Cooper-Standard Holdings Inc. has reported record results for the first quarter of 2016.
During the first quarter of 2016, the company generated net income of $30.6 million, or $1.64 per diluted share, and adjusted EBITDA of $103.6 million on record sales of $862.5 million. These results compare to net income of $21 million or $1.15 per diluted share and adjusted EBITDA of $80.8 million on sales of $800.1 million in the first quarter of 2015.
First quarter 2016 net income, excluding restructuring and other special items (adjusted net income), totaled $47.4 million or $2.54 per diluted share. Adjusted net income in the prior year period was $29.7 million or $1.63 per diluted share.
“Our record results in the quarter are attributable to our strategy, culture and engaged employees, as well as our continued focus on innovation and operational excellence,” said Jeffrey Edwards, chairman and CEO of Cooper Standard. “We are pursuing very focused initiatives in each of our operating regions to drive additional growth, profitability and cash flow. Following this quarter’s strong start, we expect to continue building further strategic and financial momentum for our company throughout the year.”
Consolidated Results
First quarter 2016 sales increased by $62.4 million or 7.8 percent compared to the first quarter of 2015. The company said this year-over-year variance is largely attributable to favorable volume and mix as well as incremental revenue from the acquisition of Huayu-Cooper Standard Sealing Systems Co., partially offset by a $27.7 million impact from unfavorable foreign currency exchange rates and the sale of the company’s hard coat plastic exterior trim business in December 2015. Excluding the impact from foreign currency exchange rates, sales in the first quarter of 2016 were $890.2 million, an increase of 11.3 percent over the first quarter of 2015.
First quarter adjusted EBITDA increased by $22.8 million or 28.3 percent compared to the first quarter of 2015. The 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 wage increases, price adjustments and the impact of unfavorable foreign currency exchange rates.
During the first quarter, Cooper Standard launched 70 new customer programs, 48 of which were on global platforms, and was awarded $167 million in annual net new business, mostly on global platforms.
Also during the quarter, the company completed a secondary public offering of 2.3 million shares of common stock that had been owned by its three largest shareholders and announced a $125 million share repurchase program. In conjunction with the secondary offering, the company repurchased 350,000 shares of its common stock at a price of $68 per share. Underwriting fees and other expenses incurred with the secondary offering and share repurchase were allocated to the company’s operating segments as a one-time expense in the quarter.
