![]() Cooper Standard Third Quarter 2012 Earnings Call November 9, 2012 Exhibit 99.1 |
![]() cooperstandard 2 Forward-Looking Statements This presentation includes forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act, reflecting management’s current analysis and expectations, based on what are believed to be reasonable assumptions. The words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future results and may involve known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, including, without limitation, the risks and uncertainties set forth in the Company’s most recent Annual Report on the Form 10-K, subsequent Quarterly Reports on Form 10Q, and other Securities and Exchange Commission filings. The forward-looking statements in this presentation are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof. |
![]() Jeff Edwards President & CEO Executive Overview Third Quarter 2012 |
![]() cooperstandard 4 Jeff Edwards Introduction • Joined Cooper Standard October 15, 2012 • Twenty-eight plus years in automotive industry • Progression of key roles with Johnson Controls, Inc. including lead automotive positions in Asia and North America |
![]() cooperstandard 5 First Hundred Day Plan • Global tour to uncover opportunities • Review technologies and innovation pipeline • Align organization structure • Prioritize and accelerate initiatives for growth • Grow Asian business • Accelerate European turnaround |
![]() Financial Overview Third Quarter 2012 Allen Campbell Chief Financial Officer |
![]() cooperstandard Q3 and Year-to-Date 2012 Revenue 7 $ USD Millions Q3 2011 Revenue: $708.5 Q3 2012 Revenue: $684.0 YTD 2011 Revenue: $2,157.8 YTD 2012 Revenue: $2,183.8 Note: Numbers subject to rounding |
![]() cooperstandard Q3 and Year-to-Date 2012 Performance 8 $ USD Millions, except per share amounts Q3 2011 Q3 2012 YTD 2011 YTD 2012 Sales 708.5 684.0 2,157.8 2,183.8 Gross Profit 108.6 103.1 353.0 339.2 SGA 64.4 65.4 190.9 206.4 Operating Profit 33.7 23.6 102.3 105.4 Net Income 15.7 11.6 79.6 112.7 Fully Diluted EPS $0.58 $0.44 $3.08 $4.63 Adjusted EBITDA 73.4 69.8 257.5 227.1 % Margin 10.4% 10.2% 11.9% 10.4% |
![]() cooperstandard 9 Cooper Standard Non-consolidated Joint Venture Sales- Q3 2012 34% Joint Venture Partner Product Country Huayu-Cooper Sealing SAIC/HASCO Sealing China Nishikawa Cooper Nishikawa Rubber Sealing U.S. Nishikawa Tachaplalert Cooper Nishikawa Rubber Sealing Thailand Sujan CSF India Magnum Elastomers AVS India $0 $30 $60 $90 $120 Q3 2011 Q3 2012 $88 $118 Providing products to Japanese, Chinese and Indian OEMs |
![]() cooperstandard 10 Q3 and Year-to-Date 2012 Cash Flow Note: Numbers subject to rounding ($ USD Millions) Q3 2012 YTD Q3 2012 Cash from business 42.4 165.4 Pension funding - US (3.3) (26.8) Changes in operating assets & liabilities (26.3) (160.6) Cash provided by / (used in) operations 12.8 (22.0) Capital expenditures (33.0) (91.5) Cash used in operations including CAPEX (20.2) (113.5) Acquisition of business, net cash acquired - (1.1) Proceeds from sale of assets 0.7 9.0 Dividends – Preferred Stock (1.7) (5.1) Financing activities (4.6) (7.1) Repurchase of preferred stock - (4.9) Repurchase of common stock (7.0) (20.6) Foreign exchange/other (1.5) (0.6) Net cash used (34.3) (143.9) Cash balance as of 12/31/2011 361.7 Cash balance as of 9/30/2012 217.8 Board of Directors authorizes $25 million share repurchase program |
![]() cooperstandard 11 Liquidity as of September 30, 2012 Cash on Balance Sheet $217.8 ABL Revolver 125.0 Letters of Credit (27.6) Total Liquidity $315.2 Strong balance sheet and liquidity to support growth • ABL Revolver undrawn • Net leverage = $264.4 million • Net leverage ratio = 0.9 • Interest coverage ratio = 6.8 • No major debt maturity until 2018 ($ USD Millions) $0 $100 $200 $300 $400 $500 Debt Cash $482.2 $217.8 |
![]() cooperstandard 12 2012 Guidance * Sales guidance is based on North American production of 15.1 million, and Europe (including Russia) production of 19.0 million. Revenue |
![]() Questions & Answers |
![]() Appendix |
![]() cooperstandard Non-GAAP Financial Measures 15 EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. When analyzing the company’s operating performance, investors should use EBITDA and adjusted EBITDA in addition to, and not as alternatives for, net income (loss), operating income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of the company’s performance. EBITDA and adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the company’s results of operations as reported under GAAP. Other companies may report EBITDA and adjusted EBITDA differently and therefore Cooper Standard’s results may not be comparable to other similarly titled measures of other companies. |
![]() cooperstandard EBITDA and Adjusted EBITDA Reconciliation 16 Note: Numbers subject to rounding ($ USD Millions) 2011 2012 2011 2012 Net income $15.7 $11.6 $79.6 $112.7 Provision (benefit) for income tax expense 8.0 5.4 26.8 (32.8) Interest expense, net of interest income 9.6 11.3 30.2 33.3 Depreciation and amortization 31.7 29.1 92.0 91.2 EBITDA $65.0 $57.4 $228.6 $204.4 Restructuring (1) 6.5 10.2 48.1 15.8 Noncontrolling interest restructuring (2) (1.3) (0.2) (19.0) (0.5) Net gain on partial sale of joint venture (3) - - (11.4) - Stock-based compensation (4) 3.0 2.4 8.3 7.4 Inventory write-up (5) - - 0.7 - Acquisition costs (6) 0.2 - 2.2 - Adjusted EBITDA $73.4 $69.8 $257.5 $227.1 Three Months Ended September 30, Nine Months Ended September 30, (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to FMEA joint venture. (3) Net gain on partial sale of ownership percentage in joint venture. (4) Non-cash stock amortization expense and non-cash stock option expense for grants issued at emergence from bankruptcy. (5) Write-up of inventory to fair value for the USi, Inc. and the FMEA joint venture, net of noncontrolling interest. (6) Costs incurred in relation to the FMEA joint venture agreement. |
![]() cooperstandard 17 Net Leverage Ratio as of Sep 30, 2012 - LTM (1) Includes cash and noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at emergence from bankruptcy. (4) Costs related to corporate development activities. Note: Numbers subject to rounding ($ USD Millions) Three Months Ended Twelve Months Ended Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Sep 30, 2012 Net income $ 23.2 $ 23.8 $ 77.3 $ 11.6 $ 135.9 Provision (benefit) for income tax expense (6.0) 8.1 (46.2) 5.4 (38.7) Interest expense, net of interest income 10.3 11.2 10.8 11.3 43.6 Depreciation and amortization 32.1 31.6 30.5 29.1 123.3 EBITDA $ 59.6 $ 74.7 $ 72.4 $ 57.4 $ 264.1 Restructuring (1) 4.1 6.1 (0.5) 10.2 19.9 Noncontrolling interest restructuring (2) (0.9) (0.3) - (0.2) (1.4) Stock-based compensation (3) 2.5 2.7 2.2 2.4 9.8 Other (4) 1.3 - - - 1.3 Adjusted EBITDA $ 66.6 $ 83.2 $ 74.1 $ 69.8 $ 293.7 Net Leverage Debt payable within one year $ 30.2 Long-term debt 452.0 Less: cash and cash equivalents (217.8) Net Leverage $ 264.4 Net Leverage Ratio 0.9 |
![]() cooperstandard 18 Adjusted EBITDA as a percent of Sales - LTM Note: Numbers subject to rounding (1) Includes cash and noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at emergence from bankruptcy. (4) Costs related to corporate development activities. ($ USD Millions) Three Months Ended Twelve Months Ended Dec 31, 2011 Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Sep 30, 2012 Net income $ 23.2 $ 23.8 $ 77.3 $ 11.6 $ 135.9 Provision (benefit)for income tax expense (6.0) 8.1 (46.2) 5.4 (38.7) Interest expense, net of interest income 10.3 11.2 10.8 11.3 43.6 Depreciation and amortization 32.1 31.6 30.5 29.1 123.3 EBITDA $ 59.6 $ 74.7 $ 72.4 $ 57.4 $ 264.1 Restructuring (1) 4.1 6.1 (0.5) 10.2 19.9 Noncontrolling interest restructuring (2) (0.9) (0.3) - (0.2) (1.4) Stock-based compensation (3) 2.5 2.7 2.2 2.4 9.8 Other (4) 1.3 - - - 1.3 Adjusted EBITDA $ 66.6 $ 83.2 $ 74.1 $ 69.8 $ 293.7 Sales $ 695.7 $ 765.3 $ 734.5 $ 684.0 $ 2,879.5 Adjusted EBITDA as a percent of Sales 10.2% |