Commercial Vehicle(CVGI) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company recorded revenues of $723.4 million, a decrease of 13.4$835.5 million in 2023[248]. - The gross profit for 2024 was $73.1 million, down from$121.1 million in 2023, reflecting a gross margin of 10.1%[248]. - The company reported a net loss of $27.9 million for 2024, compared to a net income of$49.4 million in 2023[248]. - Operating income for 2024 was a loss of $0.8 million, a significant decline from an operating income of$39.9 million in 2023[248]. - The company recorded a loss from continuing operations of $35.7 million in 2024, compared to a profit of$43.6 million in 2023[248]. - Comprehensive loss for 2024 totaled $40,926 thousand, contrasting with a comprehensive income of$50,677 thousand in 2023[251]. - Net income for 2024 was a loss of $27,867 thousand, compared to a profit of$49,411 thousand in 2023, indicating a significant decline in profitability[259]. - The company reported a pre-tax loss of $8,241 million for 2024, a decrease from a pre-tax income of$28,430 million in 2023[331]. - Basic earnings per share from continuing operations for 2024 was $(1.07), a decline from$1.32 in 2023[375]. - The company reported a total other comprehensive loss of $(13.059) million for the year ended December 31, 2024, compared to a total other comprehensive income of$1.266 million for 2023[378]. Assets and Liabilities - Total assets decreased from $483,214 thousand in 2023 to$424,573 thousand in 2024, reflecting a reduction of approximately 12.1%[254]. - Current assets fell from $327,742 thousand in 2023 to$303,300 thousand in 2024, a decrease of about 7.4%[254]. - Cash reserves decreased from $37,848 thousand in 2023 to$26,630 thousand in 2024, representing a decline of approximately 29.5%[254]. - Total liabilities decreased from $310,282 thousand in 2023 to$288,981 thousand in 2024, a decline of approximately 6.9%[254]. - Stockholders' equity decreased from $172,932 thousand in 2023 to$135,592 thousand in 2024, reflecting a decrease of about 21.6%[254]. - The carrying amount of long-term debt obligations was $135,500 million in 2024, with a fair value of$134,863 million, compared to a carrying amount of $141,514 million and a fair value of$139,213 million in 2023[325]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of $33,452,000 in 2024, down from an inflow of$38,276,000 in 2023[259]. - The company reported a net cash inflow from investing activities of $30,896,000 in 2024, a turnaround from a cash outflow of$19,696,000 in 2023[259]. - The company had outstanding letters of credit of $1.1 million under the Revolving Credit Facility as of December 31, 2024[303]. - The company divested its cab structures business and Industrial Automation segment, which are classified as discontinued operations, impacting the overall financial results[264]. Debt and Interest - Interest expense for 2024 was$9.2 million, slightly lower than $10.2 million in 2023[248]. - The company had total long-term debt of$127.1 million as of December 31, 2024, compared to $126.2 million in 2023[295]. - The term loan facility was reduced to$85 million and the revolving credit facility commitments were decreased to $125 million as of December 19, 2024[301]. - The company recognized a loss on extinguishment of debt of$0.5 million due to the fourth amendment of the credit agreement[302]. - Cash payments for interest for the twelve months ended December 31, 2024, were $11.7 million, a decrease from$12.8 million in 2023[312]. Foreign Currency and Inflation - The company is exposed to foreign currency risks, with significant revenues derived from operations outside the U.S., affecting the translation of financial results into U.S. Dollars[230]. - Inflation impacts the company through increased material costs and labor, with limited ability to pass these costs onto customers due to competitive market conditions[233]. - The effect of currency exchange rate changes resulted in a cash outflow of $1,540,000 in 2024, contrasting with a cash inflow of$172,000 in 2023[259]. Restructuring and Operations - The company incurred a loss of $2,454 million on foreign exchange contracts designated as hedging instruments in 2024, contrasting with a gain of$5,339 million in 2023[323]. - The company incurred $10.8 million in restructuring expenses during the year ended December 31, 2024, primarily for workforce reductions ($8.4 million) and facility exit costs ($2.4 million)[381]. - The restructuring program approved during the quarter ended December 31, 2023, included workforce reductions and footprint optimization across segments[379]. Taxation - The provision for income taxes for 2024 was$27,493 million, compared to a benefit of $(15,203) million in 2023[331]. - The company recorded a valuation allowance of$26.6 million in 2024 primarily related to U.S. deferred tax assets due to a cumulative three-year loss position[333]. - The total net deferred tax asset was $10.76 million, a decrease from$33.29 million in 2023[332]. Segment Performance - The company has three reportable segments for 2024: Vehicle Solutions, Electrical Systems, and Aftermarket & Accessories, following the divestiture of the cab structure business[392]. - Revenue from Vehicle Solutions for the twelve months ended December 31, 2024, was $404.2 million, down from$470.3 million in 2023, representing a decline of 14.1%[294]. - The Vehicle Solutions segment generated revenues of $404,164 million in 2024, a decrease of 13.9$469,962 million in 2023[396]. - Revenues from the Industrial Automation segment were $16,468 million in 2024, down from$38,900 million in 2023[406].