NASDAQ$CVGI

Commercial Vehicle Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported second quarter results with sales of $250.8 million, EPS of $0.08, and adjusted EPS of $0.13.

CVG reported a decrease in sales by 2.8% to $250.8 million in the second quarter of 2022. Despite a challenging operating environment, the company made progress on multiple fronts including improved pricing, restructuring, and new business wins. The company expects improved profitability and free cash flow in the second half of 2022.

  • Sales decreased by 2.8% to $250.8 million.
  • Operating income was $6.2 million, with an adjusted operating income of $8.1 million.
  • Net income was $2.5 million, or $0.08 per diluted share, with an adjusted net income of $4.3 million, or $0.13 per diluted share.
  • New pricing expected to benefit profitability by approximately $15 million in the second half of 2022.

Headline financials

Total Revenue

$251M

Previous: $258M-2.7%
EPS (adj)

$0.13

Previous: $0.33-60.6%
Adjusted EBITDA

$12.4M

No prior period
Adjusted EBITDA Margin

4.9%

No prior period
Capital Expenditures

-$8.62M

Previous: -$6.94M-24.1%
Free Cash Flow

-$6.13M

Previous: -$1.85M-231.6%
Net Income

$2.49M

Previous: $5.1M-51.2%
Operating Income

$6.23M

Previous: $16.3M-61.9%
Gross Profit

$21.9M

Previous: $34.4M-36.3%
Cash & Equivalents

$28.5M

Previous: $41M-30.4%
Total Assets

$557M

Previous: $530M+5.0%
Stock-Based Comp

$1.7M

Previous: $2.2M-22.7%

Revenue & EPS history

CVG · Revenue · Quarterly

$251M

Q2 2022-2.7%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

CVG · $47.3M total across 1 segment · Q2 2022

  • Global Electrical Systems
    $47.3M-73.0%

Forward guidance

CVG expects profits and free cash flow to improve sequentially in the second half of 2022. The company expects full year debt paydown to be $25 million to $40 million.

Tailwinds

  • Improved pricing on existing business.
  • Execution of restructuring plan with associated cost savings.
  • Winning new business in targeted areas, especially in the Electric Vehicle market.
  • A re-start of its profitable China business.
  • Stabilization of the Company’s business in the Ukraine and Czech Republic region.

Headwinds

  • Sudden pullback by an industry leader in the e-commerce fulfillment arena.
  • Difficult operating environment with parts and labor shortages.
  • Continued inflation.
  • Global supply chain constraints.
  • Warehouse automation industry below trendline due to an industry leader's actions.

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 Q2 2022

Historical avgQ2 2022

+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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