Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2015 Earnings Presentation
23 slides from Cooper-standard's earnings presentation, Jul 31, 2015
Slide 1: Second Quarter 2015 Conference Call and Webcast
1 Second Quarter 2015 Conference Call and Webcast July 31, 2015
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements There are a number of risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements contained in this presentation. Important factors that could cause the Company's actual results to differ materially fro
Slide 3: Business Highlights Second Quarter 2015
3 Business Highlights Second Quarter 2015 Jeff Edwards Chairman and CEO
Slide 4: Continued Margin Expansion
4 4 Continued Margin Expansion • Consolidated adjusted EBITDA margin(1) of 11.3 percent – best in 3 years • Focus on establishing and maintaining “World-Class” operations via the Cooper Standard Operating System (CSOS) • CSOS initiatives are driving the desired results in all key regions Region Quar
Slide 5: Manufacturing Quality Improvement
5 5 Manufacturing Quality Improvement CSOS Initiatives Drive Operating Improvement Overall Equipment Effectiveness Safety Improvement 2014 2015 (YTD) 34% 2014 2015 (YTD) +200 bps 2014 2015 (YTD) 58%
Slide 6: Optimizing Global Footprint
6 6 Optimizing Global Footprint • European Improvement Initiatives progressing as planned • Added two new production facilities in China • New sales and engineering office in Tokyo, Japan • Finalized Polyrub Cooper Standard FTS JV in India • Expansion of Atlacomulco, MX manufacturing facility
Slide 7: Revenue Outpacing Industry Growth
7 7 Revenue Outpacing Industry Growth • Revenue increased by 10.3% on an FX neutral basis • FX impact of $85.3 million • Significantly outpaced light vehicle production growth 857.6 860.8 946.1 2Q 2014 2Q 2015 Revenue as Reported Rev. ex FX Impact + 10.3% Revenue Highlights (USD millions)
Slide 8: 2Q 2014 vs 2Q 2015 Revenue Bridge
8 8 2Q 2014 vs 2Q 2015 Revenue Bridge Favorable Volume and Mix Offset by FX Impact (USD millions) +5% +5% $857.6 $860.8 $946.1 -10%
Slide 9: Revenue by Region
9 9 Revenue by Region Asia Pacific Revenue Growth Accelerating Growth in Asia North America 53% Europe 31% South America 3% $58 $112 2Q 2014 2Q 2015 (USD millions) +92% Asia Pacific 13%
Slide 10: Financial Review Second Quarter 2015
10 Financial Review Second Quarter 2015 Matt Hardt EVP and CFO
Slide 11: 2Q 2015 Financial Results
11 11 2Q 2015 Financial Results Second Quarter 2014 2015 Sales $857.6 $860.8 Gross Profit 146.1 154.0 % Margin 17.0% 17.9% SGA&E 81.9 84.1 % Margin 9.5% 9.8% Operating Profit 56.5 58.8 % Margin 6.6% 6.8% Other Income/(expense) (28.6) 2.1 Adjusted EBITDA(1) $91.8 $97.0 % Margin 10.7% 11.3% Net Income
Slide 12: Adjusted EBITDA Bridge
12 12 Adjusted EBITDA(1) Bridge $60 $85 $110 $135 (USD millions) +22% +17% -9% -11% -4% $91.8 $97.0 -11% (1) Adjusted EBITDA is a non-GAAP measure. See appendix.
Slide 13: 2Q 2015 Balance Sheet and Liquidity
13 13 2Q 2015 Balance Sheet and Liquidity Note: In USD millions except ratios. Numbers subject to rounding Liquidity Cash Balance as of March 31, 2015 $ 194.4 Cash generated 10.4 Cash Balance as of June 30, 2015 $ 204.8 ABL Revolver 180.0 Letters of Credit (33.1) Total Liquidity $ 351.7 Key Financia
Slide 14: Cash Flow Improvement
14 14 Cash Flow Improvement Expected improvements to 2015 plan: • Capital Expenditures $20-25M • Working Capital $20-30M • Restructuring $5-10M
Slide 15: Company Outlook
15 Company Outlook Jeff Edwards Chairman and CEO
Slide 16: Driving for Profitable Growth in 2015
16 16 Driving for Profitable Growth in 2015 • Driving cash flow improvements • Capturing margin improvement through CSOS • Marketing innovations • Managing headwinds • Pursuing strategic acquisitions
Slide 17: 2015 Guidance
17 17 2015 Guidance Previous Guidance May 7, 2015 Current Guidance July 30, 2015 Revenue $3.3 - $3.4 billion Unchanged Capital Expenditure $185 - $200 million $175 - $185 million Cash Restructuring $30 - $40 million $25 - $35 million Cash Tax $45 - $55 million $40 - $50 million Adj. EBITDA Margin 50
Slide 18: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 19: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 20: Non-GAAP Financial Measures
20 20 Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin and adjusted net income are measures not recognized under Generally Accepted Accounting Principles in the United States (U.S. GAAP) which exclude certain non-cash and non-recurring items. Management considers EBITDA an
Slide 21: Adjusted EBITDA Reconciliation
21 21 2014 2015 2014 2015 13.2$ 36.5$ 32.9$ 57.5$ 4.4 16.4 16.5 31.2 10.9 9.3 25.9 18.4 28.5 29.4 56.8 56.0 57.0$ 91.6$ 132.1$ 163.1$ Gain on acquisition (1) - (2.6) - (14.2) Loss on extinguishment of debt (2) 30.3 - 30.5 - 3.8 7.4 6.7 26.2 - - - 1.4 0.7 - 2.8 - Acquisition costs - 0.4 - 1.0 - 0.2 0
Slide 22: Adjusted EBITDA Margin Twelve Months Ended June 30, 2015
22 22 Note: Numbers subject to rounding Adj. EBITDA Margin Twelve Months Ended June 30, 2015 (1) Includes non-cash restructuring and is net of noncontrolling interest. (2) Impairment charges related to fixed assets of $24.6 million and intangible assets of $1.7 million. (3) Gain on sale of thermal a
Slide 23: Net Income and Adjusted Net Income Reconciliation
23 23 Net Income and Adjusted Net Income Reconciliation (Dollar amounts in thousands except per share amounts) 2014 2015 Net income attributable to Cooper-Standard Holdings Inc. 13,194$ 36,496$ Restructuring expense (net of tax) 3,726 6,968 Loss on extinguishment of debt (net of tax) 18,779 - Gain o
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