Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ACCURIDE CORP | acw12-8kq1.htm |
| EX-99.1 - EX-99.1 - ACCURIDE CORP | acw12-99d1.htm |
First Quarter 2012
Earnings Call
Earnings Call
1
Statements contained in this news release that are not purely historical are forward-
looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding Accuride’s expectations, hopes, beliefs and
intentions with respect to future results. Such statements are subject to the impact
on Accuride’s business and prospects generally of, among other factors, market
demand in the commercial vehicle industry, general economic, business and
financing conditions, labor relations, governmental action, competitor pricing activity,
expense volatility and other risks detailed from time to time in Accuride’s Securities
and Exchange Commission filings, including those described in Item 1A of
Accuride’s Annual Report on Form 10-K for the fiscal year ended December 31,
2011. Any forward-looking statement reflects only Accuride’s belief at the time the
statement is made. Although Accuride believes that the expectations reflected in
these forward-looking statements are reasonable, it cannot guarantee its future
results, levels of activity, performance or achievements. Except as required by law,
Accuride undertakes no obligation to update any forward-looking statements to
reflect events or developments after the date of this news release.
looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding Accuride’s expectations, hopes, beliefs and
intentions with respect to future results. Such statements are subject to the impact
on Accuride’s business and prospects generally of, among other factors, market
demand in the commercial vehicle industry, general economic, business and
financing conditions, labor relations, governmental action, competitor pricing activity,
expense volatility and other risks detailed from time to time in Accuride’s Securities
and Exchange Commission filings, including those described in Item 1A of
Accuride’s Annual Report on Form 10-K for the fiscal year ended December 31,
2011. Any forward-looking statement reflects only Accuride’s belief at the time the
statement is made. Although Accuride believes that the expectations reflected in
these forward-looking statements are reasonable, it cannot guarantee its future
results, levels of activity, performance or achievements. Except as required by law,
Accuride undertakes no obligation to update any forward-looking statements to
reflect events or developments after the date of this news release.
Forward Looking Statements
2
First Quarter 2012 Earnings
Ø Opening Comments
• CEO Update
• Industry Highlights
• Plan Execution
Ø Financial Information
• First Quarter Results
• 2012 Outlook
Ø Q&A
Ø Closing Comments
Rick Dauch
President & CEO
Greg Risch
Vice President & CFO
Rick Dauch
Greg Risch
Rick Dauch
3
4
1st Quarter Highlights
5
• STRONG performance across the Wheels & Brillion business units
• Gunite operationally stable & pricing activity complete
• CAPEX projects on schedule and on-budget
• Key analytical work in-process:
• Steel wheel capacity consolidation & capability studies (London & Mexico facilities)
• Gunite manufacturing footprint consolidation options (Hubs, Rotors, Spoke Wheels)
• Supply Chain COGS reduction initiatives underway
• Revised sales organization successfully rolled-out internally and to customers
• Imperial consolidation “off-track”:
• <$3.5M> impact in Q1- premium freight, OT/labor, customer charges
• Rebuilding leadership team: VP-GM, Controller & Plant Manager (TX)
• Aluminum demand > Accuride capacity (7-day operations)
• Softening Customer Demand:
• Gunite AM demand (offshore pricing impact, “Mild” winter conditions)
• 2Q12 reduction (10-20%) in Class 8 customer orders - Navistar, PACCAR
• Unfavorable anti-dumping ruling
6
Industry Fundamentals
ATA Monthly Truck Tonnage Index
Transcore Loadboard Data
7
Source: ACT Research, ATA, Transcore
Class 8 Overview
TL Carrier Database
NA Class 8 Backlog & BL/BU Ratio
8
Source: ACT Research
Class 5-7 & US Trailer Overview
US Housing Starts vs. Class 5-7 Build
US Trailer Backlog
9
Source: ACT Research, US Census Bureau
Source: ACT & FTR
Industry Builds
Class 8 Truck Production
Medium Duty Truck Production
Trailer Production
11
Strategic Objectives
Share
Price
Grow Globally
Create a Competitive
Cost Structure &
LEAN Operating Culture
Divest Non-Core Assets
Fix Core Business & Operations
Customer Centric, Technology Leadership
Ethical People, Selfless Leaders, Team Oriented
Ø #1-2 globally in wheel-end systems
Ø ROIC > 20% through a cycle
Ø >80% of revenue from CORE products
Ø Balanced geographical revenues:
• 40% North America
• 30% Asia
• 20% Europe
• 10% South America
Ø >25% of annual revenues from new &
evolutionary products
evolutionary products
Ø >95% retention of personnel
Ø Maximize ACW share price
Accuride Vision: Accuride will be the premier supplier of wheel-end system
solutions to the global commercial vehicle industry
solutions to the global commercial vehicle industry
Our Focus
12
Transformation & Execution
2012 - A Year of Execution
13
Top Priorities - Q2 2012
Project Timeline
Q3
Q4
Q1
Q2
Q3
Q4
2011
2012
On Schedule
&
On Budget
14
Aluminum Capacity Timeline
MC1 & MC2
Equipment
Arrival
Equipment
Arrival
Building
Renovation
Renovation
MC1 & MC2
Ramp-Up
Ramp-Up
MC1 & MC2
commercial
commercial
Machine Line
1 Equipment
Arrival
Arrival
Machine Line 1
capacity added
Machine Line
2 Equipment
Arrival
2 Equipment
Arrival
Machine
Line 1
Ramp-Up
Line 1
Ramp-Up
Machine Line 2
Ramp- Up
Machine Line 2
commercial
commercial
Acme
Polish
Installed
Polish
Installed
JAN
FEB
MAR
APR
MAY
JUN
AUG
SEP
OCT
NOV
JUL
15
MC3 & MC4
Equipment
Arrival
Equipment
Arrival
Dec
ON TRACK & ON BUDGET
Gunite CAPEX Timeline
Slack Line
Installation
Installation
Slack Line
Full
Production
Full
Production
Drum Machine
Line 1
Equipment
Arrival
Line 1
Equipment
Arrival
Drum
Machine
Line 1 Full
Production
Machine
Line 1 Full
Production
Site
Preparation
Preparation
Drum Machine
Line 2
Equipment
Arrival
Line 2
Equipment
Arrival
Drum Machine
Line 2
Line 2
Full Production
Drum Machine
Line 3
Equipment
Arrival
Line 3
Equipment
Arrival
Drum Machine
Line 3
Line 3
Full Production
16
Hub Machine
Line Equipment
Arrival
Line Equipment
Arrival
JAN
FEB
MAR
APR
MAY
JUN
AUG
SEP
OCT
NOV
JUL
Dec
ON TRACK & ON BUDGET
17
Summary Income Statement
18
Consolidated Results
Q1 Consolidated Revenue
Q1 Consolidated EBITDA
Consolidated Revenue Breakout
(2011 Full Year)
Business Segment
Customer
Market Segment
19
Wheels & Gunite Performance
Q1 Wheels Revenue
Q1 Wheels EBITDA (1)
(1) EBITDA before corporate allocations
Q1 Gunite Revenue
Q1 Gunite EBITDA (1)
(1) EBITDA before corporate allocations
20
Brillion & Imperial Segments
Q1 Brillion Revenue
Q1 Brillion EBITDA (1)
(1) EBITDA before corporate allocations
Q1 Imperial Revenue
Q1 Imperial EBITDA (1)
21
Trade Working Capital
Historical Working Capital Requirements
Q1 2012 Working Capital Breakout
Q1 2011 Working Capital Breakout
22
Free Cash Flow
23
Net Debt & Liquidity
24
25
Full Year Guidance
Class 8 270K to 280K
Class 5-7 165K to 175K
Trailer 230K to 250K
Net Sales $1,000 to $1,025
Adjusted EBITDA $100 to $105
EPS - Diluted $0.07 to $0.15
CAPEX $75
Depreciation & Amortization $55
Cash Interest Expense $31
Excess Pension Contributions $12
Trade Working Capital Source of Cash $13
Free Cash Flow $(5) to $0
26
Summary
• “Fix & Grow” Strategy being executed
• “Fix & Grow” Strategy being executed
• Experienced leadership team on-board
& performing
& performing
• Experienced leadership team on-board
& performing
& performing
• Resources focused on key priorities
• Resources focused on key priorities
• All major initiatives, except Imperial
results, on-schedule and on-budget
results, on-schedule and on-budget
• All major initiatives, except Imperial
results, on-schedule and on-budget
results, on-schedule and on-budget
• Long-term market trends remain
favorable heading into 2012 and
beyond despite short-term softness
favorable heading into 2012 and
beyond despite short-term softness
• Long-term market trends remain
favorable heading into 2012 and
beyond despite short-term softness
favorable heading into 2012 and
beyond despite short-term softness
• Adequate liquidity and initiatives to
improve it
improve it
• Adequate liquidity and initiatives to
improve it
improve it
• Strategic opportunities exist to “Fix &
Grow” the company
Grow” the company
• Strategic opportunities exist to “Fix &
Grow” the company
Grow” the company
• We are executing our plan!
• We are executing our plan!
27
28
29
Segment Revenue
30
Segment Operating Income
31
Segment Adjusted EBITDA
32
Sales & Adjusted EBITDA
33
Net Income to EBITDA Reconciliation
34
Trade Working Capital
35
Customer Receivables - Net
36
Inventories - Net
37
Accounts Payable
38