NASDAQ$CVGI

Commercial Vehicle Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record fourth quarter sales in the Electrical Systems Segment, driven by Warehouse Automation and secured an estimated $100+ million of net annualized new business awards during 2020, driven by Warehouse Automation and Electric Vehicles.

CVG reported a 14.0% increase in revenue to $216.0 million in Q4 2020, driven primarily by growth in warehouse automation. Operating income increased by $9.3 million to $5.0 million, and adjusted EBITDA increased by $9.4 million to $13.0 million. The company secured an estimated $100+ million of net annualized new business awards during 2020.

  • Revenue increased by 14.0% to $216.0 million due to growth in warehouse automation.
  • Operating income increased by $9.3 million to $5.0 million due to higher volume and improved cost structure.
  • Adjusted EBITDA increased by $9.4 million to $13.0 million due to higher revenues, lower costs, and improved sales mix.
  • Warehouse automation revenues grew to $34.4 million, representing 15.9% of Company sales.

Headline financials

Total Revenue

$216M

Previous: $189M+14.0%
EPS (adj)

-$0.05

Previous: -$0.15+66.7%
Capital Expenditures

$1.12M

Previous: $4.73M-76.3%
Free Cash Flow

$2.48M

Previous: $2.98M-16.8%
Net Income

-$4.1M

Previous: -$7.53M+45.6%
Operating Income

$5M

Previous: -$4.28M+217.0%
Gross Profit

$23.1M

Previous: $10.2M+127.6%
Cash & Equivalents

$50.5M

Previous: $39.5M+27.8%
Total Assets

$454M

Previous: $436M+4.3%
Stock-Based Comp

$989K

Previous: $643K+53.8%

Revenue & EPS history

CVG · Revenue · Quarterly

$216M

Q4 2020+14%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

CVG · $218M total across 2 segments · Q4 2020

  • Global Electrical Systems
    $139M+21.7%
  • Global Seating
    $79.1M+3.4%

Forward guidance

The company expects North American Class 8 truck production levels to be at 302,000 units and Class 5-7 production to be at 246,000 units in 2021. Demand for warehouse automation products is expected to grow approximately 14% per year through 2026.

Tailwinds

  • North American Class 8 truck production levels are expected to increase.
  • North American Class 5-7 production levels are expected to increase.
  • The outlook for electric vehicle adoption rates are favorable.
  • Demand for warehouse automation products is expected to grow approximately 14% per year through 2026.
  • Company goal to deliver more than $150 million of sales in 2021 from warehouse automation.

Headwinds

  • COVID-19 induced supply and cost risks in the business.
  • The full year and specifically the 2nd quarter were impacted significantly by COVID-19.
  • There is still COVID-19 risks in the business.
  • Multi-year effort to make CVG a secular growth company.
  • Still has much to do.

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 Q4 2020

Historical avgQ4 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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