Year-over-year Sales Growth and Gross Profit Improvement Highlight Cooper Standard's First Quarter 2023 Results - 03.05.23 - News

NORTHVILLE, Mich., May 3, 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

ARIVA.DE Börsen-Geflüster

Kurse

Cooper-Standard Holdings

16,00 $

+4,10%

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

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