Restatement of Previously Issued Consolidated Financial Statements (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables present the impacts of the restatement adjustments to the previously reported financial information for the period ended September 30, 2019. The restatement references identified in the following tables directly correlate to the restatement adjustments detailed below. The restatement adjustments and error correction and their impact on previously reported consolidated financial statements are described below.

(a) Understatement of cost of revenues and impacted balance sheet accounts - Corrections for the understatement of cost of revenues by improperly capitalizing certain manufacturing expenses. Balance sheet accounts adjusted as a result of the improper capitalization of expenses include other current assets, accounts receivable, net of allowances and construction in progress.

(b) Property, plant and equipment, net - We recorded an adjustment for a previously identified property, plant and equipment, net error unrelated to the understatement of cost of revenues and related balance sheet accounts misstatements. This PPE was no longer in service as of the year ended December 31, 2016.

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	As Previously Reported		Restatement Adjustments		As Restated		As Previously Reported		Restatement Adjustments		As Restated		Restatement References
Revenues	$	225,399	$	—	$	225,399	$	711,753	$	—	$	711,753
Cost of Revenues	194,195		1,760		195,955		612,206		4,578		616,784		a, b
Gross profit	31,204		(1,760)		29,444		99,547		(4,578)		94,969
Selling, General and Administrative Expenses	17,531		—		17,531		48,978		—		48,978
Amortization Expense	437		—		437		1,080		—		1,080
Operating Income	13,236		(1,760)		11,476		49,489		(4,578)		44,911
Interest and Other Expense	3,800		—		3,800		15,686		—		15,686
Income before provision for income taxes	9,436		(1,760)		7,676		33,803		(4,578)		29,225		a, b
Provision for Income Taxes	916		(420)		496		6,976		(1,063)		5,913		a, b
Net Income	$	8,520	$	(1,340)	$	7,180	$	26,827	$	(3,515)	$	23,312
Income per share attributable to common stockholders:
Basic	$	0.28	$	(0.04)	$	0.23	$	0.88	$	(0.12)	$	0.76
Diluted	$	0.28	$	(0.04)	$	0.23	$	0.87	$	(0.11)	$	0.76
Weighted average common shares outstanding:
Basic	30,581		30,581		30,581		30,547		30,547		30,547
Diluted	30,852		30,852		30,852		30,829		30,829		30,829

For the three months ended September 30, 2019

    (a) Understatement of cost of revenues and impacted balance sheet accounts. As a result of the understatement of cost of revenues, the correction resulted in a $1.7 million increase in cost of revenues; a $0.4 million decrease in provision for income taxes; and a $1.3 million decrease in net income.

    (b) Property, plant and equipment, net error correction. The immaterial error correction of property, plant and equipment, net, resulted in an immaterial decrease in cost of revenues; an immaterial increase in provision for income taxes; and an immaterial increase in net income.

For the nine months ended September 30, 2019

    (a) Understatement of cost of revenues and impacted balance sheet accounts. As a result of the understatement of cost of revenues, the correction resulted in a $4.7 million increase in cost of revenues; a $1.1 million decrease in provision for income taxes; and a $3.6 million decrease in net income.

    (b) Property, plant and equipment, net error correction. The immaterial error correction of property, plant and equipment, net, resulted in a $0.1 million decrease in cost of revenues; an immaterial increase in provision for income taxes; and a $0.1 million increase in net income.

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	As Previously Reported		Restatement Adjustments		As Restated		As Previously Reported		Restatement Adjustments		As Restated		Restatement References
Net Income	$	8,520	$	(1,340)	$	7,180	$	26,827	$	(3,515)	$	23,312	a, b
Other comprehensive income (loss):					—						—
Foreign currency translation adjustments	(3,388)		—		(3,388)		(3,051)		—		(3,051)
Minimum pension liability, net of tax	(2,095)		—		(2,095)		(1,005)		—		(1,005)
Derivative instrument	(515)		—		(515)		(193)		—		(193)
Other comprehensive income	(5,998)		—		(5,998)		(4,249)		—		(4,249)
Comprehensive income	$	2,522	$	(1,340)	$	1,182	$	22,578	$	(3,515)	$	19,063

For the three months ended September 30, 2019

    (a) Understatement of cost of revenues and impacted balance sheet accounts. As a result of the understatement of cost of revenues, the correction resulted in a $1.3 million decrease in net income. Refer to descriptions of the adjustments and their impacts to net income above.

    (b) Property, plant and equipment, net error correction. The immaterial error correction of property, plant and equipment, net, resulted in an immaterial increase in net income. Refer to descriptions of the adjustment and its impact to net income above.

For the nine months ended September 30, 2019

    (a) Understatement of cost of revenues and impacted balance sheet accounts. As a result of the understatement of cost of revenues, the correction resulted in a $3.6 million decrease in net income. Refer to descriptions of the adjustments and their impacts to net income above.

    (b) Property, plant and equipment, net error correction. The immaterial error correction of property, plant and equipment, net, resulted in a $0.1 million increase in net income. Refer to descriptions of the adjustment and its impact to net income above.

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30, 2019
	As Previously Reported		Restatement Adjustments		As Restated		Restatement References
Cash Flows from Operating Activities:
Net Income	$	26,827	$	(3,515)	$	23,312	a, b
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	10,976		(111)		10,865		b
Non-cash amortization of debt financing costs	1,030		—		1,030
Shared-based compensation expense	2,200		—		2,200
Deferred income taxes	2,903		(1,063)		1,840		a, b
Non-cash loss / (gain) on derivative contracts	2,092		—		2,092
Change in other operating items:
Accounts receivable	(19,765)		(689)		(20,454)		a
Inventories	1,191		—		1,191
Prepaid expenses	(7,458)		4,851		(2,607)		a
Accounts payable	3,272		—		3,272
Other operating activities, net	5,767		—		5,767
Net cash provided by operating activities	29,035		(527)		28,508
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(19,270)		527		(18,743)		a
Proceeds from disposal/sale of property, plant and equipment	20		—		20
Payments for acquisitions	(34,000)		—		(34,000)
Net cash used in investing activities	(53,250)		527		(52,723)
Cash Flows from Financing Activities:
Borrowings on Revolving Credit Facility	8,500		—		8,500
Repayment of Revolving Credit Facility	(8,500)		—		(8,500)
Repayment of Term Loan	(6,338)		—		(6,338)
Other financing activities	(381)		—		(381)
Net cash used in financing activities	(6,719)		—		(6,719)
Effect of Foreign Currency Exchange Rate Changes on Cash	(1,276)		—		(1,276)
Net Decrease in Cash	(32,210)		—		(32,210)
Cash:
Beginning of period	70,913		—		70,913
End of period	$	38,703	$	—	$	38,703
Supplemental Cash Flow Information:
Cash paid for interest	$	10,212	$	—	$	10,212
Cash paid for income taxes, net	$	5,530	$	—	$	5,530
Unpaid purchases of property and equipment included in accounts payable	$	155	$	—	$	155

For the nine months ended September 30, 2019

    (a) Understatement of cost of revenues and impacted balance sheet accounts. As a result of the understatement of cost of revenues, the correction resulted in a $3.6 million decrease in net income; a $1.1 million decrease in deferred income tax; a $0.7 million increase in change in accounts receivable, a $4.9 million decrease in change in prepaid expenses; and a $0.5 million decrease in purchases of property, plant and equipment.

    (b) Property, plant and equipment, net error correction. The immaterial error correction of property, plant and equipment, net, resulted in a $0.1 million increase in net income; a $0.1 million decrease in depreciation expense; and an immaterial increase in deferred income tax.