Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Cooper-Standard Holdings Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Cooper-Standard Holdings Inc. | dex991.htm |
 Second Quarter
2010 Earnings Conference Call
August 18, 2010
Exhibit 99.2 |
 cooperstandard
Introduction & Agenda
2
Introduction
Glenn Dong
Vice President and Treasurer
Executive Overview
Jim McElya
Chairman and Chief Executive Officer
Commercial Highlights
Ed Hasler
President
Financial Overview
Allen Campbell
Chief Financial Officer
Question & Answers |
 cooperstandard
Safe Harbor
3
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 thereby. These forward-looking statements include statements concerning the
company’s plans, objectives, goals, strategies, future events, future revenue or
performance, capital expenditures, financing needs, plans or intentions relating to
acquisitions, business trends, the impact of “fresh-start” accounting, the impact
of the company’s bankruptcy on its future performance and other information that is not
historical information. When used herein, the words “estimates,” “expects,”
“anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” or future
or conditional verbs, such as “will,” “should,” “could,” or
“may,” and variations of such words or similar expressions are intended to identify
forward-looking statements. All forward-looking statements, including, without
limitation, management’s examination of historical operating trends and data, are based
upon Cooper Standard’s current expectations and various assumptions. Cooper
Standard’s expectations, beliefs and projections are expressed in good faith and Cooper
Standard believes there is a reasonable basis for them. However, no assurances can be made that
these expectations, beliefs and projections will be achieved. Forward-looking statements are not
guarantees of future performance and are subject to significant risks and uncertainties that
may cause actual results or achievements to be materially different from the future results or
achievements expressed or implied by the forward-looking statements.
|
 cooperstandard
Safe Harbor
4
There are a number of risks and uncertainties that could cause the company’s actual results to
differ materially from the forward-looking statements contained herein. Such risks and
uncertainties and other important factors include, but are not limited to: Cooper
Standard’s dependence on the automotive industry and the possibility of further material
contractions in automotive sales and production; Cooper Standard’s ability to generate
sufficient cash to service its indebtedness and meet dividend obligations on its 7% preferred
stock; disruptions in the financial markets and the availability of and cost of credit;
viability of the company’s supply base; escalating pricing pressures; Cooper
Standard’s ability to meet a significant increase in demand; availability and cost of raw
materials; Cooper Standard’s ability to compete in the highly competitive automotive parts
industry; Cooper Standard’s significant non-U.S. operations; Cooper Standard’s
dependence on certain major customers; labor conditions; Cooper Standard’s ability to meet
its customers’ needs for new and improved products in a timely manner; Cooper
Standard’s ability to attract and retain key personnel; Cooper Standard’s legal
rights to its intellectual property portfolio; Cooper Standard’s underfunded pension
plans; environmental and other regulation; the possibility that Cooper Standard’s acquisition
strategy will not be successful; the lack of comparability of the company’s financial condition
and results of operations following its emergence from bankruptcy to those reflected in its
historical financial statements; whether the company’s future financial statements will
contain disclosure about its ability to continue as a going concern; and uncertainty as to the
effect of the company’s emergence from bankruptcy on its operations going forward.
There may be other factors that may cause the company’s actual results to differ materially from
the forward-looking statements. Cooper Standard undertakes no obligation to update or
revise forward- looking statements to reflect events or circumstances that arise after the
date made or to reflect the occurrence of unanticipated events.
|
 Jim
McElya Chairman & CEO
Executive Overview
Q2 2010 |
 cooperstandard
•
Uncertain volumes
•
Global economic concerns
Executive Overview
•
Solid first half performance
•
Four straight quarters of
double digit adjusted EBITDA
margins
6 |
 cooperstandard
Cooper Standard Well Positioned for the Future
Executive Overview
•
Successful reorganization
•
Reduced debt by $650 million
•
Improved overall cost structure
•
Managed customer and supplier relationships
7 |
 Commercial Highlights
Q2 2010
Ed Hasler
President |
 cooperstandard
Commercial Highlights
•
Sales up with strong gains in emerging markets
•
New business wins across diverse customer base
•
Launched several new programs
•
Presenting new innovations at major customers
•
Maintained strong relationships with strategic OEMs
9
Strong Customer Relationships |
 cooperstandard
Technology Drivers for Future Growth
10
Body Sealing: Safe Seal
Fuel, Brake and Emissions: Direct Injection
Anti-Vibration: Multi-State Mount
Thermal Management: Series 4 Pump |
 cooperstandard
Global Product Launches
•
Launched over 30 programs during the first half of the year
–
Chrysler
Jeep
Grand
Cherokee
(North
America):
Thermal products
–
Ford
Fiesta
(North
America,
Europe):
Diesel fuel bundle; fuel, brake and vapor lines;
vent hose; dynamic sealing
–
Porsche
Cayenne
(Europe):
Sealing -
glass runs, wheel arch, waist belts;
hydraulic lines
–
VW
Touareg
(Europe):
Sealing -
glass runs, wheel arch, waist belts;
–
Alfa
Romeo
149
(Europe):
Sealing –
outer waist belts, static and dynamic
–
Renault
SM5
(Asia):
Sealing –
static and dynamic
11
Launches across multiple product groups and
global customers. |
 cooperstandard
Cooper Standard’s Top 20 Platforms Q2-2010
12
Top 20 as of Q2 2010
Cooper
Standard
products on
all top 20
selling
vehicles in
North
America and
on 19 of the
20 top-selling
vehicle
models in
Europe.
IHS Worldwide source
for top selling vehicles
Includes JV Partners
#5 GM
Vectra/Malibu
#2 Ford
Tribute/Escape
#20 Chrysler
Jeep Wrangler
#1 Ford
F-150
#7 GM
Silverado/Sierra
#9 GM
Impala
#12 VW -Audi
Passat/Beduin
#8 Ford
Mondeo
#15 Fiat
Palio/Strada/Doblo
#3 GM
Tahoe/Yukon/
Escalade
#4 Ford
Fusion/Fiesta
#10 Fiat
Linea/Punto
#6 Ford
Fusion/MKZ/Edge
#11 Ford
Fiesta/Fusion
#13 Ford
Focus/Kuga/Axela
#14 Chrysler
Sebring
/Avenger/Compass
#17 PSA
C4/Picasso/308
#16 Ford
Ram / Titan
#18 Ford
Crown Vic/Grand
Marquis
#19 BMW
3-Series
Broad customer mix across multiple vehicle segments |
 Financial Overview
Q2 2010
Allen Campbell
Chief Financial Officer |
 cooperstandard
Q2 and YTD June 2010 Performance
14
$ Millions
Q-2 2009
Q-
2 2010
Net Sales
$448.0
$628.4
Operating Profit (Loss)
$(369.1)
$36.6
Gross Profit
$55.3
$106.2
YTD 2009
YTD 2010
$849.8
$1,224.8
$(406.2)
$87.6
$93.1
$210.7
Net Income (Loss)
$(349.3)
$637.8
$(404.3)
$641.2
Adjusted EBITDA
73.8
$47.1
$147.6
$31.7
% Margin
11.7%
5.5%
7.1%
12.1% |
 cooperstandard
EBITDA and Adjusted EBITDA Reconciliation
15
$ USD Millions
2009
2010
Net Income (Loss)
$(404.3)
$ 641.2
Provision for income tax expense
(35.1)
EBITDA
$ (335.5)
$ 774.6
Restructuring
28.5
6.3
Adjusted EBITDA
$ 47.1
$ 147.6
40.9
6 Months Ended June 30th
Net Interest expense
41.7
48.0
Depreciation and amortization
62.2
44.5
Bond Repurchase
(9.1)
Other / FX
0.5
--
18.6
EDITDA and Adjusted EBITDA are Non-GAAP measures. Reference comments on slide
16. Reorganization / Fresh Start/ Impairment
(660.0)
Inventory Write-Up
--
8.1
EBITDA excl. Reorg & Impairment
114.6
27.2
362.7 |
 cooperstandard
Non-GAAP Financial Measures
16
EBITDA and adjusted EBITDA are measures not recognized under Generally
Accepted Accounting Principles (GAAP) which exclude certain non-cash and
non- recurring items.
When analyzing the company’s operating performance, investors should use
EBITDA and adjusted EBITDA in addition to, and not as alternatives for, net
income (loss), operating income, or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flow from operating
activities as a measure of the company’s performance. EBITDA and
adjusted EBITDA have limitations as analytical
tools
and
should
not
be
considered
in
isolation
or
as
substitutes
for
analysis of the company’s results of operations as reported under GAAP. Other
companies may report EBITDA and adjusted EBITDA differently and therefore
Cooper Standard’s results may not be comparable to other similarly
titled measures of other companies. |
 cooperstandard
Cash Flow 2010 Year-to-Date
(1)
Excludes reorganization costs
17
millions $USD
Cash 12/31/2009
$380.3
DIP Borrowings
(175.0)
Net Cash Available
205.3
Cash
from
Operations
(1)
43.7
Capital Expenditures
(29.1)
14.6
Cash Net of Ops
219.9
Capital Raise less Reorg
& Related Costs
(37.6)
FX/Other
6.4
Ending Cash 6/30
$188.7 |
 cooperstandard
18
Liquidity as of June 30, 2010
Cash on Balance Sheet
$188.7M
ABL Revolver
$125.0M
Letters of Credit
$(34.5)M
Total Liquidity
$279.2 M
Sufficient liquidity to support operations & future growth
|
 cooperstandard
Net Debt Summary
19
($ in millions)
$1,026
$284
Net Debt
Net debt = 1x LTM
Adjusted EBITDA
$1,291
$265
$473
$189
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Q1-10
Q2-10
Debt
Cash |
 cooperstandard
Summary
•
Four consecutive quarters of double digit adjusted
EBITDA margins
•
Strong 1
st
half 2010 results
•
Ample liquidity
•
Conservative debt structure
•
Reduced operating leverage
20
Well positioned for current market and continued success.
|
 Questions & Answers |
 cooperstandard
Closing Comments
•
Reduced operating costs
•
Strong 1
st
half results
•
Solid customer and
supplier relationships
•
2
nd
half volumes uncertain
•
Global economic concerns
•
Raw material headwinds
22
Industry Remains Fragile |