Commercial Vehicle Group, Inc.

Good morning, ladies and gentlemen, and welcome to the CVGI Q1 2024 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, May 7, 2024. I would now like to turn the conference over to Mr. Andy Chung, Chief Financial Officer. Please go ahead, sir.

Thank you, operator, and welcome everyone to our conference call. Joining me on the call today is James Wei, President and CEO of CVG. This morning, we will provide a brief company update as well as commentary regarding our first quarter 2024 results. After which, we will open the call for questions. As a reminder, this conference call is being webcast and the Q1 2024 earnings call presentation, which we will refer to during this call, is available on our website. Both may contain forward-looking statements, including, but not limited to, expectations for future periods regarding market trends, cost-saving initiatives, and new product initiatives, among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include but are not limited to economic conditions in the market in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenants compliance and liquidity, risks associated with conducting business in foreign countries and currencies, and other risks as held in our SEC filings. I will now turn the call over to James to provide a company update.

Thank you, Andy. I'd like to turn your attention to the supplemental earnings presentation starting on slide three. As we discussed in last quarter's call, we launched restructuring initiatives comprehending softer market conditions that were expected and we continue to expect in the year. These softer conditions as well as a strong quarter in the prior year period, made for a tough comparison versus the prior year across most metrics. We reported net sales of $232 million in the quarter and adjusted EBITDA of $12.7 million. We remain focused on driving further operational efficiency improvements, strengthening our vehicle solutions segment, and growing our electrical system segment to be our largest business. We fully executed restructuring initiatives in the first quarter, and combined with additional efforts I'll discuss later, underpinned our financial guidance for 2024. Despite a net use of cash in the quarter, our net leverage ratio remained strong at 1.8 times. We also continued driving new business wins. recording approximately $45 million in new winds so far this year on a fully ramped basis. Consistent with our strategy, these winds continue to be focused within our electrical systems segment and support the product ramp-up at our two new plants and additional Morocco facility, which are focused on meeting the demand growth in electrical systems. Turning to slide four, I'd like to take this opportunity to highlight some recent strategic actions we've taken, which all serve as a reminder of our continued goal to align costs and improve margins at CVG. First, we continue to make significant strides in our organizational efficiency improvements, as our restructuring actions to reduce costs and align resources with our growth product lines remain underway. In line with that, we announced last quarter the consolidation of products manufactured in our facility in Chillicothe, Ohio. We now have a signed purchase agreement for the sale of the Chillicothe facility, with the transaction expected to close in Q3. Second, our operational excellence emphasis supports our ongoing cost-out program, which focuses on productivity, materials, and conversion costs. we are persistent in our efforts to increase engagement by prioritizing customer satisfaction across the organization. Our collaboration across business segments will help introduce new products, foster stronger customer relationships, and help us manage inflationary price recoveries. Collectively, these efforts are targeted to improve profitability, increase enterprise-wide efficiency, and support our outlook for the full year 2024. Now, moving to slide five, I'd like to highlight the expansion of our new Unity Seat product line within our vehicle solution segment. The Unity Seat line has many product features that are helping us win business globally, including powered full seat tilt and lever recline, decreased free play and performance above market requirements. Importantly, the Unity line has achieved safety compliance across all our strategic regions and market segments. This expansion is a strong example of how we are strengthening our core vehicle solutions business through customer focus, solutions, and technology. We look forward to growing our Unity sales globally and sharing our successes with you in future quarters. With that, I'd like to turn the call back to Andy for a more detailed review of our financial results.