Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q1 2020 Earnings Presentation
16 slides from Commercial Vehicle's earnings presentation, May 18, 2020
Slide 1: Exhibit 99.2
EXHIBIT 99.2
Slide 2: Q1 2020 Earnings Conference Call
Q1 2020 EARNINGS CONFERENCE CALL May 18, 2020 Harold Bevis President & CEO Tim Trenary CFO & Treasurer Kirk Feiler VP Finance & Investor Relations
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation 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”, “continue”, “likely”, and sim
Slide 4: Q1 2020 Snapshot and Business Update
Q1 2020 SNAPSHOT AND BUSINESS UPDATE ► Business performed as expected prior to onset of pandemic ► Revenue of $187.1 million, compared to $243.2 million in 1Q 2019 • Cyclical decline in North American medium- and heavy-duty truck and global construction • FSE contributed $13 million in Q1 2020, stre
Slide 5: COVID-19 Response
COVID-19 RESPONSE Working Towards Health & Safety Cost Reductions Recovery ► Remote working ► Compensation reductions ► Working closely with customers to restart ► Facility closures ► Furloughs/ reductions in force ► Preserving our capabilities ► Social distancing to grow the business requirements i
Slide 6: FSE Is Growing
FSE IS GROWING ► Quarterly revenue grew 30% sequentially ► Surge in demand from industrial customers driven by increasing importance of e-commerce, and military ► Expanding production from one plant to three, using CVG facilities ► Healthy order book in FSE’s core business ► FSE enhancing CVG sales
Slide 7: Remain Committed to Strategy
REMAIN COMMITTED TO STRATEGY ► Optimize performance of core business ► Capitalize on growth opportunities for parts of the business not as severely impacted by COVID-19 ► Organic growth initiatives targeted at electric vehicles, last mile delivery, non-commercial vehicles ► Grow and expand material
Slide 8: Finance Update
FINANCE UPDATE COMMERCIAL VEHICLE GROUP, INC. 8
Slide 9: Consolidated Financial Update
CONSOLIDATED FINANCIAL UPDATE $ in millions except per share data Q1 2020 Q1 2019 $ Change Q1 2020 Notes Revenue 187.1 243.2 (56.1) • Q1 results in line with Gross Profit 20.3 33.1 (12.8) expectations Gross Margin 10.9% 13.6% • Sharp declines in end markets compared to high SGA 17.1 15.2 1.9 product
Slide 10: Electrical Systems Segment Results
ELECTRICAL SYSTEMS SEGMENT RESULTS $ in millions Q1 2020 Q1 2019 $ Change Revenue 112.1 143.6 (31.5) Q1 2020 Notes Gross Profit 10.9 19.3 (8.4) • Revenue down 22% compared to prior year high Gross Margin 9.7% 13.5% production SGA 4.0 4.1 (0.1) • FSE contributed $13 million Amortization 0.7 0.2 0.5 o
Slide 11: Global Seating Segment Results
GLOBAL SEATING SEGMENT RESULTS $ in millions Q1 2020 Q1 2019 $ Change Revenue 76.0 104.1 (28.1) Q1 2020 Notes Gross Profit 9.4 13.8 (4.4) • Revenue down 27% compared to high production Gross Margin 12.3% 13.2% in prior year SGA 4.8 5.3 0.5 • Significant operational Amortization 0.1 0.1 - improvement
Slide 12: Balance Sheet
BALANCE SHEET $ in millions Q1 2020 Q1 2019 $ Change Cash 58.1 39.5 18.6 Accounts Receivable 123.3 115.1 8.2 Q1 2020 Notes Inventories 84.5 82.9 1.6 • Liquidity at March 31, 2020 Other Assets 165.3 198.3 (33.0) was $114 million; $58 million of cash and $56 million of Total Assets 431.2 435.8 (4.6) a
Slide 13: Appendix
APPENDIX COMMERCIAL VEHICLE GROUP, INC. 13
Slide 14: 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 15: Reconciliation of GAAP to Non-GAAP – Adjusted Operating Income
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES – ADJUSTED OPERATING INCOME For the Three Months Ended March 31, 2020 Electrical Global $ Millions Systems Seating Corporate Total Operating Loss $ (17.1) $ (0.4) $ (9.0) $ (26.5) CEO Transition 2.3 2.3 Restructuring 0.1 0.0 0.2 Investigation 2.4
Slide 16: Reconciliation of GAAP to Non-GAAP – Adjusted EBITDA
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES – ADJUSTED EBITDA $ Millions For the three months ended Trailing twelve months ended March 31, June 30, September December March 31, March 31, March 31, 2019 2019 30, 2019 31, 2019 2020 2020 2019 Net Income 10.0 6.1 7.2 (7.5) (24.6) (18.8) 42.0 I
Commercial Vehicle Group — Q1 2020 Earnings Presentation on 6ix