Commercial Vehicle Group, Inc. · NASDAQ:CVGI

Commercial Vehicle — Q3 2019 Earnings Presentation

15 slides from Commercial Vehicle's earnings presentation, Nov 6, 2019

  1. Slide 1: Q3 2019 Earnings Conference Call

    Patrick Miller President & CEO Tim Trenary CFO & Treasurer Kirk Feiler COMMERCIAL VEHICLE GROUP, INC. VP Corporate Development & Investor Relations Q3 2019 Earnings Conference Call November 7, 2019

  2. 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”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and sim

  3. Slide 3: Q3 2019 Highlights

    Q3 2019 Highlights Revenue of $225.4 million, flat compared to Q3 2018 North American heavy- and medium-duty truck sales remain high in Q3 2019 Operating income of $13.2 million versus $16.2 million in Q3 2018 . SG&A includes $0.9 million costs associated with FSE acquisition . Cost control and r

  4. Slide 4: FSE Overview

    FSE Overview Aligns with CVG’s business model and strategy . Focus is on complex, low to medium volume applications Product lines expand CVG’s reach into the electronic space Products and capabilities include: . Military electronic devices and systems . Control panels . Electromechanical assembli

  5. Slide 5: Q3 2019 Segment Highlights

    Q3 2019 Segment Highlights Electrical Systems segment . Revenue up 2.5%, operating income up 2.1% . Changes to commercial processes enhance organic growth efforts . Capability and product diversification strategy starting to bear fruit with shift into electromechanical systems production Global Se

  6. Slide 6: End Market Outlook

    End Market Outlook  Continued softness in APAC construction market  Europe and North American construction markets show signs of weakness  Class 8 build peaks in 2019, returns to replacement levels in 2020 . Class 8 backlog ~133,000 units  Class 5-7 build flat versus prior year; decline in 2020

  7. Slide 7: Finance Update

    Finance Update COMMERCIAL VEHICLE GROUP, INC.

  8. Slide 8: Q3 2019 Financial Update

    Q3 2019 Financial Update $M except per share data Q3 2019 Q3 2018 Change Revenue 225.4 225.0 0.2% Gross Profit 31.2 32.2 (3.1%) Gross Margin 13.8% 14.3% SGA 17.5 15.6 (12.2%) Operating Income 13.2 16.2 (18.5%) Operating Margin 5.9% 7.2% Diluted Earnings Per Share 0.28 0.41 (31.7%)  Revenue flat . +

  9. Slide 9: Cost Impacts Decline

    Cost Impacts Decline $3.0 $2.5 $0.6 $2.0 $0.2 $1.5 $0.7 $1.2 $0.3 $1.0 $0.8 $0.5 $1.1 $0.8 $0.5 $0.0 Mexican Wage (net) Troubled Supplier Manufacturing Investments 1Q 2Q 3Q  Actions taken to lessen the impact of headwinds, including pricing and cost-out initiatives, have been successful  Manufactu

  10. Slide 10: Electrical Systems Segment Results

    Electrical Systems Segment Results Electrical Systems 3Q 2019 Sales ($M) Q3 2019 Q3 2018 Change Revenue 131.4 128.2 2.5% Gross Profit 18.9 18.3 3.3% 20% Truck OEMs Gross Margin 14.4% 14.3% Construction OEMs 10% 52% SG&A 4.0 3.8 5.3% Aftermarket / OE Service 18% Other Operating Income 14.6 14.3 2.1%

  11. Slide 11: Global Seating Segment Sales

    Global Seating Segment Sales Global Seating 3Q 2019 Sales ($M) Q3 2019 Q3 2018 Change Revenue 95.7 101.0 (5.2%) Gross Profit 12.3 13.9 (11.5%) 10% Truck OEMs Gross Margin 12.9% 13.8% 21% Construction OEMs 51% Aftermarket / OE Service SG&A 5.0 5.7 12.3% 18% Other Operating Income 7.2 8.1 (11.1%) Oper

  12. Slide 12: Capital Structure

    Capital Structure ($M) 9/30/2019 9/30/2018 Cash 38.7 57.5 ABL Availability 70.5 63.3 Total Liquidity 109.2 120.8 Debt 162.1 169.5 TTM EBITDA 76.3 77.9 Gross Leverage 2.1x 2.2x Net Leverage 1.6x 1.4x  Net Leverage of 1.6x below target range of 2-3x See appendix for reconciliation of GAAP to Non-GAAP

  13. Slide 13: Appendix

    Appendix COMMERCIAL VEHICLE GROUP, INC.

  14. Slide 14: Use of Non-GAAP Measures

    Use of Non-GAAP Measures This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, engage in financial and operat

  15. Slide 15: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures Trailing Twelve Months $ Millions Ended September 30th, 2019 2018 Net Income $ 35.7 $ 28.4 Interest 18.4 12.6 Provision for Income Taxes 7.6 21.2 Depreciation 13.2 14.4 Amortization 1.4 1.3 EBITDA $ 76.3 $ 77.9 As of September 30th, 2019 2018 Deb

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