Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q3 2024 Earnings Presentation
24 slides from Cooper-standard's earnings presentation, Nov 1, 2024
Slide 1: Creating Sustainable Solutions Together: Third Quarter 2024 Earnings Presentation
Creating Sustainable Solutions TOGETHER Third Quarter 2024 Earnings Presentation November 1, 2024
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations Third 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: Third Quarter Summary
Third Quarter Summary Jeff Edwards, Chairman and CEO 4
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights Continuing Strong Operating Performance; Cost Savings Being Realize as Planned 98% World-class Quality 97% World-class Service 0.20 World-class Safety Green Customer Scorecards Green Launch Scorecards Total incident rate $15m Manufacturing/Purchasing $10m Cost Initiative Savings $
Slide 6: World-class Workplace Safety
World-class Workplace Safety 6
Slide 7: Continued Recognition for Leadership in Sustainability
Continued Recognition for Leadership in Sustainability • 8th Straight year being recognized by EcoVadis • 7th time receiving Silver Medal Status • Ranked in the 88th percentile of responding companies in our segment • Recognized by Nissan for sustainability 7
Slide 8: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO 8
Slide 9: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Sales $ 685.4 $ 736.0 $ 2,070.1 $ 2,142.2 Gross Profit $ 76.3 $ 106.5 $ 220.9 $ 226.1 % Margin 11.1 % 14.5 % 10.7 % 10.6 % Adjusted EBITDA1 $ 46.1 $ 79.1 $
Slide 10: Q3 2024 Bridge Analysis
Q3 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. Totals may not add due to rounding. 10
Slide 11: Q3 2024 YTD Bridge Analysis
Q3 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. Totals may not add due to rounding 11
Slide 12: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - September 30, 2024 (millions) (millions) Three Months Ended September 30, 2024 2023 ABL availability Net cash provided by operating activities $ 27.9 $ 20.5 Capital expenditures (10.9) (16.4) Cash on hand Free cash flow $ 16.9 $ 4.0 Current Liqu
Slide 13: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 13
Slide 14: 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 15: Continuing Aggressive Lean Initiatives to Further Optimize Costs
Continuing Aggressive Lean Initiatives to Further Optimize Costs Cumulative Sustainable Cost-Saving Impact to Adjusted EBITDA (2019-2024 YTD) Ongoing Initiatives Driving Savings in 2024 • Total of $64m in cost savings achieved in 2024 YTD ◦ $50m from manufacturing/purchasing lean initiatives ◦ $14m
Slide 16: Key Innovations Garnering Prestigious Recognition
Key Innovations Garnering Prestigious Recognition FlexiCoreTM Thermoplastic Body Door Seal eCoFlow Switch Pump 16
Slide 17: 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 $2.70 - $2.75 billion Adj. EBITDA2 $167.1 million $180 - $195 million Capital Expenditures $
Slide 18: Cooper Standard
G CooperStandard 18
Slide 19: Appendix
|! Appendix G CooperStandard 19
Slide 20: 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 21: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (Unaudited, dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net (loss) income attributable to Cooper-Standard Holdings Inc. $ (11,057) $ 11,363 $ (118,960) $ (146,833) Income tax expense 2,861
Slide 22: Adjusted Net (Loss) Income and Adjusted EPS
Adjusted Net (Loss) Income and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net (loss) income attributable to Cooper-Standard Holdings Inc. $ (11,057) $ 11,363 $ (118,960)
Slide 23: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended September 30, 2024 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q4 2023 Q1 2024 Q2 2024 Q3 2024 September 30, 2024 Net loss attributable to Cooper-Standard Holdings Inc. $ (55,152) $ (31,660) $ (76,243) $ (11,057) $ (174,11
Slide 24: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities $ 27,859 $ 20,466 $ 1,647 $ 37,616 Capital expenditures (10,937) (16,424) (39,014) (63,184) Free cash flow $ 16,922 $
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