NORTHVILLE, Mich., May 3, 2023
/PRNewswire/ -- Cooper-Standard Holdings Inc. (NYSE: CPS)
today reported results for the first quarter 2023.
First Quarter 2023 Summary
- Sales totaled $682.5 million,
an increase of 11.3% compared to first quarter 2022
- Gross profit of $41.8 million,
an increase of 94.2% compared to first quarter 2022
- Net loss of $130.4 million or
$(7.57) per diluted share included
$81.9 million loss on refinancing and
extinguishment of debt
- Adjusted EBITDA totaled $12.5
million; adjusted EBITDA margin improved by approximately
180 basis points vs. first quarter 2022
- Quarter-end cash balance of $105.8
million; continuing solid total liquidity of $254.8 million
"We made good progress in our inflation recovery initiatives and
commercial negotiations with our customers during the quarter,"
said Jeffrey Edwards, chairman and
CEO, Cooper Standard. "Recognizing the value we provide them, our
customers have been supportive. We expect additional inflation
recovery, price adjustments and increasing production volume will
drive improved financial results in the remaining quarters of the
year."
Consolidated Results
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
|
(dollar amounts in
millions except per share
amounts)
|
Sales
|
$
682.5
|
|
$
613.0
|
Net loss
|
$
(130.4)
|
|
$
(61.4)
|
Adjusted net
loss
|
$
(46.2)
|
|
$
(51.4)
|
Loss per diluted
share
|
$
(7.57)
|
|
$
(3.58)
|
Adjusted loss per
diluted share
|
$
(2.68)
|
|
$
(3.00)
|
Adjusted
EBITDA
|
$
12.5
|
|
$
0.1
|
The year-over-year increase in first 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 first quarter 2023 was $130.4 million, including $81.9 million in losses related to refinancing
and extinguishment of debt, restructuring charges of $2.4 million and other special items. Net loss
for the first quarter 2022 was $61.4
million, including restructuring charges of $7.8 million and other special items. Adjusted
net loss, which excludes refinancing costs, restructuring, other
special items and their related tax impact, was $46.2 million in the first quarter 2023 compared
to adjusted net loss of $51.4
million in the first quarter of 2022. The
year-over-year improvement was primarily due to improved volume and
mix and favorable price adjustments, partially offset by higher
interest expense and continuing inflationary pressure, including
higher labor and energy costs.
Adjusted EBITDA for the first quarter of 2023 was $12.5 million compared to $0.1 million in the first quarter of 2022.
The year-over-year improvement was primarily due to improved volume
and mix, favorable price adjustments, and savings generated from
lean manufacturing and purchasing initiatives. These were
partially offset by continuing inflationary pressures, including
higher labor and energy costs, and unfavorable foreign
exchange.
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 and capitalize on positive trends associated with
electric vehicles. During the first quarter of 2023, the
Company received net new business awards on electric vehicle
platforms representing approximately $18
million in incremental anticipated future annualized
sales.
Segment Results of Operations
Sales
|
Three Months Ended
March 31,
|
|
|
Variance Due
To:
|
|
2023
|
|
2022
|
|
Change
|
|
|
Volume /
Mix*
|
|
Foreign
Exchange
|
|
|
(dollar amounts in
thousands)
|
Sales to external
customers
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$
365,127
|
|
$
321,894
|
|
$
43,233
|
|
|
$
45,404
|
|
$
(2,171)
|
|
Europe
|
161,855
|
|
131,414
|
|
30,441
|
|
|
37,671
|
|
(7,230)
|
|
Asia
Pacific
|
94,785
|
|
103,753
|
|
(8,968)
|
|
|
(1,957)
|
|
(7,011)
|
|
South
America
|
28,841
|
|
21,519
|
|
7,322
|
|
|
7,311
|
|
11
|
|
Total
Automotive
|
650,608
|
|
578,580
|
|
72,028
|
|
|
88,429
|
|
(16,401)
|
|
Corporate,
eliminations and other
|
31,850
|
|
34,404
|
|
(2,554)
|
|
|
(2,019)
|
|
(535)
|
|
Consolidated
sales
|
$
682,458
|
|
$
612,984
|
|
$
69,474
|
|
|
$
86,410
|
|
$
(16,936)
|
|
|
* Net
of customer price adjustments
|
- Volume and mix, net of customer price adjustments including
recoveries, was mainly driven by vehicle production volume
increases due to the stabilization of the supply environment.
- The impact of foreign currency exchange was primarily related
to the Euro, Chinese Renminbi and Canadian Dollar.
Adjusted EBITDA
|
Three Months Ended
March 31,
|
|
|
Variance Due
To:
|
|
2023
|
|
2022
|
|
Change
|
|
|
Volume/
Mix*
|
|
Foreign
Exchange
|
|
Cost
(Increases)/
Decreases
|
|
(dollar amounts in
thousands)
|
Segment adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$
25,874
|
|
$
17,496
|
|
$
8,378
|
|
|
$
19,798
|
|
$
(3,694)
|
|
$
(7,726)
|
Europe
|
(12,395)
|
|
(14,657)
|
|
2,262
|
|
|
15,443
|
|
(1,678)
|
|
(11,503)
|
Asia
Pacific
|
1,690
|
|
(742)
|
|
2,432
|
|
|
(216)
|
|
(1,758)
|
|
4,406
|
South
America
|
1,928
|
|
(409)
|
|
2,337
|
|
|
3,317
|
|
(344)
|
|
(636)
|
Total
Automotive
|
17,097
|
|
1,688
|
|
15,409
|
|
|
38,342
|
|
(7,474)
|
|
(15,459)
|
Corporate,
eliminations and other
|
(4,640)
|
|
(1,543)
|
|
(3,097)
|
|
|
1,075
|
|
(198)
|
|
(3,974)
|
Consolidated adjusted
EBITDA
|
$
12,457
|
|
$
145
|
|
$
12,312
|
|
|
$
39,417
|
|
$
(7,672)
|
|
$
(19,433)
|
|
* Net of
customer price adjustments
|
- Volume and mix, net of customer price adjustments including
recoveries, was driven by vehicle production volume increases due
to the stabilization of the supply environment.
- The impact of foreign currency exchange was primarily related
to the Mexican Peso, Chinese Renminbi and Euro.
- The Cost (Increases) / Decreases category above
includes:
-
- Commodity cost and inflationary economics; and
- Manufacturing and purchasing savings through lean
initiatives.
Cash and Liquidity
As of March 31, 2023, Cooper
Standard had cash and cash equivalents totaling $105.8 million. Total liquidity, including
availability under the Company's amended senior asset-based
revolving credit facility, was $254.8
million at the end of the first quarter 2023.
Based on current expectations for light vehicle production and
customer demand for our products, the Company expects its current
solid liquidity, including 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
Industry projections for global light vehicle production
anticipate continued modest growth through the remainder of the
year. The Company expects to successfully conclude commercial
negotiations to drive further inflation recovery and positive,
sustainable price adjustments, which would boost top line growth
and margin expansion in the final three quarters of the year.
Company management anticipates providing an update to full-year
guidance in conjunction with the release of second quarter
results.
Conference Call Details
Cooper Standard management will host a conference call and
webcast on May 4, 2023 at 9:00 a.m.
ET to discuss its first quarter 2023 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://edge.media-server.com/mmc/p/9dmawye4.
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/BId7a0aa41b3f040dbb335a5e38b74961f.
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 23,000 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
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
Contact for
Analysts:
|
Contact for
Media:
|
Roger
Hendriksen
|
Chris
Andrews
|
Cooper
Standard
|
Cooper
Standard
|
(248)
596-6465
|
(248)
596-6217
|
roger.hendriksen@cooperstandard.com
|
candrews@cooperstandard.com
|
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
March 31,
|
|
2023
|
|
2022
|
Sales
|
$
682,458
|
|
$
612,984
|
Cost of products
sold
|
640,630
|
|
591,442
|
Gross
profit
|
41,828
|
|
21,542
|
Selling,
administration & engineering expenses
|
52,089
|
|
51,904
|
Amortization of
intangibles
|
1,807
|
|
1,746
|
Restructuring
charges
|
2,379
|
|
7,831
|
Impairment
charges
|
—
|
|
455
|
Operating
loss
|
(14,447)
|
|
(40,394)
|
Interest expense, net
of interest income
|
(30,220)
|
|
(18,177)
|
Equity in losses of
affiliates
|
(198)
|
|
(1,356)
|
Loss on refinancing and
extinguishment of debt
|
(81,885)
|
|
—
|
Other expense,
net
|
(4,004)
|
|
(1,211)
|
Loss before income
taxes
|
(130,754)
|
|
(61,138)
|
Income tax
expense
|
358
|
|
652
|
Net loss
|
(131,112)
|
|
(61,790)
|
Net loss attributable
to noncontrolling interests
|
745
|
|
430
|
Net loss attributable
to Cooper-Standard Holdings Inc.
|
$
(130,367)
|
|
$
(61,360)
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
Basic
|
17,229,423
|
|
17,136,411
|
Diluted
|
17,229,423
|
|
17,136,411
|
|
|
|
|
Loss per
share:
|
|
|
|
Basic
|
$
(7.57)
|
|
$
(3.58)
|
Diluted
|
$
(7.57)
|
|
$
(3.58)
|
COOPER-STANDARD
HOLDINGS INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollar amounts in
thousands)
|
|
March 31,
2023
|
|
December 31,
2022
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
105,840
|
|
$
186,875
|
Accounts receivable,
net
|
393,717
|
|
358,700
|
Tooling receivable,
net
|
100,668
|
|
95,965
|
Inventories
|
172,491
|
|
157,756
|
Prepaid
expenses
|
28,295
|
|
31,170
|
Income tax receivable
and refundable credits
|
13,670
|
|
13,668
|
Other current
assets
|
123,099
|
|
101,515
|
Total current
assets
|
937,780
|
|
945,649
|
Property, plant and
equipment, net
|
638,473
|
|
642,860
|
Operating lease
right-of-use assets, net
|
91,990
|
|
94,571
|
Goodwill
|
142,024
|
|
142,023
|
Intangible assets,
net
|
45,883
|
|
47,641
|
Other assets
|
86,917
|
|
90,785
|
Total
assets
|
$
1,943,067
|
|
$
1,963,529
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Debt payable within
one year
|
$
52,813
|
|
$
54,130
|
Accounts
payable
|
390,861
|
|
338,210
|
Payroll
liabilities
|
120,158
|
|
99,029
|
Accrued
liabilities
|
146,292
|
|
119,463
|
Current operating
lease liabilities
|
20,132
|
|
20,786
|
Total current
liabilities
|
730,256
|
|
631,618
|
Long-term
debt
|
996,822
|
|
982,054
|
Pension
benefits
|
100,324
|
|
98,481
|
Postretirement benefits
other than pensions
|
30,909
|
|
31,014
|
Long-term operating
lease liabilities
|
75,586
|
|
77,617
|
Other
liabilities
|
36,000
|
|
41,553
|
Total
liabilities
|
1,969,897
|
|
1,862,337
|
Equity:
|
|
|
|
Common stock, $0.001
par value, 190,000,000 shares authorized;
19,204,327 shares issued and 17,138,518 shares outstanding as
of
March 31, 2023, and 19,173,838 shares issued and 17,108,029
outstanding as of December 31, 2022
|
17
|
|
17
|
Additional paid-in
capital
|
508,238
|
|
507,498
|
Retained
deficit
|
(320,198)
|
|
(189,831)
|
Accumulated other
comprehensive loss
|
(207,598)
|
|
(209,971)
|
Total Cooper-Standard
Holdings Inc. equity
|
(19,541)
|
|
107,713
|
Noncontrolling
interests
|
(7,289)
|
|
(6,521)
|
Total
equity
|
(26,830)
|
|
101,192
|
Total liabilities and
equity
|
$
1,943,067
|
|
$
1,963,529
|
COOPER-STANDARD
HOLDINGS INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(Dollar amounts in
thousands)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Operating
Activities:
|
|
|
|
Net loss
|
$
(131,112)
|
|
$
(61,790)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation
|
26,175
|
|
30,387
|
Amortization of
intangibles
|
1,807
|
|
1,746
|
Impairment
charges
|
—
|
|
455
|
Share-based
compensation expense
|
1,467
|
|
584
|
Equity in losses of
affiliates, net of dividends related to earnings
|
198
|
|
1,356
|
Loss on refinancing
and extinguishment of debt
|
81,885
|
|
—
|
Deferred income
taxes
|
367
|
|
(511)
|
Other
|
1,206
|
|
509
|
Changes in operating
assets and liabilities
|
48,386
|
|
15,051
|
Net cash provided by
(used in) operating activities
|
30,379
|
|
(12,213)
|
Investing
activities:
|
|
|
|
Capital
expenditures
|
(29,263)
|
|
(32,314)
|
Proceeds from deferred
sale of fixed assets
|
—
|
|
50,008
|
Other
|
232
|
|
2,377
|
Net cash (used in)
provided by investing activities
|
(29,031)
|
|
20,071
|
Financing
activities:
|
|
|
|
Proceeds from issuance
of long-term debt, net of debt issuance costs
|
927,450
|
|
—
|
Repayment and
refinancing of long-term debt
|
(927,046)
|
|
—
|
Principal payments on
long-term debt
|
(755)
|
|
(1,429)
|
Decrease in short-term
debt, net
|
(1,312)
|
|
(1,667)
|
Debt issuance costs
and other fees
|
(73,965)
|
|
—
|
Taxes withheld and
paid on employees' share-based payment awards
|
(195)
|
|
(523)
|
Other
|
163
|
|
646
|
Net cash used in
financing activities
|
(75,660)
|
|
(2,973)
|
Effects of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(2,850)
|
|
5,123
|
Changes in cash, cash
equivalents and restricted cash
|
(77,162)
|
|
10,008
|
Cash, cash equivalents
and restricted cash at beginning of period
|
192,807
|
|
251,128
|
Cash, cash equivalents
and restricted cash at end of period
|
$
115,645
|
|
$
261,136
|
|
|
|
|
Reconciliation of cash,
cash equivalents and restricted cash to the condensed consolidated
balance sheet:
|
|
Balance as
of
|
|
March 31,
2023
|
|
December 31,
2022
|
Cash and cash
equivalents
|
$
105,840
|
|
$
186,875
|
Restricted cash
included in other current assets
|
8,912
|
|
4,650
|
Restricted cash
included in other assets
|
893
|
|
1,282
|
Total cash, cash
equivalents and restricted cash
|
$
115,645
|
|
$
192,807
|
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 S&P
Global (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
March 31,
|
|
2023
|
|
2022
|
Net loss attributable
to Cooper-Standard Holdings Inc.
|
$ (130,367)
|
|
$
(61,360)
|
Income tax
expense
|
358
|
|
652
|
Interest expense, net
of interest income
|
30,220
|
|
18,177
|
Depreciation and
amortization
|
27,982
|
|
32,133
|
EBITDA
|
$
(71,807)
|
|
$
(10,398)
|
Restructuring
charges
|
2,379
|
|
7,831
|
Deconsolidation of
joint venture (1)
|
—
|
|
2,257
|
Impairment charges
(2)
|
—
|
|
455
|
Loss on refinancing and
extinguishment of debt (3)
|
81,885
|
|
—
|
Adjusted
EBITDA
|
$
12,457
|
|
$
145
|
|
|
|
|
Sales
|
$
682,458
|
|
$
612,984
|
Net loss
margin
|
(19.1) %
|
|
(10.0) %
|
Adjusted EBITDA
margin
|
1.8 %
|
|
— %
|
|
|
(1)
|
Loss attributable to
deconsolidation of a joint venture in the Asia Pacific region,
which required adjustment to fair value in the three months ended
March 31, 2022.
|
(2)
|
Non-cash impairment
charges in the three months ended March 31, 2022 related to idle
assets in Europe.
|
(3)
|
Loss on refinancing and
extinguishment of debt relating to the previously disclosed
refinancing transactions during the three months ended March 31,
2023.
|
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
March 31,
|
|
2023
|
|
2022
|
Net loss attributable
to Cooper-Standard Holdings Inc.
|
$
(130,367)
|
|
$
(61,360)
|
Restructuring
charges
|
2,379
|
|
7,831
|
Deconsolidation of
joint venture (1)
|
—
|
|
2,257
|
Impairment charges
(2)
|
—
|
|
455
|
Loss on refinancing and
extinguishment of debt (3)
|
81,885
|
|
—
|
Tax impact of adjusting
items (4)
|
(71)
|
|
(584)
|
Adjusted net
loss
|
$
(46,174)
|
|
$
(51,401)
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
Basic
|
17,229,423
|
|
17,136,411
|
Diluted
|
17,229,423
|
|
17,136,411
|
|
|
|
|
Loss per
share:
|
|
|
|
Basic
|
$
(7.57)
|
|
$
(3.58)
|
Diluted
|
$
(7.57)
|
|
$
(3.58)
|
|
|
|
|
Adjusted loss per
share:
|
|
|
|
Basic
|
$
(2.68)
|
|
$
(3.00)
|
Diluted
|
$
(2.68)
|
|
$
(3.00)
|
|
|
(1)
|
Loss attributable to
deconsolidation of a joint venture in the Asia Pacific region,
which required adjustment to fair value in the three months ended
March 31, 2022.
|
(2)
|
Non-cash impairment
charges in the three months ended March 31, 2022 related to idle
assets in Europe.
|
(3)
|
Loss on refinancing and
extinguishment of debt relating to the previously disclosed
refinancing transactions during the three months ended March 31,
2023.
|
(4)
|
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
March 31,
|
|
2023
|
|
2022
|
Net cash provided by
(used in) operating activities
|
$
30,379
|
|
$
(12,213)
|
Capital
expenditures
|
(29,263)
|
|
(32,314)
|
Free cash
flow
|
$
1,116
|
|
$
(44,527)
|
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SOURCE Cooper Standard