Stoneridge Reports Second Quarter 2024 Results
Stoneridge (NYSE: SRI) reported Q2 2024 financial results with sales of $237.1 million and EPS of $0.10. Adjusted EPS was $0.17. The company achieved significant margin expansion, with gross profit of $53.7 million (22.7% of sales), operating income of $3.4 million, and adjusted EBITDA of $16.1 million (6.8% of sales). Stoneridge updated its full-year 2024 guidance, reducing revenue expectations but increasing gross margin projections. The company now forecasts revenue of $940-$970 million, gross margin of 22.75-23.0%, adjusted operating margin of ~2.75%, and adjusted EPS of $0.18-$0.28. Stoneridge highlighted the launch of its MirrorEye OEM systems with Volvo and Peterbilt, expecting volumes to accelerate in the second half of 2024.
Stoneridge (NYSE: SRI) ha riportato i risultati finanziari del Q2 2024 con vendite di 237,1 milioni di dollari e un utile per azione (EPS) di 0,10 dollari. L'EPS rettificato è stato di 0,17 dollari. L'azienda ha registrato un notevole ampliamento dei margini, con un profitto lordo di 53,7 milioni di dollari (22,7% delle vendite), un reddito operativo di 3,4 milioni di dollari e un EBITDA rettificato di 16,1 milioni di dollari (6,8% delle vendite). Stoneridge ha aggiornato le proiezioni per l'intero anno 2024, riducendo le aspettative di fatturato ma aumentando le previsioni sui margini lordi. L'azienda prevede ora un fatturato compreso tra 940 e 970 milioni di dollari, un margine lordo del 22,75-23,0%, un margine operativo rettificato di circa 2,75% e un EPS rettificato di 0,18-0,28 dollari. Stoneridge ha evidenziato il lancio dei suoi sistemi MirrorEye OEM con Volvo e Peterbilt, prevedendo un'accelerazione dei volumi nella seconda metà del 2024.
Stoneridge (NYSE: SRI) informó sobre los resultados financieros del Q2 2024 con ventas de 237,1 millones de dólares y un beneficio por acción (EPS) de 0,10 dólares. El EPS ajustado fue de 0,17 dólares. La compañía logró una expansión significativa en los márgenes, con una ganancia bruta de 53,7 millones de dólares (22,7% de las ventas), un ingreso operativo de 3,4 millones de dólares y un EBITDA ajustado de 16,1 millones de dólares (6,8% de las ventas). Stoneridge actualizó su pronóstico de todo el año 2024, reduciendo las expectativas de ingresos pero aumentando las proyecciones de margen bruto. Ahora la compañía pronostica ingresos de entre 940 y 970 millones de dólares, un margen bruto del 22,75-23,0%, un margen operativo ajustado de aproximadamente el 2,75% y un EPS ajustado de 0,18 a 0,28 dólares. Stoneridge destacó el lanzamiento de sus sistemas MirrorEye OEM con Volvo y Peterbilt, esperando que los volúmenes aumenten en la segunda mitad de 2024.
Stoneridge (NYSE: SRI)은 2024년 2분기 재무 실적을 발표했으며, 매출은 2억 3,710만 달러, 주당 순이익(EPS)은 0.10달러입니다. 조정된 EPS는 0.17달러였습니다. 회사는 매출의 22.7%인 5,370만 달러의 총 이익, 340만 달러의 영업 이익, 680만 달러(매출의 6.8%)의 조정된 EBITDA를 기록하며 상당한 마진 확대를 달성했습니다. Stoneridge는 2024년 전체 연도 가이던스를 업데이트하여 매출 예상치를 하향 조정했으나 총 마진 예상치를 상향 조정했습니다. 회사는 이제 매출을 9억 4천만~9억 7천만 달러, 총 마진을 22.75-23.0%, 조정된 영업 마진을 약 2.75%, 조정된 EPS를 0.18-0.28달러로 예측합니다. Stoneridge는 Volvo 및 Peterbilt와 함께 MirrorEye OEM 시스템을 출시했으며, 2024년 하반기에 물량이 증가할 것으로 기대하고 있습니다.
Stoneridge (NYSE: SRI) a annoncé ses résultats financiers du Q2 2024, avec des ventes de 237,1 millions de dollars et un bénéfice par action (EPS) de 0,10 dollar. L'EPS ajusté était de 0,17 dollar. L'entreprise a réalisé une expansion significative de la marge, avec un bénéfice brut de 53,7 millions de dollars (22,7% des ventes), un revenu d'exploitation de 3,4 millions de dollars et un EBITDA ajusté de 16,1 millions de dollars (6,8% des ventes). Stoneridge a mis à jour ses prévisions pour l'année 2024, réduisant les attentes de revenus tout en augmentant les projections de marge brute. L'entreprise prévoit maintenant un chiffre d'affaires de 940 à 970 millions de dollars, une marge brute de 22,75-23,0%, une marge d'exploitation ajustée d'environ 2,75% et un EPS ajusté de 0,18 à 0,28 dollar. Stoneridge a mis en avant le lancement de ses systèmes MirrorEye OEM avec Volvo et Peterbilt, s'attendant à une accélération des volumes au cours de la seconde moitié de 2024.
Stoneridge (NYSE: SRI) berichtete über die Finanzergebnisse für Q2 2024 mit einem Umsatz von 237,1 Millionen US-Dollar und einem Ergebnis pro Aktie (EPS) von 0,10 US-Dollar. Das angepasste EPS betrug 0,17 US-Dollar. Das Unternehmen erzielte eine signifikante Margenausweitung, mit einem Bruttogewinn von 53,7 Millionen US-Dollar (22,7% des Umsatzes), einem operativen Einkommen von 3,4 Millionen US-Dollar und einem angepassten EBITDA von 16,1 Millionen US-Dollar (6,8% des Umsatzes). Stoneridge aktualisierte seine Prognose für das Gesamtjahr 2024, senkte die Umsatzprognosen, aber erhöhte die Bruttomargenprojektionen. Das Unternehmen geht nun von einem Umsatz von 940 bis 970 Millionen US-Dollar, einer Bruttomarge von 22,75-23,0%, einer angepassten operativen Marge von etwa 2,75% und einem angepassten EPS von 0,18-0,28 US-Dollar aus. Stoneridge hob den Start seiner MirrorEye OEM-Systeme mit Volvo und Peterbilt hervor und erwartet, dass die Volumina in der zweiten Hälfte von 2024 zunehmen werden.
- Gross profit margin increased by 250 basis points to 22.7% compared to Q1 2024
- Adjusted operating margin improved by 210 basis points to 2.3% compared to Q1 2024
- Adjusted EBITDA margin increased by 410 basis points to 6.8% compared to Q1 2024
- Launched MirrorEye OEM systems with Volvo and Peterbilt
- Increased full-year 2024 gross margin guidance by 50 basis points
- Reduced full-year 2024 revenue guidance midpoint by $45 million
- Lowered adjusted operating margin and EBITDA margin expectations for 2024
- Decreased adjusted EPS guidance for 2024 to $0.18 - $0.28
Insights
Stoneridge's Q2 2024 results demonstrate significant operational improvements, despite challenging market conditions. The company reported
Key financial highlights include:
- Adjusted EBITDA of
$16.1 million (6.8% of sales), a remarkable410 basis point improvement from Q1 2024 - Earnings per share of
$0.10 , with adjusted EPS at$0.17 - A favorable impact of approximately
$2.3 million from non-operating foreign currency
However, the company has revised its full-year 2024 guidance, reducing the revenue midpoint by
Despite the revenue reduction, Stoneridge has increased its gross margin midpoint guidance by
The company's focus on reducing material costs and controlling operating expenses has yielded positive results, but challenges remain in navigating market volatility and ramping up new program launches. Stoneridge's robust backlog and strategic focus on advanced technologies position it well for long-term growth, but short-term headwinds may impact investor sentiment.
Stoneridge's Q2 2024 results reflect the complex dynamics of the automotive and commercial vehicle markets. The company's Electronics segment, which accounts for the largest share of revenue, saw a
However, it's important to note the significant margin improvements across segments:
- Electronics: Adjusted operating margin improved by
230 basis points year-over-year, reaching7.6% - Control Devices: Despite a
13.1% sales decrease, operating margin only declined by130 basis points to4.6%
The launch of MirrorEye OEM systems with Volvo in Europe and Peterbilt in North America marks a significant milestone for Stoneridge. These camera-monitor systems, replacing traditional mirrors, represent a shift towards advanced driver assistance systems (ADAS) in commercial vehicles. The reported order for 1,500 Volvo vehicles equipped with MirrorEye underscores the potential for this technology.
Stoneridge's partnership with Volvo Bus to provide AI-based fuel advice systems aligns with the industry trend towards connected and intelligent vehicle solutions. This move into data services, software and AI applications could open new revenue streams and differentiate Stoneridge in a competitive market.
While the company faces challenges from market volatility and program ramp-ups, its focus on technology innovation and operational efficiency positions it well for the ongoing transformation in the automotive and commercial vehicle industries. The key for Stoneridge will be successfully executing its program launches and capitalizing on the growing demand for advanced vehicle technologies.
Stoneridge's Q2 2024 results highlight significant improvements in supply chain management and operational efficiency. The company's focus on material cost reduction and operational excellence has yielded impressive results, driving a
Key supply chain insights include:
- Continued material cost reductions across segments, contributing to margin improvements
- Reduced quality-related costs, indicating enhanced production processes and supplier management
- Inventory reduction of
$9.0 million in the first half of 2024, with expectations for further reductions throughout the year - Improved operational execution in the Control Devices segment, contributing to margin expansion
The company's efforts to optimize its supply chain are particularly noteworthy given the challenging global environment. By focusing on inventory reduction and material cost improvements, Stoneridge is not only enhancing its financial performance but also improving its resilience to market volatility.
However, Stoneridge faces ongoing challenges:
- Potential volatility in non-OEM and customer demand-based products, which could impact inventory management
- The need to balance inventory reduction with ensuring sufficient stock for new program launches and potential demand surges
- Managing the impact of foreign exchange rates on its global supply chain
The company's ability to continue improving its supply chain efficiency while successfully ramping up new programs like MirrorEye will be important for achieving its updated 2024 guidance. Stoneridge's focus on both operational performance and working capital improvement, particularly in inventory management, demonstrates a comprehensive approach to supply chain optimization that could serve as a model for other automotive suppliers navigating similar challenges.
Q2 Operating Performance Significantly Outperforms Previously Provided Expectations Driven by Strong Margin Expansion
2024 Second Quarter Results
- Sales of
$237.1 million - Gross profit of
$53.7 million 22.7% of sales) - Operating income of
$3.4 million - Adjusted operating income of
$5.4 million 2.3% of sales) - Adjusted EBITDA of
$16.1 million 6.8% of sales) - Earnings per share ("EPS") of
$0.10 - Adjusted EPS of
$0.17
2024 Full-Year Guidance Update
- Reducing full-year 2024 revenue midpoint guidance by
$45 million ~ impact), updated OEM production volumes ($12 million ~ impact) and potential volatility in non-OEM and customer demand-based products ($18 million ~ impact)$15 million - Revenue guidance of
$940 million $970 million $955 million
- Revenue guidance of
- Increasing gross margin midpoint guidance by 50 basis points to reflect continued material cost improvement and operational excellence
- Gross margin guidance of
22.75% -23.0%
- Gross margin guidance of
- Reducing adjusted operating margin and EBITDA margin expectations to reflect lower contribution from reduced revenue expectations, offset by improved gross margin performance and continued operating cost control
- Adjusted operating margin guidance of ~
2.75% - Adjusted EBITDA guidance of
$58 million $64 million 6.2% -6.6% ) - Adjusted EPS guidance of
$0.18 $0.28 $0.23
- Adjusted operating margin guidance of ~
For the second quarter of 2024, Stoneridge reported gross profit of
The exhibits attached hereto provide reconciliation detail on normalizing adjustments of non-GAAP financial measures used in this press release.
Jim Zizelman, president and chief executive officer, commented, "Our second quarter performance highlights our continued focus on improving the fundamentals of our business leading to significantly improved margins and significant outperformance relative to our prior expectations. This was primarily driven by continued material cost reductions, improved operational excellence, including reduced quality-related costs, and operating cost control as we continue to execute on the key initiatives we set at the beginning of the year. Our efforts to reduce material costs and control operating costs contributed to a 250 basis point improvement in gross margin and a 210 basis point improvement in adjusted operating margin over the first quarter. Including the benefit of non-operating FX income, adjusted EBITDA margin improved by 410 basis points over the first quarter to
Zizelman continued, "While we continue to drive operational performance improvement, we remain focused on flawless execution of the program launches that will drive strong growth going-forward. We are excited to announce that during the second quarter we began shipping our first MirrorEye OEM systems to Volvo for the launch of their FH Aero model in
Zizelman concluded, "Our robust backlog continues to provide a strong foundation for our strategy focused on technologies and capabilities that will drive continued long-term growth. Last month, Volvo Bus announced they have selected Stoneridge to provide connected services and digital solutions using our artificial intelligence-based fuel advice system in a pilot program this year. This partnership is aligned with our ongoing focus on data services, software and AI to drive advanced system capabilities and expansion of our existing technology platforms and products to drive long-term profitable growth."
Second Quarter in Review
Electronics sales of
Control Devices sales of
Stoneridge Brazil sales of
Relative to the first quarter of 2024, Electronics adjusted sales of
Relative to the first quarter of 2024, Control Devices sales increased by
Relative to the first quarter of 2024, Stoneridge Brazil sales decreased by
Cash and Debt Balances
As of June 30, 2024, Stoneridge had compliance net debt of
The Company continues to focus on both operating performance and working capital improvement to drive cash performance, particularly related to inventory reduction. During the first half of the year, inventory balances declined by
2024 Outlook
The Company is updating its previously provided full-year 2024 guidance ranges including sales guidance of
Matt Horvath, chief financial officer, commented, "We are updating our full-year 2024 revenue guidance to reflect updated foreign currency rates, updated OEM production volumes and current expectations for non-OEM and customer demand-based products. This results in a midpoint of
Horvath, concluded, "By continuing to focus on improving the fundamentals of our business, we drove significant margin expansion across our business in the second quarter. Additionally, we continue to focus on inventory reduction to improve our cash position and reduce our leverage profile. We expect to continue those efforts in the second half of the year to help drive financial performance. Stoneridge remains well positioned to outpace our underlying end market growth and drive significant earnings expansion going forward."
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2024 second quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, August 1, 2024, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in
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;
- fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
- global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the
U.S. and other countries; - our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
- 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;
- foreign currency fluctuations and our ability to manage those impacts;
- customer acceptance of new products;
- our ability to successfully launch/produce products for awarded business;
- adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, 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;
- 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;
- 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") in our Form 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
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 operating income and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, adjusted net debt, adjusted debt and adjusted cash 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 operating income and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, adjusted net debt, adjusted debt and adjusted cash should not be considered in isolation or as a substitute for sales, operating income, income (loss) before tax, income tax expense (benefit), net income, EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.
CONSOLIDATED BALANCE SHEETS | ||||
(in thousands) | June 30, | December 31, | ||
(Unaudited) | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 42,112 | $ 40,841 | ||
Accounts receivable, less reserves of | 168,215 | 166,545 | ||
Inventories, net | 178,749 | 187,758 | ||
Prepaid expenses and other current assets | 32,882 | 34,246 | ||
Total current assets | 421,958 | 429,390 | ||
Long-term assets: | ||||
Property, plant and equipment, net | 103,061 | 110,126 | ||
Intangible assets, net | 43,586 | 47,314 | ||
Goodwill | 34,244 | 35,295 | ||
Operating lease right-of-use asset | 8,722 | 10,795 | ||
Investments and other long-term assets, net | 55,080 | 46,980 | ||
Total long-term assets | 244,693 | 250,510 | ||
Total assets | $ 666,651 | $ 679,900 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Current portion of debt | $ 2,064 | $ 2,113 | ||
Accounts payable | 108,085 | 111,925 | ||
Accrued expenses and other current liabilities | 76,098 | 64,203 | ||
Total current liabilities | 186,247 | 178,241 | ||
Long-term liabilities: | ||||
Revolving credit facility | 187,417 | 189,346 | ||
Deferred income taxes | 6,276 | 7,224 | ||
Operating lease long-term liability | 5,814 | 7,684 | ||
Other long-term liabilities | 10,446 | 9,688 | ||
Total long-term liabilities | 209,953 | 213,942 | ||
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 27,679 and 27,549 with no stated value | — | — | ||
Additional paid-in capital | 224,599 | 227,340 | ||
Common Shares held in treasury, 1,287 and 1,417 shares at June 30, 2024 and December 31, 2023, respectively, at cost | (39,066) | (43,344) | ||
Retained earnings | 193,169 | 196,509 | ||
Accumulated other comprehensive loss | (108,251) | (92,788) | ||
Total shareholders' equity | 270,451 | 287,717 | ||
Total liabilities and shareholders' equity | $ 666,651 | $ 679,900 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three months ended | Six months ended | |||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 237,059 | $ 266,814 | $ 476,216 | $ 508,139 | ||||
Costs and expenses: | ||||||||
Cost of goods sold | 183,319 | 206,326 | 374,119 | 404,849 | ||||
Selling, general and administrative | 31,876 | 33,491 | 62,299 | 63,354 | ||||
Design and development | 18,457 | 22,666 | 36,060 | 39,634 | ||||
Operating income | 3,407 | 4,331 | 3,738 | 302 | ||||
Interest expense, net | 3,801 | 3,120 | 7,435 | 5,866 | ||||
Equity in loss of investee | 52 | 329 | 329 | 500 | ||||
Other (income) expense, net | (2,296) | 2,387 | (260) | 3,535 | ||||
Income (loss) before income taxes | 1,850 | (1,505) | (3,766) | (9,599) | ||||
(Benefit) provision for income taxes | (936) | 1,487 | (426) | 779 | ||||
Net income (loss) | $ 2,786 | $ (2,992) | $ (3,340) | $ (10,378) | ||||
Income (loss) per share: | ||||||||
Basic | $ 0.10 | $ (0.11) | $ (0.12) | $ (0.38) | ||||
Diluted | $ 0.10 | $ (0.11) | $ (0.12) | $ (0.38) | ||||
Weighted-average shares outstanding: | ||||||||
Basic | 27,611 | 27,452 | 27,570 | 27,400 | ||||
Diluted | 27,853 | 27,452 | 27,570 | 27,400 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Six months ended June 30, (in thousands) | 2024 | 2023 | ||
OPERATING ACTIVITIES: | ||||
Net loss | $ (3,340) | $ (10,378) | ||
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||||
Depreciation | 13,054 | 13,161 | ||
Amortization, including accretion and write-off of deferred financing costs | 4,440 | 4,004 | ||
Deferred income taxes | (7,004) | (3,782) | ||
Loss of equity method investee | 329 | 500 | ||
Loss (gain) on sale of fixed assets | 258 | (854) | ||
Share-based compensation expense | 2,207 | 1,271 | ||
Excess tax deficiency related to share-based compensation expense | 238 | 66 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (6,094) | (28,100) | ||
Inventories, net | 3,438 | (23,142) | ||
Prepaid expenses and other assets | (1,038) | 3,313 | ||
Accounts payable | (849) | 27,069 | ||
Accrued expenses and other liabilities | 12,123 | 12,184 | ||
Net cash provided by (used for) operating activities | 17,762 | (4,688) | ||
INVESTING ACTIVITIES: | ||||
Capital expenditures, including intangibles | (12,920) | (18,025) | ||
Proceeds from sale of fixed assets | 222 | 1,729 | ||
Investment in venture capital fund, net | (260) | — | ||
Net cash used for investing activities | (12,958) | (16,296) | ||
FINANCING ACTIVITIES: | ||||
Revolving credit facility borrowings | 57,000 | 42,000 | ||
Revolving credit facility payments | (58,000) | (38,068) | ||
Proceeds from issuance of debt | 17,677 | 16,402 | ||
Repayments of debt | (17,690) | (18,086) | ||
Repurchase of Common Shares to satisfy employee tax withholding | (666) | (1,325) | ||
Net cash (used for) provided by financing activities | (1,679) | 923 | ||
Effect of exchange rate changes on cash and cash equivalents | (1,854) | (32) | ||
Net change in cash and cash equivalents | 1,271 | (20,093) | ||
Cash and cash equivalents at beginning of period | 40,841 | 54,798 | ||
Cash and cash equivalents at end of period | $ 42,112 | $ 34,705 | ||
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest, net | $ 8,003 | $ 5,622 | ||
Cash paid for income taxes, net | $ 4,372 | $ 5,927 | ||
Regulation G Non-GAAP Financial Measure Reconciliations | |||
Exhibit 1 - Reconciliation of Adjusted EPS | |||
Reconciliation of Q2 2024 Adjusted EPS | |||
(USD in millions, except EPS) | Q2 2024 | Q2 2024 EPS | |
Net Income | $ 2.8 | $ 0.10 | |
Add: After-Tax Business Realignment Costs | 1.9 | 0.07 | |
Adjusted Net Income | $ 4.7 | $ 0.17 | |
Exhibit 2 – Reconciliation of Adjusted EBITDA | |||||||||||
(USD in millions) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||
Income (Loss) Before Tax | $ (8.1) | $ (1.5) | $ 4.4 | $ 3.2 | $ (5.6) | $ 1.9 | |||||
Interest expense, net | 2.7 | 3.1 | 3.3 | 3.8 | 3.6 | 3.8 | |||||
Depreciation and amortization | 8.3 | 8.4 | 8.5 | 8.4 | 8.6 | 8.5 | |||||
EBITDA | $ 3.0 | $ 10.0 | $ 16.2 | $ 15.5 | $ 6.6 | $ 14.2 | |||||
Add: Pre-Tax Business Realignment Costs | 1.3 | 1.9 | 1.2 | 0.1 | — | 1.9 | |||||
Less: Pre-Tax Gain on Disposal of Fixed Assets | (0.8) | — | — | — | — | — | |||||
Add: Pre-Tax Environmental Remediation Costs | 0.1 | — | — | — | — | — | |||||
Add: Pre-Tax Brazilian Indirect Tax Credits, Net | — | — | (0.5) | — | — | — | |||||
Adjusted EBITDA | $ 3.6 | $ 11.9 | $ 17.0 | $ 15.6 | $ 6.6 | $ 16.1 | |||||
Exhibit 3 - Reconciliation of Adjusted Operating Income | |||
(USD in millions) | Q1 2024 | Q2 2024 | |
Operating Income | $ 0.3 | $ 3.4 | |
Add: Pre-Tax Business Realignment Costs | — | 1.9 | |
Adjusted Operating Income | $ 0.3 | $ 5.4 | |
Exhibit 4 – Segment Adjusted Operating Income
| |||||
Reconciliation of Control Devices Adjusted Operating Income | |||||
(USD in millions) | Q2 2023 | Q1 2024 | Q2 2024 | ||
Control Devices Operating Income | $ 5.1 | $ 2.2 | $ 3.7 | ||
Add: Pre-Tax Business Realignment Costs | 0.4 | — | — | ||
Control Devices Adjusted Operating Income | $ 5.5 | $ 2.2 | $ 3.7 | ||
Reconciliation of Electronics Adjusted Operating Income | |||||
(USD in millions) | Q2 2023 | Q1 2024 | Q2 2024 | ||
Electronics Operating Income | $ 7.4 | $ 7.1 | $ 9.8 | ||
Add: Pre-Tax Business Realignment Costs | 1.3 | — | 1.9 | ||
Electronics Adjusted Operating Income | $ 8.8 | $ 7.1 | $ 11.7 | ||
Exhibit 5 – Reconciliation of Electronics Adjusted Sales | |||||
(USD in millions) | Q2 2023 | Q1 2024 | Q2 2024 | ||
Electronics Sales | $ 168.3 | $ 156.1 | $ 153.5 | ||
Less: Sales from Spot Purchases Recoveries | (4.4) | — | — | ||
Electronics Adjusted Sales | $ 163.9 | $ 156.1 | $ 153.5 | ||
Exhibit 6 – Reconciliation of Adjusted Tax Rate | |||
Reconciliation of Q2 2024 Adjusted Tax Rate | |||
(USD in millions) | Q2 2024 | Tax Rate | |
Income Before Tax | $ 1.9 | ||
Add: Pre-Tax Business Realignment Costs | 1.9 | ||
Adjusted Income Before Tax | $ 3.8 | ||
Income Tax Benefit | (0.9) | (50.6) % | |
Add: Tax Impact from Pre-Tax Adjustments | - | ||
Adjusted Income Tax Benefit on Adjusted Income Before Tax | $ (0.9) | (24.3) % | |
Exhibit 7 – Reconciliation of Compliance Leverage Ratio | |||||||||||
Reconciliation of Adjusted EBITDA for Compliance Calculation | |||||||||||
(USD in millions) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | |||||
Income (Loss) Before Tax | $ (8.1) | $ (1.5) | $ 4.4 | 3.2 | (5.6) | 1.9 | |||||
Interest Expense, net | 2.7 | 3.1 | 3.3 | 3.8 | 3.6 | 3.8 | |||||
Depreciation and Amortization | 8.3 | 8.4 | 8.5 | 8.4 | 8.6 | 8.5 | |||||
EBITDA | $ 3.0 | $ 10.0 | $ 16.2 | $ 15.5 | $ 6.6 | $ 14.2 | |||||
Compliance adjustments: | |||||||||||
Add: Non-Cash Impairment Charges and Write-offs or Write Downs | — | — | — | — | 0.2 | — | |||||
Add: Adjustments from Foreign Currency Impact | 1.4 | 3.1 | 0.4 | (0.7) | 2.2 | (2.4) | |||||
Add: Extraordinary, Non-recurring or Unusual Items | 0.2 | — | 0.5 | — | — | — | |||||
Add: Cash Restructuring Charges | 1.4 | 0.5 | 0.1 | 0.3 | 1.6 | 0.5 | |||||
Add: Charges for Transactions, Amendments, and Refinances | — | — | — | 0.3 | — | — | |||||
Add: Adjustment to Autotech Fund II Investment | 0.2 | 0.3 | 0.1 | (0.1) | 0.3 | 0.1 | |||||
Adjusted EBITDA (Compliance) | $ 6.1 | $ 13.9 | $ 17.4 | $ 15.3 | $ 10.9 | $ 12.3 | |||||
Adjusted TTM EBITDA (Compliance) | $ 52.7 | $ 57.5 | $ 55.9 | ||||||||
Reconciliation of Adjusted Cash for Compliance Calculation | |||||
(USD in millions) | Q4 2023 | Q1 2024 | Q2 2024 | ||
Total Cash and Cash Equivalents | $ 40.8 | $ 48.4 | $ 42.1 | ||
Less: | (12.8) | (14.8) | (12.5) | ||
Total Adjusted Cash (Compliance) | $ 28.0 | $ 33.6 | $ 29.6 | ||
Reconciliation of Adjusted Debt for Compliance Calculation | |||||
(USD in millions) | Q4 2023 | Q1 2024 | Q2 2024 | ||
Total Debt | $ 191.5 | $ 196.5 | $ 189.5 | ||
Outstanding Letters of Credit | 1.6 | 1.6 | 1.6 | ||
Total Adjusted Debt (Compliance) | $ 193.0 | $ 198.1 | $ 191.1 | ||
Adjusted Net Debt (Compliance) | $ 165.0 | $ 164.5 | $ 161.4 | ||
Compliance Leverage Ratio (Net Debt / TTM EBITDA) | 3.13x | 2.86x | 2.89x | ||
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SOURCE Stoneridge, Inc.
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