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Sep 30, 2022
Core Molding Q3 2022 Earnings Report
Reported record quarterly sales and increased profitability.
Key Takeaways
Core Molding Technologies reported a 25% increase in net sales to a record $101.6 million for the third quarter of 2022. The company also saw improvements in gross margin, operating income, and net income compared to the prior year. Strong customer demand, margin-enhancing initiatives, and successful efforts to recover raw material cost increases contributed to the positive results.
Net sales increased by 25.4% to $101.6 million, a record for the quarter.
Gross margin improved to 13.1% of net sales, compared to 7.9% in the prior year.
Operating income was $4.6 million, a significant improvement from the operating loss of $(2.4) million in the prior year.
Net income was $1.3 million, or $0.16 per diluted share, compared to a net loss of $(3.3) million, or $(0.41) a year ago.
Core Molding
Core Molding
Forward Guidance
The company remains guarded for 2023 due to potential macro-economic headwinds, while continuing to see strong customer demand.
Positive Outlook
- The company completed its debt refinancing and interest rate swap transactions during the quarter.
- The refinancing provides financial flexibility and liquidity to grow and deliver on commitments of long-term value creation.
- The company ended the quarter with a strong working capital position from organic growth.
- The company continues to work on operational efficiencies and respond to inflation in order to stabilize margins.
- Major programs continue to ramp up this year, and net new wins are on track totaling $24 million.
Challenges Ahead
- The company remains guarded for 2023 due to potential macro-economic headwinds.
- Gross margin improvements from the prior year were impacted by the Company's successful efforts to recover raw material cost increases.
- The company continues to balance the seasonality of our business.
- The company reported a one-time $1.6 million loss on extinguishment of debt.
- Potential economic slowdown in the United States, Mexico, and Canada.