EX-99.1 2 v121440_ex99-1.htm
Exhibit 99.1
 
FOR IMMEDIATE RELEASE
 
STONERIDGE REPORTS SECOND-QUARTER 2008 RESULTS
·  Net Sales and Income Increase Year-over-Year
·  Second-Quarter 2008 Net Income per Diluted Share Increases to $0.20, up 82% from 2007
·  Company Reaffirms Full-Year 2008 Earnings Outlook of $0.75 to $0.85 Per Diluted Share
 
WARREN, Ohio - July 31, 2008 - Stoneridge, Inc. (NYSE: SRI) today announced net sales of $213.2 million and net income of $4.7 million, or $0.20 per diluted share, for the second quarter ended June 30, 2008.
 
Net sales increased $29.4 million, or 16.0 percent, to $213.2 million, compared with $183.8 million for the second quarter of 2007. The increase in net sales was primarily attributable to new electronics program sales in North America, improvement in the Company’s European electronics business and the impact of foreign currency translation. The effect of foreign currency translation increased second-quarter net sales by approximately $4.4 million compared with the same period in 2007. The sales increase was partially offset by continuing weakness in the North American passenger car and light truck markets.
 
Net income for the second quarter was $4.7 million, or $0.20 per diluted share, compared with net income of $2.7 million, or $0.11 per diluted share, in the second quarter of 2007. The increase in net income was due primarily to strong electronics sales in North America and increased joint venture earnings. Partially offsetting these favorable impacts were $3.7 million in pre-tax expenses related to the Company’s previously announced restructuring initiatives and $0.3 million of pre-tax expenses related to the repurchase and retirement of $6.0 million in par value of the Company’s bonds.
 
“We continued our improved performance in the second quarter in the face of deteriorating conditions in our North American light vehicle markets,” said John C. Corey, president and chief executive officer. “This improved performance includes benefits resulting from our end-market strategy and we will continue pursuing diversity in our customers, business segments and geographic regions.”
 
For the six months ended June 30, 2008, net sales were $416.3 million, an increase of 12.9 percent compared with $368.8 million for the six months ended June 30, 2007. Net income for the 2008 six-month period was $11.2 million, or $0.47 per diluted share, compared with $7.6 million, or $0.32 per diluted share, in the comparable 2007 period.
 
Net cash provided by operating activities for the six months ended June 30, 2008 was $12.6 million, compared with net cash provided of $4.0 million for the six months ended June 30, 2007. The increase of $8.6 million in cash provided by operating activities was primarily due to favorable accounts payable variances relative to the previous year.
 
Outlook
“Based upon our first-half performance and the current industry forecasts, we are maintaining our previously issued guidance for full-year 2008 earnings of $0.75 to $0.85 per diluted share,” Corey said. “While I am encouraged by the progress we have made, the significant changes in the North American light truck and SUV market will impact our performance going forward. These market changes will continue to challenge our team and we have already begun adjusting to the new market realities.”
 
 
 
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Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2008 second-quarter results can be accessed at 11 a.m. Eastern time on Thursday July 31, 2008, 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, medium- and heavy-duty truck, agricultural and off-highway vehicle markets. Net sales in 2007 were approximately $727 million. 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 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.
 
For more information, contact:
 
Kenneth A. Kure, Corporate Treasurer and Director of Finance
330/856-2443
 
 
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STONERIDGE, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(in thousands, except per share data)
       
   
(unaudited)
 
   
Three Months Ended
  
Six Months Ended
  
   
June 30,
  
June 30,
  
   
2008
  
2007
  
2008
  
2007
  
                   
Net Sales
  
$
213,229
  
$
183,802
  
$
416,299
  
$
368,830
  
                           
Costs and Expenses:
                          
Cost of goods sold
    
163,875
   
144,920
   
315,128
   
287,101
 
Selling, general and administrative
    
36,731
   
33,598
   
73,021
   
66,730
 
(Gain) loss on sale of property, plant and equipment, net
    
153
   
(1,653
)
  
145
   
(1,688
)
Restructuring charges
    
1,713
   
31
   
3,135
   
72
 
                           
Operating Income
    
10,757
   
6,906
   
24,870
   
16,615
 
                           
Interest expense, net
    
4,880
   
5,619
   
10,252
   
11,103
 
Equity in earnings of investees
    
(3,016
)
  
(2,298
)
  
(6,835
)
  
(4,418
)
Loss on early extinguishment of debt
    
271
   
-
   
770
   
-
 
Other expense (income), net
    
(124
)
  
224
   
278
   
512
 
                           
Income Before Income Taxes
    
8,746
   
3,361
   
20,405
   
9,418
 
                           
Provision for income taxes
    
4,062
   
666
   
9,174
   
1,853
 
                           
Net Income
  
$
4,684
  
$
2,695
  
$
11,231
  
$
7,565
  
                           
Basic net income per share
  
$
0.20
  
$
0.12
  
$
0.48
  
$
0.33
  
Basic weighted average shares outstanding
   
23,286
   
23,114
   
23,327
   
23,052
 
                           
Diluted net income per share
  
$
0.20
  
$
0.11
  
$
0.47
  
$
0.32
  
Diluted weighted average shares outstanding
   
23,690
   
23,702
   
23,722
   
23,603
 


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STONERIDGE, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(in thousands)

   
June 30,
  
December 31,
  
   
2008
  
2007
  
ASSETS
  
(Unaudited)
  
(Audited)
  
           
Current Assets:
              
Cash and cash equivalents
  
$
81,342
  
$
95,924
  
Accounts receivable, less reserves of $5,587 and $4,736, respectively
   
142,472
   
122,288
 
Inventories, net
    
70,175
   
57,392
 
Prepaid expenses and other
    
17,365
   
15,926
 
Deferred income taxes
    
9,963
   
9,829
 
Total current assets
    
321,317
   
301,359
 
               
Long-Term Assets:
              
Property, plant and equipment, net
    
90,611
   
92,752
 
Other Assets:
              
Goodwill
    
65,730
   
65,176
 
Investments and other, net
    
47,962
   
39,454
 
Deferred income taxes
    
20,774
   
29,028
 
Total long-term assets
    
225,077
   
226,410
 
Total Assets
  
$
546,394
  
$
527,769
  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
               
Current Liabilities:
              
Accounts payable
  
$
76,809
  
$
69,373
  
Accrued expenses and other
    
56,104
   
47,198
 
Total current liabilities
    
132,913
   
116,571
 
               
Long-Term Liabilities:
              
Long-term debt
    
183,000
   
200,000
 
Deferred income taxes
    
2,909
   
2,665
 
Other liabilities
    
2,168
   
2,344
 
Total long-term liabilities
    
188,077
   
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 24,755 and 24,601shares and outstanding 24,660 and 24,209 shares, respectively, with no stated value
    
-
   
-
 
Additional paid-in capital
    
156,467
   
154,173
 
Common Shares held in treasury, 95 and 373 shares, respectively, at cost
    
(129
)
  
(383
)
Retained earnings
    
49,603
   
38,372
 
Accumulated other comprehensive income
    
19,463
   
14,027
 
Total shareholders’ equity
    
225,404
   
206,189
 
Total Liabilities and Shareholders' Equity
  
$
546,394
  
$
527,769
  

 
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STONERIDGE, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(in thousands)
       
   
(unaudited)
  
   
Six Months Ended
  
   
June 30,
  
   
2008
  
2007
  
OPERATING ACTIVITIES:
              
Net cash provided by operating activities
  
$
12,574
  
$
4,019
  
               
INVESTING ACTIVITIES:
              
Capital expenditures
    
(11,641
)
  
(10,814
)
Proceeds from sale of property, plant and equipment
    
307
   
4,951
 
Business acquisitions and other
    
(980
)
  
-
 
Net cash used for investing activities
   
(12,314
)
  
(5,863
)
               
FINANCING ACTIVITIES:
              
Repayments of long-term debt
   
(17,000
)
  
-
 
Share-based compensation activity, net
   
1,162
   
1,796
 
Premiums related to early extinguishment of debt
    
(553
)
  
-
 
Net cash (used for) provided by financing activities
   
(16,391
)
  
1,796
 
               
Effect of exchange rate changes on cash and cash equivalents
   
1,549
   
232
 
               
Net change in cash and cash equivalents
   
(14,582
)
  
184
 
               
Cash and cash equivalents at beginning of period
   
95,924
   
65,882
 
               
Cash and cash equivalents at end of period
 
$
81,342
  
$
66,066
  


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