Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti Small-Cap Virtual Conference June 2024
23 slides from Commercial Vehicle's conference presentation, Jun 13, 2024
Slide 1: Sidoti Small-Cap Virtual Conference
Sidoti Small-Cap Virtual Conference James Ray – President and Chief Executive Officer June 13, 2024 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 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: CVG Key Investment Highlights
CVG Key Investment Highlights ➢ Experienced Tier 1 provider of customized electrical systems, commercial vehicle seating, and plastics & trim solutions to the global OEM commercial vehicle markets and aftermarket channels ➢ Executing on a transformation strategy to drive customer and product diversi
Slide 4: CVG – Overview
CVG –Overview Commercial Vehicle Group GLOBAL TIER 1 SUPPLIER OVERVIEW Electrical • 2023 Revenue: $995M Vehicle Systems, Solutions, 23% 59% • 2023 FY Adj. OI $51M • 2023 FY Adj. EBITDA 6.8% 2023 • Market Cap : ~$190M Revenue $995M • Included in Russell 2000 • ~8,200 Employees Aftermarket, 14% • Foun
Slide 5: Key CVG Markets Update
Key CVG Markets Update CVG Revenue By End Market* Vehicle Solutions - NA Class 8 Heavy Truck Build ACT Research is forecasting a weaker 2024 followed by strong growth 363 340 315 318 +14% 301 -12% +6% Heavy Truck Construction/Ag 2022 2023 2024F 2025F 2026F 35 - 40% 20 – 25% Source: ACT Research Cons
Slide 6: Positioning CVG for the Future
Positioning CVG for the Future Make Electrical Systems our largest business • Continue to win accretive new business, increase volumes and diversify our product portfolio • Increase the design and engineering value in our products • Strategically add new plant locations which provide cost competitiv
Slide 7: Key Focus Areas for 2024
Key Focus Areas for 2024 Electrical Systems Growth Resiliency • Continuing new business wins in this segment in 2024 • Increasing end-market diversification • Continuous business improvement addressing challenging cost environment Ramp Up New Plants • Electrical Systems plants ramping as scheduled i
Slide 8: Modular UNITY Seat Expansion
Modular UNITY Seat Expansion • Recent wins across the globe with Unity o Standardization of core seat design across regions and markets o Truck market wins in N.A. and Europe and APAC o Construction market wins in APAC and N.A. • Market driven features improving customer satisfaction o Powered seat
Slide 9: Industrial Automation
Industrial Automation • Retained an investment banking firm to explore alternatives for the Industrial Automation Business • Pivoting from contract manufacturing to engineered solutions • Substantial interest was generated with the new product launch of STACC at MODEX show in March 2024 • Exploring
Slide 10: Focus on Execution and Operational Excellence
Focus on Execution and Operational Excellence Organizational Efficiency Improvements • Restructuring actions to reduce cost and align resources to support growth product lines • Continued investment in new, low-cost facilities to support new business wins • Capacity consolidation to maximize ROIC Op
Slide 11: Creating a Large, Stronger, More Profitable Company
Creating a Large, Stronger, More Profitable Company Acceleration of CVG’s profitable growth strategy • Transforming revenue mix organically via new customers and vehicle platforms, focusing on goal of making Electrical Systems our largest segment • Improve cost structure through process automation a
Slide 12: Financial Review
Financial Review 12
Slide 13: Full Year 2023 Results
Full Year 2023 Results CONSOLIDATED RESULTS Commentary Twelve Months GAAP Measures Ended Dec 31 • Record revenue in 2023, driven by continued price 2023 2022 ($ in millions except for share information) realization and contribution of new business wins; fourth Revenue $ 994.7 $ 981.6 quarter negativ
Slide 14: Segment Financial Summary – 2020-2023
Segment Financial Summary – 2020-2023 All values are in millions of dollars Revenue Adjusted Operating Income 600 50 40 400 30 20 200 10 0 0 2020 2021 2022 2023 2020 2021 2022 2023 Vehicle Solutions Electrical Systems Aftermarket Industrial Automation Vehicle Solutions Electrical Systems Aftermarket
Slide 15: Fiscal 2024 Outlook
Fiscal 2024 Outlook ACT North American Class 8 Build Forecast (000s) FY24 CVG Outlook ($mm) 340 Metric 2023 Actual 2024 Outlook 315 Net Sales 995 915 – 1,015 301 Adjusted EBITDA 68 60 - 73 2022 2023 2024F • YoY Class 8 truck build decline of ~12% lower than previously forecast, offset by weaker cons
Slide 16: Questions
Questions 16
Slide 17: Appendix
Appendix 17
Slide 18: Non-GAAP financial measures notice
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 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) FY 2023 FY 2022 Operating Income/(Loss) 48.1 20.1 Restructuring 2.3 5.4 HW Inventory adjustment - 10.4 Deferred consideration purchase accounting - 0.3 Executive transition 0.8 0.3 Adjusted Operating Income 51.1 36.6 % of Revenues 5
Slide 20: 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) FY 2023 FY 2022 Net income/(Loss) 49.4 (22.0) Operating income (loss) adjustments 3.1 16.5 Other adjustment on FX - (0.0) Loss on early extinguishment of debt - 0.9 Pension settlement - 9.2
Slide 21: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) FY 2023 FY 2022 Cash Flow from Operations $ 38.3 $ 68.9 Capital Expenditures2 (19.7) (19.7) Free Cash Flow 18.6 49.2 2 Net of proceeds from disposal/sale of property, plant, and equipment 21
Slide 22: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Twelve Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 42.0 26.3 19.0 (1.4) (37.9) 48.1 Restructuring 0.8 0.0 - 0.5 1.0 2.3 Executive transition - - - 0.8 0.8 A
Slide 23: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Twelve Months Ended Dec 31, 2021 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 23.6 14.6 12.1 23.6 (24.3) 49.6 Deferred consideration purchase accounting - - - 0.6 - 0.6 Executive Tran
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