NASDAQ$CVGI

Commercial Vehicle Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CVG's first quarter results declined relative to a strong quarter of comparison in the prior year, but the transformation plan remained on track.

CVG reported a decrease in revenue and operating income compared to the previous year, primarily due to softening customer demand. However, the company secured new business wins and is focused on operational efficiency and growing its Electrical Systems segment. The company reaffirmed its full-year revenue and Adjusted EBITDA guidance ranges.

  • Revenues decreased by 11.6% to $232.1 million due to softening customer demand.
  • Operating income decreased by 55.1% to $6.6 million.
  • Net income was $2.9 million, or $0.09 per diluted share, compared to $8.7 million, or $0.26 per diluted share in the prior year.
  • Adjusted EBITDA decreased by 35.9% to $12.7 million with an adjusted EBITDA margin of 5.5%.

Headline financials

Total Revenue

$232M

Previous: $263M-11.7%
EPS

$0.09

Previous: $0.28-67.9%
Adjusted EBITDA

$9.69M

Previous: $19.8M-51.1%
Adjusted Operating Income

$6.29M

No prior period
Adjusted Gross Profit

$24.7M

No prior period
Adjusted Net Income (Loss) from Continuing Operations

$2.78M

No prior period
Capital Expenditures

-$5.06M

Previous: -$3.32M-52.3%
Free Cash Flow

-$2.12M

Previous: $5.38M-139.4%
Net Income

$2.94M

Previous: $8.7M-66.2%
Operating Income

$6.57M

Previous: $14.6M-55.1%
Gross Profit

$26.7M

Previous: $35.2M-24.3%
Cash & Equivalents

$46.8M

Previous: $41.5M+12.9%
Total Assets

$509M

Previous: $498M+2.3%
Stock-Based Comp

$664K

Previous: $1.77M-62.5%

Revenue & EPS history

CVG · Revenue · Quarterly

$232M

Q1 2024-11.7%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CVG · $53.9M total across 1 segment · Q3 2023

  • Global Electrical Systems
    $53.9M+16.8%

Forward guidance

CVG reaffirmed its full-year 2024 outlook for Net Sales of $915 - $1,015 million and Adjusted EBITDA of $60 - $73 million. The outlook reflects current industry forecasts for North America Class 8 truck builds.

Tailwinds

  • North America Class 8 truck production levels are expected to be at 305,000 units.
  • Proactive cost actions are being taken to help underpin the Adjusted EBITDA guidance range.
  • Balance sheet remains strong with 1.8x net leverage.
  • Taking actions to proactively address current market conditions.
  • Expect improved profitability across core business through the rest of the year.

Headwinds

  • Agriculture and construction market conditions have deteriorated.
  • Segments within global agriculture and construction market demand are projected to be flat to down 10% in 2024.
  • First quarter results declined relative to a strong quarter of comparison in the prior year.
  • Softer market conditions led to year-over-year declines in revenues and profits.
  • Deterioration in construction and agricultural end markets is offsetting the improved Class 8 truck build forecast.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+7.1%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+32.0%

Q2 2020

Best reaction

-23.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%+20.0%+29.9%
Q4 2026+25.5%+123.5%+142.0%
Q3 2025+0.0%+2.0%+8.7%
Q1 2025+14.7%+60.0%+56.7%
Q4 2024-3.8%-15.6%-50.5%
Q3 2024-20.3%-15.9%-23.6%
Q2 2024-17.6%-28.8%-31.7%
Q1 2024-6.4%-5.9%-9.2%
Q4 2023-8.2%-7.5%-3.7%
Q3 2023-10.9%-15.5%-0.9%
Q2 2023+8.9%-2.8%-12.3%
Q1 2023+18.5%+36.7%+32.5%
Q4 2022-12.7%-10.7%-18.7%
Q3 2022+4.5%+21.1%+48.8%
Q2 2022+0.7%-2.6%-17.2%
Q1 2022+1.5%-3.5%-3.2%
Q4 2021-1.8%+7.5%+7.9%
Q3 2021-10.8%-11.7%-17.0%
Q2 2021+2.7%+5.0%+11.2%
Q1 2021+7.4%+17.0%+0.6%
Q4 2020+0.5%+7.1%-0.6%
Q3 2020+4.9%+9.3%+31.8%
Q2 2020+32.0%+48.1%+59.9%
Q1 2020+6.1%+21.9%+64.5%
Q4 2019-23.8%-40.7%-53.3%
Q3 2019-4.6%-5.0%-9.3%
Q2 2019-7.3%-8.4%-22.6%
Q1 2019-6.5%-16.1%-27.7%
Q4 2018+4.4%+0.8%+7.4%
Q3 2018-1.4%-2.1%-5.3%
Q2 2018+24.0%+26.8%+32.5%
Q1 2018+27.4%+19.8%+15.1%
Q4 2017-19.2%-21.3%-34.2%
Q3 2017+21.6%+20.1%+32.1%
Q2 2017-21.4%-28.7%-25.2%
Q1 2017-2.5%+10.5%-0.1%
Q4 2016-2.3%-4.4%+13.1%
Q3 2016+1.7%+4.1%+12.9%
Q2 2016+7.7%+9.7%+37.2%
Q1 2016+12.8%
Q4 2015-9.2%
Q3 2015-6.7%
Q2 2015-12.3%
Q1 2015+3.0%
Q4 2014+11.5%
Q3 2014-1.0%
Q2 2014-0.5%
Q1 2014-6.4%
Q4 2013+2.2%
Q3 2013-5.3%
Q2 2013-7.7%
Q1 2013+3.6%
Q4 2012-4.8%
Q3 2012+4.3%
Q2 2012-8.6%
Q1 2011-2.3%
Q1 2012+4.5%
Q4 2009+5.5%
Q4 2011+5.5%
Q3 2011+19.2%
Q3 2010+19.2%
Q4 2010-12.3%
Q2 2010-12.3%
Q2 2011-12.3%
Q1 2010+8.0%

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