Stoneridge, Inc. · NYSE:SRI

Stoneridge — Q2 2024 Earnings Presentation

31 slides from Stoneridge's earnings presentation, Jul 31, 2024

Slide 2: Forward-Looking Statements
stoneridge.com © 2024 Q2 2024 Results 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
Slide 3: Non-GAAP Financial Measures
stoneridge.com © 2024 Q2 2024 Results 3 Non-GAAP Financial Measures This presentation contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are recon
Slide 4: Overview of Achievements
stoneridge.com © 2024 Q2 2024 Results • Q2 Adjusted EPS of $0.17 improved by $0.39 vs. Q1 2024 • Q2 Adjusted EBITDA margin of 6.8% improved by ~410 bps vs. Q1 2024 • Material cost improvements, operating cost control and favorable non-operating FX impacts drove improvement • Q2 Gross margin of 22.7%
Slide 5: Financial Summary
5stoneridge.com © 2024 Q2 2024 Results Sales Gross Profit Adjusted Operating Income* Adjusted EBITDA* Q1 2024 vs. Q2 2024 +250 bps +210 bps +410 bps Second quarter operating performance improved significantly vs. Q1 driven by continued improvement in material costs, operational excellence and focuse
Slide 6: Organizational Announcement
6stoneridge.com © 2024 Q2 2024 Results Organizational Announcement • Most recently, Noblet served as the senior vice president EMEA Region within ZF’s Commercial Vehicle Solutions division where she led profitability for the region, including strategy, planning, sales, procurement, and manufacturing
Slide 7: MirrorEye CMS Updates
stoneridge.com © 2024 Q2 2024 Results MirrorEye CMS Updates • Launched on Volvo’s FH Aero Model in Europe in Q2 2024 • 2024 OEM orders have shown some volatility as program and truck production continue to ramp up • Exceptional initial customer feedback • We expect take rates to at least remain cons
Slide 8: Artificial Intelligence and Advanced Software Algorithms
stoneridge.com © 2024 Q2 2024 Results 8 Artificial Intelligence and Advanced Software Algorithms • Dedicated team of engineers directly involved in AI-based advanced development and deployment • Applications across both new and existing products • Deploying AI-based algorithms for object and pedestr
Slide 10: Q2 2024 Financial Highlights
10stoneridge.com © 2024 Q2 2024 Results Q2 2024 Financial Highlights Q2 2024 Reported -$237.1 million Sales - $53.7 million 22.7% Gross Profit Margin $5.4 million 2.3% $3.4 million 1.4% Operating Income Margin $0.17$0.10EPS $16.1 million 6.8% - EBITDA Margin Key Performance Drivers • Improved gross
Slide 11: Control Devices Performance
11stoneridge.com © 2024 Q2 2024 Results $2.2 $3.7 Q1 2024 Q2 2024 Sales Operating Income $’s in USD Millions Continued margin expansion driven by focus on operational excellence and operating cost control Control Devices Performance 2.2% 2.2% Q1 2024 vs Q2 2024 +180 bps $78.0 $80.9 Q1 2024 Q2 2024 2
Slide 12: Electronics Performance
12stoneridge.com © 2024 Q2 2024 Results Sales Adj. Operating Income* Q1 2024 vs Q2 2024 $’s in USD Millions Significant and continued margin expansion in Q2 Electronics Performance Q2 2024 Financial Results • Excluding the unfavorable impact of foreign currency of ~$2.2 million, Q2 sales were approx
Slide 13: Stoneridge Brazil Performance
13stoneridge.com © 2024 Q2 2024 Results Sales Operating Income (Loss) Q1 2024 vs Q2 2024 $’s in USD Millions Focus remains on growth in local OEM business and engineering capabilities to support global business Stoneridge Brazil Performance $12.2 $11.8 Q1 2024 Q2 2024 Q2 2024 Financial Results • Exc
Slide 14: 2024 Full-Year Revenue & EBITDA Guidance Update
stoneridge.com © 2024 Q2 2024 Results 2024 Full-Year Revenue & EBITDA Guidance Update Revenue Guidance Drivers • Production volume headwinds on OEM programs primarily driven by continued macroeconomic pressure on commercial vehicle end market and reduced demand in North America passenger vehicle pro
Slide 15: 2024 Full-Year Guidance Update
stoneridge.com © 2024 Q2 2024 Results 2024 Full-Year Guidance Update Guidance Range Updated Midpoint Change ($45.0) million$940.0 million - $970.0 million Sales +50 bps22.75% - 23.0%Gross Margin (25) bps~2.75%Adj. Operating Margin ($0.12)$0.18 - $0.28Adj. EPS ($6) million ~(30) bps $58 million - $64
Slide 16: Key Priorities Update
16stoneridge.com © 2024 Q2 2024 Results Key Priorities Update Q2 2024 YTD Summary • 2-3x Market Growth  Full-year revenue guidance midpoint implies 3.6% outperformance vs. weighted-average OEM end markets which are expected to decline by (4.3)% • Gross Margin Expansion – Targeting 140 bps gross mar
Slide 18: Balance Sheets
stoneridge.com © 2024 Appendix 18 Balance Sheets December 31, 2023 June 30, 2024(in thousands) (Unaudited) ASSETS Current assets: $ 40,841$ 42,112Cash and cash equivalents 166,545168,215Accounts receivable, less reserves of $620 and $1,058, respectively 187,758178,749Inventories, net 34,24632,882Pre
Slide 19: Income Statement
stoneridge.com © 2024 Appendix 19 Income Statement Six months ended June 30, Three months ended June 30, 2023202420232024(in thousands, except per share data) $ 508,139$ 476,216$ 266,814$ 237,059Net sales Costs and expenses: 404,849374,119206,326183,319Cost of goods sold 63,35462,29933,49131,876Sell
Slide 20: Statements of Cash Flows
stoneridge.com © 2024 Appendix 20 Statements of Cash Flows 20232024Six months ended June 30, (in thousands) OPERATING ACTIVITIES: $ (10,378)$ (3,340)Net loss Adjustments to reconcile net loss to net cash provided by (used for) operating activities: 13,16113,054Depreciation 4,0044,440Amortization, in
Slide 21: Segment Reporting
stoneridge.com © 2024 Appendix 21 Segment Reporting (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 a property,
Slide 23: This document contains information about Stoneridge's financial results which is not presented in accordance
stoneridge.com © 2024 US GAAP Reconciliations US GAAP Reconciliations 23 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 reco
Slide 24: Reconciliation of Q2 2024 Adjusted EPS
stoneridge.com © 2024 US GAAP Reconciliations 24 US GAAP Reconciliations Reconciliation of Q2 2024 Adjusted EPS Q2 2024 EPSQ2 2024(USD in millions, except EPS) $ 0.10$ 2.8Net Income 0.071.9Add: After-Tax Business Realignment Costs $ 0.17$ 4.7Adjusted Net Income
Slide 25: Reconciliation of Adjusted Operating Income
stoneridge.com © 2024 US GAAP Reconciliations 25 US GAAP Reconciliations Reconciliation of Adjusted Operating Income Q2 2024Q1 2024(USD in millions) $ 3.4$ 0.3Operating Income 1.9—Add: Pre-Tax Business Realignment Costs $ 5.4$ 0.3Adjusted Operating Income
Slide 26: Reconciliation of Adjusted EBITDA
stoneridge.com © 2024 US GAAP Reconciliations 26 US GAAP Reconciliations Reconciliation of Adjusted EBITDA Q2 2024Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 1.9$ (5.6)$ 3.2$ 4.4$ (1.5)$ (8.1)Income (Loss) Before Tax 3.83.63.83.33.12.7Interest expense, net 8.58.68.48.58.48.3Depreciation a
Slide 27: Reconciliation of Electronics Adjusted Operating Income
stoneridge.com © 2024 US GAAP Reconciliations 27 US GAAP Reconciliations Reconciliation of Electronics Adjusted Operating Income Q2 2024Q1 2024(USD in millions) $ 9.8$ 7.1Electronics Operating Income 1.9—Add: Pre-Tax Business Realignment Costs $ 11.7$ 7.1Electronics Adjusted Operating Income
Slide 28: Reconciliation of Q2 2024 Adjusted Tax Rate
stoneridge.com © 2024 US GAAP Reconciliations 28 US GAAP Reconciliations Reconciliation of Q2 2024 Adjusted Tax Rate Tax RateQ2 2024(USD in millions) $ 1.9Income Before Tax 1.9Add: Pre-Tax Business Realignment Costs $ 3.8Adjusted Income Before Tax (50.6)%(0.9)Income Tax Benefit -Add: Tax Impact from
Slide 29: Reconciliation of Adjusted EBITDA for Compliance Calculation
stoneridge.com © 2024 US GAAP Reconciliations 29 US GAAP Reconciliations Reconciliation of Adjusted EBITDA for Compliance Calculation Q2 2024Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023(USD in millions) 1.9(5.6)3.2$ 4.4$ (1.5)$ (8.1)Income (Loss) Before Tax 3.83.63.83.33.12.7Interest Expense, net 8.58.68.48.
Slide 30: Reconciliation of Adjusted Cash for Compliance Calculation
stoneridge.com © 2024 US GAAP Reconciliations 30 US GAAP Reconciliations Reconciliation of Adjusted Cash for Compliance Calculation Q2 2024Q1 2024Q4 2023(USD in millions) $ 42.1$ 48.4$ 40.8Total Cash and Cash Equivalents (12.5)(14.8)(12.8)Less: 35% Cash Foreign Locations $ 29.6$ 33.6$ 28.0Total Adju

Stoneridge — Q2 2024 Earnings Presentation on 6ix

Stoneridge — Q2 2024 Earnings Presentation

Slide 1: Q2 2024 Results

Slide 2: Forward-Looking Statements

Slide 3: Non-GAAP Financial Measures

Slide 4: Overview of Achievements

Slide 5: Financial Summary

Slide 6: Organizational Announcement

Slide 7: MirrorEye CMS Updates

Slide 8: Artificial Intelligence and Advanced Software Algorithms

Slide 9: Financial Update

Slide 10: Q2 2024 Financial Highlights

Slide 11: Control Devices Performance

Slide 12: Electronics Performance

Slide 13: Stoneridge Brazil Performance

Slide 14: 2024 Full-Year Revenue & EBITDA Guidance Update

Slide 15: 2024 Full-Year Guidance Update

Slide 16: Key Priorities Update

Slide 17: Appendix Materials

Slide 18: Balance Sheets

Slide 19: Income Statement

Slide 20: Statements of Cash Flows

Slide 21: Segment Reporting

Slide 22: Reconciliations to US GAAP

Slide 23: This document contains information about Stoneridge's financial results which is not presented in accordance

Slide 24: Reconciliation of Q2 2024 Adjusted EPS

Slide 25: Reconciliation of Adjusted Operating Income

Slide 26: Reconciliation of Adjusted EBITDA

Slide 27: Reconciliation of Electronics Adjusted Operating Income

Slide 28: Reconciliation of Q2 2024 Adjusted Tax Rate

Slide 29: Reconciliation of Adjusted EBITDA for Compliance Calculation

Slide 30: Reconciliation of Adjusted Cash for Compliance Calculation

Slide 31: Stoneridge