Earnings Spotlight:- Core Molding Technologies, Inc. (NYSE:CMT)

Core Molding Technologies, Inc. (NYSE:CMT) dropped with change of -1.28% to $15.48 with the current traded volume of 14270 shares versus to an average volume of 27.01K. The stock was up in the 5 days activity 2.75%. The one month performance of stock was -7.71%. CMT shares are at -18.25% for the quarter and driving a -22.53% return over the course of the past year and is now at -27.74% since this point in 2018.  Right now CMT beta is 0.86. The average volatility for the week and month was at 5.15% 4.20% respectively.

Core Molding Technologies, Inc. (NYSE:CMT) today declared results for the first quarter ended March 31, 2018.

Kevin Barnett, President and Chief Executive Officer said “The Company recorded strong sales growth compared to the same period of last year driven by the first quarter 2018 acquisition of Horizon Plastics International, Inc. (“Horizon Plastics”), increased demand from North American heavy-duty truck customers and higher tooling sales,”.  “Net sales, including Horizon Plastics net sales of $14.7 million, increased $26.3 million or 72% compared to the first quarter of 2017.  Excluding Horizon Plastics, net sales increased 32%.  Supporting our strategic objectives, Horizon Plastics expands our process and material offerings and increases the number of end markets we serve.  As a result of the acquisition, for the first time in Core Molding’s history, our non-truck sales represent approximately one-half of our total sales.”

First Quarter 2018 Compared to First Quarter 2017:

  • Net sales were $63.0 million compared to $36.7 million.
  • Product sales were $59.7 million compared to $36.3 million.
  • Gross margin was 12.5% compared to 17.7%.
  • Selling, general and administrative expense were $6.8 million compared to $3.9 million.
  • Operating income was $1.1 million compared to $2.6 million.
  • Net income was $0.5 million, or $0.07 per diluted share, compared with $1.7 million, or $0.22 per diluted share.

First quarter 2018 gross margin of 12.5% was lower than prior year’s gross margin of 17.7%.  The Company continued to see pressure on gross margin, primarily due to higher raw material and labor costs and increased manufacturing inefficiencies. Raw material cost increases have continued across multiple commodities and multiple vendors, driven primarily by underlying cost pressures while labor costs have increased due to tightening labor market conditions.  The rapid ramp up in demand by our customers and the launch of multiple new business programs has caused manufacturing inefficiencies, including hiring, training, overtime, contract labor and premium freight costs. Selling, general and administrative expenses increased $2.9 million compared to 2017, primarily due to the Horizon Plastics acquisition.  As a result of the acquisition, the Company incurred one-time acquisition transaction costs and will have ongoing operating costs of the new entity along with the amortization costs of the intangible assets acquired.

The one-time acquisition transaction costs negatively impacted net income by $0.9 million ($1.3 million pre-tax), or $0.12 per share.  Excluding the one-time costs, the Company’s net income would have been $1.4 million, or $0.19 per share.  The Horizon Plastics acquisition, excluding one-time transaction costs, contributed earnings per share for the quarter of $0.07.

Financial Position at March 31, 2018:

  • Cash and cash equivalents of $2.6 million.
  • Total assets of $195.1 million.
  • Total debt of $54.5 million.
  • Stockholders’ equity of $104.0 million.

Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.05 per share payable on May 31, 2018 to shareholders of record on May 22, 2018.

Shares of Core Molding Technologies, Inc. have been recently spotted trading -36.82% off of the 52-week high price. On the other end, company shares have been noted 3.55% away from the low price over the last 52-weeks. 52 week range of the stock remained $ 14.95 – 24.50. Switching over to some distances from popular moving averages, we see that the stock has been recorded -11.12% away from the 50 day moving average and -23.77% away from the 200 day moving average. Moving closer, we can see that shares have been trading -6.90% off of the 20-day moving average.

Posted in ,

Wayne Moore

Wayne joined us, after more than 10 years of experience in writing financial and business news, most recently as Investment Editor and writer. He also has a vast knowledge of stock trading. He earned bachelor degree from Union College with a focus in Business Administration. Wayne is the Senior Editor for and market movers section. He also holds an MBA from Penn State University He has two daughter and two children.Address: 1140 Water Street, Concord, CaliforniaPhone Number: 925-348-4776Email: [email protected] 

Leave a Reply

Your email address will not be published. Required fields are marked *