Core Molding (CMT) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Company Participants Sandy Martin - Managing DirectorDavid Duvall - President , CEO & DirectorAlex Panda - VP, Corporate Controller Conference Call Participants Chip Moore - Managing Director & Senior Research Analyst Operator Good morning, everyone. Welcome to the Core Molding Technologies First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer sessio ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $61 million, a decrease of 21.4% year-over-year, primarily due to lower demand in the medium and heavy-duty truck vertical and powersports [11][12] - Gross margin expanded to 19.2%, up 220 basis points year-over-year and 340 basis points sequentially, driven by a favorable product mix and operational efficiencies [11][12] - Adjusted EBITDA margin was 11.7%, an improvement from 11.2% in the previous year [15] - Net income for Q1 was $2.2 million, or diluted EPS of $0.25, compared to $3.8 million or diluted EPS of $0.43 in the same period last year [14] Business Line Data and Key Metrics Changes - The company secured over $15 million in annual new business, including $10 million in the building products sector and $5 million in the electric vehicle battery sector [8][10] - The building products sector is expected to generate approximately $5 million in revenue in 2025, with demand beginning in Q2 [8] - The electric vehicle battery program represents the second engagement with a customer, showcasing the effectiveness of customer-focused strategies [10] Market Data and Key Metrics Changes - Sales were down primarily due to lower demand in the medium and heavy-duty truck market, offset somewhat by growth in building products [11][12] - The company expects revenues for the first half of 2025 to decline between 10-15%, a revision from previous guidance of a 5-10% decline [18] Company Strategy and Development Direction - The company's strategy for 2025 focuses on investing for growth, particularly in proprietary sheet molding compound (SMC) capabilities [8][10] - The company aims to leverage its production capacity to generate annual revenues of at least $450 million [16] - The capital allocation strategy emphasizes organic and inorganic growth through acquisitions, managing debt, and share repurchases [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties affecting global manufacturing but expressed confidence in the company's ability to execute and capitalize on opportunities [7][22] - The company is monitoring global trade dynamics and potential regulatory changes, particularly regarding the EPA's 2027 rule [21][22] - Despite uncertainties, management believes gross margins can be maintained in the 17% to 19% range for the full year [22] Other Important Information - The company repurchased approximately 63,000 shares at an average price of $14.5 during the first quarter [17] - As of March 31, 2025, the company had a strong liquidity position of $94.5 million, including $44.5 million in cash [15][16] Q&A Session Summary Question: Insights on new business growth and SMC capacity - Management expressed excitement about SMC, highlighting its potential in the construction industry and the shorter quote-to-cash cycle [28][29] Question: Advantages of US and Mexico footprint - Management confirmed that having production capacity in both the US and Mexico positions the company well to capitalize on opportunities as manufacturing returns domestically [34][35] Question: Updates on new markets like medical and turf protection - Management reported ongoing success in turf protection and medical markets, with products already in production and further opportunities being explored [36][37] Question: Details on large press upgrades - Management is evaluating upgrades to older presses to enhance speed and efficiency through modern technology [39][40] Question: Thoughts on acquisition valuations - Management noted that acquisition multiples are currently between six and seven, indicating a competitive landscape for potential acquisitions [47]

Core Molding Technologies (CMT) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -24.24%. A quarter ago, it was expected that this maker of fiber reinforced plastics would post earnings of $0.12 per share when it actually produced earnings of $0.10, delivering a surprise of -16.67%.Ove ...

FOR IMMEDIATE RELEASE Core Molding Technologies Reports Fiscal 2025 First Quarter Results COLUMBUS, OH, May 8, 2025 – Core Molding Technologies, Inc. (NYSE American: CMT) ("Core Molding", "Core" or the "Company"), a leading engineered materials company specializing in molded structural products, principally in building products, industrial and utilities, medium and heavy-duty truck and powersports industries across the United States, Canada and Mexico, today reported financial and operating results for the ...

Focused Operational Execution Delivered Margin Improvements, Profitability, and Positive Free Cash FlowCOLUMBUS, Ohio, May 08, 2025 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE American: CMT) (“Core Molding”, “Core” or the “Company”), a leading engineered materials company specializing in molded structural products, principally in building products, industrial and utilities, medium and heavy-duty truck and powersports industries across the United States, Canada and Mexico, today reported financ ...

COLUMBUS, Ohio., April 28, 2025 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE American: CMT) (“Core Molding”, “Core” or the “Company”), a leading engineered materials company specializing in molded structural products, principally in building products, utilities, transportation and powersports industries across North America, today announces that it will release its first quarter fiscal 2025 results on Thursday, May 8, 2025, before the market opens. In conjunction with the release, the Company h ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Core Molding Technologies operates as a single segment, molding thermoplastic and thermoset products for diverse markets, with operations across six facilities in the U.S., Canada, and Mexico - The company operates as a single segment in engineered materials, molding thermoplastic and thermoset products for various markets, with six production facilities across the U.S., Canada, and Mexico[11](index=11&type=chunk) Major Customer Sales Concentration (as % of Total Sales) | Customer | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | BRP | 10% | 14% | 14% | | International | 22% | 20% | 17% | | PACCAR | 13% | 10% | 10% | | Yamaha | 10% | 9% | 6% | | Volvo | 14% | 16% | 14% | Sales by Country (in thousands) | Country | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | United States | $187,973 | $234,504 | $231,391 | | Mexico | $97,896 | $105,818 | $113,245 | | Canada | $11,145 | $11,980 | $26,829 | | Other | $5,364 | $5,436 | $5,911 | | **Total** | **$302,378** | **$357,738** | **$377,376** | - As of December 31, 2024, the company employed **1,570** people, with **67.4%** of the workforce covered by collective bargaining agreements expiring between 2025 and 2026[40](index=40&type=chunk)[41](index=41&type=chunk) Capital Expenditures and R&D (in millions) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Capital Expenditures | $11.5 | $9.1 | $16.6 | | Research & Development | $1.9 | $1.7 | $1.6 | [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from customer concentration, cyclical industry demand, raw material price volatility, labor relations, foreign operations, and cybersecurity threats - The company faces significant customer concentration risk, with five customers accounting for approximately **69%** of total sales in 2024[52](index=52&type=chunk) - A significant customer, Volvo (**14%** of 2024 sales), is transitioning to new programs not supported by the company, impacting business from late 2024 through 2026[54](index=54&type=chunk) - The business is exposed to the highly cyclical North American heavy and medium-duty truck industry, which accounted for **56%** of product sales in 2024[56](index=56&type=chunk) - As of December 31, 2024, approximately **67.4%** of the workforce is unionized, with agreements expiring in 2025 and 2026, posing work stoppage risks[67](index=67&type=chunk)[68](index=68&type=chunk) - The company faces risks from evolving U.S. trade policies, including potential new tariffs on imports from Mexico and Canada, which could increase costs[71](index=71&type=chunk) - Cybersecurity incidents pose a growing risk, potentially disrupting operations, compromising confidential information, and harming financial performance[105](index=105&type=chunk)[106](index=106&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None [Cybersecurity](index=20&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cyber risk management program integrated into its ERM, overseen by the senior executive team and Board, with no material incidents reported to date - The company has a cyber risk management program integrated into its ERM, overseen by the senior executive team and Board of Directors[110](index=110&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) - Safeguarding processes include employee training, disaster recovery exercises, access controls, multi-factor authentication, and 24/7 third-party monitoring[111](index=111&type=chunk)[112](index=112&type=chunk) - As of the report date, no cybersecurity incidents have had a material impact on the business or operations[113](index=113&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) The company operates six production facilities across the U.S., Canada, and Mexico, with four owned and two leased, all considered adequate for current needs - The company operates six production facilities in the U.S., Canada, and Mexico, with four owned and two leased[117](index=117&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is not aware of any material pending legal proceedings - The Company is not aware of any material pending legal proceedings to which it or its subsidiaries are a party[118](index=118&type=chunk) [Mine Safety Disclosure](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This section is not applicable - None Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchase%20of%20Equity%20Securities) The company's common stock trades on NYSE American LLC under 'CMT', with a $7.5 million repurchase program approved in March 2024, under which 244,701 shares were repurchased - The company's common stock is traded on the NYSE American LLC under the symbol '**CMT**'[121](index=121&type=chunk) - On March 11, 2024, a stock repurchase program for up to **$7.5 million** was approved, with **244,701** shares repurchased during the year[122](index=122&type=chunk)[123](index=123&type=chunk) Stock Repurchase Activity (Q4 2024) | Period | Total Shares Purchased | Average Price Paid | Max Amount Remaining Under Program | | :--- | :--- | :--- | :--- | | Oct 2024 | — | $— | $5,136,000 | | Nov 2024 | — | $— | $5,136,000 | | Dec 2024 | 36,170 | $15.95 | $4,561,000 | [[RESERVED]](index=22&type=section&id=Item%206.%20%5BRESERVED%5D) This section is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales decreased to **$302.4 million** in 2024 due to lower demand, with net income falling to **$13.3 million**, while 2025 revenue is expected to be flat with strong liquidity Financial Performance Comparison (2024 vs. 2023) | Metric (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $302,378 | $357,738 | | Gross Margin | $53,260 (17.6%) | $64,520 (18.0%) | | Net Income | $13,299 | $20,324 | | Diluted EPS | $1.51 | $2.31 | - The decrease in 2024 sales was primarily due to lower demand across all significant markets, with product sales falling to **$291.1 million** from **$347.4 million** in 2023[135](index=135&type=chunk) - For 2025, the company expects first-half revenues to decrease by **5-10%**, but full-year revenues to remain flat due to new program launches[131](index=131&type=chunk) - The company ended 2024 with **$41.8 million** in cash, a **$25 million** available revolving line of credit, and a **$25 million** capex line of credit, providing sufficient liquidity[153](index=153&type=chunk)[154](index=154&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from commodity prices, interest rates, and foreign currency fluctuations, with hedging strategies in place to mitigate some impacts - Primary market risks include changes in commodity prices (resins, fiberglass), interest rates on variable-rate debt, and foreign currency fluctuations (Mexican Peso and Canadian Dollar)[194](index=194&type=chunk)[195](index=195&type=chunk) - A hypothetical **10%** increase in commodity prices would adversely affect operating margins[197](index=197&type=chunk) - A hypothetical **10%** decrease in the U.S. Dollar to Mexican Peso and Canadian Dollar exchange rate would increase operating costs and adversely affect operating margins[197](index=197&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%20%28PCAOB%20173%29) This section presents the company's audited consolidated financial statements for 2022-2024, with Crowe LLP issuing an unqualified opinion on both financial statements and internal controls - The independent auditor, Crowe LLP, issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting as of December 31, 2024[199](index=199&type=chunk)[200](index=200&type=chunk) Consolidated Statement of Operations Highlights (in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Sales | $302,378 | $357,738 | $377,376 | | Gross Margin | $53,260 | $64,520 | $52,402 | | Operating Income | $16,695 | $26,537 | $18,003 | | Net Income | $13,299 | $20,324 | $12,203 | Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $102,888 | $102,879 | | Total Assets | $209,550 | $213,377 | | Total Current Liabilities | $36,711 | $46,186 | | Total Liabilities | $62,189 | $74,424 | | Total Stockholders' Equity | $147,361 | $138,953 | Consolidated Statement of Cash Flows Highlights (in thousands) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $35,151 | $34,842 | $18,982 | | Net cash used in investing activities | $(11,525) | $(9,100) | $(16,588) | | Net cash used in financing activities | $(5,927) | $(5,821) | $(4,357) | | Cash and cash equivalents at end of year | $41,803 | $24,104 | $4,183 | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=61&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This section is not applicable - Not Applicable [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[334](index=334&type=chunk) - Based on the COSO framework, management concluded that internal control over financial reporting was effective as of December 31, 2024[336](index=336&type=chunk) - No material changes in internal control over financial reporting occurred during the last fiscal quarter[338](index=338&type=chunk) [Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q4 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended December 31, 2024[339](index=339&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=62&type=section&id=Item%209C.%20Disclosure%20Regarding%20foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable - Not applicable Part III [Directors, Executive Officers, and Corporate Governance](index=63&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's definitive proxy statement, to be filed within 120 days after fiscal year-end - Information is incorporated by reference to the Company's definitive proxy statement[340](index=340&type=chunk) [Executive Compensation](index=63&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's definitive proxy statement, to be filed within 120 days after fiscal year-end - Information is incorporated by reference to the Company's definitive proxy statement[341](index=341&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=63&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section provides equity compensation plan information as of December 31, 2024, with other security ownership details incorporated by reference from the proxy statement Equity Compensation Plan Information as of December 31, 2024 | Plan Category | Number of Shares to be Issued Upon Exercise | Weighted Average Exercise Price | Number of Shares Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | 281,340 | $15.77 | 346,848 | - Other information required by this item is incorporated by reference to the Company's definitive proxy statement[342](index=342&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=63&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's definitive proxy statement, to be filed within 120 days after fiscal year-end - Information is incorporated by reference to the Company's definitive proxy statement[343](index=343&type=chunk) [Principal Accountant Fees and Services](index=63&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's definitive proxy statement, to be filed within 120 days after fiscal year-end - Information is incorporated by reference to the Company's definitive proxy statement[344](index=344&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=64&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K, including financial statements and Schedule II—Valuation and Qualifying Accounts and Reserves - The financial statements are referenced under Part II, Item 8[345](index=345&type=chunk) - Schedule II—Valuation and Qualifying Accounts and Reserves for the years ended December 31, 2024, 2023, and 2022 is filed with the report[346](index=346&type=chunk) [Form 10-K Summary](index=64&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - Not Applicable

Financial Data and Key Metrics Changes - For fiscal 2024, net sales were $302 million, down 15.5% due to lower demand across end markets [21][22] - Gross profit margin was 17.6%, within the long-term target range of 17% to 19% [22] - Adjusted EBITDA for the year was $33.8 million, or 11.2% of sales [22] - Record cash flow from operations reached $35 million, translating to free cash flow of $23.6 million [23][29] - The company reported a slight net loss of $39,000 for the fourth quarter compared to net income of $2.2 million in the prior year [28] Business Line Data and Key Metrics Changes - The company won $45 million in new business in 2024, with nearly all launching in 2025 [19] - The fourth-quarter sales were $62.5 million, down 15.3% primarily due to declines in the truck and tire sports market [23] - Demand in end markets such as industrials, utility, and building products grew compared to the prior year quarter [24] Market Data and Key Metrics Changes - The truck market is experiencing a cyclical downturn, with expectations for a cyclical upturn in the second half of 2025 [21] - The company anticipates a revenue decline of approximately $30 million due to the Volvo transition in 2025 [32] Company Strategy and Development Direction - The company is focused on driving organic and inorganic growth, with an emphasis on acquisitions [12][30] - Investment in top coat paint capabilities at the Matamoros facility aligns with growth in construction equipment and agricultural markets [13] - The three growth pillars include wallet share growth, sales diversification, and growth through acquisition [30][42] Management Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the macro environment and customer decision-making due to tariffs [64][65] - The company expects to offset the Volvo impact through higher tooling sales and new program launches [32][33] - Management remains confident in maintaining gross margins between 17% and 19% despite changes in revenue mix [33][79] Other Important Information - The company repurchased approximately 172,000 shares at an average price of $17.09 per share [32] - Total outstanding liquidity was $91.8 million, including $41.8 million in cash [29] Q&A Session Summary Question: What is the current visibility from customers regarding the full-year outlook? - Management noted that there is a lot of waiting from customers due to uncertainty around tariffs and decision-making processes [64][65] Question: How are tariffs impacting the company? - The company has set up processes to pass through costs to customers and has communicated these changes effectively [70][71] Question: What is the expected impact of the Volvo transition on margins? - The Volvo business was not the highest margin business, so its exit may help overall margins despite hurting top-line revenue [76][78] Question: How much tooling revenue is expected this year? - Tooling revenue is anticipated to be in the $30 to $40 million range, indicating strong future business [84] Question: How does the company view share repurchases versus acquisitions? - Management believes in balancing capital allocation between share repurchases and acquisitions for long-term growth [93][95]

Core Molding Technologies, Inc. (NYSE:CMT) Q4 2024 Results Conference Call March 11, 2025 10:00 AM ET Company Participants Sandy Martin - Three Part Advisors Dave Duvall - President and Chief Executive Officer John Zimmer - Chief Financial Officer Conference Call Participants Chip Moore - Roth MKM Bill Dezellem - Tieton Capital Operator Good morning, everyone. Welcome to the Core Molding Technologies Fourth Quarter and Full Year Fiscal 2024 Financial Results Conference Call. All participants will be in a li ...

Financial Performance - Net sales for fiscal year 2024 were $302.4 million, a decrease of 15.5% from $357.7 million in the prior year, primarily due to lower demand across significant markets [4]. - Gross margin for the year was $53.3 million, or 17.6% of net sales, compared to $64.5 million, or 18.0% of net sales, in the prior year [4]. - Adjusted EBITDA for the year was $33.8 million, representing 11.2% of net sales, down from $42.9 million, or 12.0% of net sales, in the prior year [4]. - Net income for the year was $13.3 million, or $1.51 per diluted share, down from $20.3 million, or $2.31 per diluted share, in the prior year [4]. - Adjusted EBITDA for the year ended December 31, 2024, was $33,802, down 21.2% from $42,861 in 2023 [23]. - The company reported a net income of $13,299 for the year, a decline of 34.6% from $20,324 in 2023 [21]. - Adjusted net income per share for the year was $1.65, down from $2.42 in 2023, a decrease of 31.9% [31]. Cash Flow and Liquidity - The company achieved record operational cash flow of $35 million in 2024 [5]. - Total liquidity at year-end was $91.8 million, with $41.8 million in cash and a Debt to Trailing Twelve Months Adjusted EBITDA ratio of 0.64 times [9]. - Cash and cash equivalents increased to $41,803 at the end of 2024, compared to $24,104 at the end of 2023, representing a growth of 73.3% [19]. - Free cash flow surplus for the year was $23,626, compared to $25,742 in 2023, reflecting a decrease of 8.2% [29]. Expenses and Liabilities - Selling, general and administrative expenses for the year were $36.6 million, or 12.1% of net sales, compared to $38.0 million, or 10.6% of net sales, in the prior year [4]. - Total liabilities decreased to $62,189 in 2024 from $74,424 in 2023, a reduction of 16.4% [19]. Market Outlook and Future Plans - The company plans capital expenditures of approximately $10 to $12 million for 2025 to meet current demand and allow for expansion [8]. - The sales opportunity pipeline is currently valued at $275 million, indicating potential growth [6]. - The company expects flat sales for 2025, impacted by the phase-out of approximately $30 million of Volvo programs, but anticipates a truck cycle upturn starting in the second half of 2025 [7]. Segment Performance - Net product revenue for the year ended December 31, 2024, was $291,092, a decrease of 16.2% from $347,375 in 2023 [17]. - The medium and heavy-duty truck segment generated $163,915 in revenue for the year, down 9.6% from $181,376 in 2023 [17]. Return Metrics - Return on capital employed (ROCE) for 2024 was 9.9%, down from 16.4% in 2023 [27]. - The weighted average common shares outstanding for the year was 8,693,000, compared to 8,550,000 in 2023 [31].