Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q2 2024 Earnings Presentation
22 slides from Commercial Vehicle's earnings presentation, Aug 6, 2024
Slide 1: Earnings Presentation Q2 2024
Earnings Presentation James Ray – President & Chief Executive Officer Q2 2024 Andy Cheung – Executive Vice President & Chief Financial Officer August 6, 2024
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”, “ta
Slide 3: Q2 2024 Highlights
Q2 2024 Highlights YTD HIGHLIGHTS Q2 FINANCIAL HIGHLIGHTS FREE CASH FLOW NEW BUSINESS WINS $6.4 MILLION ~$80 MILLION • Free cash generation ADJUSTED EBITDA in Q2’24 driven by • Year-to-date program wins, REVENUE working capital estimated peak annual value when $230 $10.0 efficiency fully ramped, maj
Slide 4: Sale of Cab Structures Business
Sale of Cab Structures Business • Design, manufacture and assembly of cab structures, primarily for Business Overview Class 8 trucks, with Volvo Mack as the main customer • Facility located in Kings Mountain, NC with ~230 employees • A Volvo Group Company is acquiring the business for $40 million in
Slide 5: Key Focus Areas for 2024
Key Focus Areas for 2024 Enhance Electrical Systems' Operational Efficiency • Key end markets continue to soften, Electric Vehicle customer ramps are slowed or delayed • Focus on execution of restructuring activities to right-size for current market conditions • Footprint rotation to improve margins
Slide 6: Navistar named CVG as 2024 Top Supplier
Navistar named CVG as 2024 Top 4 Supplier Navistar Honors Top Suppliers with 2024 Supplier Excellence Awards Lisle, Ill. (June 20, 2024) – Today Navistar Inc. (“Navistar”) announced the recipients of its 2024 Supplier Excellence Awards. The annual Performance Awards recognize four top performing sup
Slide 7: First Quarter & First Half 2024 Results
First Quarter & First Half 2024 Results CONSOLIDATED RESULTS Commentary Three Months Six Months GAAP Measures Ended Jun 30 Ended Jun 30 • Revenue down 12% in Q2 driven by a softening in customer ($ in millions except for share 2024 2023 2024 2023 demand globally, the wind down of certain programs an
Slide 8: Electrical Systems
Electrical Systems Sales and Adjusted Operating Income Commentary Q2 First Half Revenue ($mm) • Revenue decline of 21% in the quarter driven primarily by lower customer demand in the construction and agriculture end-markets, and -10% -21% the phase out of lower margin business 63.6 118.4 50.2 105.9
Slide 9: Vehicle Solutions
Vehicle Solutions Sales and Adjusted Operating Income Commentary Q2 First Half • Q2 revenue declined 8% due to the wind-down of certain programs, Revenue ($mm) continuing from Q1, and lower customer demand, including in European markets -8% -11% 152.7 313.3 • Q2 adjusted OI decline of $6.1 million d
Slide 10: Aftermarket & Accessories
Aftermarket & Accessories Sales and Adjusted Operating Income Commentary Q2 First Half • Q2 revenue declined 8% against a strong comparison as customers Revenue ($mm) continue to manage inventory levels -8% -9% 36.8 • Q2 adjusted OI margin decline of $0.8 million; sequential improvement 74.5 33.9 67
Slide 11: Industrial Automation
Industrial Automation Sales and Adjusted Operating Income Commentary Q2 First Half • Q2 revenue down 45% as customer demand declined Revenue ($mm) • Focused on generating new orders -50% -45% 18.8 • Q2 adjusted OI up $0.8 million driven by lower costs and prior period 9.0 inventory adjustments 5.0 9
Slide 12: Key CVG Markets Update
Key CVG Markets Update CVG Revenue by End Market NA Class 8 Heavy Truck Build ACT Research is forecasting a weaker 2024 followed by strong growth Units in Thousands 340 346 315 308 311 Strong sequential growth Heavy Truck Construction/Ag -9% +11% 35 - 40% +1% expected following H2’24 20 – 25% End Ma
Slide 13: Updated Fiscal 2024 Outlook
Updated Fiscal 2024 Outlook FY24 CVG Outlook ($mm) 2024 Revenue Guidance Mid-Point Walk ($mm) $915 – $1,015 $930 Revised 2024 Adjusted Revised Metric Prior 2024 Outlook Outlook 2024 Outlook(1) ($35) $730 - $780 ($140) ($35) Net Sales 915 – 1,015 900 – 960 730 – 780 Weaker Con/Ag markets Strategic de
Slide 14: Addressing Current Challenges to Build a Stronger Future
Addressing Current Challenges to Build a Stronger Future Segment Vehicle Solutions Electrical Systems Aftermarket • Mitigating launch • Headcount reduction and • Taking steps to improve Key Actions inefficiencies and expect capacity utilization seat delivery Taken to complete sale of Cab shifting to
Slide 15: Appendix
Appendix Q2 2024 August 6, 2024 15
Slide 16: 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 corporate activities; or (ii) relate
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q2 2024 Q2 2023 YTD 2024 YTD 2023 Operating Income/(Loss) 0.8 15.9 7.3 30.6 Restructuring 4.9 0.7 6.8 1.4 Adjusted Operating Income 5.7 16.7 14.2 32.0 % of Revenues 2.5% 6.4% 3.1% 6.1% Net Income/(Loss) (1.6) 10.1 1.3 18.8 Interest
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP Reconciliation of GAAP to Non-GAAP to Non-GAAP Financial Financial MeasuresMeasures – Adjusted EBITDA Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (in millions) 2022 2022 2023 2023 2023 2023 2024 2024 Net income/(Loss) 3.6 (32.0) 8.7 10.1 7.3 23.3 2.9 (1.6) Interest 2.8 2.9 2.9 2.8 2.6 2.4 2.3 2.5
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q2 Q2 YTD YTD 2024 2023 2024 2023 Net income/(Loss) (1.6) 10.1 1.3 18.8 Operating income (loss) adjustments 0.7 6.8 1.4 4.9 Adjusted (benefit) provision for income taxes (1.2) (0.1) (1.7) (
Slide 20: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended June 30, 2024 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 5.1 0.5 4.5 (1.0) (8.3) 0.8 Restructuring 3.2 1.4 0.2 0.1 - 4.9 Adjusted Operating Income/(Loss) 8.3 1.9
Slide 21: Segment GAAP to Non GAAP YTD
Segment GAAP to Non GAAP YTD For the Six Months Ended June 30, 2024 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 15.4 2.5 9.0 (3.0) (16.6) 7.3 Restructuring 3.8 2.5 0.2 0.2 0.1 6.8 Adjusted Operating Income/(Loss) 19.2 5
Slide 22: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Cash Flow from Operations $ 38.3 $ 35.2 $ 0.1 $ 11.5 $ 18.5 $ 8.3 $ (2.4) $ 12.6 Capital Expenditures1 (3.9) (7.2) (3.3) (5.9) (6.0) (4.5) (5.1) (6.2) Free Cash Flow
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