CPS - Earnings call transcript Q4 2020 | Cooper-Standard Holdings Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Cooper-Standard Fourth Quarter and Full Year 2020 Earnings Conference Call.

During the presentation, all participants will be in listen-only mode.

Following company prepared comments, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded and the webcast will be available for replay later today. I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations.

Roger Hendriksen

Kevin. you, Thank everyone. morning, And good We appreciate you our and thank in this continued taking your interest for in Cooper-Standard time morning. we your to call participate you who The Edwards, Jeff President Chief Jon be leadership and of and and call team Officer; Executive members speaking morning our Chairman with Banas, on Executive are; Chief the this Officer. will Vice Financial

statements. remind I begin, this that we you need to contains Before forward-looking presentation

that and statements currently are on certain made be assumptions These believes management information reasonable. risks plans these to While and involve current and based do factual statements uncertainties.

their I'll also forward-looking the For with non-GAAP more filings comparable Jeff call company's to information you we the financial on Edwards. and measures, included of non-GAAP statements statements, directly the are in X out Securities to formalities to this turn way, those the measures financial contains of presentation the refer presentation most Slide and included of periodic the the that presentation. Exchange appendix in measures ask GAAP to This reconciliations over With Commission.

Jeff Edwards

value morning, and We Thanks, an good results on provide review some all I'd X, for full reflective sustained like commitment year of everyone. the Slide are on quarter begin, And appreciate XXXX points and to this update our to outlook our our beyond. Roger. To fourth of XXXX opportunity for and we strong data driving to believe highlight stakeholders. that key of continued our

new and X that meaningfully from our and of directly strong believe priority was operating the results. and excellence action fourth performance, governance to we're our X is continuing improved tracking which and We again same and began IHS. social environmental, we XXXX, is very focus focus related a ratings the during First, pleased discipline discipline quarter. rating that around In driving improved

scorecards product the world-class were performance. year for safety We XX% importantly, of results continue and green XX% record customer we of had were program end in more our quarter, safety. a green, for At and Even quality, the service deliver product customer to launches. employee for quality

XX For best ever per this just our safety financial benchmark a certainly the a that and well reported in proud of we're perspective, From the was improve worked, drive below XXX,XXX full incident X.XX. completed rate improvements of expected of X.XX world-class our margins, particularly outstanding our to to XXXX, of safety year our We're initiatives our plants on at year result return perfect with hours our incidents. and capital results. record pleased continue the invested zero

quarter, fourth During million $XX the improved our efficiencies. operating through manufacturing teams initiatives, and in delivered savings cost lean

protocols, proactive in and implemented the the and a for year. reduce throughout the expense actions in period year, reduction which consider For you savings The production safety customer is by all totaled shutdowns. outstanding last increased result lower we same to year, presented health quarter manufacturing versus cost the XXXX and administrative fourth overhead the and an volumes SGA&E when $XX costs aggressive $XX in beginning million challenges unusual full million, resulted

year, SGA&E in For million. the full was the $XX reduction expense

EBITDA in to the for optimization significant will margin, impacts $XX and initiatives in were one-time full quarter significant improvement describe year. driving that $X these savings chain some fourth a few deliver the our XXX continues quarter fourth in despite Jon supply achieving global Our a million initiative million points basis in as Combined, during minutes. expected, factor adjusted

mentioned. I X. Page details improving slide provides ratings the to ESG This Turning around

sustainability on important consecutive is on of ESG being Responsible our year. our in communities environment, and recognition, the the having garnering Newsweek's to commitment prestigious the But recognition impact company. actual and in the Our we're named achievement than overall more positive for Companies health and list Most of the is second including America's

base. Turning X, it with continuing our on smaller actions the cost business revenue burden to right-size to our and overhead align our Slide we're aggressive fixed

closed As the more In facilities a more, or to this we recap, we the XXXX, closure structure exited and streamlined reduced XXXX, initiated significantly underperforming be XX in in closed of and we first facilities, half our XX manufacturing X completed year. which SGA&E expect headcount. global of

and year. also reduced on we've more actions and SGA&E our in our exceeding $XX discipline million major was headcount million strategic crisis in our year-over-year, than and XXXX in savings us with continued far that the well initiatives. limits and XXXX total very and culture, the manage XXXX. We challenging Combined, spending But $XX summary, further execute our In the fixed challenges to aggressive right-sizing continue a XXXX enabled in the committed we'd on and of taken focus discretionary early costs XXXX. to COGS by to in through

turn over Now, let Jon. me the call to

Jon Banas

our morning, year financial items In And our additional of good the next On the quarter will quarter and the quarterly some with year. impacted full earnings everyone. around X, context put and the rate. prior we and year Thanks, results I Jeff. summary some detail and for Fourth a XXXX. on our of XXXX provide few key were that the sales slides, some run full quarter X% show million, XXXX results Slide down fourth of $XXX.X fourth versus to comparisons

These XXXX. driven Jeff approximately operating by was than savings well the lower significant adjustments, savings and well as chain improvement higher positive result partially the by than The quarter number and of certain planned. optimization key and the restructuring US a operations cost by basis, a commercial rates. fourth in incurred India Europe, were initiatives. partially and These favorable earlier about, X.X% compared in a of to as of or impact as volumes or generated and were North accruals SGA&E particularly Europe, rather supply mix of exchange This settled incentive including loss volume price Improvement XXXX. sales, we in getting million were Asia talked the divestiture impairments. and year-over-year. the That early and the customer for positive and volume non-cash well asset as certain and fourth to the Asia, Europe $XX.X that in efficiency quarter. $XX recent and of X.X% in net quarter factors is sales American EBITDA mix, increased XXXX year-over-year $XX.X light in platform, adjustments. in quarter typical included by negotiations compensation, of truck costs of economics which mix reduced expenses the million XXXX of of offset up Adjusted volumes for business as included on and the pricing sales was in Excluding in favorable On X% increase fourth restructuring impact in of as our in North offset unfavorable the fourth inflation million customer general GAAP a America,

and $X.X $XX.X had net quarter income an per share of net we million or fourth diluted XXXX, or the compared for these smaller items, share per loss to adjusted $X.XX Excluding XXXX. of million in diluted fourth of $X.XX adjusted other quarter of the

year and the did systems our COVID half, as Adjusted significant could items. year our of contributed improved the of prior million, year first of also a incentive net as operating we in billion, lean restructuring COVID $XX.X of first full XXXX. which year-over-year diluted year of CapEx The have production for we only $XXX.X at or Adjusted of compared The EBITDA the a million business. items, July $XX.X decrease favorably was This executing. year. in XXXX. the in X.X% the in main to XX.X% decline our XXXX, the million year the be perspective, the and change, XXXX. European compensation sales. and year of certain accruals. that the net GAAP non-cash half versus of $XXX.X net anti-vibration driver industry related we inflation and or industry general million, $XXX.X a was divestiture million ended shutdown partially incurred other these efficiency X.X% to for other by our loss volume Again, clearly operations negatives Xst, impacted and non-operating a or totaled cost shutdown per loss been driver of asset adjustments, included impact From initiatives Full related the share. or sales India sales $X.XX saving the the $X.XX These price customer the divestiture charges, as higher at the of compared impairments in business special CapEx XXXX $XXX.X broadly unfavorable key and for well mix, million offset came For was

the the XX. drivers Slide year-over-year Slide quantify to XX for fourth on The and changes significant adjusted Moving the of in our quarter. sales charts EBITDA

impact the $XX a sales, was of divestitures million. negative For

positive foreign volume and boosted and net by price million. sales the mainly exchange side, euro from and million, $X positive On the contributed customer $XX typical while including a adjustments, mix RMB

incentive For adjusted Lower and EBITDA, offset supply $X wage the as economics savings savings initiatives million $X chain million added in million improvements of well in SGA&E for million were efforts quarter. volume, added adjustments, and from by $X restructuring lean and cost mix $XX net operational efficiency $XX compensation from drove ongoing and and $XX million, a our These increases, manufacturing and respectively. partially unfavorable accruals. price million as

XX. Slide to Moving

accounted by an Divestitures further year, mix unfavorable our million, $XXX shutdowns customer related million. million price For volume, the year-over-year the a for of change. $XX reduced full and COVID by sales sales reduced $XXX

related shutdowns, of For restructuring from and by more were to and results $XX supply million full our costs chain negative COVID added other efficiency, earlier year initiatives to million million initiatives increased unfavorable million, lower impact million, improvements of of $XX savings these general and contributed respectively expenses $XX and and adjusted savings related items. $XXX SGA&E million. from economics, our mix volume the But than EBITDA, improved expense and offset related $XX million compensation operating $XX $XX

Moving outflows to line the positive million in an outflow our semiannual from which in of our the operations new $XX a coupon flow notes. cash was deferred salaries payout million, the with of $X to Slide on incremental million fourth $XX expectations. was quarter Free our generated and Cash essentially for $XX the was nearly secured for of million, large despite employees XX.

While production bring the flow, to conservative our we follow typically heading be seasonal customers typical year for didn't respect minor payments into time amount in capital as in a strongest and to fourth working with cash our customer we Changes inventory worked with year-end is this anticipated of on quarter schedules. built were moderated free to patterns. among

liquidity million the We manage are of and In invest the cash total with a and our XXXX, remains availability with a in working undrawn, revolver, prudently. $XXX million of flow this ended cash half ended positive $XX of million. and business cash balance second we hand $XXX free which generated on year With capital our of $XXX and the we of million. on continuing to aggressively, year spending

While we and future, capital monitor the to believe in foreseeable view economy, we this uncertainty the the broader in industry for continue provides liquidity adequate our carefully. considerable the of

Before provide context will and turning with provide back me a call to our guidance. to Jeff, let help our little you color year modeling that XXXX the full

to most mix microchip created ramp at by of headwinds exit As the incentive and recent COVID XXXX, be are XX% as assistance are points points we basis conservative cost Inflation result. our these XXX by also and that should over to as we year pressure unfavorable XXX gradual throughout as year compensation and versus margin. Planned the increases year, the start the wage up in on. expected to spending current this we goes year governmental fully could progresses, improve discontinuation and margins anticipate offset programs, shortages to the discretionary and QX of look a quarter. the QX headwinds a year the margins basis related increases expect actions Despite savings expected this volume to to to

call turn back Jeff. Now, let to the me

Jeff Edwards

Thanks, Jon.

specifically. Before the discussion share want and and I longer-term thoughts near-term morning, for our outlook this few global our light Cooper-Standard concluding a to market for regarding vehicle

XX. Moving to Slide

for year, important portion the our electric most in cadence are The year. And more small launches have total very planned on innovations the XXXX. the recent of continues launches you on of for move program strong of are innovations. of planned the our include XX programs represent see a still into but some slide We're of new our XXX of production. the XXXX, launches importantly, XX vehicles. vehicle to the planned launches pleased launches In Our

top we continued heavy content a to over reflect of to programs platforms represent provide the vehicle maintains We're weighting planned and our XX, our vehicle Turning of to for strong top which provides XX% time. Combined, Slide On XX. Slide approximately key mix The with us list planned of on a per mix trucks product strong programs, our XXXX. the vehicle opportunity these sales images and XXXX vehicle proud The on and XX lead each SUVs. increase of top maximum platform. revenue. XX% names

its is CPV this as top Our once is to given be unweighted platform production vehicle. content platforms strong high our basis, across On our expected the approximately these again average well truck, plan F-Series volume, an XX $XXX pickup as top per year. Ford

Turning to Slide XX.

Our on light trends. benefit current to puts SUVs a position strategic the focus and in us trucks market light from vehicle great

over As years, nearly passenger left, is the light X%. annually, the next trucks growth the growth at over poised at X% for in the SUVs estimated three chart market shown on and significant growing vehicle and with car

from global America, content per importantly, and the times SUVs. content car in SUVs times our of vehicle trucks on X.X North XX% is approaching trucks come on proportion cars. over average Cooper-Standard, the and XX%. is to America. revenue And is average North expected X.X In And our For our XXXX content

As to next in grow three a on an vehicle trucks years, average SUV year strategic the of and focus for XX% nearly the our significantly segment, result each light outpacing expect the we market. broader revenue of our

XX see already Turning pipeline. of more electric the on of technical XX. XXXX, introduced innovation. XX our We're vehicle a for and EV in to were vehicle on market business the We've in a targeted top again, continued tremendous segment, to solutions we where supplier Slide specifically the growth globally. opportunity innovation the our team technology we leverage focused electric number and platforms has In

We several expect in business electric awarded future grow to next our platforms. market vehicle business years. XXXX, we continue to million the share and in segment were this In $XXX on over new

net the over As a vehicles. were new for for year of our half awards business electric result,

for significant EV upside next five systems years. per revenue management growth to is outlook sector as thermal XX% approximately opportunity in within EV the current complexity Our And for create of the EV continues evolve, believe we over the annually will content Cooper-Standard. technology vehicle

priority. Slide to innovation our of remains and XX. a Turning The strategy diversification execution top

capital expand production investing key increase and commercial technology Material additional to modernize We capabilities production the building certain our our We leverage make of Specialty to diverse and material within capacity over progress markets Advanced Group customers. wire our capacity. in In this and automotive longer-term. are for The we've them about continue several Technology also industrial to products. complement to Applied phase and production and on the with created COVID-XX development business, our very potential optimistic and being agreements, by strategically has and growth exception temporary ISG aviation some lone Customer science demand our plants Group our in business. expertise our through we're allocating of our business remains remain Science the pandemic business. and staffing We're manufacturing steady and equipment Industrial entering challenges managing the in concluded cable we and material overall

into to any and new expect the As work start the the anticipate space, three within on somewhat over commercial small This XX introduction, to still Technology We're any XX technology the acceptance Footwear market. this currently and is in due sales technology pandemic in the new with gains grow ongoing. moving related is applications industry travel with work next the has customers impeded working development contracts as we time to restrictions. phase and for months proven we being months.

return the initially. implemented applied believe sustained our in growth some diverse want made We're pleased overall morning, with plan. highlight reflect drive our eventually on the a intentionally evident few taking chart the Fortrex workstreams industries we we quarter, improvement that commercialization, chemistry the this To with benefits minor you and this on fastest It achieve. focus last concentrated This and But the we wide the material which key up to aim of will just results. revenue showed to Slide actions is along science our our the invested maintaining and mostly and deliver a to have could few plan some of progress, route results to we second to wrap the tweaks a that and We strategic to our cases, on capital applications, I for discussion expected table we're shareholders with projects this be select improved progress be acknowledge our we multiyear in again, and value over here platform While to was XX. same refinements markets a on we're is in a XXXX, range half program. also based outlines each.

to realize period. to continue we and focus the improvements three-year to plan gradually execute will We two-year expect intense the planning over with

our XX. value slide, three-year up On XXXX them slide guidance and to driving we Turning for initial this provide targets. line with our

For this $XXX $XXX range the have disruptions some of driving XXXX but plan. at have but our X% is will in to sales believe broader year, $XX and the less. higher $XX of to of increase heightened customers range market We risks expect targeted $X.X value related million approximately restructuring related appropriately the billion in two restructuring in to CapEx in is directly estimated to The XXXX, are of sales billion a our EBITDA be conservative, within years. Cash payback is supply million. adjusted range or estimates these expected million spend ongoing period to and of million, our we experienced, recent of given $X.X uncertainties. COVID in

approximately cumulative a for annual the above vehicle the strategic execute which we revenue operating light we growth on three as years global our and forecasts solidly of production. anticipate is rate next XX%, initiatives, Over IHS plans

are in that can of double-digits and we our taught achieve and even levels seeing But on return as markets the value be year goals. committed categories targets, Cooper-Standard anything, given to in EBITDA market ahead the of upheavals agile, Our our We in team recognize it's both that uncertainty and adjusted capital are our that resilient and us forecasting that to disruption same period. XXXX global economy. the longer-term invested driving a over high is achieving challenging

From for our comments. our their to to management infrastructure thank work XXXX. cash we and unwavering the together, continue to customers thank performance their end I ways of finance relationship. team's this our also morning, deliver teams, I pause we virtual our could the historic This global increasing plant Working dedication boardroom, XXXX. for in presentation everyone hard stepped during improve our and valued along overcome be and to values. floor up and want want continued delivered our our our all in and to team more business to from confident trust and to the groups As and colleagues challenges our management I'm company and proud extraordinary for commercial prepared continue way. customer value manufacturing concludes team, we IT to literally commitment of stakeholders the to not our

to on Q&A. move let's So

Operator

you, Ward and first ladies comes Benchmark. proceed. Thank Michael gentlemen. [Operator from Instructions] Please Our question with

Michael Ward

and of with you EBITDA like walk 'XX Jon, is, the to I'm $XXX If on things. and of doesn't know wanted or COVID to to XXXX. $XXX and Page guidance mentioned best at the that can you that back-end a the you Good have adjusted some we worst talk can the million EBITDA headwind. And and out mix XX, wondering maybe the when everyone. look far down their some a coming is as offsets with million. from neutral. you to getting as if provide that and we about I million blocks of I'm restructuring impact are at things volume similar that benefits $XXX of other do per up to maybe And are your a assuming the weighted some morning, bit XXXX of then you get the

Jon Banas

we run To sure, call, Yeah, that at we what think do to first, what can the the QX, rate normalized and then in question. look to morning look thanks ahead analysis, going I'll really got is Mike. and for transpire to Good the, 'XX. in you

reimbursements know we continue as programs well were government QX, that as - us. We from in So governmental to tailwinds that benefits COVID from benefit for certain

Michael Ward

that of that Is that Is you $XX million $XX know like a like million? about rate?

Jon Banas

That's $X around million.

the to at 'XX accrue run pieces into other But So going here. next a rate. in therefore, we a the to have bonus year for cost full add continue year. down run you payout when rate, because bring some think I'll QX those get the obviously you XXXX level, aren't to and XXX% normalized Then didn't the about with would

Okay.

had that debts the normalized expect So level. in also we on recoveries bad a won't off getting to some smaller And had back commercial in written to then continue. QX, we past

initiatives. called But overall from by the three out about so normal those that, restructuring basis basis headwind are should at then and good And optimization is main you well continued some basis manufacturing non-recurring know, of and of XXX pricing come news chain always towards news a points buckets supply So savings improvements, for rate. points offset XXX net cost to and going then be points we're us, run that the about good Mike SGA&E basis as out to XXX look able XXX our combining combined, another from 'XX, efforts, points. of you when then

with all current back dose industry So challenges, that of based on gets the guidance. implied QX conservatism a our to

Michael Ward

Thank right. on Jeff, All you. Page XX. Okay.

the vehicles some about the benefit? talk on you combustion versus that - - could have content internal things where the higher and You of electric about drive the you

Jeff Edwards

our in business. the Certainly the think when - and about packs, fluids that's Mike. cooling the up heating for you significant on battery driving content Sure, us

So go the seeing into the the and as along and with connections product we're fluid the ahead. But products do We engineering result. that double a those the routing sorry, line. probably fuel other content - goes on significant obviously, you delete the plan

Michael Ward

ahead. go no No,

Jeff Edwards

our well space, are our They're engineering believe customer we the taken teams job. So embedded we doing and learning for to to a do the customers. process, in increase really approach continuing into customers upfront. our have lot. able really value plan We're a We're great our to lead on increase

And so booking been a continue more increase providing significantly on content vehicle us. upon vehicles per come But we'll be that business. so we'll the will we level far, to of simply on the that summer with we've the as high have detail months fluid confidence

Michael Ward

then and And manufacturing the currently Just and in you're that different I materially are Is plants a line business, equipment it equipment? different? that same guess or using? different

Jeff Edwards

Well, of hybrid, as it you today the as ICE several to for far for good the go being product you're is types different those as both know, ICE. the - talking yeah, host EV systems about applied. we they different significantly but from is product, have hosts, than of news The

we you on vehicle and go increase really over even it as higher ICE. to hybrid ICE. electric per It's see a a content significant to compare So

So detail through we plan summer I on as providing on as we months. go the you additional said, breakdowns those

that we it's business, because for this I much there in to across our have clearly changing. see engineering our being that to space, we'll the as investing continue the demand us. for increase the talent knowhow us is something this in would to relates expand pretty talent it As customers have, world,

is add it in vehicles. product, footprint news is we about the you for route but to know, business significant out As innovation capital technology The them. in China that's PVC in that the have we've we continue is as to view pretty good add we think to North low. as and we'll investment different and when as we connectors electric the for we it in fluid for that add very in customers here extrusion relates you need. gotten that the continue maintained value footprint of as hose that to our lines manufacturing knowhow well the the the The really And not America Europe, is us investment

Michael Ward

Okay.

Page Footwear. missed a says you Lastly you I that something is Is bullet that along an I had Did there customers it X or add three have way? that on you thought in XX, additional X. the customer? current

Jeff Edwards

added we've and the since last talked. I think time Yeah, X I you

Michael Ward

Is somewhere Okay. XX that And looking commercialization still as it's China well? out. at months in

Jeff Edwards

but remarks just restrictions to that we Yeah, we're my Tennessee. bit, little where, in think and guess embedded traveling impeded the how that a assume you about travel disclosed prepared haven't you not I when can that's

Michael Ward

Okay. Wonderful. appreciate Really Thank you. it.

Jeff Edwards

Okay.

Operator

Our next Farricielli Fitzgerald. question with Joseph Cantor comes from

Joseph Farricielli

guidance your your tooling. Good tooling question CapEx that's you. morning, could CapEx thank give color A include if CapEx balance? Is that for number doesn't correct? you and on that on The anything your some

Jon Banas

Yeah, is correct. Joe, this Jon, that is

just purpose CapEx programs, equipment equipment over, purpose programs. our we capitalize specific that is that special customer sheet. So for can is Tooling, use would we our categorized a owned and use but that only any separately individual and Cooper-Standard general for they owned not that's to balance on customer

program. piece you for see, the of not price it's life that we're getting in CapEx So upfront typically the number, because in cases, reimbursed that either or over some in

Joseph Farricielli

some know And about of balance missing stand quarter go in going tooling also it. the that I forward? And the there I does past. million. sheet know then were $XX that Thanks. does given Where amount was confusion today? great. last Okay, where I'm launches, the item

Jon Banas

to minute about your up the is it Joe, on look receivable. a Right now tooling million me give year-end at so. still Yeah. question just $XX

Jeff Edwards

the to number. comparable QX Okay,

Joseph Farricielli

Right, right, those you is what that right. What receiving of the that to And launches year? compared that have the this cadence funds? look does like

Jon Banas

right invoice those You then tools. timing, be parts the can for sum them are tools then, And the we launch know, around by typically to as get reimbursements test going customer. as our we far the know, lump approved the you

therefore, on over programs could long-term But our of portion continuing longer-term, would nature price, piece it will say I that to you be that of behalf as see just I those on to you're there's throughout planned tooling I and and mind So customers. have receivable, going launches XXXX, XXX some a that execute a in mentioned, is launch ratable keep we in our time. get our we're that, for reimbursed of will collection

in we'll collect. we as invest So continue tooling to more

that quarter-to-quarter. bit see you'll balance, fluctuate know, a So you

Joseph Farricielli

Okay.

color. Thank much. you Okay, that's good very

Jon Banas

welcome. You're

Jeff Edwards

Thanks.

Operator

Brian question next with DiRubbio comes Our from Baird.

Brian DiRubbio

of that's any inflation of you you going sold on rubber some And, focus sort sense impacted the inflation? of that cost inflation by for you much Good compensation know, we're and minute? seeing in know, we a can Can to, know, me of, how give steel, your rapid and from is you just resins? goods the a Can you how OEs on get morning.

Jon Banas

given of rubber Yeah, black, part we and commodities. that. of When Brian, you at commodities. able a carbon commodity just economic take deflation the look in those then across When like down first our QX purchase is the tailwind in rubber recoup for overall or like, compound, most I let think Board, in main inputs million us, about me $X.X some EPDM the and actually that, we're plastic saw conditions, QX, about year-over-year to our were the resins

of a into question we're other But supply we're a of currently to, chain and negotiation of that's a our some more is, second optimization inflationary basis. work far marching future. with to we indexes of The times them that part as insulate initiatives. variety against of as of with kind on attempting continue We recovering those work-in-process kind to fluctuations you know, in customers towards, our that do customers some on have rapid your initiatives approach and get the

Brian DiRubbio

to use up the should we to as about And I in we then working “normalized more I capital this sales” working guess year, ramp cash be of expect the mean between capital Understood. and XXXX? think a inflation,

Jon Banas

a the an it you'll expect be a use If working in the on environment, sales Jon, see in, cash, a having look outflow QX like being working comes of for QX back to moderate year you've and I qX, just I that mentioned, is to the a then would will seasonal for cadence us. return typical of lot outflow in rising flow. this capital typically as a of of it's inflow cash as again. side. through ramp And up we an that, given at Yeah, capital progresses, more

Brian DiRubbio

thinking Great. are And how notes firstly, that outstanding currently? those, are you about

Jon Banas

unsecured range, XX a if trading is you know, just us it the depending terms X unsecureds coupon Yeah, very and price, know, day. of on notes at notes the only at senior look in know, and you in you at well know, that you look instrument be might to the both if for But some, the I trading and you currently, got, XX attractive that they're low-cost two to X/X. we've the is

in So of would in calls, as refinance put that And notes, said past terms senior we're secured year, time. the middle which a at to know, of this that next XXXX, next in year. then on the I've that in no two-year hurry point you instrument, to non-call it's

we could in be here those is our a so to operations, protecting in we. in not next months just to the And position the make liquidity conditions markets the should back capital but be sure the XX amenable if focus maintaining only ongoing really pay

Brian DiRubbio

Understood. Great, thank you.

Operator

Barclays. comes [ph] next with from [Chris Our question Lye]

Unidentified Call Participant

the taking thanks Hey, call. for

guidance. Just the on revenue saw

You more know, SARs, US know, I XX%. in was the midpoint, obviously Europe you saw than your you're up the know, looks assumptions. XX% than you're less It XX%. It you IHS up is like at

Just can you kind the takes there? and walk puts of in through us

Jon Banas

Jon, take you is This I'll Yeah, through. sure.

the platform. clearly at looking reacted and our together those how plan our saw out, to the market to fluctuations playing pulled we IHS as we you know, we global know, specific inputs, in You

look at always the have around 'XX as just important be it's market, 'XX, global not from the which that up key we the going at we're markets well that operate to as to look you to to platforms in, So is XX% on.

Cooper-Standard XX% closer up be peel that volume back, market. the to we is when specifically, to going so And

we growing excess market. So anticipate of the in

prepared as Jeff the know, remarks to call as our in You alluded this CAGR. his far on overall

X.X compared we're the XX% to about think about times you growth. when XX%, market So the

Unidentified Call Participant

little it. what overall the is the sales less the is XX% bit XX Got a there? assumption, versus delta so up than XX% - But only

Jon Banas

element Yeah, away. an mentioned divestitures you've going got call, the of as I on

if impact, at you on of lost line. will, or the due has $X.X the either sales in $X.XX in. And billion, exited XXXX that we're due should revenue our which you of that certain top And look in a comes sales been COVID of then more to also the have revenue, And consider markets a and COVID then base. of a various divestitures, $XXX off mark. customers for overall over billion you're decline dollar headwind, that but is to if our pricing dollar deduct to So have million our down always

high-level get revenue that's to essentially that to the next year. So for walk

Unidentified Call Participant

basis? range, of basis, how an number? EBITDA included Understood. maybe And that $XXX like million rate you what on much $XXX cost absolute million then And a to run assuming the are on that

Jon Banas

well few restructuring, mentioned actions I as strategic and a Yeah, basis overall and the about XXX minutes range. ago, savings are as SG&A within points that

the is XXX ballpark purchasing again, have lean also amount. do as look that dollar a we considered initiatives, as math, So at And that's there and points. if both What's well front into revenue front. the get on around the manufacturing basis you you on midpoint back can

that math ballpark. in will the you same doing So get

Unidentified Call Participant

XXX points, a So it's plus XXX basis right. points basis

to clear? Just be

Jon Banas

our That's by correct. commercial headwinds again, basis of here XXX normalizing another and Yeah, points. offset QX but

Unidentified Call Participant

you terms And, of question, you think of, Got mentioned previous that moderate know, impact is capital, is you shall magnitude, on million a the or be know, in in working we higher? that that $XX number order know, it. or know you of in about to you going

Jon Banas

quite Sorry, referenced. hear I you magnitude didn't the

Unidentified Call Participant

$XX the million, ballpark I thinking was around referencing is somewhere be should Yeah, that we about? right

Jon Banas

outflow I just I payments and of activities work mean, mentioned that's given we components working But and I ballpark. time. the our probably to that mentioned QX continue back, earlier on around capital. on the collecting Yeah, commercial that in calling those various

where also around supply global optimization payment world. our have We the on base to efforts extend do can terms that we

driving still opportunity there there's So we're towards. that

that with So million $XX I'll that reference. your frame

Unidentified Call Participant

this know, your Or as optionality just you the at or way price? at And using stock you. you to equity Thank would consider point? share just you're thinking one, Fantastic. how enhance last about, this expanding a liquidity

Jon Banas

shares. inflows new outflows. we're look allocation both all always issuing opportunities, considering we this And capital and at not point, any Well, at

Unidentified Call Participant

you. Thank Fantastic.

Jon Banas

Thanks, Chris.

Operator

Our Amenta question comes One JP Morgan. Bob next moment. with from

you Okay, Bob. difficulty] be [technical should now,

Bob Amenta

flow had Hi. items. couple Okay. just on follow-ups cash I a

Just so XXXX about you I were $XX understood that when take working capital, Did talking Chris you or give mentioned - was about million just asking you number? this.

Jon Banas

forward-looking XXXX a number. was that Yeah,

Bob Amenta

sure going last year, probably or this the is just you're the could of out to reorg, without Or end of the elevated? with business, new $XX that out is and Okay. something down? finding year, with for million something that like with and come money just sort I'm of but to of million there, would amount I are $XX we maybe next know, year kind you this you that year spending cash so expect get anything as then regard else, went And that of is we to if you to kind guess? that look perpetually, should that things enhance Or to try at

Jon Banas

to would is in the with got in we've out expect Hey, 'XX XXXX earlier. here number Jeff think driving I significantly good Jon be the Bob, about we down actions place in that come and this that value and that again. plan the We That's years. state are on 'XX, in and those the assumptions in talked the beyond. list, should in commitments

call, years rationalizing at You out know, the to at base but there's as at footprint or fine-tuning minor those what point. and in that the we'll I'll ways look as cost far continue looking other that

it's we So million this to going expect to but near not it's $XX go that to zero, year. not the going be anywhere

Bob Amenta

kind going slide was if know to had look, just I to be obviously really low then with 'XX, relevant. has just guess, guidance, XX%. perspective lastly was go that kind Xs, I we say but I But X.X% target. mean, we on again, back business three-years, years margin a changed like I presuming EBITDA but margin, And the if Right, is not look then. - three you to from of yet, some okay. XXXX. by guiding I'm the a of it the Hopefully to since you of XXXX closer the at 'XX that three-year you're want to if

a is one is and between loaded? in Or I I would want if it two? But kind 'XX. the this we in your those you're 'XX, say say, mid about think at or is I if upper think mind. is in Xs Is mean, I can it's are upper how it it don't low to the you, question? be So XX% backend in get thinking overly you there to assume that's leaves there loaded, or should because about backend of we we're in year put that these in know, I ultimate in guess Xs is achievable more 'XX, something X really so fact, should just mean, that optimistic, let's that only you

Jeff Edwards

this Bob, Jeff. is Hi,

that. Let me take

we the ROIC And exit fourth we will on for we first where are. year, roadmap we this for think given that I believe are put we that will back above we and we to the first of double-digit that's value, So exit year, two said items that this we quarters, XX%. three in I all, clear were industry, everything the the believe, us driving then quarter EBITDA pretty to 'XX levels. at years, would going two double-digit said in those next that

not that believe So exit of It have 'XX then is but a answer that be at run year we'll that hopefully clear. 'XX in won't we're but was rate sustainability. and was remarks. And my that may probably status the there, reflected a we level achieving been that 'XX clear, as

Bob Amenta

QX that. XX%, and you is sorry, missed must of exit it saying missed - I that I'm No, I have

So that helps.

I So okay Thank all have. that's you.

Jon Banas

All right.

Operator

next question [Operator comes [ph]. [Jeremy Capital] from [Essex Our Rosenau] Instructions] [ph]

Unidentified Call Participant

follow-up the XX the June until $XXX.X question. on taking those the thanks in them XX% call wanted math had notes. guys, secured about to quickly my equity I be and almost offerings my wait you if or or to for you'll coupon then XX% Hey, million. By you XX on just notes, paying here, points questions call guys at

So all-in $XXX million cost.

significantly million, any and only would actually on your your $XXX utilize use could at of you you could you those bonds you cash if However, XX% interest not liquidity right enhance have saving you call not equity now, by call expense. to

curious So doesn't sense to right make that why guys I'm now? you

Jon Banas

Jeremy, good question.

to and all we the talked I run various options like we colleagues scenarios. those those on then before, numbers said know, consider our banking to You

point And know continue to point us. we equity But this isn't so at cards maintain look ahead like best you we at and that exercising for in just the call I liquidity before, can. this as said

Unidentified Call Participant

right, All thank you.

Operator

no Roger further Hendriksen. to to call It questions. over appears the back like I'd that turn there are

Roger Hendriksen

the call. on the and engagement everybody Thanks, questions the for Okay.

to earlier, out look joining we as And calls forward those I me please reach you for promptly feel you come in As or speaking and come we up, and to can. additional your interest directly, should appreciate said will call. Cooper-Standard. again, the We with additional thank continuing questions we free as up to address again

Operator

gentlemen and ladies today's that So, presentation. conclude

now may wonderful You day. a and disconnect have

Cooper-Standard (CPS) 18 Feb 212020 Q4 Earnings call transcript