Cooper-Standard Holdings Inc. has reported record results for the second quarter 2016.
During the second quarter of 2016, the company generated net income of $40.9 million, or $2.20 per diluted share, and adjusted EBITDA of $108.5 million on record sales of $879.3 million. These results compare to net income of $36.5 million or $1.98 per diluted share and adjusted EBITDA of $97 million on sales of $860.8 million in the second quarter of 2015.
Second quarter net income, excluding restructuring and other special items, totaled $52.9 million, or $2.85 per diluted share. Adjusted net income in the prior year period was $41 million, or $2.23 per diluted share.
“We are pleased to report record results for the quarter,” said Jeffrey Edwards, chairman and CEO of Cooper Standard. “Driven by our culture and strategy, this marks the seventh consecutive reporting period in which we have delivered year-over-year improvement in adjusted EBITDA and adjusted EBITDA margin.”
For the first six months of 2016, the company reported net income of $71.5 million, or $3.83 per diluted share, and adjusted EBITDA of $212.1 million on sales of $1.74 billion. By comparison, the company reported net income of $57.5 million, or $3.14 per diluted share, and adjusted EBITDA of $177.7 million on sales of $1.66 billion in the first six months of 2015. Adjusted net income for the first six months of 2016 was $100.3 million or $5.37 per diluted share compared to $70.7 million or $3.86 per diluted share in the first six months of 2015. The company’s adjusted EBITDA margin for the first six months of 2016 was 12.2 percent compared to 10.7 percent in the first six months of 2015.
Consolidated Results
Second quarter 2016 sales increased by $18.5 million or 2.1 percent compared to the second quarter of 2015. The company said year-over-year variance is largely attributable to favorable volume and mix, partially offset by price adjustments, the impact of foreign currency exchange rates and the sale of the company’s hard coat plastic exterior trim business in December 2015. Excluding the impact of foreign currency exchange rates and divestitures, sales in the second quarter were $905.4 million, an increase of 5.2 percent over the second quarter 2015.
Second quarter adjusted EBITDA increased by $11.6 million, or 11.9 percent compared to the second quarter of 2015. Adjusted EBITDA margin as a percent of sales was 12.3 percent in the quarter, up 100 basis points compared to the second quarter of 2015. Cooper Standard said year-over-year variance is primarily attributable to improvements in operating efficiency, favorable volume and mix, and improved supply chain economics and optimization. These favorable items were partially offset by price adjustments, higher compensation-related costs and investments to support growth.
During the second quarter, Cooper Standard launched 60 new customer programs and was awarded an additional $47 million in annual net new business, driven largely by sales of innovative new products and technology. The new programs and new business were mostly on global platforms, the company stated.
