CVG Reports Fourth Quarter and Full Year 2024 Results

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]