CVG Reports Fourth Quarter and Full Year 2022 Results

March 6, 2023

Fourth quarter sales of $235 million, a 2.6% increase year-over-year
Net loss $32.0 million , adjusted EBITDA of $13.3 million, a 3.1% increase in adjusted EBITDA
Continued price realization to offset inflation

Business transformation continues, record annual sales of $982 million
In 2023, Company expects to realize ~$150 million in new business revenue
Strong free cash flow and debt paydown exceeded target at ~$43 million

NEW ALBANY, Ohio, March 06, 2023 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022 Highlights (Compared with prior-year period, where comparisons are noted)

  • Revenue of $234.9 million, up 2.6% as demand and price increases came through as expected. New business revenues fully offsetting softness in Industrial Automation (formerly known as Warehouse Automation). New business revenue was approximately $20 million in the quarter and $130 million for the full year.
  • Net loss of $32.0 million, or $0.98 per diluted share was caused by non-cash charges related to tax valuation allowance changes, a pension settlement to terminate the Company’s U.S. legacy pension plan, and a $10.4 million non-cash charge in Industrial Automation segment due to modest outlook for the business. The Company no longer has a pension liability in the United States.
  • Adjusted EBITDA of $13.3 million, up $0.4 million or 3.1%. Our pricing actions, solid demand, and new business revenues in our three vehicle-related segments are fully offsetting slowdown in the Industrial Automation segment. Startup expenses on new business ramp-ups were high at $3.3 million in the quarter, but set the stage for a much improved 2023.
  • Price negotiations during the quarter secured further increases beginning January 2023.

Full Year 2022 Highlights (Compared with prior-year period, where comparisons are noted)

  • Revenue of $981.6 million, an annual record for the Company driven by the three vehicle segments, current year contribution of new business revenue, and higher prices to offset inflation.
  • Continued to gain new business on a wider spectrum of Non-Class 8 vehicles, with a wider set of customers, and new products. The Company secured an additional $150 million of new business wins during the year; these wins are concentrated in our Electrical Systems product lines. One-time startup costs were expensed as incurred and were $12.3 million in 2022 vs. $6.1 million in 2021.
  • Operating income of $20.1 million, down $29.4 million, and adjusted operating income of $36.6 million, down $16.6 million. The decrease in operating income was due to the lag effect of price recovery on ongoing business and funding a bigger startup program (approximately $6 million higher). The Company's price recovery efforts are fully offsetting the cost of inflation and have curtailed growth programs tied to high-cost startups.
  • Full-year 2022 debt paydown was $43.2 million, and net debt declined to $120.6 million.

Harold Bevis, President and Chief Executive Officer of CVG, said, “We had a busy quarter of completing a good amount of new business startups, and negotiating substantial improvements in our price recovery program. The Industrial Automation business remains small with a modest outlook, so we took the opportunity to close a plant, right-size our payroll, and right-size our inventory profile."

"In 2022, we delivered record revenues, had a record amount of new vehicle platform startups, and secured another approximately $150 million of new business wins on an ever-expanding lineup of vehicles. We believe that we can continue to add greater than $100 million of new business wins per year. In 2022, we also exceeded our goal of paying down debt, reduced debt by $43 million and ended the year with $121 million of net debt. We remain focused on higher levels of EBITDA, lower working capital, strategic capex, and lower debt levels."

“We have already doubled the size of the Electrical Systems business on a pro-forma basis. The secular growth of the Electric Vehicle market is helping us as there is a lot of vehicle development activity globally and we are in an opportunity-rich environment. Our goal is to be known as a nimble, high-service growth company and progressively add new targeted business, concentrated in Electrical Systems."

“Our transformation plan is working and we are increasing the proportion of our revenues and earnings coming from our Electrical Systems business. Cumulatively, in the last three years, we have secured new growth with 300+ new programs and 115+ new and existing customers.”

“The 2023 cost reduction program is over $30 million, comprised of approximately 350 projects globally. We are committed to lowering our cost structure, mainly in the non-growth areas, and mainly away from high-cost countries. We believe we can accomplish $90 million of cost-outs over the next three years. The Company is also announcing an ESG program of which a primary goal is to reduce its carbon footprint by 50% over the next 10 years."

“We are expecting 2023 to be a year of record revenue, higher EBITDA, continued free cash flow and debt paydown, $30 million of cost-out, and at least $100 million of targeted new business wins, concentrated in Electrical Systems.”

Andy Cheung, Chief Financial Officer, added, “We delivered another quarter of strong top-line growth and, we have taken major actions to position the Company for strong 2023 performance. We have incurred additional startup costs to support the ramp up of our biggest platforms. Additionally, we made several non-cash GAAP balance sheet adjustments in the quarter, exceeded the high end of our target debt paydown range, and achieved our working capital reduction targets for the year.”

We recorded the following special items during the quarter:

  • We completed the restructuring of the industrial automation business and as a result recognized a non-cash write-down of $10.4 million in industrial automation inventory.
  • As a result of evaluating our global deferred tax assets, we took a net non-cash charge of $14.7 million.
  • We recorded a charge of $8.1 million related to the termination of the Company’s U.S. legacy pension plan.

"Giving effect to the tax adjustments noted above, our actual cash taxes were flat in 2022 versus 2021 at approximately $4.0 million.”

Financial Results
(amounts in millions except per share data and percentages )

  Fourth Quarter    
  2022   2021   Change
Revenues $ 234.9     $ 228.9     2.6 %
Gross profit $ 12.4     $ 23.4     (47.0 )%
Gross margin   5.3 %     10.2 %      
Adjusted gross profit 1 $ 23.9     $ 24.5     (2.4 )%
Adjusted gross margin 1   10.2 %     10.7 %      
Operating income (loss) $ (4.0 )   $ 6.5     NM 2
Operating margin (1.7 )%     2.8 %      
Adjusted operating income 1 $ 8.4     $ 8.5     (1.2 )%
Adjusted operating margin 1   3.6 %     3.7 %      
Net income (loss) $ (32.0 )   $ 2.6     NM 2
Adjusted net income (loss) 1 $ 1.4     $ 4.1     (65.9 )%
Earnings (loss) per share, diluted $ (0.98 )   $ 0.08     NM 2
Adjusted earnings (loss) per share, diluted 1 $ 0.04     $ 0.13     (69.2 )%
Adjusted EBITDA 1 $ 13.3     $ 12.9     3.1 %
Adjusted EBITDA margin 1   5.7 %     5.6 %      
1 See Appendix A for GAAP to Non-GAAP reconciliation    
2 Not meaningful    

Consolidated Results

Fourth Quarter 2022 Results

  • Fourth quarter 2022 revenues were $234.9 million compared to $228.9 million in the prior year period, an increase of 2.6%. The increase in revenues is due to increased pricing to offset material cost increases. Foreign currency translation unfavorably impacted fourth quarter 2022 revenues by $6.3 million, or by 2.7%.
  • Operating loss for the fourth quarter 2022 was $4.0 million compared to operating income of $6.5 million in the prior year period. The decrease in operating income was primarily due to special costs, including restructuring and an inventory write-down due to decreased demand in the Industrial Automation segment. Foreign currency translation also unfavorably impacted fourth quarter 2022 operating loss by $0.9 million. Excluding special costs, the fourth quarter of 2022 adjusted operating income was $8.4 million, down 1.2%. Adjusted operating income includes $1.8 million of higher than expected startup costs on programs which will benefit future periods.
  • Interest expense was $2.9 million and $1.7 million for the fourth quarter ended December 31, 2022 and 2021, respectively. The increase in interest expense was due to higher interest rates, and a higher average debt balance during the fourth quarter 2022 compared to fourth quarter 2021.
  • Net loss was $32.0 million, or $(0.98) per diluted share, for the fourth quarter 2022 compared to net income of $2.6 million, or $0.08 per diluted share, in the prior year period.

At December 31, 2022, the Company had no outstanding borrowings on its revolving credit facility, $31.8 million of cash and $148.8 million availability from the revolving credit facility, resulting in total liquidity of $180.6 million.

Segment Results

Fourth Quarter 2022 Results (Compared with prior-year period, where comparisons are noted)

Vehicle Solutions Segment

  • Revenues were $142.8 million, an increase of 12.9% primarily resulting from material cost pass-through and increased sales volume.
  • Operating income for the fourth quarter 2022 was $3.7 million, a decrease of 26.8%. Primarily due to a lag in price recovery versus cost inflation and higher than planned start up costs. Excluding special costs, the fourth quarter of 2022 adjusted operating income decreased to $4.1 million, or 24.2%, as compared to the fourth quarter 2021.

Electrical Systems Segment

  • Revenues were $47.1 million, an increase of 23.1%, primarily resulting from material cost pass-through and contributions from new business wins.
  • Operating income was $5.4 million, an increase of $3.7 million primarily attributable to material cost pass-through and favorable volume. Adjusted operating income was $5.5 million, an increase of 103.2%, excluding special costs.

Aftermarket and Accessories Segment

  • Revenues were $34.1 million, an increase of 27.8%, primarily resulting from increased sales volume and increased pricing to offset material cost pass-through.
  • Operating income was $3.2 million, an increase of 69.2%. The increase in operating income was primarily attributable to the increase in pricing to offset material cost pass-through.

Industrial Automation Segment

  • Revenues were $11.0 million, a decrease of 70.8%, due to lower demand levels. Operating loss was $11.9 million, compared to operating income of $3.1 million in the prior year. The operating loss was primarily attributable to lower sales volumes and an inventory charge of $10.4 million. Adjusted operating loss was $0.5 million, a decrease of 114.5%. The business restructuring was primarily completed during the quarter.

2023 Outlook

According to ACT Research, 2023 North American Class 8 truck production levels are expected to be at 305,000 units and Class 5-7 production are expected to be at 242,000 units. Estimates from FTR for 2023 are 322,000 units, slightly higher than ACT Research for Class 8 truck builds. The 2022 actual Class 8 truck builds according to the ACT Research was 315,128 units.

According to Interact Analysis, the Global Off-Highway vehicle market is expected to increase approximately 4% to 6.2 million units in 2023 from 5.9 million units in 2022.   Beyond 2023, the Off-Highway vehicle market is expected to grow in the 4-5% range.   We expect our legacy business growth rates to be in line with this outlook.

Industry forecasts are expecting a 4% growth in 2023 for North American aftermarket truck parts. Compounded annual growth of 4.1% is forecasted for 2023-2027​.   ​

GAAP to Non-GAAP Reconciliation

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

Conference Call

A conference call to discuss this press release is scheduled for Tuesday, March 7, 2023, at 10:00 a.m. ET. Management intends to reference the Q4 2022 Earnings Call Presentation during the conference call. To participate, dial (888) 396-8049 using conference code 33489158. International participants dial (416) 764-8646 using conference code 33489158.

This call is being webcast and can be accessed through the “Investors” section of CVG’s website 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 (877) 674-7070 using access code 489158 and international callers can dial (416) 764-8692 using access code 489158.

Company Contact

Andy Cheung
Chief Financial Officer
CVG
IR@cvgrp.com

Investor Relations Contact

Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

About CVG

At CVG we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. 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”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, including the short-term and long-term impact of the COVID-19 pandemic on our business and the global supply chain, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company’s prospects in the wire harness, industrial automation and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment, including inflation and labor shortages 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 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 those included in the Company’s filings with the SEC. 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
Three and Twelve Months Ended December 31, 2022 and 2021
(Unaudited)
(Amounts in thousands, except per share amounts)

  Three Months Ended   Twelve Months Ended
  2022   2021   2022   2021
Revenues $ 234,918     $ 228,905   $ 981,553     $ 971,578  
Cost of revenues   222,517       205,551     895,048       852,591  
Gross profit   12,401       23,354     86,505       118,987  
Selling, general and administrative expenses   16,406       16,877     66,361       69,406  
Operating income (loss)   (4,005 )     6,477     20,144       49,581  
Other (income) expense   7,665       249     10,463       (878 )
Interest expense   2,935       1,690     9,827       11,179  
Loss on extinguishment of debt             921       7,155  
Income (loss) before provision for income taxes   (14,605 )     4,538     (1,067 )     32,125  
Provision (benefit) for income taxes   17,384       1,902     20,904       8,393  
Net income (loss) $ (31,989 )   $ 2,636   $ (21,971 )   $ 23,732  
Earnings (loss) per common share              
Basic $ (0.98 )   $ 0.08   $ (0.68 )   $ 0.75  
Diluted $ (0.98 )   $ 0.08   $ (0.68 )   $ 0.72  
Weighted average shares outstanding              
Basic   32,567       31,705     32,334       31,501  
Diluted   32,567       32,753     32,334       32,790  


COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2022 and 2021  
(Unaudited)
(Amounts in thousands, except per share amounts)

ASSETS 2022   2021
Current Assets:      
Cash $ 31,825     $ 34,958  
Accounts receivable, net   152,626       174,472  
Inventories   142,542       141,045  
Other current assets   12,582       20,201  
Total current assets   339,575       370,676  
Property, plant and equipment, net   67,805       63,126  
Operating lease right-of-use asset, net   26,372       26,116  
Intangible assets, net   14,620       18,283  
Deferred income taxes, net   12,275       24,108  
Other assets   9,621       5,384  
TOTAL ASSETS $ 470,268     $ 507,693  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current Liabilities:      
Accounts payable $ 122,091     $ 101,915  
Current operating lease liabilities   7,421       9,048  
Accrued liabilities and other   35,388       41,792  
Current portion of long-term debt   10,938       9,375  
Total current liabilities   175,838       162,130  
Long-term debt   141,499       185,581  
Long-term operating lease liabilities   19,422       18,519  
Pension and other post-retirement liabilities   8,428       9,905  
Other long-term liabilities   5,041       4,905  
Total liabilities   350,228       381,040  
       
Stockholders’ equity:      
Preferred stock          
Common stock   328       321  
Treasury stock, at cost   (14,514 )     (13,172 )
Additional paid-in capital   261,371       255,566  
Retained deficit   (95,595 )     (73,624 )
Accumulated other comprehensive loss   (31,550 )     (42,438 )
Total stockholders’ equity   120,040       126,653  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 470,268     $ 507,693  


COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
BUSINESS SEGMENT FINANCIAL INFORMATION
Three and Twelve Months Ended December 31, 2022 and 2021
(Unaudited)
(Amounts in thousands)

  Three Months Ended
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket and
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
    2022     2021     2022     2021     2022     2021     2022       2021     2022       2021       2022       2021
Revenues $ 142,765   $ 126,428   $ 47,054   $ 38,229   $ 34,141   $ 26,714   $ 10,958     $ 37,534   $     $     $ 234,918     $ 228,905
Gross profit   10,322     11,694     7,136     3,229     5,494     3,375     (10,551 )     5,056                 12,401       23,354
Selling, general & administrative expenses   6,661     6,690     1,778     1,567     2,289     1,481     1,322       1,907     4,356       5,232       16,406       16,877
Operating income (loss) $ 3,661   $ 5,004   $ 5,358   $ 1,662   $ 3,205   $ 1,894   $ (11,873 )   $ 3,149   $ (4,356 )   $ (5,232 )   $ (4,005 )   $ 6,477


  Twelve Months Ended
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket and
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
    2022     2021     2022     2021     2022     2021     2022       2021     2022       2021       2022     2021
Revenues $ 579,731   $ 498,913   $ 180,404   $ 168,971   $ 133,671   $ 115,782   $ 87,747     $ 187,912   $     $     $ 981,553   $ 971,578
Gross profit   45,979     50,608     23,993     20,773     18,836     17,980     (2,303 )     29,669           (43 )     86,505     118,987
Selling, general & administrative expenses   24,930     26,959     5,775     6,213     6,925     5,889     5,564       6,106     23,167       24,239       66,361     69,406
Operating income (loss) $ 21,049   $ 23,649   $ 18,218   $ 14,560   $ 11,911   $ 12,091   $ (7,867 )   $ 23,563   $ (23,167 )   $ (24,282 )   $ 20,144   $ 49,581


COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
Appendix A: Reconciliation of GAAP to Non-GAAP Financial Measures
Three and Twelve Months Ended December 31, 2022 and 2021
(Unaudited)
(Amounts in thousands, except per share amounts and percentages)

  Three Months Ended   Twelve Months Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Gross profit $ 12,401     $ 23,354     $ 86,505     $ 118,987  
Inventory adjustment   10,421             10,421        
Restructuring   1,077       1,186       4,035       1,186  
Adjusted gross profit $ 23,899     $ 24,540     $ 100,961     $ 120,173  
% of revenues   10.2 %     10.7 %     10.3 %     12.4 %


  Three Months Ended   Twelve Months Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Operating income (loss) $ (4,005 )   $ 6,477     $ 20,144     $ 49,581  
Restructuring   1,978       1,895       5,365       1,895  
Inventory adjustment   10,421             10,421        
Deferred consideration purchase accounting         121       341       609  
Investigation                     394  
Executive transition               329       683  
Total operating income adjustments   12,399       2,016       16,456       3,581  
Adjusted operating income (loss) $ 8,394     $ 8,493     $ 36,600     $ 53,162  
% of revenues   3.6 %     3.7 %     3.7 %     5.5 %


  Three Months Ended   Twelve Months Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Net income (loss) $ (31,989 )   $ 2,636     $ (21,971 )   $ 23,732  
Pre-tax adjusting items:              
Operating income (loss) adjustments   12,399       2,016       16,456       3,581  
Hryvnia fair value adjustments on forward exchange contracts   (134 )           (36 )      
Loss on Early Extinguishment of Debt               921       7,155  
Other adjusting items:              
Pension settlement   8,086             9,202        
Pension settlement - tax adjustment   1,462             1,462        
Tax Valuation Allowance   14,666             14,666        
Adjusted (benefit) provision for income taxes1   (3,066 )     (504 )     (4,335 )     (2,684 )
Adjusted net income (loss) $ 1,424     $ 4,148     $ 16,365     $ 31,784  
               
Diluted EPS $ (0.98 )   $ 0.08     $ (0.68 )   $ 0.72  
Adjustments to diluted EPS $ 1.02     $ 0.05     $ 1.19     $ 0.25  
Adjusted diluted EPS $ 0.04     $ 0.13     $ 0.51     $ 0.97  

1 Reported Tax (Benefit) Provision adjusted for tax effect of at 25% of pre-tax adjusting items.

  Three Months Ended   Twelve Months Ended
  December 31, 2022   December 31, 2021   December 31, 2022   December 31, 2021
Net income (loss) $ (31,989 )   $ 2,636     $ (21,971 )   $ 23,732  
Interest expense   2,935       1,690       9,827       11,179  
Provision (benefit) for income taxes   17,384       1,902       20,904       8,393  
Depreciation expense   3,727       3,758       14,770       15,059  
Amortization expense   848       858       3,411       3,436  
EBITDA $ (7,095 )   $ 10,844     $ 26,941     $ 61,799  
% of revenues (3.0 )%     4.7 %     2.7 %     6.4 %
               
EBITDA adjustments              
Restructuring   1,978       1,895       5,365       1,895  
Inventory adjustment   10,421             10,421        
Pension settlement   8,086             9,202        
Deferred consideration purchase accounting         121       341       609  
Hryvnia fair value adjustments on forward exchange contracts   (134 )           (36 )      
Investigation                     394  
Executive transition               329       683  
Loss on Early Extinguishment of Debt               921       7,155  
Adjusted EBITDA $ 13,256     $ 12,860     $ 53,484     $ 72,535  
% of revenues   5.7 %     5.6 %     5.4 %     7.5 %


COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
Appendix B: Segment Reconciliation of GAAP to Non-GAAP Financial Measures
Three and Twelve Months Ended December 31, 2022 and 2021
(Unaudited)
(Amounts in thousands, except percentages)

  Three Months Ended December 31, 2022
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket &
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
Operating income (loss) $ 3,661     $ 5,358     $ 3,205     $ (11,873 )   $ (4,356 )   $ (4,005 )
Restructuring   481       103       469       925             1,978  
Inventory adjustment                     10,421             10,421  
Adjusted operating income (loss) $ 4,142     $ 5,461     $ 3,674     $ (527 )   $ (4,356 )   $ 8,394  
% of revenues   2.9 %     11.6 %     10.8 %   (4.8)        %         3.6 %


  Twelve Months Ended December 31, 2022
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket &
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
Operating income (loss) $ 21,049     $ 18,218     $ 11,911     $ (7,867 )   $ (23,167 )   $ 20,144  
Restructuring   751       674       1,909       1,725       306       5,365  
Inventory adjustment                     10,421             10,421  
Deferred consideration purchase accounting                     341             341  
Executive transition                           329       329  
Adjusted operating income (loss) $ 21,800     $ 18,892     $ 13,820     $ 4,620     $ (22,532 )   $ 36,600  
% of revenues   3.8 %     10.5 %     10.3 %     5.3 %         3.7 %


  Three Months Ended December 31, 2021
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket &
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
Operating income (loss) $ 5,004     $ 1,662     $ 1,894     $ 3,149     $ (5,232 )   $ 6,477  
Restructuring   459       1,025             364       47       1,895  
Deferred consideration purchase accounting                     121             121  
Adjusted operating income (loss) $ 5,463     $ 2,687     $ 1,894     $ 3,634     $ (5,185 )   $ 8,493  
% of revenues   4.3 %     7.0 %     7.1 %     9.7 %         3.7 %


  Twelve Months Ended December 31, 2021
  Vehicle
Solutions
  Electrical
Systems
  Aftermarket &
Accessories
  Industrial
Automation
  Corporate /
Other
  Total
Operating income (loss) $ 23,649     $ 14,560     $ 12,091     $ 23,563     $ (24,282 )   $ 49,581  
Restructuring   459       1,025             364       47       1,895  
Deferred consideration purchase accounting                     609             609  
Investigation                           394       394  
Executive transition                           683       683  
Adjusted operating income (loss) $ 24,108     $ 15,585     $ 12,091     $ 24,536     $ (23,158 )   $ 53,162  
% of revenues   4.8 %     9.2 %     10.4 %     13.1 %         5.5 %


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


Primary Logo

Source: Commercial Vehicle Group, Inc.