FIRST-QUARTER PERFORMANCE DRIVEN PRIMARILY
BY FAVORABLE IMPACT OF
PRICING ACTIONS / MATERIAL COST RECOVERY EFFORTS AND SUPPLY CHAIN
INITIATIVES
ANNOUNCING CONTINUED MIRROREYE FLEET TRIAL
EXPANSIONS WITH SCHNEIDER, MAVERICK
AND NUSSBAUM – OEM TAKE RATES REMAIN STRONG
2022 First-Quarter Results
- Loss per share ("EPS") of ($0.28)
- Adjusted EPS of ($0.27)
- Sales of $221.1
million
- Adjusted sales of $196.6
- Gross profit of $41.4 million
(21.1% of adjusted sales)
- Operating loss of ($3.0)
million ((1.5%) of adjusted sales)
- EBITDA of $4.3 million (2.2%
of adjusted sales)
2022 Full-year Guidance Update
- Maintaining full-year 2022 revenue guidance of $860 million to $900
million
- Increasing 2022 adjusted gross margin, operating margin and
EBITDA margin guidance by 25 basis points to reflect favorable
ongoing impact of cost recovery efforts and supply chain
initiatives
- Expecting incremental tax expense based on forecasted
geographic mix of earnings and forecasted US tax on foreign
operations
- Maintaining adjusted EPS guidance of ($0.15) to $0.10
-
- Improved margin performance approximately offset by incremental
tax expense
NOVI,
Mich., May 4, 2022 /PRNewswire/ -- Stoneridge,
Inc. (NYSE: SRI) today announced financial results for the first
quarter ended March 31, 2022, with
sales of $221.1 million and loss per
share of ($0.28). Adjusted sales were
$196.6 million and adjusted EPS was
($0.27) for the first quarter. Sales
were adjusted to normalize the impact of $24.4 million of electronic component spot buys
recovered from customers within the quarter. The exhibits attached
hereto provide reconciliation detail on this and all other
normalizing adjustments.
For the first quarter of 2022, Stoneridge reported gross profit
of $41.4 million (21.1% of adjusted
sales). Operating loss was ($3.0)
million ((1.5%) of adjusted sales). EBITDA was $4.3 million (2.2% of adjusted
sales).
Jon DeGaynor, president and chief
executive officer, commented, "In the first quarter we delivered
financial performance that exceeded our previously outlined
expectations despite continued macroeconomic challenges and supply
chain disruptions impacting production and driving increased
material costs. Our performance was driven by negotiated
price increases that offset approximately 90% of the incremental
material costs we incurred during the quarter. In addition to
cost recovery actions, we continued to implement supply chain
strategies to secure materials as efficiently as possible and
support our customers in meeting strong demand in each of our
end-markets. The actions we took in the quarter reduced the
net impact of rising material costs and secured components to
support our global customers, providing a strong foundation for
more stable financial performance in 2022."
DeGaynor continued, "While we continue to work to efficiently
execute and respond to market externalities, we are also focused on
the growth initiatives that will drive long-term, profitable growth
in 2022 and beyond. During the quarter, we continued to
expand our MirrorEye® platform with the ongoing ramp-up of our
first OEM program in Europe. Take
rates remain strong as we have delivered over 2,500 systems to date
and we continue to expect take rates of at least 35% for the
full-year. Similarly, our retrofit market continues to expand
with some of the largest fleets in North America. We are
announcing continued retrofit expansion with both Maverick and
Schneider and a new partnership with Nussbaum to expand their fleet
trials. To date we have installed over 550 systems on
Maverick vehicles, representing a large portion of the newer trucks
in their fleet. We expect to have MirrorEye installed on over
1,000 Maverick trucks by the end of the year. Similarly, we
continue to expand with Schneider as they plan to adopt the system
across new divisions, operating units and locations this
year. Nussbaum has also kicked-off their evaluations and we
expect continued expansion across their fleet. We are excited
about the market acceptance of the MirrorEye retrofit programs and
expect to have additional and incremental fleet announcements with
both our existing named partners and new partners in the coming
quarters."
First Quarter in Review
Control Devices sales totaled $85.0
million, a decrease of 12.5% relative to adjusted sales
excluding the divested soot sensor business in the first quarter of
2021, primarily due to lower production volumes in the Company's
end-markets as a result of supply chain constraints and
Covid-related shutdowns impacting production in China in the first quarter of 2022 partially
offset by customer price increases. First quarter adjusted
operating margin was 8.0%, a decrease of 320 basis points relative
to the first quarter of 2021, excluding the impact of the divested
business, primarily due to the increase in material costs as a
result of supply chain constraints.
Relative to the fourth quarter of 2021, Control Devices sales
increased 6.4% relative to adjusted sales excluding the divested
soot sensor business, primarily due to improved stability in
customer production and customer price increases during the quarter
partially offset by Covid-related shutdowns impacting production
volumes in China. First
quarter adjusted operating margin increased 300 basis points
relative to the fourth quarter of 2021, excluding the impact of the
divested business, primarily due to pricing actions completed in
the first quarter and reduced SG&A costs.
Electronics adjusted sales totaled $108.3
million, an increase of 22.0% relative to sales in the first
quarter of 2021, primarily due to increased end-market demand,
customer price increases and the ramp-up of new program launches
partially offset by an unfavorable foreign currency impact of
($4.9) million. First quarter
adjusted operating margin was (2.5%), a decrease of 180 basis
points relative to the first quarter of 2021 primarily due to the
increase in material costs as a result of supply chain constraints.
Relative to the fourth quarter of 2021, Electronics sales
increased 12.2%, primarily due to increased end-market demand and
customer price increases partially offset by an unfavorable foreign
currency impact of ($1.7) million.
Adjusted operating margin increased 240 basis points relative to
the fourth quarter of 2021, primarily driven by pricing actions
completed in the first quarter and favorable net engineering costs
due in part to the timing of engineering recoveries from
customers.
Stoneridge Brazil sales were $12.0
million, an increase of 5.6% relative to sales in the first
quarter of 2021, primarily due to favorable foreign currency impact
of $0.7 million. First quarter
adjusted operating margin increased by 420 basis points relative to
the first quarter of 2021, primarily due to lower SG&A costs.
Relative to the fourth quarter of 2021, Stoneridge Brazil sales
decreased by approximately $1.9
million due to typical sales seasonality in the first
quarter offset by a favorable foreign currency impact of
$0.9 million. Stoneridge Brazil
adjusted operating margin increased by 190 basis points relative to
the fourth quarter of 2021 primarily due to lower material costs as
a result of sales mix and lower cost of imported materials as a
result of the strengthening of the Brazilian Reais against the US
dollar rate during the quarter.
Cash and Debt Balances
As of March 31, 2022, Stoneridge
had cash and cash equivalents balances totaling $41.4 million. Total debt as of March 31, 2022 was $152.9
million. The Company's 2022 amendment to the current Credit
Facility waives the leverage ratio covenant for the first three
quarters of 2022 and modifies the fourth quarter of 2022 covenant
to include a maximum 4.75x leverage ratio. The Company expects to
return to a more normalized net debt to trailing-twelve month
adjusted EBITDA ratio by the end of 2022 with significant
improvement in EBITDA expected in the second half of the year.
2022 Outlook
Matt Horvath, chief financial
officer, commented, "The pricing and supply chain actions taken in
the first quarter will provide us with a strong foundation to drive
significantly improved financial performance in 2022. We expect
continued strong demand, particularly in the second half of the
year, as our new programs continue to ramp up and expand and supply
chains continue to stabilize. However, material availability
and global logistics dynamics continue to create the potential for
volatility in production schedules for both us and our
customers."
Horvath continued, "We are maintaining our full-year 2022
revenue and adjusted EPS guidance to reflect current market
conditions and customer forecasts. We are raising our
midpoint adjusted gross, operating and EBITDA margin expectations
by 25 basis points to account for the ongoing favorable impact of
pricing actions taken in the first quarter to offset incremental
material prices. However, we expect offsetting incremental
tax expenses based on our forecasted geographic mix of earnings and
forecasted US tax on foreign operations to result in adjusted EPS
guidance in-line with our previously outlined expectations of
($0.15) - $0.10."
The Company announced updated full-year adjusted gross margin
guidance of 21.75% to 22.75% and adjusted operating margin guidance
of 1.0% to 2.0%. Full-year tax expense guidance was updated to
$4.5 million to $6.5 million. Adjusted EBITDA margin
guidance was updated to 5.25% to 6.25%.
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call
regarding 2022 first-quarter results can be accessed at
9:00 a.m. Eastern Time on Thursday,
May 5, 2022, at www.stoneridge.com, which will also offer a webcast
replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and
manufacturer of highly engineered electrical and electronic
components, modules and systems for the automotive, commercial,
off-highway, and agricultural vehicle markets. Additional
information about Stoneridge can be found at
www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain "forward-looking
statements" under the Private Securities Litigation Reform Act of
1995. These statements appear in a number of places in this report
and may include statements regarding the intent, belief or current
expectations of the Company, with respect to, among other things,
our (i) future product and facility expansion, (ii) acquisition
strategy, (iii) investments and new product development, (iv)
growth opportunities related to awarded business, and (v)
operational expectations. Forward-looking statements may be
identified by the words "will," "may," "should," "designed to,"
"believes," "plans," "projects," "intends," "expects," "estimates,"
"anticipates," "continue," and similar words and expressions.
The forward-looking statements are subject to risks and
uncertainties that could cause actual events or results to differ
materially from those expressed in or implied by the statements.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
among other factors:
- the ability of our suppliers to supply us with parts and
components at competitive prices on a timely basis, including the
impact of potential tariffs and trade considerations on their
operations and output;
- global economic trends, competition and geopolitical risks,
including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other
measures, or an escalation of sanctions, tariffs or other trade
tensions between the U.S. and China or other countries;
- our ability to achieve cost reductions that offset or exceed
customer-mandated selling price reductions;
- the impact of COVID-19, or other future pandemics, on the
global economy, and on our customers, suppliers, employees,
business and cash flows;
- the reduced purchases, loss or bankruptcy of a major customer
or supplier;
- the costs and timing of business realignment, facility closures
or similar actions;
- a significant change in automotive, commercial, off-highway or
agricultural vehicle production;
- competitive market conditions and resulting effects on sales
and pricing;
- the impact of changes in foreign currency fluctuations
- customer acceptance of new products;
- our ability to successfully launch/produce products for awarded
business;
- adverse changes in laws, government regulations or market
conditions, including tariffs, affecting our products or our
customers' products;
- our ability to protect our intellectual property and
successfully defend against assertions made against us;
- liabilities arising from warranty claims, product recall or
field actions, product liability and legal proceedings to which we
are or may become a party, or the impact of product recall or field
actions on our customers;
- labor disruptions at our facilities or at any of our
significant customers or suppliers;
- business disruptions due to natural disasters or other
disasters outside of our control;
- fluctuations in the cost and availability of key materials
(including semiconductors, printed circuit boards, resin, aluminum,
steel and copper) and components and our ability to offset cost
increases;
- the amount of our indebtedness and the restrictive covenants
contained in the agreements governing our indebtedness, including
our revolving credit facility;
- capital availability or costs, including changes in interest
rates or market perceptions;
- the failure to achieve the successful integration of any
acquired company or business;
- risks related to a failure of our information technology
systems and networks, and risks associated with current and
emerging technology threats and damage from computer viruses,
unauthorized access, cyber-attack and other similar disruptions;
and
- the items described in Part I, Item IA ("Risk Factors") of our
2021 10-K filed with the SEC.
The forward-looking statements contained herein represent our
estimates only as of the date of this release and should not be
relied upon as representing our estimates as of any subsequent
date. While we may elect to update these forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so, whether to reflect actual results, changes
in assumptions, changes in other factors affecting such
forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company's
financial results that is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP
financial measures are reconciled to their closest GAAP financial
measures at the end of this press release. The provision of these
non-GAAP financial measures for 2022 and 2021 is not intended to
indicate that Stoneridge is explicitly or implicitly providing
projections on those non-GAAP financial measures, and actual
results for such measures are likely to vary from those presented.
The reconciliations include all information reasonably available to
the Company at the date of this press release and the adjustments
that management can reasonably predict.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that adjusted
sales, adjusted gross income and margin, adjusted operating income
(loss) and margin, adjusted net income (loss), adjusted earnings
(loss) per share, adjusted EBITDA, adjusted EBITDA margin, net
debt, adjusted income before tax, adjusted income tax expense and
adjusted tax rate are useful measures in assessing the Company's
financial performance by excluding certain items that are not
indicative of the Company's core operating performance or that may
obscure trends useful in evaluating the Company's continuing
operating activities. Management also believes that these
measures are useful to both management and investors in their
analysis of the Company's results of operations and provide
improved comparability between fiscal periods.
Adjusted sales, adjusted gross income and margin, adjusted
operating income (loss) and margin, adjusted net income (loss),
adjusted earnings (loss) per share and adjusted EBITDA, net debt,
adjusted income before tax and adjusted tax rate should not be
considered in isolation or as a substitute for sales, gross profit,
operating income (loss), net income (loss), earnings (loss) per
share, debt, income before tax, income tax benefit or tax rate,
cash provided by operating activities or other income statement or
cash flow statement data prepared in accordance with GAAP.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March 31,
|
(in thousands,
except per share data)
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
221,058
|
|
$
|
193,795
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
|
179,615
|
|
|
147,709
|
Selling, general and
administrative
|
|
|
|
27,399
|
|
|
29,376
|
Design and
development
|
|
|
|
17,028
|
|
|
14,651
|
Operating (loss)
income
|
|
|
|
(2,984)
|
|
|
2,059
|
Interest expense,
net
|
|
|
|
1,786
|
|
|
1,766
|
Equity in loss
(earnings) of investee
|
|
|
|
81
|
|
|
(614)
|
Other expense,
net
|
|
|
|
1,331
|
|
|
358
|
(Loss) income before
income taxes
|
|
|
|
(6,182)
|
|
|
549
|
Provision for income
taxes
|
|
|
|
1,493
|
|
|
419
|
Net (loss)
income
|
|
|
$
|
(7,675)
|
|
$
|
130
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.28)
|
|
$
|
0.00
|
Diluted
|
|
|
$
|
(0.28)
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
27,199
|
|
|
27,017
|
Diluted
|
|
|
|
27,199
|
|
|
27,486
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
(in
thousands)
|
|
2022
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
41,388
|
|
$
|
85,547
|
Accounts receivable,
less reserves of $1,258 and $1,443, respectively
|
|
|
155,994
|
|
|
150,388
|
Inventories,
net
|
|
|
148,352
|
|
|
138,115
|
Prepaid expenses and
other current assets
|
|
|
50,569
|
|
|
36,774
|
Total current
assets
|
|
|
396,303
|
|
|
410,824
|
Long-term
assets:
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
109,105
|
|
|
107,901
|
Intangible assets,
net
|
|
|
49,321
|
|
|
49,863
|
Goodwill
|
|
|
35,412
|
|
|
36,387
|
Operating lease
right-of-use asset
|
|
|
17,128
|
|
|
18,343
|
Investments and other
long-term assets, net
|
|
|
43,579
|
|
|
42,081
|
Total long-term
assets
|
|
|
254,545
|
|
|
254,575
|
Total assets
|
|
$
|
650,848
|
|
$
|
665,399
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
|
5,183
|
|
$
|
5,248
|
Accounts
payable
|
|
|
102,643
|
|
|
97,679
|
Accrued expenses and
other current liabilities
|
|
|
71,214
|
|
|
70,139
|
Total current
liabilities
|
|
|
179,040
|
|
|
173,066
|
Long-term
liabilities:
|
|
|
|
|
|
|
Revolving credit
facility
|
|
|
147,745
|
|
|
163,957
|
Deferred income
taxes
|
|
|
10,636
|
|
|
10,706
|
Operating lease
long-term liability
|
|
|
13,785
|
|
|
14,912
|
Other long-term
liabilities
|
|
|
5,718
|
|
|
6,808
|
Total long-term
liabilities
|
|
|
177,884
|
|
|
196,383
|
Shareholders'
equity:
|
|
|
|
|
|
|
Preferred Shares,
without par value, 5,000 shares authorized, none issued
|
|
|
-
|
|
|
-
|
Common Shares, without
par value, 60,000 shares authorized, 28,966 and 28,966 shares
issued and
27,316 and 27,191 shares outstanding at March 31, 2022 and December
31, 2021, respectively, with no
stated value
|
|
|
-
|
|
|
-
|
Additional paid-in
capital
|
|
|
228,837
|
|
|
232,490
|
Common Shares held in
treasury, 1,650 and 1,775 shares at March 31, 2022 and December 31,
2021,
respectively, at cost
|
|
|
(51,171)
|
|
|
(55,264)
|
Retained
earnings
|
|
|
208,073
|
|
|
215,748
|
Accumulated other
comprehensive loss
|
|
|
(91,815)
|
|
|
(97,024)
|
Total shareholders'
equity
|
|
|
293,924
|
|
|
295,950
|
Total liabilities and
shareholders' equity
|
|
$
|
650,848
|
|
$
|
665,399
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, (in thousands)
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(7,675)
|
|
$
|
130
|
Adjustments to
reconcile net income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
6,877
|
|
|
7,068
|
Amortization, including
accretion and write-off of deferred financing
costs
|
|
|
2,357
|
|
|
1,513
|
Deferred income
taxes
|
|
|
(605)
|
|
|
(1,609)
|
Loss (earnings) of
equity method investee
|
|
|
81
|
|
|
(614)
|
Gain on sale of fixed
assets
|
|
|
(94)
|
|
|
(37)
|
Share-based
compensation expense
|
|
|
1,098
|
|
|
1,162
|
Excess tax deficiency
(benefit) related to share-based compensation expense
|
|
|
265
|
|
|
(319)
|
Gain on disposal of
business and joint venture, net
|
|
|
-
|
|
|
(739)
|
Change in fair value of
earn-out contingent consideration
|
|
|
-
|
|
|
72
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(6,129)
|
|
|
(15,953)
|
Inventories,
net
|
|
|
(9,812)
|
|
|
(7,282)
|
Prepaid expenses and
other assets
|
|
|
(12,842)
|
|
|
(4,744)
|
Accounts
payable
|
|
|
6,581
|
|
|
6,725
|
Accrued expenses and
other liabilities
|
|
|
87
|
|
|
(2,439)
|
Net cash used for
operating activities
|
|
|
(19,811)
|
|
|
(17,066)
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
Capital expenditures,
including intangibles
|
|
|
(7,368)
|
|
|
(7,718)
|
Proceeds from sale of
fixed assets
|
|
|
132
|
|
|
155
|
Proceeds from disposal
of business, net
|
|
|
-
|
|
|
1,050
|
Investment in venture
capital fund, net
|
|
|
-
|
|
|
(399)
|
Net cash used for
investing activities
|
|
|
(7,236)
|
|
|
(6,912)
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Revolving credit
facility borrowings
|
|
|
-
|
|
|
20,500
|
Revolving credit
facility payments
|
|
|
(16,000)
|
|
|
(3,000)
|
Proceeds from issuance
of debt
|
|
|
9,834
|
|
|
11,434
|
Repayments of
debt
|
|
|
(10,311)
|
|
|
(13,763)
|
Repurchase of Common
Shares to satisfy employee tax withholding
|
|
|
(669)
|
|
|
(2,347)
|
Net cash (used for)
provided by financing activities
|
|
|
(17,146)
|
|
|
12,824
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
34
|
|
|
(2,257)
|
Net change in cash and
cash equivalents
|
|
|
(44,159)
|
|
|
(13,411)
|
Cash and cash
equivalents at beginning of period
|
|
|
85,547
|
|
|
73,919
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
41,388
|
|
$
|
60,508
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid for interest,
net
|
|
$
|
1,435
|
|
$
|
1,652
|
Cash paid for income
taxes, net
|
|
$
|
1,491
|
|
$
|
3,742
|
Regulation G
Non-GAAP Financial Measure Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to US
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1 - Adjusted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Q1
2022 Adjusted EPS
|
|
|
|
|
|
(USD in
millions)
|
Q1
2022
|
Q1 2022
EPS
|
|
|
|
Net Income
(Loss)
|
$
(7.7)
|
$
(0.28)
|
|
|
|
|
|
|
|
|
|
Add: Post-Tax Write-off
of Deferred Financing Fees
|
0.3
|
0.01
|
|
|
|
Adjusted Net Income
(Loss)
|
$
(7.4)
|
$
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2 – Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q2
2021
|
Q3
2021
|
Q4
2021
|
Q1
2022
|
Income (Loss) Before
Tax
|
$
0.5
|
$
25.6
|
$
(9.8)
|
$
(3.9)
|
$
(6.2)
|
Interest expense,
net
|
1.8
|
1.9
|
1.4
|
0.1
|
1.8
|
Depreciation and
amortization
|
8.4
|
8.5
|
8.2
|
8.7
|
8.7
|
EBITDA
|
$
10.8
|
$
36.0
|
$
(0.2)
|
$
5.0
|
$
4.3
|
Add: Pre-Tax Change in
Fair Value of Earn-Out (Stoneridge Brazil)
|
0.1
|
1.1
|
0.2
|
0.6
|
-
|
Less: Pre-Tax TSA and
Monetary Correction (Stoneridge Brazil)
|
-
|
-
|
-
|
(1.1)
|
-
|
Less: Pre-Tax Gain from
Disposal of MSIL Joint Venture
|
-
|
-
|
-
|
(1.8)
|
-
|
Add: Pre-Tax
Restructuring Costs
|
1.4
|
0.3
|
0.7
|
0.1
|
-
|
Less: Pre-Tax Gain on
Sale of Canton Facility
|
-
|
(30.7)
|
-
|
-
|
-
|
Add: Pre-Tax Business
Realignment Costs
|
0.2
|
0.1
|
1.1
|
0.0
|
-
|
Add: Pre-Tax Brazilian
Indirect Tax Impairment
|
-
|
0.6
|
-
|
-
|
-
|
Less: Pre-Tax Gain from
Disposal of Soot Sensor Business
|
(0.7)
|
-
|
-
|
(0.4)
|
-
|
Less: Pre-Tax Sale of
Soot Sensor Product Inventory
|
(0.1)
|
-
|
-
|
0.1
|
-
|
Add: Pre-Tax
Environmental Remediation Costs
|
0.4
|
-
|
-
|
-
|
-
|
Adjusted
EBITDA
|
$
12.1
|
$
7.4
|
$
1.8
|
$
2.4
|
$
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 3 – Adjusted
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Gross Profit
|
|
|
|
|
|
(USD in
millions)
|
Q4
2021
|
Q1
2022
|
|
|
|
Gross
Profit
|
$
41.9
|
$
41.4
|
|
|
|
|
|
|
|
|
|
Add: Pre-Tax
Restructuring Costs
|
0.1
|
-
|
|
|
|
Adjusted Gross
Profit
|
$
42.0
|
$
41.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 4 - Adjusted
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Income (Loss)
|
|
|
|
|
|
(USD in
millions)
|
Q4
2021
|
Q1
2022
|
|
|
|
Operating Income
(Loss)
|
$
(4.4)
|
$
(3.0)
|
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Change in
Fair Value of Earn-Out (Stoneridge Brazil)
|
0.6
|
-
|
|
|
|
Less: Pre-Tax TSA and
Monetary Correction (Stoneridge Brazil)
|
(1.1)
|
-
|
|
|
|
Less: Pre-Tax Gain from
Disposal of MSIL Joint Venture
|
(1.8)
|
-
|
|
|
|
Add: Pre-Tax
Restructuring Costs
|
0.1
|
-
|
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
0.0
|
|
|
|
|
Less: Pre-Tax Gain from
Disposal of Soot Sensor Business
|
(0.4)
|
-
|
|
|
|
Add: Pre-Tax Sale of
Soot Sensor Product Inventory
|
0.1
|
-
|
|
|
|
Adjusted Operating
Income (Loss)
|
$
(7.0)
|
$
(3.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 5 – Segment
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Control Devices Adjusted Operating Income
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Control Devices
Operating Income
|
$
10.2
|
$
4.8
|
$
6.8
|
|
|
|
|
|
|
|
|
Add: Pre-Tax
Restructuring Costs
|
1.4
|
0.1
|
-
|
|
|
Less: Pre-Tax Gain from
Disposal of Soot Sensor Business
|
(0.7)
|
(0.4)
|
-
|
|
|
Add: Pre-Tax Business
Realignment Costs
|
0.2
|
-
|
-
|
|
|
Less: Pre-Tax Sale of
Soot Sensor Product Inventory
|
(0.1)
|
0.1
|
-
|
|
|
Add: Pre-Tax
Environmental Remediation Costs
|
0.4
|
-
|
-
|
|
|
Control Devices
Adjusted Operating Income
|
$
11.3
|
$
4.5
|
$
6.8
|
|
|
|
|
|
|
|
|
Reconciliation of
Electronics Adjusted Operating Income (Loss)
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Electronics
Operating Income (Loss)
|
$
(0.9)
|
$
(4.7)
|
$
(2.7)
|
|
|
|
|
|
|
|
|
Add: Pre-Tax
Restructuring Costs
|
0.2
|
-
|
-
|
|
|
Electronics Adjusted
Operating Income (Loss)
|
$
(0.7)
|
$
(4.7)
|
$
(2.7)
|
|
|
|
|
|
|
|
|
Reconciliation of
Stoneridge Brazil Adjusted Operating Income
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Stoneridge Brazil
Operating Income
|
$
(0.0)
|
$
0.9
|
$
0.5
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Change in
Fair Value of Earn-Out (Stoneridge Brazil)
|
0.1
|
0.6
|
-
|
|
|
Less: Pre-Tax TSA and
Monetary Correction (Stoneridge Brazil)
|
-
|
(1.1)
|
-
|
|
|
Stoneridge Brazil
Adjusted Operating Income
|
$
0.0
|
$
0.3
|
$
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 6 – Adjusted
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Sales
|
|
|
|
|
|
(USD in
millions)
|
Q4
2021
|
Q1
2022
|
|
|
|
Sales
|
$
203.7
|
$
221.1
|
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Sale of
Soot Sensor Product Inventory
|
(1.3)
|
-
|
|
|
|
Less: Pre-Tax Sales
from Material Spot Buy Purchase Recovery
|
(17.6)
|
(24.4)
|
|
|
|
Adjusted
Sales
|
$
184.7
|
$
196.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 7 – Control
Devices Adjusted Sales
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Control Devices Adjusted Sales
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Control Devices
Sales
|
$
101.6
|
$
82.9
|
$
85.0
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Sale of
Soot Sensor Product Inventory
|
(1.0)
|
(1.3)
|
-
|
|
|
Control Devices
Adjusted Sales
|
$
100.6
|
$
81.6
|
$
85.0
|
|
|
|
|
|
|
|
|
Reconciliation of
Control Devices Adjusted Sales Excluding Disposed Soot Sensor
Business
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Control Devices
Adjusted Sales
|
$
100.6
|
$
81.6
|
$
85.0
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Sales
from Disposed Soot Sensor Business
|
(3.0)
|
(1.8)
|
-
|
|
|
Control Devices
Adjusted Sales Excluding Disposed Soot Sensor
Business
|
$
97.6
|
$
79.9
|
$
85.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 8 – Control
Devices Adjusted Operating Income Excluding Disposed Soot Sensor
Business
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Control Devices Adjusted Operating Income Excluding Disposed Soot
Sensor Business
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Control Devices
Adjusted Operating Income
|
$
11.3
|
$
4.5
|
$
6.8
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Operating
Income from Disposed Soot Sensor Business
|
(0.4)
|
(0.5)
|
-
|
|
|
Control Devices
Adjusted Operating Income Excluding Disposed Soot Sensor
Business
|
$
10.9
|
$
4.0
|
$
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 9 –
Electronics Adjusted Sales
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Electronics Adjusted Sales
|
|
|
|
|
|
(USD in
millions)
|
Q1
2021
|
Q4
2021
|
Q1
2022
|
|
|
Electronics
Sales
|
$
88.7
|
$
114.1
|
$
132.7
|
|
|
|
|
|
|
|
|
Less: Pre-Tax Sales
from Spot Purchase Recovery
|
-
|
(17.6)
|
(24.4)
|
|
|
Electronics Adjusted
Sales
|
$
88.7
|
$
96.5
|
$
108.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 10 –
Adjusted Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Tax Rate
|
|
|
|
|
(USD in
millions)
|
Q1
2022
|
|
|
|
|
Income (Loss) Before
Tax
|
$
(6.2)
|
|
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Write-off
of Deferred Financing Fees
|
0.4
|
|
|
|
|
Adjusted Income
(Loss) Before Tax
|
$
(5.8)
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit)
|
$
1.5
|
|
|
|
|
|
|
|
|
|
|
Add: Tax Impact from
Pre-Tax Adjustments
|
$
0.1
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Tax
Expense (Benefit)
|
$
1.6
|
|
|
|
|
|
|
|
|
|
|
Adjusted Tax
Rate
|
-27.6%
|
|
|
|
|
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SOURCE Stoneridge, Inc.