Commercial Vehicle Group, Inc. (CVGI) Bundle
A Brief History of CVGI
Commercial Vehicle Group, Inc. (CVGI) has undergone significant changes and challenges up to 2024. The company has focused on restructuring efforts to enhance operational efficiencies and align its cost structure for margin expansion.
Financial Performance Overview
For the nine months ended September 30, 2024, CVGI reported revenues of $560.1 million, down from $641.7 million in the same period of 2023, representing a decrease of 12.7% .
Gross Profit and Margins
The gross profit for the same period was $60.0 million, compared to $96.7 million in 2023, marking a decrease of 37.9%. The gross profit margin fell to 10.7% from 15.1% .
Segment Performance
The following table summarizes the operating data for CVGI's key segments for the nine months ended September 30, 2024 compared to the same period in 2023:
| Segment | 2024 Revenues ($ thousands) | 2023 Revenues ($ thousands) | $ Change ($ thousands) | % Change |
|---|---|---|---|---|
| Vehicle Solutions | 312,785 | 362,820 | (50,035) | (13.8) |
| Electrical Systems | 149,327 | 172,236 | (22,909) | (13.3) |
| Aftermarket & Accessories | 97,951 | 106,691 | (8,740) | (8.2) |
Operating Income and Expenses
Operating income for the nine months ended September 30, 2024 was $4.5 million, a sharp decline from $35.8 million in the previous year . Selling, general and administrative expenses decreased to $55.5 million from $60.9 million .
Cash Flow and Liquidity
Net cash used in operating activities for the nine months ended September 30, 2024 was $(6.8 million), compared to $30.0 million cash provided in 2023 . As of September 30, 2024, the company had total liquidity of $177.2 million, including $30.9 million in cash .
Debt and Financing
As of September 30, 2024, CVGI had outstanding borrowings of $14.0 million under its revolving credit facility, with total consolidated availability of $146.3 million . The company also repaid $20.0 million in accordance with amendments to its credit agreement .
Income Tax and Net Income
CVGI recorded a net loss from continuing operations of $(0.7 million) for the nine months ended September 30, 2024, compared to net income of $21.1 million in the prior year . The provision for income taxes for the same period was a benefit of $1.1 million .
Shareholder Equity
As of September 30, 2024, CVGI had 33,494,483 shares of common stock issued and outstanding . The company’s authorized capital stock consists of 60,000,000 shares of common stock with a par value of $0.01 per share .
Future Outlook
CVGI's management continues to assess operational strategies and market conditions to enhance financial performance and shareholder value as it navigates the ongoing restructuring efforts.
A Who Owns Commercial Vehicle Group, Inc. (CVGI)
Ownership Structure
As of 2024, the ownership of Commercial Vehicle Group, Inc. (CVGI) is characterized by a diverse group of institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.5% |
| Institutional Investor | Vanguard Group, Inc. | 9.8% |
| Institutional Investor | Dimensional Fund Advisors | 5.2% |
| Individual Investor | CEO William E. W. Barlow | 2.3% |
| Other Retail Investors | Various | 72.2% |
Stock Performance
As of September 30, 2024, the stock performance of CVGI reflects a volatile market environment, with shares trading in the range of $3.50 to $5.50 over the past year. The stock closed at $4.20 on September 30, 2024, signifying a decrease of approximately 14.5% from the previous year’s closing price of $4.90.
Market Capitalization
The market capitalization of Commercial Vehicle Group, Inc. is approximately $140 million as of the end of September 2024, based on the total number of outstanding shares of approximately 33.5 million.
Recent Financial Performance
For the nine months ended September 30, 2024, CVGI reported revenues of $560.1 million, a decrease of 12.7% compared to $641.7 million for the same period in 2023. The net loss from continuing operations for this period was $736,000, significantly down from a net income of $21.1 million in 2023.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Revenues (in millions) | $560.1 | $641.7 |
| Gross Profit (in millions) | $60.0 | $96.7 |
| Net Income (Loss) (in thousands) | ($736) | $21,061 |
| SG&A Expenses (in millions) | $55.5 | $60.9 |
Debt and Liquidity
As of September 30, 2024, Commercial Vehicle Group reported total debt of $128.8 million, which includes a term loan facility of $115 million and a revolving credit facility of $14 million. The company had total liquidity of $177.2 million, including cash and availability from credit facilities.
Conclusion
Commercial Vehicle Group, Inc. remains under significant institutional ownership, with key players such as BlackRock and Vanguard holding substantial stakes. The company's recent financial performance indicates challenges, but it maintains a healthy liquidity position to navigate through the current market environment.
Commercial Vehicle Group, Inc. (CVGI) Mission Statement
Commercial Vehicle Group, Inc. (CVGI) focuses on providing high-quality products and services to the commercial vehicle and transportation industries. The company aims to enhance customer satisfaction through innovation, operational excellence, and a commitment to safety and sustainability in its business practices.
Financial Performance Overview
As of September 30, 2024, CVGI reported the following key financial metrics:
| Metric | 2024 | 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Revenues | $560,063,000 | $641,747,000 | ($81,684,000) | (12.7%) |
| Gross Profit | $60,044,000 | $96,714,000 | ($36,670,000) | (37.9%) |
| Net Income (Loss) | ($736,000) | $21,061,000 | ($21,797,000) | Not meaningful |
| SG&A Expenses | $55,531,000 | $60,910,000 | ($5,379,000) | (8.8%) |
| Interest Expense | $6,974,000 | $7,910,000 | ($936,000) | (11.8%) |
Restructuring and Operational Efficiency
CVGI has undertaken restructuring programs to realign its cost structure, which included:
- Workforce reductions
- Footprint optimization
- Reorganization initiatives aimed at driving efficiencies
In the nine months ended September 30, 2024, the company incurred $9.8 million in restructuring expenses.
Liquidity Position
As of September 30, 2024, CVGI reported total liquidity of $177.2 million, consisting of:
- Cash: $30.9 million
- Available credit facilities: $146.3 million
The company also had outstanding letters of credit amounting to $1.1 million.
Segment Performance
The following table summarizes the performance of CVGI's segments for the nine months ended September 30, 2024:
| Segment | Revenues | Gross Profit | SG&A Expenses | Operating Income |
|---|---|---|---|---|
| Vehicle Solutions | $312,785,000 | $32,177,000 | $15,985,000 | $16,192,000 |
| Electrical Systems | $149,327,000 | $9,934,000 | $7,799,000 | $2,135,000 |
| Aftermarket & Accessories | $97,951,000 | $18,091,000 | $6,228,000 | $11,863,000 |
The company has experienced a decrease in revenues across all segments, driven by lower sales volume and a softening in customer demand.
Market Position and Future Outlook
CVGI is focused on maintaining its competitive edge in the commercial vehicle sector through:
- Continuous improvement in product quality
- Investment in innovative technologies
- Strengthening customer relationships
This strategic approach is intended to enhance the company's market position and drive sustainable growth in the future.
How Commercial Vehicle Group, Inc. (CVGI) Works
Company Overview
Commercial Vehicle Group, Inc. (CVGI) operates in the manufacturing and supply of components for the commercial vehicle industry. The company is segmented into three main areas: Vehicle Solutions, Electrical Systems, and Aftermarket & Accessories.
Financial Performance
As of September 30, 2024, CVGI reported the following financial metrics for the nine months ended:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | % Change |
|---|---|---|---|---|
| Revenues | $560,063 | $641,747 | $(81,684) | (12.7%) |
| Gross Profit | $60,044 | $96,714 | $(36,670) | (37.9%) |
| SG&A Expenses | $55,531 | $60,910 | $(5,379) | (8.8%) |
| Net Income (Loss) from Continuing Operations | $(736) | $21,061 | $(21,797) | NM |
Segment Performance
The company's performance is further detailed by segment:
| Segment | 2024 Revenues (in thousands) | 2023 Revenues (in thousands) | Change ($) | % Change |
|---|---|---|---|---|
| Vehicle Solutions | $312,785 | $362,820 | $(50,035) | (13.8%) |
| Electrical Systems | $149,327 | $172,236 | $(22,909) | (13.3%) |
| Aftermarket & Accessories | $97,951 | $106,691 | $(8,740) | (8.2%) |
Operating Income
Operating income (loss) for the nine months ended September 30:
| Segment | 2024 Operating Income (in thousands) | 2023 Operating Income (in thousands) | Change ($) | % Change |
|---|---|---|---|---|
| Vehicle Solutions | $16,192 | $29,654 | $(13,462) | (45.4%) |
| Electrical Systems | $2,135 | $19,592 | $(17,457) | (89.1%) |
| Aftermarket & Accessories | $11,863 | $15,054 | $(3,191) | (21.2%) |
Liquidity and Capital Resources
As of September 30, 2024, CVGI reported total liquidity of:
| Source | Amount (in millions) |
|---|---|
| Cash | $30.9 |
| Availability from Credit Facilities | $146.3 |
Balance Sheet Highlights
Selected balance sheet items as of September 30, 2024:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $495,341 |
| Total Liabilities | $316,076 |
| Total Stockholders' Equity | $179,265 |
Debt Overview
Debt structure as of September 30, 2024:
| Type of Debt | Amount (in thousands) |
|---|---|
| Term Loan Facility | $115,000 |
| Revolving Credit Facility | $14,000 |
| Total Long-term Debt | $128,759 |
Cash Flow Summary
Cash flow from operating, investing, and financing activities for the nine months ended September 30:
| Activity | 2024 (in thousands) | 2023 (in thousands) | Change ($) |
|---|---|---|---|
| Operating Activities | $(6,835) | $29,990 | $(36,825) |
| Investing Activities | $12,868 | $(15,196) | $28,064 |
| Financing Activities | $(12,927) | $531 | $(13,458) |
Recent Developments
CVGI has undertaken restructuring programs, incurring costs of $9.8 million during the nine months ended September 30, 2024, to align its cost structure and improve operational efficiency.
How Commercial Vehicle Group, Inc. (CVGI) Makes Money
Revenue Streams
Commercial Vehicle Group, Inc. (CVGI) generates revenue through multiple segments, primarily focusing on Vehicle Solutions, Electrical Systems, and Aftermarket & Accessories. For the nine months ended September 30, 2024, the detailed revenue breakdown is as follows:
| Segment | Revenues (2024, in $ thousands) | Revenues (2023, in $ thousands) | $ Change | % Change |
|---|---|---|---|---|
| Vehicle Solutions | 312,785 | 362,820 | (50,035) | (13.8%) |
| Electrical Systems | 149,327 | 172,236 | (22,909) | (13.3%) |
| Aftermarket & Accessories | 97,951 | 106,691 | (8,740) | (8.2%) |
| Total Revenues | 560,063 | 641,747 | (81,684) | (12.7%) |
Cost of Revenues
For the nine months ended September 30, 2024, the cost of revenues was reported at $500,019, compared to $545,033 for the same period in 2023. This represents a decrease of $45,014 or 8.3%. The primary components of the cost of revenues include:
- Raw material and purchased component costs: $44.2 million decrease (13.1%)
- Labor and overhead expenses: $0.8 million decrease (0.4%)
Gross Profit and Margins
The gross profit for the nine months ended September 30, 2024, was $60,044, down from $96,714 in 2023. The gross profit margin was 10.7%, compared to 15.1% in the prior year. This decline is attributed to:
- Lower sales volumes
- Unfavorable product mix
- Increased restructuring charges
Selling, General & Administrative (SG&A) Expenses
SG&A expenses for the nine months ended September 30, 2024, totaled $55,531, compared to $60,910 for the same period in 2023, reflecting a decrease of $5,379 or 8.8%. Key factors influencing SG&A expenses include:
- Gain on the sale of a building: $3.5 million
- Increased salary expenses and consulting fees
Operating Income
Operating income for the nine months ended September 30, 2024, was $4,513, significantly down from $35,804 in 2023. The reduction in operating income is due to:
- Decreased revenues across all segments
- Increased restructuring costs of $8.6 million
Interest and Other Expenses
Interest expense for the nine months ended September 30, 2024, was $6,974, a decrease from $7,910 in 2023. Other income increased by $1.1 million during the same period, primarily due to TSA fees recognized in 2024.
Net Income (Loss)
For the nine months ended September 30, 2024, CVGI reported a net loss from continuing operations of $(736), compared to a net income of $21,061 for the same period in 2023. The decrease is primarily due to:
- Significant drop in revenues
- Increased restructuring costs
Liquidity and Capital Resources
As of September 30, 2024, CVGI had total liquidity of $177.2 million, which includes:
- Cash: $30.9 million
- Availability from credit facilities: $146.3 million
Outstanding letters of credit stood at $1.1 million as of the same date. The company relies on timely collection of receivables as a source of liquidity.
Segment Performance Analysis
The performance of each segment for the nine months ended September 30, 2024, is summarized below:
| Segment | Revenues (in $ thousands) | Gross Profit (in $ thousands) | Gross Profit Margin (%) |
|---|---|---|---|
| Vehicle Solutions | 312,785 | 32,177 | 10.3% |
| Electrical Systems | 149,327 | 9,934 | 6.7% |
| Aftermarket & Accessories | 97,951 | 18,091 | 18.5% |
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Resources:
- Commercial Vehicle Group, Inc. (CVGI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Commercial Vehicle Group, Inc. (CVGI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Commercial Vehicle Group, Inc. (CVGI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.