Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q1 2021 Earnings Presentation
31 slides from Stoneridge's earnings presentation, Apr 28, 2021
Slide 1: Q1 2021 Results
Q1 2021 Results April 29, 2021 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 Strong 1 st quarter performance despite impact of global supply chain disruptions x Announced divestiture of soot sensor product lines (previously announced intention to exit the business) x Public announcements from two fleets, Maverick and Montgomery, announcing intent
Slide 4: Financial Summary
4 Financial Summary Strong first quarter performance driven by continued focus on execution and overcoming externalities Q1 2020 vs. Q1 2021 Q4 2020 vs. Q1 2021 Adjusted Sales* Adjusted Gross Profit* Adjusted Operating Income* Adjusted EBITDA* Adjusted EPS* $’s in USD Millions *Excluding recently di
Slide 5: Supply Chain Update
5 $1.7 $0.8 $ - $2.5 $2.7 $1.1 to $1.3 $1.2 to $1.5 $5.0 to $5.5 Q1 2021 Q2 2021 H2 2021 Full-year 2021 Supply Chain Update Expecting incremental supply chain related costs of $2.5 to $3.0 million relative to prior expectations for the full - year ($5.0 to $5.5 million vs. $2.5 million prior expecta
Slide 6: 2021 Updated Volume Outlook
6 Weighted average end market forecasts declined 1.0% for the full - year 2021 vs. previously provided production outlook 2021 Updated Volume Outlook Prior Outlook Current Outlook Passenger Car Forecast (Millions of Units) Commercial Vehicle Forecast (Thousands of Units) North America 40.0% of 2020
Slide 7: Summary
7 Summary Summary x Strong first quarter financial performance despite significant costs related to global supply chain disruptions x Finalized divestiture of exited soot sensor product lines with clear timeline to exit x MirrorEye retrofit programs continue to expand – announced that two of our fle
Slide 8: Financial Update
Financial Update Severe
Slide 9: 1st Quarter 2021 Financial Summary
9 1 st Quarter 2021 Financial Summary 1 st Quarter 2021 Financial Results Excluding divested product lines, adjusted sales of $189.8 million, an increase of 1.3% over Q4 2020 • Excluding divested product lines, Control Devices adjusted sales of $97.6 million, a decrease of 0.3% over Q4 2020 • Electr
Slide 10: Control Devices Financial Performance
10 Control Devices Financial Performance Focus on future profitable growth and continued operational improvement Navigating external headwinds Control Devices 2021 Expectations ▸ Continued transformation of manufacturing footprint and product portfolio to align with future growth opportunities ▸ Ann
Slide 11: Electronics Financial Performance
11 Electronics Financial Performance Expecting continued strong revenue growth Engineering investment, unfavorable mix and supply chain costs creating margin headwind in 2021 Electronics 2021 Expectations Continued gross margin headwinds as global supply chain issues continue to impact the business
Slide 12: Stoneridge Brazil Financial Performance
12 Stoneridge Brazil Financial Performance Expecting stable revenue and margin performance despite continued macroeconomic challenges Focus remains on supporting global Electronics business Stoneridge Brazil 2021 Expectations Revenue and operating margin expected to remain approximately flat in 2021
Slide 13: Drivers of 2021 Adjusted EPS Guidance
13 Incremental Supply Chain Related Costs ~($0.07) – ($0.08) 2021 Adjusted EPS Guidance 2021 Guidance Previously Provided Drivers of 2021 Adjusted EPS Guidance $0.60 - $0.75 $0.47 - $0.62 2021 Guidance Updated Guidance adjusted to reflect 1Q outperformance offset by continued external headwinds and
Slide 14: Net Debt Update
14 Net Debt Update Continued effective cash management during 2021 Expecting less than 2x net debt / adjusted EBITDA by end of 2021 Q1 2021 Summary ▸ Net debt increased by approximately $28.4 million in Q1 – consistent with historical timing of cash flows ▸ Expecting less than 2x net debt / adjusted
Slide 15: Summary
15 Summary 2021 Q1 Summary ▸ Control Devices – Strong sales and operating performance in Q1 despite global supply chain related headwinds. Continued transformation by finalizing the divestiture of the soot sensor business. ▸ Electronics – Continued strong sales growth during the quarter. Global supp
Slide 16: Appendix
Appendix Sseveve
Slide 17: Income Statement
17 Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31 (in thousands, except per share data) Net sales $ 193,795 $ 182,966 Costs and expenses: Cost of goods sold 147,709 137,569 Selling, general and administrative 29,376 29,503 Design and developm
Slide 18: Balance Sheet
18 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 60,508 $ 73,919 Accounts receivable, less reserves of $1,186 and $817, respectively 149,709 136,745 Inventories, net 95,439 90,548 Prepaid expenses and other current a
Slide 19: Statement of Cash Flows
19 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31 (in thousands) OPERATING ACTIVITIES: Net income $ 130 $ 3,490 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 7,068 6,650 Amort
Slide 20: Statement of Cash Flows (Cont.)
20 Statement of Cash Flows (Cont.) FINANCING ACTIVITIES: Revolving credit facility borrowings 20,500 71,500 Revolving credit facility payments (3,000) (36,500) Proceeds from issuance of debt 11,434 1,958 Repayments of debt (13,763) (2,077) Common Share repurchase program - (4,995) Repurchase of Comm
Slide 21: Segment Financial Information
21 Segment Financial Information (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology an d legal costs as well as share - based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipme
Slide 22: Reconciliations to US GAAP
22 Reconciliations to US GAAP
Slide 23: Reconciliations to US GAAP
23 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 24: Reconciliation of Adjusted EPS
24 Reconciliations to US GAAP Reconciliation of Q1 2021 Adjusted EPS (USD in millions) Q1 2021 Q1 2021 EPS Net Income 0.1$ 0.0$ Less: After-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) 0.1 0.00 Add: After-Tax Restructuring Costs 1.5 0.05 Add: After-Tax Business Realignment Costs 0.2 0.01
Slide 25: Reconciliation of Adjusted Operating Income and Gross Profit
25 Reconciliations to US GAAP Reconciliation of Adjusted Operating Income (USD in millions) Q1 2020 Q4 2020 Q1 2021 Operating Income 3.7$ 5.7$ 2.1$ Add(Less): Pre-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) (0.6) (0.2) 0.1 Add(Less): Pre-Tax Loss (Earnings) in Autotech Fund Investment 0
Slide 26: Reconciliation of Adjusted EBITDA
26 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q1 2020 Q4 2020 Q1 2021 Income (Loss) Before Tax 4.7$ 4.5$ 0.5$ Interest expense, net 1.0 1.8 1.8 Depreciation and amortization 8.1 8.6 8.4 EBITDA 13.8$ 14.9$ 10.8$ Add(Less): Pre-Tax Change in Fair Value of Earn-Out (
Slide 27: Reconciliation of Q1 2021 Adjusted Tax Rate
27 Reconciliations to US GAAP Reconciliation of Q1 2021 Adjusted Tax Rate (USD in millions) Q1 2021 Income Before Tax 0.5$ Add: Pre-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) 0.1 Add: Pre-Tax Restructuring Costs 1.6 Add: Pre-Tax Business Realignment Costs 0.2 Less: Pre-Tax Gain from Di
Slide 28: Segment Adjusted Operating Income Reconciliations
28 Reconciliations to US GAAP Reconciliation of Stoneridge Brazil Adjusted Operating Income (Loss) (USD in millions) Q1 2020 Q4 2020 Q1 2021 Stoneridge Brazil Operating Income (Loss) 0.9$ 0.3$ (0.0)$ Add(Less): Pre-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) (0.6) (0.2) 0.1 Add: Pre-Tax
Slide 29: Reconciliation of Adjusted Sales
29 Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2020 Q4 2020 Q1 2021 Sales 183.0$ 189.7$ 193.8$ Less: Pre-Tax One-Time Sale of Soot Sensor Product Inventory - - (1.0) Adjusted Sales 183.0$ 189.7$ 192.8$ Reconciliation of Adjusted Gross Profit Excluding Disposed So
Slide 30: Adjusted EPS and EBITDA Excluding Disposed Business
30 Reconciliations to US GAAP Reconciliation of Adjusted EPS Excluding Disposed Soot Sensor Business (USD in millions) Q1 2020 Q4 2020 Q1 2021 Adjusted EPS 0.20$ 0.14$ 0.06$ Less: EPS attributable to Disposed Soot Sensor Business (0.00) (0.01) (0.02) Adjusted EPS Excluding Disposed Soot Sensor Busin
Slide 31: Control Devices Adjusted Sales Reconciliation
31 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Sales Excluding Disposed Soot Sensor Business (USD in millions) Q1 2020 Q4 2020 Q1 2021 Adjusted Control Devices Sales 98.2$ 100.4$ 100.6$ Less: Sales from Disposed Soot Sensor Business (2.4) (2.5) (3.0) Adjusted Control Device