Stoneridge has posted third-quarter net sales down US$8.3m or 4.9% to US$162.1m compared with US$170.3m last year.

Third ­quarter sales were negatively affected by US$19.8m from unfavourable foreign currency translation for Electronics and PST.

The company's control devices segment sales increased by US$8.6m or 10.9%, compared with the third quarter of 2014, reflecting continued strength in the passenger car market.

"As has been the trend so far in 2015, our Control Devices and Electronics segments continued to perform well in the third quarter, although unfavourable foreign exchange rates are masking the underlying financial performance of Electronics,” said Stoneridge president and CEO, Jon DeGaynor.

“I am particularly proud of our management team at PST. In spite of severely unfavourable economic conditions, they have managed to turn an operating profit (excluding non-cash purchase accounting charges) in the third quarter and recognised a sales increase in local currency compared to prior year.

“They are also expected to generate a modest operating profit (excluding non-cash purchase accounting charges) in the fourth quarter. This is a direct result of PST's management addressing sales opportunities in a tough market, adjusting prices to partially offset the Brazilian real devaluation, headcount reductions and other actions taken to size the cost structure of PST to match the lower market demand.

“PST is also reducing inventory and paying down debt. In spite of the negative trends of currency for the euro and real and the difficult economy in Brazil, Stoneridge continues to perform well.

“We are preparing the company for a significant increase in sales in 2016 while we continue to drive financial and operational improvement in 2015."  

Show the press release

04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 1/7 Stoneridge Reports Strong Third­Quarter 2015 Results WARREN, Ohio, Nov. 3, 2015 /PRNewswire/ ­­ Earnings Per Share From Continuing Operations of $0.27 Extends Trend of Significant Improvement Compared with Adjusted Earnings Per Share of $0.16 in the Third Quarter of 2014 Full­Year 2015 Earnings Per Share Guidance Revised Upward Debt Refinancing Reduces Interest Expense and Strengthens Balance Sheet Electronics and PST Sales and Earnings Negatively Affected by Foreign Currency Movements, Although Sales Increased on a Local Currency Basis Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2015. Third­quarter 2015 net sales were $162.1 million, a decrease of $8.3 million, or 4.9%, compared with $170.3 million for the third quarter of 2014. Third­quarter sales were negatively affected by $19.8 million from unfavorable foreign currency translation for Electronics and PST. On a constant currency basis, sales increased by $11.5 million or 6.7% (See Exhibit 2 for reconciliation of this non­GAAP financial measure.) The Company's Control Devices segment sales increased by $8.6 million, or 10.9%, compared with the third quarter of 2014. The sales increase in the Control Devices segment reflects continued strength in the passenger car market. The Electronics segment sales decreased by $4.3 million, or 7.8%, compared with the third quarter of 2014. Electronics sales decreased by $4.3 million in the third quarter on a U.S. dollar basis as current­quarter net sales were negatively affected by approximately $6.6 million of foreign currency translation effects. On a constant currency basis, Electronics' sales increased by 4.2% in the third quarter of 2015 compared with the third quarter of 2014, which reflects the continued strength in the European commercial vehicle market. (See Exhibit 2 for reconciliation of this non­GAAP financial measure.) The Company's PST business segment experienced a sales decrease of $12.7 million, or 34.3%, compared with the third quarter of 2014, due to unfavorable foreign currency exchange translation. The Brazilian Real depreciated 67.8% to the U.S. dollar, quarterto­quarter, which reduced U.S. dollar reported sales for PST by approximately 35.6%, or $13.2 million. On a local currency basis, PST sales increased by 1.3% compared with the third quarter of 2014, despite being adversely affected by the continued deterioration of economic conditions in Brazil. (See Exhibit 2 for reconciliation of this non­GAAP financial measure.) The earnings per diluted share from continuing operations attributable to Stoneridge, Inc. was $0.27 for the third quarter of 2015 compared with adjusted earnings per share of $0.16 in the third quarter of 2014. (See Exhibit 3 for a reconciliation of this non­GAAP financial measure.) The third­quarter 2014 net income from continuing operations attributable to Stoneridge, Inc. of $8.0 million, or $0.29 per diluted share, included income of $5.8 million, or $0.21 per diluted share, for a non­cash goodwill benefit for the PST business and a loss of ($0.9) million, or ($0.03) per diluted share, for debt extinguishment costs. As of September 30, 2015, Stoneridge's consolidated cash position was $29.3 million, a decrease of $13.7 million from December 31, 2014. Cash decreased due primarily to capital expenditures to facilitate new business programs, seasonal working capital increases and repayment of debt in Brazil. Stoneridge's Debt to Adjusted EBITDA ratio improved to 2.4x compared with 3.1x in the third quarter of 2014. (See Exhibit 4 for a reconciliation of this non­GAAP financial measure.) Jon DeGaynor, President and Chief Executive Officer, commented, "As has been the trend so far in 2015, our Control Devices and Electronics segments continued to perform well in the third quarter, although unfavorable foreign exchange rates are masking the underlying financial performance of Electronics. I am particularly proud of our management team at PST. In spite of severely unfavorable economic conditions, they have managed to turn an operating profit (excluding non­cash purchase accounting charges) in the third quarter and recognized a sales increase in local currency compared to prior year. They are also expected to generate a modest operating profit (excluding non­cash purchase accounting charges) in the fourth quarter. This is a direct result of PST's management addressing sales opportunities in a tough market, adjusting prices to partially offset the Brazilian real devaluation, headcount reductions and other actions taken to size the cost structure of PST to match the lower market demand. PST is also reducing inventory and paying down debt. In spite of the negative trends of currency for the euro and real and the difficult economy in Brazil, Stoneridge continues to perform well. We are preparing the Company for a significant increase in sales in 2016 while we continue to drive financial and operational improvement in 2015." DeGaynor concluded, "I am pleased that the organization continues to respond to the challenges of the marketplace and those we measure against ourselves. We look forward to continuing the trend of improved financial performance as we execute our sales, earnings and cash flow growth strategies. As a result of our actions so far this year, we have raised our prior annual earnings per share guidance for 2015 to more clearly reflect our expected financial performance for the rest of the year." (See Exhibit 1 for further information on our revised guidance). Conference Call on the Web A live Internet broadcast of Stoneridge's conference call regarding 2015 third­quarter results can be accessed at 10 a.m. Eastern time on Tuesday, November 3, 2015, 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 automotive, commercial vehicle, motorcycle, agricultural and offhighway vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com. Forward­Looking Statements Statements in this release that are not historical fact are forward­looking 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 forward­looking statements include, among other factors, the loss of a major customer; a significant volume change in automotive, commercial vehicle, motorcycle, off­highway vehicle and agricultural equipment production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 2/7 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 time­sensitive 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 forward­looking 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 forward­looking 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 September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 Net sales $ 162,057 $ 170,338 $ 490,171 $ 493,768 Costs and expenses: Cost of goods sold 116,912 120,788 355,432 347,795 Selling, general and administrative 26,331 31,204 85,555 93,587 Design and development 9,867 10,389 29,696 31,916 Goodwill impairment ­ (5,802) ­ 23,498 Operating income (loss) 8,947 13,759 19,488 (3,028) Interest expense, net 1,747 5,057 4,683 15,059 Equity in earnings of investee (160) (205) (492) (587) Loss on early extinguishment of debt ­ 920 ­ 920 Other (income) expense, net (83) 23 (343) 2,268 Income (loss) before income taxes from continuing operations 7,443 7,964 15,640 (20,688) Provision (benefit) for income taxes from continuing operations 32 (1,174) (202) (790) Income (loss) from continuing operations 7,411 9,138 15,842 (19,898) Discontinued operations: Income (loss) from discontinued operations, net of tax ­ (1,560) ­ 86 Loss on disposal, net of tax (113) (6,548) (226) (7,781) Loss from discontinued operations (113) (8,108) (226) (7,695) Net income (loss) 7,298 1,030 15,616 (27,593) 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 3/7 Net income (loss) attributable to noncontrolling interest (69) 1,160 (1,074) (7,039) Net income (loss) attributable to Stoneridge, Inc. $ 7,367 $ (130) $ 16,690 $ (20,554) Earnings (loss) per share from continuing operations attributable to Stoneridge, Inc.: Basic $ 0.27 $ 0.30 $ 0.62 $ (0.48) Diluted $ 0.27 $ 0.29 $ 0.61 $ (0.48) Loss per share attributable to discontinued operations: Basic $ (0.01) $ (0.30) $ (0.01) $ (0.28) Diluted $ (0.01) $ (0.29) $ (0.01) $ (0.28) Earnings (loss) per share attributable to Stoneridge, Inc.: Basic $ 0.26 $ 0.00 $ 0.61 $ (0.76) Diluted $ 0.26 $ 0.00 $ 0.60 $ (0.76) Weighted­average shares outstanding: Basic 27,444 26,954 27,299 26,914 Diluted 28,008 27,554 27,927 26,914 CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, (in thousands) 2015 2014 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 29,289 $ 43,021 Accounts receivable, less reserves of $1,057 and $2,017, respectively 112,595 105,102 Inventories, net 71,381 71,253 Prepaid expenses and other current assets 22,273 26,135 Total current assets 235,538 245,511 Long­term assets: Property, plant and equipment, net 83,258 85,311 Other assets: Intangible assets, net 35,833 56,637 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 4/7 Goodwill 1,000 1,078 Investments and other long­term assets, net 10,237 10,214 Total long­term assets 130,328 153,240 Total assets $ 365,866 $ 398,751 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of debt $ 17,913 $ 19,655 Accounts payable 59,012 58,593 Accrued expenses and other current liabilities 39,372 42,066 Total current liabilities 116,297 120,314 Long­term liabilities: Revolving credit facility 100,000 100,000 Long­term debt, net 4,982 10,651 Deferred income taxes 41,261 50,006 Other long­term liabilities 3,404 3,974 Total long­term liabilities 149,647 164,631 Shareholders' equity: Preferred Shares, without par value, 5,000 shares authorized, none issued ­ ­ Common Shares, without par value, 60,000 shares authorized, 28,907 and 28,853 shares issued and 27,912 and 28,221 shares outstanding at September 30, 2015 and December 31, 2014, respectively, with no stated value ­ ­ Additional paid­in capital 198,090 192,892 Common Shares held in treasury, 995 and 632 shares at September 30, 2015 and December 31, 2014, respectively, at cost (4,208) (1,284) Accumulated deficit (38,189) (54,879) Accumulated other comprehensive loss (70,044) (45,473) Total Stoneridge Inc. shareholders' equity 85,649 91,256 Noncontrolling interest 14,273 22,550 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 5/7 Total shareholders' equity 99,922 113,806 Total liabilities and shareholders' equity $ 365,866 $ 398,751 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) Three months ended Nine months ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Net income (loss) $ 7,298 $ 1,030 $ 15,616 $ (27,593) Less: Income (loss) attributable to noncontrolling interest (69) 1,160 (1,074) (7,039) Net income (loss) attributable to Stoneridge, Inc. 7,367 (130) 16,690 (20,554) Other comprehensive loss, net of tax attributable to Stoneridge, Inc.: Foreign currency translation (12,557) (12,528) (24,497) (6,164) Benefit plan liability tax adjustment ­ ­ (45) ­ Unrealized loss on derivatives (236) (144) (29) (49) Other comprehensive loss, net of tax attributable to Stoneridge, Inc. (12,793) (12,672) (24,571) (6,213) Comprehensive loss attributable to Stoneridge, Inc. $ (5,426) $ (12,802) $ (7,881) $ (26,767) The Company has combined comprehensive loss from continuing operations and comprehensive loss from discontinued operations herein. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended September 30 (in thousands) 2015 2014 OPERATING ACTIVITIES: Net cash provided by (used for) operating activities $ 17,133 $ (846) INVESTING ACTIVITIES: Capital expenditures (23,521) (19,772) Proceeds from sale of fixed assets 53 99 Change in restricted cash ­ (52,692) Payment for working capital adjustment related to Wiring sale (1,230) ­ Proceeds from sale of Wiring business ­ 71,386 Business acquisition (469) (1,022) Net cash used for investing activities (25,167) (2,001) FINANCING ACTIVITIES: Extinguishment of senior notes ­ (17,500) Premium related to early extinguishment of senior notes ­ (525) Proceeds from issuance of debt 19,116 20,462 Repayments of debt (20,015) (15,953) 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 6/7 Noncontrolling interest shareholder distribution ­ (1,083) Other financing costs (49) (1,499) Repurchase of Common Shares to satisfy employee tax withholding (2,854) (765) Net cash used for financing activities (3,802) (16,863) Effect of exchange rate changes on cash and cash equivalents (1,896) (2,165) Net change in cash and cash equivalents (13,732) (21,875) Cash and cash equivalents at beginning of period 43,021 62,825 Cash and cash equivalents at end of period $ 29,289 $ 40,950 The Company has combined cash flows from continuing operations and cash flows from discontinued operations within the operating, investing and financing categories. Exhibit 1 Existing Guidance Revised Guidance FX In Guidance Full Year Full Year FX In Guidance 2015 4Q15 USD / BRL 2.70 $667.0 ­ $687.0 Sales $643.2 ­ $652.2 USD / BRL 3.50 USD / MXN 14.64 28.0% ­ 30.0% Gross Margin 27.4% ­ 27.7% USD / MXN 16.20 EUR / USD 1.13 4.0% ­ 6.0% Operating Margin * 4.4% ­ 4.5% EUR / USD 1.11 USD / SEK 8.18 $0.77 ­ $0.92 Fully Dilluted EPS ** $0.86 ­ $0.93 USD / SEK 8.50 * (excludes 2Q15 Non­cash CEO Retirement Expense $2.2 million) ** (excludes 2Q15 Non­cash CEO Retirement Expense $0.08 / diluted share) Exhibit 2 Stoneridge, Inc. Reconciliation of Sales to Constant Currency Adjusted Sales Three months ended September 30, 2015 and 2014 (Unaudited) Increase / Percent 2015 2014 (Decrease) Increase Electronics Segment Sales As Reported $ 50,688 $ 54,951 $ (4,263) (7.8)% Plus: Constant Foreign Currency Translation Adjustment 6,575 ­ 6,575 Adjusted Electronics Segment Sales $ 57,263 $ 54,951 $ 2,312 4.2% PST Segment Sales As Reported $ 24,339 $ 37,029 $ (12,690) (34.3)% Plus: Constant Foreign Currency Translation Adjustment 13,182 ­ 13,182 Adjusted PST Segment Sales $ 37,521 $ 37,029 $ 492 1.3% Total Consolidated Sales As Reported $ 162,057 $ 170,338 $ (8,281) (4.9)% Plus: Constant Foreign Currency Translation Adjustment 19,757 ­ 19,757 Total Consolidated Constant Currency Adjusted Sales $ 181,814 $ 170,338 $ 11,476 6.7% 04/11/2015 www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 http://www.stoneridge.investorpass.com/profiles/investor/NewsPrint.asp?b=1344&ID=79622&m=rl&v=2&g=571 7/7 Exhibit 3 Stoneridge, Inc. Reconcilation of Earnings and Earnings Per Diluted Share to Adjusted Earnings and Earnings Per Share Three months ended September 30, 2015 and 2014 (Unaudited) 2015 2014 2015 2014 Income and Earnings Per Diluted Share from Continuing Operations Attributable to Stoneridge, Inc. $ 7,480 $ 7,978 $ 0.27 $ 0.29 Unusual Items ­ PST Goodwill Impairment and Debt Extinguishment Costs PST Goodwill Impairment Adjustment ­ (5,802) ­ (0.21) PST Goodwill Impairment Adjustment Attributable to Noncontrolling Interest ­ 1,274 ­ 0.05 Net PST Goodwill Impairment Attributable to Stoneridge, Inc. $ ­ $ (4,528) $ ­ $ (0.16) Debt Extinguishment Costs ­ 920 ­ 0.03 Total Adjustment for PST Goodwill Impairment and Debt Extinguishment ­ (3,608) ­ $ (0.13) Adjusted Income and Earnings Per Diluted Share from Continuing Operations Attributable to Stoneridge, Inc. $ 7,480 $ 4,370 $ 0.27 $ 0.16 Exhibit 4 Stoneridge, Inc. Reconciliation of Net Loss to Adjusted EBITDA from Continuing Operations Twelve months ended September 30, 2015 and 2014 (Unaudited) 2015 2014 Net loss $ (17,382) $ (27,272) Interest expense, net 6,504 19,705 Equity in earnings of investees (719) (668) Other (income) expense, net (2,047) 3,235 Benefit for income taxes (1,269) (252) Depreciation and amortization 23,941 29,994 Share­based compensation impact of CEO Retirement 2,225 ­ Discontinued operations 1,918 10,862 Loss on extinguishment of debt 9,687 920 PST purchase accounting and goodwill impairment 27,519 23,087 Adjusted EBITDA from continuing operations $ 50,377 $ 59,611 Total Debt $ 122,895 $ 183,239 Total Debt / Adjusted EBITDA from continuing operations $ 2.4 $ 3.1

Original source: http://www.stoneridge.investorpass.com/profiles/investor/ResLibraryView.asp?ResLibraryID=79622&GoTopage=1&Category=723&BzID=1344&G=571

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more