Commercial Vehicle (CVGI) 8-K Commercial Vehicle Group Reports Fourth Quarter 2006 Results

Exhibit 99.1

CONTACT: Chad M. Utrup, CFO
Commercial Vehicle Group, Inc.
(614) 289-5360

FOR IMMEDIATE RELEASE

COMMERCIAL VEHICLE GROUP REPORTS
FOURTH QUARTER 2006 RESULTS

NEW ALBANY, OHIO, February 8, 2007 — Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $218.8 million for the fourth quarter ended December 31, 2006, up 9.3 percent compared to $200.1 million in the prior-year quarter. Operating income for the fourth quarter was $17.8 million compared to $22.5 million last year. Net income for the quarter was $11.1 million, or $0.51 per diluted share, compared to $12.4 million, or $0.58 per diluted share, in the prior-year quarter. Fully diluted shares outstanding for the quarter were 21.7 million compared to 21.3 million in the prior-year quarter.

“As previously announced, while we are disappointed in our operating results for the quarter, we remain extremely positive on our approach and strategy for continued success,” said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group.

Revenues for the quarter compared to the prior-year period increased by $18.7 million, due primarily to the increase in the North American Class 8 heavy truck market. Operating income decreased by approximately $4.7 million from the prior year quarter primarily as a result of certain operational and one-time events during the quarter which were outlined and discussed in the Company’s press release dated January 15, 2007, and subsequent conference call on January 16, 2007. Net income decreased by approximately $1.3 million from the prior year quarter and was positively impacted by certain tax provision and rate adjustments made during the period.

The Company generated approximately $8.2 million of positive cash flow during the quarter and used approximately $9.0 million of cash for its acquisition of C.I.E.B. The net debt position at the end of the quarter was approximately $142.3 million.

The Company reported revenues of $918.8 million for the twelve-month period ended December 31, 2006, up 21.8 percent compared to $754.5 million in the prior-year period. Operating income for the twelve-month period was $97.5 million, an 8.9 percent increase, compared to $89.5 million last year. Net income for the twelve-month period was $58.1 million, or $2.69 per diluted share, compared to $49.4 million, or $2.51 per diluted share, in the prior twelve-month period. Fully diluted shares outstanding for the twelve-month period ended December 31, 2006 were 21.5 million compared to 19.7 million in the prior-year period.

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The Company maintains its previously disclosed 2007 full year estimates for revenues in the range of $742 million to $787 million, operating income in the range of $54 million to $71 million and fully diluted earnings per share in the range of $1.25 to $1.75 based upon 21.8 million diluted shares. These estimates are based upon North American Class 8 truck production levels in the range of 215 thousand to 250 thousand units.

A conference call to review fourth quarter results and preview the upcoming first quarter is scheduled for Thursday, February 8, 2007 at 10:00 a.m. ET. Interested participants may listen to the live conference call by dialing (706) 758-9607 and asking for the CVG fourth quarter 2006 earnings conference call. A recording of this call will be available until midnight, February 15, 2007 by dialing (706) 645-9291 and entering code 7568344.

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 8, 2007 until midnight, Thursday, February 15, 2007. 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. CVG is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about CVG and its products is available on the internet at www.cvgrp.com.

Forward-Looking Statements

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 contains forward-looking statements about Company estimates for the remainder of the year with respect to revenues and earnings per share. 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) CVG’s ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which CVG serves; (iv) increased competition in the heavy-duty truck market; (v) CVG’s failure to complete or successfully integrate additional strategic acquisitions; and (vi) various other risks as outlined in CVG’s SEC filings. There can be no assurance that statements made in this press release relating to future events will be achieved. CVG 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 CVG or persons acting on behalf of CVG are expressly qualified in their entirety by such cautionary statements.

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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
REVENUES	$	218,778		$	200,116		$	918,751		$	754,481
COST OF REVENUES		188,668			164,555			768,913			620,031
Gross Profit		30,110			35,561			149,838			134,450
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		12,257			12,967			51,950			44,564
AMORTIZATION EXPENSE		102			141			414			358
Operating Income		17,751			22,453			97,474			89,528
OTHER (INCOME)		(748	)		(143	)		(3,468	)		(3,741	)
INTEREST EXPENSE		3,508			3,735			14,829			13,195
LOSS ON EARLY EXTINGUISHMENT OF DEBT		—			—			318			1,525
			��
Income Before Income Taxes		14,991			18,861			85,795			78,549
PROVISION FOR INCOME TAXES		3,849			6,419			27,745			29,138
Net Income	$	11,142		$	12,442		$	58,050		$	49,411
BASIC EARNINGS PER SHARE	$	0.52		$	0.59		$	2.74		$	2.54
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING		21,306			21,108			21,151			19,440
DILUTED EARNINGS PER SHARE	$	0.51		$	0.58		$	2.69		$	2.51
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING		21,660			21,313			21,545			19,697
Reconciliation to Net Income:
Net Income	$	11,142		$	12,442		$	58,050		$	49,411
Depreciation & Amortization		3,817			3,138			14,983			12,064
Interest Expense		3,508			3,735			14,829			13,195
Provision for Income Taxes		3,849			6,419			27,745			29,138
Loss on early extinguishment of debt		—			—			318			1,525
Miscellaneous (Income)/Expense		(2	)		155			(15	)		52
Adjusted EBITDA (1)	$	22,314		$	25,889		$	115,910		$	105,385
Supplemental Information:
Noncash (gain) on forward exchange contracts	$	(1,496	)	$	(298	)	$	(4,203	)	$	(3,793	)
Nonrecurring provision for prior period debt service		750			—			750			—

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COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)

	December 31,			December 31,
	2006			2005
	(unaudited)			(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	19,821		$	40,641
Accounts receivable, net		123,471			114,116
Inventories, net		88,723			69,053
Prepaid expenses and other current assets		24,272			4,724
Deferred income taxes		8,819			12,571
Total current assets		265,106			241,105
PROPERTY, PLANT AND EQUIPMENT, net		90,388			80,415
GOODWILL		134,766			125,607
INTANGIBLE AND OTHER ASSETS, net		100,562			96,756
TOTAL ASSETS	$	590,822		$	543,883
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES:
Current maturities of long-term debt	$	2,158		$	5,309
Accounts payable		86,610			73,709
Accrued liabilities		40,970			42,983
Total current liabilities		129,738			122,001
LONG-TERM DEBT, net of current maturities		159,956			185,700
OTHER LONG-TERM LIABILITIES		36,223			34,105
Total liabilities		325,917			341,806
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ INVESTMENT:
Common stock, $0.01 par value per share; 30,000,000 shares authorized; 21,368,831 and 21,145,954 shares issued and outstanding		214			211
Treasury stock purchased from employees; 5,836 shares		(115	)		—
Additional paid-in capital		174,044			169,252
Retained earnings		92,007			33,957
Accumulated other comprehensive (loss)		(1,245	)		(1,343	)
Total stockholders’ investment		264,905			202,077
TOTAL LIABILITIES AND STOCKHOLDERS’ INVESTMENT	$	590,822		$	543,883

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Footnotes to Press Release

⁽¹⁾  Adjusted EBITDA is a non-GAAP financial measure that is reconciled to net income, its most directly comparable GAAP measure, in the accompanying financial tables. Adjusted EBITDA is defined as net earnings before interest, taxes, depreciation, amortization, gains/losses on the early extinguishment of debt, miscellaneous income/expenses and cumulative effect of changes in accounting principle. In calculating Adjusted EBITDA, the Company excludes the effects of gains/losses on the early extinguishment of debt, miscellaneous income/expenses and cumulative effect of changes in accounting principles because the Company’s management believes that some of these items may not occur in certain periods, the amounts recognized can vary significantly from period to period and these items do not facilitate an understanding of the Company’s operating performance. The Company’s management utilizes Adjusted EBITDA, in addition to the supplemental information, as an operating performance measure in conjunction with GAAP measures, such as net income and gross margin calculated in conformity with GAAP.

The Company’s management uses Adjusted EBITDA, in addition to the supplemental information, as an integral part of its report and planning processes and as one of the primary measures to, among other things:

(i)	monitor and evaluate the performance of the Company’s business operations;
(ii)	facilitate management’s internal comparisons of the Company’s historical operating performance of its business operations;
(iii)	facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels;
(iv)	review and assess the operating performance of the Company’s management team and as a measure in evaluating employee compensation and bonuses;
(v)	analyze and evaluate financial and strategic planning decisions regarding future operating investments; and
(vi)	plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

The Company’s management believes that Adjusted EBITDA, in addition to the supplemental information, is useful to investors as it provides them with disclosures of the Company’s operating results on the same basis as that used by the Company’s management. Additionally, the Company’s management believes that Adjusted EBITDA, in addition to the supplemental information, provides useful information to investors about the performance of the Company’s overall business because the measure eliminates the effects of certain recurring and other unusual or infrequent charges that are not directly attributable to the Company’s underlying operating performance. Additionally, the Company’s management believes that because it has historically provided a non-GAAP financial measure in previous filings, that continuing to include a non-GAAP measure in its filings provides consistency in its financial reporting and continuity to investors for comparability purposes. Accordingly, the Company believes that the presentation of Adjusted EBITDA, when used in conjunction with the supplemental information and GAAP financial measures, is a useful financial analysis tool, used by the Company’s management as described above, that can assist investors in assessing the Company’s financial condition, operating performance and underlying strength. Adjusted EBITDA should not be considered in isolation or as a substitute for net income prepared in conformity with GAAP. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA, as well as the other information in this filing, should be read in conjunction with the Company’s financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission.

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