EX-99.1 2 c47180exv99w1.htm EXHIBIT 99.1 exv99w1
Exhibit 99.1
(CVG LOGO)
     
CONTACT:
  John Hyre, Investor Relations
 
  Commercial Vehicle Group, Inc.
 
  (614) 289-5157
FOR IMMEDIATE RELEASE
COMMERCIAL VEHICLE GROUP REPORTS
THIRD QUARTER 2008 RESULTS
NEW ALBANY, OHIO, October 22, 2008 – Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $192.9 million for the third quarter ended September 30, 2008, compared to revenues of $160.9 million for the third quarter of 2007. Operating income for the third quarter was $0.5 million compared to $2.8 million for the third quarter of 2007. Net loss was $2.6 million for the quarter, or ($0.12) per diluted share, compared to a net loss of $2.7 million, or ($0.13) per diluted share, in the prior-year quarter. Fully diluted shares outstanding for the quarter were 21.5 million compared to 21.4 million for the prior-year period.
“We have certainly faced strong headwinds this year with commodity pricing and petroleum-related service costs and these past several months are no exception,” said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. “We have worked closely with our customers on recovery of these incremental costs and continue to work diligently on reducing our material and logistics costs which have been severely impacted this year as a result of the global economic conditions,” added Mr. Dunn.
Revenues for the quarter compared to the prior-year period increased by approximately $32.0 million due primarily to the increase in the North American Class 8 heavy truck market as well as acquisitions made during the fourth quarter of 2007. Operating income decreased by approximately $2.3 million from the prior year quarter primarily as a result of the performance of acquisitions made during the fourth quarter of 2007 and the continued pressures on raw material and logistics costs. Fully diluted loss per share improved by approximately $0.01 from the prior year quarter.
Net debt (calculated as total debt less cash and cash equivalents) improved to $151.7 million at September 30, 2008, when compared to $163.1 million at June 30, 2008. Capital expenditures were $3.8 million, or 2.0% of revenues, for the three-month period ending September 30, 2008.
The Company estimates its revenues for the full year 2008 to be in the range of $781.0 to $793.0 million and its estimates for operating income to be in the range of $18.0 to $21.0 million. Fully diluted (loss) earnings per share for the year is projected to be in the range of ($0.08) to $0.01 based on 21.7 million diluted shares. These estimates are based on North American Class 8 truck production levels in the range of 205 thousand to 215 thousand units.
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“We recognize the importance of cash generation, liquidity and long-term financing in today’s marketplace and we are very pleased with our achievements in overall debt reduction this past quarter,” said Chad M. Utrup, chief financial officer of Commercial Vehicle Group.  “We will continue to focus heavily on reducing costs and capital spending as we work our way through the current market conditions,” added Mr. Utrup. 
A conference call to review third quarter results is scheduled for Thursday, October 23, 2008, at 10:00 a.m. ET. To participate, dial (888) 713-4218 using access code 16328607. You can pre-register for the conference call and receive your pin number at:
https://www.theconferencingservice.com/prereg/key.process?key=PLF8YF4VN
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 32749227.
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. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. 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 estimates for future periods with respect to revenues and earnings per share 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) 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 the Company serves; (iv) increased competition in the heavy-duty truck market; (v) the Company’s failure to complete or successfully integrate additional 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 the Company’s financial position; and (ix) various other risks as outlined in the Company’s SEC filings. 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.
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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
REVENUES
  $ 192,860     $ 160,918     $ 599,104     $ 518,285  
 
                               
COST OF REVENUES
    175,952       143,099       538,023       457,578  
 
                       
 
                               
Gross Profit
    16,908       17,819       61,081       60,707  
 
                               
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
    15,983       14,665       47,761       44,829  
 
                               
GAIN ON SALE OF LONG LIVED ASSET
                (6,075 )      
 
                               
AMORTIZATION EXPENSE
    379       169       1,065       531  
 
                               
RESTRUCTURING CHARGES
          182             1,180  
 
                       
 
                               
Operating Income
    546       2,803       18,330       14,167  
 
                               
OTHER (INCOME) EXPENSE
    (72 )     4,339       5,840       4,556  
 
                               
INTEREST EXPENSE
    3,708       3,242       11,407       10,415  
 
                               
LOSS ON EARLY EXTINGUISHMENT OF DEBT
                      149  
 
                       
 
                               
(Loss) Income Before Provision for Income Taxes
    (3,090 )     (4,778 )     1,083       (953 )
 
                               
(BENEFIT) PROVISION FOR INCOME TAXES
    (487 )     (2,096 )     131       (999 )
 
                       
 
                               
Net (Loss) Income
  $ (2,603 )   $ (2,682 )   $ 952     $ 46  
 
                       
 
                               
(LOSS) EARNINGS PER COMMON SHARE:
                               
Basic
  $ (0.12 )   $ (0.13 )   $ 0.04     $ 0.00  
 
                       
Diluted
  $ (0.12 )   $ (0.13 )   $ 0.04     $ 0.00  
 
                       
 
                               
WEIGHTED AVERAGE SHARES OUTSTANDING:
                               
Basic
    21,537       21,438       21,537       21,413  
 
                       
Diluted
    21,537       21,438       21,700       21,640  
 
                       
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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
                 
    September 30,     December 31,  
    2008     2007  
    (unaudited)     (unaudited)  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 7,922     $ 9,867  
Accounts receivable, net
    128,053       107,687  
Inventories, net
    97,456       96,385  
Prepaid expenses
    12,020       16,508  
Deferred income taxes
    17,218       12,989  
 
           
Total current assets
    262,669       243,436  
 
           
PROPERTY, PLANT AND EQUIPMENT, net
    94,119       98,258  
GOODWILL, INTANGIBLE AND OTHER ASSETS, net
    261,218       257,395  
 
           
TOTAL ASSETS
  $ 618,006     $ 599,089  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
               
 
               
CURRENT LIABILITIES:
               
Current maturities of long-term debt
  $ 120     $ 116  
Accounts payable
    100,955       93,033  
Accrued liabilities
    36,595       33,115  
 
           
Total current liabilities
    137,670       126,264  
 
           
LONG-TERM DEBT, net of current maturities
    159,510       159,609  
OTHER LONG-TERM LIABILITIES
    54,770       47,881  
 
           
Total liabilities
    351,950       333,754  
 
           
COMMITMENTS AND CONTINGENCIES
               
STOCKHOLDERS’ INVESTMENT:
               
Common stock, $0.01 par value per share; 30,000,000 shares authorized; 21,536,814 and 21,536,814 shares issued and outstanding
    215       215  
Treasury stock purchased from employees; 28,153 shares
    (414 )     (414 )
Additional paid-in capital
    180,321       177,421  
Retained earnings
    89,770       88,818  
Accumulated other comprehensive loss
    (3,836 )     (705 )
 
           
Total stockholders’ investment
    266,056       265,335  
 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ INVESTMENT
  $ 618,006     $ 599,089  
 
           
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