In This Article:
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Revenue: $685.4 million for Q3 2024, a decrease of 6.9% compared to Q3 2023.
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Adjusted EBITDA: $46.1 million for Q3 2024, down from $79.1 million in Q3 2023.
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Net Loss: $11.1 million for Q3 2024, compared to net income of $11.4 million in Q3 2023.
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Adjusted Net Loss: $12 million or $0.68 per diluted share for Q3 2024, compared to adjusted net income of $15 million or $0.85 per diluted share in Q3 2023.
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Capital Expenditures: $10.9 million or 1.6% of sales for Q3 2024, compared to $16.4 million or 2.2% of sales in Q3 2023.
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Free Cash Flow: Approximately $17 million for Q3 2024, an improvement of approximately $13 million compared to the same period last year.
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Total Liquidity: Approximately $281 million as of September 30, 2024.
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Cost Savings: $15 million from lean initiatives and $10 million from restructuring initiatives in Q3 2024.
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Full Year Sales Guidance: Expected to be in the range of $2.7 billion to $2.75 billion.
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Full Year Adjusted EBITDA Guidance: Adjusted to $180 million to $195 million.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cooper-Standard Holdings Inc (NYSE:CPS) achieved outstanding operational performance with 98% of customer scorecards being green for new program launches.
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The company reported its best-ever safety performance with a total incident rate of 0.20, well below the world-class benchmark.
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Cost optimization efforts resulted in $15 million in savings through lean initiatives and an additional $10 million from restructuring initiatives.
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CPS was awarded $44 million in net new business during the third quarter, reflecting strong customer trust in their innovations.
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The company improved its sustainability score, placing in the 88th percentile and receiving a silver medal from EcoVadis for the eighth year.
Negative Points
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Third quarter sales decreased by 6.9% compared to the same period last year, primarily due to lower production volumes and unfavorable foreign exchange.
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Adjusted EBITDA for the quarter was $46.1 million, down from $79.1 million in the third quarter of 2023.
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The company reported a net loss of $11.1 million in the third quarter of 2024, compared to net income of $11.4 million in the same period last year.
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Unfavorable foreign exchange and general inflation negatively impacted financial results.
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Despite cost savings, the company continues to face headwinds from lower production volumes and persistent inflation.
Q & A Highlights
Q: When you look at your guidance and if you back out the fourth quarter, the upper end of that range gets you to that double-digit margin that you've talked about. What needs to go right for you to get there? A: Jeffrey Edwards, CEO: For 2025, we've said we'll be there as we exit the year. We're ahead of where we thought we would be due to additional cost reductions and flawless execution in our manufacturing plants. Volume would be beneficial, but we're doing well without it. We're confident in our guidance and see good momentum heading into 2025.