News Details

NEW ALBANY, Ohio, Aug. 4, 2015 /PRNewswire/ -- Commercial Vehicle Group, Inc. (the "Company" or "CVG") (Nasdaq: CVGI) today reported financial results for the second quarter ended June 30, 2015.

Consolidated Results

• Second quarter 2015 revenues were $217.6 million compared to $216.0 million in the prior year period, an increase of 1 percent.  Foreign currency exchange translation, due to the relative strength of the U.S. Dollar, negatively impacted second quarter 2015 sales compared to the prior year period by $5.5 million. As adjusted for foreign currency exchange translation, second quarter 2015 revenues increased by 3.3 percent as compared to the prior year period.

• Operating income in the second quarter was $11.6 million compared to operating income of $9.0 million in the prior year period, an increase of 29 percent period over period.  Second quarter 2015 and 2014 results include $0.5 million and $0.1 million, respectively, of costs associated with the closure of our Tigard, Oregon facility. 

• Net income was $3.2 million in the second quarter, or $0.11 per diluted share, compared to net income of $2.7 million, or $0.09 per diluted share in the prior year period.  Earnings per share, as adjusted for special items, were $0.12 per diluted share in the second quarter, compared to $0.09 per diluted share in the prior year period.

For the quarter ended June 30, 2015, our effective tax rate was 51%. Our effective tax rate is adversely influenced by a disproportionate amount of pretax earnings arising in North America, more specifically in the United States, and by deferred tax asset valuation allowances in certain or our foreign subsidiaries.  For 2015, we expect our effective tax rate to be approximately 45%.

For the quarter ended June 30, 2015, the Company did not have any borrowings under its asset-based revolver and therefore was not subject to any financial maintenance covenants.  At June 30, 2015, the Company had liquidity of $125.7 million; $88.6 million of cash and $37.1 million of availability from its asset based revolving credit facility.

Rich Lavin, President and CEO of Commercial Vehicle Group, stated, "We had another solid quarter with improved operating income period over period. Additionally, year to date sales increased over 5 percent as compared to last year as we continue to benefit from favorable production volumes in the North American medium- and heavy-duty truck markets.  Sales in our Global Truck and Bus segment increased 12 percent in the second quarter as compared to the same period last year. We continue to experience headwinds in the global construction and agriculture markets we serve, but with the recent addition of Joseph Saoud, President of our Global Construction and Agriculture Segment, we are intensifying our product development and sales efforts and expect to strengthen our position in the global construction and agriculture markets. Our growth potential in all of our core markets is significant and the entire organization is highly focused on our long-term strategy and the value-driving objectives of CVG 2020."

Tim Trenary, Chief Financial Officer of Commercial Vehicle Group, stated, "As a result of our cost discipline and operational excellence initiatives, we continue to improve our margins even as we invest in talent, innovation, new product development, and sales initiatives.  We are pleased to report that our second quarter of 2015 represents the fifth consecutive quarter of margin improvement, with our operating income margin now at 5.3 percent."

Segment Results

Global Truck and Bus Segment

• Revenues for the Global Truck and Bus Segment for the second quarter of 2015 were $149.3 million compared to $133.0 million for the prior year period, an increase of 12.3 percent primarily resulting from increased medium- and heavy-duty truck production volumes in North America.  Foreign currency exchange translation negatively impacted second quarter 2015 sales by $0.8 million.

• Operating income for the second quarter was $15.1 million compared to operating income of $11.6 million for the prior year period, primarily as a result of increased sales period over period.  Second quarter 2015 and 2014 results include $0.5 million and $0.1 million, respectively, of costs associated with the closure of our Tigard facility.  

Global Construction and Agriculture Segment

• Revenues for the Global Construction and Agriculture Segment in the second quarter of 2015 were $68.4 million compared to $83.0 million in the prior year period, a decrease of 17.6 percent.  Foreign currency exchange translation negatively impacted second quarter 2015 sales by $4.7 million, or 5.7 percent. The global construction and agriculture end markets for which we manufacture products were down in the second quarter of 2015 as compared to the prior year period. 

• Operating income in the second quarter of 2015 was $2.8 million compared to $4.7 million in the prior year period primarily as a result of decreased revenue.

GAAP to Non-GAAP Reconciliation

A reconciliation of GAAP to non-GAAP financial measures is included as Appendix A to this release.

2015 End Market Outlook

Management estimates that 2015 North American Class 8 truck production levels will be in the range of 320,000 – 330,000 units: up from our March 2015 estimate of 290,00 – 310,000 units; and up from the 297,000 units produced in 2014.  We expect equipment production to remain soft for the remainder of 2015 in the global construction and agriculture end markets we serve.

Conference Call    

A conference call to discuss this press release is scheduled for Wednesday, August 5, 2015, at 10:00 a.m. ET. To participate, dial (866) 300-8704 using conference code 82471098. 

This call is being webcast by Nasdaq and can be accessed at Commercial Vehicle Group's Web site 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, dial (855) 859-2056 using access code 82471098. 

About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. is a Delaware (USA) corporation. We were formed as a privately-held company in August 2000. We became a publicly held company in 2004. The Company (and its subsidiaries) is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including the medium-and heavy-duty truck market, the medium-and heavy-construction vehicle market, and the military, bus, agriculture, specialty transportation, mining, industrial equipment and off-road recreational markets.   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 its plans to improve financial results and enhance the Company, the future of the Company's end markets, Class 8 North America build rates,  performance of the global construction equipment business, expected cost savings, enhanced shareholder value and other economic benefits of the consulting services, the Company's initiatives to address customer needs, organic growth, the Company's economic growth plans to focus on certain segments and markets 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 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, construction, aftermarket, military, bus, agriculture and other  markets; (v) the Company's failure to complete or successfully integrate 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 its financial position; (ix) the Company's ability to comply with the financial covenants in its revolving credit facility; (x) the Company's ability to realize the benefits of its cost reduction and strategic initiatives;  (xi) a material weakness in our internal control over financial reporting which could, if not remediated, result in material misstatements in our financial statements; (xii) volatility and cyclicality in the commercial vehicle market adversely affecting us; and (xiii) 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, 2014.  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.

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 and charges 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 comparable reporting periods. However, 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, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.

SOURCE Commercial Vehicle Group, Inc.

Terry Hammett, Investor Relations, Commercial Vehicle Group, Inc., (614) 289-5384