Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q2 2024 Earnings Presentation
25 slides from Cooper-standard's earnings presentation, Aug 2, 2024
Slide 1: Creating Sustainable Solutions Together: Second Quarter 2024 Earnings Presentation
Creating Sustainable Solutions TOGETHER Second Quarter 2024 Earnings Presentation August 2, 2024
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 2024 Highlights
Q2 2024 Highlights Continuing Strong Operating Performance; Year-over-year Margin Improvement 97% 96% 0.29/31 World-class Quality World-class Service World-class Safety Green Customer Scorecards Green Launch Scorecards Total incident rate (Q2) / Plants with 0 Incidents (YTD) $16m +100bps $61m Manufa
Slide 6: Continued Recognition for Leadership in Sustainability
Continued Recognition for Leadership in Sustainability Committed to Being a Strong Environmental Champion and Ensuring Long-Term Health of the Business 6
Slide 7: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO 7
Slide 8: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Sales $ 708.4 $ 723.7 $ 1,384.8 $ 1,406.2 Gross Profit $ 82.9 $ 77.7 $ 144.6 $ 119.5 % Margin 11.7 % 10.7 % 10.4 % 8.5 % Adjusted EBITDA1 $ 50.9 $ 47.9 $ 80.3 $ 60.4 %
Slide 9: Q2 2024 Bridge Analysis
Q2 2024 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. Note: Totals may not add due to rounding 9
Slide 10: Q2 2024 YTD Bridge Analysis
Q2 2024 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. Note: Totals may not add due to rounding 10
Slide 11: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - June 30, 2024 (millions) (millions) Three Months Ended June 30, 2024 2023 ABL availability Net cash used in operating activities $ (12.0) $ (13.2) Capital expenditures (11.2) (17.5) Cash on hand Free cash flow $ (23.3) $ (30.7) Current Liquidity
Slide 12: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 12
Slide 13: Relentless Focus on Our Strategic Imperatives
Relentless Focus on Our Strategic Imperatives FINANCIAL WORLD-CLASS PROFITABLE GROWTH CORPORATE STRENGTH EXECUTION DRIVEN BY INNOVATION RESPONSIBILITY Execute our business plans Attain world-class results Leverage our materials science and Deliver value to all our stakeholders achieving and sustaini
Slide 14: Aggressive Lean Initiative to Further Optimize Costs
Aggressive Lean Initiative to Further Optimize Costs Implementation Completed Successfully in Q2 • Streamlined operations and engineering execution enabled by product-line structure ◦ Immediate reduction in salaried workforce ◦ Expected cost savings of $20 - $25 million in 2024 ◦ Full annualized cos
Slide 15: Innovating Next Generation Advanced Sealing Solutions
Innovating Next Generation Advanced Sealing Solutions Meeting Industry Needs and Enhancing Business Value Through Leading-edge Technology Elevated Styling Enhanced Performance Improved Sustainability FlushSeal Sealing System Digital Analysis Lightweighting Frameless Sealing System Virtual Validation
Slide 16: Innovative Fluid Handling Solutions for All Powertrains
Innovative Fluid Handling Solutions for All Powertrains Market-flexible Portfolio Supports All Scenarios for Hybrid and EV Adoption Accelerated Adoption Growth & Portfolio & & Proliferation Vertical Integration CPV Expansion Core Evolutionary Transformational PlastiCool® Multi Layer Tube Coolant Hub
Slide 17: Powertrain Evolution Generating Increased CPV Opportunities
Powertrain Evolution Generating Increased CPV Opportunities Innovative Solutions Address Increasingly Complex Thermal Management Requirements Comparative Fluids CPV* + 80% +20% *Based on 2024 actual programs, weighted average for North America, Europe and China. Includes all current fluids products.
Slide 18: 2024 Outlook: Further Margin Expansion; Moderating Growth
2024 Outlook: Further Margin Expansion; Moderating Growth FY 2024 Updated 2023 Actuals Guidance1 Adjusted EBITDA2 Guidance Bridge Analysis (Estimates Based on Mid-point of Provided Range) Sales $2.82 billion $2.7 - $2.8 billion Adj. EBITDA2 $167.1 million $180 - $200 million Capital Expenditures $80
Slide 19: Cooper Standard
G CooperStandard 19
Slide 20: Appendix
G CooperStandard 20
Slide 21: 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 22: 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, 2024 2023 2024 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (76,243) $ (27,829) $ (107,903) $ (158,196) Income tax expense 8,080 4,765 12,211 5,12
Slide 23: 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, 2024 2023 2024 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (76,243) $ (27,829) $ (107,903) $ (158,196) Restructuring
Slide 24: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended June 30, 2024 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q3 2023 Q4 2023 Q1 2024 Q2 2024 June 30, 2024 Net income (loss) attributable to Cooper-Standard Holdings Inc. $ 11,363 $ (55,152) $ (31,660) $ (76,243) $ (151,692)
Slide 25: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net cash (used in) provided by operating activities $ (12,013) $ (13,229) $ (26,212) $ 17,150 Capital expenditures (11,243) (17,497) (28,077) (46,760) Free cash flow $ (2
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