Press Release

<< Back
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:

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.



               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.

http://www.cvgrp.com

Print Page  | E-mail Page  | RSS Feeds  | E-mail Alerts  | IR Contacts  | Financial Tear Sheet