Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Investor Presentation (August 2018)
17 slides from Commercial Vehicle's investor presentation, Aug 29, 2018
Slide 1: Commercial Vehicle Group, Inc. August 2018
Patrick Miller President & CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor COMMERCIAL VEHICLE GROUP, INC. Relations AUGUST 2018
Slide 2: 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", "expect", "anticipate", "intend", "plan", "estimate", or similar expressions. In particular, this presentation may con
Slide 3: Company Overview
Company Overview • NASDAQ: CVGI • Global Presence : 24 Facilities / 10 Countries • Employees: 8,900 (FYE 2017) • LTM Sales: $836 M* • LTM Operating Income: $56 M* • Shares Outstanding: 31 M* • Market Cap: $310 M** * As of 6/30/18 ** As of 8/27/18 CVG is a leading supplier of a full range of cab rela
Slide 4: Products
Products 20% 25% 42% Wire Harnesses & Interior Trim Controls 6% Seats & Seating 7% Systems Wiper Systems, Mirrors & Controls Cabs and Sleeper Boxes Page | 4 COMMERCIAL VEHICLE GROUP, INC.
Slide 5: 2017 Sales - $755 Million
2017 Sales - $755 Million Region Product End Market Customer Page | 5 COMMERCIAL VEHICLE GROUP, INC.
Slide 6: End Market Outlook
End Market Outlook North American Truck Market Global Construction Equipment Market • Forecasting services show strong 2018 . Construction continues to be supported by Class 8 build and peak build in 2019 consumer spending and global economies . Low machine inventories and high rental • Heavy-duty J
Slide 7: Improvements in Progress
Improvements in Progress CVG Digital . Wire harness virtual assembly boards in production . Automated electronic production data tracking . Pilot implementation of new cloud based ERP complete . Expect efficiency and quality improvements; reduction of working capital Process investments . Expand
Slide 8: Targets for Growth
Targets for Growth Wire harness and Electrical systems • Wire assembly global market estimated to grow at 6.5% CAGR through 2023* • Expanding capacity in Wire harness assembly • Adjacent market penetration in truck powertrain, power generation, and industrial • Trend for increased electronics in veh
Slide 9: Summary
Summary • Improving margins • Process investments and cost discipline • Product design and development • Integrated customer relationships • Growth opportunities • 2019 market outlook is positive Page | 9 COMMERCIAL VEHICLE GROUP, INC.
Slide 10: Finance Update
Finance Update COMMERCIAL VEHICLE GROUP, INC.
Slide 11: Financial Results
Financial Results Three Months Ended (Dollars in millions) June 30, 2018 2017 Sales $ 233.4 $ 195.1 • Sales up 20% Gross Profit $ 35.9 $ 22.7 Margin 15.4% 11.6% SG&A $ 14.4 $ 14.8 • Cost discipline in rising sales environment Operating Income $ 21.1 $ 7.6 Margin 9.1% 3.9% • Almost three-fold improve
Slide 12: Historical Performance
18 Month Historical Performance • Strong end-market performance • Revenues up 35% from 1Q 2017 • Favorable impact from actions taken • Restructuring • Cost control • Cost recovery initiatives • Good pull-through on sales • 2Q 2018 ̶ Highest OIM since 2006 Page | 12 COMMERCIAL VEHICLE GROUP, INC.
Slide 13: Business Segments
Business Segments Global Truck & Bus Three Months Ended (Dollars in millions) June 30, 2018 2017 Sales $ 148.7 $ 119.9 Gross Profit $ 23.2 $ 17.1 Margin 15.6% 14.2% SG&A $ 5.7 $ 5.7 Operating Income $ 17.2 $ 11.1 • Sales up on higher volumes Margin 11.6% 9.2% • Cost discipline in rising sales Global
Slide 14: Capital Structure
Capital Structure LTM (Dollars in millions) Q2 2018 Term Loan Principal Balance $ 171 Debt $ 171 Interest Rate LIBOR + 600 Less: Cash 45 Maturity April 2023 Net Debt $ 126 Interest Rate Swap $ 80 EBITDA $ 72 Interest Rate 8.07% Maturity April 2022 Gross Leverage 2.4 x Net Leverage 1.8 x Asset Based
Slide 15: Patrick Miller, Tim Trenary, Terry Hammett
Patrick Miller President & CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor COMMERCIAL VEHICLE GROUP, INC. Relations AUGUST 2018
Slide 16: Appendix GAAP to NON-GAAP Reconciliation
Appendix GAAP to NON-GAAP Reconciliation COMMERCIAL VEHICLE GROUP, INC.
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation EBITDA Reconciliation LTM (Dollars in millions) Q2 2018 Net Income $ 20.6 Interest Expense 12.7 Tax Provision 23.5 Depreciation 14.0 Amortization 1.3 EBITDA $ 72.1 Page | 17 COMMERCIAL VEHICLE GROUP, INC.
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