I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.
Address: 2716 Lightning Point Drive Memphis, TN 38117, USA
Phone: (+1) 901-418-1821
Latest posts by Diana Esparza (see all)
- Hot Stock of the Day: Commercial Vehicle Group Inc. (NASDAQ: CVGI) - November 13, 2019
- Hot Stock Buzz: Carvana Co. (NYSE: CVNA) - November 13, 2019
- Hot Stock to Track: Citi Trends Inc. (NASDAQ: CTRN) - November 13, 2019
NEW ALBANY, Ohio, November 13, 2019 – Shares of Commercial Vehicle Group Inc. (NASDAQ: CVGI) declined -2.37% to $7.00. The stock grabbed the investor’s attention and traded 160.439K shares as compared to its average daily volume of 259.81K shares. The stock’s institutional ownership stands at 84.30%.
Commercial Vehicle Group, Inc. (CVGI) reported second quarter 2019 revenues of $243.20M compared to $233.40M in the prior year period, an increase of 4.2%. The increase in revenues period-over-period reflects higher heavy- and medium-duty truck production in North America partially offset by a production decrease in the Asia Pacific construction equipment market. Foreign currency translation adversely impacted second quarter 2019 revenues by $3.50M, or by 1.5% when compared to the prior year period.
Operating income for the second quarter 2019 was $17.20M compared to $20.90M in the prior year period. The decrease in operating income was due primarily to inflationary pressure on material and labor costs, and an increase in selling, general and administrative (“SG&A”) expenses. Cost control and cost recovery actions reduced the impact on gross profit of these cost pressures. A new statutorily higher minimum wage in Mexico affecting the region encompassing our wire harness facility in Agua Prieta, Mexico (the “Border Minimum Wage”), a troubled supplier and costs associated with establishing additional manufacturing capacity adversely impacted results in the second quarter of 2019 by approximately $2.90M, a 120 basis point burden on gross profit margin. Regarding SG&A expenses, costs associated with the strategic reorganization of the Company to, among other things, develop a platform from which to pursue business and corporate development activities gave rise to an approximate $1.00M increase in costs in the quarter compared to the prior year period.
Interest and other expense was $7.50M and $3.20M for the three months ended June 30, 2019 and 2018, respectively. The increase reflects the impact of marking-to-market the interest rate swap agreements, which resulted in a $1.10M non-cash charge in the three months ended June 30, 2019 and a $0.50M gain in the prior year period. In addition, the second quarter results include a $2.50M non-cash charge associated with the early payout of benefits to employees with deferred vested balances in the U.S. defined benefit pension plan.
Net income was $7.20M for the second quarter 2019, or $0.23 per diluted share, compared to net income of $13.20M in the prior year period, or $0.43 per diluted share.
At June 30, 2019, the Company had liquidity of $123.90M: $60.50M of cash and $63.40M of availability from our asset-based revolver. There were no borrowings on our asset-based revolver at June 30, 2019.
CVGI has a market value of $211.68M while its EPS was booked as $1.04 in the last 12 months. The stock has 30.24M shares outstanding. In the profitability analysis, the company has gross profit margin of 13.80% while net profit margin was 3.80%. Beta value of the company was 2.76; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.00.