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Commercial Vehicle Group Reports Second Quarter 2009 Results
NEW ALBANY, Ohio, Aug 04, 2009 /PRNewswire-FirstCall via COMTEX/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $103.5 million for the second quarter ended June 30, 2009, compared to revenues of $209.2 million for the second quarter of 2008. Net loss was ($22.5) million for the quarter, or ($1.04) per diluted share, compared to net income of $3.1 million, or $0.14 per diluted share, in the prior-year quarter. Fully diluted shares outstanding for the quarter and prior-year period were 21.7 million. Included in the Company's results for the second quarter is a non-cash expense of approximately $10.4 million related to the impairment of certain tangible and intangible assets.

"Market conditions for the second quarter of this year remained weak as our revenues were reduced by approximately 51 percent from the same period last year; however, the detrimental impact to our bottom line continues to be minimized by the significant savings programs we have implemented over the past six to nine months," said Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group. "The sizable impact of our global cost initiatives is outlined best when comparing this second quarter to the first quarter of this year as our revenues dropped by an additional $5.0 million yet operating profit improved by approximately $6.6 million, when excluding the non-cash asset impairments. With this kind of cost structure change in place, we are very excited about the potential when our markets return," added Mr. Dunn.

Revenues for the quarter compared to the prior-year period decreased by approximately $105.7 million, or 50.5%, due primarily to the global economic decline impacting the Company's North American, European and Asian end markets.

Net debt (calculated as total debt less cash and cash equivalents) was $147.3 million at June 30, 2009, when compared to $157.6 million at December 31, 2008.

"Our focus remains on cash generation as evidenced by our dramatic reduction in inventory levels and capital spending as well as our profit improvement over the first three months of this year. These efforts combined with our recent bond exchange and senior credit facility amendment puts us in a better position towards market recovery," said Chad M. Utrup, Chief Financial Officer of Commercial Vehicle Group.

The Company is not providing revenue or earnings estimates at this time.

A conference call to review second quarter results is scheduled for Wednesday, August 5, 2009, at 10:00 a.m. ET. To participate, dial (888) 713-4217 using access code 37957012. You can pre-register for the conference call and receive your pin number at:

https://www.theconferencingservice.com/prereg/key.process?key=PJK8KFQWE

This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Group's Web site at www.cvgrp.com, where it will also be archived for a period of one year.

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 83819775.

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 cost savings initiatives, financial information and market conditions. 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 Company's 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 impact of changes in governmental regulations on the Company's customers or on its business; (vi) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (vii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; and (viii) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2008 and under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009. 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            Six Months Ended
                               June 30,                     June 30,
                               --------                     --------
                          2009         2008            2009         2008
                          ----         ----            ----         ----
                      (unaudited)   (unaudited)    (unaudited)   (unaudited)

    REVENUES             $103,503      $209,240     $212,033     $406,244

    COST OF REVENUES      104,592       185,832      216,371      362,071
                          -------       -------      -------      -------

      Gross (Loss) Profit  (1,089)       23,408       (4,338)      44,173

    SELLING, GENERAL AND
     ADMINISTRATIVE
     EXPENSES              10,366        16,760       23,709       31,778

    AMORTIZATION EXPENSE       97           341          194          686

    GAIN ON SALE OF LONG
     LIVED ASSET                -             -            -       (6,075)

    INTANGIBLE ASSET
     IMPAIRMENT             7,000             -        7,000            -

    LONG-LIVED ASSET
     IMPAIRMENT             3,445             -        3,445            -

    RESTRUCTURING COSTS       235             -        1,947            -
                              ---           ---        -----          ---

      Operating (Loss)
       Income             (22,232)        6,307      (40,633)      17,784

    OTHER (INCOME)
     EXPENSE               (3,505)       (3,786)      (8,397)       5,912

    INTEREST EXPENSE        3,666         3,792        7,310        7,699

    LOSS ON EARLY
     EXTINGUISHMENT
     OF DEBT                    -             -          795            -
                              ---           ---          ---          ---

      (Loss) Income
        Before Provision
        for Income Taxes  (22,393)        6,301      (40,341)       4,173

    PROVISION FOR INCOME
     TAXES                    120         3,218        1,576          618
                              ---         -----        -----          ---

      Net (Loss) Income  $(22,513)       $3,083     $(41,917)      $3,555
                        =========        ======    =========       ======

    (LOSS) EARNINGS PER
     COMMON SHARE:
      Basic                $(1.04)        $0.14       $(1.93)       $0.17
                           ======         =====       ======        =====
      Diluted              $(1.04)        $0.14       $(1.93)       $0.16
                           ======         =====       ======        =====

    WEIGHTED AVERAGE
     SHARES OUTSTANDING:
      Basic                21,747        21,537       21,747       21,537
                           ======        ======       ======       ======
      Diluted              21,747        21,711       21,747       21,676
                           ======        ======       ======       ======



                      COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                      (Amounts in thousands, except per share amounts)

                                                   June 30,     December 31,
                                                     2009           2008
                                                     ----           ----
                                                  (unaudited)   (unaudited)
                           ASSETS
    CURRENT ASSETS:
     Cash and cash equivalents                          $6,109       $7,310
     Accounts receivable, net                           67,573      100,898
     Inventories, net                                   60,971       90,782
     Prepaid expenses                                   12,871       20,428
                                                        ------       ------
     Total current assets                              147,524      219,418
                                                       -------      -------
    PROPERTY, PLANT AND EQUIPMENT, net                  81,408       90,392
    INTANGIBLE ASSETS, net                              27,416       34,610
    OTHER ASSETS, net                                   13,080       10,341
                                                        ------       ------
        TOTAL ASSETS                                  $269,428     $354,761
                                                      ========     ========

          LIABILITIES AND STOCKHOLDERS' INVESTMENT

    CURRENT LIABILITIES:
     Current maturities of long-term debt               $3,404          $81
     Accounts payable                                   47,380       73,451
     Accrued liabilities, other                         36,869       43,417
                                                        ------       ------
     Total current liabilities                          87,653      116,949
                                                        ------      -------
    LONG-TERM DEBT, net of current maturities          150,008      164,814
    PENSION AND OTHER POST-RETIREMENT BENEFITS          20,345       19,885
    OTHER LONG-TERM LIABILITIES                          5,673        9,171
                                                         -----        -----
     Total liabilities                                 263,679      310,819
                                                       -------      -------
    COMMITMENTS AND CONTINGENCIES
    STOCKHOLDERS' INVESTMENT:
     Common stock, $0.01 par value per share;
      30,000,000 shares authorized; 21,746,681
      and 21,746,415 shares issued and outstanding         217          217
     Treasury stock purchased from employees;
      46,474 shares                                       (455)        (455)
     Additional paid-in capital                        182,306      180,848
     Retained loss                                    (160,228)    (118,311)
     Accumulated other comprehensive loss              (16,091)     (18,357)
                                                       -------      -------
      Total stockholders' investment                     5,749       43,942
                                                         -----       ------
        TOTAL LIABILITIES AND STOCKHOLDERS'
         INVESTMENT                                   $269,428     $354,761
                                                      ========     ========



SOURCE Commercial Vehicle Group, Inc.


http://www.cvgrp.com
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