-- Stoneridge Returns to Operating Profitability in Third Quarter
-- Liquidity Remains Strong WARREN, Ohio, Oct. 29
/PRNewswire-FirstCall/ -- Stoneridge, Inc. (NYSE: SRI) today
announced net sales of $118.0 million and a net loss of $0.8
million, or $(0.04) per diluted share, for the third quarter ended
September 30, 2009. Net sales decreased $60.4 million, or 33.9%, to
$118.0 million, compared with $178.4 million for the third quarter
of 2008. The decrease in net sales was primarily caused by
dramatically reduced production volumes in the North American
passenger car/light truck market (21%) and the commercial vehicle
markets in Europe (69%) and North America (38%). The net loss for
the third quarter of 2009 was $0.8 million, or $(0.04) per diluted
share, compared with a net loss of $0.4 million, or $(0.02) per
diluted share, in the third quarter of 2008. The decrease in net
income was primarily due to the severe reduction in sales volume
the Company experienced in all of its markets. However the
reduction in net income was significantly mitigated by the benefits
of previous restructuring and cost-reduction initiatives. Though
net sales were lower than last year, Stoneridge generated an
operating profit of $2.6 million in the third quarter as
restructuring and cost-reduction programs helped offset the market
reduction. As further support for the effectiveness of its
restructuring and cost-savings programs, the Company's gross margin
in the third quarter exceeded 20% for the first time since the
second quarter of 2008. As of September 30, 2009, Stoneridge's
consolidated cash position was $84.4 million, $8.3 million lower
than its 2008 year-end balance of $92.7 million, and the Company's
Asset Based Lending facility remains undrawn. For the nine months
ended September 30, 2009, net sales were $341.4 million, a decrease
of 42.6% compared with $594.7 million for the nine months ended
September 30, 2008. The net loss for the nine-month period ended
September 30, 2009 was $32.2 million, or $(1.37) per diluted share,
compared with net income of $10.9 million, or $0.46 per diluted
share, in the comparable 2008 period. Outlook "The third-quarter
volume declines, though severe, were less dramatic than those in
the second quarter," said John C. Corey, president and chief
executive officer. "The improvement in operating income on lower
sales volumes is very encouraging and a testament to the team's
execution of our business plan. The success of our plan execution
has also allowed us to focus on our top-line initiatives such as
our recently announced 51% equity purchase of Bolton Conductive
Systems, LLC. We continue to pursue other opportunities to grow our
top line in addition to aggressive cost-reduction initiatives that
will improve our competitive position." Regarding the Company's
expectations for the fourth quarter of 2009, Corey added, "We are
reiterating our previous guidance. At this point we expect
Stoneridge to generate positive operating income in the fourth
quarter. However, the possibility of supply chain disruptions could
modify our outlook as capacity reductions by our suppliers have not
been restored. In addition, our cash position may be affected by
potential volume increases which would require a ramp up in working
capital and may result in a modest cash use." Conference Call on
the Web A live Internet broadcast of Stoneridge's conference call
regarding 2009 third-quarter results can be accessed at 11:00 a.m.
Eastern time on Thursday, October 29, 2009, at
http://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 automotive, medium- and heavy-duty
truck, agricultural and off-highway vehicle markets. Additional
information about Stoneridge can be found at
http://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. Factors 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 change in automotive, medium- and heavy-duty truck or
agricultural 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.
STONERIDGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited) (in thousands, except per share data)
Three Months Ended Nine Months Ended September 30, September 30,
------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ----
Net Sales $117,992 $178,434 $341,367 $594,733 Costs and Expenses:
Cost of goods sold 90,909 143,089 281,413 458,217 Selling, general
and administrative 23,139 31,668 76,554 104,834 Restructuring
charges 1,310 2,742 3,819 5,877 ----- ----- ----- ----- Operating
Income (Loss) 2,634 935 (20,419) 25,805 Interest expense, net 5,559
5,049 16,594 15,301 Equity in earnings of investees (3,386) (4,371)
(4,864) (11,206) Loss on early extinguishment of debt - - - 770
Other expense (income), net (198) (234) 447 44 ---- ---- --- --
Income (Loss) Before Income Taxes 659 491 (32,596) 20,896 Provision
(benefit) for income taxes 1,502 855 (409) 10,029 ----- --- ----
------ Net Income (Loss) $(843) $(364) $(32,187) $10,867 =====
===== ======== ======= Basic net income (loss) Per share $(0.04)
$(0.02) $(1.37) $0.47 ====== ====== ====== ===== Basic weighted
average Shares outstanding 23,761 23,405 23,580 23,353 ======
====== ====== ====== Diluted net income (loss) per share $(0.04)
$(0.02) $(1.37) $0.46 ====== ====== ====== ===== Diluted weighted
average shares outstanding 23,761 23,405 23,580 23,728 ======
====== ====== ====== STONERIDGE, INC. AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (in thousands) September 30, December 31, 2009 2008
---- ---- ASSETS (Unaudited) (Audited) Current Assets: Cash and
cash equivalents $84,442 $92,692 Accounts receivable, less reserves
of $3,492 and $4,204, respectively 86,245 96,535 Inventories, net
37,541 54,800 Prepaid expenses and other 16,789 9,069 Deferred
income taxes 1,868 1,495 ----- ----- Total current assets 226,885
254,591 ------- ------- Long-Term Assets: Property, plant and
equipment, net 77,941 87,701 Other Assets: Investments and other,
net 48,575 40,145 Total long-term assets 126,516 127,846 -------
------- Total Assets $353,401 $382,437 ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts
payable $44,104 $50,719 Accrued expenses and other 42,427 43,485
------ ------ Total current liabilities 86,531 94,204 ------ ------
Long-Term Liabilities: Long-term debt... 183,000 183,000 Deferred
income taxes 7,073 7,002 Other liabilities 6,905 6,473 ----- -----
Total long-term liabilities 196,978 196,475 ------- -------
Shareholders' Equity: Preferred Shares, without par value,
authorized 5,000 shares, none issued - - Common Shares, without par
value, authorized 60,000 shares, issued 25,294 and 24,772 shares
and outstanding 25,010 and 24,665 shares, respectively, with no
stated value - - Additional paid-in capital 158,489 158,039 Common
Shares held in treasury, 284 and 107 shares, respectively, at cost
(289) (129) Accumulated deficit (91,342) (59,155) Accumulated other
comprehensive income (loss) 3,034 (6,997) ----- ------ Total
shareholders' equity 69,892 91,758 ------ ------ Total Liabilities
and Shareholders' Equity $353,401 $382,437 ======== ========
STONERIDGE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited) (in thousands) Nine Months Ended
September 30, ------------- 2009 2008 ---- ---- OPERATING
ACTIVITIES: Net cash provided by (used for) operating activities
$(2,578) $30,668 ------- ------- INVESTING ACTIVITIES: Capital
expenditures (8,779) (17,956) Proceeds from sale of property, plant
and equipment 88 435 Business acquisitions and other - (980) ---
---- Net cash used for investing activities (8,691) (18,501) ------
------- FINANCING ACTIVITIES: Repayments of long-term debt -
(17,000) Share-based compensation activity - 1,305 Premiums related
to early extinguishment of debt - (553) Other financing costs (50)
- --- --- Net cash used for financing activities (50) (16,248) ---
------- Effect of exchange rate changes on cash and cash
equivalents 3,069 (2,232) ----- ------ Net change in cash and cash
equivalents (8,250) (6,313) Cash and cash equivalents at beginning
of period 92,692 95,924 ------ ------ Cash and cash equivalents at
end of period $84,442 $89,611 ======= ======= DATASOURCE:
Stoneridge, Inc. CONTACT: Kenneth A. Kure, Corporate Treasurer and
Director of Finance, of Stoneridge, Inc., +1-330-856-2443 Web Site:
http://www.stoneridge.com/
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