Core Molding Technologies Reports Net Income of $8.2 Million for the Full Year 2020

March 22 (2021

Core Molding Technologies, Inc. released results for the full year and fourth quarter ended December 31, 2020.

The Company recorded net income of $8.2 million for the full year 2020 compared to a net loss of $15.2 million for the same period in 2019. Operational improvements in 2020 drove the increase in net income as the Company benefited from the completion of its turnaround started in the fourth quarter of 2018. For the fourth quarter 2020, the Company recorded a net loss $0.9 million compared to a net loss of $5.5 million for the fourth quarter of 2019. The 2020 fourth quarter net loss includes a one-time charge, net of tax, of $1.3 million from the successful refinancing of the Company’s debt in October 2020. Excluding the one-time charge, the Company would have recorded net income of $0.4 million in the fourth quarter 2020.

The Company’s net sales decreased $61.9 million or 22% for the full year 2020 to $222.4 million compared to $284.3 million in 2019. For the fourth quarter 2020, net sales increased $4.5 million or 8% to $60.7 million compared to the same period in 2019.

The Company generated cash flows from operations for the full year 2020 of $28.2 million compared to $16.7 million for the same period of 2019. Year over year improvement in cash flows from operations is a result of the Company’s operational improvements and focus on managing working capital.

Fourth Quarter 2020 Compared to Fourth Quarter 2019:

• Net sales were $60.7 million compared to $56.1 million.
• Product sales were $58.6 million compared to $54.6 million.
• Gross margin was 16.4% compared to 6.0%.
• Selling, general and administrative expenses were $7.0 million compared to $7.5 million.
• Goodwill impairment charge was $4.1 million for the three months ended December 31, 2019.
• Operating income was $3.0 million compared to operating loss of $4.1 million.
• Net loss was $0.9 million, or ($0.10) per share, compared to net loss of $5.5 million, or ($0.69) per share.


Year ended 2020 Compared to Year ended 2019:

• Net sales were $222.4 million compared to $284.3 million.
• Product sales were $210.6 million compared to $269.0 million.
• Gross margin was 15.5% compared to 7.6%.
• Selling, general and administrative expenses were $24.1 million compared to $28.9 million.
• Goodwill impairment charge was $4.1 million for the year ended December 31, 2019.
• Operating income was $10.4 million compared to operating loss of $11.5 million.
• Net income was $8.2 million, or $0.98 per share, compared to net loss of $15.2 million, or ($1.94) per share.

“We are now able to effectively leverage our ability to execute well by better serving our current customers and continuing our diversification of the business. With our expertise and industry leading breadth of composite and plastic processes we can offer complete solutions that are uniquely developed to maximize value for our customers’ applications,” said Duvall. “We are increasing our investment in materials development, technology and applications engineering to better understand the market needs and translate those to high value solutions for our customers. With more focus on environmental stewardship we are seeing increased interest in composite and plastic solutions that provide lighter weights, consolidation of components, and higher performance,” concluded David Duvall, President and Chief Executive Officer.

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