NEW ALBANY, Ohio — Commercial Vehicle Group has reported revenues of $135.7 million for the fourth quarter, compared to $164.4 million for the prior year period.
Operating loss for the fourth quarter was ($41.2) million and net loss was ($23.7) million, or ($1.08) per diluted share, for the same period. Fully diluted shares outstanding for the quarter were 22.0 million. Included in the company’s results is a non-cash expense of approximately $37 million related to the impairment of certain tangible and intangible assets. The company also recorded restructuring charges of approximately $1.5 million relating to the closure and consolidation of one of its facilities located in Liberec, Czech Republic, and approximately $0.2 million of employee-related expenses for the closure of its Norwalk, Ohio, truck cab assembly facility.
The company also reported a tax benefit of approximately $17.4 million during the fourth quarter and $16.3 million for the year ending Dec. 31, 2009. The company remains subject to ongoing valuation allowances required under ASC 740; however, the benefit recorded during the period is primarily attributable to tax legislation passed during the fourth quarter 2009 allowing for the company’s 2009 tax losses to be carried back for a period of five years. The company estimates it will receive a tax refund as a result of this legislation in the range of $18 to $21 million during the second quarter of 2010.
"Our fourth quarter was fairly strong in comparison to the first three quarters of 2009. Excluding the non-cash impairments and restructuring charges, our operating performance was essentially flat to the fourth quarter of 2008 with substantially less revenues," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "This is due in large part to the cost-cutting measures and manufacturing realignment actions we took throughout the year, and we are optimistic about the continued impact of these actions into 2010 and beyond," added Dunn.
Revenues for the quarter compared to the prior-year period decreased by approximately $28.7 million, due primarily to the decrease in both the North American Class 8 heavy truck market and the global construction market. Operating loss for the fourth quarter of 2009 was ($41.2) million compared to ($209.7) million for the prior year period. Operating loss for the fourth quarter of 2009 included $37.0 million of charges related to the impairment of certain tangible and intangible assets and $1.7 million of restructuring charges. Operating loss for the prior year quarter included $207.5 million of charges related to the intangible asset impairment for the prior year period. Excluding the non-cash impairments and restructuring charges, the company’s operating loss for the fourth quarter increased approximately $0.4 million compared to the prior year period on $28.7 million less revenues. Net loss for the quarter ended Dec. 31, 2009, was ($23.7) million, or ($1.08) per diluted share, compared to net loss of ($207.7) million, or ($9.57) per diluted share, in the prior year period.
Revenues for the year ended Dec. 31, 2009, compared to the prior-year period decreased by approximately $304.9 million, due primarily to the decrease in the North American Class 8 heavy truck market, the global construction market and general global economic conditions in many of the company’s key end markets. Operating loss for the 12 month period was ($89.7) million compared to ($191.4) million last year. Net loss for the 12 month period was ($81.5) million, or ($3.74) per diluted share, compared to net loss of ($206.8) million, or ($9.58) per diluted share, in the prior 12 month period. Included in the company’s full-year results for 2009 and 2008 are non-cash expenses of approximately $47.4 million and $207.5 million, respectively, related to the impairment of certain tangible and intangible assets. Also included in the company’s 12 month results for 2009 are restructuring charges of approximately $3.7 million.
Net debt (calculated as total debt less cash and cash equivalents) was $151.2 million at Dec. 31, 2009, as compared to $157.6 million at Dec. 31, 2008. The company did not have any outstanding borrowings under its asset-based revolver at Dec. 31, 2009, and, as a result, was not subject to any financial maintenance covenants as of Dec. 31, 2009. The company does not expect to trigger the requirement to comply with financial maintenance covenants in 2010 under the revised debt structure which was put into place in August 2009.
"While 2009 was a difficult year from many perspectives, we are pleased with the progress we achieved throughout the year. With a 40 percent drop in revenues from 2008, we launched multiple cost-cutting initiatives and instituted a modified capital structure to better position ourselves for beyond 2009," said Chad Utrup, chief financial officer of Commercial Vehicle Group. "Although market conditions have driven additional non-cash impairment charges and our cost cutting initiatives required certain restructuring charges, our underlying operating performance continued to improve throughout the year. These successes, along with certain tax related benefits we expect in 2010, should enable us to continue pursuing our strategic objectives as we move forward," added Utrup.
