Commercial Vehicle Group Announces Third Quarter 2012 Results

NEW ALBANY, Ohio, Oct. 31, 2012 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $204.8 million for the third quarter of 2012, a decrease of approximately 5.6% compared to $216.9 million for the prior-year period.  Operating income for the third quarter of 2012 was $8.9 million compared to $13.5 million for the third quarter of 2011.  Net income was $30.5 million for the third quarter, or $1.07 per diluted share, compared to $7.4 million, or $0.26 per diluted share in the prior-year quarter.  Included in the third quarter of 2012 results is an income tax benefit of approximately $27.0 million primarily related to the release of the Company's domestic deferred tax asset valuation allowance.             

"The decline in our revenues for this quarter compared to the run rates we experienced in the first half of the year is evidence of the softening we had earlier predicted in some of our key end markets," said Mervin Dunn, President and CEO of Commercial Vehicle Group.  "Despite some anticipated near-term softness, we still believe our Company is well positioned and our strategy is sound for the long-term.  We will continue to stay focused on our strategic growth initiatives as we do not expect near-term fluctuating market conditions to prohibit CVG from achieving our longer-term strategic objectives," added Mr. Dunn.

The Company did not have any outstanding borrowings under its asset-based revolver at September 30, 2012 and, as a result, was not subject to any financial maintenance covenants.  In addition, the Company had approximately $99.5 million of cash on its balance sheet at September 30, 2012 with an additional $37.0 million of availability under its asset-based revolver for total liquidity availability of approximately $136.5 million

"With the recent trends of market softening, we will be focused on utilizing our variable cost structure and adjusting our operations and cost structure accordingly without compromising the foundation we've established for achieving our long term growth objectives," said Chad Utrup, Chief Financial Officer of Commercial Vehicle Group.  "We did record a large tax benefit during the quarter related to the reversal of certain domestic deferred tax valuation allowances.  As we've indicated in the past, the valuation allowances may be adjusted accordingly from time to time as our deferred tax assets are deemed usable in the future. We do have additional valuation allowances in foreign jurisdictions which we will continue to evaluate as we move forward," added Mr. Utrup.

A conference call to discuss the contents of this press release is scheduled for Thursday, November 1, 2012, at 10:00 a.m. ET.  To participate, dial (888) 713-4211 using access code 36308119.  You can pre-register for the conference call and receive your pin number at: 

https://www.theconferencingservice.com/prereg/key.process?key=PYDLGJ7HP

This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Group's 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 54925146. 

About Commercial Vehicle Group, Inc.

Commercial Vehicle Group, Inc. is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction, military, bus and agriculture markets and the specialty transportation markets.  Our products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles.  The Company is headquartered in New Albany, OH with operations throughout North America, Europe, Asia and Australia.  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 fluctuations in our end markets, achievement of long-term growth objectives, growth and margin enhancement initiatives, valuation allowances in foreign jurisdictions and the Company's 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 Company's 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 Company's failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Company's ability to comply with the financial covenants in its revolving credit facility; and (x) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2011.  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.

 

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)



Three Months Ended September 30,


Nine Months Ended September 30,


2012


2011


2012


2011


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)






(In thousands, except per share amounts)


(In thousands, except per share amounts)

Revenues

$            204,824


$            216,909


$            684,559


$            606,194









Cost of Revenues

178,419


187,087


583,920


523,980









     Gross Profit

26,405


29,822


100,639


82,214









Selling, General and Administrative Expenses

17,445


16,210


53,989


48,427









Amortization Expense

91


65


275


255









Restructuring Costs

-


-


-


542









     Operating Income

8,869


13,547


46,375


32,990









Interest and Other Expense

5,342


5,332


15,854


14,381









Loss on Early Extinguishment of Debt

-


-


-


7,448









Income Before (Benefit) Provision for Income Taxes 

3,527


8,215


30,521


11,161









(Benefit) Provision for Income Taxes

(26,946)


839


(25,097)


2,677









Net Income

30,473


7,376


55,618


8,484









Less:  Non-controlling interest in subsidiary's loss

(28)


-


(43)


-









Net Income Attributable to CVG Stockholders

$              30,501


$                7,376


$              55,661


$                8,484









Earnings per Common Share:








Basic

$                  1.08


$                  0.27


$                  1.98


$                  0.31

Diluted

$                  1.07


$                  0.26


$                  1.96


$                  0.30









Weighted Average Shares Outstanding:








Basic

28,172


27,768


28,171


27,767

Diluted

28,461


28,152


28,410


28,187

 

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)



September 30,


December 31,


2012


2011


(Unaudited)


(Unaudited)




(In thousands, except share and per share

amounts)

Assets

Current Assets:




Cash

$             99,543


$             87,955

Accounts receivable, net of reserve for doubtful accounts of $3,105 and $3,867,

respectively

131,155


130,297

Inventories

90,684


79,423

Deferred income taxes

8,843


1,837

Other current assets

8,268


7,470

Total current assets 

338,493


306,982

Property, plant and equipment, net of accumulated depreciation of $116,795 and

$109,403, respectively

81,128


76,672

Intangible assets, net

7,065


7,315

Deferred income taxes

21,401


-

Other assets, net

14,988


15,915

Total assets

$           463,075


$           406,884





Liabilities and Stockholders' Equity





Current Liabilities:




Accounts payable 

$             72,378


$             74,239

Accrued liabilities

38,335


38,960

Total current liabilities 

110,713


113,199

Long-term debt

250,000


250,000

Pension and other post-retirement benefits

26,166


28,013

Other long-term liabilities

2,126


2,897

Total liabilities 

389,005


394,109

Stockholders' Equity:




Preferred stock, $0.01 par value; 5,000,000 shares authorized, no shares issued

and outstanding; common stock, $0.01 par value per share; 60,000,000 shares

authorized; 28,174,241 and 28,170,929 shares issued and outstanding,

respectively

285


285

Treasury stock purchased from employees; 428,425 and 426,870 shares,

respectively

(4,072)


(4,059)

Additional paid-in capital 

222,608


219,112

Retained loss

(119,093)


(174,754)

Accumulated other comprehensive loss

(25,709)


(27,818)

Total CVG stockholders' equity

74,019


12,766

Non-controlling interest 

51


9

Total stockholders' equity

74,070


12,775

Total liabilities and stockholders' equity

$           463,075


$           406,884

 

SOURCE Commercial Vehicle Group, Inc.

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