NYSE$CMT

Core Molding Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record quarterly sales and faced gross margin pressures due to product mix shifts and inflation.

Core Molding Technologies reported record quarterly sales of $98.7 million, a 23% increase year-over-year. However, gross margins were impacted by product mix shifts, production inefficiencies, and inflation, leading to a decrease in operating income and net income compared to the prior year.

  • Net sales increased by 22.7% to $98.7 million compared to the prior year.
  • Raw material cost recoveries were approximately $7.8 million, representing 7.9% of net sales.
  • Operating income decreased to $4.4 million, or 4.4% of net sales, compared to $6.2 million in the prior year.
  • Net income decreased to $2.2 million, or $0.26 per diluted share, compared to $4.1 million in the prior year.

Headline financials

Total Revenue

$98.7M

Previous: $80.5M+22.7%
EPS (adj)

$0.26

Previous: $0.48-45.8%
Adjusted EBITDA

$7.94M

No prior period
Capital Expenditures

-$8.62M

Previous: -$5.39M-60.1%
Free Cash Flow

-$6.44M

Previous: -$1.3M-394.6%
Net Income

$2.19M

Previous: $4.09M-46.5%
Operating Income

$4.39M

Previous: $6.17M-29.0%
Gross Profit

$13M

Previous: $13.7M-5.0%
Cash & Equivalents

$114K

Previous: $5.6M-98.0%
Total Assets

$205M

Previous: $188M+8.7%
Stock-Based Comp

$581K

Previous: $486K+19.5%

Revenue & EPS history

Core Molding · Revenue · Quarterly

$98.7M

Q2 2022+22.7%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Core Molding · $15.1M total across 3 segments · Q3 2023

  • Tooling
    $5.83M-37.1%
  • Building products
    $4.82M
  • Industrial and Utilities
    $4.47M

Forward guidance

The Company has planned 2022 capital expenditures of approximately $20 million. Expenditures for automation and the addition of three presses in the direct long fiber and structural foam processes will provide added capacity to allow the Company to meet its current demand and to add new business.

Tailwinds

  • Major programs are ramping up throughout 2022.
  • New business wins continue to be the primary growth driver.
  • An extension of Volvo supply agreement through 2027.
  • The new terms will provide a financial benefit starting in the third quarter of 2022.
  • Demand remains strong which allows sales team to be more selective on new business opportunities.

Headwinds

  • Gross margins were impacted by inflationary pressures recoveries.
  • Operating inefficiencies driven by high demand and product mix shift.
  • Impact of the coronavirus (COVID 19) global pandemic on our business.
  • Fluctuations in foreign currency exchange rates.
  • Risk of cancellation or rescheduling of orders.

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

+1.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.4%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+34.9%

Q1 2020

Best reaction

-36.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-1.3%-7.8%
Q4 2025+8.4%+7.0%+28.9%
Q3 2025+2.4%+4.9%+2.2%
Q1 2025-1.7%+1.0%+4.1%
Q4 2024-0.4%+6.1%+11.8%
Q3 2024+7.5%+8.1%+5.2%
Q2 2024-7.5%+3.9%+3.3%
Q1 2024+1.6%+3.8%-10.8%
Q4 2023-0.9%-5.1%-5.5%
Q3 2023-36.7%-33.7%-24.6%
Q2 2023+15.5%+15.6%+13.1%
Q1 2023+7.3%+7.2%+2.8%
Q4 2022+11.2%+9.5%+26.1%
Q3 2022+8.6%+8.3%+5.7%
Q2 2022+5.5%+18.0%+3.4%
Q1 2022+4.1%+2.3%-3.0%
Q4 2021+20.0%+22.8%+25.8%
Q3 2021-13.0%-13.2%-25.6%
Q2 2021+11.4%+8.3%-2.8%
Q1 2021+23.8%+23.7%+12.4%
Q4 2020-7.3%-8.2%-8.3%
Q3 2020+13.3%+10.2%+41.9%
Q2 2020+8.0%+9.8%+32.9%
Q1 2020+34.9%+20.8%+70.3%
Q4 2019+0.5%+0.5%-42.7%
Q3 2019-1.5%+1.7%+1.7%
Q2 2019+13.4%+9.2%+8.7%
Q1 2019-2.0%-0.6%-10.1%
Q4 2018-3.3%-0.5%+1.9%
Q3 2018+0.7%+2.0%+14.5%
Q2 2018-27.4%-30.1%-30.4%
Q1 2018-4.3%-12.0%-9.6%
Q4 2017-0.8%-3.9%-7.6%
Q3 2017-7.9%-9.6%-8.6%
Q2 2017+10.7%+11.1%+5.6%
Q1 2017+3.0%+1.5%+6.3%
Q4 2016-1.7%+0.1%+15.4%
Q3 2016-18.5%-13.2%-7.5%
Q2 2016-16.8%-22.1%-7.9%
Q1 2016+15.6%
Q4 2015-2.8%
Q3 2015-29.3%
Q2 2015+17.3%
Q1 2015+7.2%
Q4 2014+6.1%
Q3 2014+4.6%
Q2 2014+6.5%
Q1 2014+1.3%
Q4 2013-8.2%
Q3 2013+1.7%
Q2 2013-0.8%
Q1 2013-0.6%
Q4 2012-0.1%
Q3 2012-0.8%
Q2 2012+1.0%
Q1 2011-4.0%
Q1 2012+2.5%
Q4 2011+0.9%
Q3 2010+1.0%
Q3 2011+1.0%
Q2 2011+6.5%
Q2 2010+6.5%
Q4 2010+6.5%
Q1 2010-3.0%

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