Cooper Standard Reports Fourth Quarter and Year-End 2012 Financial Results
NOVI, Mich., Feb. 25, 2013
NOVI, Mich., Feb. 25, 2013 /PRNewswire/ --Cooper-Standard Holdings Inc.
(OTCBB: COSH), the parent company of Cooper Standard Automotive, a leading
global supplier of systems and components for the automotive industry, today
announced financial results for the fourth quarter and year ended December 31,
2012. The Company also provided its 2013 outlook.
"The company's global investments in 2012 highlight our strategic focus on
growth, emerging market expansion and support of our global customers," said
Jeffrey Edwards, CEO, Cooper Standard. "We will continue to work closely with
our customers to identify profitable growth opportunities in 2013."
Fourth quarter and 2012 results
Cooper Standard reported revenue of $697.1 million for the fourth quarter of
2012 as compared to $695.7 million in the same quarter of the previous year.
Sales reflect increased OEM production volume in North America, offset by
volume declines in Europe and $10.8 million of unfavorable foreign exchange.
For the full year, revenue was $2.9 billion, up slightly from the previous
year. On a comparable basis, revenue was up 5.5 percent when adjusted for
$129.4 million of unfavorable foreign exchange during the year. In addition
to the aforementioned factors, the businesses acquired by the Company in 2011
also contributed favorably to 2012.
Gross profit for the quarter ended December 31, 2012 was $99.7 million or 14.3
percent of sales as compared to $97.6 million or 14 percent of sales for the
fourth quarter of 2011. Lean savings contributed to the increase in gross
profit, offset primarily by customer pricing and vehicle launch and expansion
For the full year 2012, the Company generated a gross profit of $438.9
million, representing 15.2 percent of sales, compared to $450.6 million in
2011, or 15.8 percent of sales. Factors affecting gross profit in the year
include increased production volume in North America and lean savings, offset
by lower European volumes, unfavorable foreign exchange, customer pricing and
expenses associated with vehicle launches, manufacturing transfers and
The Company reported net loss of $9.9 million in the fourth quarter of 2012,
compared to net income of $23.2 million in 2011. Net income for the quarter
was affected by after tax charges of $12.5 million in connection with the
Company's European restructuring initiatives and $9.1 million of impairment
charges relating to the Company's South American business and one of its
European facilities. Selling, administration and engineering expenses
increased to $74.8 million in the fourth quarter of 2012, compared to $66.7
million in 2011, as the Company increased staffing and investments to support
its customers and growth initiatives.
The Company reported full year 2012 net income of $102.8 million or $4.14 per
share on a fully diluted basis, which included a $48.3 million benefit related
to the reversal of the valuation allowance on the Company's deferred income
tax assets in the United States recorded in the second quarter. For full year
2011, net income was $102.8 million or $3.93 per share on a fully diluted
For the fourth quarter, Cooper Standard reported adjusted EBITDA of $70.9
million. Adjusted EBITDA for the full year 2012 was $298.0 million or 10.3
percent of sales, compared to $324.1 million or 11.4 percent of sales in 2011.
The company launched new programs with several customers in 2012, a few key
launches are highlighted here:
oChrysler Group LLC (Dodge Dart and Ram)
oFiat Group SpA (Siena)
oFord Motor Co. (Escape, Fiesta, Fusion and Kuga)
oGeneral Motors Co. (Onix)
During 2012, Cooper Standard was recognized by customers with the following:
oAudi 2011 Top 50 + Award – Schelklingen, Germany
oChrysler Supplier of the Year Finalist – Chemical Group
oFord's 2011 Silver Award – Mitchell, Ontario, Canada
oGM's 2012 Supplier Quality Excellence Award – Mitchell, Ontario, Canada;
Georgetown, Ontario, Canada; and Gaylord, Mich.
oGM's 2012 Customer Care Award – Fairview, Mich.; Leonard, Mich.; and
Georgetown, Ontario, Canada
oNissan's Supplier Quality Award – Auburn, Ind.; and Torreon, Coahuila,
For 2013, assuming North American vehicle production volume of 15.6 million
units, European production volume of 18.7 million units and an average full
year exchange rate of $1.25/Euro, the Company expects sales growth of 1 to 2
percent. Cooper Standard anticipates making capital expenditures of between
$150 million and $170 million, as it continues to invest in technology and
expand in the emerging markets to support its customers. The Company expects
to incur cash restructuring expenses of between $40 million and $50 million,
predominantly in Europe. Cash taxes are estimated to be in the range of $35
million to $45 million.
Net income to adjusted EBITDA reconciliation
The following table provides a reconciliation of EBITDA and adjusted EBITDA to
net income, which is the most comparable U.S. GAAP financial measure (dollars
Year Ended December 31, Quarter ended
2011 2012 2011 2012
(dollars in millions) (dollars in
Net income $ $ $ $
102.8 102.8 23.2 (9.9)
Provision (benefit) for 20.8 (31.5) (6.0) 1.3
income tax expense
Interest expense, net of 40.5 44.8 10.3 11.5
Depreciation and amortization 124.1 122.7 32.1 31.5
EBITDA $ $ $ $
288.2 238.8 59.6 34.4
Restructuring ^(1) 52.2 28.8 4.1 13.0
Noncontrolling interest (19.9) (3.0) (0.9) (2.5)
Inventory write-up ^(3) 0.7 - - -
Net gain on partial sale of (11.4) - - -
joint venture ^(4)
Stock-based compensation ^(5) 10.8 9.8 2.5 2.4
Acquisition costs ^(6) 2.2 - - -
Impairment charges ^(7) - 10.1 - 10.1
Payments to former CEO and - 11.5 - 11.5
transition costs ^(8)
deferred tax valuation - 2.0 - 2.0
Other ^(10) 1.3 - 1.3 -
Adjusted EBITDA $ $ $ $
324.1 298.0 66.6 70.9
(1) Includes non-cash
(2) Proportionate share of restructuring costs
related to FMEA joint venture.
(3) Write-up of inventory to fair value for the USi, Inc. acquisition and
the FMEA joint venture, net of noncontrolling interest.
(4) Net gain on partial sale of
ownership percentage in joint venture.
(5) Non-cash stock amortization expense and non-cash stock option expense
for grants issued at emergence from bankruptcy.
(6) Costs incurred in relation to the
FMEA joint venture agreement.
(7) Impairment charges related to goodwill ($2.8
million) and fixed assets ($7.3 million).
(8) Executive compensation for retired CEO and
recruiting costs related to search for new CEO.
(9) Noncontrolling interest deferred tax valuation
reversal related to FMEA joint venture.
(10) Costs related to
Management considers EBITDA and adjusted EBITDA as 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. Adjusted EBITDA is defined as net
income adjusted to reflect income tax expense, interest expense net of
interest income, depreciation and amortization, and certain non-recurring
items that management does not consider to be reflective of the Company's core
When analyzing the Company's operating performance, investors should use
EBITDA and adjusted EBITDA in addition to, and not as alternatives for, net
income, operating income, or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flow from operating
activities as a measure of the Company's performance. EBITDA and adjusted
EBITDA 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 GAAP. Other companies may report EBITDA and
adjusted EBITDA differently and therefore Cooper Standard's results may not be
comparable to other similarly titled measures of other companies. In addition,
in evaluating adjusted EBITDA, it should be noted that in the future Cooper
Standard may incur expenses similar to or in excess of the adjustments in the
above presentation. This presentation of adjusted EBITDA should not be
construed as an inference that Cooper Standard's future results will be
unaffected by unusual or non-recurring items.
Conference call details
Cooper Standard's executive team will host a conference call and webcast with
investors on Tuesday, Feb. 26 at 9 a.m. ET to discuss its fourth quarter and
year-end 2012 results, provide a general business update and respond to
An interactive webcast will be available by clicking here.
To participate in the live question-and-answer session, callers in the United
States and Canada should dial toll-free 800-949-4315 (international callers
dial 678-825-8315) and provide the conference ID 88634664 or ask to be
connected to the Cooper Standard teleconference. Callers should dial in at
least five minutes prior to the start of the call. Financial and automotive
analysts are invited to ask questions after the presentations are made.
Individuals unable to participate during the live teleconference or webcast
may visit the investors' portion of the Cooper Standard website
(http://www.ir.cooperstandard.com) for a webcast or podcast replay of the
About Cooper Standard
Cooper Standard, headquartered in Novi, Mich., is a leading global supplier of
systems and components for the automotive industry. Products include vehicle
sealing and exterior systems, fluid and anti-vibration systems. Cooper
Standard employs more than 22,000 people globally and operates in 19 countries
around the world. For more information, please visit www.cooperstandard.com.
Forward Looking Statements
This press release includes forward-looking statements as contemplated by the
1995 Private Securities Litigation Reform Act, reflecting management's current
analysis and expectations, based on what are believed to be reasonable
assumptions. The words "estimates," "expects," "anticipates," "projects,"
"plans," "intends," "believes," "forecasts" or future or conditional verbs,
such as "will," "should," "could" or "may" and variations of such words or
similar expressions are intended to identify forward-looking statements.
Forward-looking statements are not guarantees of future results and may
involve known and unknown risks and uncertainties that may cause actual
results to differ materially from those projected, including, without
limitation, the risks and uncertainties set forth in the Company's most recent
Annual Report on the Form 10-K, subsequent Quarterly Reports on Form 10Q and
other Securities and Exchange Commission filings. The forward-looking
statements in this press release are made as of the date hereof and the
Company does not assume any obligation to update, amend or clarify them to
reflect events, new information or circumstances occurring after the date
Contact for Contact for Media:
Glenn Sharon Wenzl
Cooper Cooper Standard
(248) (248) 596-6211
SOURCE Cooper-Standard Holdings Inc.
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