Commercial Vehicle Group, Inc. (NASDAQ:CVGI) today reported revenues of $178.5 million for the fourth quarter ended December 31, 2007. Operating income for the fourth quarter was $4.7 million and a net loss was reported for the quarter of $3.3 million, or $0.15 per diluted share. Fully-diluted earnings per share for the fourth quarter of 2007 included a non-cash, non-operating loss on the marking- to-market of forward foreign exchange contracts of approximately $4.9 million, or $0.15 per diluted share. Excluding the impact of its mark-to-market adjustment, fully diluted earnings per share would have been approximately break-even for the quarter. Fully diluted shares outstanding for the quarter were 21.5 million.
"The fourth quarter of 2007 caps the end of a difficult year for CVG," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "We faced multiple challenges this past year, including the expected downturn in the Class 8 market, major product mix swings, customer schedule fluctuations and the effects of certain currency exchange rate fluctuations. We also made some strategic decisions with the closure of our Seattle facility and the acquisition of three companies during the fourth quarter, all of which negatively impacted this past quarter more than we anticipated. We will continue to focus on our long-term growth strategy as well as improving our performance and integrating our acquisitions as we move into 2008," added Dunn.
Revenues for the quarter compared to the prior-year period decreased by approximately $40.3 million, due primarily to the decrease in the North American Class 8 heavy truck market. Operating income decreased by approximately $13.1 million from the prior year quarter and net income decreased by approximately $14.4 million from the prior year quarter primarily as a result of the decrease in revenues as well as the negative impact of marking-to-market the Company's forward foreign exchange contracts.
The Company generated approximately $3.8 million of positive cash flow during the quarter and used approximately $30.0 million of cash for its acquisition of certain assets and liabilities of PEKM Kabeltechnik s.r.o., the Fabrication Division of Gage Industries, Inc. and Short Bark Industries, LLC. Net debt (calculated as total debt less cash and cash equivalents) at the end of the quarter was approximately $149.9 million.
The Company reported revenues of $696.8 million for the twelve-month period ended December 31, 2007 compared to $918.8 million in the prior-year period. Operating income for the twelve-month period was $18.8 million compared to $97.5 million last year. The net loss for the twelve-month period was $3.3 million, or $0.15 per diluted share, compared to net income of $58.1 million, or $2.69 per diluted share, in the prior twelve-month period. Fully- diluted earnings per share for the full year 2007 included a non-cash, non- operating loss on the marking-to-market of forward foreign exchange contracts of approximately $10.0 million, or $0.30 per diluted share. Excluding the impact of its mark-to-market adjustments, fully diluted earnings per share would have been approximately $0.15 for the full year 2007. Fully diluted shares outstanding for the twelve-month period ended December 31, 2007 were 21.4 million compared to 21.5 million in the prior-year period.
"While 2007 presented many challenges, we believe we made great strides towards our long-term strategy and competitiveness," said Chad M. Utrup, chief financial officer of Commercial Vehicle Group. "Our fourth quarter operating results were negatively impacted by certain incremental transfer and startup costs from our Seattle facility closure, as well as the initial performance and integration of the three acquisitions we made during the quarter. We spent considerable time addressing these short-term issues during the quarter and look forward to the positive benefits from each of these actions going forward," added Utrup.
The Company reported its 2008 full year estimates for revenues in the range of $762.0 to $814.0 million and operating income in the range of $17.0 to $30.0 million. Depreciation and amortization is estimated to be in the range of $21.0 million and fully diluted earnings per share are expected to be in the range of $0.10 to $0.50 based upon 21.7 million diluted shares. These estimates are based upon North American Class 8 truck production levels in the range of 175 thousand to 215 thousand units.
A conference call to review fourth quarter and full year 2007 results and preview the upcoming 2008 estimates is scheduled for Thursday, February 7, 2008 at 10:00 a.m. ET. Interested participants may listen to the live conference call by dialing (647) 427-3417 and asking for the CVG fourth quarter 2007 earnings conference call. A recording of this call will be available until midnight, February 21, 2008 by dialing (402) 220-0608 and entering code 33226520.
To listen to a live Webcast of the conference call, go to Commercial Vehicle Group's Website, www.cvgrp.com, click on "Investor Relations" and then the Webcast icon. The Webcast replay will be available from 12:00 p.m. ET, Thursday, February 7, 2008 until midnight, Thursday, February 21, 2008. Listening to the Webcast requires speakers and Windows Media Player. If you do not have Media Player, download the free software at www.windowsmedia.com.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The Company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry, molded products and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about the Company and its products is available on the internet at www.cvgrp.com.
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