Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q3 2022 Earnings Presentation
21 slides from Commercial Vehicle's earnings presentation, Nov 3, 2022
Slide 1: Earnings Presentation Q3 - 2022
Earnings Presentation Q3 - 2022 Harold Bevis — President & Chief Executive Officer November 3, 2022 Andy Cheung - Executive Vice President & Chief Financial Officer '
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures CVG 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”,
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights FINANCIAL HIGHLIGHTS an % NET SALES ADJUSTED EBITDA $251.4 $14.3 MILLION MILLION X < ADJUSTED OPERATING INCOME | DILUTED ADJ. EPS $10.6 $0.15 MILLION Note: US GAAP net income attributable to Commercial Vehicle Group, Inc. was $3.6M for Q3 FY22. GAAP diluted earnings per share was
Slide 4: Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22
Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 • → •
Slide 5: Electrical Systems All other
400 300 200 100 0 2023 2024 2025 Electrical Systems All other
Slide 6: Electrical Systems Other Segments
• • Electrical Systems Other Segments • • •
Slide 7: E-Commerce Aftermarket Business is Nearing Launch
E-Commerce Aftermarket Business is Nearing Launch Organize Business & Adapt to Post-Covid Get Product Lines Ready Adapter plates for all-make seats Design new custom floormat offering Design new wiper product Design new seat cushion with Serta Design new road watch sensors Get Software Platform Read
Slide 8: Focused and Optimized
Focused and Optimized Base Business Improve profitability or exit Control cost structure and manufacture in-house what we should Lower our costs by getting better and smarter, lean down SG&A Win New Accretive Business Secular growth in Electric Vehicle market globally Expand and diversify our custom
Slide 9: 2021 2025-2027E 2021 2025-2027E • • • •
2021 2025-2027E 2021 2025-2027E • • • •
Slide 10: CVG Investment Highlights
CVG Investment Highlights a oe Significantly improved our pricing across customer base to ensure we are earning attractive margins and to offset material cost increases This will help achieve our goal of 8.5% operating income margin Continuing to win first-fit positions and 2022 on track for 3rd yea
Slide 11: Financial Review Third Quarter 2022
Financial Review Third Quarter 2022
Slide 12: Third Quarter Results
Third Quarter Results Thi Months E. Thi Months E. GAAP Measures ree Months SO September NON-GAAP Measures ree Months SO September ($ in millions except for share information) 2022 2021 ($ in millions except for share information) 2022 2021 Revenue $251.4 $239.6 Adjusted Operating Income $106 $12.2 G
Slide 13: Third Quarter Segment Results
Third Quarter Segment Results All Vehicle Businesses Up in Sales and Profits, Offsetting Warehouse Automation Pause Adjusted Segment Results Net Sales Operating Income For the Three Months Ended 2022 2021% Change! 2022 2021 % Change September 30, 2022 (in millions) $154.0 $1179 31%] $96 $2.9 230% $4
Slide 14: Looking Forward
Looking Forward CVG * Completing another round of inflation-driven price increases in Q4 on existing business +> And readying another round for Q1 2023 * Electrical Systems business for Electric Vehicles market is growing, and our opportunities are large and attractive ~> Building two new, low-cost
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures
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 corporat
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures cvcG Operating Income 9.5 11.4 Deferred Consideration Purchase Accounting 01 01 Restructuring 07 - Executive transition 03 07 Adjusted Operating Income 10.6 12.2 % of Revenues 4.2% 5.1% Net Income/(Loss) 3.6 75 Interest Expense 28 16 Provision (b
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures — Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Financial Measures — Adjusted EBITDA (in millions) Net income/(Loss) (4.1) 8.5 5.1 75 2.6 4.0 25 3.6 Interest 5.2 5.0 28 16 W 2.0 21 28 Provision / (Benefit) for Income Taxes 3.9 25 15 2.4 1.9 14 0.9 1.3 Depreciation 3.8 3.8 3.8 3.7 3.8 3.5 3.7 3.7 Amortization 0.9
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG (in mill Net income/(Loss) 3.6 75 Operating income (loss) adjustments 1.0 0.8 Hryvnia fair value adjustments on forward exchange contracts (0.1) - Pension settlement 1 - Adjusted (benefit) provision for income taxes! (0.5) (0.2)
Slide 20: Segment GAAP to Non-GAAP QTD
Segment GAAP to Non-GAAP QTD For the Three Months Ended September 30, 2022 Vehicle Warehouse Electrical Aftermarket & (in millions) Solutions Automation Systems Accessories Corporate Total Operating Income/(Loss) 9.5 (0.9) 5.1 5.0 (9.1) *9.5 Deferred consideration purchase accounting - 0.1 - - - 0.1
Slide 21: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Cash Flow from Operations $ 36 $ (15.4) $ (94) $ 39 $ (89) $ (214) $ 16.9 $ 383 Capital Expenditures! (1.0) (1.7) (5.2) (4.5) (6.2) (3.6) (5.0) (3.9) Free Cash Flow
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