Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q4 2020 Earnings Presentation
26 slides from Commercial Vehicle's earnings presentation, Mar 10, 2021
Slide 1: Q4 2020 Earnings Presentation
Q4 2020 Earnings Presentation March 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 contains 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”, “c
Slide 3: Presented by
Presented by Harold Bevis Chris Bohnert President and Chief Financial Officer Chief Executive Officer and Investor Relations Q4 2020 Earnings Presentation | 3
Slide 4: Q4 & 2020 Highlights
Q4 & 2020 Highlights CVG is growing its sales and adding new customers in both new and old markets to redefine and transform the business. 2020 New Business Q4 Net Sales Q4 Operating Income Q4 Adj. EBITDA Q4 Diluted EPS Awards $216M $5.0M $13.0M $(0.13) $100+M Net Annualized 14% YoY Driven by Wareho
Slide 5: Strategic Realignment Jump-Started a New GamePlan for Growing Earnings and Diversifying Sales Mix
Strategic Realignment Jump-Started a New GamePlan for Growing Earnings and Diversifying Sales Mix Launched New Approach Expanded in Warehouse Expanded in Reduced End Market to Gain New Customers Automation Electric Vehicles Concentration Goals are to improve secular Added multiple new products Devel
Slide 6: Warehouse Automation - Benefitting from Strong Industry Investment, New Products, New Capacity and New Wins
Warehouse Automation - The Company is Benefitting from Strong Industry Investment, New Products, New Capacity and New Wins (000s) in millions CVG Sales Profile ~16% of Total $40 CVG Sales In Q4 $30 $20 $10 $0 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 Warehouse Automation Sales Market Growth Expectatio
Slide 7: Electric Vehicle and Last Mile Progress
Electric Vehicle and Last Mile Progress • Designing and delivering prototype products for awards won in 2020 and early 2021 for field trials and testing • Securing development partner roles with design responsibilities for multiple vehicle OEs as the electrical systems integrator and/or Seating Supp
Slide 8: Increasing our Earnings Stability by Diversifying our Sales Mix
Increasing our Earnings Stability by Diversifying our Sales Mix CVG Sales Mix Strategic Focus Areas: Truck* • Warehouse Automation systems Truck* 35% • Last Mile Delivery Vans Non- 2009-2019 45% 2020 Truck 10-year average Q4 YTD • Electric Vehicles Non- 55% Truck • Alternate markets for plastic part
Slide 9: Market Outlook for North America Trucks
2020 Market Outlook for North America Trucks Q4 YTD North America Class 8 North America Class 8 Quarterly Build* Annual Build* 90,000 400,000 80,000 350,000 81,003 80,203 346,953 70,000 344,558 300,000 329,528 70,102 71,002 302,310 60,000 65,019 61,267 250,000 59,500 50,000 200,000 40,000 214,249 15
Slide 10: 2020 Results of our Focus on Gaining New Business and Improving our Mix
2020 Results of our Focus on Gaining New Business and Improving our Mix $100+ $400 + MILLION MILLION Estimated value of Net Estimated value of new annualized new business won in 2020 business through 2024 Many Awards with New Customers in new Segments on new Products 40+ New Awards in North America,
Slide 11: Conclusion
Grow earnings, improve revenue quality, increase sales 1 diversification, and reduce business cyclicality risks The Warehouse Automation market has become a 2 significant part of our company, and we have organized to expand it and grow it We are positioning ourselves to be a solutions provider to Co
Slide 12: Financial Update
Financial Update Q4 2020 Earnings Presentation | 12
Slide 13: CVG Consolidated Results 4Q 2020 vs. 4Q 2019
FINANCIAL UPDATE – Q4 2020 CVG Consolidated Results 4Q 2020 vs. 4Q 2019 In millions Revenues Gross Profit Adj. Operating Income Adjusted EBITDA Q4 2020 $216 $23.1 $8.3 $13.0 Gross Margin: 11% Operating Margin: 4% EBITDA Margin: 6% Revenues Gross Profit Adj. Operating Income Adjusted EBITDA B / (W) C
Slide 14: Electrical Systems Segment 4Q 2020 vs. 4Q 2019
FINANCIAL UPDATE – Q4 2020 Electrical Systems Segment 4Q 2020 vs. 4Q 2019 In millions Revenues Gross Profit Adj. Operating Income Q4 2020 $138.6 $14.6 $10.2 Gross Margin: 11% Operating Margin: 7% Revenues Gross Profit Adj. Operating Income B / (W) Compared to Q4 2019 $24.7 $8.8 $7.0 Gross Margin: 5%
Slide 15: Global Seating Segment 4Q 2020 vs. 4Q 2019
FINANCIAL UPDATE – Q4 2020 Global Seating Segment 4Q 2020 vs. 4Q 2019 In millions Revenues Gross Profit Adj. Operating Income Q4 2020 $79.1 $8.5 $2.1 Gross Margin: 11% Operating Margin: 3% Revenues Gross Profit Adj. Operating Income B / (W) Compared to Q4 2019 $2.6 $4.1 $2.2 Gross Margin: 5% Operati
Slide 16: Supplemental Information
Supplemental Information Q4 2020 Earnings Presentation | 16
Slide 17: 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 18: CVG Consolidated Results 4Q 2020 vs. 4Q 2019
CVG Consolidated Results 4Q 2020 vs. 4Q 2019 (In millions except for share information) Q4 2020 Q4 2019 Revenue 216.0 189.5 Gross Profit 23.1 10.2 Gross Margin 11% 5% Selling, General & Administrative Expense 17.3 13.6 Amortization Expense 0.9 0.9 Operating Income 5.0 (4.3) Operating Margin 2% -2% D
Slide 19: Electrical Systems Segment 4Q 2020 vs. 4Q 2019
Electrical Systems Segment 4Q 2020 vs. 4Q 2019 (In millions) Q4 2020 Q4 2019 Revenue 138.6 113.9 Gross Profit 14.6 5.8 Gross Margin 11% 5% Selling, General & Administrative Expense 6.1 4.0 Amortization Expense 0.7 0.7 Operating Income 7.8 1.1 Operating Margin 6% 1% Adjusted Operating Income 10.2 3.2
Slide 20: Global Seating Segment 4Q 2020 vs. 4Q 2019
Global Seating Segment 4Q 2020 vs. 4Q 2019 (In millions) Q4 2020 Q4 2019 Revenue 79.1 76.5 Gross Profit 8.5 4.4 Gross Margin 11% 6% Selling, General & Administrative Expense 6.4 4.9 Amortization Expense 0.1 0.1 Operating Income 2.0 (0.6) Operating Margin 3% -1% Adjusted Operating Income 2.1 (0.1) Ad
Slide 21: CVG Consolidated Balance Sheet
CVG Consolidated Balance Sheet Year End Year End (In millions) 2020 2019 Q4 2020 Highlights ASSETS Cash $ 50.5 $ 39.5 Liquidity $138.9 million Accounts receivable, net 151.1 115.1 Inventories Other assets 91.2 161.6 82.9 198.3 $10 million in debt pre- Total Assets 454.4 435.8 payments during 2020 LI
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q4 2020 Q4 2019 Operating Income/(Loss) $ 5.0 $ (4.3) Deferred Consideration Purchase Accounting 1.0 - Restructuring 1.6 3.0 Investigation 0.7 - Adjusted Operating Income/(Loss) 8.3 (1.3) % of Revenues 4% -1% Net Income (4.1) (7.5)
Slide 23: Reconciliation of GAAP to Non-GAAP Segment Information
Reconciliation of GAAP to Non-GAAP Segment Information For the Three Months December 31, 2020 Electrical Global Corporate Total (in millions) Systems Seating Operating Income/(Loss) $ 7.8 $ 2.0 $ (4.8) $ 5.0 Deferred Consideration Purchase Accounting 1.0 - - 1.0 Restructuring 1.5 0.1 0.1 1.6 Investi
Slide 24: 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 FY 2020 Cash Flow from Operations $ 10.3 $ 10.1 $ 10.4 $ 3.6 $ 34.4 Capital Expenditures (3.4) (1.0) (1.0) (1.0) (6.4) Free Cash Flow $ 6.9 $ 9.1 $ 9.4 $ 2.6 $ 28.0 Q4 2020 Earnings Presentation |
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP to NON-GAAP Financial Measures – Adjusted EBITDA (in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net income $ 10.0 $ 6.1 $ 7.2 $ (7.5) $ (24.6) $ (12.5) $ 4.2 $ (4.1) Interest 4.6 4.8 3.9 3.6 4.6 5.3 5.5 5.2 Provision / (Benefit) for Income Taxes
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to NON-GAAP Financial Measures – Diluted EPS Three Months Ended (in millions except for share information) December 31, 2020 December 31, 2019 Net Income/(Loss) $ (4.1) $ (7.5) Operating income (loss) adjustments 3.3 3.0 Non-cash pension expense - - Adjusted (benefit) provisio
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