Company: CVGI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022764
Chunk: 68

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 68
---
3% for the three months ended March 31, 2025 compared to 13.8% for the three months ended March 31, 2024. The decrease in gross profit margin was primarily due to lower sales volumes and increased freight costs. 

Selling, General and Administrative Expenses.  SG&A expenses decreased $0.2 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Liquidity and Capital Resources 

Our primary sources of liquidity as of March 31, 2025 were operating income, cash and availability under our credit facility. We believe that these sources of liquidity will provide adequate funds for our working capital needs, capital expenditures and debt service throughout the next twelve months. However, no assurance can be given that this will be the case. We also rely on the timely collection of receivables as a source of liquidity. As of March 31, 2025, we had outstanding letters of credit of $1.1 million and borrowing availability of $102.5 million from our U.S. and China credit facilities (subject to covenant limitations), in addition to $20.2 million of cash.

As of March 31, 2025, cash of $18.5 million was held by foreign subsidiaries. The Company had a $0.1 million deferred tax liability as of March 31, 2025 for the expected future income tax implications of repatriating cash from the foreign subsidiaries for which indefinite reinvestment is not expected.

Covenants and Liquidity

Our ability to comply with the covenants in the Credit Agreement, as discussed in Note 4, Debt, may be affected by economic or business conditions beyond our control. Based on our current forecast, we believe that we will be able to maintain compliance with the financial maintenance covenants and the fixed charge coverage ratio covenant and other covenants in the Credit Agreement for the next twelve months; however, no assurances can be given that we will be able to comply. We base our forecasts on historical experience, industry forecasts and other assumptions that we believe are reasonable under the circumstances. If actual results are substantially different than our current forecast, we may not be able to comply with our financial covenants. 

Sources and Uses of Cash

Three Months Ended March 31,20252024(In thousands)Net cash provided by (used in) operating activities$15,172 $(2,356)Net cash used in investing