Slide 1: Second-Quarter 2019 Results
Second - Quarter 2019 Results August 1, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Statements in this presentation that are not historical facts are forward - looking statements, which involve risks and uncertaint ies that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors th
Slide 3: Overview of Achievements
3 Overview of Achievements x Awarded additional transmission actuation programs (Park - by - Wire and Shift - by - Wire) x Total of $ 48 million Park - by - Wire and $21 million Shift - by - Wire (peak annual revenue) programs start of production 2019 and beyond x Awarded additional OEM driver infor
Slide 4: 2nd Quarter 2019 Quarterly Financial Comparison
4 2 nd Quarter 2019 Quarterly Financial Comparison Remain focused on continuous improvement initiatives and overcoming externalities to drive sustainable, profitable growth Quarterly Comparison* Adjusted Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA $’s in USD Millions *Exclu
Slide 5: 2019 Keys to Success
5 2019 Keys to Success We remain on - track to achieve our 2019 goals as well as our long - term financial targets (approximately $1 billion in revenue and 15.5%+ EBITDA margin in 2021) CONTROL DEVICES PST ELETRÔNICA ELECTRONICS ▸ Drive operational efficiency ▸ Grow core product portfolio ▸ Complete
Slide 6: Transmission Actuation
6 Transmission Actuation Total Park - by - Wire awards of approximately $48 million in peak annual revenue Total new Shift - by - Wire awards of $21 million in peak annual revenue ▸ Awarded Park - by - Wire Extension and Expansion • Awarded extension and expansion of existing Park - by - Wire progra
Slide 7: MirrorEye
7 MirrorEye TM Executing rollout of retrofit programs Anticipate OEM sourcing decisions in the short - term ▸ Retrofit Rollout • Retrofit rollout delayed 1 - 2 quarters due to ongoing process and product refinements as we ramp - up to meet expected demand • No expected impact on market opportunity ▸
Slide 8: PST OEM Expansion
8 PST OEM Expansion Our ability to provide OEM solutions in Brazil will continue to drive growth opportunities for PST ▸ New Awards • Award from global OEM for driver information system program in Brazil • $5.5 million peak annual revenue • Start of production mid - 2020 • Awarded program from globa
Slide 9: Summary
9 Summary ▸ Financial performance in the quarter driven by strong top - line performance and margin inline with our expectations ▸ Transmission actuation strategy driving success with $69 million peak annual revenue of new awards launching 2019 – 2022 in strategically significant regions and with ne
Slide 10: Financial Update
Financial Update Ssereivee
Slide 11: 2nd Quarter 2019 Financial Summary
11 2 nd Quarter 2019 Financial Summary Excluding divested product lines, adjusted sales of $209.0 million, a decrease of $0.4 million over Q2 2018 Excluding divested product lines, Control Devices adjusted sales of $102.9 million, an increase of 2% over Q2 2018 Electronics sales of $101.9 million, a
Slide 12: Control Devices Financial Performance
12 Control Devices Financial Performance Continued growth in core products offsetting expected declines in legacy Shift - by - Wire Improvement in operating margin expected to continue through 2019 Control Devices Overview * Continued ramp - down of legacy Shift - by - Wire programs reduced revenue
Slide 13: Electronics Financial Performance
13 Electronics Financial Performance Continued currency headwinds dampening top - line growth Incremental costs related to electronic component supply shortages driving reduced margin Q2 2018 vs Q2 2019 Trailing Twelve Months Sales Adjusted Operating Income $’s in USD Millions Electronics Overview T
Slide 14: PST Financial Performance
14 PST Financial Performance Macroeconomic headwinds continue to significantly impact financial performance Q2 2018 vs Q2 2019 Trailing Twelve Months Sales Adjusted Operating Income $’s in USD Millions PST Overview Impact of foreign currency conversion reduced revenue by $1.4 million relative to Q2
Slide 15: Updated 2019 Guidance
15 Updated 2019 Guidance Increasing midpoint of 2019 adjusted EPS guidance to $1.66 Increasing previously provided 2019 adjusted EPS guidance midpoint to $1.66 Midpoint revenue guidance reduced by $7.5 million to $840 million - expecting Q3 revenue to be slightly greater than Q4 revenue Incrementall
Slide 16: Summary
16 Summary 2019 Q2 Summary ▸ Control Devices – Excluding Shift - by - Wire and divested product lines, adjusted sales increased by 7.1% over Q2 2018. Adjusted operating margin increased by 30 basis points over Q1 2019. ▸ Electronics – Continued strong revenue growth partially offset by unfavorable c
Slide 17: Appendix
Appendix Ssereivee
Slide 18: 2019 2nd Quarter Adjustments
18 2019 2 nd Quarter Adjustments Adjustments ▸ The change in the Fair Value of the earn - out related to the acquisition of the remaining 26% minority interest in PST. The afte r - tax impact of this adjustment was $0.5 million. ▸ Expenses related to certain restructuring costs. The after - tax impa
Slide 19: Income Statement
19 Income Statement (in thousands, except per share data) Net sales $ 222,241 $ 220,602 $ 440,538 $ 446,532 Costs and expenses: Cost of goods sold 165,414 153,184 322,858 311,145 Selling, general and administrative 27,522 35,256 63,110 72,517 Gain on disposal of non-core products, net (33,921) - (33
Slide 20: Segment Financial Information
20 Segment Financial Information Net Sales: Control Devices $ 114,067 $ 109,956 $ 224,186 $ 225,313 Inter-segment sales 2,078 2,481 3,939 4,662 Control Devices net sales 116,145 112,437 228,125 229,975 Electronics 91,560 90,313 182,406 180,341 Inter-segment sales 10,325 9,771 19,047 20,243 Electroni
Slide 21: Balance Sheet
21 Balance Sheet CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 51,503 $ 81,092 Accounts receivable, less reserves of $1,592 and $1,243, respectively 151,687 139,076 Inventories, net 100,751 79,278 Prepaid expenses and other current assets 3
Slide 22: Statement of Cash Flows
22 Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, (in thousands) OPERATING ACTIVITIES: Net income $ 49,421 $ 28,500 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 11,819 11,535 Amortization, including
Slide 23: Statement of Cash Flows (Cont.)
23 Statement of Cash Flows (Cont.) CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, (in thousands) FINANCING ACTIVITIES: Revolving credit facility borrowings 55,000 26,500 Revolving credit facility payments (47,500) (37,500) Proceeds from issuance of debt 55 273 Repayments of debt (99
Slide 24: Reconciliations to US GAAP
24 Reconciliations to US GAAP
Slide 25: Reconciliations to US GAAP
25 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 26: Reconciliations to US GAAP
26 Reconciliations to US GAAP (USD in millions) Q2 2018 Q1 2019 Q2 2019 Sales 220.6$ 218.3$ 222.2$ Less: Pre-Tax One-Time Sale of Non-Core Product Inventory (4.2) Adjusted Sales 220.6$ 218.3$ 218.1$ Reconciliation of Adjusted Sales (USD in millions) Q2 2018 Q1 2019 Q2 2019 Gross Profit 67.4$ 60.9$ 5
Slide 27: Reconciliations to US GAAP
27 Reconciliations to US GAAP (USD in millions) Q1 2019 Income Before Tax 11.5$ Add: Pre-Tax Step-Up in Fair Value of Earn-Out (Orlaco) - Add: Pre-Tax Step-Up in Fair Value of Earn-Out (PST) 0.5 Less: Pre-Tax Gain in Fair Value of Equity Investment (0.0) Add: Pre-Tax Restructuring Costs 2.8 Add: Pre
Slide 28: Reconciliations to US GAAP
28 Reconciliations to US GAAP (USD in millions) Q1 2019 Q1 2019 EPS Net Income 9.7$ 0.33$ Add: After-Tax Step-Up in Fair Value of Earn-Out (PST) 0.5 0.02 Less: After-Tax Gain in Fair Value of Equity Investment (0.0) (0.00) Add: After-Tax Restructuring Costs 2.1 0.07 Less: After-Tax Impact of State T
Slide 29: Reconciliations to US GAAP
29 Reconciliations to US GAAP (USD in millions) Q2 2018 Q2 2019 Adjusted Sales 220.6$ 218.1$ Less: Pre-Tax Impact from Disposed Non-Core Products (11.2) (9.1) Adjusted Sales Excluding Disposed Non-Core Products 209.4$ 209.0$ Reconciliation of Adjusted Sales Excluding Disposed Non-Core Products (USD
Slide 30: Reconciliations to US GAAP
30 Reconciliations to US GAAP (USD in millions) Q3 2017 Q4 2017 Q1 2018 Q2 2018 TTM Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 TTM Q2 2019 Adjusted Operating Income 16.2$ 17.3$ 17.9$ 17.3$ 68.7$ 16.3$ 12.9$ 14.7$ 12.9$ 56.7$ Less: Pre-Tax Gain from Disposed Non-Core Products (1.7) (1.9) (2.4) (2.3) (8.
Slide 31: Reconciliations to US GAAP
31 Reconciliations to US GAAP (USD in millions) Q3 2017 Q4 2017 Q1 2018 Q2 2018 TTM Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 TTM Q2 2019 Electronics Operating Income 4.9$ 4.9$ 7.9$ 8.3$ 25.9$ 9.0$ 3.1$ 9.0$ 7.6$ 28.7$ Add: Pre-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 1.8 0.9 0.4 3.1 Add: Pre-Ta