8-K
Commercial Vehicle Group, Inc. (CVGI)
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): November 2, 2022
Commercial Vehicle Group, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-34365 | 41-1990662 | |||
|---|---|---|---|---|---|
| (State or other jurisdiction | (Commission | (I.R.S. Employer | |||
| of incorporation) | File Number) | Identification No.) | 7800 Walton Parkway, New Albany, Ohio | 43054 | |
| --- | --- | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant’s 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)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.1 per share | CVGI | The NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Item 2.02. Results of Operations and Financial Condition.
On November 2, 2022, Commercial Vehicle Group, Inc. (the “Company”) issued the press release attached hereto as Exhibit 99.1 announcing earnings for the third quarter ended September 30, 2022.
The information, including exhibit 99.1 hereto, 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 7.01. Regulation FD Disclosure.
The information set forth under Item 2.02 is incorporated into this Item 7.01 by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibit
| Exhibit No. | Description |
|---|---|
| 99.1 | Third quarter ended September 30, 2022 earnings press release dated November 2, 2022. |
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. | ||
|---|---|---|
| November 2, 2022 | By: | /s/ Andy Cheung |
| Name: | Chung Kin Cheung ("Andy Cheung") | |
| Title: | Chief Financial Officer<br>(Principal Financial Officer) |
Document
Exhibit 99.1
CVG REPORTS THIRD QUARTER 2022 RESULTS
Sales increase of 5%, previously announced pricing and profit recovery showing results
New business wins expected to surpass expectations and debt paydown toward higher end of $25-40 million range
NEW ALBANY, OHIO (November 2, 2022) - CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its third quarter ended September 30, 2022.
Third Quarter 2022 Highlights (Compared with prior year, where comparisons are noted)
•Revenues of $251.4 million, up $11.8 million or 4.9%. Operating Income of $9.5 million. Adjusted operating income of $10.6 million, down $1.6 million or 13.1% versus Q3 2021.
•Net income of $3.6 million, or $0.11 per diluted share. Adjusted net income of $5.1 million, or $0.15 per diluted share, a decrease of $0.10 per diluted share versus Q3 2021.
•Adjusted EBITDA of $14.3 million, down $2.6 million or 15.4% versus Q3 2021. Adjusted EBITDA margin of 5.7% versus 7.1% in Q3 2021.
•Expect full year debt paydown at the high end of $25 million to $40 million range, and on track to fully pay off revolver in Q4 2022.
•Innovation program continued to deliver new products, new customers, and new business wins and remains on track for approximately $200 million in annualized wins in 2022.
•Efforts to transform cost structure remain ahead of schedule, improving our competitive position with next-generation manufacturing processes as well as new low-cost plants in low-cost countries.
Harold Bevis, President and Chief Executive Officer of CVG, said, "CVG continued to deliver against its business transformation plan with sequential improvements in revenue, adjusted EBITDA, operating income margin, free cash flow, and new business wins during the quarter. In the third quarter, sales and profit increased in our vehicle businesses, somewhat offsetting the pause in warehouse automation that we highlighted last quarter. Our operating performance is on track to deliver the higher end of our free cash flow generation target, which in turn puts us on track to pay down debt at the higher end of the previously announced range, fully pay off our revolving credit facility and end the year with cash on hand.”
“CVG’s transformation plan is on track; however, 2022 results have been masked by persisting inflationary pressures. Our plan includes improving or exiting underperforming legacy business, winning new business, particularly within our Electrical Systems segment, and improving our balance sheet. Our new wins, particularly within the electric vehicle market, remain on pace for a record year, supporting our goal of increasing the accretive mix of Electrical Systems sales for CVG. Our customers truly appreciate our value-add in this business, and we are now a Tier 1 designer of electrical systems for electric vehicle manufacturers.”
“We are proud of the progress we’ve made company-wide, thanks to our great team of leaders and employees, and are encouraged by strong underlying vehicle demand and new business wins. While
we continue to operate in a challenging macro environment, we believe we are beginning to see some relief, particularly as it relates to steel pricing and freight costs.”
Third Quarter Financial Results
(amounts in millions except per share data and percentages)
| Third Quarter | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | % Change | |||||
| Revenues | $ | 251.4 | $ | 239.6 | 4.9% | |||
| Gross profit | $ | 26.8 | $ | 30.1 | (11.0)% | |||
| Gross margin | 10.7 | % | 12.6 | % | ||||
| Adjusted gross profit 1 | $ | 27.4 | $ | 30.1 | (9.0)% | |||
| Adjusted gross margin 1 | 10.9 | % | 12.6 | % | ||||
| Operating income (loss) | $ | 9.5 | $ | 11.4 | (16.7)% | |||
| Operating margin | 3.8 | % | 4.8 | % | ||||
| Adjusted operating income (loss) 1 | $ | 10.6 | $ | 12.2 | (13.1)% | |||
| Adjusted operating margin 1 | 4.2 | % | 5.1 | % | ||||
| Net income (loss) | $ | 3.6 | $ | 7.5 | (52.0)% | |||
| Adjusted net income (loss)1 | $ | 5.1 | $ | 8.1 | (37.0)% | |||
| Earnings (loss) per share, diluted | $ | 0.11 | $ | 0.23 | (52.2)% | |||
| Adjusted earnings per share, diluted 1 | $ | 0.15 | $ | 0.25 | (40.0)% | |||
| Adjusted EBITDA 1 | $ | 14.3 | $ | 16.9 | (15.4)% | |||
| Adjusted EBITDA margin 1 | 5.7 | % | 7.1 | % | ||||
| 1 See Appendix A for GAAP to Non-GAAP reconciliation |
All values are in US Dollars.
Consolidated Results of Operations
Third Quarter 2022 Results
•Third quarter 2022 revenues increased 4.9% to $251.4 million, compared to $239.6 million in the prior year period. The increase in revenues was primarily driven by increased pricing to offset material cost increases and volume, offset by a volume decrease in Warehouse Automation. Foreign currency translation also unfavorably impacted third quarter 2022 revenues by $6.5 million, or 2.7%.
•Operating income in the third quarter 2022 was $9.5 million compared to $11.4 million in the prior year period. The decrease in operating income was primarily attributable to a lag in price-cost offsets, $2.9 million of new business startup costs and $0.6 million of restructuring expenses. The third quarter 2022 adjusted operating income was $10.6 million, excluding special charges.
•Interest associated with debt was $2.8 million and $1.6 million for the third quarter 2022 and 2021, respectively.
•Net income was $3.6 million, or $0.11 per diluted share, in the third quarter 2022 compared to $7.5 million, or $0.23 per diluted share, in the prior year period.
At September 30, 2022, the Company had $11.6 million of outstanding borrowings on its revolving credit facility, $38.7 million of cash and $137.2 million of availability from the revolving credit facility, resulting in total liquidity of $175.9 million.
Third Quarter 2022 Segment Results
Vehicle Solutions Segment
•Revenues in the third quarter 2022 increased 30.6% to $154.0 million, compared to $117.9 million in the prior year period, primarily resulting from material cost pass-through and favorable volume.
•Operating income in the third quarter 2022 increased 227.3% to $9.6 million, compared to $2.9 million in the prior year period, primarily driven by volume leverage, increased pricing and lower health care expense.
Electrical Systems Segment
•Revenues in the third quarter 2022 increased 15.1% to $46.1 million, compared to $40.1 million in the prior year period, primarily resulting from material cost pass-through and contributions from new business wins.
•Operating income was $5.2 million compared to $4.9 million in the prior year period. The increase in operating income was primarily attributable to a decrease in SG&A expenses offset by increased labor costs, raw material inflation and freight cost increases.
Aftermarket and Accessories Segment
•Revenues in the third quarter 2022 increased 24.1% to $37.1 million, compared to $29.9 million in the prior year period, primarily resulting from increased volume and pricing to offset material cost pass-through.
•Operating income was $5.0 million compared to $2.3 million in the prior year period. The increase in operating income was primarily attributable to the increase in pricing to offset material cost pass-through. Adjusted operating income was $5.4 million, an increase of 129.8%.
Warehouse Automation Segment
•Revenues in the third quarter 2022 were $14.1 million compared to $51.7 million in the prior year period, a decrease of 72.7% primarily due to lower demand levels.
•Operating loss in the third quarter 2022 was $1.0 million compared to operating income of $8.0 million in the prior year period. The decrease was primarily attributable to lower volumes. Adjusted operating loss was $0.7 million, compared to income of $8.1 million in the prior period.
Demand Outlook
According to ACT Research, 2022 North American Class 8 truck production levels are expected to be at 310,000 units and Class 5-7 production are expected to be at 234,000 units. This outlook supports the Company’s 2022 projections for production of vehicle products.
GAAP to Non-GAAP Reconciliation
A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release.
Conference Call
A conference call to discuss this press release is scheduled for Thursday, November 3, 2022, at 10:00 a.m. ET. During the conference call, management intends to reference the Q3 2022 Earnings Call Presentation posted on the "Investors" section of CVG's website. To participate, dial (888) 396-8049
using conference code 38941344. International participants dial (416) 764-8646 using conference code 38941344.
This call is being webcast and can be accessed through the “Investors” section of CVG’s website at www.cvgrp.com, where it will be archived for one year.
A telephonic replay of the conference call will be available for a period of two weeks following the call. To access the replay, toll-free callers can dial (877) 674-7070 using access code 941344.
Company Contact
Andy Cheung
Chief Financial Officer
CVG
IR@cvgrp.com
Investor Relations Contact
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com
About CVG
At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. 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”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, including the short-term and long-term impact of the COVID-19 pandemic on our business, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company’s prospects in the wire harness, warehouse automation and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment 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 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 those included in the Company’s filings with the SEC. 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
Three Months and Nine Months Ended September 30, 2022 and 2021
(Unaudited)
(Amounts in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||
| Revenues | $ | 251,412 | $ | 239,610 | $ | 746,635 | $ | 742,673 |
| Cost of revenues | 224,570 | 209,466 | 672,531 | 647,040 | ||||
| Gross profit | 26,842 | 30,144 | 74,104 | 95,633 | ||||
| Selling, general and administrative expenses | 17,304 | 18,772 | 49,955 | 52,529 | ||||
| Operating income | 9,538 | 11,372 | 24,149 | 43,104 | ||||
| Other (income) expense | 1,924 | (186) | 2,798 | (1,127) | ||||
| Interest expense | 2,813 | 1,630 | 6,892 | 9,489 | ||||
| Loss on extinguishment of debt | — | — | 921 | 7,155 | ||||
| Income before provision for income taxes | 4,801 | 9,928 | 13,538 | 27,587 | ||||
| Provision for income taxes | 1,250 | 2,417 | 3,520 | 6,491 | ||||
| Net income | $ | 3,551 | $ | 7,511 | $ | 10,018 | $ | 21,096 |
| Earnings per Common Share: | ||||||||
| Basic | $ | 0.11 | $ | 0.24 | $ | 0.30 | $ | 0.67 |
| Diluted | $ | 0.11 | $ | 0.23 | $ | 0.30 | $ | 0.64 |
| Weighted average shares outstanding: | ||||||||
| Basic | 32,460 | 31,570 | 32,950 | 31,432 | ||||
| Diluted | 32,922 | 32,706 | 33,645 | 32,738 |
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except per share amounts)
| ASSETS | September 30, 2022 | December 31, 2021 | ||
|---|---|---|---|---|
| Current assets: | ||||
| Cash | $ | 38,713 | $ | 34,958 |
| Accounts receivable, net of allowances of $343 and $243, respectively | 178,340 | 174,472 | ||
| Inventories | 150,347 | 141,045 | ||
| Other current assets | 15,788 | 20,201 | ||
| Total current assets | 383,188 | 370,676 | ||
| Property, plant and equipment, net | 64,755 | 63,126 | ||
| Intangible assets, net | 15,468 | 18,283 | ||
| Deferred income taxes | 24,381 | 24,108 | ||
| Other assets, net | 33,658 | 31,500 | ||
| Total assets | $ | 521,450 | $ | 507,693 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 121,350 | $ | 101,915 |
| Accrued liabilities and other | 48,446 | 50,840 | ||
| Current portion of long-term debt | 9,844 | 9,375 | ||
| Total current liabilities | 179,640 | 162,130 | ||
| Long-term debt | 174,490 | 185,581 | ||
| Pension and other post-retirement benefits | 7,704 | 9,905 | ||
| Other long-term liabilities | 23,855 | 23,424 | ||
| Total liabilities | $ | 385,689 | $ | 381,040 |
| Stockholders’ equity: | ||||
| Preferred stock, $0.01 par value ($5,000,000 shares authorized; no shares issued and outstanding) | $ | — | $ | — |
| Common stock, $0.01 par value ($60,000,000 shares authorized; 32,551,341 and 32,034,592 shares issued and outstanding respectively) | 326 | 321 | ||
| Treasury stock, at cost: 1,842,407 and 1,708,981 shares, respectively | (14,138) | (13,172) | ||
| Additional paid-in capital | 260,210 | 255,566 | ||
| Retained deficit | (63,606) | (73,624) | ||
| Accumulated other comprehensive loss | (47,031) | (42,438) | ||
| Total stockholders’ equity | 135,761 | 126,653 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 521,450 | $ | 507,693 |
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENT FINANCIAL INFORMATION
(Unaudited)
(Amounts in thousands)
| Three Months Ended September 30, | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | $ | 154,024 | $ | 117,914 | $ | 14,116 | $ | 51,681 | $ | 46,129 | $ | 40,085 | $ | 37,143 | $ | 29,930 | $ | — | $ | — | $ | 251,412 | $ | 239,610 |
| Gross profit | 13,839 | 10,143 | 404 | 9,486 | 6,210 | 6,633 | 6,389 | 3,885 | — | (3) | 26,842 | 30,144 | ||||||||||||
| Selling, general & administrative expenses | 4,279 | 7,222 | 1,371 | 1,461 | 1,055 | 1,718 | 1,436 | 1,536 | 9,163 | 6,835 | 17,304 | 18,772 | ||||||||||||
| Operating income (loss) | $ | 9,560 | $ | 2,921 | $ | (967) | $ | 8,025 | $ | 5,155 | $ | 4,915 | $ | 4,953 | $ | 2,349 | $ | (9,163) | $ | (6,838) | $ | 9,538 | $ | 11,372 |
| Nine Months Ended September 30, | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | |||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | $ | 436,966 | $ | 372,487 | $ | 76,789 | $ | 150,378 | $ | 133,350 | $ | 130,742 | $ | 99,530 | $ | 89,066 | $ | — | $ | — | $ | 746,635 | $ | 742,673 |
| Gross profit | 35,657 | 38,914 | 8,249 | 24,612 | 16,857 | 17,545 | 13,341 | 14,605 | — | (43) | 74,104 | 95,633 | ||||||||||||
| Selling, general & administrative expenses | 18,269 | 20,269 | 4,242 | 4,199 | 3,998 | 4,646 | 4,636 | 4,407 | 18,810 | 19,008 | 49,955 | 52,529 | ||||||||||||
| Operating income (loss) | $ | 17,388 | $ | 18,645 | $ | 4,007 | $ | 20,413 | $ | 12,859 | $ | 12,899 | $ | 8,705 | $ | 10,198 | $ | (18,810) | $ | (19,051) | $ | 24,149 | $ | 43,104 |
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
Appendix A: Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(Amounts in thousands, except per share amounts and percentages)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||
| Gross profit | $ | 26,842 | $ | 30,144 | $ | 74,104 | $ | 95,633 | ||||||||||||||||||
| Restructuring | 607 | — | 2,958 | — | ||||||||||||||||||||||
| Adjusted gross profit | $ | 27,449 | $ | 30,144 | $ | 77,062 | $ | 95,633 | ||||||||||||||||||
| % of revenues | 10.9 | % | 12.6 | % | 10.3 | % | 12.9 | % | Three Months Ended | Nine Months Ended | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||
| Operating income (loss) | $ | 9,538 | $ | 11,372 | $ | 24,149 | $ | 43,104 | ||||||||||||||||||
| Restructuring | 647 | — | 3,387 | — | ||||||||||||||||||||||
| Deferred consideration purchase accounting | 103 | 120 | 341 | 488 | ||||||||||||||||||||||
| Investigation | — | — | — | 394 | ||||||||||||||||||||||
| Executive transition | 329 | 683 | 329 | 683 | ||||||||||||||||||||||
| Total operating income (loss) adjustments | 1,079 | 803 | 4,057 | 1,565 | ||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 10,617 | $ | 12,175 | $ | 28,206 | $ | 44,669 | ||||||||||||||||||
| % of revenues | 4.2 | % | 5.1 | % | 3.8 | % | 6.0 | % | Three Months Ended | Nine Months Ended | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||
| Net income (loss) | $ | 3,551 | $ | 7,511 | $ | 10,018 | $ | 21,096 | ||||||||||||||||||
| Operating income (loss) adjustments | 1,079 | 803 | 4,057 | 1,565 | ||||||||||||||||||||||
| Pension settlement | 1,116 | — | 1,116 | — | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | 921 | 7,155 | ||||||||||||||||||||||
| Hryvnia fair value adjustments on forward exchange contracts | (153) | — | 98 | — | ||||||||||||||||||||||
| Adjusted (benefit) provision for income taxes1 | (511) | (201) | (1,548) | (2,180) | ||||||||||||||||||||||
| Adjusted net income (loss) | $ | 5,082 | $ | 8,113 | $ | 14,662 | $ | 27,636 | ||||||||||||||||||
| Diluted EPS | $ | 0.11 | $ | 0.23 | $ | 0.30 | $ | 0.64 | ||||||||||||||||||
| Adjustments to diluted EPS | $ | 0.04 | $ | 0.02 | $ | 0.14 | $ | 0.20 | ||||||||||||||||||
| Adjusted diluted EPS | $ | 0.15 | $ | 0.25 | $ | 0.44 | $ | 0.84 |
1.Reported Tax (Benefit) Provision adjusted for tax effect of special charges at 25%
| Three Months Ended | Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||
| Net income (loss) | $ | 3,551 | $ | 7,511 | $ | 10,018 | $ | 21,096 | |||||||||
| Interest expense | 2,813 | 1,630 | 6,892 | 9,489 | |||||||||||||
| Provision (benefit) for income taxes | 1,250 | 2,417 | 3,520 | 6,491 | |||||||||||||
| Depreciation expense | 3,749 | 3,712 | 11,043 | 11,300 | |||||||||||||
| Amortization expense | 851 | 859 | 2,563 | 2,579 | |||||||||||||
| EBITDA | $ | 12,214 | $ | 16,129 | $ | 34,036 | $ | 50,955 | |||||||||
| % of revenues | 4.9 | % | 6.7 | % | 4.6 | % | 6.9 | % | |||||||||
| EBITDA adjustments | |||||||||||||||||
| Restructuring | $ | 647 | $ | — | $ | 3,387 | $ | — | |||||||||
| Deferred consideration purchase accounting | 103 | 120 | 341 | 488 | |||||||||||||
| Loss on extinguishment of debt | — | — | 921 | 7,155 | |||||||||||||
| Hryvnia fair value adjustments on forward exchange contracts | (153) | — | 98 | — | |||||||||||||
| Executive transition | 329 | 683 | 329 | 683 | |||||||||||||
| Pension settlement | 1,116 | — | 1,116 | — | |||||||||||||
| Investigation | — | — | — | 394 | |||||||||||||
| Adjusted EBITDA | $ | 14,256 | $ | 16,932 | $ | 40,228 | $ | 59,675 | |||||||||
| % of revenues | 5.7 | % | 7.1 | % | 5.4 | % | 8.0 | % | |||||||||
| Three Months Ended September 30, 2022 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | ||||||||||||
| Operating income (loss) | $ | 9,560 | $ | (967) | $ | 5,155 | $ | 4,953 | $ | (9,163) | $ | 9,538 | |||||
| Restructuring | 66 | 136 | — | 445 | — | 647 | |||||||||||
| Deferred consideration purchase accounting | — | 103 | — | — | — | 103 | |||||||||||
| Executive transition | — | — | — | — | 329 | 329 | |||||||||||
| Adjusted operating income (loss) | $ | 9,626 | $ | (728) | $ | 5,155 | $ | 5,398 | $ | (8,834) | $ | 10,617 | |||||
| % of revenues | 6.2 | % | (5.2) | % | 11.2 | % | 14.5 | % | 4.2 | % | |||||||
| Nine Months Ended September 30, 2022 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | ||||||||||||
| Operating income (loss) | $ | 17,388 | $ | 4,007 | $ | 12,859 | $ | 8,705 | $ | (18,810) | $ | 24,149 | |||||
| Restructuring | 270 | 800 | 571 | 1,440 | 306 | 3,387 | |||||||||||
| Deferred consideration purchase accounting | — | 341 | — | — | — | 341 | |||||||||||
| Executive transition | — | — | — | — | 329 | 329 | |||||||||||
| Adjusted operating income (loss) | $ | 17,658 | $ | 5,148 | $ | 13,430 | $ | 10,145 | $ | (18,175) | $ | 28,206 | |||||
| % of revenues | 4.0 | % | 6.7 | % | 10.1 | % | 10.2 | % | 3.8 | % | |||||||
| Three Months Ended September 30, 2021 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | ||||||||||||
| Operating income (loss) | $ | 2,921 | $ | 8,025 | $ | 4,915 | $ | 2,349 | $ | (6,838) | $ | 11,372 | |||||
| Deferred consideration purchase accounting | — | 120 | — | — | — | 120 | |||||||||||
| Investigation | — | — | — | — | — | — | |||||||||||
| Executive transition | — | — | — | — | 683 | 683 | |||||||||||
| Adjusted operating income (loss) | $ | 2,921 | $ | 8,145 | $ | 4,915 | $ | 2,349 | $ | (6,155) | $ | 12,175 | |||||
| % of revenues | 2.5 | % | 15.8 | % | 12.3 | % | 7.8 | % | 5.1 | % | |||||||
| Nine Months Ended September 30, 2021 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Vehicle Solutions | Warehouse Automation | Electrical Systems | Aftermarket and Accessories | Corporate/Other | Total | ||||||||||||
| Operating income (loss) | $ | 18,645 | $ | 20,413 | $ | 12,899 | $ | 10,198 | $ | (19,051) | $ | 43,104 | |||||
| Deferred consideration purchase accounting | — | 488 | — | — | — | 488 | |||||||||||
| Investigation | — | — | — | — | 394 | 394 | |||||||||||
| Executive transition | — | — | — | — | 683 | 683 | |||||||||||
| Adjusted operating income (loss) | $ | 18,645 | $ | 20,901 | $ | 12,899 | $ | 10,198 | $ | (17,974) | $ | 44,669 | |||||
| % of revenues | 5.0 | % | 13.9 | % | 9.9 | % | 11.4 | % | 6.0 | % |
Use of Non-GAAP Measures
This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, engage in financial and operational planning and to determine incentive compensation.
Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on the Company’s financial and operating results and in comparing the Company’s performance to that of its competitors and to comparable reporting periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.
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