Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q1 2023 Earnings Presentation
28 slides from Stoneridge's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Results
Q1 2023 Results May 4, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors that may
Slide 3: Overview of Achievements
Overview of Achievements Q1 performance exceeded previously provided adjusted revenue expectations by $7.2 million and adjusted EPS expectations by $0.05 Reaffirming full-year 2023 guidance – adjusted sales mid-point of $975.0 million and adjusted EPS mid-point of breakeven Reduction in expect
Slide 4: Leadership Announcement
Leadership Announcement ▸ Troy Cooprider was appointed as Vice President, Global Technology effective April 20th to succeed the outgoing CTO ▸ Most recently, Troy was Vice President, Advanced Engineering & Engineering Excellence responsible for developing and executing the next generation of product
Slide 5: Financial Summary
Financial Summary $’s in USD Millions Q1 2022 vs. Q1 2023 Q1 Financial Highlights 250 $232.2 ▸ Adjusted sales growth of 18.1% vs. Q1 2022 primarily due to higher sales in both our commercial vehicle and $196.6 Adjusted Sales 200 North American passenger vehicle end-markets, including the ramp-up of
Slide 6: New Program Launches
New Program Launches Drive Unit Clutch Actuator MirrorEye – North America ▸ Actuator helping to enable the first e-AWD (all-wheel drive) system that ▸ Second MirrorEye OEM program launched in mid-April – first truck works in tandem with a V8 engine to optimize performance with OEM camera mirror syst
Slide 7: Summary and 2023 Outlook
Summary Summary First quarter revenue performance driven primarily by continued strength in our commercial vehicle end- markets First quarter operating margin performance driven by fixed cost leverage on strong revenue performance and effective cost management to offset expected and continued br
Slide 8: Financial Update
Financial Update Ssereiee
Slide 9: 1st Quarter 2023 Financial Summary
1st Quarter 2023 Financial Summary 1st Quarter 2023 Financial Results Adjusted sales of $232.2 million, an increase of 18.1% over Q1 2022 • Control Devices sales of $86.7 million, an increase of 2.0% over Q1 2022 • Electronics adjusted sales of $140.5 million, an increase of 29.8% over Q1 2022 • Sto
Slide 10: Q1 2023 Key Performance Drivers
Q1 2023 Key Performance Drivers Q1 Operating Impact Q1 Non-Operating Impact Contribution on Material Manufacturing Reduced Fixed FX Equity Investment Volume (Ex. FX) Costs, net Performance Costs and Operating ~($0.01) ~($0.01) ~$0.01 Expenses ~$0.03 ~($0.02) ~$0.05 ~Net Impact of ~$0.07 Net Impact o
Slide 11: Control Devices Financial Performance
Control Devices Financial Performance $’s in USD Millions Control Devices Q1 Summary Q1 2022 vs. Q1 2023 Sales slightly increased vs. Q1 2022 $86.7 Higher sales in the North America passenger $85.0 vehicle end-market, including incremental revenue Sales from high-demand powertrain actuation programs
Slide 12: Electronics Financial Performance
Electronics Financial Performance $’s in USD Millions Q1 2022 vs. Q1 2023 Electronics Q1 Summary Adjusted sales increased by 29.8% vs. Q1 2022 Primarily due to continued strong commercial $140.5 vehicle customer demand, including incremental Adjusted $108.3 sales from recently launched programs Sale
Slide 13: Stoneridge Brazil Financial Performance
Stoneridge Brazil Financial Performance $’s $’sininUSD USDMillions Millions Q1 2022 vs. Q1 2023 Stoneridge Brazil Q1 Summary Higher sales vs. Q1 2022 Primarily due to higher OEM sales $14.3 Adjusted operating margin increased by ~500 basis points $12.0 vs. Q1 2022 Sales Primarily due to fixed cost l
Slide 14: Summary: 2023 Q1 and Outlook
Summary 2023 Q1 Summary ▸ Control Devices – Top line stability in Q1 primarily due to improved customer production and content on high-demand vehicles, offset by challenges in early Q1 in China. Operating performance impacted by higher material costs due to unfavorable product mix and inflation, lab
Slide 15: Appendix
Appendix Ssereiee
Slide 16: Income Statement
Income Statement STONERIDGE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, (in thousands, except per share data) 2023 2022 Net sales $ 241,325 $ 221,058 Costs and expenses: Cost of goods sold 198,523 179,615 Selling, general and administrative 29,863 2
Slide 17: Balance Sheet
Balance Sheet STONERIDGE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, (in thousands) 2023 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 35,165 $ 54,798 Accounts receivable, less reserves of $853 and $962, respectively 175,666 158,155 Inventories, net 168,7
Slide 18: Statement of Cash Flows
Statement of Cash Flows STONERIDGE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31, (in thousands) 2023 2022 OPERATING ACTIVITIES: Net loss $ (7,386) $ (7,675) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activi
Slide 19: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) INVESTING ACTIVITIES: Capital expenditures, including intangibles (10,110) (7,368) Proceeds from sale of fixed assets 1,355 132 Net cash used for investing activities (8,755) (7,236) FINANCING ACTIVITIES: Revolving credit facility borrowings 8,000 — Revolving credit f
Slide 20: Segment Financial Information
Segment Financial Information NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data, unless otherwise stated) Three months ended March 31, 2023 2022 Net Sales: Control Devices $ 85,942 $ 84,060 Inter-segment sales 734 930 Control Devices net sales 86,676 84,990 El
Slide 21: Reconciliations to US GAAP
Reconciliations to US GAAP 21
Slide 22: Reconciliations to US GAAP
Reconciliations to US GAAP This document contains information about Stoneridge's financial results which 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 measure
Slide 23: Reconciliation of Q1 2023 Adjusted EPS
Reconciliations to US GAAP Reconciliation of Q1 2023 Adjusted EPS (USD in millions) Q1 2023 Q1 2023 EPS Net Loss $ (7.4) $ (0.27) Add: After-Tax Business Realignment Costs 1.0 0.04 Less: After-Tax Gain on Disposal of Fixed Assets (0.6) (0.02) Add: After-Tax Environmental Remediation Costs 0.1 0.00 A
Slide 24: Reconciliation of Adjusted Gross Profit and Operating Loss
Reconciliations to US GAAP Reconciliation of Adjusted Gross Profit (USD in millions) Q1 2022 Q1 2023 Gross Profit $ 41.4 $ 42.8 Add: Pre-Tax Business Realignment Costs - 0.2 Adjusted Gross Profit $ 41.4 $ 43.0 Reconciliation of Adjusted Operating Loss (USD in millions) Q1 2022 Q1 2023 Operating Loss
Slide 25: Reconciliation of Adjusted EBITDA
Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Income (Loss) Before Tax $ (6.2) $ (6.9) $ 1.7 $ 0.7 $ (8.1) Interest expense, net 1.8 1.2 1.8 2.2 2.7 Depreciation and amortization 8.7 8.5 8.3 8.2 8.3 EBITDA $ 4.3 $ 2.8 $ 11.8 $
Slide 26: Reconciliations to US GAAP
Reconciliations to US GAAP 26
Slide 27: Segment Adjusted Operating Income Reconciliations
Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Operating Income (USD in millions) Q1 2022 Q1 2023 Control Devices Operating Income $ 6.8 $ 2.1 Less: Pre-Tax Gain on Disposal of Fixed Assets - (0.8) Add: Pre-Tax Environmental Remediation Costs - 0.1 Control Devices Adjusted Ope
Slide 28: Reconciliation of Adjusted Sales
Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2022 Q1 2023 Sales $ 221.1 $ 241.3 Less: Sales from Spot Purchase Recoveries (24.4) (9.1) Adjusted Sales $ 196.6 $ 232.2 Reconciliation of Electronics Adjusted Sales (USD in millions) Q1 2022 Q1 2023 Electronics Sales $