Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2023 Earnings Presentation
22 slides from Cooper-standard's earnings presentation, Aug 4, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Creating Sustainable Solutions TOGETHER Second Quarter 2023 Earnings Presentation August 4, 2023
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations Second Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer Financial Overview Jon Banas | Executive VP and Chief Financial Officer Strategic Overview and Outlook Jeff Edwards Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,” “expect,” “anticipate,” “project,” “pl
Slide 4: Second Quarter Summary
Second Quarter Summary Jeff Edwards, Chairman and CEO 4
Slide 5: Q2 2023 Highlights
Q2 2023 Highlights Continuing Strong Operating Performance and New Business Awards 98% 98% 37 World-class Quality World-class Service World-class Safety Green Customer Scorecards Green Launch Scorecards Plants with 0 Incidents (YTD) $16m 108 bps $85m Manufacturing/Purchasing Year-over-year Improveme
Slide 6: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO
Slide 7: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Sales $ 723.7 $ 605.9 $ 1,406.2 $ 1,218.9 Gross Profit $ 77.7 $ 15.4 $ 119.5 $ 36.9 % Margin 10.7 % 2.5 % 8.5 % 3.0 % Adjusted EBITDA1 $ 47.9 $ (10.4) $ 60.4 $ (10.2)
Slide 8: Q2 2023 Bridge Analysis
Q2 2023 Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 2 1 See Appendix for definitions and reconciliation to U.S. GAAP 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding 8
Slide 9: Q2 2023 YTD Bridge Analysis
Q2 2023 YTD Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 1 See Appendix for definitions and reconciliation to U.S. GAAP 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding 9
Slide 10: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - June 30, 2023 (millions) (millions) Three Months Ended June 30, 2023 2022 Net cash (used in) provided by operating activities $ (13.2) $ 12.0 ABL availability Capital expenditures (17.5) (12.0) Cash on hand Free cash flow $ (30.7) $ 0.0 Current
Slide 11: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO
Slide 12: Strong Customer Relationships Continue to Support Enhanced Commercial Agreements
Strong Customer Relationships Continue to Support Enhanced Commercial Agreements • Established and expanded index-based agreements that limit exposure to material cost fluctuations • Closure of several customer negotiations addressing non-material cost inflation and sustainable pricing. Negotiations
Slide 13: Continuing Implementation of Our Strategic Profitability Initiatives
Continuing Implementation of Our Strategic Profitability Initiatives Fixed cost reductions Operational Ongoing evaluation of Continued commitment over past two years are improvements supporting opportunities to optimize to fix or exit financially providing benefit margin expansion operating footprin
Slide 14: Fortrex: Improving Sustainability, Performance and Cost
Fortrex™: Improving Sustainability, Performance and Cost Automotive Applications • MicroDense Fortrex® now available for sealing applications – Lower density (0.65sg) – ~26% weight reduction – Advantaged carbon footprint • Optimized Fortrex® manufacturing process (Fortrex® 2.0) to be implemented in
Slide 15: Outlook: Expect Continuing Improvement in 2H 2023; Reaffirm Full-year Guidance
Outlook: Expect Continuing Improvement in 2H 2023; Reaffirm Full-year Guidance1 2023 Initial Guidance 2023 Current Guidance Key Performance Drivers and Assumptions: Sales $2.6 - $2.8 billion $2.6 - $2.8 billion • Continued modest increases in global light vehicle production volume Adj. EBITDA2 $150
Slide 16: G CooperStandard
G CooperStandard
Slide 17: Appendix
G CooperStandard
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating perfor
Slide 19: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (Unaudited, dollar amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (27,829) $ (33,247) $ (158,196) $ (94,607) Income tax expense 4,765 2,005 5,123 2,657
Slide 20: Adjusted Net Loss and Adjusted EPS
Adjusted Net Loss and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (27,829) $ (33,247) $ (158,196) $ (94,607) Restructuring c
Slide 21: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended June 30, 2023 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q3 2022 Q4 2022 Q1 2023 Q2 2023 June 30, 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (32,686) $ (88,091) $ (130,367) $ (27,829) $ (278,973) Income
Slide 22: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net cash (used in) provided by operating activities $ (13,229) $ 11,978 $ 17,150 $ (235) Capital expenditures (17,497) (11,964) (46,760) (44,278) Free cash flow $ (30,726
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