COLUMBUS, Ohio, May 07, 2024 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE: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,     2024       2023     % Change     2023     % Change Net sales $ 78,145     $ 99,507     (21.5)%   $ 73,778     5.9 %                     Gross margin   13,305       17,743     (25.0)%     10,937     21.7 % Operating income   4,732       8,075     (41.4)%     2,517     88.0 % Net income   3,759       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 sales   17.0 %     17.8 %         14.8 %     Operating income as a percent of sales   6.1 %     8.1 %         3.4 %     Net income as a percent of sales   4.8 %     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 ZimmerExecutive Vice President & Chief Financial Officer614-870-5604 Investor Relations Contact:Three Part Advisors, LLCSandy Martin or Steven Hooser214-616-2207 - 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,     2024       2023   Net sales:       Products $ 75,831     $ 98,337   Tooling   2,314       1,170   Total net sales   78,145       99,507           Total cost of sales   64,840       81,764           Gross margin   13,305       17,743           Selling, general and administrative expense   8,573       9,668           Operating income   4,732       8,075           Other income and expense       Net interest expense   82       356   Net periodic post-retirement benefit   (138 )     (52 ) Total other (income) and expense   (56 )     304           Income before income taxes   4,788