CVGI - Earnings call transcript Q4 2018 | Commercial Vehicle Group, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2018 Commercial Vehicle Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] And as a reminder, today’s conference call is being recorded. I’d now like to turn the conference over to Terry Hammett, Head of Investor Relations. ahead. go Please

Terry Hammett

and Candice, our call. conference Thank welcome you, to

will today Miller, Commercial as President Joining Officer. Group; me full Chief well Patrick XXXX call the They Financial fourth Chief of on commentary and regarding company quarter are Executive financial Tim results. Trenary, a our provide brief and and update Vehicle year Officer

economic limited future contain We certain risks CVG and is and and These being call in the associated liquidity; a regarding volumes questions. This uncertainties forward-looking with our SEC including, the not cost-saving with a filings. new will CVG production the statements, conference initiatives then for because and business limited may operates; uncertainties. countries open as brief others. in product the call vehicles financial in conditions from to, but trends, include, which now market initiatives update. of may currencies; for not It Miller anticipated and of which Patrick results periods risks Actual up may other And expectations company differ for and in risks conducting supplier; risks is webcast. to, markets results detailed among in but compliance fluctuations covenant are foreign

Patrick Miller

part Thank morning. representing equipment markets. million, XX% you, joining We increased for XXXX, global strength construction Terry. this truck revenues And for in heavy-duty and reaching $XXX continued year-over-year most thank our delivered the for call by you, production everyone, the driven with strong volumes results growth

by our revenue. and and the margins operational the for the higher of cost We excellence XXX restructuring our year, points, operating also driven program basis grew optimization initiatives, completion

a February, headwinds, largely product labor align this on trends announced in This versus in growth industry the While we with leveraging to and to in some In our industry position today. the headwinds our these material business on experience offset we for markets – accelerating last color a of was reorganization business we a impacting year. continue our strategic markets. were I our cost move will impact of moment. segments able while this attractive provide to the some to

Let me the strength delivering segments. a in a XX% revenues broad-based year compared an to Systems our touch Electrical experienced on XX% ago, within profit. gross increase performance increase quickly and in

restructure experienced We also the wire completion shortage harness successfully substantial recovery profit the remedied resolution created XXXX. drove in increase cost cost and in facility and this labor in with Mexico. income operations major XXXX constraint XX% constraint taken by initiatives a in capacity in of together in gross The control the of our operating and

Turning to Seating. Global

build initiatives and recovery driver with provide his primary more results details strong and in Our was markets year-over-year, and XXXX and in we XX% material end a Tim to truck levels. rate expansion totaling X record one XXX,XXX increased the in X% XXXX, over with or The from through XX% XXX,XXX X in on was strongest up units for for a XXXX, place operating in cost remarks. put growth trucks industry America years reflect address rising North heavy-duty containment respectively. X XXXX strength Class up XX% moment builds XXXX. units the revenues our medium-duty in Class of costs. The to income will

X is XXXX, units they production medium forecast in X American report for production Class truck through ahead, Class duty. truck X expected XXXX, Looking to Furthermore, stabilize. projection XXX,XXX current heavy-duty North heavy-duty North ACT increase have is the a positive and research also while February American Class for units to FTR’s expects X XXX,XXX

and Europe. markets construction continue to expect in We strong America to see North

in somewhat however, China weeks. seen moderate have, We recent

such market. There as watching to XXXX. recent if shift as mitigating factors, tell early we it’s as new by government stimulate ramping in some are a truck well domestic While substantial China to it the our it’s wins too measures in the the economy we potential closely, Chinese feel are

the North America backlog, truck With record continue heavy-duty industry. to robust the order for we will be year a believe XXXX

transparency the our bullish similar are duty to to consistently in point has customers as who at is levels, and have Medium We XXXX no rates build strong trended disruptions. XXXX indicators through with good be unexpected levels upwards assuming exceeding XXXX. expected

some freight economic low pricing will supply-demand affecting general GDP, appear is The we impact indicators, activity are positive. like growth positive. solid, although longer-term, environment addition, an that unemployment have seeing manufacturer and balancing but still freight remains In on

to in American Class to truck XXX,XXX heavy–duty XXX,XXX. of range We X be are North the the production estimating

Before over turn business recent a the forward. reorganization and our the about moving more bit call strategy our talk I to let’s Tim, of

growth As substantial trends announced for The the we the by products. going and Seating to will to of is By our to secular vehicles digitalization in of in the we versus with comprised of Increasing growth growth the trim, week, expect digitalization accelerating its Systems including harness, itself to vehicle capitalize Electrical changing automation, wire the the of company Systems interior and enhance the opportunities, better Global to commercial of core CVG and key product power to Electrical next communication forward. be the and electrification, segment and other medium leverage wipers position on a last business world, of strategic drivers structure business vehicles reorganization company data and segments, growing align rest lines commercial in of structures the in and businesses. segment our At and capitalize electrification expect large this for time, growth. driven on phase to industry same strength the Asia. is usage,

presents for as CVG. Systems. electronic business this positioned capabilities, trends attractive the harness and expanding and these an because are We take structure incremental information of of a physical growth bodies most core and wire the well for product served our trim organically integration has to power Electrical in Through while highway, offering, provide advantage both inorganically, and cab opportunity

Systems strong leaders Electrical drive two strategy We going forward. will that have

driving recent lead earlier Dale better Tajer competitive is have consolidating With technology-based potential and business, Rich higher especially lead the seats side. arena. cost quality China at to Western starting will in McKillop, increasing wins grow. wire by His opportunities integrating Rich and gain the markets footprint, in structures business in which see Electrical in background our We the competitive trucks and critical we market diversification, the CVG ensuring in should growth growth be content in to give toward rest business. on world seating working in our with geographic And us Asia, markets This offers harness to time, continue with truck alignment like experience over a the business the referred new Systems business. Electrical synergies and deep this combined, regions which their Global established we trends better here. of more more is with increasing forces will new upon the developing produces focused optionality He mature Together, trim, will steadily where wipers We position the operations, months. has the and veteran, respective than the work. are been more domestic optimize heavy-duty more traction foundation so growing second, Seating, on to our electronics, to instrumentation that to a components. First, regard strong team

Our and take creating segment, our to and we focus seating advantage high synergies market the has by competitive globe of across a improve recognition position business brand penetration. can

Global our years further and recently Global for of role. the segment. consistent industry more led And growth. by an XX Doug segment veteran has is GCAM Our brings with than business positioning former positive Seating profitable led experience aftermarket for Bowen. OE most past XX along months, results, to the the is Doug and delivered financial He

toward and focused to and ideas. innovation Over on allocated our performance we the discuss thorough let the developed and long-term can identifying resources trends the for Tim sheet financials Building a in the strengthening prudently on invest select growth returns push momentum, shareholders. growth We’ve can this a meaningful strategic opportunities. improving on and now for Through put comprised our and strategy individuals balance leaders evolve CVG to spent senior over past the in our more turn financial the three this how to position a considering team best has me company detail. we strategy of markets, that, With and envelope years, review we process, to provide us considerable team future the in into of delving the to how strategy position growth. effort call efforts

Tim Trenary

Good morning.

I Before overview of quick me let realigned markets. in our detail, more first in provide financials end our a segments review our

of heavy-duty construction these the truck Seating drive approximately XX% equipment Systems In their performed XXXX, markets. both Electrical medium Global well. segments, global very sales the and and Our and markets from of

recreational We vehicle the the light market other vehicle Boston markets, and markets, industrial the also and into sell specialty markets.

and in Systems construction wipers the but equipment Global the in both the primarily in saw operations harnesses America, into Europe terms America truck North wire North and Europe. into In Seating We and truck into industrial structures presence, Electrical market into of Asia. America. other sells trim primarily construction maintains and equipment geographical and markets, North America and markets, in markets, North

Within trucks. the position truck market where have Class X seating we primarily segment, X America, sales in through North leading are in a

and Global have is growing. in equipment. Majority Pacific. Asia we Seating market particularly and of Asia, equipment sales seating in in medium heavy-duty Asia Europe India, in truck strong construction and Our are Pacific, business Europe a in believe America, we China markets, where the and position participates construction these North In

our to results. Turning

year million in of prior reflects year part consolidated XXXX, strong the the markets truck construction $XXX.X North build and increase truck large quarter a quarter medium XX% North heavy-duty X America also fourth XXXX X for fourth and market. increased the compared equipment to This the and but were For the XX.X%. $XXX.X compared the performance increased period, period, in America, in prior Classes in truck XX%. a and million to Class an build revenues global of performance X of

were of $XX.X Electrical and period, were million an million $XX.X XXXX, the prior revenues that’s $XXX period, of in in year quarter the prior XX.X%, Global increase and year to compared revenues fourth the For Seatings compared $XXX.X to million million Systems XX.X%. an increase

Global Foreign Seatings X.X%. million $X.X was impact in segment. Systems adversely $X.X currency consolidated segment, Electrical million $X.X the million quarter currency the million Of $X.X the quarter, this by fourth was or fourth the remaining on in translation foreign revenues translation impacted

to million in million of or quarter $X.X or to income XX% Seating sales the the a from million well significantly. in basis was lower $X quarter of fourth in Turning in margin. X.X% sales $X of XX% XXXX share actions. operating prior sales corporate in in Earnings improvement quarter the to income with operating legislation’s or XXXX loss was the adjustment period. That’s sales in Systems fourth effect or from XXX rate the Electrical XXXX XX.X% $XX.X of benefited as million Consolidated improvement. compared million year prior sales quarter loss also generated X.X% Electrical million X.X% to compared share $X.X million million for year X.X% or to improvement in fourth prior segment income Operating was U.S. of net reform of diluted restructuring a sales for XXXX in operating or income of income a provisional charge prior $X.X $X.XX prior associated $XX.X point tax fourth year million year of the operating for diluted fourth a with of in Global results of income the or benefited compared in Systems $X.X tax the segment million implementation compared the the $X.X gain of Global period. XXXX million That’s The in quarter XXXX. associated per $XX.X of facility Fourth period, XXXX XXXX X.X% to $X.XX to of period. a income $X.X operating or operating XXXX. the quarter fourth Net income as improved per the year compared in the period. Seatings quarter the the

production the compared that was compared also up and were truck prior XXXX. million year now to in million an XXXX a period, increase North $XXX.X to consolidated of XXXX, X XX.X%. XX%. the Classes Turning Revenues America, heavy-duty a year XXX,XXX production near $XXX.X XX% increase up reflect units, full to X by truck compared record XXXX. revenues that’s in in XXXX

$XXX.X XX.X%. construction for revenues million prior global prior compared XXXX. strong million And noted, previously the revenues of XX.X%. in As in million Seatings were Global compared was increase period, of period, year million also equipment Systems full were XXXX year to the increase market $XXX.X an to in Electrical an year $XXX.X the $XXX.X

or consolidated by remaining in revenues $X.X this segment. was favorably year the $X.X full translations segment, full foreign in XXXX $X.X the $X.X million impact year currency in XXXX, Of Electrical currency million million Seatings on for the translation impacted Foreign was Systems the million X.X%. Global

restructuring full Seating XXXX of Operating XXXX sales compared million operating XXXX XXXX generated Seatings’ million compared the income year million for $XX Global in the than XXXX. year. America from benefited improvement the million X.X% charges impacted income an our of margin compared margin facility XXXX The or of of Mexico million, increase the operating operating income results million. X.X% in also in income, it and in plan X.X%. the segment more of XXXX. $XX.X operating XXXX shortage as year Consolidated in litigation driver the for full our $X.X in for operating labor sales $XX.X XX.X% year North significantly margin points to well. margin in $XX.X wire of completion and to XXXX compared but by to primary operating operating to income in operating XXXX income business. XXXX X.X% $XX.X settlement was prior that’s The sales was harness of margin resolution and late or improved Global adversely basis when income Operating $XX.X was Facility For to XXXX. in North improved in XXX doubled of income Electrical full Systems full a year a operating for compared income America or of X.X% of income million income and restructuring

that’s Commodity other a late generally benefit were increases and and number in commercial the hand, material reflecting also the supply MXN markets modest revised Mexican these day increases. revenues. and of increase cost XXXX, so challenges an in excellence, resulted January legislated resin cost along The steel, on copper, occurred of the the XXXX. saw from Six zone in on global continued of cost labor our we’re effective In zone also XXXX, border, XXXX, during rising was prices managing successful income. government chain area increase of South of operating per On U.S.-Mexico global deployment in in MXN what XXXX, cost XXXX spending. the program, supply number initiatives XX%. minimum running Furthermore, control difficulties. impact in XXX, the and this in in of tight Sigma material primarily increased somewhat challenges X, in cost XXXX administrative the of in of call, raw much of border. the coming reduced operational tightening focused improved XXX wage Lean impact the cost December we minimum other the adverse offset an increased that throughout began income and free with primarily there in selling, recovery. called to some pressure. We XXXX, general began operating The pressures XXXX, discipline material northern significantly. this A just and these of activities wages Certain and We supplemented this some of Notwithstanding margin away recovery XXXX

to subjected is XXXX, be facility to the would in wage. impacted this by of this Our Absent Agua our Prieta million. wire reduce by minimum no effort $X financial harness on approximately company adversely results new impact

fourth $XX.X tax benefited the income of the fiscal in as of to are company’s new underway law million reflects in I income tax was a the considering net deferred diluted write results the income XXXX effect This XXXX. corporate of the of of of of have compared on foreign down the dramatically labor to on This as a million. are million refinancing increasing resulted by tax as XXXX third Also and U.S. we increase deemed number burden service or and XXXX Net of provisioned of to our earnings and in well share in earnings. quarter XXXX $X in the the This refinancing the company’s repatriation per quarter federal reform and reduce regulations $X.XX legislation improved refinancing of improvement debt at new debt adjusted XXXX in of a cost the and published. financial the refinancing to tax in earnings XXXX. fourth charges of adjustment in this to of quarter of XXXX, per expenses. of as share labor number to a XXXX compared governing income debt in $X.X in million, quarter resulted million fourth quarters well. rate we impact commercial interest this an in million on less for the loss tax size form impact provisional $X.XX Net In on benefiting net income XX% operating amounted cost the the XXXX income assets in with charge actions XXXX million XXXX XXXX improvement course, $XX.X The associated application the diluted was were the the as Of XXXX, third alternatives our $X.X in the of respectively. $X.X earnings. Net provisional second of $X reduced XXXX. or the in loss XXXX.

XXXX, range XX%. million we’ve and in million. was XX% capital tax $XX.X was For Depreciation of amortization XXXX in and to expense rate modeled an the $XX.X effective spending

borrowings be and million in liquidity had availability of At to $XX XX, $XXX.X XXXX, range million. the million no at of from our Gross and million, prepared Candice. million spending and XXXX. our were trailing December times remarks, leverage to months was respectively. $XX.X X.X company concludes $XX.X capital cash EBITDA, expect That net We $XX the based asset under There XXXX revolver. December our revolver times X asset-based of XX, XX

Q&A. it you to for now Turning over

Operator

our Seaport Milby of Instructions] Global. Thank from first you. [Operator question And Willard comes

Your line is now open.

Willard Milby

Hey, said to to is increase run for to think, what But actions some XXXX the called I just minimum there. million. gentlemen. $X guess, good guess, headwind, you million The morning, wanted Mexican I I the you $X back and the, took I that wage about you address $X million. to rate go

wanted Just real quick? clarify that to

Tim Trenary

we’ve Will, we’re end I of $X of And process up sizing, the XXXX number taken but the to in necessarily taking million. we at ultimately as the least, correct. that That’s us year wouldn’t will And $X actions, actions throughout by all year. the by my think you said, of impacting a benefit believe million

Willard Milby

taken would cost, the versus individual a what as cost? the margin with input Mexican kind you’ve normalized there. at your How And in controls conversations And plants slice the to and dice the what cost bit guess, as segment, wanted Okay, initiatives to – are labor maybe input the the headwinds, you employees now to can what taken a a go of here, of at cost recouping I was be? right the to some are actions where about, you little if I lingering and numbers some input segment okay. I more look kind on-boarding offset each the bit that, are – training know and headwinds headwinds more bit. each maybe and to level cost talk opportunities But look little and you guess, still of kind of a alleviate retain cost and actions maybe elevated various being situation I the there? wondering, customers with elevated

Patrick Miller

Okay.

a side have lot your on questions you there. of So

So we’ll put…

Willard Milby

time. at one take can a We

Patrick Miller

or it the on So mitigating going had the which is and – in over it employees we aggressive in campaign us, the the infrastructure globe an is, region, types were driving level cost the digitalizing focus years buildings countries these work repeatable. which most and to challenges of of of We’ve another. more out first and in improve inflation. our all on always so strong operate. a ago, to, one spread and the in it’s we’re safety, work things through in how consistent the we’ve been about environment actually address we through they but had labor started and availability that’s down what’s for not to to really workspaces engagement various more our related activities, our It’s really what some operate investment We’ve in Couple development and the do. really thing employee processes pressure the comes make

imagine the our lack in environment. go fast, this some is it of processes inefficiencies employee what drive couple can You to up the they’ve which last some standard are inside volumes and the of when of years, done can kind detrimental operation,

So arena, really everywhere. to that worked we’ve we’ve hard done and that improve

You training, set training got we’ve that programs development mentioned a broad-based really the implemented. of we’ve

lessons language language volunteer English, learn they like things. in things and lessons doing these either our in a of and learn type We’re for they plants, in Spanish Spanish-speaking can our interested English-speaking anybody plants,

we had those So effect. a think positive have

doing you we’ve still these mentioned when just seen in to it challenge, badly, to the people what on It be elevated expected. on-boarding, the about is not look that places rates normally and I and I it’s at into train of standardized we – is as would is a them think them an very We’ve need is you to not been – compared norms. be that the you and labor as operation front. to the them diligent treat historic throw unemployment places in what ongoing You would say well stabilization would. enticing still operate, most where turnover when – And it’s really

opportunities of I offset just the cost-reduction into tied actually that to mentioned as our far what part is cost-reduction As help activity.

I program. are developments, the So Lean engagement Six tied some our Sigma activities, into employee believe, training of

company, thousands that that some and implementing the reduction part involves mantra to are capabilities We exact teach. remember numbers, – employees follow projects of it now, opportunity have that that elevate of and don’t the as gives training continue tools we an the protocols across trained, cost the I think, their I the to it’s them X,XXX

those So think we two things hand-in-hand. go

we as – from in improvement in we get efficiencies. have addition people suggestions that, I as volumes our seen we more engagement, seeing scenario. the see get employee more an to ramped think, what the up, one closest we And who to We’re volumes implemented the are is as the the problems, that’s

out As they level start run to a these levels, gives chance optimize at to higher our us and processes. really it

those And things into of some helping some to The we referred gone so of incurred. you all to we’ve how offset to in was of some of addressing side. last things, related the wage material commercially, the that inflation threw think I and are these you thing

of things we’d it three for and place take – in that in There being So there tends lag. of our being customers on may negotiation. with variety precedent I apexing to And But where we have through had customers. most – to have commodities protracted to go the historical And than so is therefore, they’re forward. mechanisms longer able down, those those we’ve be costs. line. And methods so good to would we’ve engage looking the a can different have cases, tried has going that raw material increase as general, is be top certainly, minimize of to through like help with processes those impact. you, pass a to leap and costs I pretty material either, think, we things up they in interactions facilitate in don’t most we XXXX, their interactions, throughout able to didn’t already some there a those them behind like, tell

as we headwinds of far do kind to what XXXX. you think I alluded see in

we of there have some lot of not know lockdown the as a read front, the gas as to about on the part, through much rest I we first market. the is we that most On but the products the the And saw little reality oil and there – potential year. resin-based can this it’s year, seen see out. as is our tied commodity the do. contracts. about today, probably Steel, bit while you But as – that in later softening probably you so that it the to in market, And part is year, volatility in minor XXXX, resin we a much materials inflation see petro-based some probably those of up increases enormous for leveled the tend and

market, the in will I think So be less impactful. general, commodity

importantly, ensuring for that that our is and that is need. can all ongoing higher us and exercise More chains I we’re the we’re at supply ensure run getting support think, management we product volumes that rates to an

Will, I a got asked. Now mouthful. that’s I’m not sure everything, that you

Willard Milby

No, I think you got most of them.

way? each can I spit And in it kind think drag do I What Maybe within be think you just guess, what if to headwinds. segment? in of XXXX? maybe possible, ask guess, out that you margin what’s you wanted addressed I on, be is to think experiencing I addressed the segment you’re each

Tim Trenary

majority, our the year, cost of the pressures that we’ve me global Tim. – vast that and so that Pat dealing your measurements – we process we of our let our it’s nature the material there – or is the have is is past bit little there these say question ran, those the and during recovered majority as Will, our art So just Suffice and organization lesser know, over this XXXX. been is into a term, some on some of answer extent procurement a this I fair to to there way. has when is a There efforts exaggerated been XX a – don’t these recover continuing business. leakage There on amount our of, commercial pressures and but because those it’s okay. going than measuring the months with of not of nature that mentioned, the believe ran, reckoning we I by to business company, part we a precise of science,

to we saw the off. regards we XXXX, optimistic will do work on that in that some can additional impact of as extent I’m XXXX, transpired that reasonably the Now on what to have to some we

easing are a are I into they bit. pressures won’t think, the the XXXX, think, chain, supply I and commodity difficulties as moving as little be challenging abating Pat so perhaps mentioned,

may additional be improvement what also while there additional some there’s risk. those So recovery margin actions, a bit in of little associated

having of of operating an XXXX sort about said was in So all EBITDA X.X% X%. the of that, income company’s margin that’s margin

So for pretty up that these margin happy we’re in to good in this are manage where good feel quite our I those this And mean, ability with that’s compression, ended about with margins and environment. – – XXXX and it this we regard. business

Willard Milby

you Right. recent I think, strong North moderation, on hear missed right view in maybe I didn’t now What’s appreciate and was recent I slowdowns outlook China Europe too it. mentioned, markets. weeks I some the I guess, color American construction on your for much wording there. a here Thanks or I heard and for XXXX? or and But the that. Europe in

Patrick Miller

European of overall GDP. their the I’ve some read broader in around news some softening

is what though volumes so us, the strong. of the we’ve seen far first have in year For the part very been

Now we’re related trying regards some understand preparation to to make any whether in to Brexit. sure that’s we

been least, in XXXX. into our at makeup, bit – the little volume have side Europe. may in probably UK, first light In on the construction have And seen so know, the general, we’ve we operations in far. healthy Europe the there’s you think Europe, we a a of and in can see in you got business, of mainland operations we I shift a the half pretty as And vehicle of As we’ve know well. then as

little of of some of softening, has light a the construction of the but side our and bit that pretty side rest strong. that business been has And vehicle

Europe. of we’ve not any in the some seen detrimental impacts softening So from proposed

Willard Milby

to sticking maybe Got wire harnesses. you, Also then maybe of Europe and you. pivoting got kind in

an business guess, buds Does for announcement maybe well? harness fully would and I something B, guess, electric had against something I making year, construction business see business that I beginning see your lighter equipment. business that may that, market going that electric construction up is In you general, And inroads that construction guess, lighter, in? of guess, where of be some Volvo market? your some that think is fully making I – strategy, for this that – your I fit your kind for wire you does

Patrick Miller

supply drive harnesses we electrical powertrains. So into wire today electric

at front. vehicles, for direction, in things arena, of the that pretty and don’t when on content kind good transformation great we have differences look And concerns that between move any as we is that major so there the of us

those that can Volvo mining referring part mining of those vehicles unveiled, and that can I operation, we some around that to some we be you’re a were what of. around think are applications, large – things certainly of that drone a the think, I if of will run vehicles are that kind

the of has And think, we’re participate, of I so markets some some on transformation, happened that part we in that. and cases already

your I if the question. I think understood of So gist

Willard Milby

within you No, business? wiring no. And great. That’s penetration also I the looking boards design digital couple significantly but of speaking what’s grown a you I of within maybe guess, how within to last use penetration we’re that think that’s quarters, ramp the current, technology harness, business? those about the margin and your talk about of those. Can that of the handful, had

Patrick Miller

in of don’t to of trying number investment quick. the But We I tell the do down arena. the I’m round remember into probably math the are double here that investment. that would little you newest the I we’ve over XX% about exact on of boards. implementation real

Mexico are would in Prieta made and new Agua facility that in – harness expand of announced, be we new we’ve in the outside As some a we’re Morales, to today operation in capacity our in investments Mexico. region wire we’ve

operation that have digital expect We will predominantly boards.

the we only XX% we estimate, those. to And boards implemented going digital this have will get investment. of make up fully round migrate okay, exact continue first those don’t once probably, to think I’m I I numbers, because them

going for current heavy on work there are the some they’re because Now structure. too harnesses everything, to are that not

digital learning, so more and think, able we type the evolving, to things more do. we’ve been we’re and be from are But I add to the to work board the won’t go of application. across We it completely, able

of are. And would where so that’s I you tell we kind

Willard Milby

of quarter, we XXXX? good one-time for modeling Was run that? I’ll All turn what’s any Two right. it a here. the queue I maybe there jump sequentially little appreciate in comments. bit – lift – expense over over and elevated for housekeeping in interest all think Or in the quick rate back kind the should and The things, to here. a about as I’ll

Tim Trenary

an rate that of you million interest $XX $XX fixed, have Well, recall million swap, our variable we is rate might debt swap. rate an interest

market. we so to mark the that And quarter, every

question absent the I of so environment swap charge the quarter expense, XXXX, little mark any the bit going be marks. it’s would bit know, interest forward, rates a you non-cash about To a for against rate modeling absent and interest relaxed $X some in aberration in significant a million little in As good think interest recently, so your turned us, that fourth quarter.

Willard Milby

you. Got

spikes – cadence. Okay. particular, just should of when XXXX? might – XXXX, thinking look in And lastly, business where for of looking quarterly reorganization there of there the we with be quarters, be any kind Is of should out aware business or kind troughs that the anything we about maybe in

Tim Trenary

modest on and don’t flows the go think year. with past in a will fourth the look, I other to reorganized has business behave mean, holidays activities it ebbs No, sales our you on. quarter differently the lighter little going that of than and the respect and during any the mean, back generally the because I is I

So it and should flow similar a be year. the during ebb

Willard Milby

Okay. this morning. Thanks, I appreciate the time guys.

Operator

conference I’m to Instructions] this remarks. at turn back [Operator you. Thank And I’d like closing for questions time. over further Executive Chief Patrick no Miller, the to Officer, showing

Patrick Miller

to look organizational tell the we’re of the forward Well, the new joining we you call. and day. thank changes, year. everyone to coming our And good we’re optimistic discussions. rest energized about I a want Have by future for

Operator

in does for a today’s conference. and have you great conclude all participating Everyone, gentlemen, Ladies This disconnect. the day. thank program, you may and

Commercial Vehicle (CVGI) 12 Mar 192018 Q4 Earnings call transcript