Cooper Tire & Rubber Company Reports Third Quarter 2019 Results

FINDLAY, Ohio–(BUSINESS WIRE)–Cooper Tire & Rubber Company (NYSE: CTB) today reported third quarter 2019 net income of $29 million, or diluted earnings per share of $0.58, compared with $54 million, or $1.07 per share, last year.

Third Quarter Highlights

  • Net sales decreased 4.5 percent to $704 million.
  • Unit volume decreased 7.0 percent compared to the third quarter of 2018.
  • Operating profit was $53 million, or 7.5 percent of net sales.

“Despite the continued impact of tariffs, we were pleased to deliver sequential operating profit margin improvement in the third quarter driven by positive trends in pricing, mix and raw materials,” said President & Chief Executive Officer Brad Hughes. “As expected, our volume was impacted by customer inventory actions in the U.S., as well as challenging market conditions in our other regions. Cooper continues to make progress on the strategic initiatives outlined at our Investor Day in 2018, including expansion into new channels and efforts to optimize our global manufacturing footprint, including our actions in the U.K. and new joint venture in Vietnam. We expect that the impact from our strategic initiatives will begin to make a more visible contribution to our results in 2020.”

Consolidated Results

Cooper Tire

 

Q3 2019

($M)

 

Q3 2018

($M)

 

Change

Net Sales

 

$

704

 

 

$

738

 

 

(4.5

%)

Operating Profit

 

$

53

 

 

$

81

 

 

(35.0

%)

Operating Margin

 

7.5

%

 

11.0

%

 

(3.5

) ppts.

Third quarter net sales were $704 million compared with $738 million in the third quarter of 2018, a decrease of 4.5 percent. Net sales included $54 million of lower unit volume and $7 million of unfavorable foreign currency impact, which were partially offset by $27 million of favorable price and mix.

Operating profit was $53 million compared with $81 million in the third quarter of 2018. Key drivers included:

  • $4 million benefit from lower product liability costs related to an adjustment of the company’s product liability reserve model in the third quarter of 2019, compared to a $31 million benefit in 2018 resulting from a similar adjustment. The impact of the variance in the model adjustment, partially offset by normal activity, including settlements and changes in the amounts of reserves, resulted in $23 million of higher net product liability expense for the third quarter of 2019.
  • $15 million of higher costs related to new tariffs on products imported into the United States from China compared to the same period a year ago.
  • $20 million of favorable price and mix and $24 million of favorable raw material costs (excluding the new tariffs).
  • $16 million impact of lower volume, $12 million of higher manufacturing costs and $6 million of higher all other costs.

Cooper’s third quarter raw material index decreased 6.9 percent compared to the third quarter of 2018. The raw material index decreased 2.9 percent sequentially from 161.8 in the second quarter of 2019 to 157.1 in the third quarter of 2019.

The effective tax rate for the third quarter was 21.0 percent compared with 22.6 percent for the same period the prior year. The effective tax rate is based on forecasted annual earnings and tax rates for the various jurisdictions in which the company operates.

At the end of the third quarter, Cooper had $137 million in unrestricted cash and cash equivalents compared with $209 million at the end of the third quarter of 2018. Capital expenditures in the third quarter were $50 million compared with $46 million in the same period a year ago. In addition, as of the end of the third quarter, the company had invested $49 million in its new joint venture with Sailun Vietnam, named ACTR Company Limited.

The company generated a return on invested capital, excluding the impact of the goodwill impairment charge in the fourth quarter of 2018, of 7.8 percent for the trailing four quarters.

Americas Tire Operations

Americas Tire Operations

 

Q3 2019

($M)

 

Q3 2018

($M)

 

Change

Net Sales

 

$

602

 

 

$

629

 

 

(4.3

%)

Operating Profit

 

$

68

 

 

$

87

 

 

(22.2

%)

Operating Margin

 

11.3

%

 

13.9

%

 

(2.6

) ppts.

Third quarter net sales in the Americas segment decreased 4.3 percent as a result of $51 million of lower unit volume and $1 million of unfavorable foreign currency impact, partially offset by $25 million of favorable price and mix. For the quarter, segment unit volume was down 8.2 percent compared to the same period a year ago.

Cooper’s third quarter total light vehicle tire shipments in the U.S. decreased 7.7 percent. The U.S. Tire Manufacturers Association (USTMA) reported that its member shipments of light vehicle tires in the U.S. were up 0.7 percent. Total industry shipments (including an estimate for non-USTMA members) increased 3.5 percent for the period. As previously stated, Cooper’s U.S. volume was impacted by customer inventory actions.

Third quarter operating profit was $68 million, or 11.3 percent of net sales, compared with $87 million, or 13.9 percent of net sales, for the same period in 2018. Operating profit included $23 million of favorable price and mix, and $22 million of favorable raw material costs (excluding the new tariffs). This was offset by $23 million related to product liability, $15 million of new tariffs, $13 million of volume, $6 million of manufacturing, $5 million of SG&A and $2 million of other costs compared to the same period a year ago.

International Tire Operations

International Tire Operations

 

Q3 2019

($M)

 

Q3 2018

($M)

 

Change

Net Sales

 

$

132

 

 

$

162

 

 

(18.6

%)

Operating (Loss)/Profit

 

$

(5

)

 

$

6

 

 

(180.6

%)

Operating Margin

 

(3.7

%)

 

3.7

%

 

(7.4

) ppts.

Third quarter net sales in the International segment decreased 18.6 percent as a result of $28 million of lower unit volume and $6 million of unfavorable foreign currency impact, partially offset by $4 million of favorable price and mix. Segment unit volume decreased 16.4 percent driven primarily by lower intercompany shipments.

The segment’s third quarter operating loss was $5 million compared with operating profit of $6 million in the third quarter of 2018. The quarter included $3 million of unfavorable price and mix and $2 million of favorable raw material costs. In addition, the quarter included $1 million of lower SG&A costs, which were more than offset by $3 million of volume, $6 million of manufacturing, $1 million of restructuring and $1 million of other costs compared to the same period a year ago.

Outlook

“Cooper expects fourth quarter operating profit margin to improve sequentially, with full year operating profit margin slightly above the 5.9 percent we reported for full year 2018, driven by positive trends in pricing, mix and raw materials,” said Hughes. “We expect continued global volume headwinds in the fourth quarter, but we anticipate growth in 2020 driven by our strategic initiatives and improving market conditions.”

Additional management expectations for 2019 include:

  • Capital expenditures to range between $180 and $200 million. This does not include capital contributions related to Cooper’s pro rata share of its joint venture with Sailun Vietnam or other potential manufacturing footprint investments.
  • An effective tax rate, excluding significant discrete items, to range between 23 and 26 percent.
  • Charges related to the Melksham, England restructuring to be in a range of $8 to $10 million.

These expectations include tariffs already in place, but do not include rate changes or additional tariffs that continue to be considered, but have not yet been imposed.

Third Quarter 2019 Conference Call Today at 10 a.m. Eastern

Management will discuss the financial and operating results for the third quarter, as well as the company’s business outlook, on a conference call for analysts and investors today at 10 a.m. EDT. The call may be accessed on the investor relations page of the company’s website at http://coopertire.com/Investors.aspx or at https://services.choruscall.com/links/ctb191028.html. Following the conference call, the webcast will be archived and available for 90 days at these websites.

A summary slide presentation of information related to the quarter is posted on the company’s website at http://investors.coopertire.com/Quarterly-Results.

Forward-Looking Statements

This release contains what the company believes are “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995, regarding projections, expectations or matters the company anticipates may happen with respect to the future performance of the industries in which it operates, the economies of the U.S. and other countries, or the performance of the company itself, which involve uncertainty and risk. Such forward-looking statements are generally, though not always, preceded by words such as “anticipates,” “expects,” “will,” “should,” “believes,” “projects,” “intends,” “plans,” “estimates,” and similar terms that connote a view to the future and are not merely recitations of historical fact. Such statements are made solely on the basis of the company’s current views and perceptions of future events, and there can be no assurance that such statements will prove to be true.

It is possible that actual results may differ materially from projections or expectations due to a variety of factors, including, but not limited to:

  • volatility in raw material and energy prices, including those of rubber, steel, petroleum-based products and natural gas or the unavailability of such raw materials or energy sources;
  • the failure of the company’s suppliers to timely deliver products or services in accordance with contract specifications;
  • changes to tariffs or trade agreements, or the imposition of new or increased tariffs or trade restrictions, imposed on tires, materials or manufacturing equipment which the company uses, including changes related to tariffs on tires, raw materials and tire manufacturing equipment imported into the U.S. from China or other countries;
  • changes in economic and business conditions in the world, including changes related to the United Kingdom’s decision to withdraw from the European Union;
  • the inability to obtain and maintain price increases to offset higher production, tariffs or material costs;
  • the impact of labor problems, including labor disruptions at the company, its joint ventures, or at one or more of its large customers or suppliers;
  • a disruption in, or failure of, the company’s information technology systems, including those related to cybersecurity, could adversely affect the company’s business operations and financial performance;
  • the impact of the recently enacted tax reform legislation;
  • increased competitive activity including actions by larger competitors or lower-cost producers;
  • the failure to achieve expected sales levels;
  • changes in the company’s customer or supplier relationships or distribution channels, including the write-off of outstanding accounts receivable or loss of particular business for competitive, credit, liquidity, bankruptcy, restructuring or other reasons;
  • the failure to develop technologies, processes or products needed to support consumer demand or changes in consumer behavior, including changes in sales channels;
  • the costs and timing of restructuring actions and impairments or other charges resulting from such actions, including the possible outcome of the decision to cease light vehicle tire production in the U.K., or from adverse industry, market or other developments;
  • consolidation or other cooperation by and among the company’s competitors or customers;
  • inaccurate assumptions used in developing the company’s strategic plan or operating plans, or the inability or failure to successfully implement such plans or to realize the anticipated savings or benefits from strategic actions;
  • risks relating to investments and acquisitions, including the failure to successfully integrate them into operations or their related financings may impact liquidity and capital resources;
  • the ultimate outcome of litigation brought against the company, including product liability claims, which could result in commitment of significant resources and time to defend and possible material damages against the company or other unfavorable outcomes;
  • government regulatory and legislative initiatives including environmental, healthcare, privacy and tax matters;
  • volatility in the capital and financial markets or changes to the credit markets and/or access to those markets;
  • changes in interest or foreign exchange rates or the benchmarks used for establishing the rates;
  • an adverse change in the company’s credit ratings, which could increase borrowing costs and/or hamper access to the credit markets;
  • failure to implement information technologies or related systems, including failure by the company to successfully implement ERP systems;
  • the risks associated with doing business outside of the U.S.;
  • technology advancements;
  • the inability to recover the costs to refresh existing products or develop and test new products or processes;
  • failure to attract or retain key personnel;
  • changes in pension expense and/or funding resulting from the company’s pension strategy, investment performance of the company’s pension plan assets and changes in discount rate or expected return on plan assets assumptions, or changes to related accounting regulations;
  • changes in the company’s relationship with its joint venture partners or suppliers, including any changes with respect to its former PCT joint venture’s production of TBR products;
  • the ability to find and develop alternative sources for TBR products;
  • a variety of factors, including market conditions, may affect the actual amount expended on stock repurchases; the company’s ability to consummate stock repurchases; changes in the company’s results of operations or financial conditions or strategic priorities may lead to a modification, suspension or cancellation of stock repurchases, which may occur at any time;
  • the inability to adequately protect the company’s intellectual property rights; and
  • the inability to use deferred tax assets.

It is not possible to foresee or identify all such factors. Any forward-looking statements in this release are based on certain assumptions and analyses made by the company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that any such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected.

The company makes no commitment to update any forward-looking statement included herein or to disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement. Further information covering issues that could materially affect financial performance is contained in the company’s filings with the U.S. Securities and Exchange Commission (“SEC”).

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures as defined under SEC rules. Non-GAAP financial measures should be considered in addition to, not as a substitute for, operating profit, net income, earnings per share or other financial measures prepared in accordance with generally accepted accounting principles (“GAAP”). The company’s methods of determining these non-GAAP financial measures may differ from the methods used by other companies for these or similar non-GAAP financial measures. Accordingly, these non-GAAP financial measures may not be comparable to measures used by other companies. As required by SEC rules, detailed reconciliations between the company’s GAAP and non-GAAP financial results are provided on the attached schedule. The company believes return on invested capital (“ROIC”) provides additional insight for analysts and investors in evaluating the company’s financial and operating performance. The company defines ROIC as the trailing four quarters’ after tax operating profit, exclusive of certain items affecting comparability of results from period to period and utilizing the company’s adjusted effective tax rate, divided by the total invested capital, which is the average of ending debt and equity for the last five quarters. The company believes ROIC is a useful measure of how effectively the company uses capital to generate profits.

About Cooper Tire & Rubber Company

Cooper Tire & Rubber Company (NYSE: CTB) is the parent company of a global family of companies that specializes in the design, manufacture, marketing and sale of passenger car, light truck, medium truck, motorcycle and racing tires. Cooper’s headquarters is in Findlay, Ohio, with manufacturing, sales, distribution, technical and design operations within its family of companies located in more than one dozen countries around the world. For more information on Cooper, visit www.coopertire.com, www.facebook.com/coopertire or www.twitter.com/coopertire.

Cooper Tire & Rubber Company

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

 

(Dollar amounts in thousands except per share amounts)

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Net sales

 

$

704,134

 

 

$

737,671

 

 

$

2,002,428

 

 

$

2,037,575

 

Cost of products sold

 

589,768

 

 

597,724

 

 

1,700,662

 

 

1,718,920

 

Gross profit

 

114,366

 

 

139,947

 

 

301,766

 

 

318,655

 

Selling, general and administrative expense

 

60,786

 

 

58,746

 

 

183,452

 

 

178,236

 

Restructuring expense

 

811

 

 

 

 

7,442

 

 

 

Operating profit

 

52,769

 

 

81,201

 

 

110,872

 

 

140,419

 

Interest expense

 

(7,476

)

 

(7,930

)

 

(23,599

)

 

(24,038

)

Interest income

 

1,507

 

 

2,399

 

 

6,887

 

 

6,702

 

Other pension and postretirement benefit expense

 

(9,562

)

 

(6,932

)

 

(28,212

)

 

(20,885

)

Other non-operating expense

 

(509

)

 

2,922

 

 

(593

)

 

(129

)

Income before income taxes

 

36,729

 

 

71,660

 

 

65,355

 

 

102,069

 

Provision for income taxes

 

7,721

 

 

16,227

 

 

19,908

 

 

21,944

 

Net income

 

29,008

 

 

55,433

 

 

45,447

 

 

80,125

 

Net (loss) income attributable to noncontrolling shareholders’ interests

 

(336

)

 

1,720

 

 

301

 

 

3,120

 

Net income attributable to Cooper Tire & Rubber Company

 

$

29,344

 

 

$

53,713

 

 

$

45,146

 

 

$

77,005

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

 

$

1.07

 

 

$

0.90

 

 

$

1.53

 

Diluted

 

$

0.58

 

 

$

1.07

 

 

$

0.90

 

 

$

1.52

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (000s):

 

 

 

 

 

 

 

 

Basic

 

50,179

 

 

50,065

 

 

50,148

 

 

50,443

 

Diluted

 

50,358

 

 

50,279

 

 

50,366

 

 

50,678

 

 

 

 

 

 

 

 

 

 

Segment information:

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

Americas Tire

 

$

601,957

 

 

$

628,704

 

 

$

1,699,201

 

 

$

1,698,507

 

International Tire

 

132,270

 

 

162,401

 

 

414,569

 

 

491,484

 

Eliminations

 

(30,093

)

 

(53,434

)

 

(111,342

)

 

(152,416

)

 

 

 

 

 

 

 

 

 

Operating profit (loss):

 

 

 

 

 

 

 

 

Americas Tire

 

$

67,941

 

 

$

87,353

 

 

$

153,544

 

 

$

159,068

 

International Tire

 

(4,831

)

 

5,994

 

 

(7,466

)

 

19,080

 

Unallocated corporate charges

 

(11,051

)

 

(12,518

)

 

(34,781

)

 

(38,188

)

Eliminations

 

710

 

 

372

 

 

(425

)

 

459

 

Cooper Tire & Rubber Company

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

 

 

(Dollar amounts in thousands)

 

 

 

 

 

 

September 30,

 

 

2019

 

2018

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

137,093

 

 

$

208,616

 

Notes receivable

 

8,647

 

 

7,819

 

Accounts receivable

 

617,753

 

 

616,200

 

Inventories

 

566,880

 

 

531,362

 

Other current assets

 

48,501

 

 

53,897

 

Total current assets

 

1,378,874

 

 

1,417,894

 

 

 

 

 

 

Property, plant and equipment, net

 

1,011,792

 

 

964,404

 

Operating lease right-of-use assets, net

 

86,285

 

 

 

Goodwill

 

18,851

 

 

52,725

 

Intangibles, net

 

113,510

 

 

122,875

 

Deferred income tax assets

 

24,256

 

 

47,043

 

Investment in joint venture

 

48,936

 

 

 

Other assets

 

14,112

 

 

7,946

 

Total assets

 

$

2,696,616

 

 

$

2,612,887

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

Notes payable

 

$

16,188

 

 

$

14,831

 

Accounts payable

 

253,821

 

 

252,551

 

Accrued liabilities

 

305,477

 

 

269,862

 

Income taxes payable

 

15,787

 

 

17,407

 

Current portion of long-term debt and finance leases

 

173,578

 

 

1,376

 

Total current liabilities

 

764,851

 

 

556,027

 

 

 

 

 

 

Long-term debt and finance leases

 

120,657

 

 

294,841

 

Noncurrent operating leases

 

60,335

 

 

 

Postretirement benefits other than pensions

 

234,773

 

 

255,980

 

Pension benefits

 

106,577

 

 

146,198

 

Other long-term liabilities

 

140,960

 

 

131,332

 

Total parent stockholders’ equity

 

1,209,110

 

 

1,167,544

 

Noncontrolling shareholders’ interests in consolidated subsidiaries

 

59,353

 

 

60,965

 

Total liabilities and equity

 

$

2,696,616

 

 

$

2,612,887

 

Cooper Tire & Rubber Company

Consolidated Statements of Cash Flows

(Unaudited)

 

(Dollar amounts in thousands)

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2019

 

2018

Operating activities:

 

 

Net income

 

$

45,447

 

 

$

80,125

 

Adjustments to reconcile net income to net cash (used in) provided by operations:

 

 

 

 

Depreciation and amortization

 

111,518

 

 

110,210

 

Stock-based compensation

 

3,473

 

 

3,867

 

Change in LIFO inventory reserve

 

2,438

 

 

1,134

 

Amortization of unrecognized postretirement benefits

 

27,314

 

 

27,535

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts and notes receivable

 

(80,571

)

 

(88,942

)

Inventories

 

(96,043

)

 

(24,957

)

Other current assets

 

(352

)

 

(9,190

)

Accounts payable

 

(2,492

)

 

6,500

 

Accrued liabilities

 

(5,350

)

 

(6,832

)

Other items

 

(19,795

)

 

(65,928

)

Net cash (used in) provided by operating activities

 

(14,413

)

 

33,522

 

Investing activities:

 

 

 

 

Additions to property, plant and equipment and capitalized software

 

(155,808

)

 

(143,974

)

Investment in joint venture

 

(49,001

)

 

 

Proceeds from the sale of assets

 

6

 

 

160

 

Net cash used in investing activities

 

(204,803

)

 

(143,814

)

Financing activities:

 

 

 

 

Issuances of short-term debt

 

1,488

 

 

2,467

 

Repayments of short-term debt

 

(588

)

 

(24,619

)

Repayments of long-term debt and finance lease obligations

 

(1,196

)

 

(1,203

)

Payment of financing fees

 

(2,207

)

 

(1,230

)

Repurchase of common stock

 

 

 

(30,183

)

Payments of employee taxes withheld from share-based awards

 

(1,376

)

 

(2,107

)

Payment of dividends to Cooper Tire & Rubber Company stockholders

 

(15,799

)

 

(15,880

)

Issuance of common shares related to stock-based compensation

 

114

 

 

 

Excess tax benefits on stock-based compensation

 

 

 

275

 

Net cash used in financing activities

 

(19,564

)

 

(72,480

)

Effects of exchange rate changes on cash

 

1,958

 

 

2,812

 

Net change in cash, cash equivalents and restricted cash

 

(236,822

)

 

(179,960

)

Cash, cash equivalents and restricted cash at beginning of period

 

378,246

 

 

392,306

 

Cash, cash equivalents and restricted cash at end of period

 

$

141,424

 

 

$

212,346

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,093

 

 

$

208,616

 

Restricted cash included in Other current assets

 

2,850

 

 

1,311

 

Restricted cash included in Other assets

 

1,481

 

 

2,419

 

Total cash, cash equivalents and restricted cash

 

$

141,424

 

 

$

212,346

 

Cooper Tire & Rubber Company

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RETURN ON INVESTED CAPITAL (ROIC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trailing Four Quarters Ended September 30, 2019

 

 

Calculation of ROIC

 

 

 

 

 

Calculation of Net Interest Tax Effect

 

 

Adjusted (Non-GAAP) operating profit

 

 

 

$

169,524

 

 

Provision for income taxes (c)

 

$

31,459

 

 

 

Adjusted (Non-GAAP) effective tax rate

 

28.3

%

 

 

 

Adjusted (Non-GAAP) income before income taxes (d)

 

$

111,169

 

 

 

Income tax expense on operating profit

 

47,973

 

 

 

 

Adjusted (Non-GAAP) effective income tax rate (c)/(d)

 

28.3

%

 

 

Adjusted operating profit after taxes (a)

 

 

 

121,551

 

 

 

 

 

 

 

 

 

Total invested capital (b)

 

 

 

$

1,558,772

 

 

 

 

 

 

 

 

 

ROIC, including noncontrolling equity (a)/(b)

 

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Invested Capital (five quarter average)

 

Equity

 

Long-term debt and finance leases

 

Current portion of long-term debt and finance leases

 

Notes payable

 

Total invested capital

 

 

 

 

September 30, 2019

 

$

1,268,463

 

 

$

120,657

 

 

$

173,578

 

 

$

16,188

 

 

$

1,578,886

 

 

 

 

 

June 30, 2019

 

1,254,026

 

 

120,624

 

 

173,766

 

 

19,656

 

 

1,568,072

 

 

 

 

 

March 31, 2019

 

1,248,218

 

 

121,305

 

 

173,974

 

 

20,074

 

 

1,563,571

 

 

 

 

 

December 31, 2018

 

1,232,443

 

 

121,284

 

 

174,760

 

 

15,288

 

 

1,543,775

 

 

 

 

 

September 30, 2018

 

1,228,509

 

 

294,841

 

 

1,376

 

 

14,831

 

 

1,539,557

 

 

 

 

 

Five quarter average

 

$

1,246,332

 

 

$

155,742

 

 

$

139,491

 

 

$

17,207

 

 

$

1,558,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Trailing Four Quarter Income and Expense Inputs

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter-ended:

 

Operating profit as reported

 

Goodwill impairment charge*

 

Adjusted operating profit

 

Provision for income taxes as reported

 

Income before income taxes as reported

 

Goodwill impairment charge*

 

Adjusted income before income taxes

September 30, 2019

 

$

52,769

 

 

$

 

 

$

52,769

 

 

$

7,721

 

 

$

36,729

 

 

$

 

 

$

36,729

 

June 30, 2019

 

31,671

 

 

 

 

31,671

 

 

5,851

 

 

15,109

 

 

 

 

15,109

 

March 31, 2019

 

26,431

 

 

 

 

26,431

 

 

6,337

 

 

13,515

 

 

 

 

13,515

 

December 31, 2018

 

24,826

 

 

33,827

 

 

58,653

 

 

11,550

 

 

11,989

 

 

33,827

 

 

45,816

 

Trailing four quarters

 

$

135,697

 

 

$

33,827

 

 

$

169,524

 

 

$

31,459

 

 

$

77,342

 

 

$

33,827

 

 

$

111,169

 

*The Company recorded a non-cash goodwill impairment charge of $33,827 in the fourth quarter of 2018 related to the company’s Chinese joint venture.

Contacts

Investor Contact:
Jerry Bialek

419.424.4165

investorrelations@coopertire.com

Media Contact:
Anne Roman

419.429.7189

alroman@coopertire.com

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