Core Insights - CVG has reported significant operational changes and financial results for the fourth quarter and full year ended December 31, 2024, indicating a year of meaningful transformation for the company [2][6] - The company anticipates that the benefits from strategic portfolio actions and restructuring will become more evident in 2025, despite facing market headwinds [6][14] Financial Performance - Fourth quarter 2024 revenue was $163.3 million, a decrease of 15.7% compared to $193.7 million in the prior year, primarily due to lower demand in Construction and Agriculture sectors [7][8] - The operating loss for the fourth quarter was $5.3 million, compared to an operating income of $4.1 million in the previous year, driven by lower sales volumes and operational inefficiencies [7][13] - Net loss from continuing operations was $35.0 million, or $(1.04) per diluted share, compared to net income of $22.6 million, or $0.67 per diluted share in the prior year [7][8] - Adjusted EBITDA for the fourth quarter was $0.9 million, down 89.2% from $8.3 million in the previous year, reflecting a significant decline in operational performance [7][8] Segment Performance - The Vehicle Solutions segment reported revenues of $91.4 million, down 14.7% from the prior year, primarily due to decreased customer demand [13] - The Electrical Systems segment generated revenues of $40.3 million, a decrease of 28.3%, attributed to global softening in the Construction and Agriculture end-markets [13] - The Aftermarket and Accessories segment saw revenues increase slightly to $31.6 million, up 4.0% from the previous year, driven by higher customer demand [21] Strategic Actions and Outlook - The company has completed divestitures of non-strategic assets, including the Industrial Automation segment, to focus on core segments [3][6] - CVG expects net sales for 2025 to be in the range of $670 million to $710 million, with adjusted EBITDA projected between $25 million and $30 million [14][15] - The company plans to implement a new organizational structure effective January 1, 2025, aimed at enhancing alignment with customers and improving operational efficiency [16] Liquidity and Financial Position - As of December 31, 2024, CVG had $50.5 million in outstanding borrowings on its revolving credit facility and $26.6 million in cash, resulting in total liquidity of $111.0 million [10]

Core Viewpoint - Commercial Vehicle Group (CVG) is scheduled to hold its quarterly conference call on March 11, 2025, to discuss the financial results for the fourth quarter and full year of 2024 [1]. Group 1: Conference Call Details - The conference call will take place at 8:30 a.m. ET [1]. - Toll-free participants can dial (800) 549-8228, while international participants can call (289) 819-1520, both using conference code 45919 [2]. - The call will be webcast and accessible through the "Investors" section of CVG's website, where it will be archived for one year [2]. Group 2: Replay Information - A telephonic replay of the conference call will be available until March 25, 2025 [3]. - Toll-free callers can access the replay by dialing (+1) 888 660 6264 with access code 45919, while toll callers in North America and other locations can call (+1) 289 819 1325 [3]. Group 3: Company Overview - CVG focuses on delivering solutions to complex design, engineering, and manufacturing challenges, aiming to create positive change for customers, industries, and communities [4]. - Additional information about the company and its products can be found on its website [4].

Core Viewpoint - Commercial Vehicle Group (CVG) has appointed Scott Reed as Chief Operating Officer, effective February 13, 2025, bringing over 30 years of experience in industrial and manufacturing sectors [1][3]. Group 1: Leadership Changes - Scott Reed will oversee global manufacturing and supply chain operations, focusing on operational excellence and cross-functional alignment [2]. - Mr. Reed's previous role was as President of Arrow Tru-Line Inc., and he has held leadership positions in various companies, recognized for achieving operational and profit growth [3]. - The company also announced the departure of Don Fishel, President of Trim Systems and Components, after 14 years, with Andy Cheung temporarily overseeing this division [6]. Group 2: Compensation and Incentives - As an inducement for joining CVG, Mr. Reed has been granted 58,331 shares of time-vesting restricted stock and 87,497 performance shares, aligning his interests with those of shareholders [5]. Group 3: Company Mission and Vision - CVG aims to deliver solutions to complex design, engineering, and manufacturing challenges while creating positive change for customers and communities [7].

Core Viewpoint - Commercial Vehicle Group (CVG) has announced a new organizational structure aimed at enhancing alignment with customers and end markets, effective January 1, 2025 [1] Group 1: Organizational Changes - CVG will reorganize its vertical business units into three operating divisions and reporting segments [2] - The Aftermarket & Accessories business unit will be integrated into the three new segments, with its seating and electrical portfolios transitioning to Global Seating and Global Electrical Systems, respectively [3] - Wiper systems will be included in the newly formed Trim Systems and Components business unit, alongside trim and components from the previous Vehicle Solutions segment [3] Group 2: Leadership Appointments - Russell Ketteringham will lead the seating business as President of Global Seating, transitioning from his previous role as President of Global Vehicle Solutions [4] - Donald Fishel will head the new Trim Systems and Components business as President, while also managing Business Development responsibilities [4] - Peter Lugo will continue to lead the Electrical Systems segment [4] Group 3: Strategic Objectives - The new structure is expected to enhance clarity and focus, allowing each business unit to meet specific strategic and operational objectives [5] - CVG aims to lower corporate and administrative costs to align with its current revenue profile while positioning itself for future growth [5] - The transformation is intended to create a more agile company that prioritizes customers and markets, with expectations of accelerating operational momentum and driving higher growth [6] Group 4: Reporting Changes - CVG plans to report results under the new segment structure starting with the first quarter of 2025, including historical quarterly segment results at that time [6]

Core Viewpoint - Commercial Vehicle Group (CVG) has elected Jeffrey S. Niew as an independent director, effective December 16, 2024, which is expected to enhance the Board's capabilities with his extensive experience in multi-unit operations and leadership in large organizations [1][3]. Group 1: Company Overview - CVG is a diversified industrial products and services company focused on delivering solutions to complex design, engineering, and manufacturing challenges [4]. - The company aims to create positive change for its customers, industries, and communities [4]. Group 2: New Board Member Profile - Jeffrey S. Niew has been the President & CEO of Knowles Corporation since 2013 and has a strong background in semiconductor and electronic components technologies [2]. - Niew's previous roles include Vice President of Dover Corporation and President and CEO of Dover Communication Technologies, where he led the spin-off of Knowles from Dover [2]. - He has held various positions in product management, sales, and engineering at Littelfuse, Inc. and Hewlett-Packard Company prior to joining Knowles [2]. Group 3: Board Member Statements - Robert Griffin, Chair of the Board, expressed enthusiasm about Niew's election, highlighting his extensive operational experience as a significant asset to the Board [3]. - Niew expressed honor in being elected to the CVG Board and looks forward to collaborating with the Board's leaders to guide the company [3].

| --- | --- | --- | --- | |-------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | Q3-2024 Earnings | | | | | | | | | | Presentation | | | | James Ray – President & Chief Executive Officer Andy Cheung – Executive Vice President & Chief Financial Officer November 5, 2024 Forward Looking Statements and Non-GAAP Financial Measures These slides contain forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "a ...

Financial Data and Key Metrics Changes - Consolidated third quarter 2024 revenue was $171.8 million, down from $202.9 million in the prior year period, primarily due to lower sales from softening customer demand in Vehicle Solutions and Electrical Systems segments [27][28] - Adjusted EBITDA for the third quarter was $4.3 million, compared to $12.2 million in the prior year, with adjusted EBITDA margins decreasing to 3.5% from 6% [28][29] - Net loss for the quarter was $0.9 million, or a loss of $0.03 per diluted share, compared to a net income of $4.7 million, or $0.14 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - Electrical Systems segment revenues decreased by 19% to $43.4 million, primarily due to a global softening in construction and agricultural end markets [32] - Vehicle Solutions segment revenues decreased by 16% to $97.3 million, attributed to lower sales volume and operational inefficiencies related to production consolidation [34][36] - Aftermarket & Accessories segment revenues decreased by 8% to $31.1 million, primarily due to lower sales volume and operational inefficiencies [38] Market Data and Key Metrics Changes - The Class 8 heavy truck market is projected to decline by 7% in 2024, with a further 10% drop anticipated in 2025, although a rebound of nearly 25% is expected in 2026 [40] - The construction equipment market is expected to see a 10% decline, while agricultural markets are facing a 15% year-over-year decline due to high interest rates and lower commodity prices [41][42] Company Strategy and Development Direction - The company has focused on reshaping its operating model to create a lower cost and more agile foundation, including the sale of non-core businesses to streamline operations [6][7][19] - New leadership appointments aim to enhance operational excellence and drive growth, particularly in the Electrical Systems segment [21][23] - The company is committed to reducing complexity and improving capital efficiency to enhance shareholder value [20] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with third quarter results, citing operational inefficiencies and continued weakness in end markets [13][14] - The company is lowering its full-year 2024 revenue guidance to a range of $710 million to $740 million, down from $730 million to $780 million, and adjusted EBITDA guidance to $20 million to $25 million [44][45] - Management remains optimistic about long-term growth potential in construction and agricultural markets despite current challenges [43] Other Important Information - The company has eliminated approximately 1,200 roles, or roughly 15% of its workforce, to create a more efficient organization [12] - Free cash flow from continuing operations for the quarter was $17 million, supported by proceeds from the Cab Structures sale [30] Q&A Session Summary Question: Plans for adjusted continuing operating results for the first and second quarter - Management confirmed that adjusted results for the first half will be provided in Q4 filings [55] Question: Status of portfolio reshaping and restructuring - Management indicated that significant restructuring is largely complete, with a focus now on stability and margin improvement [64] Question: Fourth quarter revenue expectations and adjusted EBITDA outlook - Management noted that Q4 is typically the smallest quarter due to seasonality, impacting revenue and EBITDA [66] Question: Current interest rate expense and debt repayment - Interest expense is around 7% to 8%, with the majority of proceeds from the second payment used for debt repayment [71] Question: Competitive pressures in the agricultural and construction market - Management acknowledged competitive pressures but stated they have not materially changed [73] Question: Impact of production inefficiencies on gross margins - Management estimated the impact of production inefficiencies on gross margins to be in the upper single-digits to low-double-digits millions [77]

Commercial Vehicle Group (CVGI) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.04. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -125%. A quarter ago, it was expected that this supplier of products for heavy duty trucks would post earnings of $0.17 per share when it actually produced earnings of $0.06, delivering a surprise of -64.71%.Over the la ...

Financial Performance - Net income for the three months ended September 30, 2024, was $9,514 thousand, compared to $7,290 thousand for the same period in 2023, representing a 30.5% increase[8]. - Comprehensive income for the three months ended September 30, 2024, was $8,731 thousand, significantly up from $2,070 thousand in the prior year[8]. - Total revenue for the nine months ended September 30, 2024, was $560.063 million, a significant increase from $312.785 million for the same period in 2023, representing an increase of approximately 79.5%[31]. - Net income for the nine months ended September 30, 2024, was $10,852, compared to $26,130 for the same period in 2023, representing a decrease of approximately 58.5%[13]. - Revenues for the three months ended September 30, 2024, decreased by 15.3% to $171.8 million compared to $202.9 million in the same period of 2023[122]. - Gross profit for the nine months ended September 30, 2024, was $60.044 million, compared to $96.714 million for the same period in 2023, a decrease of about 37.9%[93]. Assets and Liabilities - Total current assets increased to $346,263 thousand as of September 30, 2024, from $327,742 thousand at the end of 2023, reflecting a 5.0% growth[10]. - The company reported a total of $495,341 thousand in assets as of September 30, 2024, up from $483,214 thousand at the end of 2023, marking a 2.4% increase[10]. - Total liabilities as of September 30, 2024, were $316,076 thousand, compared to $310,282 thousand as of December 31, 2023[181]. - Long-term debt decreased slightly to $125,790 thousand as of September 30, 2024, from $126,201 thousand at the end of 2023[10]. Cash Flow - Cash flows from operating activities showed a net outflow of $6,835 thousand for the nine months ended September 30, 2024, down from a net inflow of $29,990 thousand in the same period of 2023[13]. - Cash at the end of the period was $30,885 thousand, down from $46,293 thousand at the end of September 2023, reflecting a decrease of 33.3%[13]. - Net cash used in operating activities was $6.8 million for the nine months ended September 30, 2024, compared to net cash provided of $30.0 million in 2023[173]. - Net cash provided by investing activities was $12,868 thousand for the nine months ended September 30, 2024, compared to $(15,196) thousand for the same period in 2023[179]. Revenue Segments - For the three months ended September 30, 2024, total revenue was $171.772 million, with Vehicle Solutions contributing $97.296 million, Electrical Systems $43.380 million, and Aftermarket & Accessories $31.096 million[30]. - The Vehicle Solutions segment generated revenues of $312.785 million for the nine months ended September 30, 2024, compared to $362.820 million in the same period of 2023, reflecting a decrease of about 13.8%[93]. - The Electrical Systems segment reported revenues of $149.327 million for the nine months ended September 30, 2024, down from $172.236 million in 2023, indicating a decline of approximately 13.3%[93]. - The company’s total revenue from seats for the nine months ended September 30, 2024, was $237.678 million, compared to $189.085 million for the same period in 2023, reflecting an increase of approximately 25.6%[31]. Discontinued Operations - The company is undergoing a strategic shift by divesting its cab structures business and the Industrial Automation segment, which will be classified as discontinued operations[22]. - The company reported a net income from discontinued operations of $10.397 million for the period ended June 30, 2024[22]. - The company recorded a write-down loss of $8.2 million on the disposal group as of September 30, 2024[107]. - The Industrial Automation segment incurred a loss of $8.4 million for the three months ended September 30, 2024, compared to a profit of $479 thousand in the same period of 2023[106]. Expenses - Selling, general and administrative (SG&A) expenses decreased by 14.3% to $17.5 million, primarily due to a gain on the sale of a building[124]. - The company incurred $4.2 million in restructuring costs during the three months ended September 30, 2024, with $2.8 million related to headcount reductions[77]. - For the nine months ended September 30, 2024, total restructuring costs amounted to $9.8 million, with $7.7 million attributed to headcount reductions[78]. - Interest expense decreased to $2.4 million for the three months ended September 30, 2024, down from $2.5 million in the same period of 2023[126]. Stockholders' Equity - As of September 30, 2024, total stockholders' equity was $179.265 million, an increase from $172.932 million on December 31, 2023[16]. - The company’s retained deficit decreased to $(46.184) million as of December 31, 2023, from $(95.595) million on December 31, 2022[16]. - The accumulated other comprehensive loss increased to $(37.724) million as of September 30, 2024, from $(30.284) million at the end of 2023[72]. Future Outlook - The company anticipates future growth in the wire harness, warehouse automation, and electric vehicle markets, as well as plans for capital expenditures[180]. - The company plans to adopt new accounting standards related to reportable segment disclosures and income tax disclosures in the upcoming fiscal years[26][28].

Revenue Performance - Third quarter 2024 revenues were $171.8 million, a decrease of 15.3% compared to $202.9 million in the prior year period, primarily due to lower customer demand [3][12]. - The Vehicle Solutions segment reported revenues of $97.3 million, a decrease of 15.6% from the prior year, attributed to lower sales volume and program wind-downs [17]. - The Electrical Systems segment experienced a revenue decline of 19.5%, with revenues of $43.4 million compared to $53.9 million in the prior year [19]. - Revenues for the three months ended September 30, 2024, were $171.772 million, a decrease of 15.4% compared to $202.897 million for the same period in 2023 [1]. Profitability and Loss - Operating loss for the third quarter 2024 was $1.1 million, down from operating income of $8.9 million in the prior year, driven by lower sales volumes and operational inefficiencies [4][13]. - Gross profit for the three months ended September 30, 2024, was $16.421 million, down 44.0% from $29.309 million in the prior year [1]. - Adjusted EBITDA for the third quarter 2024 was $4.3 million, down 64.8% from $12.2 million in the prior year, with an adjusted EBITDA margin of 2.5% compared to 6.0% [6][11]. - Net income for the three months ended September 30, 2024, was $9.514 million, an increase from $7.290 million in the same period last year [1]. - Basic earnings (loss) per share from continuing operations for the three months ended September 30, 2024, was $(0.03), compared to $0.14 for the same period in 2023 [1]. - The company reported a diluted EPS of $(0.03) for the three months ended September 30, 2024, compared to $0.14 in the same period last year [41]. Financial Outlook - The company revised its full year 2024 outlook for net sales to $710 million - $740 million, down from the previous range of $730 million - $780 million [24]. - Adjusted EBITDA guidance for 2024 was also revised to $20 million - $25 million, down from $28 million - $36 million [24]. Cash Flow and Liquidity - The company had $14.0 million of outstanding borrowings on its U.S. revolving credit facility and total liquidity of $177.2 million as of September 30, 2024 [16]. - The company’s cash balance as of September 30, 2024, was $30.885 million, a decrease from $37.848 million as of December 31, 2023 [2]. - Cash flows from operating activities for the total company were $(17,067) million for the three months ended September 30, 2024, compared to $18,468 million in the prior year [48]. Asset and Liability Overview - Total current assets as of September 30, 2024, were $346.263 million, up from $327.742 million as of December 31, 2023 [2]. - Total liabilities as of September 30, 2024, were $316.076 million, compared to $310.282 million as of December 31, 2023 [2]. Market Conditions - Market forecasts indicate a projected 15% to 20% decline in global agriculture market demand and a 10% to 15% decline in construction market demand for 2024 [25].