: Bringing Innovation to Market
9 9 Bringing Innovation to Market • Sealing & Trim Systems – Premium sealing technology • Fuel & Brake Delivery Systems – Third generation quick connect – Coating technology • Fluid Transfer Systems – Proprietary forming technology introduced – ArmorHoseTM technology introduced • Anti-Vibration Syst
Slide 10: Allen Campbell, Executive Vice President and Chief Financial Officer
10 Allen Campbell Executive Vice President and Chief Financial Officer
Slide 11: Q1 2014 Financial Overview
11 11 Q1 2014 Financial Overview $ USD Millions Q1 2013 Revenue: $748 Q1 2014 Revenue: $838 Note: Numbers subject to rounding Q1 2013 Q1 2014 Sales 747.6 837.6 Gross Profit 120.3 134.3 SGA 75.1 79.6 Operating Profit 36.6 47.2 Net Income 20.7 19.7 Fully Diluted EPS $0.86 $1.10 Adjusted EBITDA 76.7 80
Slide 12: EBITDA and Adjusted EBITDA Reconciliation
12 12 EBITDA and Adjusted EBITDA Reconciliation EBITDA and Adjusted EBITDA are Non-GAAP measures. See appendix. Note: Numbers subject to rounding $ USD Millions 2014 Net income Income tax expense EBITDA Restructuring Adjusted EBITDA Three Months Ended March 31, Net interest expense Depreciation and
Slide 13: Improving Adjusted EBITDA Margin
13 13 Improving Adjusted EBITDA Margin EBITDA and Adjusted EBITDA are Non-GAAP measures. See appendix. $76.7 $82.5 $69.5 $58.7 $80.6 $0 $20 $40 $60 $80 $100 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Adjusted EBITDA ($USD Millions) 10.3% 10.5% 9.1% 7.4% 9.6% • Continue to address product and plant chal
Slide 14: Q1 2014 Cash Flow
14 14 Q1 2014 Cash Flow Note: Numbers subject to rounding $184.4 $138.0 $61.7 $5.9 $4.6 $3.0 $57.8 $63.8 $0 $50 $100 $150 $200 $250 $300 Cash balance as of 12/31/2013 Cash from business Financing activities Proceeds from warrant exercise FX and others Changes in operating assets and liabilities Capi
Slide 15: Recent Refinancing Improves EPS and Liquidity
15 15 Recent Refinancing Improves EPS and Liquidity • April 4 - entered into a $750 million Term Loan Facility at L+300 bps due 2021 – Proceeds used to refinance 7 ⅜% Senior PIK Toggle Notes and 8 ½ % Senior Notes – Facility offers significant flexibility around investments/acquisitions • Annual int
Slide 16: 2014 Guidance
16 16 2014 Guidance Key Assumptions: North American production 16.8 million European (including Russia) production 19.6 million Average full year exchange rate 1 EUR = $1.38 USD 1 CAD = $.91 USD *G=Guidance Return to full year double-digit Adjusted EBITDA margin Cash Balance as of March 31, 2012 296
Slide 17: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 18: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 19: Net Leverage Ratio and Adj. EBITDA % Margin as of March 31, 2014
19 19 Net Leverage Ratio and Adj. EBITDA % Margin as of March 31, 2014 (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at ti
Slide 20: Net Leverage Ratio and Adj. EBITDA % Margin as of March 31, 2013
20 20 Net Leverage Ratio and Adj. EBITDA % Margin as of March 31, 2013 (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at ti
Slide 21: Non-GAAP Financial Measures
21 21 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. Management considers EBITDA and adjusted EBITDA as key indicators of the Company's operating performa
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