Q1 2009 Earnings Conference Call May 19, 2009 EXHIBIT 99.2 |
2 Introduction & Agenda I. Introduction – Sharon Wenzl Vice President Corporate Communications II. Business Environment – Jim McElya Chairman and Chief Executive Officer III. Operational Overview – Ed Hasler Vice Chairman and President North America IV. Financial Overview – Allen Campbell Chief Financial Officer V. Questions & Answers |
3 Safe Harbor Some of the statements included herein may include forward-looking statements which reflect our current views with respect to future events and financial performance. Statements which include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the federal securities laws or otherwise. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important risk factors that could cause actual results to differ materially from those indicated in these statements. For complete disclosure please reference our 10K important risk factors that are available on our website under the Investor Relations link. We do not intend to update any of these forward-looking statements. |
Business Environment Q1 2009 Jim McElya Chairman & CEO |
5 Business Environment Weakness in global vehicle demand continues Inventories remain high Customers financially challenged Chrysler bankruptcy – many unknowns GM - continuing uncertainties Additional extended plant down time across many OEMs Planning and forecasting challenges |
Cooper-Standard Automotive Results & Actions First quarter results reflect global vehicle production downturn Reorganization of operations yielding results New business and conquest wins up versus prior year Future positives with Fiat – Chrysler merger 6 |
Operational Update Q1 2009 Ed Hasler Vice Chairman & President, North American |
8 CSA Q1 – 2009 Actions Reorganized operating structure Benefiting from efficiencies Smooth transition with customers Continued consolidations of Headquarter facilities North America International (Europe, Asia South America) Divisions Countries Belgium Brazil Canada China Czech Republic France Germany India Italy Japan Korea Mexico Netherlands Poland Spain United Kingdom United States |
9 Chrysler Bankruptcy GM Shutdown Inclusion in Automotive Supplier Support Program (ASSP) Member of Chrysler supplier council Fiat merger positive for Cooper-Standard Adjusting capacity to align with customer shut-down periods Proactively adjusting capacity |
10 Commercial Highlights Supplier consolidation Conquest business wins Cooper-Standard is well-positioned to absorb conquest business Awards: Kunshan, China facility received Ford Q1 Award Myslenice, Poland facility received Toyota Peugeot Citroen Automobile Supplier Performance Award Total Net New Business: Q1- 2009 $95.6 m Q1-2008 $69.2 m Includes Nisco JV sales |
11 Q1-2009 Launches Launches: Daimler (Mercedes E-Class) Ford (Lincoln MKS) General Motors (Chevrolet Camaro) Toyota (Lexus RS) Cooper-Standard delivers advanced launch capabilities |
Financial Overview Q1 2009 Allen Campbell CFO |
13 $ Millions Q-1 2008 Q-1 2009 Net Sales $756.0 $401.8 SGA & E $ 67.4 $ 45.2 Q1 2009 Key Income Statement Items Gross Profit $119.1 $ 37.8 Amortization of Intangibles $ 7.8 $ 7.2 Net Interest Expense $ 24.2 $ 21.1 Net Income (Loss) $ 15.7 $ (55.0) Restructuring / Severance $ 2.4 $22.6 |
st 14 Consolidated EBITDA Reconciliation Net Income (Loss) $ 15.7 $ (55.0) Provision (benefit ) for income tax expense 7.2 EBITDA $ 82.9 $ (7.6) Restructuring 2.4 2.6 (3.8) Three Months Ended March 31 Net interest expense 24.2 21.1 Capital Expenditures $ 8.3 $ 25.7 Depreciation and amortization 35.8 30.1 (2.2) Other (1) 0.5 (1) Unrealized foreign exchange (gain) loss on acquisition-related indebtedness, Canadian voluntary retirement program and gain on bond repurchase. (2) The Company’s share of EBITDA in its joint ventures, net of equity earnings. (3) Severance costs associated with the discontinuance of the Company’s global product line operating divisions and the establishment of a new operating structure organized on the basis of geographic regions. (4) Pro forma adjustments to the Company’s EBITDA for the Company’s discontinuance of its global product line operating divisions and the establishment of a new operating structure organized on the basis of geographic regions. EBITDA adjustment related to other joint ventures (2) 1.5 2.4 Severance (3) 20.0 -- Pro forma adjustments related to product line organization discontinuance (4) 11.8 -- Consolidated EBITDA $ 85.5 $ 28.8 $ USD Millions Q1 2008 Q1 2009 |
Liquidity & Covenant Metrics 15 03/31/2009 Senior Secured to EBITDA 2.54x Covenant Ratio 3.00x Committed Liquidity ($115M Facility) $5.9M Cash $88.3M Total Availability $94.2M Total Debt to EBITDA 5.0x |
Cash Flow 2009 Year to Date 16 |
Questions & Answers |
18 Closing Remarks Economic conditions remain difficult Uncertain customer production schedules Taking all actions necessary Cost reductions taken to improve cost structure Supplier consolidation opportunities |