Commercial Vehicle Group Reports Second-Quarter 2005 Results
NEW ALBANY, Ohio, July 26 -- Commercial Vehicle Group, Inc. , today reported revenues of $196.1 million for the second quarter ended June 30, 2005, up 107% compared to $94.5 million in the prior-year period. Operating income for the second quarter was $25.8 million, a significant increase over $(0.2) million reported for the same period last year. Net income for the quarter was $14.2 million, or $0.78 per diluted share, compared to $(0.9) million, or $(0.06) per diluted share, in the prior- year quarter. Results for second quarter 2004 include the effects of a $10.1 million non-cash option issuance charge. As a result of the company's August 2004 initial public offering, fully diluted shares outstanding for the quarter were 18.3 million compared to 13.9 million in the prior-year quarter.
Results for the second quarter included the effects of the company's acquisition of Mayflower Vehicle Systems' North American Commercial Vehicle Operations and the effects of the company's acquisition of Monona Wire Corporation from June 3, 2005 forward. Results for the second quarter also included the mark-to-market of CVG's foreign exchange contracts, which positively impacted the quarter on a pre-tax basis by $0.4 million compared to $0.4 million in the prior-year quarter.
"We are extremely pleased with our second quarter results, which included the acquisition of Monona Wire Corporation and certainly look forward to having this company as part of our on-going team," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "Our primary markets remain strong and we will continue to capitalize on these favorable trends. Despite the impact of steel and petroleum-related raw material costs and additional costs related to certain long-term growth projects, we were able to exceed our earnings estimates while maintaining our focus on our growth strategy."
Revenues for the quarter compared to the prior-year period increased by $101.6 million, due primarily to the acquisitions of Mayflower and MWC, a 43% increase in North American OEM truck production volumes over the prior-year quarter and higher OEM sales in the European and Asian seating markets. Steel and petroleum prices had a negative impact of approximately $1.5 million during the quarter; however the company increased earnings before interest, taxes, depreciation and amortization (EBITDA) from $12.0 million in the prior- year quarter, excluding the impact of the $10.1 million non-cash option issuance charge, to $29.0 million in the second quarter of 2005. CVG's net debt position at the end of the quarter was approximately $202 million.
The Company reported revenues of $348.5 million for the six months ended June 30, 2005, up 93% compared to $180.5 million in the prior-year period. Operating income for the six-month period was $42.5 million compared to $7.8 million last year. Net income for the six month period was $25.1 million, or $1.37 per diluted share, compared to $4.7 million, or $0.34 per diluted share, in the prior six month period. Results for the six months ended June 30, 2004 include the effects of a $10.1 million non-cash option issuance charge.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and 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 Six Months Ended
June 30, June 30,
2005 2004 2005 2004
REVENUES $196,091 $94,491 $348,506 $180,481
COST OF SALES 159,949 77,636 286,112 148,139
Gross Profit 36,142 16,855 62,394 32,342
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 10,172 6,867 19,721 14,364
NONCASH OPTION
ISSUANCE CHARGE -- 10,125 -- 10,125
AMORTIZATION EXPENSE 140 27 164 63
Operating Income
(Loss) 25,830 (164) 42,509 7,790
OTHER (INCOME) (392) (429) (3,272) (3,699)
INTEREST EXPENSE 3,315 2,071 5,482 4,339
Income (Loss) Before
Income Taxes 22,907 (1,806) 40,299 7,150
(BENEFIT) PROVISION
FOR INCOME TAXES 8,722 (929) 15,228 2,478
NET INCOME (LOSS) $14,185 $(877) $25,071 $4,672
BASIC EARNINGS (LOSS)
PER SHARE $0.79 $(0.06) $1.39 $0.34
DILUTED EARNINGS (LOSS)
PER SHARE $0.78 $(0.06) $1.37 $0.34
Reconciliation to
EBITDA:
Net Income (Loss) $14,185 $(877) $25,071 $4,672
(Benefit) Provision
for Income Taxes 8,722 (929) 15,228 2,478
Other (Income) (392) (429) (3,272) (3,699)
Interest Expense 3,315 2,071 5,482 4,339
Depreciation and
Amortization 3,138 2,033 5,900 4,093
Noncash Option
Issuance Charge -- 10,125 -- 10,125
EBITDA(1) $28,968 $11,994 $48,409 $22,008
(1) EBITDA is defined as income before taxes, interest expense,
depreciation, amortization and certain other non-recurring items.
EBITDA is presented because the company believes that it is widely
accepted that EBITDA provides useful information to management and
investors regarding its operating results. EBITDA should not be
considered as an alternative to, or more meaningful than, amounts
determined in accordance with generally accepted accounting
principles. EBITDA is not calculated identically by all companies,
and therefore, the presentation herein may not be comparable to
similarly titled measured of other companies.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands - unaudited)
June 30, December 31,
2005 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $3,939 $1,396
Accounts receivable - Net 121,368 46,267
Inventories 58,813 36,936
Prepaid expenses and other current assets 5,003 6,081
Deferred income taxes 7,917 8,201
Total current assets 197,040 98,881
PROPERTY, PLANT AND EQUIPMENT - Net 69,429 32,965
GOODWILL 187,231 84,715
DEFERRED INCOME TAXES 7,029 5,901
OTHER ASSETS - Net 15,990 3,176
$476,719 $225,638
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $16,918 $4,884
Accounts payable 73,307 33,846
Accrued liabilities 39,908 18,424
Total current liabilities 130,133 57,154
LONG-TERM DEBT - Net 189,331 49,041
OTHER LONG-TERM LIABILITIES 24,520 8,397
Total liabilities 213,851 114,592
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' INVESTMENT
Common stock, $0.01 par value per share;
30,000,000 shares authorized;
17,987,497 shares outstanding 180 180
Additional paid-in capital 123,660 123,660
Accumulated deficit 9,617 (15,454)
Stock subscriptions receivable (152) (175)
Accumulated other comprehensive income (570) 2,835
Total stockholders' investment 132,735 111,046
$476,719 $225,638