Stoneridge Inc.

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Press Release $SRI Stoneridge Inc.

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Stoneridge Reports First-Quarter 2013 Results

WARREN, Ohio, May 9, 2013 /PRNewswire/ -- 

  • Continued Improvement in Operating Margin Driven by Cost Reductions and Sequential Sales Growth Over the Last Three Quarters
  • Positioned to Leverage Market Improvement
  • Deleveraging From 2012 Cash Flow Lowers Interest Expense
  • Company Maintains 2013 Guidance of $0.75-$0.95 per Share

Stoneridge, Inc. (NYSE: SRI) today announced financial results for the first quarter ended March 31, 2013.

First-quarter 2013 net sales were $235.7 million, a decrease of $26.6 million, or 10.1%, compared with $262.3 million for the first quarter of 2012. The decrease in the current quarter's net sales was primarily due to lower sales in the Company's Wiring business segment and lower sales in the PST business segment.

Net income for the first quarter of 2013 was $4.1 million, or $0.15 per diluted share, compared with net income of $5.9 million, or $0.22 per diluted share, in the first quarter of 2012.  The decrease in net income was primarily due to lower sales in the first quarter of 2013 compared with the same period in 2012.

As of March 31, 2013, Stoneridge's consolidated cash position was $46.7 million, an increase of $2.1 million from December 31, 2012.

"While our year-over-year sales comparisons were lower in the first quarter, over the last three quarters sales have improved 7.5% over the third quarter of 2012 and 5.8% over the fourth quarter of 2012. Our cost-reduction and other initiatives implemented during 2012 continued to favorably affect our operating margin. These actions, together with our participation in diversified markets and global reach, have reduced the impact of lower global commercial vehicle market demand and demonstrated our ability to continue generating operating profits with lower volumes," Corey noted. "Our cash flow and deleveraging in 2012 contributed to our earnings performance in the first quarter of 2013 through lower interest expense."

Corey continued, "PST's sales came in as expected and above the trough level experienced in the second quarter of 2012, while operating margins benefited from cost initiatives implemented in the second quarter of last year and mix driven largely from aftermarket products of alarm systems and tracking devices."

Regarding the remaining quarters, Corey added, "We are positioned to benefit from market improvement and expect to see continued financial performance improvement in the remaining quarters of 2013 as we have experienced in the last three quarters, and reaffirm our 2013 guidance of $0.75 to $0.95 per share as published on February 7, 2013, based on market improvement and cost initiatives."

Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2013 first-quarter results can be accessed at 11 a.m. Eastern time on Thursday, May 9, 2013, 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 commercial vehicle, automotive and agricultural, motorcycle and off-highway vehicle markets.  Additional information about Stoneridge can be found at 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.  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, agricultural, motorcycle 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.

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31 (in thousands, except per share data)


2013


2012











Net sales


$         235,710


$           262,267






Costs and expenses:





Cost of goods sold


176,981


197,129

Selling, general and administrative


48,437


53,289






Operating income


10,292


11,849






Interest expense, net


4,574


5,355

Equity in earnings of investees


(201)


(139)

Other expense (income), net


617


(331)






Income before income taxes


5,302


6,964






Provision for income taxes


1,019


1,218






Net income


4,283


5,746






Net income (loss) attributable to noncontrolling interest


160


(133)






Net income attributable to Stoneridge, Inc. 


$              4,123


$               5,879






Earnings per share attributable to Stoneridge, Inc.:





Basic


$                0.15


$                 0.22

Diluted


$                0.15


$                 0.22






Weighted average shares outstanding:





Basic


26,601


26,220

Diluted


27,395


26,857

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



March 31,


December 31,

(in thousands)


2013


2012



(Unaudited)



ASSETS










Current assets:





Cash and cash equivalents


$           46,724


$             44,555

Accounts receivable, less reserves of $3,534 and $3,394, respectively


158,852


141,503

Inventories, net


103,115


96,032

Prepaid expenses and other current assets


34,806


28,964

Total current assets


343,497


311,054






Long-term assets:





Property, plant and equipment, net


118,137


119,147

Other assets





Intangible assets, net


84,160


84,397

Goodwill


67,287


66,381

Investments and other long-term assets, net


11,791


11,712

Total long-term assets


281,375


281,637

Total assets


$        624,872


$           592,691






LIABILITIES AND SHAREHOLDERS' EQUITY










Current liabilities:





Current portion of debt


$           17,621


$             18,925

Revolving credit facilities


-


1,160

Accounts payable


85,017


76,303

Accrued expenses and other current liabilities


62,900


57,081

Total current liabilities


165,538


153,469






Long-term liabilities:





Long-term debt, net


193,531


181,311

Deferred income taxes


59,967


59,819

Other long-term liabilities


4,048


4,258

Total long-term liabilities


257,546


245,388






Shareholders' equity:





Preferred Shares, without par value, authorized 5,000 shares, none issued


-


-

Common Shares, without par value, authorized 60,000 shares, issued 28,803 and 28,433 shares and outstanding 28,489 and 27,913 shares at March 31, 2013 and December 31, 2012, respectively, with no stated value


 

-


-

Additional paid-in capital


184,187


184,822

Common Shares held in treasury, 314 and 520 shares at March 31, 2013 and December 31, 2012, respectively, at cost


(519)


(1,885)

Accumulated deficit


(18,779)


(22,902)

Accumulated other comprehensive loss


(7,778)


(10,282)

Total Stoneridge Inc. shareholders' equity


157,111


149,753

Noncontrolling interest


44,677


44,081

Total shareholders' equity


201,788


193,834

Total liabilities and shareholders' equity


$        624,872


$           592,691






 

 

 

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME  

 (Unaudited) 








 Three months ended March 31 (in thousands) 





2013


2012










 Net income 





$            4,283


$            5,746

 Other comprehensive income, net of tax: 








 Foreign currency translation adjustments 





2,245


7,111

 Unrealized gain on derivatives 





259


7,256

 Other comprehensive income, net of tax 





2,504


14,367

 Consolidated comprehensive income 





6,787


20,113

 Income (loss) attributable to noncontrolling interest 





160


(133)










 Comprehensive income attributable to Stoneridge, Inc. 





$            6,627


$          20,246

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three months ended March 31 (in thousands)


2013


2012






OPERATING ACTIVITIES:





Net cash provided by (used for) operating activities


$             (594)


$             5,862






INVESTING ACTIVITIES:





Capital expenditures


(5,818)


(6,848)

Proceeds from sale of fixed assets


16


143

Business acquisition


-


(19,779)

Net cash used for investing activities


(5,802)


(26,484)






FINANCING ACTIVITIES:





Revolving credit facility borrowings


-


160

Revolving credit facility payments


(1,160)


(7,418)

Proceeds from issuance of other debt


13,386


4,517

Repayments of other debt


(2,690)


(13,409)

Other financing costs


-


(99)

Repurchase of shares to satisfy employee tax withholding


(671)


(1,118)

Net cash provided by (used for) financing activities


8,865


(17,367)






Effect of exchange rate changes on cash and cash equivalents


(300)


2,192






Net change in cash and cash equivalents


2,169


(35,797)






Cash and cash equivalents at beginning of period


44,555


78,731






Cash and cash equivalents at end of period


$         46,724


$           42,934






Supplemental disclosure of non-cash financing activities:





Change in fair value of interest rate swap


$               (103)


$                  86

Issuance of Common Shares for acquisition of additional PST interest


$                     -


$           10,197






 


 

SOURCE Stoneridge, Inc.

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