DJ Cooper Standard Reports Second Quarter Results, Reaffirms Full-year Guidance for Adjusted EBITDA
Cooper Standard Holdings Inc. Cooper Standard Reports Second Quarter Results, Reaffirms Full-year Guidance for Adjusted EBITDA 04-Aug-2022 / 23:03 CET/CEST
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Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the second quarter 2022.
Second Quarter 2022 Summary . Sales totaled USD605.9 million, an increase of 13.6% compared to second quarter 2021 . Net loss amounted to USD33.2 million or USD(1.93) per diluted share . Adjusted EBITDA totaled USD(10.4) million . Quarter-end cash balance of USD250 million; continuing strong total liquidity of USD407 million . Net new business awards of USD57 million, notably with USD39 million on electric vehicle platforms
"We began to see some improvement in global market conditions and production levels in the final four weeks of the quarter," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "With China production coming back on line, European markets and operations beginning to stabilize from Ukraine war-related disruptions, and increasing inflation recoveries from our customers, we saw adjusted EBITDA margins and cash flow turn positive in June. With further improvements in global production volume expected in the remainder of the year, combined with continuing cost reduction initiatives and anticipated incremental positive impact from our enhanced commercial agreements, we continue to expect to deliver full year adjusted EBITDA in line with our original guidance."
Consolidated Results
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
(dollar amounts in millions except per share amounts)
Sales USD 605.9 USD 533.2 USD 1,218.9 USD 1,202.2
Net loss USD (33.2) USD (63.6) USD (94.6) USD (97.5)
Adjusted net loss USD (58.5) USD (51.1) USD (109.9) USD (65.6)
Loss per diluted share USD (1.93) USD (3.73) USD (5.51) USD (5.74)
Adjusted loss per diluted share USD (3.40) USD (3.00) USD (6.40) USD (3.86)
Adjusted EBITDA USD (10.4) USD (14.7) USD (10.2) USD 23.8
The year-over-year increase in second quarter sales was primarily attributable to favorable volume and mix as well as realized recoveries of material cost inflation, which are reflected in price adjustments. These were partially offset by foreign exchange and the deconsolidation of a joint venture in the Asia Pacific region.
Net loss for the second quarter 2022 was USD(33.2) million, including a gain on the sale of fixed assets of USD33.4 million, restructuring charges of USD3.5 million and other special items. Net loss for the second quarter 2021 was USD (63.6) million, including restructuring charges of USD11.6 million and other special items. Adjusted net loss, which excludes restructuring, other special items and their related tax impact, was USD(58.5) million in the second quarter 2022 compared to USD(51.1) million in the second quarter of 2021. The year-over-year change was primarily due to continuing increases in commodity and material costs, wages, general inflation and higher income tax expense. These were partially offset by favorable volume and mix, manufacturing efficiencies, and the positive impact of our enhanced commercial agreements and material cost inflation recovery initiatives.
Adjusted net loss, adjusted EBITDA and adjusted loss per diluted share are non-GAAP measures. Reconciliations to the most directly comparable financial measures, calculated and presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), are provided in the attached supplemental schedules.
Automotive New Business Awards
The Company continues to leverage its world-class engineering and manufacturing capabilities, its innovation programs and its reputation for quality and service to win new business awards with its customers. During the second quarter of 2022, the Company received net new business awards representing approximately USD57 million in incremental anticipated future annualized sales. Notably, the net new business awards for the quarter included USD39 million on electric vehicle platforms. Since the beginning of 2020, the Company has received net new business awards on electric vehicle platforms totaling over USD250 million in expected incremental annualized sales.
Cost Recovery Initiatives
The Company continues to work with its customers to recover incremental costs associated with increasing raw material prices, higher wages, general inflation and other market challenges. Through a combination of expanded index-based agreements and other commercial enhancements, the Company now expects to realize material cost recoveries at a rate exceeding the historical range of 40 - 60%. The expanded index-based agreements have been established to cover a significant majority of the Company's revenue base. These agreements cover both oil-based materials and metals and are expected to largely reduce the Company's exposure to commodity price volatility going forward. In addition, certain of the agreements provide for retroactive recovery of a portion of commodity cost increases already incurred.
Segment Results of Operations
Sales
Three Months Ended June 30, Variance Due To:
2022 2021 Change Volume / Mix* Foreign Exchange Deconsolidation
(dollar amounts in thousands)
Sales to external customers
North America USD 331,687 USD 247,525 USD 84,162 USD 85,220 USD (1,058) USD -
Europe 126,287 132,621 (6,334) 10,499 (16,833) -
Asia Pacific 85,779 103,915 (18,136) (6,741) (4,852) (6,543)
South America 26,261 14,153 12,108 10,319 1,789 -
Total Automotive 570,014 498,214 71,800 99,297 (20,954) (6,543)
Corporate, eliminations and other 35,903 34,971 932 2,581 (1,649) -
Consolidated sales USD 605,917 USD 533,185 USD 72,732 USD 101,878 USD (22,603) USD (6,543)
^* Net of customer price adjustments . Volume and mix, net of customer price adjustments, including recoveries, was driven by vehicle production volumeincreases due to the lessening impact of semiconductor-related supply issues, partially offset by the impact ofCOVID-19 shutdowns in China and the Ukraine conflict in Europe. . The impact of foreign currency exchange was primarily related to the Euro, Chinese Renminbi, Korean Won andBrazilian Real.
Adjusted EBITDA
Three Months Ended June 30, Variance Due To:
2022 2021 Change Volume/ Foreign Cost (Increases)/
Mix* Exchange Decreases**
(dollar amounts in thousands)
Segment adjusted EBITDA
North America USD 15,441 USD 756 USD USD 34,180 USD (723) USD (18,772)
14,685
Europe (15,316) (14,391) (925) 11,328 2,096 (14,349)
Asia Pacific (7,799) (2,302) (5,497) 3,862 (2,688) (6,671)
South America (1,298) (726) (572) 2,967 (2,297) (1,242)
Total Automotive (8,972) (16,663) 7,691 52,337 (3,612) (41,034)
Corporate, eliminations and (1,402) 1,937 (3,339) 2,621 (124) (5,836)
other
Consolidated adjusted EBITDA USD USD USD 4,352 USD 54,958 USD (3,736) USD (46,870)
(10,374) (14,726)
^* Net of customer price adjustments
^** Net of deconsolidation . Volume and mix, net of customer price adjustments, including recoveries, was driven by vehicle production volumeincreases due to a lessening impact on customer production schedules for semi-conductor-related supply issues inthe current year period partially offset by the impact of COVID-19 shutdowns in China and the Ukraine conflict inEurope. . The impact of foreign currency exchange was primarily related to the Euro, Chinese Renminbi, Korean Won andBrazilian Real. . The Cost (Increases) / Decreases category above includes:? Commodity cost and inflationary economics; - Manufacturing efficiencies and purchasing savings through lean initiatives; - Increased compensation-related expenses; and - Decreased costs related to ongoing salaried headcount initiatives and restructuring savings.
Cash and Liquidity
As of June 30, 2022, Cooper Standard had cash and cash equivalents totaling USD250.5 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was USD406.7 million at the end of the second quarter.
Based on current expectations for light vehicle production and customer demand for our products, the Company expects its current solid cash balance and access to flexible credit facilities will provide sufficient resources to support ongoing operations and the execution of planned strategic initiatives for the foreseeable future.
Outlook
Current customer schedules and industry forecasts have production volumes improving in the second half of 2022. The projected ramp up, however, remains dependent on the capacity and efficiency of the global supply chain and the availability of key components and commodities.
Based on the Company's outlook for the global automotive industry, macroeconomic conditions, current customer production schedules and its own operating plans, the Company is reiterating 2022 full year guidance for adjusted EBITDA. Other aspects of guidance have been adjusted as follows:
2022 Guidance^1
Previous Current Sales USD2.6 - USD2.8 billion USD2.5 - USD2.7 billion Adjusted EBITDA^2 USD50 - USD60 million USD50 - USD60 million Capital Expenditures USD90 - USD100 million USD85 - USD95 million Cash Restructuring USD20 - USD30 million USD20 - USD30 million Net Cash Taxes / (Refund) USD(30) - USD(40) million USD(50) - USD(55) million Key Light Vehicle Production Assumptions North America 15.2 million 14.7 million Europe 18.5 million 16.5 million Greater China 24.7 million 24.5 million
^1 Guidance is representative of management's estimates and expectations as of the date it is published. Current guidance as presented in this press release considers June 2022 IHS Markit production forecasts for relevant light vehicle platforms and models, customers' planned production schedules and other internal assumptions.
^2 Adjusted EBITDA is a non-GAAP financial measure. The Company has not provided a reconciliation of projected adjusted EBITDA to projected net income because full-year net income will include special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Due to this uncertainty, the Company cannot reconcile projected adjusted EBITDA to U.S. GAAP net income without unreasonable effort.
Conference Call Details
Cooper Standard management will host a conference call and webcast on August 5, 2022 at 10:00 a.m. ET to discuss its second quarter 2022 results, provide a general business update and respond to investor questions. A link to the live webcast of the call (listen only) and presentation materials will be available on Cooper Standard's Investor Relations website at www.ir.cooperstandard.com/events.cfm.
To participate by phone, callers in the United States and Canada should dial toll-free (800) 715-9871. International callers should dial (646) 307-1963. Provide the conference ID 8473329 or ask to be connected to the Cooper Standard conference call. Representatives of the investment community will have the opportunity to ask questions after the presentation. Callers should dial in at least five minutes prior to the start of the call.
Individuals unable to participate during the live call may visit the investor relations portion of the Cooper Standard website (www.ir.cooperstandard.com) for a replay of the webcast.
About Cooper Standard
Cooper Standard, headquartered in Northville, Mich., with locations in 21 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard's approximately 22,600 employees are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on Twitter @CooperStandard.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words "estimate," "expect," "anticipate," "project," "plan," "intend," "believe," "outlook," "guidance," "forecast," or future or conditional verbs, such as "will," "should," "could," "would," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: Volatility or decline of the Company's stock price, or absence of stock price appreciation; impacts, including commodity cost increases and disruptions related to the war in Ukraine and the current COVID-related lockdowns in China; our ability to offset the adverse impact of higher commodity and other costs through negotiations with our customers; the impact, and expected continued impact, of the COVID-19 outbreak on our financial condition and results of operations; significant risks to our liquidity presented by the COVID-19 pandemic risk; prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruption in our supply base; competitive threats and commercial risks associated with our diversification strategy through our Advanced Technology Group; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness and variable rates of interest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations against us; work stoppages or other labor disruptions; the ability of our intellectual property to withstand legal challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and long-lived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
This press release also contains estimates and other information that is based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.
CPS_F
Financial statements and related notes follow:
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Sales USD 605,917 USD 533,185 USD 1,218,901 USD 1,202,152
Cost of products sold 590,541 534,118 1,181,983 1,134,793
Gross profit (loss) 15,376 (933) 36,918 67,359
Selling, administration & engineering expenses 52,282 50,085 104,186 108,139
Loss (gain) on sale of business, net - 195 - (696)
Gain on sale of fixed assets, net (33,391) - (33,391) -
Amortization of intangibles 1,737 1,933 3,483 3,705
Restructuring charges 3,482 11,631 11,313 32,678
Impairment charges 3 841 458 841
Operating loss (8,737) (65,618) (49,131) (77,308)
Interest expense, net of interest income (18,454) (18,125) (36,631) (35,909)
Equity in (losses) earnings of affiliates (3,446) 393 (4,802) 1,179
Other (expense) income, net (1,509) 1,362 (2,720) (3,727)
Loss before income taxes (32,146) (81,988) (93,284) (115,765)
Income tax expense (benefit) 2,005 (17,459) 2,657 (16,523)
Net loss (34,151) (64,529) (95,941) (99,242)
Net loss attributable to noncontrolling interests 904 918 1,334 1,767
Net loss attributable to Cooper-Standard Holdings Inc. USD (33,247) USD (63,611) USD (94,607) USD (97,475)
Weighted average shares outstanding
Basic 17,189,128 17,031,113 17,162,915 16,991,372
Diluted 17,189,128 17,031,113 17,162,915 16,991,372
Loss per share:
Basic USD (1.93) USD (3.73) USD (5.51) USD (5.74)
Diluted USD (1.93) USD (3.73) USD (5.51) USD (5.74)
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
June 30, 2022 December 31, 2021
(unaudited)
Assets
Current assets:
Cash and cash equivalents USD 250,458 USD 248,010
Accounts receivable, net 350,001 317,469
Tooling receivable, net 87,414 88,900
Inventories 183,568 158,075
Prepaid expenses 30,360 26,313
Income tax receivable and refundable credits 26,838 82,813
Other current assets 70,467 73,317
Total current assets 999,106 994,897
Property, plant and equipment, net 702,507 784,348
Operating lease right-of-use assets, net 102,407 111,052
Goodwill 142,213 142,282
Intangible assets, net 51,015 60,375
Other assets 143,134 133,539
Total assets USD 2,140,382 USD 2,226,493
Liabilities and Equity
Current liabilities:
Debt payable within one year USD 51,016 USD 56,111
Accounts payable 357,327 348,133
Payroll liabilities 94,646 69,353
Accrued liabilities 121,416 101,466
Current operating lease liabilities 21,177 22,552
Total current liabilities 645,582 597,615
Long-term debt 979,227 980,604
Pension benefits 120,438 129,880
Postretirement benefits other than pensions 42,525 43,498
Long-term operating lease liabilities 84,940 92,760
Other liabilities 45,957 50,776
Total liabilities 1,918,669 1,895,133
Equity:
Common stock 17 17
Additional paid-in capital 506,062 504,497
Retained (loss) earnings (69,054) 25,553
Accumulated other comprehensive loss (209,714) (205,184)
Total Cooper-Standard Holdings Inc. equity 227,311 324,883
Noncontrolling interests (5,598) 6,477
Total equity 221,713 331,360
Total liabilities and equity USD 2,140,382 USD 2,226,493
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollar amounts in thousands)
Six Months Ended June 30,
2022 2021
Operating Activities:
Net loss USD (95,941) USD (99,242)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 60,062 65,267
Amortization of intangibles 3,483 3,705
Gain on sale of fixed assets, net (33,391) -
Gain on sale of business, net - (696)
Impairment charges 458 841
Share-based compensation expense 1,625 3,002
Equity in losses of affiliates, net of dividends related to earnings 7,804 1,032
Deferred income taxes (5,096) (21,709)
Other 1,178 1,192
Changes in operating assets and liabilities 59,583 (14,126)
Net cash used in operating activities (235) (60,734)
Investing activities:
Capital expenditures (44,278) (55,599)
Proceeds from sale of fixed assets 52,633 3,000
Other 32 35
Net cash provided by (used in) investing activities 8,387 (52,564)
Financing activities:
Principal payments on long-term debt (2,536) (2,895)
(Decrease) increase in short-term debt, net (1,666) 14,811
Taxes withheld and paid on employees' share-based payment awards (526) (744)
Other 651 532
Net cash (used in) provided by financing activities (4,077) 11,704
Effects of exchange rate changes on cash, cash equivalents and restricted cash 7,103 4,179
Changes in cash, cash equivalents and restricted cash 11,178 (97,415)
Cash, cash equivalents and restricted cash at beginning of period 251,128 443,578
Cash, cash equivalents and restricted cash at end of period USD 262,306 USD 346,163
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:
Balance as of
June 30, 2022 December 31, 2021
Cash and cash equivalents USD 250,458 USD 248,010
Restricted cash included in other current assets 9,893 961
Restricted cash included in other assets 1,955 2,157
Total cash, cash equivalents and restricted cash USD 262,306 USD 251,128
Non-GAAP Measures
EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative of the Company's core financial activities. Net new business is a measure not recognized under U.S. GAAP which is a representation of potential incremental future revenue but which may not fully reflect all external impacts to future revenue. Management considers EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business to be key indicators of the Company's operating performance and believes that these and similar measures are widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are utilized in the calculation of the financial covenants and ratios contained in the Company's financing arrangements and management uses these measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income (loss) adjusted to reflect income tax expense (benefit), interest expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted net income (loss) is defined as net income (loss) adjusted to reflect certain items that management does not consider to be reflective of the Company's core operating performance. Adjusted basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Free cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company's ability to service and repay its debt. Net new business reflects anticipated sales from formally awarded programs, less lost business, discontinued programs and replacement programs and is based on IHS Markit forecast production volumes. The calculation of "net new business" does not reflect customer price reductions on existing programs and may be impacted by various assumptions embedded in the respective calculation, including actual vehicle production levels on new programs, foreign exchange rates and the timing of major program launches.
When analyzing the Company's operating performance, investors should use EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business as supplements to, and not as alternatives for, net income (loss), operating income, or any other performance measure derived in accordance with U.S. GAAP, and not as an alternative to cash flow from operating 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 limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company's results of operations as reported under U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, free cash flow and net new business differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies. In addition, in evaluating adjusted EBITDA and adjusted net income (loss), it should be noted that in the future the Company may incur expenses similar to or in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income (loss) should not be construed as an inference that the Company's future results will be unaffected by special items. Reconciliations of EBITDA, adjusted EBITDA, adjusted net income (loss) and free cash flow follow.
Reconciliation of Non-GAAP Measures
EBITDA and Adjusted EBITDA
(Unaudited)
(Dollar amounts in thousands)
The following table provides a reconciliation of EBITDA and adjusted EBITDA from net loss:
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Net loss attributable to Cooper-Standard Holdings Inc. USD (33,247) USD (63,611) USD (94,607) USD (97,475)
Income tax expense (benefit) 2,005 (17,459) 2,657 (16,523)
Interest expense, net of interest income 18,454 18,125 36,631 35,909
Depreciation and amortization 31,412 35,444 63,545 68,972
EBITDA USD 18,624 USD (27,501) USD 8,226 USD (9,117)
Restructuring charges 3,482 11,631 11,313 32,678
Deconsolidation of joint venture ^(1) - - 2,257 -
Impairment charges ^(2) 3 841 458 841
Loss (gain) on sale of business, net ^(3) - 195 - (696)
Gain on sale of fixed assets, net ^(4) (33,391) - (33,391) -
Lease termination costs ^(5) - 108 - 108
Indirect tax adjustments ^(6) 908 - 908 -
Adjusted EBITDA USD (10,374) USD (14,726) USD (10,229) USD 23,814
Sales USD 605,917 USD 533,185 USD 1,218,901 USD 1,202,152
Net loss margin (5.5) % (11.9) % (7.8) % (8.1) %
Adjusted EBITDA margin (1.7) % (2.8) % (0.8) % 2.0 % 1. Loss attributable to deconsolidation of a joint venture in the Asia Pacific region, which requiredadjustment to fair value. 2. Non-cash impairment charges in 2022 and 2021 related to idle assets in Europe. 3. During 2021, we recorded subsequent adjustments to the net gain on sale of business, which related to the2020 divestiture of our European rubber fluid transfer and specialty sealing businesses, as well as its Indianoperations. 4. In the first quarter of 2022, the Company signed a sale-leaseback agreement on one of its Europeanfacilities, and a gain was recognized in the second quarter of 2022. 5. Lease termination costs no longer recorded as restructuring charges in accordance with ASC 842. 6. Impact of prior period indirect tax adjustments.
Adjusted Net Loss and Adjusted Loss Per Share
(Unaudited)
(Dollar amounts in thousands except per share and share amounts)
The following table provides a reconciliation of net loss to adjusted net loss and the respective loss per share amounts:
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Net loss attributable to Cooper-Standard Holdings Inc. USD (33,247) USD (63,611) USD (94,607) USD (97,475)
Restructuring charges 3,482 11,631 11,313 32,678
Deconsolidation of joint venture ^(1) - - 2,257 -
Impairment charges ^(2) 3 841 458 841
Loss (gain) on sale of business, net ^(3) - 195 - (696)
Gain on sale of fixed assets, net ^(4) (33,391) - (33,391) -
Lease termination costs ^(5) - 108 - 108
Indirect tax adjustments ^(6) 908 - 908 -
Tax impact of adjusting items^ (7) 3,768 (269) 3,184 (1,044)
Adjusted net loss USD (58,477) USD (51,105) USD (109,878) USD (65,588)
Weighted average shares outstanding:
Basic 17,189,128 17,031,113 17,162,915 16,991,372
Diluted 17,189,128 17,031,113 17,162,915 16,991,372
Loss per share:
Basic USD (1.93) USD (3.73) USD (5.51) USD (5.74)
Diluted USD (1.93) USD (3.73) USD (5.51) USD (5.74)
Adjusted loss per share:
Basic USD (3.40) USD (3.00) USD (6.40) USD (3.86)
Diluted USD (3.40) USD (3.00) USD (6.40) USD (3.86) 1. Loss attributable to deconsolidation of a joint venture in the Asia Pacific region, which requiredadjustment to fair value. 2. Non-cash impairment charges in 2022 and 2021 related to idle assets in Europe. 3. During 2021, we recorded subsequent adjustments to the net gain on sale of business, which related to the2020 divestiture of our European rubber fluid transfer and specialty sealing businesses, as well as its Indianoperations. 4. In the first quarter of 2022, the Company signed a sale-leaseback agreement on one of its Europeanfacilities, and a gain was recognized in the second quarter of 2022. 5. Lease termination costs no longer recorded as restructuring charges in accordance with ASC 842. 6. Impact of prior period indirect tax adjustments. 7. Represents the elimination of the income tax impact of the above adjustments by calculating the incometax impact of these adjusting items using the appropriate tax rate for the jurisdiction where the charges wereincurred and other discrete tax expense.
Free Cash Flow
(Unaudited)
(Dollar amounts in thousands)
The following table defines free cash flow:
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Net cash provided by (used in) operating activities USD 11,978 USD (53,650) USD (235) USD (60,734)
Capital expenditures (11,964) (16,982) (44,278) (55,599)
Free cash flow USD 14 USD (70,632) USD (44,513) USD (116,333) Contact Details
Media Contact
Chris Andrews
+1 248-596-6217
candrews@cooperstandard.com
Contact for Analysts
Roger Hendriksen
+1 248-596-6465
roger.hendriksen@cooperstandard.com Company Website
http://www.cooperstandard.com/ News Source: News Direct
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