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 |
 Cooper Standard 1Q 2011
First Quarter 2011 Earnings Call
May 11, 2011
Exhibit 99.2 |
 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 the 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
company’s
emergence
from
bankruptcy
will
reduce
or eliminate certain tax benefits; the company’s emergence from bankruptcy may
adversely affect its operations going forward; the company’s dependence
on the automotive industry; the company’s dependence on certain major
customers;
the
company's
ability
to
generate
cash
to
service
its
indebtedness
and
dividend
obligations
of
preferred
shares; availability
and
cost
of
raw
materials;
the
uncertainty
of
the
company’s
ability
to
meet
significant increases
in demand; competition in the industry; sovereign and other risks related to the
company conducting operations outside the United
States;
natural
disasters;
the
uncertainty
of
the
company’s
ability
to
achieve
expected cost
reduction savings; the company’s exposure to product liability and warranty
claims; labor conditions; escalating pricing pressures
from
our
customers;
the
company’s
ability
to
meet
customers’
needs
for
new and improved
products in a
timely
manner;
potential
conflicts
of
interests
between
certain
shareholders
and the company; the
company’s legal rights to its intellectual property portfolio; the
company’s underfunded pension plans; the actual return on pension
assets; environmental and other regulations; the possibility that the company’s acquisition
strategy will not be successful; and the possibility of impairment charges relating
to goodwill and long-lived assets. There may be other factors that may
cause the company’s actual results to differ materially from the 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 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
1Q 2011 |
 cooperstandard
Executive Overview: First Quarter 2011 Review
•
Strong top and bottom-line results:
–
Sales growth of 15.5%, up across all regions
–
Adjusted EBITDA margin of 13.3%
•
Demonstrating the value of our:
–
Global and diversified customer base
–
Advantageous business model
–
Cost discipline
–
Focus on quality
6 |
 cooperstandard
Executive Overview: First Quarter 2011 Review
•
Strategic progress:
–
High quality wins consistent with global and diverse
customer positioning
–
Recent opportunistic transactions support revenue
growth strategies
»
FMEA / Barre-Thomas and Nishikawa: Global
platforms, emerging markets
»
USi: Technology
7 |
 Executive Overview:
FMEA
/
Barre-Thomas
Transaction
•
Material strategic and financial benefits, minimal cash
investment
•
51% ownership of joint venture with FMEA combining
our French body sealing operations with the operations
of Barre-Thomas
•
Strategic benefits:
–
Expands leadership position in body sealing
–
Establishes AVS and hose capability in Europe
8
All of Cooper Standard’s product lines are now highly
competitive for global platform awards.
cooperstandard |
 cooperstandard
9
Executive Overview: Industry Trends
•
Vehicle mix changes
•
Raw material costs increase
•
Increased demand for new technology
•
Strong demand for engineers
•
Japanese earthquake impact affecting
production schedules |
 Business Highlights
1Q 2011
Keith Stephenson
Chief Operating Officer |
 cooperstandard
11
Business Highlights 1
st
Quarter
•
Sales improvement due to recovering volumes and
favorable mix
•
Increased sales across all regions
•
Several important new business wins
•
Barre-Thomas deal helping to drive additional
business opportunities |
 Sales
By Region & Product Groups Q1 2011 = $688.8 Million
Unconsolidated JV’s –
HASCO and NISCO
Sales By Product As Reported
Sales By Product Unconsolidated JVs
Sales By Region With Unconsolidated JVs
Sales By Region As Reported
North
America
52%
Europe
35%
Asia
Pacific
8%
South
America
5%
Sealing
49%
Fuel, Brake &
Emissions
27%
Thermal
Management
10%
Specialty
Markets
4%
Anti-Vibration
Systems
10%
North
America
52%
Europe
31%
Asia
Pacific
12%
South
America
5%
Sealing
54%
Fuel, Brake
& Emissions
25%
Thermal
Management
9%
Specialty
Markets
3%
Anti-
Vibration
Systems
9%
cooperstandard
12 |
 cooperstandard
Cooper Standard’s Top 20 Platforms Q1 2011
13
#5 GM
LaCrosse
#2 Ford
Tribute/Escape
#20 Peugeot
308
#1 Ford
F-150
#7 GM
Silverado/Sierra
#9 Ford
Fusion / Edge
#13 Fiat
Linea/Punto/Stilo/Bravo
#8 Ford
Explorer
#14 VW
Passat
#3 GM
Tahoe/Yukon/
Escalade
#4 Ford
Fiesta/Fusion
#10 GM
Impala
#6 Ford
Mondeo/Freelander/
V50/V70
#11 Ford
Ecosport
#12 Dodge
200 / Challenger
#19 GM
Traverse/Acadia
#15 Ford
F-Series Super Duty
#18 GM
Cruze
#17 Chrysler
Doger Ram
#16 BMW
3 Series
Cooper
Standard
products are
consistently
on the top
selling
global
platforms
Broad customer mix across multiple vehicle segments |
 cooperstandard
Vehicle
Launches
1
st
Quarter
2011
14
–
Ford F-150
Thermal Management
–
Ford Focus
Sealing
–
GM Chevrolet Camaro
Convertible Sealing
–
Honda Civic
Sealing
–
Nissan Altima
Thermal Management
–
Nissan Leaf
Thermal Management
–
Nissan Commercial Van
Thermal Management
Sealing
–
Renault 3008
Thermal Management
–
Volkswagen Golf Cabriolet
Sealing
Renault 3008
VW Golf
Nissan Altima
Honda Civic
GM Chevrolet Camaro
Ford Focus
Note: Photos are representative and may not reflect final production models
|
 USi
Transaction •
Proprietary technology
•
Acquisition of USi, Inc., from Ikuyo Co. Ltd. of Japan
•
Unique coating for surface and a full-range of bright
trim sealing assemblies that are quickly gaining
popularity
Plan to extend technology and capabilities to
European and Brazil businesses
cooperstandard
15 |
 Financial Overview
1Q 2011
Allen Campbell
Chief Financial Officer |
 cooperstandard
17
Opportunistic Transactions: Immediate benefits
•
In addition to strategic benefits:
•
FMEA / Barre-Thomas: French supplier consolidation
•
Adds three European facilities and Indian JV
•
JV self-funds incremental restructuring expense
•
Minimal incremental cash investment
•
USi: Unique technology
•
Adds one facility
•
$6 to $8 million in 2011 sales
•
Nishikawa: Long-term partner, utilized asset exchanges
•
Will bring capability for Thailand production
•
Recorded a $11.4 million gain in Q1 |
 cooperstandard
Q1 2011 Performance
18
$ Millions
Net Sales
Operating Profit
Gross Profit
Q1 2011
Q1 2010
$ 688.8
$ 596.3
$ 51.4
$ 51.0
$ 120.8
$ 104.5
Net Income
$ 44.9
$ 3.4
Adjusted EBITDA
(excluding qtr. one times)
$ 91.9
$ 74.2
% Margin
13.3%
12.4%
SGA
$ 60.9
$ 53.1 |
 cooperstandard
EBITDA and Adjusted EBITDA Reconciliation
19
$ USD Millions
2010
2011
Net Income
$3.4
$ 44.9
Provision for income tax expense
7.3
EBITDA
$43.7
$ 96.0
Restructuring
0.3
4.6
Adjusted EBITDA
$ 74.2
$ 91.9
12.3
3 Months Ended March 31st
Net interest expense
11.8
9.9
Depreciation and amortization
21.2
28.9
Unrealized FX loss
23.3
Stock-based compensation
--
EDITDA and Adjusted EBITDA are Non-GAAP measures. Reference comments on slide
24 Joint venture adjustment
--
Reorganization costs
--
2.7
0.4
Net gain on partial sale of joint venture
0.2
-
Other
6.3
--
--
(11.4) |
 cooperstandard
Cash Flow 1Q 2011
20
Cash Balance as of December 31
294.5
$
Cash used
(34.8)
Cash Balance as of March 31
259.7
$
($ in Millions)
Q1 - 2011
Cash from business
66.3
$
Pension funding
(25.6)
Changes in operating assets & liabilities
(62.3)
Cash used in Operations
(21.6)
$
Capital Expenditures
(16.2)
Cash used in Operations less CAPEX
(37.8)
$
Proceeds from partial sale of joint venture
16.0
Acquisition of business, net of cash acquired
(6.4)
Proceeds from sale of assets
0.3
Financing activities
(4.2)
Foreign exchange/other
(2.7)
Net Cash used in Q1
(34.8)
$ |
 cooperstandard
21
Revised Guidance*
•
Sales: $2.7 billion -
$2.8 billion
•
Capital
expenditures:
$95
million
-
$105
million
•
Cash restructuring: $30 million -
$40 million
•
Cash taxes: $25 million -
$30 million
* Forecast is based on Cooper Standard estimates for North American production of
13.3. million, and Europe (including Russia) production of 19.2
million. |
 cooperstandard
Non-GAAP Financial Measures
22
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.
A table setting forth a reconciliation of EBITDA and Adjusted EBITDA to net income,
which is the most directly comparable financial measure in accordance with
U.S. GAAP, is found in the Company’s press release dated May 11, 2011
with respect to first
quarter
2011
earnings
results.
A
copy
of
the
press
release
is
available
on
the
Company’s website at cooperstandard.com. |
 Questions & Answers |
 Q1
2011 Summary •
Effectively executing on our business plan
•
New business: global platforms, emerging markets, premier
brands
•
Smart acquisitions fill strategic needs and complements organic
growth
•
Effectively managing impact of raw material pricing and sourcing
issues
•
All while maintaining quality
24
Ready to Thrive in the New Competitive Landscape
and Drive Shareholder Value
cooperstandard |