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Commercial Vehicle Group Announces Fourth Quarter 2011 Results

NEW ALBANY, Ohio, Feb. 15, 2012 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $225.8 million for the fourth quarter of 2011, up 42.9% compared to $158.1 million for the prior-year period.  Operating income for the fourth quarter was $16.1 million compared to $5.4 million for the fourth quarter of 2010.  Net income was $10.1 million for the fourth quarter, or $0.36 per diluted share, compared to $4.0 million, or $0.14 per diluted share in the prior-year quarter.  Diluted shares outstanding were 28.2 million for the quarter and for the prior-year period.  

"Our fourth quarter marks our highest revenue and operating income levels since the fourth quarter of 2006 and our eleventh consecutive quarter of operating income improvement, when excluding impairment and restructuring charges.  We are very pleased with our performance this past year and this most recent quarter.  Given our strong financial structure and liquidity position, we remain heavily focused on seeking opportunities that fit our long-term strategic goals of growth and diversification," said Mervin Dunn, President and CEO of Commercial Vehicle Group.    

The Company did not have any outstanding borrowings under its asset-based revolver at December 31, 2011 and, as a result, was not subject to any financial maintenance covenants.  In addition, the Company had approximately $88.0 million of cash on its balance sheet at December 31, 2011 with an additional $37.3 million of availability under its asset-based revolver.  The Company does not expect to trigger the requirement to comply with financial maintenance covenants in 2012.

Revenues for the year ended December 31, 2011 were $832.0 million, an increase of $234.2 million, or 39.2%, compared to the prior-year period, due primarily to the increase in both the North American Class 8 heavy-duty truck market and global construction market, the Company's acquisitions of Bostrom Seating and Stratos Seating and improvements in the general global economic conditions in many of the Company's key end markets.  Operating income for the year ended December 31, 2011 improved to $49.1 million compared to $16.7 million for the prior year.  Net income for the year ended December 31, 2011 was $18.6 million, or $0.66 per diluted share, compared to $6.5 million, or $0.24 per diluted share, in the prior year.  

"Sequentially, when compared to the third quarter of this year, our revenues increased $8.9 million and operating income increased $2.5 million, which represents a 28% contribution margin.  We are very pleased with our results and continued improvement in our revenues and operating earnings as well as our fourth quarter diluted earnings per share of 36 cents, which marks the highest reported level since the fourth quarter of 2006," said Chad M. Utrup, Chief Financial Officer of Commercial Vehicle Group.

A conference call to discuss the contents of this press release is scheduled for Thursday, February 16, 2012, at 10:00 a.m. ET.  To participate, dial (888) 680-0893 using access code 94035283.  You can pre-register for the conference call and receive your pin number at:  

https://www.theconferencingservice.com/prereg/key.process?key=PQVFT3KJG

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 22097403.  

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 expectations for future periods with respect to the Company's financial covenant compliance, long-term strategic goals, 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 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, 2010 and under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.  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 December 31,


Year Ended December 31,



2011


2010


2011


2010



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)











REVENUES

$          225,828


$          158,073


$          832,022


$          597,779











COST OF REVENUES

192,450


137,788


716,430


522,982











    Gross Profit

33,378


20,285


115,592


74,797











SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

17,094


14,699


65,521


56,111











AMORTIZATION EXPENSE

91


60


346


240











RESTRUCTURING COSTS

127


158


669


1,730











    Operating Income

16,066


5,368


49,056


16,716











OTHER EXPENSE (INCOME)

363


(979)


353


(4,780)











INTEREST EXPENSE

5,179


3,995


19,570


16,834











LOSS ON EARLY EXTINGUISHMENT OF DEBT

-


-


7,448


-











Income Before Provision (Benefit) for Income Taxes

10,524


2,352


21,685


4,662











PROVISION (BENEFIT ) FOR INCOME TAXES

418


(1,624)


3,095


(1,825)











NET INCOME

$            10,106


$              3,976


$            18,590


$              6,487











Less:  Non-controlling interest in subsidiary's earnings

(15)


-


(15)


-











NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$            10,121


$              3,976


$            18,605


$              6,487











INCOME PER COMMON SHARE:









Basic

$                0.36


$                0.14


$                0.67


$                0.25


Diluted

$                0.36


$                0.14


$                0.66


$                0.24











WEIGHTED AVERAGE SHARES OUTSTANDING:









Basic

28,088


27,660


27,848


26,247


Diluted

28,195


28,210


28,190


26,994













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




December 31,


December 31,

2011


2010


(Unaudited)


(Unaudited)

ASSETS

CURRENT ASSETS:




Cash

$          87,955


$          42,591

Accounts receivable, net

130,297


91,101

Inventories, net

79,423


66,622

Other current assets

9,307


11,109

Total current assets

306,982


211,423

PROPERTY, PLANT AND EQUIPMENT, net

76,672


59,321

INTANGIBLE ASSETS, net

7,315


3,848

OTHER ASSETS, net

15,915


11,615

         TOTAL ASSETS

$        406,884


$        286,207





LIABILITIES AND EQUITY





CURRENT LIABILITIES:




Accounts payable

$          74,239


$          61,216

Accrued liabilities

38,960


34,130

Total current liabilities

113,199


95,346

LONG-TERM DEBT

250,000


164,987

PENSION AND OTHER POST-RETIREMENT BENEFITS

28,013


23,343

OTHER LONG-TERM LIABILITIES

2,897


2,643

Total liabilities

394,109


286,319

COMMITMENTS AND CONTINGENCIES




STOCKHOLDERS’ EQUITY:




Preferred stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding;
common stock, $0.01 par value per share; 60,000,000 shares authorized; 28,170,929 and
27,756,759 shares issued and outstanding

285


280

Treasury stock purchased from employees; 426,870 and 285,208 shares, respectively

(4,059)


(2,851)

Additional paid-in capital

219,112


215,491

Retained loss

(174,754)


(193,359)

Accumulated other comprehensive loss

(27,818)


(19,673)

     Total stockholders’ equity

12,766


(112)

Non-controlling interest

9


-

Total equity

12,775


(112)

         TOTAL LIABILITIES AND EQUITY

$        406,884


$        286,207















SOURCE Commercial Vehicle Group, Inc.

John Hyre, Investor Relations, Commercial Vehicle Group, Inc., +1-614-289-5157

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