DJ Cooper Standard Reports Strong Sales Growth and Margin Improvement in Third Quarter 2022
Cooper Standard Cooper Standard Reports Strong Sales Growth and Margin Improvement in Third Quarter 2022 01-Nov-2022 / 22:57 CET/CEST
-----------------------------------------------------------------------------------------------------------------------
Cooper-Standard Holdings Inc. (NYSE: CPS) today reported results for the third quarter 2022.
Third Quarter 2022 Summary . Sales totaled USD657.2 million, an increase of 24.8% compared to third quarter 2021 . Net loss narrowed to USD32.7 million or USD(1.90) per diluted share compared to a net loss of USD123.2 millionor USD(7.20) per diluted share in the third quarter 2021 . Adjusted EBITDA totaled USD20.5 million; adjusted EBITDA margin improved by approximately 950 basis pointsvs. third quarter 2021 . Quarter-end cash balance of USD231 million; continuing strong total liquidity of USD387 million . Net new business awards on electric vehicles of USD27 million in the quarter and USD72 million year to date;Total net new business awards of USD66 million in the quarter and USD124 million year to date
"We were able to leverage our improving cost structure, enhanced commercial agreements and higher year-over-year industry production levels to drive positive results in the quarter," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "OEM production schedules remain erratic, however, with actual volumes still falling well short of industry forecasts and our customers' own releases. Despite this continuing challenge, we expect to deliver further operational improvements and margin expansion through the remainder of the year."
Consolidated Results
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
(dollar amounts in millions except per share amounts)
Sales USD 657.2 USD 526.7 USD 1,876.1 USD 1,728.8
Net loss USD (32.7) USD (123.2) USD (127.3) USD (220.6)
Adjusted net loss USD (29.5) USD (106.4) USD (139.3) USD (172.0)
Loss per diluted share USD (1.90) USD (7.20) USD (7.41) USD (12.96)
Adjusted loss per diluted share USD (1.71) USD (6.23) USD (8.11) USD (10.10)
Adjusted EBITDA USD 20.5 USD (33.9) USD 10.3 USD (10.0)
The year-over-year increase in third 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.
Net loss for the third quarter 2022 was USD(32.7) million, including restructuring charges of USD1.7 million and other special items. Net loss for the third quarter 2021 was USD(123.2) million, including restructuring charges of USD1.6 million and other special items. Adjusted net loss, which excludes restructuring, other special items and their related tax impact, was USD(29.5) million in the third quarter 2022 compared to USD(106.4) million in the third quarter of 2021. The year-over-year improvement was primarily due to improved volume and mix, lower income tax expense and improved operating efficiencies. These were partially offset by continuing material cost inflation net of realized customer recoveries, higher labor costs and other inflationary headwinds.
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 third quarter of 2022, the Company received net new business awards representing approximately USD66 million in incremental anticipated future annualized sales, including USD27 million of awards on electric vehicle platforms. Year to date net new business awards totaled USD124 million, including USD72 million on electric vehicle platforms. Since the beginning of 2020, the Company has received net new business awards on electric vehicle platforms totaling over USD275 million in expected incremental annualized sales.
Segment Results of Operations
Sales
Three Months Ended September Variance Due To:
30,
2022 2021 Change Volume / Mix* Foreign Exchange Deconsolidation
(dollar amounts in thousands)
Sales to external customers
North America USD 351,011 USD 270,592 USD 80,419 USD 80,840 USD (421) USD -
Europe 113,670 98,682 14,988 34,726 (19,738) -
Asia Pacific 129,493 109,526 19,967 35,932 (9,818) (6,147)
South America 27,073 15,981 11,092 11,129 (37) -
Total Automotive 621,247 494,781 126,466 162,627 (30,014) (6,147)
Corporate, eliminations and other 35,906 31,909 3,997 6,097 (2,100) -
Consolidated sales USD 657,153 USD 526,690 USD 130,463 USD 168,724 USD (32,114) USD (6,147)
^* Net of customer price adjustments . Volume and mix, net of customer price adjustments including recoveries, was driven by vehicle productionvolume increases due to the lessening impact of semiconductor-related supply issues. . The impact of foreign currency exchange was primarily related to the Euro, Chinese Renminbi and KoreanWon.
Adjusted EBITDA
Three Months Ended September Variance Due To:
30,
2022 2021 Change Volume/ Foreign Cost (Increases)/
Mix* Exchange Decreases**
(dollar amounts in thousands)
Segment adjusted EBITDA
North America USD 19,401 USD 8,817 USD 10,584 USD 29,273 USD (1,355) USD (17,334)
Europe (10,905) (25,112) 14,207 16,942 1,205 (3,940)
Asia Pacific 7,523 (14,274) 21,797 10,612 (10) 11,195
South America 766 (3,422) 4,188 2,750 1,060 378
Total Automotive 16,785 (33,991) 50,776 59,577 900 (9,701)
Corporate, eliminations and 3,720 132 3,588 9,015 28 (5,455)
other
Consolidated adjusted EBITDA USD 20,505 USD (33,859) USD 54,364 USD 68,592 USD 928 USD (15,156)
^* Net of customer price adjustments
^** Net of deconsolidation . Volume and mix, net of customer price adjustments including recoveries, was driven by vehicle productionvolume increases due to a lessening impact on customer production schedules for semiconductor-related supply issuesin the current year period. . The impact of foreign currency exchange was primarily related to the Euro and Brazilian Real, partiallyoffset by the Mexican Peso. . 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 September 30, 2022, Cooper Standard had cash and cash equivalents totaling USD231.2 million. Total liquidity, including availability under the Company's amended senior asset-based revolving credit facility, was USD386.9 million at the end of the third 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. The Company's ability to meet its debt service requirements for the next twelve months is contingent upon its ability to refinance its term loan facility. The Company continues its discussions with certain investors with respect to potential refinancing alternatives. While discussions are ongoing, the Company has not reached an agreement with respect to such a transaction for refinancing its capital structure and there can be no assurances that such an agreement will be reached in the future.
Outlook
Industry projections for global light vehicle production growth, while still positive, have moderated over the past three months. Based on these industry projections, macroeconomic conditions, current customer production schedules and the Company's results to date, the Company is adjusting its 2022 full year guidance as follows:
2022 Guidance^1
Previous Current
USD USD
Sales
2.5 - USD2.7 billion 2.45 - USD2.55 billion
USD USD
Adjusted EBITDA^2
50 - USD60 million 45 - USD50 million
USD USD
Capital Expenditures
85 - USD95 million 80 - USD90 million
USD USD
Cash Restructuring
20 - USD30 million 20 - USD30 million
Net Cash Taxes / (Refund) USD(50) - USD(55) million USD(50) - USD(55) million
Key Light Vehicle Production Assumptions
North America 14.7 million 14.5 million
Europe 16.5 million 15.6 million
Greater China 24.5 million 26.4 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 September 2022 S&P Global (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 November 2, 2022 at 9:00 a.m. ET to discuss its third quarter 2022 results, provide a general business update and respond to investor questions. Investors and other interested parties may listen to the call by accessing the online, real-time webcast at https:// www.ir.cooperstandard.com/events/event-details/third-quarter-2022-earnings-call.
Investors, analysts and other representatives of the investment community who wish to participate by phone in the live conference and have the opportunity to ask questions during Q&A will need to pre-register for the call by visiting https://register.vevent.com/register/BI8e7acde9b14a4ad997eeb525af0c3691. Once registration is completed, participants will be provided with a dial-in number and a personalized conference code to access the call. Participants should dial in at least five minutes prior to the start of the call.
A replay of the webcast will be available on the investors' portion of the Cooper Standard website (http:// www.ir.cooperstandard.com) shortly after the live event.
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 September 30, Nine Months Ended September
30,
2022 2021 2022 2021
Sales USD 657,153 USD 526,690 USD 1,876,054 USD 1,728,842
Cost of products sold 618,594 534,817 1,800,577 1,669,610
Gross profit (loss) 38,559 (8,127) 75,477 59,232
Selling, administration & engineering expenses 44,847 60,367 149,033 168,506
Gain on sale of business, net - - - (696)
Gain on sale of fixed assets, net - - (33,391) -
Amortization of intangibles 1,693 1,819 5,176 5,524
Restructuring charges 1,701 1,573 13,014 34,251
Impairment charges 379 1,006 837 1,847
Operating loss (10,061) (72,892) (59,192) (150,200)
Interest expense, net of interest income (20,747) (18,243) (57,378) (54,152)
Equity in (losses) earnings of affiliates (3,391) (1,114) (8,193) 65
Other income (expense), net 146 (494) (2,574) (4,221)
Loss before income taxes (34,053) (92,743) (127,337) (208,508)
Income tax (benefit) expense (833) 32,121 1,824 15,598
Net loss (33,220) (124,864) (129,161) (224,106)
Net loss attributable to noncontrolling interests 534 1,691 1,868 3,458
Net loss attributable to Cooper-Standard Holdings Inc. USD (32,686) USD (123,173) USD (127,293) USD (220,648)
Weighted average shares outstanding
Basic 17,218,165 17,097,766 17,181,534 17,027,226
Diluted 17,218,165 17,097,766 17,181,534 17,027,226
Loss per share:
Basic USD (1.90) USD (7.20) USD (7.41) USD (12.96)
Diluted USD (1.90) USD (7.20) USD (7.41) USD (12.96)
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
September 30, 2022 December 31, 2021
(unaudited)
Assets
Current assets:
Cash and cash equivalents USD 231,177 USD 248,010
Accounts receivable, net 366,824 317,469
Tooling receivable, net 93,832 88,900
Inventories 195,003 158,075
Prepaid expenses 31,348 26,313
Income tax receivable and refundable credits 12,474 82,813
Other current assets 74,525 73,317
Total current assets 1,005,183 994,897
Property, plant and equipment, net 667,117 784,348
Operating lease right-of-use assets, net 95,803 111,052
Goodwill 141,958 142,282
Intangible assets, net 48,413 60,375
Other assets 143,727 133,539
Total assets USD 2,102,201 USD 2,226,493
Liabilities and Equity
Current liabilities:
Debt payable within one year USD 48,890 USD 56,111
Accounts payable 373,481 348,133
Payroll liabilities 94,712 69,353
Accrued liabilities 130,257 101,466
Current operating lease liabilities 20,172 22,552
Total current liabilities 667,512 597,615
Long-term debt 978,435 980,604
Pension benefits 113,521 129,880
Postretirement benefits other than pensions 40,960 43,498
Long-term operating lease liabilities 79,222 92,760
Other liabilities 47,289 50,776
Total liabilities 1,926,939 1,895,133
Equity:
Common stock 17 17
Additional paid-in capital 506,971 504,497
Retained (loss) earnings (101,740) 25,553
Accumulated other comprehensive loss (224,203) (205,184)
Total Cooper-Standard Holdings Inc. equity 181,045 324,883
Noncontrolling interests (5,783) 6,477
Total equity 175,262 331,360
Total liabilities and equity USD 2,102,201 USD 2,226,493
COOPER-STANDARD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollar amounts in thousands)
Nine Months Ended September 30,
2022 2021
Operating Activities:
Net loss USD (129,161) USD (224,106)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 88,997 99,497
Amortization of intangibles 5,176 5,524
Gain on sale of fixed assets, net (33,391) -
Gain on sale of business, net - (696)
Impairment charges 837 1,847
Share-based compensation expense 2,593 4,781
Equity in losses of affiliates, net of dividends related to earnings 11,195 2,146
Deferred income taxes (5,478) 9,785
Other 2,383 2,219
Changes in operating assets and liabilities 46,489 (12,485)
Net cash used in operating activities (10,360) (111,488)
Investing activities:
Capital expenditures (58,491) (75,965)
Proceeds from sale of fixed assets 52,956 3,095
Other 167 35
Net cash used in investing activities (5,368) (72,835)
Financing activities:
Principal payments on long-term debt (3,786) (4,227)
Decrease in short-term debt, net (977) (597)
Taxes withheld and paid on employees' share-based payment awards (607) (777)
Other (688) 884
Net cash used in financing activities (6,058) (4,717)
Effects of exchange rate changes on cash, cash equivalents and restricted cash 9,296 7,853
Changes in cash, cash equivalents and restricted cash (12,490) (181,187)
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 238,638 USD 262,391
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:
Balance as of
September 30, 2022 December 31, 2021
Cash and cash equivalents USD 231,177 USD 248,010
Restricted cash included in other current assets 5,846 961
Restricted cash included in other assets 1,615 2,157
Total cash, cash equivalents and restricted cash USD 238,638 USD 251,128
Non-GAAP Measures
EBITDA, adjusted EBITDA, adjusted EBITDA margin, 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 EBITDA margin, 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 EBITDA margin is defined as adjusted EBITDA as a percentage of sales. 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 EBITDA margin, 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 EBITDA margin, 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 EBITDA margin, 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 September 30, Nine Months Ended September
30,
2022 2021 2022 2021
Net loss attributable to Cooper-Standard Holdings USD (32,686) USD (123,173) USD (127,293) USD (220,648)
Inc.
Income tax (benefit) expense (833) 32,121 1,824 15,598
Interest expense, net of interest income 20,747 18,243 57,378 54,152
Depreciation and amortization 30,628 36,049 94,173 105,021
EBITDA USD 17,856 USD (36,760) USD 26,082 USD (45,877)
Restructuring charges 1,701 1,573 13,014 34,251
Deconsolidation of joint venture ^(1) - - 2,257 -
Impairment charges ^(2) 379 1,006 837 1,847
Loss (gain) on sale of business, net ^(3) - - - (696)
Gain on sale of fixed assets, net ^(4) - - (33,391) -
Lease termination costs ^(5) - 322 - 430
Indirect tax and customs adjustments ^(6) 569 - 1,477 -
Adjusted EBITDA USD 20,505 USD (33,859) USD 10,276 USD (10,045)
Sales USD 657,153 USD 526,690 USD 1,876,054 USD 1,728,842
Net loss margin (5.0) % (23.4) % (6.8) % (12.8) %
Adjusted EBITDA margin 3.1 % (6.4) % 0.5 % (0.6) %
(1) Loss attributable to deconsolidation of a joint venture in the Asia Pacific region, which required adjustment 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 the 2020 divestiture of our European rubber fluid transfer and specialty sealing businesses, as well as its Indian operations.
(4) In the first quarter of 2022, the Company signed a sale-leaseback agreement on one of its European facilities, 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 and customs 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 September 30, Nine Months Ended September
30,
2022 2021 2022 2021
Net loss attributable to Cooper-Standard Holdings Inc. USD (32,686) USD (123,173) USD (127,293) USD (220,648)
Restructuring charges 1,701 1,573 13,014 34,251
Deconsolidation of joint venture ^(1) - - 2,257 -
Impairment charges ^(2) 379 1,006 837 1,847
Loss (gain) on sale of business, net ^(3) - - - (696)
Gain on sale of fixed assets, net ^(4) - - (33,391) -
Lease termination costs ^(5) - 322 - 430
Indirect tax and customs adjustments ^(6) 569 - 1,477 -
Deferred tax valuation allowance ^(7) - 13,278 - 13,278
Tax impact of adjusting items^ (8) 581 560 3,765 (484)
Adjusted net loss USD (29,456) USD (106,434) USD (139,334) USD (172,022)
Weighted average shares outstanding:
Basic 17,218,165 17,097,766 17,181,534 17,027,226
Diluted 17,218,165 17,097,766 17,181,534 17,027,226
Loss per share:
Basic USD (1.90) USD (7.20) USD (7.41) USD (12.96)
Diluted USD (1.90) USD (7.20) USD (7.41) USD (12.96)
Adjusted loss per share:
Basic USD (1.71) USD (6.23) USD (8.11) USD (10.10)
Diluted USD (1.71) USD (6.23) USD (8.11) USD (10.10)
(1) Loss attributable to deconsolidation of a joint venture in the Asia Pacific region, which required adjustment 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 the 2020 divestiture of our European rubber fluid transfer and specialty sealing businesses, as well as its Indian operations.
(4) In the first quarter of 2022, the Company signed a sale-leaseback agreement on one of its European facilities, 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 and customs adjustments.
(7) Relates to the initial recognition of our valuation allowance on net deferred tax assets in the U.S.
(8) Represents the elimination of the income tax impact of the above adjustments by calculating the income tax impact of these adjusting items using the appropriate tax rate for the jurisdiction where the charges were incurred and other discrete tax expense.
Free Cash Flow
(Unaudited)
(Dollar amounts in thousands)
The following table defines free cash flow:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Net cash provided by (used in) operating activities USD (10,125) USD (50,754) USD (10,360) USD (111,488)
Capital expenditures (14,213) (20,366) (58,491) (75,965)
Free cash flow USD (24,338) USD (71,120) USD (68,851) USD (187,453) Contact Details
Contact for Media:
Chris Andrews
+1 248-596-6217
candrews@cooperstandard.com
Contact for Analysts:
Roger Hendriksen
+1 248-596-6465
roger.hendriksen@cooperstandard.com News Source: News Direct
-----------------------------------------------------------------------------------------------------------------------
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
End of Announcement - EQS News Service
1476837 01-Nov-2022
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1476837&application_name=news
(END) Dow Jones Newswires
November 01, 2022 17:57 ET (21:57 GMT)
