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    Douglas DethyDC Capital Partners

    Douglas Dethy is the Portfolio Manager and Principal at DC Capital Partners and DC Capital Advisors Limited, specializing in discretionary investment management with a focus on publicly traded equities. He has managed significant holdings in companies such as Modine Manufacturing, Superior Industries International, Commercial Vehicle Group, Civeo Corp, and Teck Resources, overseeing a portfolio value of $28.9 million as of early 2021 and previously managing over $160 million in assets, with a recent reported quarterly performance increase of 1.64%. Dethy has led DC Capital Advisors since its founding in 1992 and is not known to have held analyst roles at other major Wall Street firms prior to that, positioning himself as the firm’s owner and primary decision-maker for over three decades. He holds key management and investment advisory roles but public licensing records and distinct regulatory credentials such as FINRA Series 7/63 remain undisclosed.

    Douglas Dethy's questions to Commercial Vehicle Group Inc (CVGI) leadership

    Douglas Dethy's questions to Commercial Vehicle Group Inc (CVGI) leadership • Q4 2024

    Question

    Douglas Dethy from DC Capital Partners expressed significant concern over poor financial results, questioning the sense of urgency and the plan for recovery. He specifically highlighted the increase in SG&A as a percentage of sales and asked how the company could mathematically achieve a reasonable EBIT margin, probing the gross margin profile of new business.

    Answer

    Executive Andy Cheung acknowledged the challenging results and stated the immediate urgency is on generating positive free cash flow through working capital improvements. President and CEO James Ray added that the primary focus for 2025 is expanding gross margin by eliminating the one-time operational inefficiencies from 2024. Mr. Cheung conceded that reaching their target 9% EBITDA margin requires achieving a ~15% gross margin, which is above historical levels but is considered the business's entitlement. He noted new business is won at higher margins, but the near-term focus is on fixing internal inefficiencies.

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