UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 31, 2012
Commercial Vehicle Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 001-34365 | 41-1990662 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
7800 Walton Parkway, New Albany, Ohio | 43054 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: 614-289-5360
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On October 31, 2012, Commercial Vehicle Group, Inc. issued the press release attached hereto as Exhibit 99.1 announcing earnings for the three and nine months ended September 30, 2012. The information in Exhibit 99.1 is being provided pursuant to Item 2.02 of Form 8-K.
Item 7.01 Regulation FD Disclosure.
The registrant hereby furnishes the information set forth in the press release issued on October 31, 2012, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information, including the exhibit, the registrant furnished in this report is not deemed filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Registration statements or other documents filed with the Securities and Exchange Commission shall not incorporate this information by reference, except as otherwise expressly stated in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) | Exhibits. |
99.1 | Third quarter 2012 operating results press release dated October 31, 2012. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Commercial Vehicle Group, Inc. | ||||||
October 31, 2012 | By: | /s/ Chad M. Utrup | ||||
Name: Chad M. Utrup Title: Chief Financial Officer |
Exhibit Index
Exhibit No. |
Description | |
99.1 | Third Quarter 2012 Operating Results Press Release Dated October 31, 2012 |
Exhibit 99.1
CONTACT: | John Hyre, Investor Relations | |
Commercial Vehicle Group, Inc. | ||
(614) 289-5157 |
FOR IMMEDIATE RELEASE
COMMERCIAL VEHICLE GROUP ANNOUNCES
THIRD QUARTER 2012 RESULTS
NEW ALBANY, OHIO, October 31, 2012 Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $204.8 million for the third quarter of 2012, a decrease of approximately 5.6% compared to $216.9 million for the prior-year period. Operating income for the third quarter of 2012 was $8.9 million compared to $13.5 million for the third quarter of 2011. Net income was $30.5 million for the third quarter, or $1.07 per diluted share, compared to $7.4 million, or $0.26 per diluted share in the prior-year quarter. Included in the third quarter of 2012 results is an income tax benefit of approximately $27.0 million primarily related to the release of the Companys domestic deferred tax asset valuation allowance.
The decline in our revenues for this quarter compared to the run rates we experienced in the first half of the year is evidence of the softening we had earlier predicted in some of our key end markets, said Mervin Dunn, President and CEO of Commercial Vehicle Group. Despite some anticipated near-term softness, we still believe our Company is well positioned and our strategy is sound for the long-term. We will continue to stay focused on our strategic growth initiatives as we do not expect near-term fluctuating market conditions to prohibit CVG from achieving our longer-term strategic objectives, added Mr. Dunn.
The Company did not have any outstanding borrowings under its asset-based revolver at September 30, 2012 and, as a result, was not subject to any financial maintenance covenants. In addition, the Company had approximately $99.5 million of cash on its balance sheet at September 30, 2012 with an additional $37.0 million of availability under its asset-based revolver for total liquidity availability of approximately $136.5 million.
With the recent trends of market softening, we will be focused on utilizing our variable cost structure and adjusting our operations and cost structure accordingly without compromising the foundation weve established for achieving our long term growth objectives, said Chad Utrup, Chief Financial Officer of Commercial Vehicle Group. We did record a large tax benefit during the quarter related to the reversal of certain domestic deferred tax valuation allowances. As weve indicated in the past, the valuation allowances may be adjusted accordingly from time to time as our deferred tax assets are deemed usable in the future. We do have additional valuation allowances in foreign jurisdictions which we will continue to evaluate as we move forward, added Mr. Utrup.
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A conference call to discuss the contents of this press release is scheduled for Thursday, November 1, 2012, at 10:00 a.m. ET. To participate, dial (888) 713-4211 using access code 36308119. You can pre-register for the conference call and receive your pin number at:
https://www.theconferencingservice.com/prereg/key.process?key=PYDLGJ7HP
This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Groups 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 54925146.
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 fluctuations in our end markets, achievement of long-term growth objectives, growth and margin enhancement initiatives, valuation allowances in foreign jurisdictions and the Companys 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 Companys 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 Companys failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Companys customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Companys ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Companys 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 Companys 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.
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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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||
Revenues |
$ | 204,824 | $ | 216,909 | $ | 684,559 | $ | 606,194 | ||||||||
Cost of Revenues |
178,419 | 187,087 | 583,920 | 523,980 | ||||||||||||
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Gross Profit |
26,405 | 29,822 | 100,639 | 82,214 | ||||||||||||
Selling, General and Administrative Expenses |
17,445 | 16,210 | 53,989 | 48,427 | ||||||||||||
Amortization Expense |
91 | 65 | 275 | 255 | ||||||||||||
Restructuring Costs |
| | | 542 | ||||||||||||
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Operating Income |
8,869 | 13,547 | 46,375 | 32,990 | ||||||||||||
Interest and Other Expense |
5,342 | 5,332 | 15,854 | 14,381 | ||||||||||||
Loss on Early Extinguishment of Debt |
| | | 7,448 | ||||||||||||
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Income Before (Benefit) Provision for Income Taxes |
3,527 | 8,215 | 30,521 | 11,161 | ||||||||||||
(Benefit) Provision for Income Taxes |
(26,946 | ) | 839 | (25,097 | ) | 2,677 | ||||||||||
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Net Income |
30,473 | 7,376 | 55,618 | 8,484 | ||||||||||||
Less: Non-controlling interest in subsidiarys loss |
(28 | ) | | (43 | ) | | ||||||||||
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Net Income Attributable to CVG Stockholders |
$ | 30,501 | $ | 7,376 | $ | 55,661 | $ | 8,484 | ||||||||
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Earnings per Common Share: |
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Basic |
$ | 1.08 | $ | 0.27 | $ | 1.98 | $ | 0.31 | ||||||||
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Diluted |
$ | 1.07 | $ | 0.26 | $ | 1.96 | $ | 0.30 | ||||||||
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Weighted Average Shares Outstanding: |
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Basic |
28,172 | 27,768 | 28,171 | 27,767 | ||||||||||||
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Diluted |
28,461 | 28,152 | 28,410 | 28,187 | ||||||||||||
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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
September 30, | December 31, | |||||||
2012 | 2011 | |||||||
(Unaudited) | (Unaudited) | |||||||
(In thousands, except share and per share amounts) |
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Assets | ||||||||
Current Assets: |
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Cash |
$ | 99,543 | $ | 87,955 | ||||
Accounts receivable, net of reserve for doubtful accounts of $3,105 and $3,867, respectively |
131,155 | 130,297 | ||||||
Inventories |
90,684 | 79,423 | ||||||
Deferred income taxes |
8,843 | 1,837 | ||||||
Other current assets |
8,268 | 7,470 | ||||||
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Total current assets |
338,493 | 306,982 | ||||||
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Property, plant and equipment, net of accumulated depreciation of $116,795 and $109,403, respectively |
81,128 | 76,672 | ||||||
Intangible assets, net |
7,065 | 7,315 | ||||||
Deferred income taxes |
21,401 | | ||||||
Other assets, net |
14,988 | 15,915 | ||||||
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Total assets |
$ | 463,075 | $ | 406,884 | ||||
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Liabilities and Stockholders Equity | ||||||||
Current Liabilities: |
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Accounts payable |
$ | 72,378 | $ | 74,239 | ||||
Accrued liabilities |
38,335 | 38,960 | ||||||
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Total current liabilities |
110,713 | 113,199 | ||||||
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Long-term debt |
250,000 | 250,000 | ||||||
Pension and other post-retirement benefits |
26,166 | 28,013 | ||||||
Other long-term liabilities |
2,126 | 2,897 | ||||||
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Total liabilities |
389,005 | 394,109 | ||||||
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Stockholders Equity: |
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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; 28,174,241 and 28,170,929 shares issued and outstanding, respectively |
285 | 285 | ||||||
Treasury stock purchased from employees; 428,425 and 426,870 shares, respectively |
(4,072 | ) | (4,059 | ) | ||||
Additional paid-in capital |
222,608 | 219,112 | ||||||
Retained loss |
(119,093 | ) | (174,754 | ) | ||||
Accumulated other comprehensive loss |
(25,709 | ) | (27,818 | ) | ||||
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Total CVG stockholders equity |
74,019 | 12,766 | ||||||
Non-controlling interest |
51 | 9 | ||||||
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Total stockholders equity |
74,070 | 12,775 | ||||||
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Total liabilities and stockholders equity |
$ | 463,075 | $ | 406,884 | ||||
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