Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2012 Earnings Presentation
26 slides from Cooper-standard's earnings presentation, Aug 10, 2012
Slide 1: Cooper Standard Second Quarter 2012 Earnings Call
Cooper Standard Second Quarter 2012 Earnings Call August 10, 2012 Exhibit 99.1
Slide 2: Introduction & Agenda
Introduction & Agenda • Introduction: Glenn Dong, Treasurer • Executive Overview: Jim McElya, CEO • Business Highlights: Keith Stephenson, COO • Financial Review: Allen Campbell, CFO • Questions & Answers
Slide 3: Safe Harbor
Safe Harbor This presentation includes forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act, reflecting management’s current analysis and expectations, based on what are believed to be reasonable assumptions. The words “estimates,” “expects,” “anticipates,”
Slide 4: Executive Overview
Jim McElya Chairman & CEO Executive Overview Second Quarter 2012
Slide 5: Executive Overview
Executive Overview • Solid results despite global economic challenges – Sales of $734.5 million – Adjusted EBITDA of $74.1 million • Proactively adjusting to changing vehicle production volumes • Automakers in Europe beginning to address overcapacity
Slide 6: Executive Overview (continued)
Executive Overview (continued) • Further investment in capital and infrastructure to support global growth • Robust launch activity continues • Managing raw material costs and supply – Prices stabilizing – Successful management of emergency resin shortage
Slide 7: Business Highlights
Business Highlights Second Quarter 2012 Keith Stephenson Chief Operating Officer
Slide 8: Effectively Managing Industry Challenges
Effectively Managing Industry Challenges • Europe – Combination of eliminating temporary workers, short workweek programs and headcount reductions to match capacity with demand – Transition of certain administrative functions to lower cost countries – Start-up of Romanian facility • South America –
Slide 9: Q2 2012 Operations Overview
Q2 2012 Operations Overview • Continued strong operating performance – Meeting customer and internal key metrics – Improved year-over-year lean savings performance • Higher operating costs associated with vehicle launches, production transfers and expansion – Expenses associated with start-up and re
Slide 10: Raw Materials Update
Raw Materials Update • Moderating inflationary pressure on key commodities • Improving availability • Proactively developing alternative materials Top Five Purchased Material Groups Carbon black EPDM Plastic components Plastic resin Steel
Slide 11: Launches across diverse customers and geographies
• Launches across diverse customers and geographies: – Chrysler – Dodge Dart – BMW – 1 Series – Ford – Fusion – Ford – Escape – Renault - Duster Q2 2012 Launches Renault - Duster Chrysler – Dodge Dart Ford - Escape BMW – 1 Series Note: Photos are representative and may not reflect final production m
Slide 12: Investment in Technology and Capability
Investment in Technology and Capability • Significant progress with new generation thermal management and emissions products – Valves and actuators – Electric water pumps – Exhaust gas recirculation modules – EDC product portfolio • Expanding capability of Fluid business in Asia
Slide 13: Financial Overview
Financial Overview Second Quarter 2012 Allen Campbell Chief Financial Officer
Slide 14: Q2 and Year-to-Date 2012 Performance
Q2 and Year-to-Date 2012 Performance $ USD Millions, except per share amounts Q2 2011 Q2 2012 YTD 2011 YTD 2012 Net Sales North America 366.3 387.3 725.1 775.4 Europe 299.9 264.2 539.6 553.2 Asia Pacific 55.2 48.8 110.6 103.1 South America 39.0 34.2 73.9 68.1 Consolidated 760.5 734.5 1,449.2 1,499.8
Slide 15: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation $ USD Millions Net income Provision (benefit) for income tax expense EBITDA Restructuring Adjusted EBITDA Six Months Ended June 30, Net interest expense Depreciation and amortization Stock based compensation EBITDA and Adjusted EBITDA are Non-GAAP measures.
Slide 16: Consolidated and Unconsolidated Joint Ventures
Consolidated Joint Ventures Unconsolidated Joint Ventures Cooper Standard Joint Venture Sales – Q2 • 6 Core Consolidated Joint Ventures • Locations – China, India – France, Poland – Mexico • Products – Sealing – Fluid – AVS • 4 Unconsolidated Joint Ventures • Locations – US – Asia • Products – Seali
Slide 17: Cash Flow Q2 and Year-to-Date 2012
Cash Flow Q2 and Year-to-Date 2012 Note: Numbers subject to rounding Cash Balance as of March 31, 2012 $ 296.0 Cash used (43.9) Cash Balance as of June 30 , 2012 $ 252.1 ( $ USD Millions ) Q2 2012 YTD Q2 2012 Cash from business 61.8 123.0 Pension funding - US (3.3) (23.5) Changes in operating assets
Slide 18: Liquidity as of June 30, 2012
Liquidity as of June 30, 2012 Cash on Balance Sheet $252.1 ABL Revolver 125.0 Letters of Credit (27.6) Total Liquidity $349.5 Strong balance sheet and liquidity to support growth • ABL Revolver undrawn • Net leverage = $233.7 million • Net leverage ratio = 0.8 • Interest coverage ratio = 7.2 • No ma
Slide 19: 2012 Guidance
2012 Guidance * Sales guidance is based on North American production of 14.9 million, and Europe (including Russia) production of 18.9 million. $2.85 $2.85 - $2.95 Revenue $2.0 $2.3 $2.5 $2.8 $3.0 Revenue $0 $20 $40 $60 $80 $100 $120 $140 Capital Expenditure Cash Restructuring Cash Taxes $110-$120 $
Slide 20: 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 21: Questions & Answers
Questions & Answers
Slide 22: Summary
Summary Proactively addressing changing global environment • Solid performance despite economic headwinds • Continued investment in technology and capabilities • Adjusting to fluctuations in production volumes
Slide 23: Cooper Standard
G CooperStandard
Slide 24: Adjusted EBITDA Q2 2011 and 2012
Adjusted EBITDA Q2 2011 and 2012 Note: Numbers subject to rounding Three Months Ended June 30, Net income $ 19.0 $ 77.3 Provision (benefit) for income tax expense 6.5 (46.2) Interest expense, net of interest income 10.7 10.8 Depreciation and amortization 31.4 30.5 EBITDA $ 67.6 $ 72.4 Restructuring
Slide 25: Net Leverage Ratio as of June 30, 2012
Net Leverage Ratio as of June 30, 2012 (1) Includes cash and 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 emergence from bankruptcy
Slide 26: Adjusted EBITDA as a percent of Sales - LTM
Adjusted EBITDA as a percent of Sales - LTM Note: Numbers subject to rounding (1) Includes cash and 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 gra
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