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8-K - FORM 8-K - Commercial Vehicle Group, Inc. | c64332e8vk.htm |
Exhibit 99.1
CONTACT: | John Hyre, Investor Relations Commercial Vehicle Group, Inc. (614) 289-5157 |
FOR IMMEDIATE RELEASE
COMMERCIAL VEHICLE GROUP ANNOUNCES FIRST QUARTER
2011 RESULTS
2011 RESULTS
NEW ALBANY, OHIO, April 26, 2011 Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported
revenues of $182.5 million for the first quarter of 2011, up 24.7% compared to $146.4 million for
the prior-year period. Operating income for the first quarter was $8.1 million compared to $3.6
million for the first quarter of 2010. Net income was $3.3 million for the first quarter, or $0.12
per diluted share, compared to $0.7 million, or $0.03 per diluted share in the prior-year quarter.
Diluted shares outstanding for the quarter were 28.2 million compared to 23.8 million for the
prior-year period.
We are very pleased with our first quarter results as we continue to see positive trends through
market improvements and the impact of new business, said Mervin Dunn, President and Chief
Executive Officer of Commercial Vehicle Group. This past quarter marks the highest revenue levels
we have achieved since the third quarter of 2008 and the highest operating income we have achieved
since the first quarter of 2007 when excluding non-operating items such as restructuring charges,
asset impairments and gains on the sale of assets. As we move forward, our focus remains on
long-term growth initiatives and bottom line improvements, added Mr. Dunn.
Included in the Companys results for the first quarter of 2011 are revenues of approximately $5.6
million and operating income of approximately $0.1 million relating to the acquisition of Bostrom
Seating on January 28, 2011. Also included in the first quarter results are acquisition costs
relating to Bostrom Seating of approximately $0.4 million, the net impact of certain raw material
increases of approximately $0.3 million and costs related to Mexico expansion of approximately $0.3
million.
The Company did not have any outstanding borrowings under its asset-based revolver at March 31,
2011 and, as a result, was not subject to any financial maintenance covenants. 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 increase in our end
markets and improved revenues, despite the heavy decline in our military end market sales from the
same period last year said Chad M. Utrup, Chief Financial Officer of Commercial Vehicle Group.
Sequentially, our results continue to show positive trends both on the revenue side as well as on
an operating performance level. Excluding the short-term costs associated with our Mexico
expansion, Bostrom acquisition, restructuring actions and certain raw material increases, our
operating performance was in line with our expectations, added Mr. Utrup.
(more)
A conference call to discuss the contents of this press release is scheduled for Wednesday, April
27, 2011, at 10:00 a.m. ET. To participate, dial (888) 680-0860 using access code 40872422. You
can pre-register for the conference call and receive your pin number at:
https://www.theconferencingservice.com/prereg/key.process?key=PVYG934KQ
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 47630612.
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, the Companys growth initiatives and bottom line improvements, 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;
(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, 2010. 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 | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
(unaudited) | (unaudited) | |||||||
REVENUES |
$ | 182,509 | $ | 146,407 | ||||
COST OF REVENUES |
157,793 | 129,515 | ||||||
Gross Profit |
24,716 | 16,892 | ||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
16,194 | 13,211 | ||||||
AMORTIZATION EXPENSE |
96 | 60 | ||||||
RESTRUCTURING COSTS |
310 | | ||||||
Operating Income |
8,116 | 3,621 | ||||||
OTHER EXPENSE (INCOME) |
6 | (1,459 | ) | |||||
INTEREST EXPENSE |
3,981 | 4,514 | ||||||
Income Before Provision (Benefit) for Income Taxes |
4,129 | 566 | ||||||
PROVISION (BENEFIT) FOR INCOME TAXES |
852 | (110 | ) | |||||
Net Income |
$ | 3,277 | $ | 676 | ||||
INCOME PER COMMON SHARE: |
||||||||
Basic |
$ | 0.12 | $ | 0.03 | ||||
Diluted |
$ | 0.12 | $ | 0.03 | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||
Basic |
27,765 | 22,898 | ||||||
Diluted |
28,186 | 23,834 | ||||||
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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)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
(unaudited) | (unaudited) | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash |
$ | 18,492 | $ | 42,591 | ||||
Accounts receivable, net |
121,016 | 91,101 | ||||||
Inventories, net |
69,929 | 66,622 | ||||||
Other current assets |
14,489 | 11,109 | ||||||
Total current assets |
223,926 | 211,423 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net |
64,703 | 59,321 | ||||||
INTANGIBLE ASSETS, net |
6,960 | 3,848 | ||||||
OTHER ASSETS, net |
11,016 | 11,615 | ||||||
TOTAL ASSETS |
$ | 306,605 | $ | 286,207 | ||||
LIABILITIES AND STOCKHOLDERS INVESTMENT (DEFICIT) |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 78,549 | $ | 61,216 | ||||
Accrued liabilities |
31,972 | 34,130 | ||||||
Total current liabilities |
110,521 | 95,346 | ||||||
LONG-TERM DEBT |
164,718 | 164,987 | ||||||
PENSION AND OTHER POST-RETIREMENT BENEFITS |
22,802 | 23,343 | ||||||
OTHER LONG-TERM LIABILITIES |
2,771 | 2,643 | ||||||
Total liabilities |
300,812 | 286,319 | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
STOCKHOLDERS INVESTMENT (DEFICIT): |
||||||||
Common stock, $0.01 par value per share; 30,000,000 shares authorized;
27,766,024 and 27,756,759 shares issued and outstanding |
280 | 280 | ||||||
Treasury stock purchased from employees; 285,208 shares |
(2,851 | ) | (2,851 | ) | ||||
Additional paid-in capital |
216,333 | 215,491 | ||||||
Retained loss |
(190,082 | ) | (193,359 | ) | ||||
Accumulated other comprehensive loss |
(17,887 | ) | (19,673 | ) | ||||
Total stockholders investment (deficit) |
5,793 | (112 | ) | |||||
TOTAL LIABILITIES AND STOCKHOLDERS INVESTMENT (DEFICIT) |
$ | 306,605 | $ | 286,207 | ||||
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