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Dec 31, 2022
CVG Q4 2022 Earnings Report
Reported a 2.6% increase in fourth quarter sales, reaching $235 million, and an adjusted EBITDA increase of 3.1% to $13.3 million.
Key Takeaways
CVG reported a slight increase in revenue and adjusted EBITDA for Q4 2022, with revenue reaching $234.9 million, a 2.6% increase year-over-year, and adjusted EBITDA of $13.3 million, a 3.1% increase. The company experienced a net loss of $32.0 million due to non-cash charges. Strong free cash flow and debt paydown exceeded target at ~$43 million.
Revenue increased by 2.6% to $234.9 million due to demand and price increases.
Net loss of $32.0 million was caused by non-cash charges related to tax valuation allowance changes and pension settlement.
Adjusted EBITDA increased by 3.1% to $13.3 million due to pricing actions, solid demand, and new business revenues.
Price negotiations secured further increases beginning January 2023.
CVG
CVG
CVG Revenue by Segment
Revenue by Segment
Global Electrical Systems Revenue
CapyFin.com Forward Guidance
CVG anticipates a year of record revenue, higher EBITDA, continued free cash flow and debt paydown, $30 million of cost-out, and at least $100 million of targeted new business wins, concentrated in Electrical Systems.
Positive Outlook
- Expecting 2023 to be a year of record revenue.
- Expecting higher EBITDA in 2023.
- Anticipating continued free cash flow and debt paydown.
- Targeting $30 million of cost-out.
- Aiming for at least $100 million of targeted new business wins, concentrated in Electrical Systems.