Company: CVGI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022764
Chunk: 76

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 76
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 March 31, 2024.

Selling, General and Administrative Expenses. Selling, general and administrative ("SG&A") expenses consist primarily of wages and benefits and other expenses such as marketing, travel, legal, audit, rent and utilities costs, which are not directly or indirectly associated with the manufacturing of our products. SG&A expenses decreased $2.3 million compared to the three months ended March 31, 2024, primarily as a result of a decrease in incentive compensation expense. As a percentage of revenues, SG&A expense was 9.6% for the three months ended March 31, 2025 and 2024. The three months ended March 31, 2025 and 2024 results include charges of $0.2 million associated with restructuring programs.

Other (Income) Expense. Other expense decreased $0.3 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Interest Expense. Interest associated with our debt was $2.5 million and $2.2 million for the three months ended March 31, 2025 and 2024, respectively. The increase in interest expense primarily related to less benefit from the interest rate swap due to lower interest rates on variable rate debt during the current period.

Provision for Income Taxes. Income tax expense of $2.1 million and $0.7 million was recorded for the three months ended March 31, 2025 and 2024, respectively. The primary driver in the effective tax rate change is the company's losses in the U.S. while maintaining its full valuation allowance position on U.S. deferred tax assets.

Net Income (Loss) from continuing operations. Net loss from continuing operations was $3.1 million for the three months ended March 31, 2025 compared to net income of $1.4 million for the three months ended March 31, 2024. The decrease in net income is attributable to the factors noted above.

Segment Results

Global Seating Segment Results 

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

The table below sets forth certain Global Seating Segment operating data for the three months ended March 31 (dollars are in thousands):

 20252024$ Change% ChangeRevenues$73,408 $80,797 $(7,389)(9.1)%Gross profit9,091 10,846