Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q2 2022 Earnings Presentation
32 slides from Stoneridge's earnings presentation, Aug 3, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results August 4, 2022 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 uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors that ma
Slide 3: Q2 2022 Overview
3 Q2 2022 Overview Pricing and supply chain actions continue to offset incremental material costs (offset ~90% of incremental material costs year- to-date) Second quarter adjusted EPS performance negatively impacted by FX headwinds of ~($0.06) vs. prior expectations Updating full-year 2022 guidance
Slide 4: Financial Summary
4 ▸ Sales increased in Q2 vs.Q1 primarily due to higher volumes and the continued ramp-up of recently launched programs offset by unfavorable impact of foreign currency of ~($1.6) million ▸ End-market demand remains strong – customer production schedules limited by material availability in the quart
Slide 5: Supply Chain Update
5 Supply Chain Update Pricing Actions / Supply Chain Strategy ▸ The pricing and supply chain actions taken in the first half of the year offset ~90% of the year-to-date incremental material costs in 2022 relative to 2021 ▸ Continue to pass the majority of spot-buy costs through to customers Material
Slide 6: Leadership Announcements
6 Leadership Announcements ▸ Effective July 1st, Kevin Heigel, senior vice president, integrated supply chain, has returned to a consulting role to support the Company's global integrated supply chain initiatives on an as- needed basis ▸ Sal Orsini was appointed as Chief Procurement Officer effectiv
Slide 7: MirrorEye Update
7 MirrorEye Update Strong initial demand, limited in the short-term by material availability constraints OEM take rate expected to exceed 50% in 2023 as supply chain issues subside Current Production Update ▸ Market demand continues to be strong and exceeds current material availability ▸ Due to sup
Slide 8: Focused Strategy Driving Long-Term Performance
8 Focused Strategy Driving Long-Term Performance Stoneridge is well positioned to outperform the market, drive significant margin expansion and deliver shareholder value through long-term profitable growth * The Company defines backlog as the estimated cumulative awarded sales for the next five year
Slide 9: Financial Update
Financial Update Ssereree
Slide 10: 2nd Quarter 2022 Financial Summary
10 2nd Quarter 2022 Financial Summary 2nd Quarter 2022 Financial Results Adjusted sales of $205.7 million, an increase of 4.6% over Q1 2022 Control Devices sales of $85.0 million, consistent with Q1 2022 Electronics adjusted sales of $115.1 million, an increase of 6.4% over Q1 2022 Stoneridge Brazil
Slide 11: Q2 2022 Performance Drivers
11 Q2 2022 Performance Drivers Focused on driving margin expansion through cost mitigation actions and careful management of our cost structure to offset continued macroeconomic headwinds Q2 Operating Performance Incremental material costs net of customer recoveries inline with prior expectations In
Slide 12: Control Devices Financial Performance
12 Control Devices Financial Performance Continuing to focus on pricing actions and supply chain strategy to offset incremental material costs Expecting continued production volatility for the remainder of the year Control Devices 2022 Expectations ▸ Efficiently adjust variable cost structure to ali
Slide 13: Electronics Financial Performance
13 Q1 2022 vs. Q2 2022 Adjusted Sales Operating Loss Electronics Financial Performance Focused on margin expansion based on pricing actions and efficient engineering spend Continued momentum with MirrorEye OEM program launches and retrofit expansions Electronics 2022 Expectations ▸ Strong revenue gr
Slide 14: Stoneridge Brazil Financial Performance
14 Q1 2022 vs. Q2 2022 Sales Adjusted Operating Income Stoneridge Brazil Financial Performance Expecting relatively stable revenue and margin performance despite continued macroeconomic challenges through careful cost management Stoneridge Brazil 2022 Expectations Continue to expect macroeconomic ch
Slide 15: Updated 2022 Adjusted EPS Guidance
15 Updated 2022 Adjusted EPS Guidance Previously Provided 2022 Midpoint Guidance Drivers of Updated 2022 Adjusted EPS Guidance ($0.03) ($0.20) 2022 Midpoint Guidance Updated Updating 2022 full-year adjusted EPS guidance to reflect second quarter performance and current market conditions Adjusting re
Slide 16: Summary
16 Summary Q2 2022 Summary ▸ Control Devices – Volatility in Q2 customer production schedules driving revenue performance inline with Q1. Continued focus on offsetting incremental material costs with pricing actions and supply chain strategies, while managing controllable costs. ▸ Electronics – Cont
Slide 17: Appendix
Appendix Ssereree
Slide 18: Income Statement
18 Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Net sales $ 220,936 $ 191,334 $ 441,994 $ 385,129 Costs and expenses: Cost of goods sold 182,372 148,493 361,987 296,202 Selling, general and administrative 28,938 31,380 56,337 60,7
Slide 19: Balance Sheet
19 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 40,692 $ 85,547 Accounts receivable, less reserves of $1,938 and $1,443, respectively 159,733 150,388 Inventories, net 144,108 138,115 Prepaid expenses and other curre
Slide 20: Statement of Cash Flows
20 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, (in thousands) OPERATING ACTIVITIES: Net (loss) income $ (15,014) $ 19,928 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 13,618
Slide 21: Statement of Cash Flows (Cont.)
21 Statement of Cash Flows (Cont.) INVESTING ACTIVITIES: Capital expenditures, including intangibles (14,890) (14,043) Proceeds from sale of fixed assets 140 474 Proceeds from settlement of net investment hedge 3,820 - Proceeds from disposal of business, net - 1,050 Proceeds from sale of Canton Faci
Slide 22: Segment Financial Information
22 Segment Financial Information (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment
Slide 23: Reconciliations to US GAAP
23 Reconciliations to US GAAP
Slide 24: Reconciliations to US GAAP
24 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 meas
Slide 25: Reconciliations to US GAAP
25 Reconciliations to US GAAP (USD in millions) Q2 2022 Q2 2022 EPS Net Loss (7.3) $ (0.27) $ Add: After-Tax Brazilian Indirect Tax Credit (0.6) (0.02) Adjusted Net Loss (7.9) $ (0.29) $ Reconciliation of Q2 2022 Adjusted EPS Reconciliation of Q1 2022 Adjusted EPS (USD in millions) Q1 2022 Q1 2022 E
Slide 26: Reconciliations to US GAAP
26 Reconciliations to US GAAP Reconciliation of Adjusted Operating Loss (USD in millions) Q1 2022 Q2 2022 Operating Loss (3.0) $ (5.9) $ Add: Pre-Tax Brazilian Indirect Tax Credit, Net - (0.6) Adjusted Operating Loss (3.0) $ (6.5) $
Slide 27: Reconciliations to US GAAP
27 Reconciliations to US GAAP (USD in millions) Q2 2022 Tax Rate Loss Before Tax (6.9) $ Add: Pre-Tax Brazilian Indirect Tax Credit (0.8) Adjusted Loss Before Tax (7.7) $ Income Tax Expense 0.4 (6.0%) Add: Tax Impact from Pre-Tax Adjustments (0.2) Adjusted Income Tax Expense 0.2 $ (2.8%) Reconciliat
Slide 28: Reconciliations to US GAAP
28 Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2022 Q2 2022 Sales 221.1 $ 220.9 $ Less: Sales from Spot Purchase Recoveries (24.4) (15.3) Adjusted Sales 196.6 $ 205.7 $ Reconciliation of Adjusted Sales Ex. FX Impact* (USD in millions) Q2 2022 Adjusted Sales 205.7
Slide 29: Reconciliations to US GAAP
29 Reconciliations to US GAAP Reconciliation of Adjusted Operating Loss Ex. FX Impact* (USD in millions) Q2 2022 Adjusted Operating Loss (6.5) $ Add: FX Impact 1.6 Adjusted Operating Loss Ex. FX Impact (4.9) $ Reconciliation of Gross Profit Ex. FX Impact* (USD in millions) Q2 2022 Gross Profit 38.6
Slide 30: Reconciliations to US GAAP
30 Reconciliations to US GAAP Reconciliation of Control Devices Sales Ex. FX Impact* (USD in millions) Q2 2022 Control Devices Sales 85.0 $ Add: FX Impact 0.6 Control Devices Sales Ex. FX Impact 85.6 $ Reconciliation of Control Devices Operating Income Ex. FX Impact* (USD in millions) Q2 2022 Contro
Slide 31: Reconciliations to US GAAP
31 Reconciliations to US GAAP Reconciliation of Electronics Adjusted Sales (USD in millions) Q1 2022 Q2 2022 Electronics Sales 132.7 $ 130.4 $ Less: Sales from Spot Purchase Recovery (24.4) (15.3) Electronics Adjusted Sales 108.3 $ 115.1 $ Reconciliation of Electronics Adjusted Sales Ex. FX Impact*
Slide 32: Reconciliations to US GAAP
32 Reconciliations to US GAAP Reconciliation of Stoneridge Brazil Sales Ex. FX Impact* (USD in millions) Q2 2022 Stoneridge Brazil Sales 13.3 $ Add: FX Impact (0.7) Stoneridge Brazil Sales Ex. FX Impact 12.6 $ Reconciliation of Stoneridge Brazil Adjusted Operating Income Ex. FX Impact* (USD in milli