Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q3 2014 Earnings Presentation
17 slides from Stoneridge's earnings presentation, Nov 6, 2014
Slide 1: Third Quarter 2014 Earnings Release Presentation
1 Stoneridge, Inc . Third Quarter 2014 Earnings Release Presentation November 6, 2014 Exhibit 99.2
Slide 2: Forward Looking Statements
Statements in this presentation that are not historical facts (including, but not limited to, 2014 net sales guidance) 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 stateme
Slide 3: Forward Looking Statements (cont'd)
Forward Looking Statements (cont’d) Also, see Rounding Differences Disclosure below These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward - looking statements are
Slide 4: Sales by Segment – 3Q14 vs 3Q13
Sales by Segment – 3Q14 vs 3Q13 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Light Truck 62.8 0.5 0.0 63.3 57.9 0.5 0.0 58.4 Med / HD Truck 8.6 52.9 0.0 61.5 8.4 43.3 0.0 51.7 Ag 4.4 0.0 0.0 4.4 6.8 1.1 0.0 7.9 PST / Other 2.6 1.5 37.0 41.1 0.0 0.0 43.6 43.6 TOTAL 78.4 54.9 37.0 170.3 73.1 44.9 43.6 1
Slide 5: Sales, Gross Profit, & Op Income – 3Q14 vs 3Q13
Sales, Gross Profit, & Op Income – 3Q14 vs 3Q13 EPS from Continuing Operations is $0.16 / share excluding the impact of the Goodwill income which is $0.16 / share and Bond Redemption expenses of $0.03 / share. SRI excl PST PST PST PPA SRI SRI SRI 3Q14 3Q13 USD [millions] except per share data Actual
Slide 6: Schedule of Unusual Items
Schedule of Unusual Items Values in millions, except EPS 2Q14 3Q14 4Q14 E YTD E 2Q14 3Q14 4Q14 E YTD E $ $ $ $ EPS EPS EPS EPS Reported EPS (Continuing Operations) (0.79)$ 0.29$ Goodwill PST 29.3 (5.8) - 23.5 1.09$ (0.21)$ -$ 0.87$ Noncontrolling Int PST (6.3) 1.2 - (5.1) (0.23)$ 0.05$ -$ (0.19)$ Go
Slide 7: 3Q14 Sales Revenue by Business Unit
3Q14 Sales Control Devices $78.4 Electronics $54.9 PST $37.0 PST (Brazil ): Est 2012: $185 - $197 million Revenue by Business Unit Consolidated Sales : $170.3 million 2012 Guidance Core Sales (excl PST) $755 – $765 million 46.0% 21.7% 32.3% Automotive Aftermarket Commercial Vehicle
Slide 8: 3Q14 Sales Revenue by Geographic Location
3Q14 Sales North America 50.9% Europe / Other 27.4% South America 21.7% Revenue by Geographic Location
Slide 9: 3Q13 vs 3Q14 EPS Bridge
PST CD & Elec Volume (0.06) 0.20 Mix / Direct Material (0.02) (0.04) SGA / DD (Increase) / Decrease (0.02) (0.15) CD / Elec Overhead 0.00 (0.01) FX (0.01) (0.02) PST Goodwill 0.16 0.00 Tax 0.00 0.06 REFI / Interest (0.01) (0.03) PST Realignment (0.02) 0.00 TOTAL 0.02 0.01 0.29 0.03 (0.02) (0.04) 0.0
Slide 10: Sales by Segment – 3Q14 vs 2Q14
Sales by Segment – 3Q14 vs 2Q14 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Light Truck 62.8 0.5 0.0 63.3 59.3 0.9 0.0 60.2 Med / HD Truck 8.6 52.9 0.0 61.5 11.3 49.8 0.0 61.1 Ag 4.4 0.0 0.0 4.4 2.8 0.0 0.0 2.8 PST / Other 2.6 1.5 37.0 41.1 3.0 2.1 32.9 38.0 TOTAL 78.4 54.9 37.0 170.3 76.4 52.8 32.9
Slide 11: 2Q14 vs 3Q14 EPS Bridge
PST CD & Elec Volume 0.04 (0.01) Bond Redemption 0.00 (0.03) Restructuring / SGA (0.01) 0.05 CD / Elec Overhead 0.00 0.01 FX (0.03) 0.00 PST Goodwill 0.99 0.00 Tax / Other 0.00 0.07 TOTAL 0.99 0.09 0.29 1.08 0.07 0.99 (0.03) 0.01 0.04 (0.03) 0.03 (0.79) 3Q14 Actual EPS [Cont. Ops] TOTAL Tax / Other
Slide 12: PST Purchase Price Accounting Expense
PST Purchase Price Accounting Expense [Non Cash] (millions) 1Q 2Q 3Q 4Q Full Year 2013 1Q14 2Q14 3Q14 COGS / Depreciation – Fixed Asset Write Up $0.3 $0.3 $0.3 $0.3 $1.2 $0.3 $0.3 $0.3 SGA / Amortized Intangibles $1.6 $1.5 $1.0 $1.0 $5.1 $1.2 $1.2 $1.0 TOTAL $1.9 $1.8 $1.3 $1.3 $6.3 $1.5 $1.5 $1.3 1
Slide 13: Cash Flow
Cash Flow ** Reflects Redemption of $17.5 million in 9.5% Senior Notes ** Free Cash Flow = Cash Flow from Operations – Capital Expenditures USD [millions] 2012 2013 1Q14 2Q14 3Q14 Actual Actual Actual Actual Actual Beginning Cash 78.7 44.6 62.8 48.4 45.8 Consolidated Net Income 3.7 16.5 0.5 (29.1) 1
Slide 14: Debt / Net Debt
Debt / Net Debt (millions USD) 2011 2012 2013 1Q14 2Q14 3Q14 Total Debt $267.1 $201.4 $197.2 $205.6 $205.1 $183.2 Net Debt $188.4 $156.8 $134.4 $157.2 $159.3 $89.6 Total Debt / LTM Adj.EBITDA 3.5 x 1 2.9 x 2.7 x 2.9 x 3.3 x 3.1 x ABL Balance $38.0 $0.0 $0.0 $0.0 $0.0 $0.0 Brazil Debt $54.1 $24.4 $22
Slide 15: PST Performance and Outlook: Market Changes & Cost Initiative Responses
Summary Cost Initiatives being Implemented Cost 2014 Benefits * 2015 Benefits * R$ USD$ R$ USD$ R$ USD$ 2014 Actions April – Reduction of 164 Hourly Employees and other SG&A reduction 0.9 0.4 10.8 4.6 12.3 5.0 July – Reduction 140 Salary / Staff Position 2.1 0.9 3.3 1.4 2.9 1.2 Gross Costs / Benefit
Slide 16: 2014 Guidance
2014 Guidance * Includes PST $3.3 million of Non - Cash expense related to the purchase of PST Sales: $680 - $720 million Gross Margin: 29.0% - 31.0% Op Margin: 5.5% - 7.0% * Adjusted EPS from continuing operations: $0.55 - $0.75 • Excludes results from discontinued Wiring Operations, one time costs
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