Cooper-Standard Holdings Inc. has reported results for the first quarter 2020.
First Quarter 2020 Summary
- Sales totaled $654.9 million
- Net loss of $110.6 million or $(6.55) per diluted share
- Adjusted EBITDA of $8.3 million or 1.3 percent of sales
- Adjusted net loss of $36.5 million or $(2.16) per diluted share
- Strong cash balance of $301.8 million at quarter end
- Net new business awards totaled $82 million in projected annualized sales
- Contract awards related to the Company’s innovation products totaled $121 million
“During this period of unprecedented market disruption, our team has been universally focused on maintaining the health and safety of our employees and conserving cash to ensure the continued financial strength and flexibility of the company,” said Jeffrey Edwards, chairman and CEO, Cooper Standard. “As a result of our aggressive actions, beginning in 2019 and continuing to date, we ended the quarter with more than $300 million of cash on the balance sheet. Combined with availability on our credit facilities, we expect to have ample liquidity to sustain our operations.”
The year-over-year change in first quarter sales was primarily attributable to customers idling operations in response to the COVID-19 pandemic, the prior-year sale of thec Anti-Vibration Systems (AVS) business, unfavorable volume and mix, and unfavorable foreign exchange.
Net loss for the first quarter 2020 included non-cash impairment charges related to assets held for sale in the amount of $74.1 million, certain project costs related to assets held for sale of $2.4 million and restructuring charges related to headcount reduction actions of $7.3 million and other special items. Adjusted net loss, which excludes these items and their related tax impact, was $(36.5) million in the first quarter 2020 compared to adjusted net income of $9.9 million in the first quarter of 2019. The company said the decline was due largely to the impact of the COVID-19 pandemic, other unfavorable volume and mix, general inflation and foreign exchange, partially offset by operating efficiencies, lower SGA&E expense and other cost saving initiatives.
