NEW ALBANY, Ohio, Aug. 10, 2020 /PRNewswire/ -- Commercial Vehicle
Group, Inc. (the "Company" or "CVG") (NASDAQ: CVGI) today reported
financial results for the second quarter ended June 30, 2020,
including revenues of $126.9 million, net loss of $12.5 million, EPS of $(0.40), pre-tax special charges of $7.0 million, and adjusted EPS of
$(0.24).
|
Second
Quarter
|
($ in millions except
EPS)
|
2020
|
|
2019
|
Revenues
|
$126.9
|
|
$243.2
|
Operating (Loss)
Income
|
$(10.5)
|
|
$15.9
|
Adjusted Operating
(Loss) Income 1
|
$(3.6)
|
|
$15.9
|
Net (Loss)
Income
|
$(12.5)
|
|
$6.1
|
Basic and Diluted
EPS
|
$(0.40)
|
|
$0.20
|
Adjusted Basic and
Diluted EPS 1
|
$(0.24)
|
|
$0.26
|
Adjusted EBITDA
1
|
$1.2
|
|
$19.0
|
1 See Appendix A for GAAP to
Non-GAAP reconciliation
|
"We navigated through an incredibly difficult quarter which was
exacerbated by the COVID-19 pandemic that led to a rapid
contraction in our end markets and the temporary shutdowns of our
customers' operations. However, we moved quickly to align the
business to the new realities we are facing, and as a result of our
actions, we generated positive adjusted EBITDA and free cash flow
during the quarter, while maintaining liquidity of greater than
$100 million," commented Harold Bevis, President and Chief Executive
Officer of CVG.
"Importantly, we had significant new business wins with a large
e-commerce customer to deliver warehouse automation and material
handling equipment, and seating systems for last mile delivery
electric vehicles, which we expect will come online in the next few
quarters. We are also seeing strong signs of recovery in our core
end markets. We continue to feel effects of the global pandemic
throughout our operations and we believe we are taking necessary
precautions to keep our employees safe and healthy and to keep our
operations running efficiently. Our cost optimization efforts,
including permanent and temporary cost reduction measures, coupled
with the significant new business wins during the quarter have
created new momentum and energy within the Company," concluded Mr.
Bevis.
Consolidated Results
Second Quarter 2020 Results
- Second quarter 2020 revenues were $126.9 million compared to $243.2 million in the prior year period, a
decrease of 47.8%. The decrease in revenues reflects the sharp
declines in sales due to the COVID-19 pandemic and market declines,
and more specifically lower heavy-duty truck production in
North America and in the global
construction markets we serve, partially offset by an increase in
industrial and military revenues primarily attributable to the
First Source Electronics ("FSE") business. Foreign currency
translation adversely impacted second quarter 2020 revenues by
$1.8 million, or by 0.7%.
- Operating loss for the second quarter 2020 was $10.5 million compared to operating income of
$15.9 million in the prior year
period. The operating loss is primarily attributable to lower sales
volume, and the second quarter results include charges of
$2.9 million associated with ongoing
restructuring initiatives, a $3.5
million charge for future milestone payments related to the
performance of the FSE business and charges of $0.4 million associated with the 2019 restatement
investigation. The second quarter of 2020 adjusted operating loss
was $3.6 million when excluding
special charges. The impact of the decline in sales and second
quarter specific costs were partially offset by cost reduction
initiatives.
- Interest associated with our debt and other expenses were
$5.1 million and $7.5 million for the three months ended
June 30, 2020 and 2019, respectively.
The second quarter of 2019 results include a $2.5 million non-cash charge associated with the
early payout of benefits to employees with deferred vested balances
in the U.S. defined benefit pension plan.
- Net loss was $12.5 million for
the second quarter 2020, or $0.40 per
diluted share, compared to net income of $6.1 million in the prior year period, or
$0.20 per diluted share.
At June 30, 2020, the Company had $15.0 million outstanding under its revolving
credit facility and liquidity of $106.6 million; $63.4
million of cash and $43.2
million of availability from the revolving credit
facility.
Segment Results
Electrical Systems Segment
Second Quarter 2020 Results
- Revenues for the Electrical Systems Segment in the second
quarter 2020 were $74.2 million
compared to $141.9 million for
the prior year period, a decrease of 47.7% primarily resulting from
market and COVID-19 related declines, partially offset by an
increase in revenues attributable to the FSE business.
Foreign currency translation adversely impacted second quarter 2020
revenues by $0.6 million, or by
0.4%.
- Operating loss for the second quarter 2020 was $6.2 million compared to operating income of
$13.9 million in the prior year
period. The operating loss is primarily attributable to lower
sales volume, and the second quarter results include charges of
$2.0 million associated with ongoing
restructuring initiatives, and a $3.5
million charge for future milestone payments related to the
performance of the FSE business. The second quarter of 2020
adjusted operating loss was $0.7 million when excluding special
charges.
Global Seating Segment
Second Quarter 2020 Results
- Revenues for the Global Seating Segment in the second quarter
2020 were $53.9 million compared
to $105.3 million in the prior
year period, a decrease of 48.8%, primarily resulting from market
and COVID-19 related declines. Foreign currency translation
adversely impacted second quarter 2020 revenues by $1.2 million, or by 1.1%.
- Operating income for the second quarter 2020 was $1.5 million compared to $9.4 million in the prior year period.
The decline in operating income is primarily attributable to lower
sales volume, and the second quarter results include charges of
$0.5 million associated with ongoing
restructuring initiatives. The second quarter of 2020 adjusted
operating income was $2.1 million when excluding special
charges.
Strategic Footprint Repositioning
The Company announced the strategic repositioning of its
operations to grow faster, innovate rapidly, and lower its costs.
This repositioning involves twelve facilities.
The Company's business in the warehouse automation and military
markets continues to grow with solid long-term outlook. We have
taken strategic actions to significantly expand our footprint,
capacity, and product complexity to serve these diverse markets.
These actions are expected to support between $100 million to $150
million of new business, depending on the mix. Anchor
customer business has already been established for this multi-plant
expansion with key actions underway as follows:
- Expanding our Elkridge, MD
plant by securing new space at an adjacent property. This plant is
the main plant for our manufacturing warehouse automation
subsystems and military subsystems.
- Repurposing floor space and creating new manufacturing
capability in our Vonore, TN
plant.
- Repurposing floor space and creating new manufacturing
capability in our Chillicothe, OH
plant.
- Repurposing floor space and creating new manufacturing
capability in our Monona, IA
plant.
- Moving certain production from Monona, IA plant to our low cost facility in
Agua Prieta, Mexico.
- Design and installation of a new medium-duty seat production
line in our Saltillo, Mexico
plant.
The Company is also permanently consolidating a portion of our
cost structure dedicated to mature markets through several
deliberate actions including the redistribution of our centralized
R&D capabilities to speed the time to market for new products
and expand our ability to innovate in the Asian market. The key
actions underway in this area are as follows:
- The recently announced consolidation of our Piedmont, AL plant into our Vonore, TN plant.
- Consolidation of one-half of our existing manufacturing
footprint at our Concord, NC plant
with our low cost facility in Saltillo,
Mexico.
- Consolidation of our corporate R&D center and activities
into two existing U.S. plants and improving our R&D
capabilities at our Shanghai,
China site, with the goal of increased innovation in each
market.
- Closure of our facility in Morelos,
Mexico, and consolidation of equipment into our Agua Prieta, Mexico plant.
"The goal of our strategic footprint realignment is to expand in
growth areas, reduce costs in mature areas, and increase our
ability to innovate. We are on track to permanently reduce our
annualized costs by over $15 million
in mature markets through a combination of staff reductions,
facility consolidations, and operational improvements." said Mr.
Bevis. "We believe these actions will make us stronger, increase
our competitiveness, accelerate the speed of our innovation, and
increase our opportunities to win. We are leveraging our know-how
to serve top tier OEMs with high quality, on-time delivery of
complex subsystems into new areas. We believe these actions will
enable new value and new growth. We look forward to sharing updates
on these activities as we execute our long term plan," concluded
Mr. Bevis.
Third Quarter Outlook
According to ACT Research, third quarter 2020 North American
heavy-duty and medium-duty truck build is expected to increase
approximately 50% and 30%, respectively, as compared to the second
quarter of 2020, as the North American Truck OEMs rebound from the
impacts of COVID-19. Although the COVID-19 pandemic creates
forecasting uncertainties, we currently anticipate revenues to
increase 25% to 35% for the three months ending September 30, 2020 as compared to the three
months ended June 30, 2020.
GAAP to Non-GAAP Reconciliation
A reconciliation of GAAP to non-GAAP financial measures
referenced in this release is included as Appendix A to this
release.
Conference Call
A conference call to discuss this press release is scheduled for
Monday, August 10, 2020, at 10:00 a.m.
ET. To participate, dial (833) 235-5650 using conference
code 4399004.
This call is being webcast by NASDAQ. The webcast, as well as a
supplemental earnings presentation, can be accessed through the
"Investors" section of Commercial Vehicle Group's Web site at
www.cvgrp.com, where it will be archived for one year.
A telephonic replay of the conference call will be available for
a period of two weeks following the call. To access the replay,
dial (800) 585-8367 using access code 4399004.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. (through its subsidiaries) is a
leading supplier of seating systems, electro-mechanical assemblies,
engineered material products, and warehouse automation subsystems
for many markets including the following: trucking, military,
warehouse automation, bus, agriculture, specialty transportation,
mining, industrial equipment and off-road recreational markets.
Information about the Company and its products is available on the
internet at www.cvgrp.com.
Forward-Looking Statements
This press release 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 similar expressions. In particular, this press
release may contain forward-looking statements about Company
expectations for future periods with respect to its plans to
improve financial results and enhance the Company, the future of
the Company's end markets, including the short-term and potential
longer-term impact of the COVID-19 pandemic on Class 8 and Class
5-7 North America truck build
rates and performance of the global construction equipment
business, expected cost savings, the Company's initiatives to
address customer needs, organic growth, the Company's plans to
focus on certain segments and markets and the Company's financial
position or other financial information. These statements are based
on certain assumptions that the Company has made in light of its
experience as well as its perspective on historical trends, current
conditions, expected future developments and other factors it
believes are appropriate under the circumstances. Actual results
may differ materially from the anticipated results because of
certain risks and uncertainties, including but not limited to: (i)
a material weakness in our internal control over financial
reporting which could, if not remediated, result in material
misstatements in our financial statements; (ii) future financial
restatements affecting the company; (iii) general economic or
business conditions affecting the markets in which the Company
serves; (iv) the Company's ability to develop or successfully
introduce new products; (v) risks associated with conducting
business in foreign countries and currencies; (vi) increased
competition in the medium- and heavy-duty truck markets,
construction, agriculture, aftermarket, military, bus and other
markets; (vii) the Company's failure to complete or successfully
integrate strategic acquisitions and the impact of such
acquisitions on business relationships; (viii) the Company's
ability to recognize synergies from the reorganization of the
segments; (ix) the Company's failure to successfully manage any
divestitures; (x) the impact of changes in governmental regulations
on the Company's customers or on its business; (xi) the loss of
business from a major customer, a collection of smaller customers
or the discontinuation of particular commercial vehicle platforms;
(xii) the Company's ability to obtain future financing due to
changes in the lending markets or its financial position; (xiii)
the Company's ability to comply with the financial covenants in its
debt facilities; (xiv) fluctuation in interest rates or change in
the reference interest rate relating to the Company's debt
facilities; (xv) the Company's ability to realize the benefits of
its cost reduction and strategic initiatives and address rising
labor and material costs; (xvi) volatility and cyclicality in the
commercial vehicle market adversely affecting us, including the
impact of the current COVID-19 pandemic; (xvii) the geographic
profile of our taxable income and changes in valuation of our
deferred tax assets and liabilities impacting our effective tax
rate; (xviii) changes to domestic manufacturing initiatives; (xix)
implementation of tax or other changes, by the United States or other international
jurisdictions, related to products manufactured in one or more
jurisdictions where the Company does business (xx) security
breaches and other disruptions that could compromise our
information systems; (xxi) the impact of disruptions in our supply
chain or delivery chains; (xxii) litigation against us; (xxiii) the
impact of health epidemics or widespread outbreak of contagious
disease; and (xxiv) various other risks as outlined under the
heading "Risk Factors" in the Company's Annual Report on Form 10-K
for fiscal year ending December 31,
2019 and our filings with the Securities and Exchange
Commission. There can be no assurance that statements made in this
press release relating to future events will be achieved. The
Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on behalf
of the Company are expressly qualified in their entirety by such
cautionary statements.
COMMERCIAL VEHICLE
GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (Amounts
in thousands, except per share amounts)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019 (as
restated)
|
|
2020
|
|
2019 (as
restated)
|
|
Revenues
|
$
|
126,896
|
|
|
$
|
243,190
|
|
|
$
|
314,001
|
|
|
$
|
486,354
|
|
|
Cost of
Revenues
|
120,421
|
|
|
210,754
|
|
|
287,223
|
|
|
420,829
|
|
|
Gross
Profit
|
6,475
|
|
|
32,436
|
|
|
26,778
|
|
|
65,525
|
|
|
Selling, General and
Administrative Expenses
|
15,984
|
|
|
16,248
|
|
|
33,083
|
|
|
31,447
|
|
|
Amortization
Expense
|
856
|
|
|
322
|
|
|
1,716
|
|
|
643
|
|
|
Impairment
Expense
|
150
|
|
|
—
|
|
|
29,017
|
|
|
—
|
|
|
Operating (Loss)
Income
|
(10,515)
|
|
|
15,866
|
|
|
(37,038)
|
|
|
33,435
|
|
|
Interest and Other
Expense
|
5,104
|
|
|
7,490
|
|
|
10,469
|
|
|
11,886
|
|
|
(Loss) Income Before
Provision for Income Taxes
|
(15,619)
|
|
|
8,376
|
|
|
(47,507)
|
|
|
21,549
|
|
|
(Benefit) Provision
for Income Taxes
|
(3,122)
|
|
|
2,230
|
|
|
(10,416)
|
|
|
5,417
|
|
|
Net (Loss)
Income
|
$
|
(12,497)
|
|
|
$
|
6,146
|
|
|
$
|
(37,091)
|
|
|
$
|
16,132
|
|
|
(Loss) earnings per
Common Share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.40)
|
|
|
$
|
0.20
|
|
|
$
|
(1.20)
|
|
|
$
|
0.53
|
|
|
Diluted
|
$
|
(0.40)
|
|
|
$
|
0.20
|
|
|
$
|
(1.20)
|
|
|
$
|
0.52
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
30,890
|
|
|
30,547
|
|
|
30,848
|
|
|
30,530
|
|
|
Diluted
|
30,890
|
|
|
30,824
|
|
|
30,848
|
|
|
30,731
|
|
|
COMMERCIAL VEHICLE
GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited) (Amounts in
thousands)
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(Unaudited)
|
|
|
|
(In thousands, except per share
amounts)
|
Assets
|
Current
Assets:
|
|
|
|
Cash
|
$
|
63,390
|
|
|
$
|
39,511
|
|
Accounts receivable,
net of allowances of $595 and $432, respectively
|
102,771
|
|
|
115,099
|
|
Inventories
|
70,711
|
|
|
82,872
|
|
Other current
assets
|
13,684
|
|
|
18,490
|
|
Total current
assets
|
250,556
|
|
|
255,972
|
|
Property, plant and
equipment, net of accumulated depreciation of $153,811 and
$154,939, respectively
|
66,867
|
|
|
73,686
|
|
Operating lease
right-of-use assets, net
|
31,172
|
|
|
34,960
|
|
Goodwill
|
—
|
|
|
27,816
|
|
Intangible assets,
net of accumulated amortization of $12,975 and $11,440,
respectively
|
23,362
|
|
|
25,258
|
|
Deferred income
taxes
|
26,385
|
|
|
14,654
|
|
Other assets,
net
|
2,646
|
|
|
3,480
|
|
Total
assets
|
$
|
400,988
|
|
|
$
|
435,826
|
|
Liabilities and
Stockholders' Equity
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
54,561
|
|
|
$
|
63,058
|
|
Revolving credit
facility
|
15,000
|
|
|
—
|
|
Current operating
lease liabilities
|
8,274
|
|
|
7,620
|
|
Accrued liabilities
and other
|
37,140
|
|
|
32,673
|
|
Current portion of
long-term debt
|
2,444
|
|
|
3,256
|
|
Total current
liabilities
|
117,419
|
|
|
106,607
|
|
Long-term
debt
|
151,729
|
|
|
153,128
|
|
Operating lease
liabilities
|
25,176
|
|
|
29,414
|
|
Pension and other
post-retirement benefits
|
9,986
|
|
|
10,666
|
|
Other long-term
liabilities
|
8,817
|
|
|
7,323
|
|
Total
liabilities
|
313,127
|
|
|
307,138
|
|
Stockholders'
Equity:
|
|
|
|
Preferred stock,
$0.01 par value (5,000,000 shares authorized; no shares issued and
outstanding)
|
—
|
|
|
—
|
|
Common stock, $0.01
par value (60,000,000 shares authorized; 30,985,669 and 30,801,255
shares issued and outstanding respectively)
|
309
|
|
|
323
|
|
Treasury stock, at
cost: 1,334,251 shares, as of June 2020 and December
2019
|
(11,230)
|
|
|
(11,230)
|
|
Additional paid-in
capital
|
247,582
|
|
|
245,852
|
|
Retained
deficit
|
(97,398)
|
|
|
(60,307)
|
|
Accumulated other
comprehensive loss
|
(51,402)
|
|
|
(45,950)
|
|
Total stockholders'
equity
|
87,861
|
|
|
128,688
|
|
Total liabilities and
stockholders' equity
|
$
|
400,988
|
|
|
$
|
435,826
|
|
COMMERCIAL VEHICLE
GROUP, INC. AND SUBSIDIARIES BUSINESS SEGMENT FINANCIAL
INFORMATION (Unaudited) (Amounts in
thousands)
|
|
Three Months Ended
June 30,
|
|
Electrical
Systems
|
|
Global
Seating
|
|
Corporate /
Other
|
|
Total
|
|
2020
|
|
2019
(as restated)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
(as restated)
|
|
2020
|
|
2019
(as restated)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
Revenues
|
$
|
73,498
|
|
|
$
|
139,089
|
|
|
$
|
53,398
|
|
|
$
|
104,101
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
126,896
|
|
|
$
|
243,190
|
|
Intersegment
Revenues
|
712
|
|
|
2,858
|
|
|
464
|
|
|
1,175
|
|
|
(1,176)
|
|
|
(4,033)
|
|
|
—
|
|
|
—
|
|
Total
Revenues
|
$
|
74,210
|
|
|
$
|
141,947
|
|
|
$
|
53,862
|
|
|
$
|
105,276
|
|
|
$
|
(1,176)
|
|
|
$
|
(4,033)
|
|
|
$
|
126,896
|
|
|
$
|
243,190
|
|
Gross
Profit
|
1,144
|
|
|
17,761
|
|
|
5,345
|
|
|
14,686
|
|
|
(14)
|
|
|
(11)
|
|
|
6,475
|
|
|
32,436
|
|
Selling,
General & Administrative Expenses
|
6,580
|
|
|
3,676
|
|
|
3,683
|
|
|
5,177
|
|
|
5,721
|
|
|
7,395
|
|
|
15,984
|
|
|
16,248
|
|
Amortization
Expense
|
729
|
|
|
186
|
|
|
127
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
856
|
|
|
322
|
|
Impairment
Expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
150
|
|
|
—
|
|
Operating (Loss)
Income
|
$
|
(6,165)
|
|
|
$
|
13,899
|
|
|
$
|
1,535
|
|
|
$
|
9,373
|
|
|
$
|
(5,885)
|
|
|
$
|
(7,406)
|
|
|
$
|
(10,515)
|
|
|
$
|
15,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
Electrical
Systems
|
|
Global
Seating
|
|
Corporate /
Other
|
|
Total
|
|
2020
|
|
2019
(as restated)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
(as restated)
|
|
2020
|
|
2019
(as restated)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
Revenues
|
$
|
184,665
|
|
|
$
|
279,761
|
|
|
$
|
129,336
|
|
|
$
|
206,593
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
314,001
|
|
|
$
|
486,354
|
|
Intersegment
Revenues
|
1,643
|
|
|
5,797
|
|
|
506
|
|
|
2,744
|
|
|
(2,149)
|
|
|
(8,541)
|
|
|
—
|
|
|
—
|
|
Total
Revenues
|
$
|
186,308
|
|
|
$
|
285,558
|
|
|
$
|
129,842
|
|
|
$
|
209,337
|
|
|
$
|
(2,149)
|
|
|
$
|
(8,541)
|
|
|
$
|
314,001
|
|
|
$
|
486,354
|
|
Gross
Profit
|
12,090
|
|
|
37,093
|
|
|
14,714
|
|
|
28,466
|
|
|
(26)
|
|
|
(34)
|
|
|
26,778
|
|
|
65,525
|
|
Selling,
General & Administrative Expenses
|
10,531
|
|
|
7,825
|
|
|
8,475
|
|
|
10,514
|
|
|
14,077
|
|
|
13,108
|
|
|
33,083
|
|
|
31,447
|
|
Amortization
Expense
|
1,458
|
|
|
373
|
|
|
258
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
1,716
|
|
|
643
|
|
Impairment
Expense
|
23,415
|
|
|
—
|
|
|
4,809
|
|
|
—
|
|
|
793
|
|
|
—
|
|
|
29,017
|
|
|
—
|
|
Operating (Loss)
Income
|
$
|
(23,314)
|
|
|
$
|
28,895
|
|
|
$
|
1,172
|
|
|
$
|
17,682
|
|
|
$
|
(14,896)
|
|
|
$
|
(13,142)
|
|
|
$
|
(37,038)
|
|
|
$
|
33,435
|
|
COMMERCIAL VEHICLE
GROUP, INC. AND SUBSIDIARIES Appendix A: Reconciliation
of GAAP to Non-GAAP Financial Measures
(Unaudited) (Amounts in thousands, except per share
data)
|
|
For the Three
Months Ended
|
|
June 30,
2020
|
|
June 30,
2019
|
Operating (Loss)
Income
|
$
|
(10,515)
|
|
|
$
|
15,866
|
|
Deferred Consideration
Purchase Accounting
|
3,461
|
|
|
—
|
|
Restructuring
|
2,944
|
|
|
—
|
|
Investigation
|
408
|
|
|
—
|
|
Impairment of Goodwill
and Long-Lived Assets
|
150
|
|
|
—
|
|
Adjusted Operating
(Loss) Income
|
$
|
(3,552)
|
|
|
$
|
15,866
|
|
% of
Revenues
|
(2.8)%
|
|
|
6.5%
|
|
|
|
|
|
Interest
Expense
|
5,309
|
|
|
4,805
|
|
Other Income /
Expense
|
(205)
|
|
|
2,687
|
|
Non-Cash Pension
Expense
|
—
|
|
|
(2,500)
|
|
(Loss) Income Before
Provision for Income Taxes
|
$
|
(8,656)
|
|
|
$
|
10,874
|
|
|
|
|
|
Adjusted Provision for
Income Taxes1
|
(1,381)
|
|
|
2,855
|
|
Adjusted Net (Loss)
Income
|
$
|
(7,275)
|
|
|
$
|
8,019
|
|
|
|
|
|
Adjusted Basic and
Diluted EPS
|
$
|
(0.24)
|
|
|
$
|
0.26
|
|
|
|
|
|
Adjusted Operating
(Loss) Income
|
$
|
(3,552)
|
|
|
$
|
15,866
|
|
Depreciation
Expense
|
3,729
|
|
|
2,981
|
|
Amortization
Expense
|
856
|
|
|
322
|
|
Non Interest Other
Income / Expense
|
205
|
|
|
(187)
|
|
Adjusted
EBITDA
|
$
|
1,238
|
|
|
$
|
18,982
|
|
% of
Revenues
|
1.0%
|
|
|
7.8%
|
|
1.
Reported Tax (Benefit) Provision adjusted for tax effect of special
charges at 25%
|
COMMERCIAL VEHICLE
GROUP, INC. AND SUBSIDIARIES Appendix B: Segment
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) (Amounts in thousands)
|
|
For the Three
Months Ended June 30, 2020
|
|
Electrical
Systems
|
|
Global
Seating
|
|
Corporate
|
|
Total
|
Operating (Loss)
Income
|
$
|
(6,165)
|
|
|
$
|
1,535
|
|
|
$
|
(5,885)
|
|
|
$
|
(10,515)
|
|
Deferred Consideration
Purchase Accounting
|
3,461
|
|
|
—
|
|
|
—
|
|
|
3,461
|
|
Restructuring
|
1,986
|
|
|
546
|
|
|
412
|
|
|
2,944
|
|
Investigation
|
—
|
|
|
—
|
|
|
408
|
|
|
408
|
|
Impairment of
Long-Lived Assets
|
—
|
|
|
—
|
|
|
150
|
|
|
150
|
|
Adjusted Operating
(Loss) Income
|
$
|
(718)
|
|
|
$
|
2,081
|
|
|
$
|
(4,915)
|
|
|
$
|
(3,552)
|
|
% of
Revenues
|
(1.0)%
|
|
|
3.9%
|
|
|
|
|
(2.8)%
|
|
Use of Non-GAAP Measures
This earnings release 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
corporate activities; or (ii) relate to activities or actions that
may have occurred over multiple or in prior periods without
predictable trends. Management uses these non-GAAP financial
measures internally to evaluate the Company's performance, engage
in financial and operational planning and to determine incentive
compensation.
Management provides these non-GAAP financial measures to
investors as supplemental metrics to assist readers in assessing
the effects of items and events on the Company's financial and
operating results and in comparing the Company's performance to
that of its competitors and to comparable reporting periods. The
non-GAAP financial measures used by the Company may be calculated
differently from, and therefore may not be comparable to, similarly
titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP. The financial results
calculated in accordance with GAAP and reconciliations to those
financial statements set forth above should be carefully
evaluated.
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SOURCE Commercial Vehicle Group, Inc.