- Proactive Restructuring Efforts Continue
- Positive Earnings and Cash Flow Expected in 2009
- Company Records Non-Cash Impairment Charges
The Company achieved income from continuing operations (excluding
restructuring and other non-recurring items) in 2008 of
Net sales decreased
Net income excluding the restructuring initiatives and the after-tax non-
cash goodwill expense and non-cash valuation allowance for the fourth quarter
was
'While we are not satisfied with our reported operating results, given the
volatility of the markets globally, we responded well in adjusting to lower
volumes,' said
Corey added, 'We are in an extremely volatile time for the transportation
industry globally. In this environment, we will continue to adjust our cost
structure and target near-term revenue opportunities. Because of our efforts
to improve our liquidity, we have
For the year ended
Net cash provided by operating activities for the year was
Use of Non-GAAP Financial Measures
A reconciliation of the Company's non-GAAP financial measures to the corresponding GAAP measures, and an explanation of the Company's use of non- GAAP measures, is included in the exhibits to this press release.
Outlook
'The environment for 2009 will most likely be the most challenging the Company has ever experienced,' Corey said. 'The same is true for the entire industry given the interdependence of the supply chain to the OEMs. Although we have positioned Stoneridge to weather the storm as we see it now, we have decided not to provide specific earnings guidance at this time, due to the uncertainty of market conditions. However, we expect that Stoneridge should be both earnings and cash flow positive in 2009 based on our expected sales in 2009.'
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2008
fourth-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; 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months For the Fiscal Years
Ended December 31, Ended December 31,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Audited)
Net Sales $157,965 $185,476 $752,698 $727,120
Costs and Expenses:
Cost of goods sold 128,194 137,352 586,411 559,397
Selling, general and
administrative 31,687 34,573 136,563 133,708
Gain on sale of property, plant
and equipment, net (529) (245) (571) (1,710)
Goodwill impairment charge 65,175 - 65,175 -
Restructuring charges 2,514 852 8,391 926
Operating Income (Loss) (69,076) 12,944 (43,271) 34,799
Interest expense, net 5,274 5,189 20,575 21,759
Equity in earnings of investees (2,284) (2,969) (13,490) (10,893)
Loss on early extinguishment of
debt - - 770 -
Other (income) loss, net (395) (76) (351) 709
Income (Loss) Before Income
Taxes (71,671) 10,800 (50,775) 23,224
Provision for income taxes 36,723 4,319 46,752 6,553
Net Income (Loss) $(108,394) $6,481 $(97,527) $16,671
Basic net income (loss) per
share $(4.63) $0.28 $(4.17) $0.72
Basic weighted average shares
outstanding 23,407 23,215 23,367 23,133
Diluted net income (loss) per
share $(4.63) $0.28 $(4.17) $0.71
Diluted weighted average shares
outstanding 23,407 23,524 23,367 23,548
STONERIDGE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2008 2007
ASSETS Unaudited
Current Assets:
Cash and cash equivalents $92,692 $95,924
Accounts receivable, less reserves of
$4,204 and $4,736, respectively 96,535 122,288
Inventories, net 54,800 57,392
Prepaid expenses and other 9,069 15,926
Deferred income taxes 1,495 9,829
Total current assets 254,591 301,359
Long-Term Assets:
Property, plant and equipment, net 87,701 92,752
Other Assets:
Goodwill 493 65,176
Investments and other, net 39,652 39,454
Deferred income taxes - 29,028
Total long-term assets 127,846 226,410
Total Assets $382,437 $527,769
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $50,719 $69,373
Accrued expenses and other 43,485 47,198
Total current liabilities 94,204 116,571
Long-Term Liabilities:
Long-term debt 183,000 200,000
Deferred income taxes 7,002 2,665
Other liabilities 6,473 2,344
Total long-term liabilities 196,475 205,009
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
24,665 and 24,209 shares, respectively,
with no stated value - -
Additional paid-in capital 158,039 154,173
Common Shares held in treasury, 107
and 392 shares, respectively, at cost (129) (383)
Retained (deficit) earnings (59,155) 38,372
Accumulated other comprehensive income
(loss) (6,997) 14,027
Total shareholders' equity 91,758 206,189
Total Liabilities and Shareholders' Equity $382,437 $527,769
STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Fiscal Years
Ended December 31,
2008 2007
(Unaudited) (Audited)
OPERATING ACTIVITIES:
Net cash provided by operating activities $42,456 $33,525
INVESTING ACTIVITIES:
Capital expenditures (24,573) (18,141)
Proceeds from sale of fixed assets 1,652 12,315
Business acquisitions and other (980) -
Net cash used for investing activities (23,901) (5,826)
FINANCING ACTIVITIES:
Repayments of long-term debt (17,000) -
Share-based compensation activity 1,322 2,119
Premiums related to early
extinguishment of debt (553) -
Other financing costs - (1,219)
Net cash provided by (used for)
financing activities (16,231) 900
Effect of exchange rate changes on
cash and cash equivalents (5,556) 1,443
Net change in cash and cash equivalents (3,232) 30,042
Cash and cash equivalents at
beginning of period 95,924 65,882
Cash and cash equivalents at end of period $92,692 $95,924
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
To supplement Stoneridge's condensed consolidated financial statements
presented on a basis in accordance with generally accepted accounting
principles (GAAP) in
A reconciliation of GAAP net loss and EPS to adjusted net income before
restructuring related expenses and other non-recurring costs and EPS is
presented below:
For the Three Months Ended
December 31,
2008 2007
Dollars EPS Dollars EPS
(Unaudited) (Unaudited)
Adjusted net income per share
before restructuring related
expenses and other non-
recurring items
Net income (loss) $(108,394) $(4.63) $6,481 $0.28
Total restructuring related
expenses, net of tax benefits 3,386 0.14 867 0.04
Goodwill impairment, net of
tax benefits 46,052 1.97 - -
Deferred tax asset valuation
allowance 62,006 2.65 - -
Adjusted net income before
restructuring related
expenses and other non-recurring
items $3,050 $0.13 $7,348 $0.31
Diluted weighted average shares
outstanding (1) 23,407 23,524
For the Fiscal Year Ended
December 31,
2008 2007
Dollars EPS Dollars EPS
(Unaudited) (Audited)
Adjusted net income per share
before restructuring related
expenses and other non-
recurring items
Net income (loss) $(97,527) $(4.17) $16,671 $0.71
Total restructuring related
expenses, net of tax benefits 12,286 0.53 915 0.04
Goodwill impairment, net of
tax benefits 46,052 1.97 - -
Deferred tax asset valuation
allowance 62,006 2.65 - -
Adjusted net income before
restructuring related
expenses and other non-recurring
items $22,817 $0.98 $17,586 $0.75
Diluted weighted average shares
outstanding (1) 23,367 23,548
(1) - Basic and Diluted weighted average shares outstanding are the same
for 2008 periods as a net loss caused the dilutive shares to have an
anti-dilutive effect.
SOURCE Stoneridge, Inc.
