Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2014 Earnings Presentation
22 slides from Cooper-standard's earnings presentation, Aug 1, 2014
Slide 1: Drive for Profitable Growth: Second Quarter Earnings Call
1 DRIVE FOR PROFITABLE GROWTH Second Quarter Earnings Call August 1, 2014
Slide 2: Forward-Looking Statements
2 2 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. We make forward-looking statements in this presentation and may
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
3 Jeff Edwards Chairman and Chief Executive Officer
Slide 4: Achieving Profitable Growth
4 4 Achieving Profitable Growth • Return to double digit adjusted EBITDA margin financial performance – Sales up 9.3% from prior year quarter exceeding 2.2% industry growth – Adjusted EBITDA margin of 10.7%, up from prior year quarter of 10.5%, first quarter of 9.6% and fourth quarter of 7.4% • Sale
Slide 5: Achieving Profitable Growth: Regional Update and Industry Outlook
5 5 Achieving Profitable Growth Asia Pacific • Actively evaluating growth opportunities •Opened Asia Pacific Tech Center / Headquarters Europe •Improving margins / market share gains •Optimizing footprint North America •Returned to normalized operating margins • Significant launch activity across mu
Slide 6: Solidified Core Product Lines to Improve ROIC
6 6 • Global product group focus: – Sealing and Trim Systems – Fuel and Brake Delivery Systems – Fluid Transfer Systems – Anti-Vibration Systems • Innovation developments creating additional value across all product lines Solidified Core Product Lines to Improve ROIC
Slide 7: Delivering Best Business Practices
7 7 Delivering Best Business Practices • Drive for improvements in ROIC by: – Identifying best-in-class performance – Capturing key processes and technologies – Improving consistency – Accelerating continuous improvement
Slide 8: Allen Campbell, Executive Vice President and Chief Financial Officer
8 Allen Campbell Executive Vice President and Chief Financial Officer
Slide 9: Q2 and Year-to-Date 2014 Revenue
9 Passion for Performance Q2 and Year-to-Date 2014 Revenue Note: Numbers subject to rounding Q2 2013 - $785 Q2 2014 - $858 YTD 2013 - $1,532 YTD 2014 - $1,695 $ USD Millions Second Quarter Year-to-Date $0 $100 $200 $300 $400 $500 North America Europe Asia Pacific South America $400 $284 $51 $50 $452
Slide 10: Q2 and Year-to-Date 2014 Performance
10 Passion for Performance Q2 and Year-to-Date 2014 Performance $ USD Millions, except EPS / % Note: Numbers subject to rounding Second Quarter Year-to-Date 2013 2014 2013 2014 $784.7 $857.6 Sales $1,532.3 $1,695.2 132.3 146.1 Gross Profit 252.6 280.4 16.9% 17.0% % Margin 16.5% 16.5% 72.7 81.9 SGA 1
Slide 11: Normalized Adjusted EBITDA Margin Trend
11 11 Normalized Adjusted EBITDA Margin Trend EBITDA and Adjusted EBITDA are Non-GAAP measures. See appendix. $76.7 $82.5 $69.5 $58.7 $80.6 $91.8 10.3% 10.5% 9.1% 7.4% 9.6% 10.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $0 $20 $40 $60 $80 $100 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Adjusted EBI
Slide 12: EBITDA and Adjusted EBITDA Reconciliation
12 Passion for Performance EBITDA and Adjusted EBITDA Reconciliation $ USD Millions 2014 Net income Income tax expense EBITDA Restructuring, net of noncontrolling interest Adjusted EBITDA Six Months Ended June 30, Net interest expense Depreciation and amortization EBITDA and Adjusted EBITDA are Non-
Slide 13: YTD 2014 Cash Flow and Key Financial Ratios
13 13 YTD 2014 Cash Flow and Key Financial Ratios Note: Numbers subject to rounding $ USD Millions Liquidity Cash Balance as of December 31, 2013 $ 184.4 Cash generated 23.0 Cash Balance as of June 30, 2014 $ 207.4 ABL Revolver 180.0 Letters of Credit (35.6) Total Liquidity $ 351.8 $184.4 $131.0 $76
Slide 14: 2014 Guidance
14 14 2014 Guidance Key Assumptions: North American production 17.0 million European (including Russia) production 19.9 million Average full year exchange rate 1 EUR = $1.37 USD 1 CAD = $0.92 USD *G=Guidance Return to full year double-digit Adjusted EBITDA margin Cash Balance as of March 31, 2012 29
Slide 15: Creating Shareholder Value
15 15 Creating Shareholder Value • Developed core product strategies to drive ROIC improvement • Delivering best business practices to achieve world-class operations • Investing and partnering in Asia Pacific to accelerate our growth • “Building Great Place to Work” through developing, attracting an
Slide 16: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 17: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 18: EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2014
18 18 Note: Numbers subject to rounding (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reorg
Slide 19: Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2014
19 19 Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2014 Note: Numbers subject to rounding ($ USD Millions) (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non
Slide 20: EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2013
20 20 Note: Numbers subject to rounding (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reorga
Slide 21: Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2013
21 21 Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2013 (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at tim
Slide 22: Non-GAAP Financial Measures
22 22 Non-GAAP Financial Measures EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. Management considers EBITDA and adjusted EBITDA as key indicators of the Company's operating performa
Cooper-Standard Holdings — Q2 2014 Earnings Presentation on 6ix