0001026655false00010266552024-05-072024-05-0700010266552023-05-092023-05-09

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2024
 
Core Molding Technologies, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
001-12505
31-1481870
(State or other jurisdiction
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
800 Manor Park Drive, Columbus, Ohio
43228-0183
(Address of principal executive office)
(Zip Code)
Registrant’s telephone number, including area code: (614) 870-5000
(Former name or former address if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01CMTNYSE American LLC
Preferred Stock purchase rights, par value $0.01N/ANYSE American LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐


Item 2.02Results of Operations and Financial Condition.

On May 7, 2024, the Company announced financial results for the first quarter ended March 31, 2024. A copy of the press release announcing this event is included in this Form 8-K as Exhibit 99.1.

Item 9.01    Finance Statements and Exhibits.

(d) Exhibits



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CORE MOLDING TECHNOLOGIES, INC.
Date: May 7, 2024By:
/s/ John P. Zimmer
Name:John P. Zimmer
Title:Executive Vice President, Treasurer, Secretary and Chief Financial Officer






FOR IMMEDIATE RELEASE

Core Molding Technologies Reports Fiscal 2024 First Quarter Results


COLUMBUS, OH, May 7, 2024 – Core Molding Technologies, Inc. (NYSE American: CMT) (“Core Molding”, “Core” or the “Company”), a leading engineered materials company specializing in molded structural products, principally in building products, industrial and utilities, medium and heavy-duty truck and powersports industries across the United States, Canada and Mexico today reports financial and operating results for the three months ended March 31, 2024.

First Quarter 2024 Highlights

•Total net sales of $78.1 million decreased 21.5% compared to the prior year first quarter. Sequentially, first quarter net sales improved by 5.9%, up from $73.8 million in the 2023 fourth quarter.
•Gross margin of $13.3 million, or 17.0% of net sales, decreased from 17.8% of net sales compared to the prior year first quarter. Sequentially, gross margin improved 220 basis points from 14.8% in the 2023 fourth quarter.
•Selling, general, and administrative expenses of $8.6 million, or 11.0% of net sales, compared to $9.7 million, or 9.7% for the prior year first quarter.
•Operating income of $4.7 million, or 6.1% of net sales, compared to operating income of $8.1 million, or 8.1% of net sales for the prior year first quarter.
•Net income of $3.8 million, or $0.43 per diluted share, compared to net income of $5.9 million, or $0.66 per diluted share for the prior year first quarter.
•Adjusted EBITDA1 of $8.7 million, or 11.2% of net sales, compared to $12.2 million, or 12.3% for the prior year first quarter. Sequentially, Adjusted EBITDA as a percent of net sales improved to 11.2% compared to 8.9% in the 2023 fourth quarter.

1Adjusted EBITDA is a non-GAAP financial measure as defined and reconciled below.

Three months ended
March 31,December 31,
20242023% Change2023% Change
Net sales$78,145 $99,507 (21.5)%$73,778 5.9 %
Gross margin13,305 17,743 (25.0)%10,937 21.7 %
Operating income4,732 8,075 (41.4)%2,517 88.0 %
Net income3,759 5,852 (35.8)%2,182 72.3 %
Adjusted EBITDA1
8,743 12,196 (28.3)%6,532 33.8 %
Gross margin as a percent of sales17.0 %17.8 %14.8 %
Operating income as a percent of sales6.1 %8.1 %3.4 %
Net income as a percent of sales4.8 %5.9 %3.0 %
Adjusted EBITDA as a percent of sales1
11.2 %12.3 %8.9 %
Net income per common share
Basic$0.43 $0.69 (37.7)%$0.25 72.0 %
Diluted$0.43 $0.66 (34.8)%$0.25 72.0 %



David Duvall, the Company's President and Chief Executive Officer, said, "Our business is in a significantly better position today than we were just two years ago. Through our "Must Win Battles," we have significantly improved our operational efficiency and finalized the implementation of our market-based pricing. Our diversification across multiple industries has reduced our exposure to specific industry cycles and we provide customers with sole sourced products that are foundational to their long-term growth plans. During this current demand slow down we are focused on continuous improvements to reduce overall cost and invest for growth. Our opportunity pipeline is over $200 million and remains strong as the products and processes we provide are the desired solution for many applications. Core provides key components and solutions to blue chip customers in major industries whose products will be in demand for many years.

“We are well positioned to now focus on growing the business. We are, and will continue to, invest in our sales development structure and technical capabilities. Our technical, engineered solutions allow us to work on new environmentally friendly and sustainable products, which positions Core Molding well for infrastructure project opportunities driven by the Buy America, Build America (BABA) Act. There is a growing need for recyclable durable lightweight solutions in all industries we serve."

John Zimmer, the Company’s EVP and Chief Financial Officer, commented, “Last quarter, we signaled double-digit sales declines for 2024 compared to 2023, and we expect the first half of 2024 declines to be higher than second half 2024 declines. First quarter aligned with our expectations due to tougher comparisons from channel de-stocking and demand shifts in end markets. We anticipate second quarter 2024 demand levels to be similar to first quarter 2024 demand levels. We still anticipate a full year sales decrease of 10% to 15%, consistent with previous guidance.

“Despite product mix shifts and operational de-leverage in the first quarter, I want to highlight that we held our gross margins to 17.0%, which improved over the fourth quarter of 2023. As we anticipated future sales demand decreases at the end of 2023, the Company expeditiously executed our cost reduction plans in order to maintain gross margin within our targeted range.

"The Company is well positioned operationally to continue to adjust for changing demand levels. Our financial position is strong, and at March 31st 2024, we had approximately $77 million of available liquidity to make investments in both organic and inorganic opportunities. We also generated Free Cash Flow1 this quarter of over $3 million, higher than the year-ago period. "

1Free Cash Flow is a non-GAAP financial measure as defined and reconciled below.

2024 Capital Expenditures

The Company’s capital expenditures for first quarter 2024 were $1.9 million. The Company anticipates spending approximately $13 million, during 2024 on property, plant and equipment purchases for all of the Company's operations.

Financial Position at March 31, 2024

The Company’s total liquidity at the end of the first fiscal quarter 2024 was $76.6 million, with $26.6 million in cash, $25.0 million of undrawn capacity under the Company’s revolving credit facility and $25.0 million of undrawn capacity under the Company's capex credit facility. The Company’s term debt was $22.7 million at March 31, 2024. The term debt-to-trailing twelve months Adjusted EBITDA1 was less than one times Adjusted EBITDA1 at the end of the fiscal first quarter. The Company had a return on capital employed1 of 14.0% for the trailing twelve months.

1 Adjusted EBITDA and return on capital employed are non-GAAP financial measures as defined and reconciled below.





Conference Call

The Company will conduct a conference call today at 10:00 a.m. Eastern Time to discuss financial and operating results for the quarter ended March 31, 2024. To access the call live by phone, dial (844) 881-0134 and ask for the Core Molding Technologies call at least 10 minutes prior to the start time. A telephonic replay will be available through May 14, 2024, by calling (877) 344-7529 and using passcode ID: 6650623#. A webcast of the call will also be available live and for later replay on the Company’s Investor Relations website at www.coremt.com/investor-relations/events-presentations/.

About Core Molding Technologies, Inc.

Core Molding Technologies is a leading engineered materials company specializing in molded structural products, principally in building products, utilities, transportation and powersports industries across North America. The Company operates in one operating segment as a molder of thermoplastic and thermoset structural products. The Company’s operating segment consists of one reporting unit, Core Molding Technologies. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound (“SMC”), resin transfer molding (“RTM”), liquid molding of dicyclopentadiene (“DCPD”), spray-up and hand-lay-up, direct long-fiber thermoplastics (“DLFT”) and structural foam and structural web injection molding (“SIM”). Core Molding Technologies serves a wide variety of markets, including the medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products. The demand for Core Molding Technologies’ products is affected by economic conditions in the United States, Mexico, and Canada. Core Molding Technologies’ operations may change proportionately more than revenues from operations.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: dependence on certain major customers, and potential loss of any major customer due to completion of existing production programs or otherwise; general macroeconomic, social, regulatory and political conditions, including uncertainties surrounding volatility in financial markets; changes in the plastics, transportation, marine and commercial product industries (including changes in demand for production), efforts of the Company to expand its customer base and develop new products to diversify markets, materials and processes and increase operational enhancements; the Company’s initiatives to quote and execute manufacturing processes for new business, acquire raw materials, address inflationary pressures, regulatory matters and labor relations; the Company’s financial position or other financial information; and other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and our subsequent quarterly reports, all of which are available on the SEC and Company website. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.



Company Contact:
Core Molding Technologies, Inc.
John Zimmer
Executive Vice President & Chief Financial Officer
614-870-5604

Investor Relations Contact:
Three Part Advisors, LLC
Sandy Martin or Steven Hooser
214-616-2207


- Financial Statements Follow –




Core Molding Technologies, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except share and per share data)
Three months ended March 31,
20242023
Net sales:
Products$75,831 $98,337 
Tooling2,314 1,170 
Total net sales78,145 99,507 
Total cost of sales64,840 81,764 
Gross margin13,305 17,743 
Selling, general and administrative expense8,573 9,668 
Operating income4,732 8,075 
Other income and expense
Net interest expense82 356 
Net periodic post-retirement benefit(138)(52)
Total other (income) and expense(56)304 
Income before income taxes4,788 7,771 
Income tax expense1,029 1,919 
Net income$3,759 $5,852 
Net income per common share:
Basic$0.43 $0.69 
Diluted$0.43 $0.66 




Core Molding Technologies, Inc.
Product Sales by Market
(unaudited, in thousands)


Three months ended
March 31,
20242023
Medium and heavy-duty truck$41,509 $49,516 
Power sports18,859 22,036 
Building products6,545 11,787 
Industrial and utilities3,346 6,430 
All other5,572 8,568 
Net product revenue$75,831 $98,337 


Core Molding Technologies, Inc.
Consolidated Balance Sheets
(in thousands)
As of
March 31,As of
2024December 31,
(unaudited)2023
Assets:
Current assets:
Cash and cash equivalents$26,618 $24,104 
Accounts receivable, net40,082 41,711 
Inventories, net23,861 22,063 
Prepaid expenses and other current assets12,676 15,001 
Total current assets103,237 102,879 
Right of use asset3,302 3,802 
Property, plant and equipment, net80,398 81,185 
Goodwill17,376 17,376 
Intangibles, net5,617 6,017 
Other non-current assets2,337 2,118 
Total Assets$212,267 $213,377 
Liabilities and Stockholders' Equity:
Liabilities:
Current liabilities:
Current portion of long-term debt$1,624 $1,468 
Accounts payable24,260 23,958 
Contract liabilities4,222 5,204 
Compensation and related benefits6,711 10,498 
Accrued other liabilities5,406 5,058 
Total current liabilities42,223 46,186 
Other non-current liabilities3,316 3,759 
Long-term debt21,061 21,519 
Post retirement benefits liability2,852 2,960 
Total Liabilities69,452 74,424 
Stockholders' Equity:
Common stock87 86 
Paid in capital44,004 43,265 
Accumulated other comprehensive income, net of income taxes5,007 5,301 
Treasury stock(32,111)(31,768)
Retained earnings125,828 122,069 
Total Stockholders' Equity142,815 138,953 
Total Liabilities and Stockholders' Equity$212,267 $213,377 



Core Molding Technologies, Inc.
Consolidated Statements of Cash Flows
(unaudited, in thousands)
Three months ended March 31,
20242023
Cash flows from operating activities:
Net income$3,759 $5,852 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization3,292 3,410 
Loss on disposal of property, plant and equipment— 80 
Share-based compensation739 731 
Losses (gain) on foreign currency(214)81 
Change in operating assets and liabilities:
Accounts receivable1,629 (8,240)
Inventories(1,798)(1,139)
Prepaid and other assets1,908 (450)
Accounts payable280 4,209 
Accrued and other liabilities(4,254)324 
Post retirement benefits liability(269)(211)
Net cash provided by operating activities5,072 4,647 
Cash flows from investing activities:
Purchase of property, plant and equipment(1,893)(2,127)
Net cash used in investing activities(1,893)(2,127)
Cash flows from financing activities:
Gross borrowings on revolving loans— (35,369)
Gross repayment on revolving loans— 33,505 
Payments for taxes related to net share settlement of equity awards(343)(23)
Payment on principal on term loans(322)(324)
Net cash used in financing activities(665)(2,211)
Net change in cash and cash equivalents2,514 309 
Cash and cash equivalents at beginning of period24,104 4,183 
Cash and cash equivalents at end of period$26,618 $4,492 
Cash paid for:
Interest$291 $345 
Income taxes$326 $1,931 
Non cash investing activities:
Fixed asset purchases in accounts payable$489 $262 




Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Core Molding management uses non-GAAP measures in its analysis of the Company's performance. Investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results available in the accompanying tables.

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) depreciation and amortization of long-lived assets, (iv) share based compensation expense, (v) plant closure costs, and (vi) nonrecurring legal settlement costs and associated legal expenses unrelated to the Company's core operations. Debt-to-trailing twelve months adjusted EBITDA represents total outstanding debt divided by trailing twelve months Adjusted EBITDA. Free Cash Flow represents net cash (used in) provided by operating activities less purchase of property, plant and equipment. Trailing twelve months return on capital employed represents the trailing twelve months earnings before (i) interest expense, net and (ii) provision (benefit) for income taxes divided by (i) stockholders' equity and (ii) current and long-term debt.

We present Adjusted EBITDA, Adjusted EBITDA as a percent of net sales, debt-to-trailing twelve months adjusted EBITDA, Free Cash Flow and trailing twelve months Return on Capital Employed because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to performance measure derived in accordance with GAAP as an indicator of our operating performance. Our calculation of these measures may not be comparable to similarly named measures reported by other companies. The following tables present reconciliations of net income to Adjusted EBITDA, and Cash Flow from Operating Activities to Free Cash Flow, the most directly comparable GAAP measures, and Debt to trailing twelve months adjusted EBITDA and trailing twelve months Return on Capital Employed, for the periods presented:



Core Molding Technologies, Inc.
Net Income to Adjusted EBITDA Reconciliation
(unaudited, in thousands)

Three months ended
March 31,December 31,
202420232023
Net income$3,759 $5,852 $2,182 
Provision for income taxes1,029 1,919 223 
Total other expenses(1)
(56)304 112 
Depreciation and amortization3,272 3,390 3,315 
Share-based compensation739 731 700 
Adjusted EBITDA$8,743 $12,196 $6,532 
Adjusted EBITDA as a percent of net sales11.2 %12.3 %8.9 %
(1)Includes net interest expense and non-cash periodic post-retirement benefit cost.

Core Molding Technologies, Inc.
Computation of Debt to Trailing Twelve Months Adjusted EBITDA
(unaudited, in thousands)
Q2 2023Q3 2023Q4 2023Q1 2024Trailing Twelve Months
Net income$7,936 $4,354 $2,182 $3,759 $18,231 
Provision for income taxes1,893 1,386 223 1,029 4,531 
Total other expenses(1)
241 135 112 (56)432 
Depreciation and amortization2,918 3,208 3,315 3,272 12,713 
Share-based compensation756 736 700 739 2,931 
Adjusted EBITDA$13,744 $9,819 $6,532 $8,743 $38,838 
Total Outstanding Term Debt as of March 31, 2024$22,685 
 Debt to Trailing Twelve Months Adjusted EBITDA
0.58 
(1)Includes net interest expense and non-cash periodic post-retirement benefit cost.


Core Molding Technologies, Inc.
Computation of Trailing Twelve Months Return on Capital Employed
(unaudited, in thousands)
Q2 2023Q3 2023Q4 2023Q1 2024Trailing Twelve Months
Operating Income$10,070 $5,875 $2,517 $4,732 $23,194 
Equity$142,815 
Structured Debt22,685 
Total Capital Employed
$165,500 
Return on Capital Employed14.0 %





Core Molding Technologies, Inc.
Free Cash Flow
Three Months Ended March 31, 2024 and 2023
(unaudited, in thousands)

20242023
Cash flow provided by operations$5,072 $4,647 
Purchase of property, plant and equipment(1,893)(2,127)
Free cash flow$3,179 $2,520 

v3.24.1.u1
Cover Page
May 07, 2024
May 09, 2023
Cover [Abstract]    
Document Type 8-K  
Document Period End Date May 07, 2024  
Entity Registrant Name Core Molding Technologies, Inc.  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-12505  
Entity Tax Identification Number 31-1481870  
Entity Address, Address Line One 800 Manor Park Drive  
Entity Address, City or Town Columbus  
Entity Address, State or Province OH  
Entity Address, Postal Zip Code 43228-0183  
City Area Code 614  
Local Phone Number 870-5000  
Written Communications false  
Soliciting Material false  
Pre-commencement Tender Offer false  
Pre-commencement Issuer Tender Offer false  
Title of 12(b) Security   Common Stock, par value $0.01
Trading Symbol   CMT
Security Exchange Name   NYSEAMER
Entity Emerging Growth Company false  
Document Information [Line Items]    
Document Period End Date May 07, 2024  
Entity Registrant Name Core Molding Technologies, Inc.  
Entity Central Index Key 0001026655  
Amendment Flag false  
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