Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti Small-Cap Virtual Conference March 2024
23 slides from Commercial Vehicle's conference presentation, Mar 14, 2024
Slide 1: Sidoti Small-Cap Virtual Conference
Sidoti Small-Cap Virtual Conference James Ray – President and Chief Executive Officer March 13-14, 2024 Andy Cheung – Executive Vice President & Chief Financial Officer
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “ta
Slide 3: Introduction
INTRODUCTION James Ray President & CEO 3
Slide 4: CVG – Overview
CVG –Overview Commercial Vehicle Group GLOBAL TIER 1 SUPPLIER OVERVIEW Electrical • 2023 Revenue: $995M Vehicle Systems, Solutions, 23% 59% • 2023 FY Adj. OI $51M • 2023 FY Adj. EBITDA 6.8% 2023 • Market Cap : ~$225M Revenue $995M • Included in Russell 2000 • ~8,200 Employees Aftermarket, 14% • Foun
Slide 5: Key CVG Markets Update
Key CVG Markets Update CVG Revenue By End Market Vehicle Solutions - NA Class 8 Heavy Truck Build ACT Research is forecasting a weaker 2024 followed by strong growth 340 363 315 307 285 Wire Harness/Other Transporation 2022 2023 2024F 2025F 2026F Heavy Truck 35% 20% NA Medium Duty Truck Build Earth
Slide 6: Strategically Repositioning the Business
Strategically Repositioning the Business Make Electrical Systems our largest business • Continue to win accretive new business, increase volumes and diversify our product portfolio • Increase the design and engineering value in our products • Strategically add new plant locations which provide cost
Slide 7: Recent Strategic Actions
Recent Strategic Actions North American Footprint Optimization • Actions taken to optimize footprint • Closing one facility and shifting production to other locations • Rationalizing higher-cost capacity to expand margins Cost Reduction Efforts • Reducing organizational costs and aligning resources
Slide 8: Key Focus Areas for 2024
Key Focus Areas for 2024 Growth in Electrical Systems • Continuing new business wins in this segment in 2024 • Electrical Systems wins reduce cyclicality and increase end-market diversification • Goal is to make this our largest business Ramp Up New Plants • Electrical Systems plants ramping as sche
Slide 9: Creating a Bigger, Better, More Profitable Company
Creating a Bigger, Better, More Profitable Company Acceleration of CVG’s profitable growth strategy • Transforming revenue mix organically via new customers and vehicle platforms • Transforming cost structure through process automation and low- cost production capabilities • Delivering best in class
Slide 10: Financial Review
Financial Review 10
Slide 11: Q4 & Full Year 2023 Highlights
Q4 & Full Year 2023 Highlights 2023 HIGHLIGHTS Q4 FINANCIAL HIGHLIGHTS IMPROVED PROFITABILITY NEW BUSINESS WINS Adjusted EBITDA Up >$150 MILLION 26% REVENUE ADJUSTED EBITDA Adjusted $223 $10.3 EBITDA margin • 2023 program wins, peak annual value when fully ramped, majority MILLION MILLION Up 140 bps
Slide 12: Fourth Quarter & Full Year 2023 Results
Fourth Quarter & Full Year 2023 Results CONSOLIDATED RESULTS Highlights Three Months Twelve Months GAAP Measures Ended Dec 31 Ended Dec 31 ($ in millions except for share • Record revenue in 2023, driven by continued price 2023 2022 2023 2022 information) realization and contribution of new business
Slide 13: Financial Summary – Full Year 2023
Financial Summary – Full Year 2023 In millions Vehicle Solutions Electrical Systems +1% 587.1 42.8 579.7 +96% +39% 26.3 +27% 228.4 18.9 180.4 21.8 Revenue Adj. Operating Income Revenue Adj. Operating Income FY22 FY23 FY22 FY23 FY22 FY23 YTD 2022 YTD 2023 Aftermarket & Accessories Industrial Automati
Slide 14: Fiscal 2024 Outlook
Fiscal 2024 Outlook ACT North American Class 8 Build Forecast (000s) FY24 CVG Outlook ($mm) 340 Metric 2023 Actual 2024 Outlook 315 Net Sales 995 915 – 1,015 285 Adjusted EBITDA 68 60 - 73 2022 2023 2024F • Expect to benefit from growth in Electrical Systems, partially offsetting the projected 16% d
Slide 15: Questions
Questions 15
Slide 16: Appendix
Appendix 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporat
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Operating Income/(Loss) 5.0 (4.0) 48.1 20.1 Restructuring 0.8 2.0 2.3 5.4 HW Inventory adjustment - 10.4 - 10.4 Deferred consideration purchase accounting - - - 0.3 Executive transition 0.8 - 0.8 0.3
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP Reconciliation of GAAP to Non-GAAP to Non-GAAP Financial Financial MeasuresMeasures – Adjusted EBITDA (in millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2022 2023 2023 2023 2023 Net income/(Loss) 4.0 2.5 3.6 (32.0) 8.7 10.1 7.3 23.3 Interest 2.0 2.1 2.8 2.9 2.9 2.8 2.6 2.4 P
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q4 2023 Q4 2022 FY 2023 FY 2022 Net income/(Loss) 23.3 (32.0) 49.4 (22.0) Operating income (loss) adjustments 1.6 12.4 3.1 16.5 Other adjustment on FX - (0.1) - (0.0) Loss on early extingui
Slide 21: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 3.6 6.7 3.4 0.9 (9.6) 5.0 Restructuring 0.4 - - (0.6) 1.0 0.8 Executive Transition - 0.8 0.8 Adjusted Oper
Slide 22: Segment GAAP to Non GAAP
Segment GAAP to Non GAAP QTD For the Twelve Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 42.0 26.3 19.0 (1.4) (37.9) 48.1 Restructuring 0.8 0.0 - 0.5 1.0 2.3 Executive transition - - - 0.8 0.8 A
Slide 23: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Cash Flow from Operations $ (21.4) $ 16.9 $ 38.3 $ 35.2 $ 0.1 $ 11.1 $ 18.5 $ 8.3 Capital Expenditures1 (3.6) (5.0) (3.9) (7.2) (3.3) (5.9) (6.0) (4.5) Free Cash Flo
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