Commercial Vehicle Group Reports Third Quarter 2004 Results
NEW ALBANY, Ohio, Oct. 27, 2004 -- Commercial Vehicle Group, Inc. , today reported revenues of $98.7 million for the third quarter ended September 30, 2004, up 38 percent compared to $71.7 million in the prior-year period. Operating income for the third quarter was $11.3 million, a 55 percent increase, compared to $7.3 million last year. Net income for the quarter was $6.8 million, or $0.42 per diluted share, compared to $2.7 million, or $0.20 per diluted share, in the prior-year quarter.
"We are very pleased with our third quarter results and our ability to manage the volume ramp-up to date," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "Demands in both the Class 8 and construction markets continue to be solid and we expect them to continue through year end. Despite being impacted by approximately $1.4 million in unplanned steel price increases for the quarter, we were able to hit our projected earnings through continued operating improvements."
Revenue for the quarter compared to the prior year increased $27.0 million, due to the increase in North American production, new business awards and higher OEM sales in the European and Asian seating markets.
A conference call to review third-quarter results is scheduled for today at 11 a.m. ET. Interested participants may listen to the live conference call. A recording of this call also will be available until 12am CT on Thursday, November 4 by dialing (402) 220-1490, passcode 1494.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets. The company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry and floor systems, mirrors, wiper systems, controls and switches specifically designed for applications in commercial vehicle cabs. CVG is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about CVG and its products is available on the internet at http://www.cvgrp.com/ .
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
REVENUES $98,713 $71,707 $279,193 $209,498
COST OF SALES 80,484 58,626 228,622 174,110
Gross Profit 18,229 13,081 50,571 35,388
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 6,918 5,758 21,282 17,520
NONCASH OPTION ISSUANCE CHARGE -- -- 10,125 --
AMORTIZATION EXPENSE 22 46 85 139
Operating Income 11,289 7,277 19,079 17,729
OTHER (INCOME) EXPENSE 1,166 (1,307) (2,533) 1,157
INTEREST EXPENSE 1,599 2,216 5,938 7,646
LOSS ON EARLY EXTINGUISHMENT
OF DEBT 1,605 -- 1,605 2,972
Income before income taxes 6,919 6,368 14,069 5,954
PROVISION FOR INCOME TAXES 73 3,634 2,551 3,397
Net Income $6,846 $2,734 $11,518 $2,557
BASIC SHARES OUTSTANDING 16,200 13,779 14,576 13,779
BASIC EARNINGS PER SHARE $0.42 $0.20 $0.79 $0.19
DILUTED SHARES OUTSTANDING 16,434 13,883 14,724 13,883
DILUTED EARNINGS PER SHARE $0.42 $0.20 $0.78 $0.18
CAPITAL EXPENDITURES $1,711 $770 $3,901 $3,876
DEPRECIATION $1,712 $1,935 $5,741 $6,005
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, Dec. 31,
2004 2003
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $17,750 $3,486
Accounts receivable - net 52,810 40,211
Inventories 30,246 29,667
Prepaid expenses and other current assets 6,242 3,754
Deferred income taxes 4,156 5,995
Total current assets 111,204 83,113
PROPERTY, PLANT AND EQUIPMENT - Net 31,630 33,492
GOODWILL 83,114 82,872
DEFERRED INCOME TAXES 13,842 9,011
OTHER ASSETS - Net 4,380 2,007
$244,170 $210,495
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $7,000 $15,231
Accounts payable 32,531 23,310
Accrued liabilities 22,254 16,356
Total current liabilities 61,785 54,897
LONG-TERM DEBT - Net 71,344 101,204
SUBORDINATED DEBT DUE TO RELATED PARTIES -- 11,039
OTHER LONG-TERM LIABILITIES 8,022 8,549
Total liabilities 141,151 175,689
STOCKHOLDERS' INVESTMENT:
Common stock 180 138
Additional paid-in capital 123,698 76,803
Accumulated deficit (21,385) (43,028)
Stock subscriptions receivable (187) (430)
Accumulated other comprehensive income 713 1,323
Total stockholders' investment 103,019 34,806
$244,170 $210,495