Core Molding Technologies(US:CMT)2025-08-05 18:36Financial Performance - Net sales for Q2 2025 were $79,239,000, a decrease of 10.7% from $88,743,000 in Q2 2024, primarily due to lower demand in power sports and medium and heavy-duty truck markets [112]. - Gross margin for Q2 2025 was 18.1%, down from 20.0% in Q2 2024, impacted by fixed cost leverage and unfavorable sales mix [112]. - Net income for Q2 2025 was $4,052,000, or $0.47 per share, compared to $6,419,000, or $0.74 per share, in Q2 2024 [115]. - Comprehensive income for Q2 2025 was $4,762,000, compared to $5,388,000 in Q2 2024, primarily due to lower net income [116]. - For the first half of 2025, net sales totaled $140,686,000, down from $166,888,000 in the same period of 2024, reflecting a decrease in product sales [117]. - The company expects revenues for the second half of 2025 to decrease by approximately 4 to 6 percent compared to 2024, influenced by market uncertainties and program transitions [110]. Expenses and Costs - SG&A expenses for Q2 2025 were $9,100,000, a decrease from $10,236,000 in Q2 2024, primarily due to lower bonuses and favorable foreign currency translation [113]. - The company anticipates raw material pricing in 2025 to remain flat or experience a slight increase relative to 2024, with stable supply chains [111]. - A hypothetical 10% decrease in the USD to MXN and CAD exchange rate would increase operating costs, adversely affecting operating margins [150]. Cash Flow and Investments - Cash provided by operating activities for the first half of 2025 totaled $9,594,000, positively impacted by net income and non-cash deductions [124]. - Cash used in investing activities for the six months ended June 30, 2025 was $4,387,000, with an anticipated total capital expenditure of approximately $10,000,000 to $12,000,000 for 2025 [125]. - The Company expects to invest approximately $25 million over the next 18 months following the award of the Volvo Mexico business, with $8 to $10 million anticipated to be spent by the end of fiscal 2025 [125]. - Cash used for financing activities for the six months ended June 30, 2025 totaled $3,798,000, including $2,249,000 for treasury stock purchases [126]. Debt and Financing - As of June 30, 2025, the Company had $43,212,000 cash on hand and a $25,000,000 revolving loan facility with no outstanding balance [127]. - The Huntington Credit Agreement provides secured loans in the maximum aggregate principal amount of $75,000,000, including a term loan, a CapEx loan, and a revolving loan [130]. - The interest rate for the Huntington Term Loan was 6.08% as of June 30, 2025, with monthly installments beginning at $104,000 for the first 24 months [142]. - The Company entered into an interest rate swap agreement effective July 22, 2022, resulting in an effective interest rate of 4.75% on the Huntington Term Loan as of June 30, 2025 [143]. - The Company is in compliance with financial covenants associated with the Huntington Credit Agreement as of June 30, 2025 [128]. - The Company anticipates using cash from operations and available borrowings to fund capital investments [129].