SYS-CON MEDIA Authors: Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

News Feed Item

Commercial Vehicle Group Announces Fourth Quarter 2012 Results

NEW ALBANY, Ohio, Feb. 14, 2013 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $173.4 million for the fourth quarter of 2012, down 23.2% compared to $225.8 million for the prior-year period.  Operating loss for the fourth quarter was $2.3 million compared to operating income of $16.1 million for the fourth quarter of 2011.  Net loss was $5.6 million for the fourth quarter, or ($0.20) per diluted share, compared to net income of $10.1 million, or $0.36 per diluted share in the prior-year quarter.  Diluted shares outstanding were 28.4 million for the quarter compared to 28.2 million for the prior-year period. 

"Our fourth quarter revenues declined compared to both the prior-year quarter and the third quarter of 2012 reflecting both lower North American truck production levels and construction equipment build rates.  Production in the North American Class 8 market declined approximately 23% compared to the fourth quarter of 2011 and our construction market revenues declined approximately 29% for this same period.  We also saw a decline in orders for both our military and aftermarket products, which further impacted our results," said Mervin Dunn, President and CEO of Commercial Vehicle Group.  "We believe the weak market conditions we experienced in the third and fourth quarters of 2012 are short-term.  As a result, we responded appropriately by reducing labor and other costs to minimize the impact of lower volumes while, at the same time, not making major cut backs in areas that affect our five-year strategic plan of growth and diversification.  We must not sacrifice our long-term momentum for short-term success," added Mr. Dunn. 

Revenues for the year ended December 31, 2012 were $857.9 million, an increase of $25.9 million, or 3.1%, compared to the prior-year period, due primarily to the overall increase in the North American Class 8 market.  Operating income for the year ended December 31, 2012 was $44.1 million compared to $49.1 million for the prior year.  Net income for the year ended December 31, 2012 was $50.1 million, or $1.76 per diluted share, compared to $18.6 million, or $0.66 per diluted share, in the prior year, primarily as a result of the income tax benefit of $27.0 million recorded for the year ended December 31, 2012.   This tax benefit was driven primarily by a non-recurring release of the Company's domestic deferred tax asset valuation allowance in the third quarter of 2012.

"Sequentially, compared to the third quarter of 2012, our results were negatively impacted by approximately $1.0 million related to foreign exchange expense primarily as a result of the decline in the Japanese Yen, approximately $0.3 million of incremental start-up costs related to our Ukraine operation and approximately $0.5 million incremental costs related to the two acquisitions we announced in the fourth quarter.  While we believe these costs are short-term in nature and unique to the quarter, they nonetheless impacted our fourth quarter results," stated Chad M. Utrup, Chief Financial Officer for Commercial Vehicle Group. 

The Company did not have any outstanding borrowings under its asset-based revolver at December 31, 2012 and, as a result, was not subject to any financial maintenance covenants.  In addition, the Company had approximately $68.4 million of cash on its balance sheet at December 31, 2012 with an additional $37.5 million of availability under its asset-based revolver for total liquidity of approximately $105.9 million.  The Company does not expect to trigger the requirement to comply with financial maintenance covenants in 2013. 

A conference call to discuss the contents of this press release is scheduled for Thursday, February 14, 2013, at 10:00 a.m. ET.  To participate, dial (888) 713-4217 using access code 46855216.  You can pre-register for the conference call and receive your pin number at: 

https://www.theconferencingservice.com/prereg/key.process?key=P3EMUK8KH

This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Group's Web site at www.cvgrp.com.

A replay of the conference call will be available for a period of two weeks following the call.  To access the replay, dial (888) 286-8010 using access code 14936214. 

About Commercial Vehicle Group, Inc.

Commercial Vehicle Group, Inc. is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction, military, bus and agriculture markets and the specialty transportation markets.  Our products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles.  The Company is headquartered in New Albany, OH with operations throughout North America, Europe, Asia and Australia.  Information about the Company and its products is available on the internet at 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.  In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to weak market conditions, Class 8 production levels, construction build rates, utilization of inventory in the construction market, decline in our end markets, our long-term strategy for growth and profitability, cost reduction efforts and the Company's financial position or other financial information.  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 on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances.  Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck market; (v) the Company's failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Company's ability to comply with the financial covenants in its revolving credit facility; and (x) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2011.  There can be no assurance that statements made in this press release relating to future events will be achieved.  The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.  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)

 



Three Months Ended December 31,


Twelve Months Ended December 31,


2012


2011


2012


2011


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)










(In thousands, except per share amounts)


(In thousands, except per share amounts)





Revenues

$                 173,357


$                 225,828


$                 857,916


$                 832,022









Cost of Revenues

157,458


192,450


741,378


716,430









     Gross Profit

15,899


33,378


116,538


115,592









Selling, General and Administrative Expenses

17,960


17,094


71,949


65,521









Amortization Expense

218


91


493


346









Restructuring Costs

-


127


-


669









     Operating (Loss) Income

(2,279)


16,066


44,096


49,056









Interest and Other Expense

5,160


5,542


21,014


19,923









Loss on Early Extinguishment of Debt

-


-


-


7,448









(Loss) Income Before (Benefit) Provision for Income Taxes 

(7,439)


10,524


23,082


21,685









(Benefit) Provision for Income Taxes

(1,851)


418


(26,948)


3,095









Net (Loss) Income

(5,588)


10,106


50,030


18,590









Less:  Non-controlling interest in subsidiary's loss

(4)


(15)


(47)


(15)









Net (Loss) Income Attributable to CVG Stockholders

$                   (5,584)


$                   10,121


$                   50,077


$                   18,605









(Loss) Earnings per Common Share:








Basic

$                     (0.20)


$                       0.36


$                       1.77


$                       0.67

Diluted

$                     (0.20)


$                       0.36


$                       1.76


$                       0.66









Weighted Average Shares Outstanding:








Basic

28,404


28,088


28,230


27,848

Diluted

28,404


28,195


28,428


28,190









COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)






December 31


December 31,

2012


2011


(Unaudited)


(Unaudited)






(In thousands, except share and per share amounts)



Assets

Current Assets:




Cash

$             68,369


$             87,955

Accounts receivable, net of reserve for doubtful accounts of $3,393 and $3,867, respectively

114,573


130,297

Inventories

86,318


79,423

Deferred income taxes

8,381


1,837

Other current assets

6,446


7,470

Total current assets 

284,087


306,982

Property, plant and equipment, net of accumulated depreciation of $117,359 and $109,403, respectively

83,304


76,672

Goodwill

8,986


-

Intangible assets, net

23,001


7,315

Deferred income taxes

23,615


-

Other assets, net

14,509


15,915

Total assets

$           437,502


$           406,884





Liabilities and Stockholders' Equity





Current Liabilities:




Accounts payable 

$             55,900


$             74,239

Accrued liabilities

32,869


38,960

Total current liabilities 

88,769


113,199

Long-term debt

250,000


250,000

Pension and other post-retirement benefits

28,273


28,013

Other long-term liabilities

4,152


2,897

Total liabilities 

371,194


394,109

Stockholders' Equity:




Preferred stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding; common stock, $0.01 par value per share; 60,000,000 shares authorized; 28,463,479 and 28,170,929 shares issued and outstanding, respectively

290


285

Treasury stock purchased from employees; 590,154 and 426,870 shares, respectively

(5,264)


(4,059)

Additional paid-in capital 

223,822


219,112

Retained loss

(124,677)


(174,754)

Accumulated other comprehensive loss

(27,885)


(27,818)

Total CVG stockholders' equity

66,286


12,766

Non-controlling interest 

22


9

Total stockholders' equity

66,308


12,775

Total liabilities and stockholders' equity

$           437,502


$           406,884





SOURCE Commercial Vehicle Group, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...