Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Cooper-Standard Holdings Inc. | d8k.htm |
 Cooper Standard 2Q 2011
Second Quarter 2011 Earnings Call
August 16, 2011
Exhibit 99.1 |
 cooperstandard
Introduction & Agenda
•
Introduction:
Glenn
Dong,
Treasurer
•
Executive
Overview:
Jim
McElya,
CEO
•
Business
Highlights:
Keith
Stephenson,
COO
•
Financial
Review
&
Updated
Guidance:
Allen
Campbell,
CFO
•
Questions & Answers
2 |
 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
This presentation includes forward-looking statements, reflecting current
analysis and expectations, based on what are believed to be reasonable
assumptions. Forward-looking statements may involve known and unknown risks,
uncertainties and other factors, which may cause actual results to differ
materially from those projected, stated or implied, depending on many
factors, including, without limitation: the inability to compare the company’s financial
condition
or
results
historically
due
to
fresh
start
accounting;
the
ability
to
maintain
contracts
and
suppliers
and
customer relationships; limitations on flexibility in operating our business
contained in our debt agreements; our dependence on the automotive industry;
availability and cost of raw materials; our exposure to natural disasters; our
dependence on certain major customers; competition in the automotive industry;
sovereign and other risks related to our conducting operations outside the
United States; the uncertainty of our ability to achieve expected cost
reduction savings; our exposure to product liability and warranty claims; labor
conditions; our vulnerability to changes
in
interest
rates;
our
ability
to
meet
customers’
needs
for
new
and
improved
products
in
a
timely
manner;
our ability to attract and retain key personnel; potential conflicts of interest
between our owners and us; our legal rights to our intellectual property
portfolio; our pension plans; and environmental and other regulations. There may
be other factors that may cause the company’s actual results to differ
materially from those projected in any forward-looking statement.
Accordingly, there can be no assurance that Cooper Standard will meet future results,
performance or achievements expressed or implied by such forward-looking
statements. This paragraph is included to provide a safe harbor for
forward-looking statements, which are not generally required to be publicly revised as
circumstances change and which Cooper Standard does not intend to update.
There may be other factors that may cause the company’s actual results to
differ materially from those projected in any 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 such
statements were made or to reflect the occurrence of unanticipated events.
|
 Jim
McElya Chairman & CEO
Executive Overview
2Q 2011 |
 cooperstandard
Executive Overview:
Second Quarter 2011 Review
•
Continued revenue and earnings growth:
–
2Q sales growth of 21%, up across all regions
–
2Q adjusted EBITDA margin of 11.9%
•
Resulting from:
–
Contributions from strategic acquisitions
–
Business wins on global platforms
–
Leveraging footprint in Brazil, India, and China
–
Continued focus on cost discipline
6 |
 cooperstandard
Executive Overview:
Second Quarter 2011 Review
•
Strategic progress:
–
French JV on track to deliver $150 million in
incremental sales
»
Added AVS and hose capabilities in Europe
»
Expanded footprint in India
–
Strengthening global coverage
»
Acquired 20% share in Nishikawa Thailand,
expanding global partnership
»
Announced expansion in Romania
7 |
 cooperstandard
8
Executive Overview: Industry Trends
•
Increased M&A activity
–
Ongoing consolidation of supply base
•
Raw material concerns
–
Escalating costs
–
Availability challenges
•
Demand for new technology
–
Fuel economy and emission standards
driving innovation
•
Impact of Japan production slowdown
–
Sales deferred |
 Business Highlights
2Q 2011
Keith Stephenson
Chief Operating Officer |
 cooperstandard
10
Business Highlights Second Quarter
•
Sales improvement due to recovering
volumes and mix
•
French joint venture expanding business with
European customers
•
Continued global footprint evolution
•
Strategically growing Fluid business |
 Footprint Evolution
Asia Pacific
Asia Pacific
Americas
Americas
Europe
Europe
Recent Footprint Expansion:
•
Craiova, Romania
•
Czestochowa, Poland
•
Mumbai, India
•
Nakhonratchasima, Thailand
•
Sao Paulo, Brazil |
 cooperstandard
12
Strategic Growth and Expansion of
Fluid Business
•
Benefitting from strategic focus on expanding
thermal management and emissions products
»
Supplying exhaust gas recirculation (EGR)
modules to Audi
»
Launched brushless water pumps to Renault,
Nissan and PSA
»
Won wastegate actuator business with VW
»
Localized fluid tubing facilities in China and India
|
 cooperstandard
Vehicle Launches 2 Quarter 2011
13
–
Audi –
W36 Platform
Emissions
–
Fisker -
Karma
Thermal Management
–
GM -
Meriva
Sealing
–
Peugeot 508
Sealing
–
Porsche –
911 Coupe, 911
Convertible, Boxster
Sealing, Fluid Handling
–
Land Rover -
Range Rover
Evoque
Fuel,
Brake
and
Emissions
Land Rover Evoque
Peugeot 508
Audi
GM Meriva
Fisker Karma
Note: Photos are representative and may not reflect final production models
Porsche 911
nd |
 Financial Overview
2Q 2011
Allen Campbell
Chief Financial Officer |
 cooperstandard
2Q and Year-to-Date 2011 Performance
15
$ Millions
Q2 2010
Q2 2011
Net Sales
$628.4
$760.5
Operating Profit
$ 36.6
$ 17.2
Gross Profit
$106.2
$ 123.7
YTD 2010
YTD 2011
$1,224.8
$1,449.2
$ 87.6
$ 68.6
$ 210.7
$ 244.5
Net Income
$281.2
$ 19.0
$ 284.6
$ 64.0
Adjusted EBITDA
(excluding qtr. one times)
$ 90.3
$ 147.6
$ 182.2
$ 73.8
% Margin
11.9%
12.1%
11.7%
12.6%
SGA
$ 62.1
$ 65.6
$ 115.2
$ 126.5 |
 cooperstandard
EBITDA and Adjusted EBITDA Reconciliation
$ USD Millions
2010
2011
Net Income
$284.6
$ 64.0
Provision for income tax expense
40.9
EBITDA
$418.0
$ 163.7
Restructuring*
6.3
23.9
Adjusted EBITDA
$ 147.6
$ 182.2
18.8
Net interest expense
48.0
20.6
Depreciation and amortization
44.5
60.3
Inventory Fair Value *
1.1
Stock compensation
5.3
EDITDA and Adjusted EBITDA are Non-GAAP measures. Reference comments on slide
24 *Net of Minority Interest impact in France JV
Reorganization / Fresh Start
--
Foreign Exchange
17.5
--
(303.4)
Net gain on partial sale of joint venture
8.1
0.7
--
(11.4)
6
Months
Ended
June
30
16
th |
 cooperstandard
Cash Flow 2Q 2011
Cash balance as of March 31
259.7
$
Cash generated
53.8
Cash balance as of June 30
313.5
$
($ in Millions)
Q2 - 2011
YTD - 2011
Cash from business
36.8
$
103.1
$
Pension funding
(2.9)
(28.5)
Changes in operating assets & liabilities
14.2
(48.1)
Cash from operations
48.1
$
26.5
$
Capital expenditures
(29.3)
(45.5)
Cash from operations less CAPEX
18.8
$
(19.0)
$
Acquisition of business, plus cash acquired
37.3
30.9
Proceeds from partial sale of joint venture
-
16.0
Proceeds from sale of assets
0.1
0.5
Financing activities
(2.0)
(6.2)
Foreign exchange/other
(0.4)
(3.2)
Net cash increase
53.8
$
19.0
$
17 |
 cooperstandard
18
Revised Guidance*
•
Sales: $2.8 billion -
$2.9 billion
•
Capital expenditures: $105 million -
$115 million
•
Cash restructuring: $50 million -
$60 million
•
Cash taxes: $25 million -
$30 million
* Forecast is based on Cooper Standard North American production
of 13.1 million, and Europe (including Russia)
production of 19.2 million. |
 cooperstandard
Non-GAAP Financial Measures
19
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. |
 Questions & Answers |
 cooperstandard
2Q 2011 Summary
•
Continued execution on our business plan
•
Investments filling strategic needs and
complementing organic growth
•
Effectively managing impact of raw material
increases
•
Further evolving organization to support global
customers
21 |