Commercial Vehicle Group Inc. (NASDAQ:CVGI) Q1 2020 Earnings Conference Call - Final Transcript

May 19, 2020 • 08:00 am ET


Commercial Vehicle Group Inc. (NASDAQ:CVGI) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Commercial Vehicle Group Q1 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Kirk Feiler, Vice President, Corporate Development and Investor Relations. Please go ahead, sir.

Kirk Feiler

Thank you, Chris, and welcome to our conference call. Joining me on the call today are Harold Bevis, President and Chief Executive Officer of Commercial Vehicle Group; and Tim Trenary, Executive Vice President and Chief Financial Officer. They will provide a brief Company update as well as commentary regarding our first quarter 2020 financial results. We will then open the call up for questions.

This conference call is being webcast and a supplemental earnings presentation 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 other. 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 markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity, risks associated with conducting business in foreign countries and currencies and other risks as detailed in our SEC filings.

I will now turn the call over to Harold Bevis to provide a Company update.

Harold C. Bevis

Thank you, Kirk. And thank you everyone for joining the call today to discuss our first quarter results. Given this is my first earnings call with you, I would like to briefly introduce myself. I've been working with the CVG management team for the last six years as an Independent Director, and for the last eight weeks as CEO. My background experience and knowledge of the Company, its customers and our strategy was well suited as we progress towards our long-term goals.

That said, the magnitude of the COVID pandemic and its impact on our business was very swift and unexpected. However, our team immediately sprung into action. As you saw in early May, we provided an interim update that included our actions in response to the COVID pandemic, as well as our preliminary first quarter results. Furthermore, we announced last week that we have amended our long-term -- excuse me, our term loan and our asset-based revolving credit facility. This new agreement provides the Company with additional flexibility to rightsize certain parts of the Company to a post-COVID environment and expands our ability to improve the Company.

As Tim will discuss later, we continue to believe that our ample liquidity is sufficient to meet our operating, growth and restructuring needs. Prior to the onset of COVID, we had already been preparing for a cyclical slowdown in end-market demand, which started late in 2019 and continued into the beginning of 2020. The pandemic first impacted our operations in Shanghai, China in January and then as we all know, the COVID virus spread