Commercial Vehicle Group Reports Fourth Quarter 2004 Results
NEW ALBANY, Ohio, Feb. 7, 2005 -- Commercial Vehicle Group, Inc. , today reported revenues of $101.3 million for the fourth quarter ended December 31, 2004, up 30 percent compared to $78.1 million in the prior-year period. Operating income for the fourth quarter was $12.5 million, a 67 percent increase, compared to $7.5 million last year. Net income for the quarter was $5.9 million, or $0.32 per diluted share, compared to $1.4 million, or $0.10 per diluted share, in the prior-year quarter.
"We are very pleased with our fourth quarter and full year results given the increase in production levels in the markets we serve and the steel cost impacts we have seen this year," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "I believe this to be indicative of our ability to capitalize on our strengths as a management team and as a company. Despite the impact of steel and petroleum-related pricing, we were able to hit our projected earnings through our continuous improvement efforts and clear focus on cost controls throughout the organization."
Revenue for the quarter compared to the prior year increased $23.2 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 fourth-quarter results is scheduled for Tuesday, February 8, 2005 at 9:00 a.m. EST. Interested participants may listen to the live conference call by dialing (412) 858-4600 and ask for the Commercial Vehicle Group conference call. A recording of this call also will be available until 1:00 a.m. EST on Wednesday, February 16 by dialing (412) 317-0088, passcode 365326.
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/ .
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. 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 of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) the Company's ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which CVG serves; (iv) increased competition in the heavy-duty truck market; and (v) the Company's failure to complete or successfully integrate additional strategic acquisitions. 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 - unaudited)
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
REVENUES $101,252 $78,081 $380,445 $287,579
COST OF SALES 81,074 63,774 309,696 237,884
Gross Profit 20,178 14,307 70,749 49,695
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 7,703 6,761 28,985 24,281
NONCASH OPTION ISSUANCE
CHARGE -- -- 10,125 --
AMORTIZATION EXPENSE 22 46 107 185
Operating Income 12,453 7,500 31,532 25,229
OTHER (INCOME) EXPENSE 1,286 2,073 (1,247) 3,230
INTEREST EXPENSE 1,306 2,150 7,244 9,796
LOSS ON EARLY
EXTINGUISHMENT
OF DEBT -- -- 1,605 2,972
Income before income
taxes 9,861 3,277 23,930 9,231
PROVISION FOR INCOME
TAXES 3,930 1,870 6,481 5,267
Net Income $5,931 $1,407 $17,449 $3,964
BASIC SHARES
OUTSTANDING 17,987 13,779 15,429 13,779
BASIC EARNINGS
PER SHARE $0.33 $0.10 $1.13 $0.29
DILUTED SHARES
OUTSTANDING 18,321 13,883 15,623 13,883
DILUTED EARNINGS
PER SHARE $0.32 $0.10 $1.12 $0.29
DEPRECIATION $1,718 $1,916 $7,459 $7,921
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31,
2004 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,396 $3,486
Accounts receivable - net 46,267 40,211
Inventories 36,936 29,667
Prepaid expenses and other current assets 6,081 3,754
Deferred income taxes 8,201 5,995
Total current assets 98,881 83,113
PROPERTY, PLANT AND EQUIPMENT - Net 32,965 33,492
GOODWILL 84,715 82,872
DEFERRED INCOME TAXES 5,901 9,011
OTHER ASSETS - Net 3,176 2,007
$225,638 $210,495
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $7,315 $15,231
Accounts payable 33,846 23,310
Accrued liabilities 18,424 16,356
Total current liabilities 59,585 54,897
LONG-TERM DEBT - Net 46,610 101,204
SUBORDINATED DEBT DUE TO RELATED PARTIES -- 11,039
OTHER LONG-TERM LIABILITIES 8,397 8,549
Total liabilities 114,592 175,689
STOCKHOLDERS' INVESTMENT:
Common stock, 180 138
Additional paid-in capital 123,660 76,803
Accumulated deficit (15,454) (43,028)
Stock subscriptions receivable (175) (430)
Accumulated other comprehensive income 2,835 1,323
Total stockholders' investment 111,046 34,806
$225,638 $210,495