Commercial Vehicle Group Reports Fourth Quarter 2005 Results
NEW ALBANY, Ohio, Feb. 1, 2006 -- Commercial Vehicle Group, Inc. , today reported revenues of $200.1 million for the fourth quarter ended December 31, 2005, up 98 percent compared to $101.3 million in the prior-year period. Operating income for the fourth quarter was $22.5 million, an 80 percent increase, compared to $12.5 million last year. Net income for the quarter was $12.4 million, or $0.58 per diluted share, compared to $5.9 million, or $0.32 per diluted share, in the prior-year quarter. As a result of the company's July 2005 stock offering, fully diluted shares outstanding for the quarter were 21.3 million compared to 18.3 million in the prior-year quarter.
"We are extremely pleased with our fourth quarter and full year results for 2005. We have seen significant growth and development over the past four quarters as a result of the outstanding effort of our management team and associates," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "More importantly, all the measures taken and the hard work of our people has laid the foundation for continued growth and expansion in each of our markets."
Revenues for the quarter compared to the prior-year period increased by $98.9 million, due primarily to the acquisitions of Mayflower, Monona and Cabarrus, a 5 percent increase in the North American OEM truck production over the prior-year quarter and higher sales in the European and Asian seating markets. The company increased earnings before interest, taxes, depreciation and amortization (EBITDA) from $14.2 million in the prior-year quarter to $25.6 million in the fourth quarter of 2005. The company's net debt position at the end of the quarter was approximately $150 million.
The company reported revenues of $754.5 million for the 12 months ended December 31, 2005, up 98 percent compared to $380.4 million in the prior-year period. Operating income for the 12 month period was $89.5 million compared to $31.5 million last year. Net income for the 12 month period was $49.4 million, or $2.51 per diluted share, compared to $17.5 million, or $1.12 per diluted share, in 2004. Results for the 12 months ended December 31, 2004 include the effects of a $10.1 million non-cash option issuance charge. As a result of the company's July 2005 stock offering, the weighted average diluted shares outstanding for the year were 19.7 million compared to 15.6 million in the prior-year period.
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, molded products 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 Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
REVENUES $200,116 $101,252 $754,481 $380,445
COST OF SALES 164,555 81,074 620,031 309,696
Gross Profit 35,561 20,178 134,450 70,749
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 12,967 7,703 44,564 28,985
NONCASH OPTION
ISSUANCE CHARGE -- -- -- 10,125
AMORTIZATION EXPENSE 141 22 358 107
Operating Income 22,453 12,453 89,528 31,532
OTHER (INCOME) EXPENSE (143) 1,286 (3,741) (1,247)
INTEREST EXPENSE 3,735 1,306 13,195 7,244
LOSS ON EARLY
EXTINGUISHMENT OF DEBT -- -- 1,525 1,605
Income Before
Income Taxes 18,861 9,861 78,549 23,930
PROVISION FOR
INCOME TAXES 6,419 3,930 29,138 6,481
Net Income $12,442 $5,931 $49,411 $17,449
BASIC EARNINGS
PER SHARE $0.59 $0.33 $2.54 $1.13
DILUTED EARNINGS
PER SHARE $0.58 $0.32 $2.51 $1.12
Reconciliation to
EBITDA:
Net Income $12,442 $5,931 $49,411 $17,449
Provision for
Income Taxes 6,419 3,930 29,138 6,481
Other (Income) Expense (143) 1,286 (3,741) (1,247)
Interest Expense 3,735 1,306 13,195 7,244
Loss on Early
Extinguishment
of Debt -- -- 1,525 1,605
Depreciation and
Amortization 3,138 1,740 12,064 7,566
Noncash Option
Issuance Charge -- -- -- 10,125
EBITDA(1) $25,591 $14,193 $101,592 $49,223
(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, except per share amounts)
December 31, December 31,
2005 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $40,641 $1,396
Accounts receivable - Net 114,116 46,267
Inventories 69,053 36,936
Prepaid expenses and other current assets 4,724 6,081
Deferred income taxes 12,571 8,201
Total current assets 241,105 98,881
PROPERTY, PLANT AND EQUIPMENT - Net 80,415 32,965
GOODWILL 125,607 84,715
DEFERRED INCOME TAXES -- 5,901
INTANGIBLE AND OTHER ASSETS - Net 96,756 3,176
$543,883 $225,638
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $5,309 $4,884
Accounts payable 73,709 33,846
Accrued liabilities 42,983 18,424
Total current liabilities 122,001 57,154
LONG-TERM DEBT - Net 185,700 49,041
OTHER LONG-TERM LIABILITIES 34,105 8,397
Total liabilities 341,806 114,592
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' INVESTMENT:
Common stock, $0.01 par value
per share; 30,000,000 shares authorized;
21,146,154 and 17,987,497 shares outstanding 211 180
Additional paid-in capital 169,252 123,660
Retained earnings (accumulated deficit) 33,957 (15,454)
Stock subscriptions receivable -- (175)
Accumulated other comprehensive (loss) income (1,343) 2,835
Total stockholders' investment 202,077 111,046
$543,883 $225,638