(NewsDirect)
Cooper-StandardHoldings Inc. (NYSE: CPS) today reported results for the fourthquarter and full year 2022.
FourthQuarter Summary
- Sales of$649.3 million, an increase of $48.0 million compared to fourthquarter 2021
- Net loss of $88.1 million or $(5.12) perfully diluted share, improved by $14.1 million compared to fourthquarter 2021
- Adjusted net loss of $31.9 million, or$(1.85) per fully diluted share, improved by $18.4 million compared tofourth quarter 2021
- Adjusted EBITDA of $27.6 millionincreased by $25.6 million as compared to fourth quarter 2021
- Year-end cash balance of $187 million; continuingstrong total liquidity of $342 million
Full Year Summary
- Sales of $2.53 billion, an increaseof $195.2 million compared to 2021
- Net loss of $215.4million or $(12.53) per fully diluted share, improved by $107.5million compared to 2021
- Adjusted net loss of $171.5million, or $(9.98) per fully diluted share, improved by $50.8 millioncompared to 2021
- Adjusted EBITDA of $37.9 millionincreased by $45.9 million as compared to 2021
- Net newbusiness awards on electric vehicles of $126 million in the fourthquarter and $198 million for the full year 2022; Total net newbusiness awards of $122 million in the fourth quarter and $246 millionyear for the full year 2022
“We continued to make progress in the fourthquarter and improved our results throughout 2022,” said JeffreyEdwards, chairman and CEO, Cooper Standard. “Our performance interms of product quality, new program launches, on-time delivery andsafety have never been better, despite the challenging macroenvironment in our industry. As a result, our customers have remainedsupportive and have trusted us with significant business awards on newplatforms, which bodes well for our outlook in 2023 andbeyond.”
ConsolidatedResults
| Quarter Ended December 31, |
| Year EndedDecember 31, | ||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| (Dollar amounts in millions except pershare amounts) | ||||||
| Unaudited |
| Unaudited |
| Unaudited |
|
|
Sales | $ 649.3 |
| $ 601.3 |
| $ 2,525.4 |
| $ 2,330.2 |
Netloss | $ (88.1) |
| $ (102.2) |
| $ (215.4) |
| $ (322.8) |
Adjusted net loss | $ (31.9) |
| $ (50.3) |
| $ (171.5) |
| $ (222.3) |
Loss per dilutedshare | $ (5.12) |
| $ (5.98) |
| $ (12.53) |
| $ (18.94) |
Adjusted loss per dilutedshare | $ (1.85) |
| $ (2.94) |
| $ (9.98) |
| $ (13.04) |
AdjustedEBITDA | $ 27.6 |
| $ 2.0 |
| $ 37.9 |
| $(8.0) |
The year-over-year increase in fourth quarter sales wasprimarily attributable to favorable volume and mix, including enhancedcommercial agreements, partially offset by unfavorable foreignexchange. The year-over-year improvement in fourth quarter net losswas driven primarily by favorable volume and mix, including enhancedcommercial agreements, improved manufacturing efficiency, lowerselling, administrative and engineering (SGA&E) expense and lowerincome tax expense. These positive factors were partially offset bycontinuing increases in raw material costs, higher wages, generalinflation, higher interest expense, asset impairment charges andunfavorable foreign exchange. The year-over-year improvement in fourthquarter adjusted EBITDA was driven primarily by favorable volume andmix, including enhanced commercial agreements, improved manufacturingefficiency, and lower SGA&E expense. These positive factors werepartially offset by continuing increases in raw material costs, higherwages, general inflation, and unfavorable foreign exchange.
For the full year 2022,sales increased primarily due to improved volume and mix includingenhanced commercial agreements, partially offset by unfavorableforeign exchange. The year-over-year improvement in full year net losswas primarily driven by favorable volume and mix, including enhancedcommercial agreements, improved manufacturing efficiency, lowerSGA&E expense and lower income tax expense. These positive factorswere partially offset by continuing increases in raw material costs,higher wages, general inflation, higher interest expense, assetimpairment charges and unfavorable foreign exchange. Theyear-over-year improvement in full year adjusted EBITDA was drivenprimarily by favorable volume and mix, including enhanced commercialagreements, improved manufacturing efficiency, and lower selling,administrative and engineering (SGA&E) expense. These positivefactors were partially offset by continuing increases in raw materialcosts, higher wages, general inflation, and unfavorable foreignexchange.
Adjusted net income (loss), adjusted EBITDA, adjusted earnings(loss) per diluted share and free cash flow are non-GAAP measures.Reconciliations to the most directly comparable financial measures,calculated and presented in accordance with accounting principlesgenerally accepted in the United States (“U.S. GAAP”), areprovided in the attached supplemental schedules.
New BusinessAwards
Electric vehicle trends continue to create opportunity forCooper Standard. During the fourth quarter of 2022, the Companyreceived net new business awards on electric vehicle platformsrepresenting approximately $126 million in incremental anticipatedfuture annualized sales. Total net new business awards in the quarterwere $122 million. For the full year 2022, the Company's net newbusiness awards totaled approximately $246 million, including $198million in new awards on electric vehicle platforms. The Companybelieves its world-class engineering and manufacturing capabilities,its innovation programs and its reputation for quality and service arecompetitive advantages that continue to drive the new businessawards.
Cash,Liquidity and Debt Refinancing
As of December 31, 2022, Cooper Standard had cashand cash equivalents totaling $186.9 million and total liquidity,including availability under its amended senior asset-based revolvingcredit facility, of $342.1 million.
Subsequent to the end of the fourth quarter, theCompany successfully concluded refinancing transactions that extendedthe maturity of the majority of its outstanding long term debt to2027. The refinancing strengthens the Company’s balance sheet andprovides the Company with added financial flexibility to grow andfurther optimize the business.
Based on our current expectations for light vehicleproduction, customer demand for our products, and enhanced commercialagreements, we expect our current cash balance and access to flexiblecredit facilities will provide sufficient resources to support ongoingoperations and the execution of planned strategic initiatives.
Quarterly SegmentResults
Sales
| Three Months Ended December 31, |
|
| VarianceDue To: | ||||||||
| 2022 |
| 2021 |
| Change |
|
| Volume /Mix * |
| ForeignExchange |
| Deconsolidation |
| (Dollar amounts inthousands) | |||||||||||
Sales toexternal customers | Unaudited |
| Unaudited |
|
|
|
|
|
|
|
|
|
North America | $ 336,507 |
| $ 291,104 |
| $ 45,403 |
|
| $ 46,608 |
| $(1,205) |
| $ — |
Europe | 132,301 |
| 121,166 |
| 11,135 |
|
| 26,952 |
| (15,817) |
| — |
AsiaPacific | 124,101 |
| 130,640 |
| (6,539) |
|
| 17,717 |
| (14,775) |
| (9,481) |
South America | 25,567 |
| 16,093 |
| 9,474 |
|
| 8,043 |
| 1,431 |
| — |
TotalAutomotive | 618,476 |
| 559,003 |
| 59,473 |
|
| 99,320 |
| (30,366) |
| (9,481) |
Corporate,eliminations and other | 30,861 |
| 42,346 |
| (11,485) |
|
| (10,209) |
| (1,276) |
| — |
Consolidated | $ 649,337 |
| $ 601,349 |
| $ 47,988 |
|
| $ 89,111 |
| $ (31,642) |
| $(9,481) |
* Net of customer price adjustments includingrecoveries
- Volume and mix, netof customer price adjustments including recoveries, was driven byvehicle production volume increases due to the lessening impact ofsemiconductor-related supply issues.
- The impact of foreigncurrency exchange was primarily related to the Chinese Renminbi,Korean Won and Euro.
AdjustedEBITDA
| Three Months Ended December 31, |
|
| Variance Due To: | ||||||||
| 2022 |
| 2021 |
| Change |
|
| Volume /Mix * |
| ForeignExchange |
| Cost Decreases /(Increases)** |
| (Dollar amounts inthousands) | |||||||||||
Segment adjustedEBITDA | Unaudited |
| Unaudited |
|
|
|
|
|
|
|
|
|
North America | $18,481 |
| $3,810 |
| $14,671 |
|
| $21,229 |
| $(1,538) |
| $(5,020) |
Europe | 3,741 |
| (8,607) |
| 12,348 |
|
| 16,770 |
| (2,151) |
| (2,271) |
AsiaPacific | 2,574 |
| (3,732) |
| 6,306 |
|
| 10,978 |
| (3,443) |
| (1,229) |
SouthAmerica | 1,038 |
| (3,096) |
| 4,134 |
|
| 2,940 |
| 891 |
| 303 |
TotalAutomotive | 25,834 |
| (11,625) |
| 37,459 |
|
| 51,917 |
| (6,241) |
| (8,217) |
Corporate,eliminations and other | 1,758 |
| 13,636 |
| (11,878) |
|
| (4,329) |
| (4) |
| (7,545) |
Consolidated adjustedEBITDA | $27,592 |
| $2,011 |
| $25,581 |
|
| $47,588 |
| $(6,245) |
| $(15,762) |
* Net of customer price adjustmentsincluding recoveries
**Net of deconsolidation
- Volume and mix, net of customer price adjustments includingrecoveries, was driven by vehicle production volume increases due tothe lessening impact of semiconductor-related supplyissues.
- The impact of foreign currency exchange was primarilyrelated to the Chinese Renminbi, Korean Won, Euro, Polish Zloty, CzechKoruna, Mexican Peso and Canadian Dollar.
-
The CostDecreases / (Increases) category above includes:
-
Commodity cost and inflationaryeconomics;
-
Manufacturing efficiencies and purchasingsavings through lean initiatives;
-
Increasedcompensation-related expenses; and
-
Decreased costsrelated to ongoing salaried headcount initiatives and restructuringsavings.
-
Full Year Segment Results
Sales
| Year EndedDecember 31, |
|
| Variance DueTo: | ||||||||
| 2022 |
| 2021 |
| Change |
|
| Volume /Mix * |
| ForeignExchange |
| Deconsolidation |
| (Dollar amounts inthousands) | |||||||||||
Sales toexternal customers | Unaudited |
|
|
|
|
|
|
|
|
|
|
|
North America | $ 1,341,099 |
| $ 1,148,257 |
| $ 192,842 |
|
| $ 195,844 |
| $(3,002) |
| $ — |
Europe | 503,672 |
| 518,245 |
| (14,573) |
|
| 47,557 |
| (62,130) |
| — |
Asia Pacific | 443,126 |
| 458,306 |
| (15,180) |
|
| 45,114 |
| (29,653) |
| (30,641) |
South America | 100,420 |
| 61,713 |
| 38,707 |
|
| 34,400 |
| 4,307 |
| — |
TotalAutomotive | 2,388,317 |
| 2,186,521 |
| 201,796 |
|
| 322,915 |
| (90,478) |
| (30,641) |
Corporate,eliminations and other | 137,074 |
| 143,670 |
| (6,596) |
|
| (656) |
| (5,940) |
| — |
Consolidated | $ 2,525,391 |
| $2,330,191 |
| $ 195,200 |
|
| $ 322,259 |
| $(96,418) |
| $(30,641) |
* Net of customer price adjustmentsincluding recoveries
- Volume andmix, net of customer price adjustments including recoveries, wasdriven by vehicle production volume increases due to the lesseningimpact of semiconductor-related supply issues.
- The impact offoreign currency exchange was primarily related to the Euro, ChineseRenminbi and Korean Won.
Adjusted EBITDA
| Year EndedDecember 31, |
|
| Variance DueTo: | |||||||||
| 2022 |
| 2021 |
| Change |
|
| Volume /Mix * |
| ForeignExchange |
| Cost Decreases /(Increases)** |
|
| (Dollar amounts inthousands) | ||||||||||||
Segment adjustedEBITDA | Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
North America | $70,819 |
| $54,616 |
| $16,203 |
|
| $77,672 |
| $(3,395) |
| $(58,074) |
|
Europe | (37,137) |
| (49,599) |
| 12,462 |
|
| 41,972 |
| 1,394 |
| (30,904) |
|
AsiaPacific | 1,556 |
| (16,756) |
| 18,312 |
|
| 25,609 |
| (6,042) |
| (1,255) |
|
South America | 97 |
| (9,852) |
| 9,949 |
|
| 10,219 |
| 3,072 |
| (3,342) |
|
TotalAutomotive | 35,335 |
| (21,591) |
| 56,926 |
|
| 155,472 |
| (4,971) |
| (93,575) |
|
Corporate, eliminationsand other | 2,533 |
| 13,557 |
| (11,024) |
|
| 11,544 |
| 371 |
| (22,939) |
|
Consolidated adjustedEBITDA | $37,868 |
| $(8,034) |
| $45,902 |
|
| $167,016 |
|
$(4,600) |
| $(116,514) |
|
* Net ofcustomer price adjustments including recoveries
**Net ofdeconsolidation
- Volume and mix,net of customer price adjustments including recoveries, was driven byvehicle production volume increases due to the lessening impact ofsemiconductor-related supply issues.
- Foreign currency exchangewas impacted by the Chinese Renminbi, Korean Won, Mexican Peso,Canadian Dollar, Euro, Polish Zloty, Czech Koruna and the BrazilianReal.
-
The Cost Decreases / (Increases) category aboveincludes:
-
Commodity cost andinflationary economics;
-
Manufacturing efficiencies andpurchasing savings through lean initiatives;
-
Increasedcompensation-related expenses; and
-
Decreased costsrelated to ongoing salaried headcount initiatives and restructuringsavings.
-
Outlook
Based on our outlook for the global automotive industry,macroeconomic conditions, current customer production schedules andour own operating plans, the Company has issued 2023 full yearguidance as follows:
| Initial 2023Guidance 1 |
Sales | $
|
AdjustedEBITDA 2 | $ 150 - $175 million |
CapitalExpenditures | $ 70 - $80million |
CashRestructuring | $ 35 - $40million |
CashInterest | $ 50 - $55million |
Net CashTaxes | $ 10 - $20million |
Key Light Vehicle ProductionsAssumptions (Units) |
|
North America | 15.1 million |
Europe | 16.5 million |
GreaterChina | 26.6 million |
South America | 3.0 million |
|
|
1 Guidance isrepresentative of management's estimates and expectations as ofthe date it is published. Current guidance as presented in this pressrelease considers January 2023 S&P Global (IHS Markit) productionforecasts for relevant light vehicle platforms and models,customers' planned production schedules and other internalassumptions.
2 Adjusted EBITDA is a non-GAAP financial measure.The Company has not provided a reconciliation of projected adjustedEBITDA to projected net income because full-year net income willinclude special items that have not yet occurred and are difficult topredict with reasonable certainty prior to year-end. Due to thisuncertainty, the Company cannot reconcile projected adjusted EBITDA toU.S. GAAP net income without unreasonable effort.
Conference CallDetails
CooperStandard management will host a conference call and webcast onFebruary 17, 2023 at 9:00 a.m. ET to discuss its fourth quarter 2022results, provide a general business update and respond to investorquestions. Investors and other interested parties may listen to thecall by accessing the online, real-time webcast at
https://edge.media-server.com/mmc/p/jqkaw9ec .
Investors, analysts andother representatives of the investment community who wish toparticipate by phone in the live conference and have the opportunityto ask questions during Q&A will need to pre-register for the callby visiting https://register.vevent.com/register/BI5e9540006e474e22ab2fd8f8bc2ae7d2 .Once registration is completed, participants will be provided with adial-in number and a personalized conference code to access the call.Participants should dial in at least five minutes prior to the startof the call.
Areplay of the webcast will be available on the investors’ portion ofthe Cooper Standard website ( http://www.ir.cooperstandard.com )shortly after the live event.
About Cooper Standard
Cooper Standard,headquartered in Northville, Mich., with locations in 21 countries, isa leading global supplier of sealing and fluid handling systems andcomponents. Utilizing our materials science and manufacturingexpertise, we create innovative and sustainable engineered solutionsfor diverse transportation and industrial markets. CooperStandard's approximately 22,600 employees are at the heart of oursuccess, continuously improving our business and surroundingcommunities. Learn more at www.cooperstandard.com orfollow us on Twitter @CooperStandard.
Forward-Looking Statements
This press releaseincludes “forward-looking statements” within the meaning of U.S.federal securities laws, and we intend that such forward-lookingstatements be subject to the safe harbor created thereby. Our use ofwords “estimate,” “expect,” “anticipate,” “project,”“plan,” “intend,” “believe,” “outlook,”“guidance,” “forecast,” or future or conditional verbs, suchas “will,” “should,” “could,” “would,” or “may,”and variations of such words or similar expressions are intended toidentify forward-looking statements. All forward-looking statementsare based upon our current expectations and various assumptions. Ourexpectations, beliefs, and projections are expressed in good faith andwe believe there is a reasonable basis for them. However, we cannotassure you that these expectations, beliefs and projections will beachieved. Forward-looking statements are not guarantees of futureperformance and are subject to significant risks and uncertaintiesthat may cause actual results or achievements to be materiallydifferent from the future results or achievements expressed or impliedby the forward-looking statements. Among other items, such factors mayinclude: volatility or decline of the Company’s stock price, orabsence of stock price appreciation; impacts, including commodity costincreases and disruptions related to the war in Ukraine and theCOVID-related lockdowns in China; our ability to offset the adverseimpact of higher commodity and other costs through negotiations withour customers; the impact, and expected continued impact, of theCOVID-19 outbreak on our financial condition and results ofoperations; significant risks to our liquidity presented by theCOVID-19 pandemic risk; prolonged or material contractions inautomotive sales and production volumes; our inability to realizesales represented by awarded business; escalating pricing pressures;loss of large customers or significant platforms; our ability tosuccessfully compete in the automotive parts industry; availabilityand increasing volatility in costs of manufactured components and rawmaterials; disruption in our supply base; competitive threats andcommercial risks associated with our diversification strategy throughour Advanced Technology Group; possible variability of our workingcapital requirements; risks associated with our internationaloperations, including changes in laws, regulations, and policiesgoverning the terms of foreign trade such as increased traderestrictions and tariffs; foreign currency exchange rate fluctuations;our ability to control the operations of our joint ventures for oursole benefit; our substantial amount of indebtedness and variablerates of interest; our ability to obtain adequate financing sources inthe future; operating and financial restrictions imposed on us underour debt instruments; the underfunding of our pension plans;significant changes in discount rates and the actual return on pensionassets; effectiveness of continuous improvement programs and othercost savings plans; manufacturing facility closings or consolidation;our ability to execute new program launches; our ability to meetcustomers’ needs for new and improved products; the possibility thatour acquisitions and divestitures may not be successful; productliability, warranty and recall claims brought against us; laws andregulations, including environmental, health and safety laws andregulations; legal and regulatory proceedings, claims orinvestigations against us; work stoppages or other labor disruptions;the ability of our intellectual property to withstand legalchallenges; cyber-attacks, data privacy concerns, other disruptionsin, or the inability to implement upgrades to, our informationtechnology systems; the possible volatility of our annual effectivetax rate; the possibility of a failure to maintain effective controlsand procedures; the possibility of future impairment charges to ourgoodwill and long-lived assets; our ability to identify, attract,develop and retain a skilled, engaged and diverse workforce; ourability to procure insurance at reasonable rates; and our dependenceon our subsidiaries for cash to satisfy our obligations; and otherrisks and uncertainties, including those detailed from time to time inthe Company’s periodic reports filed with the Securities andExchange Commission.
You should not place undue reliance on these forward-lookingstatements. Our forward-looking statements speak only as of the dateof this press release and we undertake no obligation to publiclyupdate or otherwise revise any forward-looking statement, whether as aresult of new information, future events or otherwise, except where weare expressly required to do so by law.
This press release also contains estimates andother information that is based on industry publications, surveys andforecasts. This information involves a number of assumptions andlimitations, and we have not independently verified the accuracy orcompleteness of the information.
CPS_F
Financial statements and related notes follow:
COOPER-STANDARDHOLDINGS INC. | |||||||
CONSOLIDATED STATEMENTS OFOPERATIONS | |||||||
(Dollar amounts in thousands except share and pershare amounts) | |||||||
|
|
|
|
|
|
|
|
| Quarter Ended December 31, |
| Year EndedDecember 31, | ||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
|
Sales | $ 649,337 |
| $ 601,349 |
| $ 2,525,391 |
| $ 2,330,191 |
Cost of productssold | 595,023 |
| 573,353 |
| 2,395,600 |
| 2,242,963 |
Grossprofit | 54,314 |
| 27,996 |
| 129,791 |
| 87,228 |
Selling, administration &engineering expenses | 50,422 |
| 58,604 |
| 199,455 |
| 227,110 |
Gain on sale of business,net | — |
| — |
| — |
| (696) |
Gain on sale of fixed assets,net | — |
| — |
| (33,391) |
| — |
Amortization of intangibles | 1,539 |
| 1,823 |
| 6,715 |
| 7,347 |
Impairment charges | 42,873 |
| 23,762 |
| 43,710 |
| 25,609 |
Restructuring charges | 5,290 |
| 2,699 |
| 18,304 |
| 36,950 |
Operating loss | (45,810) |
| (58,892) |
| (105,002) |
| (209,092) |
Interest expense, net of interestincome | (21,136) |
| (18,359) |
| (78,514) |
| (72,511) |
Equity in losses ofaffiliates | (624) |
| (1,793) |
| (8,817) |
| (1,728) |
Pension settlement andcurtailment charges | (2,682) |
| (1,279) |
| (2,682) |
| (1,279) |
Other expense, net | (2,911) |
| (621) |
| (5,485) |
| (4,842) |
Loss beforeincome taxes | (73,163) |
| (80,944) |
| (200,500) |
| (289,452) |
Income taxexpense | 15,467 |
| 23,794 |
| 17,291 |
| 39,392 |
Netloss | (88,630) |
| (104,738) |
| (217,791) |
| (328,844) |
Net loss attributable to noncontrollinginterests | 539 |
| 2,551 |
| 2,407 |
| 6,009 |
Net lossattributable to Cooper-Standard Holdings Inc. | $(88,091) |
| $(102,187) |
| $(215,384) |
| $(322,835) |
|
|
|
|
|
|
|
|
Weightedaverage shares outstanding |
|
|
|
|
|
|
|
Basic | 17,218,921 |
| 17,099,143 |
| 17,190,958 |
| 17,045,353 |
Diluted | 17,218,921 |
| 17,099,143 |
| 17,190,958 |
| 17,045,353 |
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
Basic | $ (5.12) |
| $(5.98) |
| $(12.53) |
| $(18.94) |
Diluted | $(5.12) |
| $(5.98) |
| $(12.53) |
| $(18.94) |
COOPER-STANDARD HOLDINGSINC. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Dollar amounts inthousands) | ||||
|
|
|
|
|
|
| December 31, | ||
|
| 2022 |
| 2021 |
Assets |
| (Unaudited) |
|
|
Currentassets: |
|
|
|
|
Cash and cashequivalents |
| $ 186,875 |
| $ 248,010 |
Accountsreceivable, net |
| 358,700 |
| 317,469 |
Toolingreceivable, net |
| 95,965 |
| 88,900 |
Inventories |
| 157,756 |
| 158,075 |
Prepaidexpenses |
| 31,170 |
| 26,313 |
Income taxreceivable and refundable credits |
| 13,668 |
| 82,813 |
Other currentassets |
| 101,515 |
| 73,317 |
Total currentassets |
| 945,649 |
| 994,897 |
Property, plant and equipment,net |
| 642,860 |
| 784,348 |
Operating lease right-of-useassets, net |
| 94,571 |
| 111,052 |
Goodwill |
| 142,023 |
| 142,282 |
Intangible assets,net |
| 47,641 |
| 60,375 |
Deferred taxassets |
| 19,852 |
| 27,805 |
Otherassets |
| 70,933 |
| 105,734 |
Totalassets |
| $ 1,963,529 |
| $2,226,493 |
Liabilitiesand Equity |
|
|
|
|
Currentliabilities: |
|
|
|
|
Debt payablewithin one year |
| $ 54,130 |
| $ 56,111 |
Accountspayable |
| 338,210 |
| 348,133 |
Payrollliabilities |
| 99,029 |
| 69,353 |
Accruedliabilities |
| 119,463 |
| 101,466 |
Currentoperating lease liabilities |
| 20,786 |
| 22,552 |
Total currentliabilities |
| 631,618 |
| 597,615 |
Long-termdebt |
| 982,054 |
| 980,604 |
Pensionbenefits |
| 98,481 |
| 129,880 |
Postretirement benefits otherthan pensions |
| 31,014 |
| 43,498 |
Long-term operating leaseliabilities |
| 77,617 |
| 92,760 |
Deferred taxliabilities |
| 7,052 |
| 8,414 |
Otherliabilities |
| 34,501 |
| 42,362 |
Totalliabilities |
| 1,862,337 |
| 1,895,133 |
Equity: |
|
|
|
|
Commonstock |
| 17 |
| 17 |
Additionalpaid-in capital |
| 507,498 |
| 504,497 |
Retainedearnings (deficit) |
| (189,831) |
| 25,553 |
Accumulatedother comprehensive loss |
| (209,971) |
| (205,184) |
Total Cooper-Standard Holdings Inc.equity |
| 107,713 |
| 324,883 |
Noncontrolling interests |
| (6,521) |
| 6,477 |
Totalequity |
| 101,192 |
| 331,360 |
Totalliabilities and equity |
| $ 1,963,529 |
| $ 2,226,493 |
COOPER-STANDARDHOLDINGS INC. | |||||
CONSOLIDATED STATEMENTS OF CASHFLOWS | |||||
(Dollaramounts in thousands) | |||||
|
|
|
|
|
|
| Year Ended December 31, | ||||
| 2022 |
| 2021 |
| 2020 |
| (Unaudited) |
|
|
|
|
OperatingActivities: |
|
|
|
|
|
Net loss | $ (217,791) |
| $(328,844) |
| $(269,374) |
Adjustments to reconcile net loss to net cash (used in) providedby operating activities: |
|
|
|
|
|
Depreciation | 115,761 |
| 131,661 |
| 142,618 |
Amortization ofintangibles | 6,715 |
| 7,347 |
| 11,611 |
Gain on sale ofbusiness, net | — |
| (696) |
| (2,834) |
Gain on sale offixed assets, net | (33,391) |
| — |
| — |
Impairmentcharges | 43,710 |
| 25,609 |
| 104,363 |
Pensionsettlement and curtailment charges | 2,682 |
| 1,279 |
| 184 |
Share-basedcompensation expense | 3,259 |
| 5,574 |
| 10,435 |
Equity inlosses, net of dividends related to earnings | 12,450 |
| 4,872 |
| 6,847 |
Deferred income taxes | 5,653 |
| 35,756 |
| (8,722) |
Other | (10,887) |
| 3,222 |
| 5,232 |
Changes inoperating assets and liabilities: |
|
|
|
|
|
Accounts andtooling receivable | (65,712) |
| 52,677 |
| 94,125 |
Inventories | (2,221) |
| (18,527) |
| (15,236) |
Prepaidexpenses | (5,658) |
| 2,951 |
| 2,099 |
Income taxreceivable and refundable credits | 68,251 |
| 2,221 |
| (52,374) |
Accountspayable | 20,591 |
| (25,501) |
| (18,370) |
Payroll andaccrued liabilities | 46,177 |
| (45,392) |
| 40,413 |
Other | (25,739) |
| 30,281 |
| (66,951) |
Net cash used in operatingactivities | (36,150) |
| (115,510) |
| (15,934) |
Investing activities: |
|
|
|
|
|
Capital expenditures | (71,150) |
| (96,107) |
| (91,794) |
Proceeds fromsale of business, net of cash divested | — |
| — |
| (17,006) |
Proceeds fromsale of fixed assets | 53,288 |
| 4,615 |
| 1,195 |
Other | (30) |
| 230 |
| 725 |
Net cash used ininvesting activities | (17,892) |
| (91,262) |
| (106,880) |
Financingactivities: |
|
|
|
|
|
Proceeds from issuance of long-term debt, net ofdiscount | — |
| — |
| 245,000 |
Principalpayments on long-term debt | (4,178) |
| (5,533) |
| (6,192) |
Increase(decrease) in short-term debt, net | 4,093 |
| 14,935 |
| (22,372) |
Debt issuancecosts | (4,229) |
| — |
| (7,249) |
Purchase of noncontrollinginterest | — |
| (6,279) |
| — |
Taxes withheldand paid on employees' share-based payment awards | (607) |
| (799) |
| (544) |
Contribution from noncontrolling interestsand other | 655 |
| 885 |
| (928) |
Net cash (used in) provided by financingactivities | (4,266) |
| 3,209 |
| 207,715 |
Effects of exchange rate changes oncash, cash equivalents and restricted cash | (13) |
| 11,113 |
| (3,065) |
Changes in cash, cash equivalentsand restricted cash | (58,321) |
| (192,450) |
| 81,836 |
Cash, cash equivalents andrestricted cash at beginning of period | 251,128 |
| 443,578 |
| 361,742 |
Cash, cash equivalents andrestricted cash at end of period | $ 192,807 |
| $ 251,128 |
| $ 443,578 |
|
|
|
|
|
|
Reconciliation of cash, cash equivalents and restricted cash tothe consolidated balance sheet: |
|
| |||
|
|
|
|
|
|
Cash and cashequivalents | $ 186,875 |
| $ 248,010 |
| $ 438,438 |
Restricted cash included in othercurrent assets | 4,650 |
| 961 |
| 4,089 |
Restricted cash included in otherassets | 1,282 |
| 2,157 |
| 1,051 |
Total cash, cash equivalents and restrictedcash shown in the statement of cash flows | $ 192,807 |
| $ 251,128 |
| $ 443,578 |
Non-GAAP Measures
EBITDA, adjusted EBITDA, adjusted EBITDAmargin, adjusted net income (loss), adjusted earnings (loss) per shareand free cash flow are measures not recognized under U.S. GAAP andwhich exclude certain non-cash and special items that may obscuretrends and operating performance not indicative of the Company’score financial activities. Net new business is a measure notrecognized under U.S. GAAP which is a representation of potentialincremental future revenue but which may not fully reflect allexternal impacts to future revenue. Management considers EBITDA,adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss),adjusted earnings (loss) per share, free cash flow and net newbusiness to be key indicators of the Company’s operating performanceand believes that these and similar measures are widely used byinvestors, securities analysts and other interested parties inevaluating the Company’s performance. In addition, similar measuresare utilized in the calculation of the financial covenants and ratioscontained in the Company’s financing arrangements and managementuses these measures for developing internal budgets and forecastingpurposes. EBITDA is defined as net income (loss) adjusted to reflectincome tax expense (benefit), interest expense net of interest income,depreciation and amortization, and adjusted EBITDA is defined asEBITDA further adjusted to reflect certain items that management doesnot consider to be reflective of the Company’s core operatingperformance. Adjusted net income (loss) is defined as net income(loss) adjusted to reflect certain items that management does notconsider to be reflective of the Company’s core operatingperformance. Adjusted EBITDA margin is defined as adjusted EBITDA as apercentage of sales. Adjusted basic and diluted earnings (loss) pershare is defined as adjusted net income (loss) divided by the weightedaverage number of basic and diluted shares, respectively, outstandingduring the period. Free cash flow is defined as net cash provided byoperating activities minus capital expenditures and is useful to bothmanagement and investors in evaluating the Company’s ability toservice and repay its debt. Net new business reflects anticipatedsales from formally awarded programs, less lost business, discontinuedprograms and replacement programs and is based on S&P Global (IHSMarkit) forecast production volumes. The calculation of “net newbusiness” does not reflect customer price reductions on existingprograms and may be impacted by various assumptions embedded in therespective calculation, including actual vehicle production levels onnew programs, foreign exchange rates and the timing of major programlaunches.
Whenanalyzing the Company’s operating performance, investors should useEBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income(loss), adjusted earnings (loss) per share, free cash flow and net newbusiness as supplements to, and not as alternatives for, net income(loss), operating income, or any other performance measure derived inaccordance with U.S. GAAP, and not as an alternative to cash flow fromoperating activities as a measure of the Company’s liquidity.EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings(loss) per share, free cash flow and net new business have limitationsas analytical tools and should not be considered in isolation or assubstitutes for analysis of the Company’s results of operations asreported under U.S. GAAP. Other companies may report EBITDA, adjustedEBITDA, adjusted EBITDA margin, adjusted net income (loss), adjustedearnings (loss) per share, free cash flow and net new businessdifferently and therefore the Company’s results may not becomparable to other similarly titled measures of other companies. Inaddition, in evaluating adjusted EBITDA and adjusted net income(loss), it should be noted that in the future the Company may incurexpenses similar to or in excess of the adjustments in the belowpresentation. This presentation of adjusted EBITDA and adjusted netincome (loss) should not be construed as an inference that theCompany’s future results will be unaffected by special items.Reconciliations of EBITDA, adjusted EBITDA, adjusted EBITDA margin,adjusted net income (loss) and free cash flow follow.
Reconciliation ofNon-GAAP Measures
EBITDA and Adjusted EBITDA
The following table provides reconciliation of EBITDA andadjusted EBITDA from net (loss) income (unaudited):
| QuarterEnded December 31, |
| Year EndedDecember 31, | ||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| (dollar amounts inthousands) | ||||||
Net lossattributable to Cooper-Standard Holdings Inc. | $ (88,091) |
| $ (102,187) |
| $ (215,384) |
| $ (322,835) |
Income tax expense (benefit) | 15,467 |
| 23,794 |
| 17,291 |
| 39,392 |
Interest expense, net of interestincome | 21,136 |
| 18,359 |
| 78,514 |
| 72,511 |
Depreciation andamortization | 28,303 |
| 33,987 |
| 122,476 |
| 139,008 |
EBITDA | $ (23,185) |
| $ (26,047) |
| $ 2,897 |
| $ (71,924) |
Restructuringcharges | 5,290 |
| 2,699 |
| 18,304 |
| 36,950 |
Deconsolidation of joint venture (1) | — |
| — |
| 2,257 |
| — |
Impairment charges (2) | 42,873 |
| 23,762 |
| 43,710 |
| 25,609 |
Gain on sale of business, net (3) | — |
| — |
| — |
| (696) |
Gain on sale of fixed assets,net (4) | — |
| — |
| (33,391) |
| — |
Lease termination costs (5) | — |
| 318 |
| — |
| 748 |
Indirect tax and customsadjustments (6) | (68) |
| — |
| 1,409 |
| — |
Pension settlement andcurtailment charges (7) | 2,682 |
| 1,279 |
| 2,682 |
| 1,279 |
AdjustedEBITDA | $ 27,592 |
| $ 2,011 |
| $ 37,868 |
| $ (8,034) |
|
|
|
|
|
|
|
|
Sales | $ 649,337 |
| $ 601,349 |
| $ 2,525,391 |
| $ 2,330,191 |
Net loss margin | (13.6) % |
| (17.0) % |
| (8.5) % |
| (13.9) % |
Adjusted EBITDA margin | 4.2 % |
| 0.3 % |
| 1.5 % |
| (0.3) % |
- Loss attributable to deconsolidation of a joint venture in theAsia Pacific region, which required adjustment to fair value.
- Non-cash impairment charges in 2022 relatedto recent operating performance and idle assets in certain locationsin North America, Europe and Asia Pacific. Impairment charges in 2021related to fixed assets and goodwill.
- During 2021, the Company recorded subsequent adjustments to thenet gain on sale of business, which related to the 2020 divestiture ofour European rubber fluid transfer and specialty sealing businesses,as well as its Indian operations.
- In 2022, the Company recognized a gain on a sale-leasebackagreement on one of its European facilities.
- Lease termination costs no longer recordedas restructuring charges in accordance with ASC 842, Leases .
- Impact of priorperiod indirect tax and customs adjustments.
- Non-cash net pension settlement andcurtailment charges and administrative fees incurred related tocertain of our U.S. and non-U.S. pension plans.
Adjusted Net Lossand Adjusted Loss Per Share
Thefollowing table provides reconciliation of net (loss) income toadjusted net (loss) income and the respective (loss) earnings pershare amounts (unaudited):
| Quarter Ended December 31, |
| Year EndedDecember 31, | ||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| (dollar amounts in thousands, except pershare amounts) | ||||||
Net lossattributable to Cooper-Standard Holdings Inc. | $ (88,091) |
| $ (102,187) |
| $ (215,384) |
| $ (322,835) |
Restructuring charges | 5,290 |
| 2,699 |
| 18,304 |
| 36,950 |
Deconsolidation of joint venture (1) | — |
| — |
| 2,257 |
| — |
Impairment charges (2) | 42,873 |
| 23,762 |
| 43,710 |
| 25,609 |
Gain on sale of business, net (3) | — |
| — |
| — |
| (696) |
Gain on sale of fixed assets,net (4) | — |
| — |
| (33,391) |
| — |
Lease termination costs (5) | — |
| 318 |
| — |
| 748 |
Indirect tax and customsadjustments (6) | (68) |
| — |
| 1,409 |
| — |
Pension settlement andcurtailment charges (7) | 2,682 |
| 1,279 |
| 2,682 |
| 1,279 |
Deferred tax valuation allowance (8) | 6,834 |
| 23,627 |
| 6,834 |
| 36,905 |
Tax impact of adjusting items (9) | (1,408) |
| 225 |
| 2,075 |
| (259) |
Adjusted net loss | $(31,888) |
| $(50,277) |
| $(171,504) |
| $(222,299) |
|
|
|
|
|
|
|
|
Weightedaverage shares outstanding |
|
|
|
|
|
|
|
Basic | 17,218,921 |
| 17,099,143 |
| 17,190,958 |
| 17,045,353 |
Diluted | 17,218,921 |
| 17,099,143 |
| 17,190,958 |
| 17,045,353 |
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
Basic | $ (5.12) |
| $(5.98) |
| $(12.53) |
| $(18.94) |
Diluted | $(5.12) |
| $(5.98) |
| $(12.53) |
| $(18.94) |
|
|
|
|
|
|
|
|
Adjusted loss pershare: |
|
|
|
|
|
|
|
Basic | $ (1.85) |
| $(2.94) |
| $(9.98) |
| $(13.04) |
Diluted | $(1.85) |
| $(2.94) |
| $(9.98) |
| $(13.04) |
- Loss attributable todeconsolidation of a joint venture in the Asia Pacific region, whichrequired adjustment to fair value.
- Non-cash impairment charges in 2022 related to recent operatingperformance and idle assets in certain locations in North America,Europe and Asia Pacific. Impairment charges in 2021 related to fixedassets and goodwill.
- During 2021,the Company recorded subsequent adjustments to the net gain on sale ofbusiness, which related to the 2020 divestiture of our European rubberfluid transfer and specialty sealing businesses, as well as its Indianoperations.
- In 2022, the Companyrecognized a gain on a sale-leaseback agreement on one of its Europeanfacilities.
- Lease termination costsno longer recorded as restructuring charges in accordance with ASC842, Leases .
- Impact of priorperiod indirect tax and customs adjustments.
- Non-cash net pension settlement andcurtailment charges and administrative fees incurred related tocertain of our U.S. and non-U.S. pension plans.
- In 2022, the deferred tax valuationallowance relates to the recognition of our valuation allowance on netdeferred tax assets in Poland. In 2021, the deferred tax valuationallowance relates to the initial recognition of our valuationallowance in the U.S. and certain international jurisdictions.
- Represents the elimination of the incometax impact of the above adjustments, by calculating the income taximpact of these adjusting items using the appropriate tax rate for thejurisdiction where the charges were incurred.
Free CashFlow
The following table provides a reconciliation of net cash (usedin) provided by operating activities to free cash flow(unaudited):
| Quarter Ended December 31, |
| Year EndedDecember 31, | ||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| (dollar amounts inthousands) | ||||||
Net cash (used in) provided by operating activities | $ (25,790) |
| $ (4,022) |
| $ (36,150) |
| $ (115,510) |
Capitalexpenditures | (12,659) |
| (20,142) |
| (71,150) |
| (96,107) |
Free cashflow | $(38,449) |
| $(24,164) |
| $(107,300) |
| $(211,617) |
# # #
ContactDetails
Contact for Analysts:
RogerHendriksen
+1 248-596-6465
roger.hendriksen@cooperstandard.com
Contactfor Media:
Chris Andrews
+1 248-596-6217
CompanyWebsite
https://www.cooperstandard.com/
Copyright (c) 2023 TheNewswire - All rights reserved.