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2014

Stoneridge Reports Third-Quarter 2013 Results

- Continued Improvement in Operating Margin over Prior Year Driven by Sales Growth from New Business Awards and Cost Reductions

- Deleveraging from 2012 Cash Flow Lowers Interest Expense

- Company Maintains 2013 Guidance of $0.75-$0.95 per Share

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WARREN, Ohio, Oct. 31, 2013 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2013.

Third-quarter 2013 net sales were $233.5 million, an increase of $14.2 million, or 6.5%, compared with $219.3 million for the third quarter of 2012. The increase in the current quarter's net sales was primarily due to higher sales in the Company's Control Devices and Electronics business segments.

Net income for the third quarter of 2013 was $5.0 million, or $0.19 per diluted share, compared with net income of $0.4 million, or $0.02 per diluted share, in the third quarter of 2012.  The increase in net income was primarily due to higher sales in the third quarter of 2013 compared with the same period in 2012.

As of September 30, 2013, Stoneridge's consolidated cash position was $46.1 million, an increase of $1.5 million from December 31, 2012.  The Company's increased cash position was the result of increased net income in 2013 which was partially offset by increases in net working capital and capital expenditures to support sales growth.

John Corey, President and Chief Executive Officer, commented, "Current-year sales were up compared to prior year as a result of new business sales in our Control Devices and Electronics segments and volume increases.  PST's sales were up 12.5% compared to last year on a local currency basis; however, on a US dollar basis, PST's sales were flat because the Brazilian real devalued compared to the US Dollar by 12.5%."

Corey continued, "We have reported continued improvement in sales, operating earnings and net income in the third quarter in spite of the uncertainty in the economic environment. Given this uncertainty and continuing weakness in the North American commercial vehicle market, which has not rebounded as forecasted, we are encouraged by our continued sales performance and the contributions made to our net income over the past five quarters."

Regarding the fourth quarter of 2013, Corey added, "Though the expected improvement in the North American commercial vehicle market and consumer confidence in Brazil remains uncertain, we have maintained our 2013 guidance of $0.75 to $0.95 per share as published on February 7, 2013, though most likely at the lower end of this range."

Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2013 third-quarter results can be accessed at 10 a.m. Eastern time on Thursday, October 31, 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


Nine Months Ended

(in thousands, except


September 30,


September 30,

per share data)


2013


2012


2013


2012



















Net sales


$   233,511


$       219,256


$   712,006


$    715,788










Costs and expenses:









Cost of goods sold


179,992


168,018


539,538


545,753

Selling, general and administrative


42,814


44,623


139,646


149,954










Operating income


10,705


6,615


32,822


20,081










Interest expense, net


4,544


4,878


13,693


15,395

Equity in earnings of investees


(99)


(207)


(396)


(443)

Other (income) expense, net


(269)


972


178


3,375










Income before income taxes


6,529


972


19,347


1,754










Provision for income taxes


1,016


383


3,160


717










Net income


5,513


589


16,187


1,037










Net income (loss) attributable to noncontrolling interest


466


170


1,260


(1,703)










Net income attributable to Stoneridge, Inc.


$        5,047


$              419


$     14,927


$        2,740










Earnings per share attributable to Stoneridge, Inc.:









Basic


$          0.19


$             0.02


$           .56


$          0.10

Diluted


$          0.19


$             0.02


$         0.55


$          0.10










Weighted average shares outstanding









Basic


26,692


26,430


26,663


26,358

Diluted


27,177


27,144


27,236


27,009

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)




September 30,


December 31,

(in thousands)


2013


2012



(Unaudited)



ASSETS










Current assets:





Cash and cash equivalents


$           46,057


$             44,555

Accounts receivable, less reserves of $3,185 and $3,394, respectively


150,988


141,503

Inventories, net


118,976


96,032

Prepaid expenses and other current assets


29,709


28,964

Total current assets


345,730


311,054






Long-term assets:





Property, plant and equipment, net


112,953


119,147

Other assets





Intangible assets, net


73,570


84,397

Goodwill, net


61,235


66,381

Investments and other long-term assets, net


10,116


11,712

Total long-term assets


257,874


281,637

Total assets


$        603,604


$           592,691






LIABILITIES AND SHAREHOLDERS' EQUITY










Current liabilities:





Current portion of debt


$             9,210


$             18,925

Revolving credit facilities


-


1,160

Accounts payable


86,368


76,303

Accrued expenses and other current liabilities


65,856


57,081

Total current liabilities


161,434


153,469






Long-term liabilities:





Long-term debt, net


187,452


181,311

Deferred income taxes


55,407


59,819

Other long-term liabilities


4,123


4,258

Total long-term liabilities


246,982


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 28,484 and 27,913 shares at September 30, 2013 and December 31, 2012, respectively, with no stated value


-


-

Additional paid-in capital


186,857


184,822

Common Shares held in treasury, 319 and 520 shares at September 30, 2013 and December 31, 2012, respectively


(519)


(1,885)

Accumulated deficit


(7,975)


(22,902)

Accumulated other comprehensive loss


(24,598)


(10,282)

Total Stoneridge Inc. shareholders' equity


153,765


149,753

Noncontrolling interest


41,423


44,081

Total shareholders' equity


195,188


193,834

Total liabilities and shareholders' equity


$        603,604


$           592,691

 

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 (Unaudited)














Three Months Ended


Nine Months Ended




September 30,


September 30,

 (in thousands)


2013


2012


2013


2012











 Net income


$            5,513


$               589


$         16,187


$           1,037

 Other comprehensive income (loss), net of tax:









 Foreign currency translation adjustments


167


1,018


(11,947)


(9,327)

 Unrealized gain (loss) on derivatives


309


3,979


(2,369)


9,464

 Other comprehensive income (loss)


476


4,997


(14,316)


137

 Consolidated comprehensive income


5,989


5,586


1,871


1,174

 Comprehensive income (loss) attributable to noncontrolling interest


466


170


1,260


(1,703)











 Comprehensive income attributable to Stoneridge, Inc.

$            5,523


$            5,416


$              611


$           2,877





















 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


Nine Months Ended September 30 (in thousands)


2013


2012






OPERATING ACTIVITIES:





Net cash provided by operating activities


$         22,444


$           40,029






INVESTING ACTIVITIES:





Capital expenditures


(18,522)


(20,243)

Proceeds from sale of fixed assets


94


490

Payment for additional interest in PST


-


(19,779)

Net cash used for investing activities


(18,428)


(39,532)






FINANCING ACTIVITIES:





Revolving credit facility borrowings


-


11,420

Revolving credit facility payments


(1,160)


(38,433)

Proceeds from issuance of other debt


21,574


21,315

Repayments of other debt


(22,262)


(37,973)

Other financing costs


-


(134)

Repurchase of Common Shares to satisfy employee tax withholding


(729)


(1,135)

Net cash used for financing activities


(2,577)


(44,940)






Effect of exchange rate changes on cash and cash equivalents


63


1,278






Net change in cash and cash equivalents


1,502


(43,165)






Cash and cash equivalents at beginning of period


44,555


78,731






Cash and cash equivalents at end of period


$         46,057


$           35,566






Supplemental disclosure of non-cash financing activities:





Change in fair value of interest rate swap


$          (1,019)


$             1,450

Issuance of Common Shares for acquisition of additional PST interest


$                   -


$           10,197






 

SOURCE Stoneridge, Inc.



RELATED LINKS
http://www.stoneridge.com

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