Good day, ladies and gentlemen and welcome to the Commercial Vehicle Group Q4 2015 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Later we will conduct the question-and-answer session and instructions will be given at that time. As a reminder, today's conference is being recorded. I'd now like to introduce your host for today’s conference, Mr. Terry Hammett, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Liz and welcome everyone to the conference call. Patrick Miller, President and Chief Executive Officer of Commercial Vehicle Group will provide a brief company update and Tim Trenary our Chief Financial Officer will provide commentary regarding our fourth quarter and full year 2015 financial results. Following the financial update we will open the call for questions. We would like to remind you that this conference call is being webcast. It may contain forward-looking statements, including but not limited to, expectations for future periods regarding market trends, cost saving initiatives and new product initiatives, among others. Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but are not limited to the economic conditions and markets in which CVG operates, fluctuation in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity, risks associated with conducting business in foreign countries and currencies and other risks detailed in our SEC filings. I will now turn the call over to Pat Miller.

Thank you, Terry. Good morning and welcome to our call everyone. In regards to our consolidated results for 2015, revenues were down for the full year of 2015 as compared to 2014 by 2%. Our global truck and bus segment revenues were up 6% versus prior year, while our global construction and agricultural segment revenues were down 14%. 2015 North American heavy duty production levels were near record high around 323,000 class 8 units. However consolidated results were negatively impacted by difficult market conditions for our global construction and Ag segments, and by the strength of the U.S. dollar and therefore unfavourable foreign currency translation. Net income for 2015 was 7.1 million down slightly compared to 2014 primarily as a result of an increase in the 2015 income tax provision compared to the prior year. Full year earnings per share as adjusted for special items was $0.29 in 2015 as compared to $0.30 in 2014. We are pleased with our cost discipline and therefore operating income pulled through in 2015 as adjusted for special items our operating income margins for 2015 was 4.9% up from 4.3% in 2014 that is an improvement of 60 basis points on lower year-over-year consolidated sales. Although our year-over-year top line performance was significantly down for our global construction and agricultural segment, we were pleased with the improved operating income year-over-year for GCA, primarily driven by focus cost reduction and operation improvement efforts. We started last year our focused effort to improve profitability and reverse losses in our operations in China and the UK. These operations required increased support targeted to improve quality, productivity and cost discipline. The changes started with bringing in Joseph Saoud, as the President of our GCA segment and have been bolstered by improved clarity of responsibility and short-term goals. We…

Good morning. As Pat mentioned 2015 heavy duty truck production in North America was at near record levels. North American medium duty truck production was also good, improving about 5% from the prior year. Our fiscal year 2015 financial results benefited from this. However North American heavy duty truck OEMs in the fourth quarter adjusted production schedules down to reflect softening orders and outside inventory levels. Our business is serving the global construction and agriculture end markets were adversely affected in 2015 by the generally soft demand in these markets, as well as foreign currency translation. Consolidated fourth quarter 2015 revenues were 184.7 million compared to 211.9 million in the prior period, a decrease of 12.8% primarily resulting from the aforementioned market conditions in the quarter. Operating income in the fourth quarter was 5.3 million compared to operating income of 9.5 million in the prior year period. This decrease in operating income reflects the decreased sales from the prior year period offset somewhat by an improvement in our gross profit margin from 12.6% to 13.2%. SG&A for the fourth quarter was 18.7 million compared to 16.9 million in the prior year period. We initiated in the fourth quarter restructuring and cost reduction actions to more closely align our business with the changing demand as a consequence of these actions we expect SG&A to decline in the first quarter of 2016 to $16 million to $17 million. Net loss was 2.3 million in the fourth quarter or $0.08 per diluted share compared to net income of 4.2 million or $0.15 per diluted share in the prior year period. Net loss in the fourth quarter reflects an income tax provision of 1.7 million notwithstanding the pre-tax loss for the quarter. Our cash provisioning and therefore our earnings in the fourth quarter were…

[Operator Instructions] Our first question is comes from the line of Mike Shlisky with Seaport Global. Your line is open.

I'm going to start off with a quick one about your top line. It sounds like what you're saying on the truck side [indiscernible] we could be somewhere down in the vicinity of 20% this year, maybe a little bit worse in North America, a little bit better elsewhere, in fact 5 to 7. I guess first, is that fair? And then on the construction and Ag side, it could also be down. But you do have some interesting-looking, brand-new programs. I was curious if you could give us maybe -- could that be down less than 10% in 2016, given some of the new stuff you have won?

Yes I don't, so we're looking at the top line for the year, I think the market forces and the various areas are probably going to overshadow some of the growth activities that we have, and so we've not come out publically I think with any direction on that on a specific nature but what we're seeing is as we launch these new programs. Many of them are ramping up in 2016 and then get to their full potential by 2017.

Okay, okay. Can you at least discuss some of your comments you made about protecting growth or protecting margins? You said that -- you mentioned these also in your comments today. Do you still anticipate on the downside here -- you have had a great performance, and it was down by a couple percent last few quarters, and, on the last decent upswing, getting some good operating leverage. On the downside here, do you think you can keep the operating leverage, the downside, to perhaps about 25% in 2015 just on your process, or might it get a little bit more dramatic, given some of the dramatic declines in some of the end markets? Thanks.

Mike, it is Tim. Let me answer your question impart by using 2015 as some context within which to maybe think about 2016. First of all with respect to the truck and bus segment, if you look back historically, at least sort over the period of time that I've been here. That group has done an exemplary job of leveraging the cost structure on the way up and maintaining that band, frankly staying at the upper end of that band and on the way down leveraging and staying within the band and generally at the lower end of that band. And as results regards to construction and agricultural [indiscernible] and to my comments a few moments ago, my prepared comments notwithstanding the reduced sales in construction and agriculture year over year in '15 compared to '14. Joseph and the team were actually able to deliver operating income, an improvement in operating income and swung to an operating income compared to an operating loss in the fourth quarter of '15 compared to '14 and taken together, if you think of truck and bus and Con-Ag for 2015 compared to '14 we had lower sales, somewhat lower sales in '15 and delivered about $4 million extra operating. So I think that that sort of behaviour in '15 compared to '14 and our ability to flex the cost structure in response to the sales [indiscernible] of what one might expect for 2016. And let me if I may go one step further and add to that that you know, the fact that we now we have in place our centrally light global procurement and logistics organization our lean manufacturing which we refer to as operational excellence is now up and running. We're starting to see the fruits of those labours and I think that's reflected in our margins last year. That will enhance our ability to reflect the changing marketplaces, but also the restructuring that Pat mentioned that we announced this past November of the facility restructuring and the executive realignment also. I mentioned facilitate the company's ability to react to the marketplaces and changes in 2016. So from my perspective the company has demonstrated in the history -- in history in the past to adjust to the changing marketplace, adjust its cost structure, flex within this band and so I think that you know you and the others might use that as guidance as what you might expect in 2016.

That's great color. Thank you. Maybe early, just want to confirm, you mentioned you will be cash-accretive in 2016. I wanted to confirm with you that that would be not the result of saying there's no borrowing. And then also, can you maybe just give us an overview of your covenants again? It sounds like you don't have any covenants on -- if you don't have anything borrowed on your revolver. If you could just give everybody a flavour as to how you plan to be from a net debt perspective as you exit 2016? Thank you.

Yes, to my comments we do in fact intend to be, project cash accretion in 2016, it's solely from operations, okay so no -- as we sit here today we don't intend to borrow any additional sums as regards our capital structure and more specifically our covenants, so Terry, as you know Terry Hammett is our Investor Relations Director but he's also our Treasurer, Terry could you give some color as to the covenants.

Sure absolutely Mike, I mean as you note we currently don't have any borrowings under any of our credit or debt facility, so although we have some reporting requirements, there aren’t any specific financial covenants that we're required to report on currently.

[Operator Instructions] I am not showing any further questions in queue at this time. I would like to turn the call back to Patrick Miller, Chief Executive Officer for closing remarks.

Well, I think I just want to thank everybody for joining us on the call, our investors and other affiliates. I think I would also like to reiterate that CVG has demonstrated capability of being able to manage our cost structure and line appropriate when we have got market changes and market swings. And we are doing that, I think we have demonstrated with the results that we have announced and the results we plan to achieve that we will continue to be proactive in how mange ourselves in the near-term. And as I mentioned earlier our intension is to still continue to keep our focus on our long-term targets and goals, which include growing our top line and developing innovative products and driving into the markets and new segments. So we are excited to be able to talk about more those things in the future. And we look forward to the next time we get a chance to talk. And I think I’ll -- thank you very much for your time. Have a good day.

So ladies and gentlemen, thank you for your participation in today's conference. This concludes the program and you may now disconnect. Everyone have a great weekend.