Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q2 2021 Earnings Presentation
25 slides from Commercial Vehicle's earnings presentation, Aug 4, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 2021 W E F I N D A WAY !
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: Presented by
Presented by Harold Bevis Chris Bohnert President and Chief Financial Officer Chief Executive Officer and Investor Relations Q2 2021 Earnings Presentation | 3
Slide 4: Q2 2021 Highlights
Q2 2021 Highlights Continue to have increasing sales and additional new business wins Many wins are in prototype and pre-launch mode YTD Net New Q2 Net Sales Q2 Operating Income Q2 Adj. EBITDA Q2 Diluted Adj. EPS Business Awards $258M $16.3M $21.6M $0.33 $129M Annualized 103% YoY Quarterly Sales Ver
Slide 5: Strategic Realignment – Q2 2021 Update
Strategic Realignment – Q2 2021 Update Grow Earnings and Expand End Markets Leverage Strengths for Expand in Warehouse Expand in Electric Expand End Market New Business Automation Vehicles Coverage $129M of net new business Sales on track to meet or Working with 25 electric vehicle Majority of YTD a
Slide 6: 2021 YTD Sales = $503 Million
2021 YTD Sales = $503 Million Asia Pacific 11% All Other 17% North American OEM Truck Europe 36% 17% Aftermarket / Service 11% End North Geographies Markets America 72% Warehouse Automation 19% OEM Construction Equipment 17% North American Truck Warehouse Automation OEM Construction Equipment First
Slide 7: Warehouse Automation - Benefitting from Retail Ecommerce Growth
Warehouse Automation - The Company is benefitting from retail ecommerce growth, increasing warehouse builds and new CVG wins Market Growth Expectations* (000s) in billions $40 $30 $30 $26 $23 $20 $20 $18 $10 $0 2022E 2023E 2024E 2025E 2026E *Source: Logistics IQ Q2 2021 Earnings Presentation | 7
Slide 8: Electric Vehicle Business Expansion
Electric Vehicle Business Expansion • Value Proposition Resonating Ownership of Electrical System ➢ Speed, agility & knowledge: Digital development and production ➢ High and low voltage system and product design ➢ Integrated development teams ➢ Creating new electrical distribution system products (H
Slide 9: 2021 YTD $129 million Annualized Net New Business Awards
2021 YTD $129 million Annualized Net New Business Awards YTD 21 Awards • Electric Vehicle wins with new market entrants are longer cycle awards that ramp to anticipated volumes through 2026 • 13 wins crossing multiple regions and end markets • Continue to win new business in Warehouse Automation • 8
Slide 10: Conclusion
Grow earnings and expand end markets through our 1 focused new business program The Warehouse Automation market continues to grow. 2 We are focused on gaining new business and we are winning The Electric Vehicle market continues to grow, we are Conclusion 3 focused on achieving “first fit” position
Slide 11: Financial Update
Financial Update Q2 2021 Earnings Presentation | 11
Slide 12: CVG Consolidated Results Q2 2021 vs. Q2 2020
FINANCIAL UPDATE – Q2 2021 CVG Consolidated Results Q2 2021 vs. Q2 2020 In millions Revenues Gross Profit Adj. Operating Income Adjusted EBITDA Q2 2021 $257.9 $34.4 $16.6 $21.6 Gross Margin: 13.3% Operating Margin: 6.4% EBITDA Margin: 8.4% Better / Revenues Gross Profit Adj. Operating Income Adjuste
Slide 13: Electrical Systems Segment Q2 2021 vs. Q2 2020
FINANCIAL UPDATE – Q2 2021 Electrical Systems Segment Q2 2021 vs. Q2 2020 In millions Revenues Gross Profit Adj. Operating Income Q2 2021 $175.1 $23.8 $18.7 Gross Margin: 13.6% Operating Margin: 10.7% Better / Revenues Gross Profit Adj. Operating Income (Worse) $100.9 $22.7 $19.4 Compared to Q2 2020
Slide 14: Global Seating Segment Q2 2021 vs. Q2 2020
FINANCIAL UPDATE – Q2 2021 Global Seating Segment Q2 2021 vs. Q2 2020 In millions Revenues Gross Profit Adj. Operating Income Q2 2021 $84.9 $10.6 $5.0 Gross Margin: 12.5% Operating Margin: 5.9% Better / Revenues Gross Profit Adj. Operating Income (Worse) $31.0 $5.3 $2.9 Compared to Q2 2020 • Increas
Slide 15: Supplemental Information
Supplemental Information Q2 2021 Earnings Presentation | 15
Slide 16: Use Of Non-GAAP Financial Measures
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 multi-year c
Slide 17: CVG Consolidated Results Q2 2021 vs. Q2 2020
CVG Consolidated Results Q2 2021 vs. Q2 2020 (In millions except for share information) Q2 2021 Q2 2020 Revenue 257.9 126.9 Gross Profit 34.4 6.5 Gross Margin 13.3% 5.1% Selling, General & Administrative Expense 17.2 16.1 Amortization Expense 0.9 0.9 Operating Income 16.3 (10.5) Operating Margin 6.3
Slide 18: Electrical Systems Segment Q2 2021 vs. Q2 2020
Electrical Systems Segment Q2 2021 vs. Q2 2020 (In millions) Q2 2021 Q2 2020 Revenue 175.1 74.2 Gross Profit 23.8 1.1 Gross Margin 13.6% 1.5% Selling, General & Administrative Expense 4.5 6.6 Amortization Expense 0.7 0.7 Operating Income 18.6 (6.2) Operating Margin 10.6% -8.3% Adjusted Operating Inc
Slide 19: Global Seating Segment Q2 2021 vs. Q2 2020
Global Seating Segment Q2 2021 vs. Q2 2020 (In millions) Q2 2021 Q2 2020 Revenue 84.9 53.9 Gross Profit 10.6 5.3 Gross Margin 12.5% 9.9% Selling, General & Administrative Expense 5.5 3.7 Amortization Expense 0.1 0.1 Operating Income 5.0 1.5 Operating Margin 5.9% 2.8% Adjusted Operating Income 5.0 2.
Slide 20: CVG Consolidated Balance Sheet
CVG Consolidated Balance Sheet June 30, December 31, in millions 2021 2020 Cash 41.0 50.5 Accounts receivable, net 202.1 151.1 Q2 2021 Highlights Inventories 128.3 91.2 Other current assets 21.6 17.7 Total current assets 393.0 310.5 Working capital % of sales Property, plant and equipment, net 61.3
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (In millions) Q2 2021 Q2 2020 Operating Income/(Loss) $ 16.3 $ (10.5) Deferred Consideration Purchase Accounting 0.1 3.5 Restructuring - 2.9 Investigation 0.2 0.4 Impairment - 0.1 Adjusted Operating Income/(Loss) 16.6 (3.6) % of Revenues 6.5% -2.
Slide 22: Reconciliation of GAAP to Non-GAAP Measures – Adjusted EBITDA
Reconciliation of GAAP to NON-GAAP Financial Measures – Adjusted EBITDA (in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Net income $ (24.6) $ (12.5) $ 4.2 $ (4.1) $ 8.5 $ 5.1 Interest 4.6 5.3 5.5 5.2 5.0 2.8 Provision / (Benefit) for Income Taxes (7.3) (3.1) (1.0) 3.9 2.5 1.5 Depreciat
Slide 23: Reconciliation of GAAP to Non-GAAP Measures – Diluted EPS
Reconciliation of GAAP to NON-GAAP Financial Measures – Diluted EPS Three Months Ended (in millions except for share information) June 30, 2021 June 30, 2020 Net Income/(Loss) $ 5.1 $ (12.5) Operating income (loss) adjustments $ 0.3 6.9 Loss on extinguishment of debt $ 7.2 - Adjusted (benefit) provi
Slide 24: Reconciliation of GAAP to Non-GAAP Segment Information
Reconciliation of GAAP to Non-GAAP Segment Information For the Three Months Ended June 30, 2021 Electrical Global Corporate Total (in millions) Systems Seating Operating Income/(Loss) $ 18.6 $ 5.0 $ (7.3) $ 16.3 Deferred consideration purchase accounting 0.1 - - 0.1 Investigation - - 0.2 0.2 Adjuste
Slide 25: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Cash Flow from Operations $ 10.3 $ 10.1 $ 10.4 $ 3.6 $ (15.4) $ (9.4) Capital Expenditures 1 (3.4) (1.0) (1.0) (1.0) (1.7) (5.2) Free Cash Flow 6.9 9.1 9.4 2.6 (17.1) (14.6) 1: Net
Commercial Vehicle Group — Q2 2021 Earnings Presentation on 6ix