|Commercial Vehicle Group Reports Third Quarter 2008 Results|
NEW ALBANY, Ohio, Oct 22, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- 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.
"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:
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 .
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.
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 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
SOURCE Commercial Vehicle Group, Inc.