Cooper-Standard Holdings Inc. (NYSE: CPS), a leading global supplier of sealing, fuel and brake and fluid transfer systems for transportation and industrial markets, today reported certain preliminary financial results for the quarter ended March 31, 2020.
Preliminary results for the quarter include:
- Sales of approximately $655 million
- Adjusted EBITDA in the range of $5 million to $10 million
- Net cash used in operating activities in the range of $0 to $5 million
- Capital expenditures of approximately $50 million
As of March 31, 2020, the Company had cash and cash equivalents totaling $302 million and $146 million of availability under its asset backed credit facility (“ABL facility”), for total liquidity of $448 million. However, the borrowing base of the ABL facility, which is primarily based on the Company’s U.S. and Canadian accounts receivable and inventory, is expected to decline over time until the Company’s customers resume production.
“Based on our current expectations and projections for OEM customer restart plans, whether formally announced or anticipated, and in consideration of the aggressive actions we have taken to preserve cash and enhance liquidity, we expect to have sufficient liquidity to fund our operations for the next 12 months,” stated Jonathan Banas, Cooper Standard’s executive vice president and CFO. “However, due to the uncertain duration of the industry shutdowns caused by the COVID-19 pandemic and uncertainty of the level of demand for light vehicles after production is restarted, we may opportunistically explore additional funding options to further strengthen the Company’s balance sheet and financial flexibility.”
As previously announced, Cooper Standard expects to release full first quarter 2020 results on May 11, 2020 and conduct a conference call to discuss the results on May 12, 2020. Details for participating in the conference call can be found at http://www.ir.cooperstandard.com/index.cfm.
SOURCE: Cooper Standard
