-- Net Sales Increase Year-over-Year; Restructuring Charges Result in Net Loss for Quarter
-- Income Before Restructuring Charges Increases Year-over-Year
-- Proactive Restructuring Efforts Continue
-- Company Reaffirms Revised Full-Year Earnings Outlook of $0.40 to $0.46 Per Diluted Share
Net sales increased
Net loss for the third quarter was
'Our sales increase occurred despite a 23 percent drop in vehicle
production at the traditional domestic light vehicle manufacturers,' said
For the nine months ended
Net cash provided by operating activities for the nine months ended
Outlook
'As we announced on
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2008
third-quarter results can be accessed at
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in
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 change in automotive, medium- and heavy-duty truck or agricultural and off-highway vehicle production; 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,
2008 2007 2008 2007
Net Sales $178,434 $172,814 $594,733 $541,644
Costs and Expenses:
Cost of goods sold 143,089 134,944 458,217 422,045
Selling, general and
administrative 31,855 32,405 104,876 99,135
(Gain) Loss on sale of property,
plant and equipment, net (187) 223 (42) (1,465)
Restructuring charges 2,742 2 5,877 74
Operating Income 935 5,240 25,805 21,855
Interest expense, net 5,049 5,467 15,301 16,570
Equity in earnings of investees (4,371) (3,506) (11,206) (7,924)
Loss on early extinguishment of
debt - - 770 -
Other expense (income), net (234) 273 44 785
Income Before Income Taxes 491 3,006 20,896 12,424
Provision for income taxes 855 381 10,029 2,234
Net Income (Loss) $(364) $2,625 $10,867 $10,190
Basic net income (loss) per
share $(0.02) $0.11 $0.47 $0.44
Basic weighted average shares
outstanding 23,405 23,213 23,353 23,106
Diluted net income (loss) per
share $(0.02) $0.11 $0.46 $0.43
Diluted weighted average shares
outstanding 23,405 23,694 23,728 23,656
STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
September 30, December 31,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $89,611 $95,924
Accounts receivable, less reserves of
$5,029 and $4,736, respectively 115,324 122,288
Inventories, net 67,543 57,392
Prepaid expenses and other 16,812 15,926
Deferred income taxes 10,150 9,829
Total current assets 299,440 301,359
Long-Term Assets:
Property, plant and equipment, net 88,882 92,752
Other Assets:
Goodwill 65,656 65,176
Investments and other, net 46,435 39,454
Deferred income taxes 21,714 29,028
Total long-term assets 222,687 226,410
Total Assets $522,127 $527,769
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $66,465 $69,373
Accrued expenses and other 53,864 47,198
Total current liabilities 120,329 116,571
Long-Term Liabilities:
Long-term debt 183,000 200,000
Deferred income taxes 2,521 2,665
Other liabilities 1,926 2,344
Total long-term liabilities 187,447 205,009
Shareholders' Equity:
Preferred Shares, without par value,
authorized 5,000 shares, none issued - -
Common Shares, without par value,
authorized 60,000 shares, issued
24,772 and 24,601 shares and
outstanding 24,668 and 24,209 shares,
respectively, with no stated value - -
Additional paid-in capital 157,281 154,173
Common Shares held in treasury, 104
and 373 shares, respectively, at cost (129) (383)
Retained earnings 49,239 38,372
Accumulated other comprehensive income 7,960 14,027
Total shareholders' equity 214,351 206,189
Total Liabilities and Shareholders' Equity $522,127 $527,769
STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
2008 2007
OPERATING ACTIVITIES:
Net cash provided by operating activities $30,668 $7,909
INVESTING ACTIVITIES:
Capital expenditures (17,956) (14,259)
Proceeds from sale of property, plant
and equipment 435 5,042
Business acquisitions and other (980) -
Net cash used for investing activities (18,501) (9,217)
FINANCING ACTIVITIES:
Repayments of long-term debt (17,000) -
Share-based compensation activity, net 1,305 1,956
Premiums related to early
extinguishment of debt (553) -
Net cash provided by (used for)
financing activities (16,248) 1,956
Effect of exchange rate changes on
cash and cash equivalents (2,232) 1,119
Net change in cash and cash equivalents (6,313) 1,767
Cash and cash equivalents at
beginning of period 95,924 65,882
Cash and cash equivalents at end of period $89,611 $67,649
SOURCE Stoneridge, Inc.
