Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q3 2011 Earnings Presentation
22 slides from Cooper-standard's earnings presentation, Nov 15, 2011
Slide 1: Cooper Standard 3Q 2011 Earnings Call
Cooper Standard 3Q 2011 Third Quarter 2011 Earnings Call November 15, 2011 Exhibit 99.1
Slide 2: Introduction & Agenda
Introduction & Agenda • Introduction: Glenn Dong, Treasurer • Executive Overview: Jim McElya, CEO • Business Highlights: Keith Stephenson, COO • Financial Review & Updated Guidance: Allen Campbell, CFO • Questions & Answers
Slide 3: Safe Harbor
Safe Harbor This presentation includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause actual results to
Slide 4: Safe Harbor
Safe Harbor In addition to historical information, certain statements contained herein are forward-looking statements within the meaning of federal securities laws, and Cooper Standard Automotive (Cooper Standard) intends that such forward- looking statements be subject to the safe-harbor created th
Slide 5: Executive Overview 3Q 2011
Jim McElya Chairman & CEO Executive Overview 3Q 2011
Slide 6: Executive Overview: Third Quarter 2011 Review
Executive Overview: Third Quarter 2011 Review • Continued revenue and earnings growth: – 3Q sales growth of 21% – 3Q adjusted EBITDA margin of 10.4% • Resulting from: – Increase in North American volumes – FMEA joint venture agreement – Favorable lean savings impact • Offsetting: – Higher raw materi
Slide 7: Executive Overview: Industry Trends
Executive Overview: Industry Trends • Detroit 3 Union contracts ratified • North American volumes holding strong • Softness in Europe and South America • Raw materials remain challenging • Japanese OEMs continue slow recovery
Slide 8: Executive Overview: Strategic Progress
Executive Overview: Strategic Progress • Growth strategy confirmed • Technology investments • Footprint continues to expand
Slide 9: Business Highlights 3Q 2011
Business Highlights 3Q 2011 Keith Stephenson Chief Operating Officer
Slide 10: Business Highlights
Business Highlights • Managing specific market challenges • Further expansion in emerging markets • Increasing value add for sealing product line • Business wins – Awards in 3Q
Slide 11: Continued Expansion in Emerging Markets
Continued Expansion in Emerging Markets Craiova, Romania Chennai, India Nakornratchasima, Thailand Sao Paulo, Brazil
Slide 12: Increased Value Add Sealing Systems
Increased Value Add Sealing Systems • Hardcoat Trim • Bright Trim • Glass Encapsulation • Obstacle Detection System (ODS)
Slide 13: Business Wins Featuring New Technology
Business Wins Featuring New Technology Product Application Throttle Valve High Feature V-6 Engine New Generation Pump Global Electric Vehicle Fuel Rails North American Truck Program Glass Run Seals Top Selling European Vehicle Obstacle Detection Systems Commercialized Application in Europe and North
Slide 14: Financial Overview 3Q 2011
Financial Overview 3Q 2011 Allen Campbell Chief Financial Officer
Slide 15: 3Q and Year-to-Date 2011 Performance
3Q and Year-to-Date 2011 Performance $ Millions Q3 2010 Q3 2011 Net Sales $585.7 $708.5 Operating Profit $ 28.8 $ 33.7 Gross Profit $102.1 $ 108.6 YTD 2010 YTD 2011 $1,810.4 $2,157.8 $ 116.5 $ 102.3 $ 312.8 $ 353.0 Net Income $ 20.8 $ 15.7 $ 305.5 $ 79.6 Adjusted EBITDA (excluding qtr. one times) $
Slide 16: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation $ USD Millions Net Income $305.5 $ 79.6 Provision for income tax expense 45.3 EBITDA $482.1 $ 228.6 Restructuring* 7.1 48.1 Adjusted EBITDA $ 214.8 $ 257.5 26.8 9 Months Ended September 30 Net interest expense 58.7 30.2 Depreciation and amortization 72.6 92.
Slide 17: Cash Flow 3Q 2011
Cash Flow 3Q 2011 Cash balance as of June 30 313.5 $ Cash generated (27.2) Cash balance as of September 30 286.3 $ ($ in Millions) Q3 - 2011 YTD - 2011 Cash from business 43.0 $ 146.1 $ Pension funding (2.9) (31.4) Changes in operating assets & liabilities (20.8) (68.9) Cash from operations 19.3 $ 4
Slide 18: 3Q 2011 Comparisons
3Q 2011 Comparisons Reported Same Quarter Prior Year Reported Noteworthy Items FX on Sales $28.5 FX Swing $ 8.2 Unrealized Loss on JV Forward Contract $ 5.5 Raw Material Prices $51.1 $708.5 $(3.2) $15.7 $(2.2) $73.4 Same Quarter Prior Year Net Sales Net Income Adjusted EBITDA $585.7 $657.4 Same Quar
Slide 19: 2011 Guidance - Reaffirmed
2011 Guidance - Reaffirmed • Sales: $2.8 billion - $2.9 billion • Capital expenditures: $100 million - • Cash restructuring: $50 million - $60 million • Cash taxes: $25 million - $30 million $110 million
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management considers EBITDA and adjusted EBITDA as key indicators of the Company’s operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance. Ad
Slide 21: Questions & Answers
Questions & Answers
Slide 22: 3Q 2011 Summary
3Q 2011 Summary • Continue to successfully navigate changing business environment • Strong organic growth due to rising volumes and increased efficiency • Effectively managing raw material costs • Acquisitions and investments position us well globally
Cooper-Standard Holdings — Q3 2011 Earnings Presentation on 6ix