Commercial Vehicle Group Reports First Quarter 2006 Results
NEW ALBANY, Ohio, April 26 -- Commercial Vehicle Group, Inc. , today reported revenues of $229.3 million for the first quarter ended March 31, 2006, up 50.5 percent compared to $152.4 million in the prior-year period. Operating income for the first quarter was $25.5 million, a 52.7 percent increase, compared to $16.7 million last year. Net income for the quarter was $13.4 million, or $0.62 per diluted share, compared to $10.9 million, or $0.59 per diluted share, in the prior-year quarter. Fully diluted shares outstanding for the quarter were 21.5 million compared to 18.3 million in the prior-year quarter.
"We are pleased with our operating improvements and financial performance achieved during the first quarter and look forward to the remainder of this year and our continued focus towards globalization, integration and operating effectiveness," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group.
Revenues for the quarter compared to the prior-year period increased by $76.9 million, due primarily to the 2005 acquisitions of Mayflower, Monona Wire and Cabarrus Plastics and an increase in the North American class 8 heavy duty truck market. The company increased earnings before interest, taxes, depreciation and amortization (EBITDA) to $29.0 million in the first quarter of 2006 from $19.4 million in the prior-year quarter. Included in the company's results for the quarter was a one time pre-tax curtailment gain of approximately $1.4 million as a result of the freezing of one of its salary pension programs during the quarter. The company recorded approximately $0.6 million of pre-tax expense, or $0.02 per diluted share, related to the adoption of SFAS123(R), Share-Based Payment, during the quarter. The company's net debt position at the end of the quarter was approximately $163.7 million.
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)
Three Months Ended
March 31,
2006 2005
(unaudited) (unaudited)
REVENUES $229,345 $152,415
COST OF REVENUES 190,611 126,163
Gross Profit 38,734 26,252
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 13,152 9,549
AMORTIZATION EXPENSE 105 24
Operating Income 25,477 16,679
OTHER (INCOME) EXPENSE 230 (2,881)
INTEREST EXPENSE 3,890 2,168
Income Before Income Taxes 21,357 17,392
PROVISION FOR INCOME TAXES 7,949 6,506
Net Income $13,408 $10,886
BASIC EARNINGS PER SHARE $0.64 $0.61
DILUTED EARNINGS PER SHARE $0.62 $0.59
Reconciliation to EBITDA:
Net Income $13,408 $10,886
Provision for Income Taxes 7,949 6,506
Other (Income) Expense 230 (2,881)
Interest Expense 3,890 2,168
Depreciation and Amortization 3,501 2,762
EBITDA (1) $28,978 $19,441
(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 measures of other companies.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
March 31, December 31,
2006 2005
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $26,468 $40,641
Accounts receivable, net 145,561 114,116
Inventories, net 70,786 69,053
Prepaid expenses and other current assets 6,777 4,724
Deferred income taxes 12,670 12,571
Total current assets 262,262 241,105
PROPERTY, PLANT AND EQUIPMENT, net 81,641 80,415
GOODWILL 125,800 125,607
INTANGIBLE AND OTHER ASSETS, net 96,287 96,756
TOTAL ASSETS $565,990 $543,883
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt $5,574 $5,309
Accounts payable 80,784 73,709
Accrued liabilities 44,846 42,983
Total current liabilities 131,204 122,001
LONG-TERM DEBT, net of current maturities 184,635 185,700
OTHER LONG-TERM LIABILITIES 33,089 34,105
Total liabilities 348,928 341,806
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' INVESTMENT:
Common stock, $0.01 par value per share;
30,000,000 shares authorized; 21,069,512
and 21,145,954 shares issued and
outstanding 211 211
Additional paid-in capital 170,758 169,252
Retained earnings 47,365 33,957
Accumulated other comprehensive loss (1,272) (1,343)
Total stockholders' investment 217,062 202,077
TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $565,990 $543,883