NASDAQ$CVGI

Commercial Vehicle Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

CVG reported third quarter results with revenue down due to less commercial vehicle builds, but offset partially by warehouse automation.

CVG's third quarter results showed a decrease in revenue compared to the previous year, primarily due to lower commercial vehicle builds, although this was partially offset by growth in warehouse automation. The company's operating income decreased due to special charges, but adjusted EBITDA increased slightly due to lower costs and improved sales mix. The company is focused on diversifying into new markets such as warehouse automation and electric vehicles.

  • Revenue decreased by 16.7% year-over-year due to less commercial vehicle builds, offset partially by warehouse automation.
  • Revenue increased 47.9% sequentially compared to the second quarter.
  • Operating Income decreased due to special charges, but increased sequentially on an adjusted basis.
  • Adjusted EBITDA increased slightly due to lower costs and improved sales mix.

Headline financials

Total Revenue

$188M

Previous: $225M-16.7%
EPS (adj)

$0.21

Previous: $0.28-25.0%
Adjusted EBITDA

$16.4M

Previous: $16.3M+0.6%
Adjusted EBITDA Margin

8.8%

No prior period
Gross Margin

12.9%

No prior period
Adjusted Gross Margin

13.4%

No prior period
Operating Margin

4.7%

No prior period
Adjusted Operating Margin

6.4%

No prior period
Capital Expenditures

-$6.02M

Previous: -$19.3M+68.8%
Free Cash Flow

-$1.84M

Previous: -$10.8M+82.9%
Net Income

$4.18M

Previous: $8.52M-51.0%
Operating Income

$8.89M

Previous: $13.2M-32.8%
Gross Profit

$24.2M

Previous: $31.2M-22.6%
Cash & Equivalents

$53.6M

Previous: $38.7M+38.5%
Total Assets

$427M

Previous: $471M-9.4%
Stock-Based Comp

$741K

Previous: $721K+2.8%

Revenue & EPS history

CVG · Revenue · Quarterly

$188M

Q3 2020-16.7%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

CVG · $190M total across 2 segments · Q3 2020

  • Global Electrical Systems
    $121M-7.8%
  • Global Seating
    $68.9M-28.0%

Forward guidance

CVG anticipates steady demand for its products, supported by North American truck production levels and growth in warehouse automation. However, the company acknowledges that the effects of COVID-19 pose a risk to its outlook.

Tailwinds

  • North American 2020 Class 8 truck production levels are expected to be at 206,000 units.
  • North American 2020 Class 5-7 production are expected to be at 223,000 units.
  • RoboticsBusinessReview.com suggests growth rates for warehouse automation greater than 20% through 2022.
  • Outlook supports steady demand for the Company’s products.
  • The Company is having success with its growth program aimed at lessening its historical dependency on the North American combustion-engine, commercial truck market.

Headwinds

  • The effects of COVID, including the continued uncertainty of the pandemic, poses a risk to our outlook.
  • Expect above average absenteeism, occasional shutdowns, and flexible work schedules, and quarantining.
  • Vulnerable to the impacts of coronavirus due to need to gather in factories.
  • Vulnerable to the impacts of coronavirus due to global footprint.
  • Vulnerable to the impacts of coronavirus due to dependency of global supply chains.

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 Q3 2020

Historical avgQ3 2020

+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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