Achieves Q4 Sequential EPS Improvement In
Line with Prior Expectations
Establishes 2024 Midpoint Revenue Guidance
of $1 Billion And Midpoint EBITDA of
$67 Million (Midpoint EBITDA Margin
Expansion Of 170 Basis Points vs. 2023)
Maintains 2027 Long-Term Target and
Establishes 2028 Revenue Target of $1.35 - $1.55
Billion and EBITDA Margin Target of 12.0% -
14.0%
NOVI,
Mich., Feb. 28, 2024 /PRNewswire/ --
2023 Fourth Quarter Results
- Sales of $229.5
million
- Adjusted sales of $229.4
million
- Gross profit of $45.5
million
- Adjusted gross profit of $45.7
million (19.9% of adjusted sales)
- Operating income of $6.0
million
- Adjusted operating income of $6.2
million (2.7% of adjusted sales)
- Adjusted EBITDA of $15.6
million (6.8% of adjusted sales)
- Earnings per share ("EPS") of $0.11
- Adjusted earnings per share of $0.12
2024 Full-Year Guidance
- Midpoint sales of $1
billion
- Midpoint EBITDA of $67
million
- Midpoint EBITDA margin of 6.7%
Stoneridge, Inc. (NYSE: SRI) today announced financial
results for the fourth quarter ended December 31, 2023, with
sales of $229.5 million and
earnings per share of $0.11. Adjusted
sales for the fourth quarter were $229.4 million and adjusted earnings per
share were $0.12. This results in
full-year sales of $975.8 million with a loss per share of
$(0.19). Adjusted sales for the
full-year were $961.2 million
while adjusted loss per share was $(0.08). The exhibits attached hereto provide
reconciliation detail on normalizing adjustments of non-GAAP
financial measures used in this press release.
For the fourth quarter of 2023, Stoneridge reported gross profit
of $45.5 million and
adjusted gross profit of $45.7 million (19.9% of adjusted sales).
Operating income was $6.0 million and adjusted operating income
was $6.2 million (2.7% of
adjusted sales). Adjusted EBITDA was $15.6 million (6.8% of adjusted sales),
For the full-year ended December
31 2023, Stoneridge reported gross profit of $201.3 million and adjusted gross
profit of $202.1 million (21.0%
of adjusted sales). Operating income was $12.8 million
and adjusted operating income was $16.2 million (1.7% of adjusted sales).
Adjusted EBITDA was $48.1 million (5.0% of adjusted sales) an
increase of 150 basis points relative to the full-year 2022.
Jim Zizelman, president and chief
executive officer, commented, "In the fourth quarter, we delivered
on our previously provided EPS expectations driving sequential
improvement from the third quarter. In 2023, we faced significant
macroeconomic headwinds specifically related to the UAW strike, and
the slower-than-expected rate of penetration for electric vehicles.
That said, we delivered on the financial commitments we outlined at
the beginning of the year, driven by the execution of our new
program launches and the ramp-up of recently launched programs,
continuous improvement in our manufacturing facilities and the
execution of operating expense initiatives to both reduce cost and
improve efficiency. Looking forward, we will continue to evaluate
our cost structure and organization to ensure that we are
optimizing cost and organizational capability. Finally, we remain
focused on efficient cash generation and specifically, reducing our
inventory to generate incremental cash as we continue to grow. As a
result, we have set ourselves up for continued strong performance
in 2024."
Zizelman continued, "We remain focused on executing our
long-term growth strategy. By leveraging our drivetrain agnostic
technologies and our products aligned with industry megatrends, we
expect to drive outsized growth over the long-term. Contributing to
this growth are our MirrorEye® and Smart 2 tachograph products,
both of which launched on significant platforms this year and will
continue to grow in both the OEM and aftermarket channels going
forward. Earlier this week, we announced our next OEM MirrorEye
programs will be launching with Volvo in Europe in mid-2024 and in North America in early 2025. Earlier this
month, we announced the extension of our Federal Motor Carrier
Safety Administration (FMCSA) exemption for an additional 5 years
which will allow our US-based fleet partners to maximize on the
safety and fuel economy benefits of MirrorEye. Today, we are
announcing three additional fleet partnerships with PS Logistics,
Stokes Trucking and Cargo Transporters. These fleets understand the
significant safety and fuel economy benefits of MirrorEye and have
committed to equipping all of their long-haul trucks with MirrorEye
over time. Furthermore, our Smart 2 tachograph launched earlier
this year providing significant growth opportunities aligned with
regulatory changes and requirements over the next several
years."
Zizelman concluded, "We have a strong backlog, products aligned
with industry megatrends and drivetrain agnostic technologies that
will allow us to continue to grow as market preferences and
customer platforms continue to evolve. We continue to focus on
operational improvements and material cost reductions to drive
gross margin expansion while we leverage our existing cost
structure to expand operating margin as we grow. While we made a
significant amount of progress in 2023, we are expecting continued
improvement in 2024. Stoneridge remains well positioned to outpace
our underlying end market growth and drive significant earnings
expansion going-forward."
Fourth Quarter in Review
Control Devices sales of $75.4 million decreased by 12.2%
relative to the fourth quarter of 2022. This decrease was primarily
due to lower sales in the North American passenger vehicle end
market due in part to the UAW strike as well as reduced electric
vehicle production volumes, partially offset by higher sales in
China. Fourth quarter adjusted
operating margin of 1.2% declined by 520 basis points relative to
the fourth quarter of 2022, primarily due to unfavorable fixed cost
leverage as a result of decreased sales as well as incremental
costs incurred related to a distressed supplier.
Electronics adjusted sales of $146.8 million increased by 8.9% relative to
the fourth quarter of 2022. This increase was primarily driven by
higher customer production volumes and the launch of new programs
and ramp-up of existing programs in the European and North
American commercial vehicle end markets, along with favorable
foreign currency translation, partially offset by lower sales in
the European and North American off-highway end markets. Fourth
quarter adjusted operating margin of 7.5% improved by 380 basis
points relative to the fourth quarter of 2022, primarily due to
higher contribution from incremental sales, direct material cost
improvements including the impact of price increases and lower
D&D costs due to the timing of customer reimbursements.
Stoneridge Brazil sales of $13.9 million increased by 6.4% relative to
sales in the fourth quarter of 2022. This increase was primarily
due to favorable foreign currency translation and higher sales in
local OEM products. Fourth quarter adjusted operating margin
of 7.0% increased by approximately 100 basis points relative to the
fourth quarter of 2022, primarily due to higher sales and lower
material costs.
Cash and Debt Balances
As of December 31, 2023, Stoneridge had cash and cash
equivalents balances totaling $40.8 million. Total debt as of
December 31, 2023 was $191.5 million resulting in net debt of
$150.6 million. Per the terms of
our Credit Facility, the Company remains compliant with the
required covenants and reported a net debt to trailing twelve-month
EBITDA compliance ratio of 3.13x.
The Company continues to focus on operating performance and
working capital improvement to drive cash performance, particularly
related to inventory reduction. As a result, the Company expects a
net debt to EBITDA ratio for compliance purposes of 2.0x - 2.5x by
the end of 2024.
2024 Outlook
The Company is issuing guidance ranges for its full-year 2024
performance including sales guidance of $990 million to
$1,010 million, gross margin
guidance of 22.0% to 22.75%, operating margin guidance of
2.75% to 3.25%, earnings per share guidance of $0.30 to $0.40 and
EBITDA guidance of $64 million to $70 million, or 6.5% to
6.9% of sales.
Matt Horvath, chief financial
officer, commented, "Our midpoint revenue guidance of $1 billion results in approximately 4% growth
relative to 2023, which outpaces our weighted-average OEM end
markets which are expected to decline by 5%. We expect continued
strong growth primarily due to the launch of MirrorEye with
Peterbilt in North America and
with Volvo in Europe mid-year. We
expect that our Smart 2 tachograph platform will continue to grow
in both OEM and aftermarket applications as regulations continue to
drive adoption in Europe."
Horvath continued, "We expect strong contribution margins on our
growth as we continue to focus on operational improvement and
material cost reduction actions to drive gross margin expansion.
Similarly, the annualized impact of the cost actions taken last
year in addition to our continued focus on an optimized structure
from both a resources and cost perspective, are expected to drive
operating leverage on continued growth. Driven primarily by
our expected revenue growth, focus on gross margin improvement and
leveraging our global footprint to maximize our capabilities and
output, we expect EBITDA margin expansion of 150 to 190 basis
points relative to 2023 resulting in EBITDA of $64 million to $70
million in 2024."
Horvath concluded, "Finally, we are reaffirming and advancing
the long-term targets we outlined last year as we expect 2028
revenue of $1.45 billion and EBITDA
margin of 13.0% at the midpoint of our long-term guided ranges. We
remain focused on building a strong foundation for continued
earnings expansion as we capitalize on our robust backlog and
impressive portfolio of advanced technologies. Stoneridge remains
well positioned to continue to outperform our underlying markets
and drive margin expansion resulting in long-term shareholder value
creation."
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call
regarding 2023 fourth quarter results can be accessed at
9:00 a.m. Eastern Time on Thursday,
February 29, 2024, at www.stoneridge.com, which will also
offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and
manufacturer of highly engineered electrical and electronic
systems, components and modules for the automotive, commercial,
off-highway and agricultural vehicle markets. Additional
information about Stoneridge can be found at
www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain "forward-looking
statements" under the Private Securities Litigation Reform Act of
1995. These statements appear in a number of places in this report
and may include statements regarding the intent, belief or current
expectations of the Company, with respect to, among other things,
our (i) future product and facility expansion, (ii) acquisition
strategy, (iii) investments and new product development, (iv)
growth opportunities related to awarded business, and (v)
operational expectations. Forward-looking statements may be
identified by the words "will," "may," "should," "designed to,"
"believes," "plans," "projects," "intends," "expects," "estimates,"
"anticipates," "continue," and similar words and expressions. The
forward-looking statements are subject to risks and uncertainties
that could cause actual events or results to differ materially from
those expressed in or implied by the statements. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements include, among other factors:
- the ability of our suppliers to supply us with parts and
components at competitive prices on a timely basis, including the
impact of potential tariffs and trade considerations on their
operations and output;
- fluctuations in the cost and availability of key materials
(including semiconductors, printed circuit boards, resin, aluminum,
steel and copper) and components and our ability to offset cost
increases through negotiated price increases with our customers or
other cost reduction actions, as necessary;
- global economic trends, competition and geopolitical risks,
including impacts from ongoing or potential global conflicts and
any related sanctions and other measures, or an escalation of
sanctions, tariffs or other trade tensions between the U.S. and
other countries;
- our ability to achieve cost reductions that offset or exceed
customer-mandated selling price reductions;
- the reduced purchases, loss or bankruptcy of a major customer
or supplier;
- the costs and timing of business realignment, facility closures
or similar actions;
- a significant change in automotive, commercial, off-highway or
agricultural vehicle production;
- competitive market conditions and resulting effects on sales
and pricing;
- foreign currency fluctuations and our ability to manage those
impacts;
- customer acceptance of new products;
- our ability to successfully launch/produce products for awarded
business;
- adverse changes in laws, government regulations or market
conditions affecting our products, our suppliers, or our customers'
products;
- our ability to protect our intellectual property and
successfully defend against assertions made against us;
- liabilities arising from warranty claims, product recall or
field actions, product liability and legal proceedings to which we
are or may become a party, or the impact of product recall or field
actions on our customers;
- labor disruptions at our facilities, or at any of our
significant customers or suppliers;
- business disruptions due to natural disasters or other
disasters outside of our control;
- the amount of our indebtedness and the restrictive covenants
contained in the agreements governing our indebtedness, including
our revolving Credit Facility;
- capital availability or costs, including changes in interest
rates;
- the failure to achieve the successful integration of any
acquired company or business;
- risks related to a failure of our information technology
systems and networks, and risks associated with current and
emerging technology threats and damage from computer viruses,
unauthorized access, cyber-attack and other similar disruptions;
and
- the items described in Part I, Item IA ("Risk Factors") in our
Form 10-K filed with the SEC.
The forward-looking statements contained herein represent our
estimates only as of the date of this release and should not be
relied upon as representing our estimates as of any subsequent
date. While we may elect to update these forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so, whether to reflect actual results, changes
in assumptions, changes in other factors affecting such
forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company's
financial results that is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
non-GAAP financial measures for 2023 and 2022 is not intended to
indicate that Stoneridge is explicitly or implicitly providing
projections on those non-GAAP financial measures, and actual
results for such measures are likely to vary from those presented.
The reconciliations include all information reasonably available to
the Company at the date of this press release and the adjustments
that management can reasonably predict.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that adjusted sales,
adjusted gross profit and margin, adjusted operating income and
margin, adjusted income (loss) before tax, adjusted net income
(loss), adjusted earnings (loss) per share, adjusted EBITDA,
adjusted EBITDA margin, adjusted tax expense, adjusted tax rate,
adjusted net debt and adjusted cash are useful measures in
assessing the Company's financial performance by excluding certain
items that are not indicative of the Company's core operating
performance or that may obscure trends useful in evaluating the
Company's continuing operating activities. Management also believes
that these measures are useful to both management and investors in
their analysis of the Company's results of operations and provide
improved comparability between fiscal periods.
Adjusted sales, adjusted gross profit and margin, adjusted
operating income and margin, adjusted income (loss) before tax,
adjusted net income (loss), adjusted earnings (loss) per share,
adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense,
adjusted tax rate, adjusted net debt and adjusted cash should not
be considered in isolation or as a substitute for sales, gross
profit, operating income, income (loss) before tax, net income
(loss), earnings (loss) per share, tax expense, tax rate, debt,
cash and cash equivalents, cash provided by operating activities or
other income statement or cash flow statement data prepared in
accordance with GAAP.
CONSOLIDATED BALANCE
SHEETS
|
|
December 31, (in
thousands)
|
|
2023
|
|
2022
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
40,841
|
|
$
54,798
|
Accounts receivable,
less reserves of $1,058 and $962, respectively
|
|
166,545
|
|
158,155
|
Inventories,
net
|
|
187,758
|
|
152,580
|
Prepaid expenses and
other current assets
|
|
34,246
|
|
44,018
|
Total current
assets
|
|
429,390
|
|
409,551
|
Long-term
assets:
|
|
|
|
|
Property, plant and
equipment, net
|
|
110,126
|
|
104,643
|
Intangible assets,
net
|
|
47,314
|
|
45,508
|
Goodwill
|
|
35,295
|
|
34,225
|
Operating lease
right-of-use asset
|
|
10,795
|
|
13,762
|
Investments and other
long-term assets, net
|
|
46,980
|
|
44,416
|
Total long-term
assets
|
|
250,510
|
|
242,554
|
Total assets
|
|
$
679,900
|
|
$
652,105
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
debt
|
|
$
2,113
|
|
$
1,450
|
Accounts
payable
|
|
111,925
|
|
110,202
|
Accrued expenses and
other current liabilities
|
|
64,203
|
|
66,040
|
Total current
liabilities
|
|
178,241
|
|
177,692
|
Long-term
liabilities:
|
|
|
|
|
Revolving credit
facility
|
|
189,346
|
|
167,802
|
Deferred income
taxes
|
|
7,224
|
|
8,498
|
Operating lease
long-term liability
|
|
7,684
|
|
10,594
|
Other long-term
liabilities
|
|
9,688
|
|
6,577
|
Total long-term
liabilities
|
|
213,942
|
|
193,471
|
Shareholders'
equity:
|
|
|
|
|
Preferred Shares,
without par value, 5,000 shares authorized, none issued
|
|
—
|
|
—
|
Common Shares, without
par value, 60,000 shares authorized, 28,966 and 28,966
shares issued and
27,549 and 27,341 shares outstanding at December 31, 2023
and
December 31, 2022,
respectively, with no stated value
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
227,340
|
|
232,758
|
Common Shares held in
treasury, 1,417 and 1,625 shares at December 31, 2023
and
December 31, 2022,
respectively, at cost
|
|
(43,344)
|
|
(50,366)
|
Retained
earnings
|
|
196,509
|
|
201,692
|
Accumulated other
comprehensive loss
|
|
(92,788)
|
|
(103,142)
|
Total shareholders'
equity
|
|
287,717
|
|
280,942
|
Total liabilities and
shareholders' equity
|
|
$
679,900
|
|
$
652,105
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Year ended December
31, (in thousands, except per share data)
|
|
2023
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Net sales
|
|
$
975,818
|
|
$
899,923
|
|
$
770,462
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of goods
sold
|
|
774,512
|
|
724,997
|
|
603,604
|
Selling, general and
administrative
|
|
117,395
|
|
106,695
|
|
116,000
|
Gain on sale of Canton
Facility, net
|
|
—
|
|
—
|
|
(30,718)
|
Design and
development
|
|
71,075
|
|
65,296
|
|
66,165
|
Operating
income
|
|
12,836
|
|
2,935
|
|
15,411
|
Interest expense,
net
|
|
13,000
|
|
7,097
|
|
5,189
|
Equity in loss
(earnings) of investee
|
|
522
|
|
823
|
|
(3,658)
|
Other expense,
net
|
|
1,236
|
|
5,711
|
|
1,444
|
(Loss) income before
income taxes
|
|
(1,922)
|
|
(10,696)
|
|
12,436
|
Provision for income
taxes
|
|
3,261
|
|
3,360
|
|
9,030
|
Net (loss)
income
|
|
$
(5,183)
|
|
$
(14,056)
|
|
$
3,406
|
|
|
|
|
|
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
(0.19)
|
|
$
(0.52)
|
|
$
0.13
|
Diluted
|
|
$
(0.19)
|
|
$
(0.52)
|
|
$
0.12
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
27,443
|
|
27,258
|
|
27,114
|
Diluted
|
|
27,443
|
|
27,258
|
|
27,416
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Year ended December
31, (in thousands)
|
|
2023
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(5,183)
|
|
$
(14,056)
|
|
$
3,406
|
Adjustments to
reconcile net income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
26,749
|
|
26,720
|
|
27,823
|
Amortization,
including accretion and write-off of deferred financing
costs
|
|
8,132
|
|
8,055
|
|
6,648
|
Deferred income
taxes
|
|
(4,038)
|
|
(5,110)
|
|
(511)
|
Loss (earnings) of
equity method investee
|
|
522
|
|
823
|
|
(3,658)
|
Gain on sale of fixed
assets
|
|
(860)
|
|
(241)
|
|
(165)
|
Share-based
compensation expense
|
|
3,322
|
|
5,942
|
|
5,960
|
Excess tax deficiency
(benefit) related to share-based compensation expense
|
|
230
|
|
543
|
|
(563)
|
Gain on sale of Canton
Facility, net
|
|
—
|
|
—
|
|
(30,718)
|
Gain on disposal of
business and joint venture, net
|
|
—
|
|
—
|
|
(2,942)
|
Change in fair value
of earn-out contingent consideration
|
|
—
|
|
—
|
|
2,065
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(5,854)
|
|
(13,161)
|
|
(17,019)
|
Inventories,
net
|
|
(31,563)
|
|
(20,127)
|
|
(51,270)
|
Prepaid expenses and
other assets
|
|
16,625
|
|
(5,159)
|
|
(5,116)
|
Accounts
payable
|
|
1,090
|
|
18,489
|
|
16,515
|
Accrued expenses and
other liabilities
|
|
(4,226)
|
|
4,088
|
|
13,297
|
Net cash provided by
(used for) operating activities
|
|
4,946
|
|
6,806
|
|
(36,248)
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
Capital expenditures,
including intangibles
|
|
(38,498)
|
|
(31,609)
|
|
(27,031)
|
Proceeds from sale of
fixed assets
|
|
1,869
|
|
158
|
|
268
|
Proceeds from
settlement of net investment hedges
|
|
—
|
|
3,820
|
|
—
|
Proceeds from disposal
of business, net
|
|
—
|
|
—
|
|
1,837
|
Proceeds from disposal
of joint venture, net
|
|
—
|
|
—
|
|
20,999
|
Proceeds from sale of
Canton Facility, net
|
|
—
|
|
—
|
|
35,167
|
Investment in venture
capital fund, net
|
|
(350)
|
|
(950)
|
|
(3,199)
|
Net cash (used for)
provided by investing activities
|
|
(36,979)
|
|
(28,581)
|
|
28,041
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Revolving credit
facility borrowings
|
|
117,369
|
|
21,562
|
|
91,913
|
Revolving credit
facility payments
|
|
(96,568)
|
|
(18,000)
|
|
(64,000)
|
Proceeds from issuance
of debt
|
|
35,757
|
|
38,940
|
|
45,753
|
Repayments of
debt
|
|
(35,102)
|
|
(42,248)
|
|
(48,107)
|
Earn-out consideration
cash payment
|
|
—
|
|
(6,276)
|
|
—
|
Other financing
costs
|
|
(2,251)
|
|
(484)
|
|
(18)
|
Repurchase of Common
Shares to satisfy employee tax withholding
|
|
(1,720)
|
|
(791)
|
|
(2,665)
|
Net cash provided by
(used for) financing activities
|
|
17,485
|
|
(7,297)
|
|
22,876
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
591
|
|
(1,677)
|
|
(3,041)
|
Net change in cash and
cash equivalents
|
|
(13,957)
|
|
(30,749)
|
|
11,628
|
Cash and cash
equivalents at beginning of period
|
|
54,798
|
|
85,547
|
|
73,919
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
40,841
|
|
$
54,798
|
|
$
85,547
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
13,007
|
|
$
7,293
|
|
$
6,055
|
Cash paid for income
taxes, net
|
|
$
10,302
|
|
$
6,178
|
|
$
11,267
|
Regulation G
Non-GAAP Financial Measure Reconciliations
Reconciliation to US
GAAP
Exhibit 1 -
Reconciliation of Adjusted EPS
|
|
Reconciliation of Q4
2023 Adjusted EPS
|
(USD in millions,
except EPS)
|
Q4
2023
|
|
Q4 2023
EPS
|
Net
Income
|
$
3.0
|
|
$
0.11
|
|
|
|
|
Add: After-Tax Business
Realignment Costs
|
0.1
|
|
—
|
Add: After-Tax Deferred
Financing Fee Write Off
|
0.2
|
|
0.01
|
Adjusted Net
Income
|
$
3.4
|
|
$
0.12
|
|
|
Reconciliation of
Full-Year 2023 Adjusted EPS
|
(USD in millions,
except EPS)
|
2023
|
|
2023
EPS
|
Net
Loss
|
$
(5.2)
|
|
$
(0.19)
|
|
|
|
|
Add: After-Tax Business
Realignment Costs
|
3.7
|
|
0.13
|
Add: After-Tax
Brazilian Indirect Tax Credits, Net
|
(0.3)
|
|
(0.01)
|
Add: After-Tax Deferred
Financing Fee Write Off
|
0.2
|
|
0.01
|
Less: After-Tax Gain on
Disposal of Fixed Assets
|
(0.6)
|
|
(0.02)
|
Add: After-Tax
Environmental Remediation Costs
|
0.1
|
|
—
|
Adjusted Net
Loss
|
$
(2.1)
|
|
$
(0.08)
|
Exhibit 2 –
Reconciliation of Adjusted EBITDA
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q1
2023
|
|
Q2
2023
|
|
Q3
2023
|
|
Q4
2023
|
|
2023
|
Income (Loss) Before
Tax
|
$
0.7
|
|
$
(10.7)
|
|
$ (8.1)
|
|
$ (1.5)
|
|
$ 4.4
|
|
$ 3.2
|
|
$
(1.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
2.2
|
|
7.1
|
|
2.7
|
|
3.1
|
|
3.3
|
|
3.8
|
|
13.0
|
Depreciation and
amortization
|
8.2
|
|
33.7
|
|
8.3
|
|
8.4
|
|
8.5
|
|
8.4
|
|
33.6
|
EBITDA
|
$ 11.1
|
|
$ 30.1
|
|
$
3.0
|
|
$ 10.0
|
|
$
16.2
|
|
$
15.5
|
|
$
44.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
0.3
|
|
1.3
|
|
1.9
|
|
1.2
|
|
0.1
|
|
4.5
|
Less: Pre-Tax Gain on
Disposal of Fixed Assets
|
—
|
|
—
|
|
(0.8)
|
|
—
|
|
—
|
|
—
|
|
(0.8)
|
Add: Pre-Tax
Environmental Remediation Costs
|
—
|
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
0.1
|
Add: Pre-Tax Brazilian
Indirect Tax Credits, Net
|
—
|
|
(0.6)
|
|
—
|
|
—
|
|
(0.5)
|
|
—
|
|
(0.5)
|
Adjusted
EBITDA
|
$ 11.1
|
|
$ 29.8
|
|
$
3.6
|
|
$ 11.9
|
|
$
17.0
|
|
$
15.6
|
|
$
48.1
|
Exhibit 3 –
Reconciliation of Adjusted Gross Profit
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Gross
Profit
|
$
45.5
|
|
$
174.9
|
|
$
45.5
|
|
$
201.3
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
—
|
|
0.1
|
|
0.8
|
Adjusted Gross
Profit
|
$
45.5
|
|
$
174.9
|
|
$
45.7
|
|
$
202.1
|
Exhibit 4 -
Reconciliation of Adjusted Operating Income
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Operating
Income
|
$
6.0
|
|
$
2.9
|
|
$
6.0
|
|
$ 12.8
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
0.3
|
|
0.1
|
|
4.5
|
Less: Pre-Tax Gain on
Disposal of Fixed Assets
|
—
|
|
—
|
|
—
|
|
(0.8)
|
Add: Pre-Tax
Environmental Remediation Costs
|
—
|
|
—
|
|
—
|
|
0.1
|
Add: Pre-Tax Brazilian
Indirect Tax Credits, Net
|
—
|
|
(0.6)
|
|
—
|
|
(0.5)
|
Adjusted Operating
Income
|
$
6.0
|
|
$
2.7
|
|
$
6.2
|
|
$ 16.2
|
Exhibit 5 – Segment
Adjusted Operating Income
|
|
Reconciliation of
Control Devices Adjusted Operating Income
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Control Devices
Operating Income
|
$
5.5
|
|
$ 23.9
|
|
$
0.9
|
|
$ 13.6
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Gain on
Disposal of Fixed Assets
|
—
|
|
—
|
|
—
|
|
(0.8)
|
Add: Pre-Tax
Environmental Remediation Costs
|
—
|
|
—
|
|
—
|
|
0.1
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
—
|
|
—
|
|
0.5
|
Control Devices
Adjusted Operating Income
|
$
5.5
|
|
$ 23.9
|
|
$
0.9
|
|
$ 13.4
|
Reconciliation of
Electronics Adjusted Operating Income
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Electronics
Operating Income
|
$
4.9
|
|
$
5.1
|
|
$ 10.8
|
|
$ 27.3
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
—
|
|
0.1
|
|
2.8
|
Electronics Adjusted
Operating Income
|
$
4.9
|
|
$
5.1
|
|
$ 11.0
|
|
$ 30.2
|
Reconciliation of
Stoneridge Brazil Adjusted Operating Income
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Stoneridge Brazil
Operating Income
|
$
0.8
|
|
$
3.1
|
|
$
1.0
|
|
$
4.5
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Brazilian
Indirect Tax Credits, Net
|
—
|
|
(0.6)
|
|
—
|
|
(0.5)
|
Add: Pre-Tax Business
Realignment Costs
|
—
|
|
0.1
|
|
—
|
|
—
|
Stoneridge Brazil
Adjusted Operating Income
|
$
0.8
|
|
$
2.7
|
|
$
1.0
|
|
$
4.0
|
Exhibit 6 –
Reconciliation of Adjusted Sales
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Sales
|
$
231.2
|
|
$
899.9
|
|
$
229.5
|
|
$
975.8
|
|
|
|
|
|
|
|
|
Less: Sales from Spot
Purchases Recoveries
|
(6.0)
|
|
(58.4)
|
|
(0.2)
|
|
(14.6)
|
Adjusted
Sales
|
$
225.2
|
|
$
841.5
|
|
$
229.4
|
|
$
961.2
|
Exhibit 7 –
Reconciliation of Electronics Adjusted Sales
|
|
(USD in
millions)
|
Q4
2022
|
|
2022
|
|
Q4
2023
|
|
2023
|
Electronics
Sales
|
$
140.7
|
|
$
533.8
|
|
$
146.9
|
|
$
608.2
|
|
|
|
|
|
|
|
|
Less: Sales from Spot
Purchases Recoveries
|
(6.0)
|
|
(58.4)
|
|
(0.2)
|
|
(14.6)
|
Electronics Adjusted
Sales
|
$
134.8
|
|
$
475.4
|
|
$
146.8
|
|
$
593.6
|
Exhibit 8 –
Reconciliation of Adjusted Tax Rate
|
|
Reconciliation of Q4
2023 Adjusted Tax Rate
|
(USD in
millions)
|
Q4
2023
|
|
Tax
Rate
|
Income Before
Tax
|
$
3.2
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
0.1
|
|
|
Add: Pre-Tax Deferred
Financing Fee Write Off
|
0.3
|
|
|
|
|
|
|
Adjusted Income
Before Tax
|
$
3.7
|
|
|
|
|
|
|
Income Tax
Expense
|
0.2
|
|
6.6 %
|
|
|
|
|
Add: Tax Impact from
Pre-Tax Adjustments
|
0.1
|
|
|
|
|
|
|
Adjusted Income Tax
Expense
|
$
0.3
|
|
8.6 %
|
|
|
Reconciliation of
Full-Year 2023 Adjusted Tax Rate
|
(USD in
millions)
|
2023
|
|
Tax
Rate
|
Loss Before
Tax
|
$
(1.9)
|
|
|
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
4.5
|
|
|
Add: Pre-Tax Brazilian
Indirect Tax Credits, Net
|
(0.5)
|
|
|
Add: Pre-Tax Deferred
Financing Fee Write Off
|
0.3
|
|
|
Add: After-Tax
Environmental Remediation Costs
|
0.1
|
|
|
Less: Pre-Tax Gain on
Disposal of Fixed Assets
|
(0.8)
|
|
|
|
|
|
|
Adjusted Income
Before Tax
|
$
1.8
|
|
|
|
|
|
|
Income Tax
Expense
|
3.3
|
|
nm
|
|
|
|
|
Add: Tax Impact from
Pre-Tax Adjustments
|
0.6
|
|
|
|
|
|
|
Adjusted Income Tax
Expense
|
$
3.9
|
|
nm
|
Exhibit 9 –
Reconciliation of Compliance Leverage Ratio
|
|
Reconciliation of
Adjusted EBITDA for Compliance Calculation
|
(USD in
millions)
|
|
|
Q1
2023
|
|
Q2
2023
|
|
Q3
2023
|
|
Q4
2023
|
Income (Loss) Before
Tax
|
|
|
$
(8.1)
|
|
$
(1.5)
|
|
$
4.4
|
|
3.2
|
Interest Expense,
net
|
|
|
2.7
|
|
3.1
|
|
3.3
|
|
3.8
|
Depreciation and
Amortization
|
|
|
8.3
|
|
8.4
|
|
8.5
|
|
8.4
|
EBITDA
|
|
|
$
3.0
|
|
$
10.0
|
|
$
16.2
|
|
$
15.5
|
|
|
|
|
|
|
|
|
|
|
Compliance
adjustments:
|
|
|
|
|
|
|
|
|
|
Add: Adjustments from
Foreign Currency Impact
|
|
|
1.4
|
|
3.1
|
|
0.4
|
|
(0.7)
|
Add: Extraordinary,
Non-recurring or Unusual Items
|
|
|
0.2
|
|
—
|
|
0.5
|
|
—
|
Add: Cash Restructuring
Charges
|
|
|
1.4
|
|
0.5
|
|
0.1
|
|
0.3
|
Add: Charges for
Transactions, Amendments, and Refinances
|
|
|
—
|
|
—
|
|
—
|
|
0.3
|
Add: Adjustment to
Autotech Investments
|
|
|
0.2
|
|
0.3
|
|
0.1
|
|
(0.1)
|
Adjusted EBITDA
(Compliance)
|
|
|
$
6.1
|
|
$
13.9
|
|
$
17.4
|
|
$
15.3
|
|
|
|
|
|
|
|
|
|
|
Adjusted TTM EBITDA
(Compliance)
|
|
|
|
|
|
|
|
|
$
52.7
|
Reconciliation of
Adjusted Cash for Compliance Calculation
|
(USD in
millions)
|
|
Q4
2023
|
Total Cash and Cash
Equivalents
|
|
$
40.8
|
|
|
|
Less: 35% Cash Foreign
Locations
|
|
(12.8)
|
Total Adjusted Cash
(Compliance)
|
|
$
28.0
|
Reconciliation of
Adjusted Debt for Compliance Calculation
|
(USD in
millions)
|
|
Q4
2023
|
Total
Debt
|
|
$
191.5
|
|
|
|
Outstanding Letters of
Credit
|
|
1.6
|
Total Adjusted Debt
(Compliance)
|
|
$
193.0
|
|
|
|
Adjusted Net Debt
(Compliance)
|
|
$
165.0
|
Compliance Leverage
Ratio (Net Debt / TTM EBITDA)
|
|
3.13x
|
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SOURCE Stoneridge, Inc.