NEW ALBANY, Ohio, July 26 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. , today reported revenues of $196.1 million for the second quarter ended June 30, 2005, up 107% compared to $94.5 million in the prior-year period. Operating income for the second quarter was $25.8 million, a significant increase over $(0.2) million reported for the same period last year. Net income for the quarter was $14.2 million, or $0.78 per diluted share, compared to $(0.9) million, or $(0.06) per diluted share, in the prior- year quarter. Results for second quarter 2004 include the effects of a $10.1 million non-cash option issuance charge. As a result of the company's August 2004 initial public offering, fully diluted shares outstanding for the quarter were 18.3 million compared to 13.9 million in the prior-year quarter.
Results for the second quarter included the effects of the company's acquisition of Mayflower Vehicle Systems' North American Commercial Vehicle Operations and the effects of the company's acquisition of Monona Wire Corporation from June 3, 2005 forward. Results for the second quarter also included the mark-to-market of CVG's foreign exchange contracts, which positively impacted the quarter on a pre-tax basis by $0.4 million compared to $0.4 million in the prior-year quarter.
"We are extremely pleased with our second quarter results, which included the acquisition of Monona Wire Corporation and certainly look forward to having this company as part of our on-going team," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "Our primary markets remain strong and we will continue to capitalize on these favorable trends. Despite the impact of steel and petroleum-related raw material costs and additional costs related to certain long-term growth projects, we were able to exceed our earnings estimates while maintaining our focus on our growth strategy."
Revenues for the quarter compared to the prior-year period increased by $101.6 million, due primarily to the acquisitions of Mayflower and MWC, a 43% increase in North American OEM truck production volumes over the prior-year quarter and higher OEM sales in the European and Asian seating markets. Steel and petroleum prices had a negative impact of approximately $1.5 million during the quarter; however the company increased earnings before interest, taxes, depreciation and amortization (EBITDA) from $12.0 million in the prior- year quarter, excluding the impact of the $10.1 million non-cash option issuance charge, to $29.0 million in the second quarter of 2005. CVG's net debt position at the end of the quarter was approximately $202 million.
The Company reported revenues of $348.5 million for the six months ended June 30, 2005, up 93% compared to $180.5 million in the prior-year period. Operating income for the six-month period was $42.5 million compared to $7.8 million last year. Net income for the six month period was $25.1 million, or $1.37 per diluted share, compared to $4.7 million, or $0.34 per diluted share, in the prior six month period. Results for the six months ended June 30, 2004 include the effects of a $10.1 million non-cash option issuance charge.
A conference call to review second quarter results and discuss business updates and operations is scheduled for Wednesday, July 27, 2005 at 10:00 a.m. EDT. Interested participants may listen to the live conference call by dialing (866) 597-7784 and asking for the Commercial Vehicle Group Earnings Conference Call. A recording of this call also will be available until 12:00 a.m. EDT on Wednesday, August 3 by dialing (706) 645-9291, PIN 7896178#.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. CVG is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about CVG and its products is available on the internet at http://www.cvgrp.com/ .
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) CVG's ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which CVG serves; (iv) increased competition in the heavy-duty truck market; (v) CVG's failure to complete or successfully integrate additional strategic acquisitions; and (vi) various other risks as outlined in CVG's SEC filings. There can be no assurance that statements made in this press release relating to future events will be achieved. CVG undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to CVG or persons acting on behalf of CVG are expressly qualified in their entirety by such cautionary statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts - unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 REVENUES $196,091 $94,491 $348,506 $180,481 COST OF SALES 159,949 77,636 286,112 148,139 Gross Profit 36,142 16,855 62,394 32,342 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 10,172 6,867 19,721 14,364 NONCASH OPTION ISSUANCE CHARGE -- 10,125 -- 10,125 AMORTIZATION EXPENSE 140 27 164 63 Operating Income (Loss) 25,830 (164) 42,509 7,790 OTHER (INCOME) (392) (429) (3,272) (3,699) INTEREST EXPENSE 3,315 2,071 5,482 4,339 Income (Loss) Before Income Taxes 22,907 (1,806) 40,299 7,150 (BENEFIT) PROVISION FOR INCOME TAXES 8,722 (929) 15,228 2,478 NET INCOME (LOSS) $14,185 $(877) $25,071 $4,672 BASIC EARNINGS (LOSS) PER SHARE $0.79 $(0.06) $1.39 $0.34 DILUTED EARNINGS (LOSS) PER SHARE $0.78 $(0.06) $1.37 $0.34 Reconciliation to EBITDA: Net Income (Loss) $14,185 $(877) $25,071 $4,672 (Benefit) Provision for Income Taxes 8,722 (929) 15,228 2,478 Other (Income) (392) (429) (3,272) (3,699) Interest Expense 3,315 2,071 5,482 4,339 Depreciation and Amortization 3,138 2,033 5,900 4,093 Noncash Option Issuance Charge -- 10,125 -- 10,125 EBITDA(1) $28,968 $11,994 $48,409 $22,008 (1) EBITDA is defined as income before taxes, interest expense, depreciation, amortization and certain other non-recurring items. EBITDA is presented because the company believes that it is widely accepted that EBITDA provides useful information to management and investors regarding its operating results. EBITDA should not be considered as an alternative to, or more meaningful than, amounts determined in accordance with generally accepted accounting principles. EBITDA is not calculated identically by all companies, and therefore, the presentation herein may not be comparable to similarly titled measured of other companies. COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands - unaudited) June 30, December 31, 2005 2004 ASSETS CURRENT ASSETS: Cash and cash equivalents $3,939 $1,396 Accounts receivable - Net 121,368 46,267 Inventories 58,813 36,936 Prepaid expenses and other current assets 5,003 6,081 Deferred income taxes 7,917 8,201 Total current assets 197,040 98,881 PROPERTY, PLANT AND EQUIPMENT - Net 69,429 32,965 GOODWILL 187,231 84,715 DEFERRED INCOME TAXES 7,029 5,901 OTHER ASSETS - Net 15,990 3,176 $476,719 $225,638 LIABILITIES AND STOCKHOLDERS' INVESTMENT CURRENT LIABILITIES: Current maturities of long-term debt $16,918 $4,884 Accounts payable 73,307 33,846 Accrued liabilities 39,908 18,424 Total current liabilities 130,133 57,154 LONG-TERM DEBT - Net 189,331 49,041 OTHER LONG-TERM LIABILITIES 24,520 8,397 Total liabilities 213,851 114,592 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' INVESTMENT Common stock, $0.01 par value per share; 30,000,000 shares authorized; 17,987,497 shares outstanding 180 180 Additional paid-in capital 123,660 123,660 Accumulated deficit 9,617 (15,454) Stock subscriptions receivable (152) (175) Accumulated other comprehensive income (570) 2,835 Total stockholders' investment 132,735 111,046 $476,719 $225,638
CONTACT: Tony Carideo of The Carideo Group, Inc., +1-612-317-2880, or Chad Utrup of Commercial Vehicle Group, Inc., +1-614-289-5360
Web site: http://www.cvgrp.com/
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