Earnings call transcript: Core Molding Technologies Q2 2025 misses EPS expectations

Core Molding Technologies Inc. (CMT) reported its Q2 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company’s EPS came in at $0.53, falling short of the $0.60 forecast, representing an 11.67% negative surprise. Revenue was reported at $79.2 million, below the expected $80.46 million, marking a 1.57% shortfall. Following the announcement, Core Molding’s stock declined by 1.73% in pre-market trading. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.21 out of 4, and current valuations suggest the stock is trading below its Fair Value.

Key Takeaways

• Core Molding missed EPS and revenue forecasts for Q2 2025.
• The stock saw a pre-market decline of 1.73% following the earnings release.
• The company is investing in expanding its capabilities and market reach, with a focus on SMC and DCPD molding.
• Core Molding is projecting a 4-6% sales decline in the second half of 2025.
• CEO Dave Duvall announced his planned retirement in May 2026, with Eric Palamaki named as his successor.

Company Performance

Core Molding Technologies experienced a challenging second quarter in 2025, with net sales decreasing by 10.7% year-over-year to $79.2 million. Despite the decline, the company maintained a gross margin of 18.1%, equating to $14.3 million. Net income was reported at $4.1 million, or $0.47 per diluted share. The company highlighted its strategic focus on expanding its product capabilities and entering new markets, such as aerospace and electric vehicles. InvestingPro data reveals the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 2.5, indicating strong financial flexibility to support its expansion plans.

Financial Highlights

• Revenue: $79.2 million, down 10.7% year-over-year
• Earnings per share: $0.53, missing the $0.60 forecast
• Gross margin: 18.1%
• Net income: $4.1 million
• Adjusted EBITDA: $6.5 million, 12% of sales
• Free cash flow: $5.2 million
• Total liquidity: $93.2 million

Earnings vs. Forecast

Core Molding’s Q2 2025 EPS of $0.53 was below the forecasted $0.60, marking an 11.67% negative surprise. Revenue also fell short of expectations, coming in at $79.2 million versus the projected $80.46 million. This performance contrasts with previous quarters where the company had met or exceeded expectations, indicating potential challenges in the current market environment.

Market Reaction

Following the earnings release, Core Molding’s stock price experienced a pre-market decline of 1.73%, trading at $16.50. This movement reflects investor concerns over the earnings miss and the company’s forecasted sales decline for the second half of 2025. The stock remains within its 52-week range, having previously reached a high of $18.71 and a low of $12.25. Despite recent volatility, InvestingPro analysis shows the stock has delivered a strong 19.33% return over the past six months, with additional ProTips and detailed technical analysis available to subscribers.

Outlook & Guidance

Looking ahead, Core Molding projects a 4-6% sales decline in the latter half of 2025. Despite current challenges, the company aims to return to $300 million in annual product revenues in the coming years. It is also investing $25 million in expanding its plant in Mexico to support the Volvo Mexico business, indicating a focus on long-term growth.

Executive Commentary

CEO Dave Duvall stated, "We see clear line of sight being back of product revenues of 300," highlighting the company’s growth ambitions. He also emphasized the potential of their portfolio capacity to support revenue growth up to $450 million. Duvall’s announcement of his retirement in May 2026, with Eric Palamaki as his successor, marks a significant leadership transition for the company.

Risks and Challenges

• Market Demand: The truck and powersports markets are experiencing a "great pause," affecting sales.
• Economic Conditions: Broader economic uncertainties could impact customer spending and demand.
• Supply Chain: Potential disruptions in supply chain logistics could affect production capabilities.
• Competition: Increasing competition in key markets may pressure margins and market share.
• Leadership Transition: The upcoming CEO transition could impact strategic continuity.

Q&A

During the earnings call, analysts questioned the company’s strategy to achieve $300 million in revenues and its expansion plans in Mexico. There was also interest in the potential market recovery in 2026 and the opportunities in the SMC market. Core Molding’s management reiterated their confidence in the company’s growth trajectory and strategic initiatives.

Full transcript - Core Molding Technologies Inc (CMT) Q2 2025:

Conference Operator: Good morning, everyone. Welcome to the Core Molding Technologies Second Quarter twenty twenty five Financial Results Conference Call. This time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.

I will now turn the call over to Sandy Martin, three part advisors. Please go ahead.

Sandy Martin, Three Part Advisors Representative, Three Part Advisors: Thank you, and good morning, everyone. We appreciate you joining us for the Core Molding Technologies conference call to review our second quarter twenty twenty five results. Joining me on the call today are the company’s President and CEO, Dave Duvall, as well as COO, Eric Palamaki and CFO, Alex Panda. This call is being webcast and can be accessed through coremt.com via an audio link on the Investor Relations Events and Presentations page. Today’s conference call, including the Q and A session will be recorded.

Please be advised that anytime sensitive information may no longer be accurate as of the date of any replay or transcript reading. I would also like to remind you that the statements made in today’s discussion that are not historical facts, including statements or expectations or future events or future financial performance are forward looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements are uncertain and outside the company’s control. Actual results may differ materially from those expressed or implied. Please refer to today’s earnings press release for our disclosures on forward looking statements.

These factors and other risks and uncertainties are described in detail in the company’s filings with the Securities and Exchange Commission. Core Molding Technologies assumes no obligation to update or revise any forward looking statements publicly. Management will refer to non GAAP measures, including adjusted EPS, adjusted EBITDA, the debt to trailing twelve months EBITDA ratio, free cash flow and return on capital employed. Reconciliations to the nearest GAAP can be found at the end of our earnings release. Our earnings release has been submitted to the SEC on Form eight ks.

Now, I would like to turn the call over to the company’s President and CEO, Dave Twal.

Dave Duvall, President and CEO, Core Molding Technologies: Thank you, Sandy, and thank you all for joining us today. Today, I’m excited to share that we’ve made major steps forward in our invest for growth strategy with respect to exceeding our targets for new business wins and a major organic growth investment as part of our capital allocation strategy. First, we successfully won $47,000,000 of new business in the first six months of the year with 99% of that being incremental. This exceeds our twenty twenty four full year new wins of $45,000,000 I’m incredibly proud of our team for their hard work, multi functional collaboration, and full organizational engagement around driving this significant investor growth milestone. We continue to add resources to our sales and marketing function to attack new markets with wins in aerospace, like satellite receiver bases and both EV cars and buses.

We are seeing success with our campaign to market and sell our SMC or sheet molding compound. As we stated earlier, this has a short quote to cash cycle and we’ve developed the available capacity. Utilizing AI programs for lead generation, we have identified immediately addressable opportunities of over $200,000,000 in SMC alone, and we’re currently in discussions with many of those potential customers today. We are seeing that all the advancements we’ve made in our capacity, consistency and performance of our SMC formulations are providing a competitive advantage in the market. This is an exciting new revenue stream for our business that is already providing new revenues.

We are gaining momentum in our invest for growth strategy and it’s truly exciting to see the entire organization engage in supporting our many customer focused initiatives. Our new wins this year include being awarded the Volvo Mexico truck business. I’m proud of our team’s success and our ongoing ability to deliver on what we commit. Winning this program and partnering with Volvo on their new Mexican facility is a rewarding accomplishment for all of us. We are proud to be a trusted partner as they launch production from their new manufacturing site in Mexico, and I think it demonstrates the continued evolution and development of our organization’s ability to continually improve, which is at the heart of our business goals.

Secondly, to support the new business and anticipated additional future business, we are investing $25,000,000 including an expansion of our Matamoros plant and a new plant and equipment in Monterrey, Mexico. Organic growth has been our highest priority for our capital allocation strategy and making this investment not only launches a major truck program, but adds DCPD molding or reaction injection molding and top coat paint capabilities to our Monterey facility. We’re excited about making these investments in our organic growth by adding capacity and capabilities to our Matamoros and Monterey locations, as we have known incremental wins that support the investment model. The launch of DCPD molding in Monterey puts us closer to other large customers that value this process, and with the addition of Topcoat Paint, we are able to provide the customer a fully molded, assembled and top coated painted product. Our Voice of the Customer program has clearly shown us the need for Topcoat Paint, especially in industries like construction and agricultural machinery and aerial lifts.

This is a major step in our capital allocation strategy, and we look forward to continuing to grow our business with Volvo and other customers as we increase our capabilities and develop new revenue streams. These are long term programs which we anticipate will provide revenues of $150,000,000 over the next seven to ten years. I’m truly excited to share these new wins and expansion investments as they embody the significant progress we’ve made in our sales and marketing function and across our entire organization. With the new wins from this year and prior year, we expect that we would be back over $300,000,000 of annual product revenues in the next few years, even at the current truck and powersports demand levels. When you factor in the magnitude of new wins on top of our continued margin expansion initiatives, it makes our future business model very exciting.

All of our work in the operations, pricing, customer focus and sales development is absolutely showing in our results and our future business outlook. So in summary, we will continue to one, successfully drive our sales growth into new markets two, improve our margin profile through operational excellence and our innovation pipeline and three, invest in growing a business that has proven it can execute well. Developing a world class engineered material and manufacturing solutions partner is what it’s all about. Now turning to our Q2 financial results, revenue was $79,200,000 with gross margins at 18.1%. Adjusted EBITDA margin grew to 12%, up 30 basis points from Q1 and cash flow from operations is over 9,000,000 for the first half of the year, which exceeds our year to date net earnings.

As expected, Towing revenue increased by almost $13,000,000 between Q1 and Q2, and we’re projecting further growth in tooling this year from our new business wins secured last year. We again delivered strong gross margins this quarter within our projected range with sequentially improving profitability compared to the first quarter as well as positive year to date free cash flows. As expected, sales declined in the second quarter when compared to the prior year period by low double digits representing a sequential improvement from the first quarter. Sustaining strong gross margins, profitability and positive free cash flow on year to date double digit revenue declines in the first half is strong evidence that our must win battle initiatives over the last four years have been successful and more importantly, we have demonstrated consistently good execution. Now, before I turn it over to Alex to give a detailed financial report, I’ve asked Eric to share comments on some Q2 highlights.

Eric Palamaki, COO, Core Molding Technologies: Thank you, Dave, and good morning. Many of you I have already met and to those that I have not yet met, I look forward to speaking with you in the future. In a moment, I will share our newest footprint optimization project that fits well into our continuous improvement culture here at Core Molding. But first, I would like to share a few other notable accomplishments and accolades for our company and select employees. Our Director of Materials Science, Vinod Arora, won the American Composites Manufacturing Association or ACMA Pioneer Award, honoring him for playing a pivotal role in advancing the composites industry through innovation and technical expertise.

I personally have had the privilege of working with Vinod over the last seven years. His vast experience and forty years in the industry is an incredible asset to Core Molding. We are proud of Vinod and the entire Material Science team for industry advancements and competitive proprietary innovations they have brought to our customers. Recently, our leader and my mentor, Dave Duvall, was nominated for a 2025 Smart 50 Award for leading the implementation of a smart organization and building an enduring organization of products with long term sustainability. This is an honor for both Dave and the company and we look forward to attending this event later this month.

I’d like to also share an update on our footprint optimization initiative launched at the end of the second quarter, which we expect to complete by year end, as part of our ongoing focus on product level profitability. The current softness in the truck demand created an opportunity to consolidate our resin transfer molding or RTM process by relocating select programs to another one of our facilities. This strategic move will streamline operations at the originating site and is expected to deliver margin improvement. Alex will provide more detail on this shortly. Lastly, I want to call out our operational teams for their 99% on time deliveries and excellent 62 PPM performance.

PPM, which measures the number of defective parts per million produced is used by our customers to measure quality performance. A rate of under 0.01% indicates a high level of quality and is a testament to the precision of our quality processes. We have also maintained industry low safety incident rates and employee turnover rates, which we take pride in. These favorably trending metrics reflect well on our culture and commitment to excellence across all of our plants. With that, I would now like to turn the call over to Alex to run through the financials.

Dave Duvall, President and CEO, Core Molding Technologies: Thank you, Eric, and good morning, everyone. For the second quarter, net sales totaled $79,200,000 representing a 10.7% decrease from the same period a year ago. Similar to last quarter, product sales were down due to lower demand for powersports, building products and in the medium and heavy duty truck verticals. This was offset slightly by new product sales customers in the Building Products and Industrial and Utilities markets. As expected, tolling revenues grew by over 3.5 times compared to the prior year due to customer launches primarily resulting from our 2024 business development activities.

Despite Q2 operating leverage pressure, we maintained our gross margin of $14,300,000 or 18.1% of sales. We are pleased with the stability of our gross margin rate, particularly given the significant shift in sales mix with increased tooling revenue. We continue to partially offset lower leverage with operational efficiencies, lower raw material costs and margin optimization. We are maintaining our targeted gross margin range of 17 to 19% for this year. SG and A expenses for the second quarter were $9,100,000 or 11.5% of sales, flat as a percentage of sales versus the year ago period.

Excluding Q2 severance and footprint optimization costs of $479,000 and 200,000 respectively, adjusted SG and A costs would have been $8,400,000 dollars As Eric discussed, we plan to invest $1,500,000 this year in a footprint optimization project, which involves relocating the production of RTM products to an alternative plant. We anticipate that this project will generate direct cost savings of over $1,000,000 annually commencing in January 2026. For the 2025, adjusted SG and A expenses decreased compared to the same period last year due to lower labor and related benefit costs as well as bonus accruals and favorable foreign currency translation. Operating income for the quarter was $5,200,000 or 6.6% of sales, down from $7,500,000 or 8.4% of sales in the same period in the prior year. The second quarter’s interim effective tax rate was 24.4% compared to 16.3% in the prior year quarter.

The increase was due to taxable income being generated in the higher tax rate jurisdictions this quarter. Net income for the second quarter was $4,100,000 or diluted income per share of $0.47 compared to net income of $6,400,000 or diluted EPS of $0.73 in the comparable year period. Excluding the impact of severance and footprint optimization costs, our second quarter diluted EPS would have been $0.53 Second quarter adjusted EBITDA was $6,500,000 or 12% of sales. We generated $9,600,000 in GAAP cash from operations and after capital expenditures of $4,400,000 our free cash flow was $5,200,000 for the 2025. We continue to expect our preplanned fiscal twenty twenty five capital expenditures to be approximately 10,000,000 to $12,000,000 In addition to the pre planned capital expenditures, the company expects to invest approximately $25,000,000 related to the award of the Volvo Mexico business over the next eighteen months, with 8,000,000 to $10,000,000 anticipated to be spent by the end of fiscal twenty twenty five.

As of June 30, our balance sheet was strong with a total liquidity position of $93,200,000 comprising of $43,200,000 in cash plus $50,000,000 available under the revolver and capital credit lines. The company’s term debt was $20,600,000 at the end of the quarter and our debt to EBITDA ratio for the trailing twelve months remains less than one times. Our return on capital employed was 7.2% and excluding cash the rate was 9.6%. As we continue to launch new business, we expect this metric to improve by better leveraging top line performance and driving better asset utilization. Both ROCE metrics are computed using the trailing twelve months of operating income and total capital employed, a pretax metric.

Please see our earnings release for the GAAP to non GAAP reconciliation tables. Our capital allocation strategy remains flexible with a significant focus on organic growth as well as disciplined management of debt and working capital and share repurchases. Throughout the first half of the calendar year, we repurchased 151,584 shares at an average price of $14.82 and we have 2,500,000 remaining in our Board authorized share buyback program. We expect sales to decline in the second half of the year by 4% to 6% when compared to the same period in the prior year. As discussed earlier this year, we expect tooling revenues to comprise a higher percentage of our total sales when compared to prior year.

As a reminder, one time tooling sales are recognized upon the customer’s acceptance of the tools, which can shift between quarters. Regarding tariffs, our products in both Canada and Mexico are USMCA compliant and are currently exempt from tariffs. However, we will continue to closely monitor how changes in trade policies affect our customers and their end markets. We will continue to rebaseline expenses to better align them with customer demand. And with that, I would like to turn it back to Dave.

Thank you, Alex. Our twenty twenty five first half performance demonstrates that we are systematically driving continuous operational improvements, which is simply part of who Core Molding is. We are also highly focused on further scaling operations, leveraging our fixed cost base and optimizing our portfolio footprint. As foundational to these endeavors, our sales and marketing team continues to prioritize sectors where our proprietary materials and our technical differentiation provide Core Molding with a distinctive competitive moat. We focus on large diverse sectors including construction, energy, industrial, aerospace and medical markets.

Our sales teams are engaged early in the design cycle to expand wallet share and inform customers of our full range of value added capabilities, including SMC formulation, large part molding and top coat painting. We’re excited about the wins we’re seeing this year in newer markets such as the new pickup box panels for small EV trucks, the satellite tracking systems and winning the Volvo Mexico business, which are all data points demonstrating positive results. We are investing in the relocation and optimization of specific large presses and launching a new plant near our existing plant in Monterrey, Mexico to accommodate new business wins in the region. We plan to expand our DCPD or reaction injection molding processes for large OEMs in the area we already serve and will add Topco paint to enable a full service partner model. We will expand on this more on our next earnings call, but overall we are ready to invest when customers trust us with their long term business.

We’re also proud that we have maintained gross margins in the 18% to 20% range despite significant top line headwinds this year. Our focus on continuously improving our performance positions core so that as our top line grows, the positive operating leverage will drop to the bottom line. We will continue to strengthen our operations and take the necessary actions to drive long term business capability and profitability. We are seeing the most promising opportunities in construction and transportation, but we are confident this is only the beginning. New areas are emerging and will continue to evolve in the construction sector such as the windows market and more in the industrial sector for customers seeking composite mats.

As stated earlier, estimate that the combination of new program launches from existing customer wins over the next two years will return us to the annual product revenues exceeding $300,000,000 Furthermore, our portfolio capacity, including presses, processes and automation, is capable of supporting top line growth to $450,000,000 Despite our first half business wins, we are staying humble. We continue to see the major markets we serve in a lower expected demand environment. Tariff uncertainties are causing some delays in the market, both in demand and in the awarding of new programs. We have one major truck customer describe this year as the great pause, but we do see things starting to move towards stabilization and we are preparing for the eventual revenue rebound. We continue to move forward with our investor growth initiatives this year and we are finding ways to attract new customers and increase wallet share with current customers.

Our must win battle profitability improvements allow us to invest in future growth and significantly reduce the variations in our margins. So, on another topic, I’d like to address the announcement of my planned succession, which was shared shortly after our earnings release this morning. At the May 2026, I plan to retire as the company’s President and CEO. As part of our succession plan, I will remain fully involved with the strategy as an executive advisor to the Board and leadership team until December 2027, the following nineteen months. We’ve been working on the strategic transition for over two years, and the Board and I fully support Eric Palomacki as my successor.

Eric possesses the right passion, skill set, and leadership abilities for the position. Eric has been an integral part of developing Core’s business systems, and his institutional knowledge of our systems will allow a seamless transition. Eric is a talented professional who has a keen ability to develop and drive innovations in product development, as seen with some of our new wins. Eric and I have partnered throughout the business transformation and he has earned the respect of the entire organization and our customers, which will enable him to succeed in driving the company forward, upholding Corus fundamental values and ensuring a disciplined execution of our investor growth strategy. During Eric’s seven year tenure working, he has consistently demonstrated exceptional leadership qualities, incredible innovation and new products, and a deep understanding of our industry.

Like other executive transitions at Core Molding, Eric has undergone a rigorous executive training process, both internal and external to the company and collaborated with the entire management team every step of the way. His promotion last year to Chief Operating Officer allowed him to lead and collaborate with all levels of the organization in preparation for this next step. Now, I want to thank our team for their continued dedication and excellence, our customers and shareholders for their trust, and our Board for its ongoing support. Lastly, I’d like to share that Eric, Alex and I are planning to attend the Midwest Ideas Conference in Chicago on August 26. We look forward to connecting with many of you for further discussions while we are there.

With that, let’s open the line for questions. Operator?

Conference Operator: Certainly. At this time, we will be conducting a question and answer session. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions.

Your first question for today is from Chip Moore with Roth.

Chip Moore, Analyst, Roth: Good morning. Hey, everybody. Thanks for taking the question.

Eric Palamaki, COO, Core Molding Technologies: Hey,

Chip Moore, Analyst, Roth: Dave. Guess first off, you know, congratulations are in order, Dave, you and Eric for you as well. So congrats. No, thank you, Chip. Thanks.

Yeah, I wanted to start Dave. You sounded pretty bullish on the growth outlook. It’s really getting back to 300,000,000 plus of product revenues. Think you said within the next two years and was that did I hear you say even if truck and power stays sort of at depressed levels? How should we be thinking about that?

And with Volvo ramping in ’27, I assume, you know, any thoughts on product revenues next year?

Dave Duvall, President and CEO, Core Molding Technologies: Yes, I mean, we would expect that the truck market would start coming back. We see an ACT was at sometime in 2026. We’re not really we’re not banking on that. But with the new wins from prior year and this year, launching this year and into next year and then with the Volvo program, we see clear line of sight being back of product revenues of 300.

Chip Moore, Analyst, Roth: Gotcha. And and capacity $4.50, so you’re you’re in good shape there. Yeah.

Dave Duvall, President and CEO, Core Molding Technologies: Just Yeah. The only challenge that we ever have with capacity, similar to what we said, is sometimes we don’t have the right size press in the right location.

Chip Moore, Analyst, Roth: Yeah, yeah. Okay, no, that’s great. And just in pipeline and those new wins are impressive, 47,000,000 more than last year and I think it was 30,000,000 just a couple months ago. Where So are you seeing those incremental wins? And what’s the outlook for the back half of the year on pipeline?

Yes. I mean,

Dave Duvall, President and CEO, Core Molding Technologies: we’re real excited to continue to be excited in the industrial for the mass. We still continue to work on that. We have other opportunities there. We are working with some of our customers like in the construction area like UFP on some really unique projects that have opportunities coming up. But I think in the winds, it’s really we look at the EV and the municipal buses and the small truck programs as far as being able to use our composite processes for the beds and tailgates for the truck.

So that’s some pretty high volume as well as the panels and the Volvo Mexico. I think the satellite business is a new market for us where we see that potential to take off. And we’ve got some wins in that already that we already declared in the 47,000,000.

Chip Moore, Analyst, Roth: Got it. That’s helpful. And Dave,

Dave Duvall, President and CEO, Core Molding Technologies: the big one that we’re really driving when we talk about the shorter term wins is really promoting our SMC. We’ve done a lot of work in our facility as far as cold storage and how to mature the SMC and investments in the capital to really stabilize, improve the output and consistency and the speed at which we’re able to make that. So we’ve significantly increased our capacity and consistency in that. And now using the AI lead generation, it was actually a lot more than I thought. I thought I knew, but I didn’t.

Chip Moore, Analyst, Roth: Yeah. The AI is amazing. And you said, Dave, I think you’re tracking, you know, a 200,000,000 plus, you know, lead gen?

Dave Duvall, President and CEO, Core Molding Technologies: Than that. Yeah. It’s more than that, but we took out what we call captive. So if you look at the SMC market, those who mold SMC like a Kohler, they would be your largest SMC maker, but they’re captive into their own industry. SMC is usually a big part of the value proposition, so you either need to make it as part of your value proposition or make sure that you’re buying consistently good SMC that you can mold and has the features you need.

So we subtracted out what we called the non addressables.

Chip Moore, Analyst, Roth: Gotcha. So that’s, yeah, that’s immediately accessible. And and you have capacity in place to to serve that, and doesn’t have to be trucked with, like, you know, certain temperature and those type of things? Or is just walk me through that.

Dave Duvall, President and CEO, Core Molding Technologies: Yeah. We had talked about that quite a bit. We have the capacity to get maybe three quarters of that. But in that timeframe, we would be able to install more capacity as needed.

Chip Moore, Analyst, Roth: Got it. Okay, very helpful. Maybe I can ask one more, sneak one in the 25,000,000 CapEx in Mexico, obviously for Volvo, but what about that adjacent opportunity with some of your customers? I think you talked about the paint top coat and Yeah, absolutely. Yeah.

Dave Duvall, President and CEO, Core Molding Technologies: Yeah. As part of our strategy, you hit it right on the head. Is that how we’re looking at it? So, the 25,000,000, we have to expand our Matamoros facility. We’re gonna move DCPD or reaction injection molding out of that.

We’re going to move that into a Monterey facility that’s close to our current Monterey. And if you remember, our Monterey facility is only 50,000 square feet, it’s leased and it’s landlocked. So we really can’t do more with it. So we’re moving to a facility fairly close to where we are at 150,000 square feet. We’ll be putting top coat paint, DCPD, structural foam, and we’re also looking at large part high pressure injection molding.

And that location puts us with DCPD close to one of our other major customers, so it significantly reduces their logistics costs and opens up the opportunities to grow more business with them.

Chip Moore, Analyst, Roth: Mhmm. Mhmm. Okay. Great. No.

I appreciate, taking all the questions. I’ll hop back in. Thanks.

Dave Duvall, President and CEO, Core Molding Technologies: I appreciate you.

Conference Operator: Once again, if you would like to ask a question, please press 1.

Dave Duvall, President and CEO, Core Molding Technologies: K. Alright. So I don’t know if we have any other questions. It doesn’t it doesn’t seem there any coming up.

Conference Operator: Thank you.

Dave Duvall, President and CEO, Core Molding Technologies: Okay. So thank you for your continued interest in our company. We look forward to providing an update on our progress when we report our third quarter results. Thank you and have a great day.

Conference Operator: Disconnect your lines at this time. Thank you for your participation.

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