Stoneridge Reports First-Quarter 2013 Results

09 May, 2013, 08:39 ET from Stoneridge, Inc.

WARREN, Ohio, May 9, 2013 /PRNewswire/ -- 

  • Continued Improvement in Operating Margin Driven by Cost Reductions and Sequential Sales Growth Over the Last Three Quarters
  • Positioned to Leverage Market Improvement
  • Deleveraging From 2012 Cash Flow Lowers Interest Expense
  • Company Maintains 2013 Guidance of $0.75-$0.95 per Share

Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2013.

First-quarter 2013 net sales were $235.7 million, a decrease of $26.6 million, or 10.1%, compared with $262.3 million for the first quarter of 2012. The decrease in the current quarter's net sales was primarily due to lower sales in the Company's Wiring business segment and lower sales in the PST business segment.

Net income for the first quarter of 2013 was $4.1 million, or $0.15 per diluted share, compared with net income of $5.9 million, or $0.22 per diluted share, in the first quarter of 2012.  The decrease in net income was primarily due to lower sales in the first quarter of 2013 compared with the same period in 2012.

As of March 31, 2013, Stoneridge's consolidated cash position was $46.7 million, an increase of $2.1 million from December 31, 2012.

"While our year-over-year sales comparisons were lower in the first quarter, over the last three quarters sales have improved 7.5% over the third quarter of 2012 and 5.8% over the fourth quarter of 2012. Our cost-reduction and other initiatives implemented during 2012 continued to favorably affect our operating margin. These actions, together with our participation in diversified markets and global reach, have reduced the impact of lower global commercial vehicle market demand and demonstrated our ability to continue generating operating profits with lower volumes," Corey noted. "Our cash flow and deleveraging in 2012 contributed to our earnings performance in the first quarter of 2013 through lower interest expense."

Corey continued, "PST's sales came in as expected and above the trough level experienced in the second quarter of 2012, while operating margins benefited from cost initiatives implemented in the second quarter of last year and mix driven largely from aftermarket products of alarm systems and tracking devices."

Regarding the remaining quarters, Corey added, "We are positioned to benefit from market improvement and expect to see continued financial performance improvement in the remaining quarters of 2013 as we have experienced in the last three quarters, and reaffirm our 2013 guidance of $0.75 to $0.95 per share as published on February 7, 2013, based on market improvement and cost initiatives."

Conference Call on the Web A live Internet broadcast of Stoneridge's conference call regarding 2013 first-quarter results can be accessed at 11 a.m. Eastern time on Thursday, May 9, 2013, at www.stoneridge.com, which will also offer a webcast replay.

About Stoneridge, Inc. Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the commercial vehicle, automotive and agricultural, motorcycle and off-highway vehicle markets.  Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking Statements Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release.  Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant volume change in commercial vehicle, automotive, agricultural, motorcycle and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business.  In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release.  The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.  Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31 (in thousands, except per share data)

2013

2012

Net sales

$         235,710

$           262,267

Costs and expenses:

Cost of goods sold

176,981

197,129

Selling, general and administrative

48,437

53,289

Operating income

10,292

11,849

Interest expense, net

4,574

5,355

Equity in earnings of investees

(201)

(139)

Other expense (income), net

617

(331)

Income before income taxes

5,302

6,964

Provision for income taxes

1,019

1,218

Net income

4,283

5,746

Net income (loss) attributable to noncontrolling interest

160

(133)

Net income attributable to Stoneridge, Inc. 

$              4,123

$               5,879

Earnings per share attributable to Stoneridge, Inc.:

Basic

$                0.15

$                 0.22

Diluted

$                0.15

$                 0.22

Weighted average shares outstanding:

Basic

26,601

26,220

Diluted

27,395

26,857

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

March 31,

December 31,

(in thousands)

2013

2012

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$           46,724

$             44,555

Accounts receivable, less reserves of $3,534 and $3,394, respectively

158,852

141,503

Inventories, net

103,115

96,032

Prepaid expenses and other current assets

34,806

28,964

Total current assets

343,497

311,054

Long-term assets:

Property, plant and equipment, net

118,137

119,147

Other assets

Intangible assets, net

84,160

84,397

Goodwill

67,287

66,381

Investments and other long-term assets, net

11,791

11,712

Total long-term assets

281,375

281,637

Total assets

$        624,872

$           592,691

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of debt

$           17,621

$             18,925

Revolving credit facilities

-

1,160

Accounts payable

85,017

76,303

Accrued expenses and other current liabilities

62,900

57,081

Total current liabilities

165,538

153,469

Long-term liabilities:

Long-term debt, net

193,531

181,311

Deferred income taxes

59,967

59,819

Other long-term liabilities

4,048

4,258

Total long-term liabilities

257,546

245,388

Shareholders' equity:

Preferred Shares, without par value, authorized 5,000 shares, none issued

-

-

Common Shares, without par value, authorized 60,000 shares, issued 28,803 and 28,433 shares and outstanding 28,489 and 27,913 shares at March 31, 2013 and December 31, 2012, respectively, with no stated value

 

-

-

Additional paid-in capital

184,187

184,822

Common Shares held in treasury, 314 and 520 shares at March 31, 2013 and December 31, 2012, respectively, at cost

(519)

(1,885)

Accumulated deficit

(18,779)

(22,902)

Accumulated other comprehensive loss

(7,778)

(10,282)

Total Stoneridge Inc. shareholders' equity

157,111

149,753

Noncontrolling interest

44,677

44,081

Total shareholders' equity

201,788

193,834

Total liabilities and shareholders' equity

$        624,872

$           592,691

 

 

 

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  

 (Unaudited) 

 Three months ended March 31 (in thousands) 

2013

2012

 Net income 

$            4,283

$            5,746

 Other comprehensive income, net of tax: 

 Foreign currency translation adjustments 

2,245

7,111

 Unrealized gain on derivatives 

259

7,256

 Other comprehensive income, net of tax 

2,504

14,367

 Consolidated comprehensive income 

6,787

20,113

 Income (loss) attributable to noncontrolling interest 

160

(133)

 Comprehensive income attributable to Stoneridge, Inc. 

$            6,627

$          20,246

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three months ended March 31 (in thousands)

2013

2012

OPERATING ACTIVITIES:

Net cash provided by (used for) operating activities

$             (594)

$             5,862

INVESTING ACTIVITIES:

Capital expenditures

(5,818)

(6,848)

Proceeds from sale of fixed assets

16

143

Business acquisition

-

(19,779)

Net cash used for investing activities

(5,802)

(26,484)

FINANCING ACTIVITIES:

Revolving credit facility borrowings

-

160

Revolving credit facility payments

(1,160)

(7,418)

Proceeds from issuance of other debt

13,386

4,517

Repayments of other debt

(2,690)

(13,409)

Other financing costs

-

(99)

Repurchase of shares to satisfy employee tax withholding

(671)

(1,118)

Net cash provided by (used for) financing activities

8,865

(17,367)

Effect of exchange rate changes on cash and cash equivalents

(300)

2,192

Net change in cash and cash equivalents

2,169

(35,797)

Cash and cash equivalents at beginning of period

44,555

78,731

Cash and cash equivalents at end of period

$         46,724

$           42,934

Supplemental disclosure of non-cash financing activities:

Change in fair value of interest rate swap

$               (103)

$                  86

Issuance of Common Shares for acquisition of additional PST interest

$                     -

$           10,197

 

 

SOURCE Stoneridge, Inc.



RELATED LINKS

http://www.stoneridge.com