Commercial Vehicle(CVGI) - 2024 Q3 - Quarterly Report

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].