Slide 1: First-Quarter 2018 Results
First - Quarter 2018 Results May 3 , 2018 Exhibit 99.2
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Statements in this presentation 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 exp ect at
Slide 3: Overview of Achievements
3 Overview of Achievements x Continued strong performance at each segment x Control Devices growth in certain actuation and emissions sensing products. Outlook for revenue improved and margin expansion remains as expected. x Electronics growth driven by recent product launches, continued strength at
Slide 4: Financial Summary
4 Financial Summary We continue to deliver sustainable, profitable growth TTM EPS not comparable due to differences in tax rates over the periods
Slide 5: Keys to 2018 Success
5 Control Devices Deliver growth in sensing and actuation segments Drive operational efficiency Manage ramp - down of shift - by - wire programs (~Q4) Electronics Execute product launches Capture MirrorEye opportunities Refine engineering footprint and drive global capability PST Drive track & trace
Slide 6: MirrorEye Update
6 Mirror Eye TM Update Awarded first OEM Mirror Eye TM program Expect retrofit opportunities beginning late 2018 Pending award for our first OEM Mirror Eye TM program with a leading, global OEM $13 million peak annual revenue Start - of - Production – 2020 FMCSA exemption in - process to allow for r
Slide 7: Enabling Intelligent Vehicles
7 Enabling Intelligent Vehicles L eading provider of commercial vehicle connectivity and intelligence solutions OEM and aftermarket connectivity and intelligence solutions for global commercial vehicle applications Hardware solutions that provide in - vehicle connectivity S oftware solutions that en
Slide 8: Winning with Our Customers
8 Winning with Our Customers Deepening relationships with customers P ositioning the Company for long - term success Over the past year we have been recognized for our excellence as both a passenger car and commercial vehicle supplier by some of the largest, global OEMs Received the 2016 Safe Pillar
Slide 9: Q1 2018 Overview
9 Continued strong performance by each segment Awarded first OEM Mirror Eye TM program with leading global OEM ($13 million peak annual revenue). Retrofit opportunities could expand with regulatory changes. Award pending for significant global connectivity program ($24 million peak annual revenue) F
Slide 10: Financial Update
Financial Update Stoneridge
Slide 11: 1st Quarter 2018 Summary
11 1 st Quarter 2018 Summary 1 st Quarter 2018 Financial Results Updated 2018 Full - Year Guidance Sales of $225.9 million, an increase of 11% over Q1 2017 Control Devices sales of $117.5 million, a decrease of 2% over Q1 2017 Electronics sales of $100.5 million, an increase of 34% over Q1 2017 PST
Slide 12: Control Devices Financial Performance
12 Control Devices Financial Performance Improved revenue expectations for remainder of 2018 C ontinued full - year margin expansion Control Devices Overview As expected, revenue was relatively flat quarter - over - quarter. Revenue expectations for remainder of the year have improved primarily due
Slide 13: Electronics Financial Performance
13 Electronics Financial Performance Top - line growth exceeding expectations Continued full - year margin expansion Segment level financial information includes intercompany sales *Due to centralizing certain procurement and operations functions we have allocated certain corporate costs to each seg
Slide 14: PST Financial Performance
14 PST Financial Performance Expectations for continued growth and margin expansion in 2018 Segment level financial information includes intercompany sales *Due to centralizing certain procurement and operations functions we have allocated certain corporate costs to each segment that w ere not previ
Slide 15: FY 2018 Full-Year Updated Guidance
15 2017 Actual Results 2018 Guidance Previously Provided 2018 Guidance Updated Midpoint Improvement vs. Previously Provided Sales $824.4 Million $840 - $860 Million $870 - $890 Million $30.0 million Adjusted Gross Margin 30.3% 31.0% - 32.0% 31.0% - 32.0% Adjusted Operating Margin 8.1% 9.0% - 10.0% 9
Slide 16: 1st Quarter 2018 Financial Summary
16 All segments contributing to strong financial performance Control Devices – Q1 sales consistent with expectations. Improved revenue outlook for the remainder of the year. Q1 margin impacted by increased launch costs. Expect margin expansion for the remainder of 2018. Electronics – Exceeded top -
Slide 17: Thank You
Thank You Stoneridge
Slide 18: Appendix
Appendix Soorivee
Slide 19: 2018 Q1 Adjustments
19 2018 Q1 Adjustments The expense resulting from the step - up in the fair value of the earn - out due to Orlaco outperformance was $0.4 million resulting in an EPS adjustment of $ 0.01 The expense related to the step - up in the fair value of the earn - out related to the acquisition of the remain
Slide 20: Income Statement (Unaudited)
20 Income Statement (Unaudited) Three months ended March 31, (in thousands, except per share data) 2018 2017 Net sales $ 225,930 $ 204,311 Costs and expenses: Cost of goods sold 157,961 143,160 Selling, general and administrative 37,261 34,266 Design and development 13,861 11,721 Operating income 16
Slide 21: Segment Financial Information
21 Segment Financial Information Three months ended March 31, 2018 2017 Net Sales: Control Devices $ 115,357 $ 118,873 Inter-segment sales 2,181 783 Control Devices net sales 117,538 119,656 Electronics 90,028 63,805 Inter-segment sales 10,472 11,356 Electronics net sales 100,500 75,161 PST 20,545 2
Slide 22: Balance Sheet
22 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, (in thousands) 2018 2017 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 57,404 $ 66,003 156,513 142,438 Inventories, net 78,628 73,471 Prepaid expenses and other current assets 26,148 21,457 Total current a
Slide 23: Statement of Cash Flows (Unaudited)
23 Statement of Cash Flows (Unaudited) Three months ended March 31, (in thousands) 2018 2017 OPERATING ACTIVITIES: Net income $ 13,380 $ 9,173 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 6,061 5,063 Amortization, including accretion of deferred fina
Slide 24: Statement of Cash Flows (Cont.)
24 Statement of Cash Flows (Cont.) (Unaudited) Three months ended March 31, (in thousands) 2018 2017 FINANCING ACTIVITIES: Revolving credit facility borrowings 5,000 81,000 Revolving credit facility payments (10,000) (7,000) Proceeds from issuance of debt 155 886 Repayments of debt (1,378) (4,135) O
Slide 25: Reconciliations to US GAAP
25 Reconciliations to US GAAP
Slide 26: Reconciliations to US GAAP
26 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 me
Slide 27: Reconciliations to US GAAP
27 Reconciliations to US GAAP (USD in millions) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 TTM Q1 2018 Gross Profit 52.8$ 49.7$ 47.8$ 61.2$ 63.4$ 62.6$ 61.0$ 68.0$ 255.0$ Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco 1.0 0.7 0.7 Adjusted Gross Profit 52.8$ 49.7$ 47.8$ 6
Slide 28: Reconciliations to US GAAP
28 Reconciliations to US GAAP (USD in millions) Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 TTM Q1 2018 Control Devices Operating Income 18.3$ 15.3$ 14.7$ 19.1$ 19.9$ 16.2$ 17.3$ 17.9$ 71.4$ Add: Pre-Tax Allocation of Centralized Procurement and Operations Functions 0.5 0.5 Contr
Slide 29: Reconciliations to US GAAP
29 Reconciliations to US GAAP (USD in millions) Q1 2018 Q1 2018 EPS Net Income Attributable to Stoneridge 13.4$ 0.46$ Add: After-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 0.4 0.01 Add: After-Tax Step-Up in Fair Value of Earn-Out (PST) 0.5 0.02 Add: After-Tax Business Realignment Costs 0.2 0.01