Commercial Vehicle Group (CVGI) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to CVG's First Quarter twenty twenty five Earnings Conference Call. During today's presentation, all parties will be in a listen only mode. Following the presentation, the conference will be opened for questions with instructions to follow at that time. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Andy Chu, Chief Financial ...

Q1-2025 Earnings Presentation James Ray – President & Chief Executive Officer Andy Cheung – Executive Vice President & Chief Financial Officer May 7, 2025 Forward Looking Statements and Non-GAAP Financial Measures These slides contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. For this purpose, any statements contained herein that are not statements of historical fact, including w ...

Commercial Vehicle Group (CVGI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.15. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this supplier of products for heavy duty trucks would post a loss of $0.07 per share when it actually produced a loss of $0.15, delivering a surprise of -114.29%.Ove ...

Table of Contents For the quarterly period ended March 31, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 7800 Walton Parkway New Albany, Ohio (Address of principal executive offices) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...

Exhibit 99.1 CVG REPORTS FIRST QUARTER 2025 RESULTS First quarter sales of $170 million, EPS of $(0.09), Adjusted EBITDA of $5.8 million Significantly improved free cash flow enables further debt paydown Updates guidance for full year 2025 NEW ALBANY, OHIO (May 6, 2025) - CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its first quarter ended March 31, 2025. During the quarter, the Company completed a strategic reorganization of its operation ...

Core Viewpoint - CVG reported a challenging first quarter for 2025, with a significant decline in revenues and net loss, but improved free cash flow and operational efficiency initiatives are underway to address these challenges [1][4][5]. Financial Performance - First quarter revenues were $169.8 million, down 12.7% from $194.6 million in the prior year, primarily due to softening demand in global construction and agriculture markets, as well as decreased North American Class 8 truck demand [5][10]. - Operating income decreased to $1.4 million from $4.5 million year-over-year, with adjusted operating income at $2.1 million compared to $6.3 million [5][10]. - The net loss from continuing operations was $3.1 million, or $(0.09) per diluted share, compared to a net income of $1.4 million, or $0.05 per diluted share, in the prior year [5][10]. - Adjusted EBITDA was $5.8 million, down 40.2% from $9.7 million, with an adjusted EBITDA margin of 3.4%, down from 5.0% [5][10]. Cash Flow and Debt Management - Free cash flow improved to $11.2 million, an increase of $17.7 million, attributed to better working capital management [5][10]. - Net debt decreased by $11.7 million compared to the end of 2024, indicating progress in debt paydown [5][10]. Strategic Initiatives - The company completed a strategic reorganization into three segments: Global Seating, Global Electrical Systems, and Trim Systems and Components, aiming to enhance operational efficiency [2][4]. - Management emphasized the importance of cash generation and debt reduction as key priorities, alongside ongoing efforts to improve margins and reduce capital expenditures [4][5]. Outlook - CVG updated its full-year 2025 guidance, projecting net sales between $660 million and $690 million, down from the previous outlook of $670 million to $710 million [14]. - Adjusted EBITDA is now expected to be between $22 million and $27 million, revised from $25 million to $30 million [14]. - The company anticipates a decline of approximately 5-15% in construction and agriculture end markets for 2025, but expects new business contributions in Electrical Systems to mitigate this decline [15].

NEW ALBANY, Ohio, April 23, 2025 (GLOBE NEWSWIRE) -- Commercial Vehicle Group (the "Company" or "CVG") (NASDAQ:CVGI) will hold its quarterly conference call on Wednesday, May 7, 2025, at 8:30 a.m. ET, to discuss first quarter 2025 financial results. CVG will issue a press release and presentation prior to the conference call. Toll-free participants dial (800) 549-8228 using conference code 57416. International participants dial (289) 819-1520 using conference code 57416. This call is being webcast and can b ...

Core Points - Robert C. Griffin will retire from the Board of Directors of Commercial Vehicle Group, Inc. effective May 15, 2025, and will not stand for re-election at the 2025 annual meeting of stockholders [1][2] - Griffin has been a Director since 2005 and is currently the Chairman of the Board; his retirement is not due to any disagreements with the Company or its management [2] - William C. Johnson is expected to succeed Griffin as Chairman of the Board following his retirement [2] - Michael Nauman, Chairman of the Nominating, Governance and Sustainability Committee, expressed gratitude for Griffin's contributions and leadership during his tenure [3] - Griffin stated it has been a privilege to serve the shareholders of CVG for 20 years and expressed his best wishes for the Company's future success [3]

Financial Performance - For the year ended December 31, 2024, the company recorded revenues of $723.4 million, a decrease of 13.4% compared to $835.5 million in 2023[248]. - The gross profit for 2024 was $73.1 million, down from $121.1 million in 2023, reflecting a gross margin of 10.1%[248]. - The company reported a net loss of $27.9 million for 2024, compared to a net income of $49.4 million in 2023[248]. - Operating income for 2024 was a loss of $0.8 million, a significant decline from an operating income of $39.9 million in 2023[248]. - The company recorded a loss from continuing operations of $35.7 million in 2024, compared to a profit of $43.6 million in 2023[248]. - Comprehensive loss for 2024 totaled $40,926 thousand, contrasting with a comprehensive income of $50,677 thousand in 2023[251]. - Net income for 2024 was a loss of $27,867 thousand, compared to a profit of $49,411 thousand in 2023, indicating a significant decline in profitability[259]. - The company reported a pre-tax loss of $8,241 million for 2024, a decrease from a pre-tax income of $28,430 million in 2023[331]. - Basic earnings per share from continuing operations for 2024 was $(1.07), a decline from $1.32 in 2023[375]. - The company reported a total other comprehensive loss of $(13.059) million for the year ended December 31, 2024, compared to a total other comprehensive income of $1.266 million for 2023[378]. Assets and Liabilities - Total assets decreased from $483,214 thousand in 2023 to $424,573 thousand in 2024, reflecting a reduction of approximately 12.1%[254]. - Current assets fell from $327,742 thousand in 2023 to $303,300 thousand in 2024, a decrease of about 7.4%[254]. - Cash reserves decreased from $37,848 thousand in 2023 to $26,630 thousand in 2024, representing a decline of approximately 29.5%[254]. - Total liabilities decreased from $310,282 thousand in 2023 to $288,981 thousand in 2024, a decline of approximately 6.9%[254]. - Stockholders' equity decreased from $172,932 thousand in 2023 to $135,592 thousand in 2024, reflecting a decrease of about 21.6%[254]. - The carrying amount of long-term debt obligations was $135,500 million in 2024, with a fair value of $134,863 million, compared to a carrying amount of $141,514 million and a fair value of $139,213 million in 2023[325]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $33,452,000 in 2024, down from an inflow of $38,276,000 in 2023[259]. - The company reported a net cash inflow from investing activities of $30,896,000 in 2024, a turnaround from a cash outflow of $19,696,000 in 2023[259]. - The company had outstanding letters of credit of $1.1 million under the Revolving Credit Facility as of December 31, 2024[303]. - The company divested its cab structures business and Industrial Automation segment, which are classified as discontinued operations, impacting the overall financial results[264]. Debt and Interest - Interest expense for 2024 was $9.2 million, slightly lower than $10.2 million in 2023[248]. - The company had total long-term debt of $127.1 million as of December 31, 2024, compared to $126.2 million in 2023[295]. - The term loan facility was reduced to $85 million and the revolving credit facility commitments were decreased to $125 million as of December 19, 2024[301]. - The company recognized a loss on extinguishment of debt of $0.5 million due to the fourth amendment of the credit agreement[302]. - Cash payments for interest for the twelve months ended December 31, 2024, were $11.7 million, a decrease from $12.8 million in 2023[312]. Foreign Currency and Inflation - The company is exposed to foreign currency risks, with significant revenues derived from operations outside the U.S., affecting the translation of financial results into U.S. Dollars[230]. - Inflation impacts the company through increased material costs and labor, with limited ability to pass these costs onto customers due to competitive market conditions[233]. - The effect of currency exchange rate changes resulted in a cash outflow of $1,540,000 in 2024, contrasting with a cash inflow of $172,000 in 2023[259]. Restructuring and Operations - The company incurred a loss of $2,454 million on foreign exchange contracts designated as hedging instruments in 2024, contrasting with a gain of $5,339 million in 2023[323]. - The company incurred $10.8 million in restructuring expenses during the year ended December 31, 2024, primarily for workforce reductions ($8.4 million) and facility exit costs ($2.4 million)[381]. - The restructuring program approved during the quarter ended December 31, 2023, included workforce reductions and footprint optimization across segments[379]. Taxation - The provision for income taxes for 2024 was $27,493 million, compared to a benefit of $(15,203) million in 2023[331]. - The company recorded a valuation allowance of $26.6 million in 2024 primarily related to U.S. deferred tax assets due to a cumulative three-year loss position[333]. - The total net deferred tax asset was $10.76 million, a decrease from $33.29 million in 2023[332]. Segment Performance - The company has three reportable segments for 2024: Vehicle Solutions, Electrical Systems, and Aftermarket & Accessories, following the divestiture of the cab structure business[392]. - Revenue from Vehicle Solutions for the twelve months ended December 31, 2024, was $404.2 million, down from $470.3 million in 2023, representing a decline of 14.1%[294]. - The Vehicle Solutions segment generated revenues of $404,164 million in 2024, a decrease of 13.9% from $469,962 million in 2023[396]. - Revenues from the Industrial Automation segment were $16,468 million in 2024, down from $38,900 million in 2023[406].

Financial Data and Key Metrics Changes - Consolidated fourth quarter 2024 revenue was $163.3 million, down from $193.7 million in the prior year, primarily due to lower sales from softening customer demand in Vehicle Solutions and Electrical Systems segments [18][22] - Adjusted EBITDA for the fourth quarter was $0.9 million, compared to $8.3 million in the prior year, with adjusted EBITDA margins decreasing to 0.6% from 4.3% [19][23] - The net loss for the quarter was $35 million, or a loss of $1.04 per diluted share, compared to a net income of $22.6 million, or $0.67 per diluted share in the prior year [20][21] - Full year consolidated revenue was $723.4 million, down from $835.5 million in the prior year, with adjusted EBITDA of $23.2 million compared to $54.6 million in the prior year [22][23] Business Line Data and Key Metrics Changes - Electrical Systems segment revenues were $40.3 million, a decrease of 28% year-over-year, with an adjusted operating loss of $1.7 million [28] - Vehicle Solutions segment revenues were $91.4 million, down 15% year-over-year, with adjusted operating income of $2.8 million [30] - Aftermarket segment revenues increased by 4% to $31.6 million, with adjusted operating income of $3.1 million, although full year revenues were down 5% [32] Market Data and Key Metrics Changes - The Class 8 heavy truck market is expected to see a 5% decline in year-over-year volumes, with a forecasted 14% decline in the first half of 2025 [35][36] - The construction equipment market is anticipated to decline by 5% to 10% due to higher interest rates and weaker housing starts [36] - Agriculture markets are also facing a 5% to 10% decline, driven by higher interest rates and lower commodity prices [37] Company Strategy and Development Direction - The company has focused on improving its cost structure and diversifying end markets, including divesting non-core businesses to enhance operational focus [7][10] - A new organizational structure was announced, creating three operating segments: Global Electrical Systems, Global Seating and Trim Systems, and Components [14][15] - The company aims to achieve $15 million to $20 million in cost savings in 2025, with expectations for margin expansion and improved operational efficiency [11][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a challenging year financially but emphasized that strategic actions taken will position the company for future growth [10][44] - The company expects to return to positive free cash flow in 2025, focusing on working capital management and inventory reduction [27][40] - Management remains optimistic about market recovery in 2026, driven by underlying secular trends and replacement needs [38][44] Other Important Information - The company eliminated approximately 1,300 positions, or roughly 17% of its headcount, in response to market conditions [8] - The company received covenant relief on its debt, providing additional flexibility for near-term financial management [73] Q&A Session Summary Question: Details on new business wins - Management noted that most new business wins were booked through Q3, with Q4 typically seeing slower sourcing cycles [49] - Confidence in 2025 is based on a larger funnel of opportunities and expected new program launches [52] Question: Performance in Class 8 and construction markets - Management indicated that performance is in line with expectations, despite some softness towards the end of the quarter [57] Question: Capturing expense savings in guidance - Management expects to capture most of the $15 million to $20 million in expense savings primarily in Q2 and beyond [62] Question: Production facility operations - The company is shifting production to new facilities while managing existing ones, with plans to grow into these facilities as market conditions improve [70] Question: Concerns about financial performance and urgency - Management acknowledged the tough environment and emphasized ongoing cost structure adjustments and a focus on generating free cash flow [110][115] Question: Gross margin and new business expectations - Management is focused on improving gross margins and expects significant improvements as operational efficiencies are realized [117][126]