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8-K - FORM 8-K - Commercial Vehicle Group, Inc. | c63056e8vk.htm |
Exhibit 99.1
CONTACT:
|
John Hyre, Investor Relations | |
Commercial Vehicle Group, Inc. | ||
(614) 289-5157 |
FOR IMMEDIATE RELEASE
COMMERCIAL VEHICLE GROUP ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2010 OPERATING RESULTS
AND FULL YEAR 2010 OPERATING RESULTS
NEW ALBANY, OHIO, February 16, 2011 Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported
revenues of $158.1 million for the fourth quarter of 2010, up 16% compared to $135.7 million for
the prior-year period. Operating income was $5.4 million and net income was $4.0 million, or $0.14
per diluted share, for the fourth quarter of 2010. Diluted shares outstanding for the quarter were
28.2 million.
Revenues for the quarter compared to the prior-year period increased by approximately $22.3
million, due primarily to the increase in the global construction market. Excluding restructuring
and impairment charges, operating income for the fourth quarter of 2010 was $5.5 million compared
to an operating loss of ($2.6) million for the prior-year period, an increase of approximately $8.1
million on $22.3 million of incremental revenues. Net income for the quarter ended December 31,
2010, was $4.0 million, or $0.14 per diluted share, compared to a net loss of ($23.7) million, or
($1.08) per diluted share, in the prior-year period. Included in the Companys results for the
fourth quarter of 2010 is other income of $1.0 million compared to $3.9 million for the same period
in 2009, primarily related to the mark to market of its foreign currency contracts.
Our revenues for the fourth quarter of 2010 were the highest levels we have seen since the fourth
quarter of 2008, offering further evidence of our end market recovery and new business
achievements, said Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group.
Despite an expected reduction in our military business this past quarter, we continue to see
upward movement in our other key end markets such as heavy-duty truck and construction. These
trends, along with our recent acquisition of Bostrom Seating, are positive signs of our flexibility
and financial strength as we move forward, added Mr. Dunn.
Revenues for the year ended December 31, 2010, were $597.8 million, an increase of $139.2 million,
or 30%, compared to the prior-year period, due primarily to the increase in both the North American
Class 8 heavy-duty truck market and global construction market, along with improvements in the
general global economic conditions in many of the Companys key end markets. Excluding
restructuring and impairment charges, operating income for the twelve-month period ended December
31, 2010, improved to $18.4 million compared to an operating loss of ($38.6) million for the prior
year. This increase in operating income represents an improvement of $57.0 million compared to the
prior-year period on $139.2 million of incremental revenues. Net income for the twelve-month
period ended December 31,
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2010, was $6.5 million, or $0.24 per diluted share, compared to a net
loss of ($81.5) million, or ($3.74) per diluted share, in the prior year.
Net debt (calculated as total debt less $42.6 million in cash) was $122.4 million at December 31,
2010, as compared to $153.1 million at December 31, 2009. The Company did not have any outstanding
borrowings under its asset-based revolver at December 31, 2010 and, as a result, was not subject to
any financial maintenance covenants as of December 31, 2010. The Company does not expect to
trigger the requirement to comply with financial maintenance covenants in 2011.
Year-over-year, our results continue to show the positive impact of the cost and realignment
initiatives we have taken over the past two years. Sequentially, our fourth quarter of 2010 was
impacted by the expected reduction in military revenues of approximately $4.0 million compared to
the third quarter, which was offset by favorable gains in our heavy-duty truck and construction
markets, said Chad M. Utrup, Chief Financial Officer of Commercial Vehicle Group. Also included
in our fourth quarter 2010 results were $0.2 million of expense related to our recently announced
Bostrom acquisition and $0.6 million of expense related to new product initiatives and future
programs. While these expenses impact us in the short term, they are obviously important for our
continued growth and strategic objectives, added Mr. Utrup.
A conference call to discuss the contents of this press release is scheduled for Thursday, February
17, 2010, at 10:00 a.m. ET. To participate, dial (888) 679-8034 using access code 43778413. You
can pre-register for the conference call and receive your pin number at:
https://www.theconferencingservice.com/prereg/key.process?key=P6PYTJCXC
This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Groups Web
site at www.cvgrp.com.
A replay of the conference call will be available for a period of two weeks following the call. To
access the replay, dial (888) 286-8010 using access code 19355203.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global
commercial vehicle market, including the heavy-duty truck market, the construction and agriculture
market and the specialty and military transportation markets. The Companys products include
suspension seat systems, interior trim systems, such as instrument and door panels, headliners,
cabinetry, molded products and floor systems, cab structures and components, mirrors, wiper
systems, electronic wiring harness assemblies and controls and switches specifically designed for
applications in commercial vehicle cabs. The Company is headquartered in New Albany, OH with
operations throughout North America, Europe and Asia. 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, expect, anticipate, intend, plan,
estimate, or similar expressions. In particular, this press release may contain forward-looking
statements about Company expectations for future periods with respect to the Companys financial
covenant compliance, new product initiatives and future programs, the Companys financial position
or other financial information. These statements are based on certain assumptions that the Company
has made in light of its experience in the industry 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) general
economic or business conditions affecting the markets in which the Company serves;
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(ii) the
Companys ability to develop or successfully introduce new products; (iii) risks associated with
conducting business in foreign countries and currencies; (iv) increased competition in the
heavy-duty truck market; (v) the impact of changes in governmental regulations on the Companys
customers or on its business; (vi) the loss of business from a major customer or the
discontinuation of particular commercial vehicle platforms; (vii) the Companys ability to obtain
future financing due to changes in the lending markets or its financial position; and
(viii) various other risks as outlined under the heading Risk Factors in the Companys Annual
Report on Form 10-K for fiscal year ending December 31, 2009. 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.
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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
REVENUES |
$ | 158,073 | $ | 135,725 | $ | 597,779 | $ | 458,569 | ||||||||
COST OF REVENUES |
137,788 | 125,342 | 522,982 | 448,912 | ||||||||||||
Gross Profit |
20,285 | 10,383 | 74,797 | 9,657 | ||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
14,699 | 12,867 | 56,111 | 47,874 | ||||||||||||
AMORTIZATION EXPENSE |
60 | 97 | 240 | 389 | ||||||||||||
INTANGIBLE ASSET IMPAIRMENT |
| 23,135 | | 30,135 | ||||||||||||
LONG-LIVED ASSET IMPAIRMENT |
| 13,827 | | 17,272 | ||||||||||||
RESTRUCTURING COSTS |
158 | 1,704 | 1,730 | 3,651 | ||||||||||||
Operating Income (Loss) |
5,368 | (41,247 | ) | 16,716 | (89,664 | ) | ||||||||||
OTHER INCOME |
(979 | ) | (3,933 | ) | (4,780 | ) | (11,119 | ) | ||||||||
INTEREST EXPENSE |
3,995 | 3,834 | 16,834 | 15,133 | ||||||||||||
LOSS ON EARLY EXTINGUISHMENT OF DEBT |
| | | 1,254 | ||||||||||||
LOSS ON DEBT MODIFICATION |
| | | 2,902 | ||||||||||||
Income (Loss) Before Benefit for Income Taxes |
2,352 | (41,148 | ) | 4,662 | (97,834 | ) | ||||||||||
BENEFIT FOR INCOME TAXES |
(1,624 | ) | (17,412 | ) | (1,825 | ) | (16,299 | ) | ||||||||
Net Income (Loss) |
$ | 3,976 | $ | (23,736 | ) | $ | 6,487 | $ | (81,535 | ) | ||||||
INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||
Basic |
$ | 0.14 | $ | (1.08 | ) | $ | 0.25 | $ | (3.74 | ) | ||||||
Diluted |
$ | 0.14 | $ | (1.08 | ) | $ | 0.24 | $ | (3.74 | ) | ||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||||||||||
Basic |
27,660 | 21,996 | 26,247 | 21,811 | ||||||||||||
Diluted |
28,210 | 21,996 | 26,994 | 21,811 | ||||||||||||
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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
(unaudited) | (unaudited) | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash |
$ | 42,591 | $ | 9,524 | ||||
Accounts receivable, net |
91,101 | 74,063 | ||||||
Inventories, net |
66,622 | 58,051 | ||||||
Other current assets |
11,109 | 26,781 | ||||||
Total current assets |
211,423 | 168,419 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net |
59,321 | 62,315 | ||||||
INTANGIBLE ASSETS, net |
3,848 | 4,087 | ||||||
OTHER ASSETS, net |
11,615 | 15,688 | ||||||
TOTAL ASSETS |
$ | 286,207 | $ | 250,509 | ||||
LIABILITIES AND STOCKHOLDERS DEFICIT |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 61,216 | $ | 59,657 | ||||
Accrued liabilities, other |
34,130 | 32,977 | ||||||
Total current liabilities |
95,346 | 92,634 | ||||||
LONG-TERM DEBT, net of current maturities |
164,987 | 162,644 | ||||||
PENSION AND OTHER POST-RETIREMENT BENEFITS |
23,343 | 26,915 | ||||||
OTHER LONG-TERM LIABILITIES |
2,643 | 6,081 | ||||||
Total liabilities |
286,319 | 288,274 | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
STOCKHOLDERS DEFICIT: |
||||||||
Common stock, $0.01 par value per share; 30,000,000 shares
authorized; 27,756,759 and 22,070,531 shares issued and outstanding |
280 | 221 | ||||||
Treasury stock purchased from employees; 285,208 shares |
(2,851 | ) | (1,090 | ) | ||||
Additional paid-in capital |
215,491 | 186,291 | ||||||
Retained loss |
(193,359 | ) | (199,846 | ) | ||||
Accumulated other comprehensive loss |
(19,673 | ) | (23,341 | ) | ||||
Total stockholders deficit |
(112 | ) | (37,765 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |
$ | 286,207 | $ | 250,509 | ||||
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