By a News Reporter-Staff News Editor at Journal of Transportation -- Cooper-Standard Holdings Inc. (NYSE: CPS), the parent company of Cooper-Standard Automotive Inc. ("Cooper Standard" or "Company"), a leading global supplier of systems and components for the automotive industry, announced financial results for the first quarter ended March 31, 2014. The Company also reaffirmed its previous financial guidance for the full year.
"This was a solid quarter for Cooper Standard, highlighted by our strong year-over-year sales growth," said Jeffrey Edwards, chairman and CEO, Cooper Standard. "The actions taken to stabilize our North American business, combined with margin expansion in Europe, enabled us to significantly improve quarter-over-quarter adjusted EBITDA. We hired technical talent across the Company and made infrastructure investments to ensure we have the capability necessary to support new business launches, product innovation and growth. We are on track to achieve our strategy for profitable growth."
First Quarter Ended March 31, 2014 Results
The Company reported revenue of $837.6 million for the first quarter of 2014, compared to $747.6 million for the first quarter of 2013. The $90 million, or 12 percent, increase in sales was driven by increased volumes primarily in North America and Europe, and incremental sales related to the Company's acquisition of Jyco Sealing Technologies in the third quarter of 2013. These items were partially offset by customer price concessions and unfavorable foreign exchange of $4.7 million.
Gross profit for the quarter was $134.3 million, or 16 percent of sales, compared to $120.3 million, or 16.1 percent of sales, for the same period last year. The 11.6 percent increase in gross profit was driven primarily by increased volumes in North America and Europe, and lean savings, partially offset by higher staffing costs, operating expenses and customer price concessions.
The Company reported net income of $19.7 million, or $1.10 per share on a fully diluted basis in the first quarter of 2014, compared to $20.7 million, or $0.86 per share in the first quarter of 2013, primarily as a result of the Company's equity tender and preferred securities conversion transactions in 2013.
As previously disclosed, the Company entered into a $750 million term loan facility due 2021. At current interest rates, the refinancing is expected to result in an annual pre-tax interest expense savings of $23 million. Proceeds from the facility were used to prepay in full the Company's 7 3/8 percent Senior PIK Toggle Notes and 8 1/2 percent Senior Notes.
Adjusted EBITDA for the first quarter was $80.6 million, or 9.6 percent of sales, compared to $76.7 million, or 10.3 percent of sales, in the same quarter last year. While the year-over-year comparison is lower on a percent of sales basis, the Company has demonstrated material improvement in performance over the prior two quarters. This improvement reflects actions taken to address challenges related to the introduction and subsequent launches of new sealing and trim products.
Keywords for this news article include: Automobiles, Transportation.
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