Stoneridge Reports First-Quarter 2015 Results

WARREN, Ohio, May 7, 2015 /PRNewswire/ --

• Adjusted EPS from Continuing Operations of $0.17, Excluding an Unusual, Non-Cash Expense Related to CEO Retirement of $2.2 Million, or $0.08 Per Share
• Results Driven by Continuing Positive Sales Performance from Control Devices and Electronics Segments and Benefit of Debt Refinancing
• Electronics Sales, Excluding Motherson Sales, Increase by 15.6% on a Constant Currency Basis
• Electronics and PST Sales and Earnings Negatively Affected by Foreign Currency Movements

Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2015.

First-quarter 2015 net sales were $162.8 million, an increase of $1.5 million, or 0.9%, compared with $161.3 million for the first quarter of 2014.

The Company's Control Devices segment sales increased by $2.5 million, or 3.3%, and the Electronics segment sales increased by $6.3 million, or 12.7%, while the PST segment sales decreased by $7.4 million, or 21.8%, compared with the first quarter of 2014.  Electronics sales in the first quarter of 2015 included $7.2 million of post-disposition sales to the Company's former Wiring business acquired by Motherson Sumi Systems Limited ("Motherson").  Prior to the disposition, these sales were accounted for as intercompany transactions and eliminated in consolidation.  Electronics sales were also negatively affected during the first quarter of 2015 by approximately $8.7 million as a result of foreign currency translation.  Excluding sales to Motherson and adjusting for constant first-quarter 2014 foreign exchange rates, sales have risen 15.6%.  (See Exhibit 2 for reconciliation of this non-GAAP measure. Including Motherson sales and unadjusted foreign exchange rates, Electronics segment sales increased by 12.7%.)  The sales increases in the Control Devices and Electronics segments reflect continued strength in the markets the Company serves. 

The Company's PST business segment experienced a sales decrease of $7.4 million, or 21.8%, compared with the first quarter of 2014, primarily due to unfavorable foreign currency exchange translation.  The Brazilian Real depreciated 20.9% to the U.S. dollar, quarter-to-quarter, which reduced U.S. dollar reported sales for PST by approximately 16.3%, or $5.5 million.  PST sales were also adversely affected by the deteriorating economic conditions in Brazil.  On a local currency basis, PST sales decreased by 5.5%.

The adjusted earnings per share from continuing operations attributable to Stoneridge, Inc. was $0.17 for the first quarter of 2015 (see Exhibit 1 for reconciliation of this non-GAAP measure).  The first-quarter 2015 net income from continuing operations attributable to Stoneridge, Inc. of $2.5 million, or $0.09 per diluted share, included a non-cash expense of $2.2 million, or $0.08 per diluted share, for higher share-based compensation expense as a result of the share grants that vest in connection with the announced retirement of John Corey, the Company's former President and Chief Executive Officer.

Earnings were also favorably affected by a lower effective tax rate compared to the same period for 2014 due to a higher mix of U.S. earnings, primarily caused by lower interest expense, which does not attract U.S. tax expense.

As of March 31, 2015, Stoneridge's consolidated cash position was $23.9 million, a decrease of $19.1 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. 

Jon DeGaynor, President and Chief Executive Officer, commented, "As expected, our Electronics and Control Devices segments continued to perform well in the first quarter, but PST's sales on a local currency basis performed slightly below our expectations.  While both our Electronics business and PST continue to be affected by significant foreign exchange headwinds, our teams are focused on overcoming these challenges. Each of our businesses is focused on developing and delivering products that provide both performance and value in their markets."

DeGaynor concluded, "As the newest member of the Stoneridge management team, I have sought to understand both the challenges and opportunities that our global leaders are addressing.  I have been able to visit many of our facilities, and I firmly believe Stoneridge to be a company led by an experienced and dedicated team that has created a sound business model featuring innovative products and a capable global footprint.  I believe the business is poised to deliver the largest increase to organic growth from new program sales in its history expected in 2016. Last year was a transitional year for Stoneridge with the sale of the Wiring business and the refinancing of our debt, and we intend to build on those successes in 2015 by focusing on actions that will further enhance shareholder value."

Conference Call on the WebA live Internet broadcast of Stoneridge's conference call regarding 2015 first-quarter results can be accessed at 10 a.m. Eastern time on Thursday, May 7, 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 off-highway vehicle markets.  Additional information about Stoneridge can be found at www.stoneridge.com.

Forward-Looking StatementsStatements 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 volume change in commercial vehicle, automotive, motorcycle, off-highway vehicle and agricultural equipment 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.

 

 

 

 

 

 

 

 

The Company has combined comprehensive income (loss) from continuing operations and comprehensive loss from discontinued operations herein. 

 

 

The Company has combined cash flows from continuing operations and cash flows from discontinued operations within the operating, investing and financing categories. 

 

 

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SOURCE Stoneridge, Inc.