GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Commercial Vehicle Group Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:
10qk

10qk

18 followers
Commercial Vehicle Group Inc. (CVGI) filed Quarterly Report for the period ended 2010-06-30.

Commercial Vehicle Group Inc. has a market cap of $290.73 million; its shares were traded at around $10.27 with and P/S ratio of 0.63. CVGI is in the portfolios of Pioneer Investments, Arnold Schneider of Schneider Capital Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenues. Revenues increased approximately $38.8 million, or 37.5%, to $142.3 million in the three months ended June 30, 2010 from $103.5 million in the three months ended June 30, 2009. This increase resulted primarily from an increase in our heavy truck, construction and military markets. Our North American end market revenues increased by approximately $20.7 million, including a 42.1% improvement in the North American class 8 heavy truck production. In addition, our European and Asian end markets increased by approximately $19.2 million primarily as a result of a general improvement in production levels of our global construction market. Translation of our foreign operations into U.S. dollars decreased our revenues by approximately $1.1 million over the prior year period.

Revenues. Revenues increased approximately $76.8 million, or 36.2%, to $288.8 million in the six months ended June 30, 2010 from $212.0 million in the six months ended June 30, 2009. This increase resulted primarily from an increase in our heavy truck, construction and military markets. Our North American end market revenues increased by approximately $44.6 million, including a 31.8% improvement in the North American class 8 heavy truck production. In addition, our European and Asian end markets increased by approximately $30.0 million primarily as a result of a general improvement in production levels of our global construction market. Translation of our foreign operations into U.S. dollars increased our revenues by approximately $2.1 million over the prior year period.

As of June 30, 2010, we had an aggregate of $164.8 million of outstanding indebtedness excluding $1.7 million of outstanding letters of credit under various financing arrangements and an additional $35.8 million of borrowing capacity under our Loan and Security Agreement, which is subject to a $10.0 million availability block. The indebtedness consisted of the following:

Credit Agreement On January 7, 2009, we and certain of our direct and indirect U.S. subsidiaries, as borrowers (the borrowers), entered into a Loan and Security Agreement (the Loan and Security Agreement) with Bank of America, N.A., as agent and lender, which, as amended, provides for a three-year asset-based revolving credit facility with an aggregate principal amount of up to $37.5 million (after giving effect to a second amendment to our Loan and Security Agreement entered into on August 4, 2009), which is subject to an availability block of $10.0 million, until we deliver a compliance certificate for any fiscal quarter ending June 30, 2010 or thereafter demonstrating a fixed charge coverage ratio of at least 1.1 to 1.0 for the most recent four fiscal quarters, at which time the availability block will be $7.5 million at all times while the fixed charge coverage ratio is at least 1.1 to 1.0 and certain borrowing base limitations are met. Up to an aggregate of $10.0 million is available to the borrowers for the issuance of letters of credit, which reduces availability under the revolving credit facility.

As of June 30, 2010, we did not have borrowings under the Loan and Security Agreement. In addition, as of June 30, 2010, we had outstanding letters of credit of approximately $1.7 million and borrowing availability of $35.8 million under the Loan and Security Agreement, which is subject to a $10.0 million availability block.

Terms, Covenants and Compliance Status We are not required to comply with the fixed charge coverage ratio requirement for as long as we maintain at least $5.0 million of borrowing availability (after giving effect to the $10.0 million availability block) under the Loan and Security Agreement. If borrowing availability (after giving effect to the $10.0 million availability block) is less than $5.0 million for three consecutive business days or less than $2.5 million on any day, we would have been required to comply with a fixed charge coverage ratio of 1.0:1.0 for fiscal quarters ending on or after June 30, 2010, and will be required to continue to comply with these requirements until we have borrowing availability (after giving effect to the $10.0 million availability block) of $5.0 million or greater for 60 consecutive days.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.5/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK