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

November 20, 2009 | About:
10qk

10qk

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Commercial Vehicle Group Inc. (CVGI) filed Amended Quarterly Report for the period ended 2009-06-30.

Commercial Vehicle Group Inc. has a market cap of $114.6 million; its shares were traded at around $5.27 with and P/S ratio of 0.2.

Highlight of Business Operations:

Revenues. Revenues decreased approximately $105.7 million, or 50.5%, to $103.5 million in the three months ended June 30, 2009 from $209.2 million in the three months ended June 30, 2008. This decrease resulted primarily from the decline in global economic conditions, which negatively impacted our North American end market revenues by approximately $64.6 million and our European and Asian end market revenues by approximately $37.2 million. In addition, translation of our foreign operations into U.S. dollars decreased our revenues by approximately $3.9 million over the prior year period.

Gross (Loss) Profit. Gross loss was approximately $1.1 million for the three months ended June 30, 2009 compared to gross profit of $23.4 million in the three months ended June 30, 2008, a decrease of approximately $24.5 million, or 104.7%. As a percentage of revenues, gross loss was 1.1% for the three months ended June 30, 2009 compared to gross profit of 11.2% in the three months ended June 30, 2008. This decrease was primarily the result of our inability to reduce our costs in proportion with the $105.7 million decrease in our revenues from the prior year period.

Revenues. Revenues decreased approximately $194.2 million, or 47.8%, to $212.0 million in the six months ended June 30, 2009 from $406.2 million in the six months ended June 30, 2008. This decrease resulted primarily from the decline in global economic conditions, which impacted our North American end market revenues by approximately $114.1 million and our European and Asian end market revenues by approximately $69.4 million. In addition, translation of our foreign operations into U.S. dollars decreased our revenues by approximately $10.7 million over the prior year period.

Gross (Loss) Profit. Gross loss was approximately $4.3 million for the six months ended June 30, 2009 compared to gross profit of $44.2 million in the six months ended June 30, 2008, a decrease of approximately $48.5 million, or 109.8%. As a percentage of revenues, gross loss was 2.0% for the six months ended June 30, 2009 compared to gross profit of 10.9% in the six months ended June 30, 2008. This decrease was primarily the result of our inability to reduce our costs in proportion with the $194.2 million decrease in our revenues from the prior year period.

As of June 30, 2009, we had an aggregate of $153.4 million of outstanding indebtedness excluding $1.7 million of outstanding letters of credit under various financing arrangements and an additional $36.5 million of borrowing capacity under our Loan and Security Agreement, which was subject to a $11.5 million availability block. The indebtedness consisted of the following:

The Second Amendment includes a reduction in size of the commitment from $47.5 million to $37.5 million and provides that borrowings under the Loan and Security Agreement are subject to an availability block of $10.0 million, until we deliver a compliance certificate for any fiscal quarter ending March 31, 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. The Second Amendment further provides that we need not comply with any minimum EBITDA requirement or 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 will be required to comply with revised monthly minimum EBITDA requirements for 2009 set forth below and a fixed charge coverage ratio of 1.0:1.0 for fiscal quarters ending on or after March 31, 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 ReportCVGI is in the portfolios of Arnold Schneider of Schneider Capital Management.

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