Commercial Vehicle Group Announces Third Quarter 2012 Results
October 31, 2012 at 16:30 PM EDT
NEW ALBANY, Ohio, Oct. 31, 2012 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $204.8 million for the third quarter of 2012, a decrease of approximately 5.6% compared to $216.9 million for the prior-year period. Operating income for the third quarter of 2012 was $8.9 million compared to $13.5 million for the third quarter of 2011. Net income was $30.5 million for the third quarter, or $1.07 per diluted share, compared to $7.4 million, or $0.26 per diluted share in the prior-year quarter. Included in the third quarter of 2012 results is an income tax benefit of approximately $27.0 million primarily related to the release of the Company's domestic deferred tax asset valuation allowance.
"The decline in our revenues for this quarter compared to the run rates we experienced in the first half of the year is evidence of the softening we had earlier predicted in some of our key end markets," said Mervin Dunn, President and CEO of Commercial Vehicle Group. "Despite some anticipated near-term softness, we still believe our Company is well positioned and our strategy is sound for the long-term. We will continue to stay focused on our strategic growth initiatives as we do not expect near-term fluctuating market conditions to prohibit CVG from achieving our longer-term strategic objectives," added Mr. Dunn.
The Company did not have any outstanding borrowings under its asset-based revolver at September 30, 2012 and, as a result, was not subject to any financial maintenance covenants. In addition, the Company had approximately $99.5 million of cash on its balance sheet at September 30, 2012 with an additional $37.0 million of availability under its asset-based revolver for total liquidity availability of approximately $136.5 million.
"With the recent trends of market softening, we will be focused on utilizing our variable cost structure and adjusting our operations and cost structure accordingly without compromising the foundation we've established for achieving our long term growth objectives," said Chad Utrup, Chief Financial Officer of Commercial Vehicle Group. "We did record a large tax benefit during the quarter related to the reversal of certain domestic deferred tax valuation allowances. As we've indicated in the past, the valuation allowances may be adjusted accordingly from time to time as our deferred tax assets are deemed usable in the future. We do have additional valuation allowances in foreign jurisdictions which we will continue to evaluate as we move forward," added Mr. Utrup.
A conference call to discuss the contents of this press release is scheduled for Thursday, November 1, 2012, at 10:00 a.m. ET. To participate, dial (888) 713-4211 using access code 36308119. You can pre-register for the conference call and receive your pin number at:
This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Group's Web site at www.cvgrp.com.
A replay of the conference call will be available for a period of two weeks following the call. To access the replay, dial (888) 286-8010 using access code 54925146.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. is a leading supplier of a full range of cab related products and systems for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction, military, bus and agriculture markets and the specialty transportation markets. Our products include static and suspension seat systems, electronic wire harness assemblies, controls and switches, cab structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles. The Company is headquartered in New Albany, OH with operations throughout North America, Europe, Asia and Australia. Information about the Company and its products is available on the internet at www.cvgrp.com.
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this press release may contain forward-looking statements about Company expectations for future periods with respect to fluctuations in our end markets, achievement of long-term growth objectives, growth and margin enhancement initiatives, valuation allowances in foreign jurisdictions and the Company's financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck market; (v) the Company's failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Company's ability to comply with the financial covenants in its revolving credit facility; and (x) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2011. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
SOURCE Commercial Vehicle Group, Inc.