Slide 1: Q1 2020 Results
Q1 2020 Results May 7, 2020 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 Execution of operational goals led to reduced material and overhead costs – strong 1 st quarter performance prior to impact of global COVID - 19 pandemic x Took decisive actions to right - size our cost structure in response to current events and to position the business
Slide 4: Strong 1st quarter performance prior to COVID-19 impact
4 Execution of operational goals led to reduced material and overhead costs – strong 1st quarter performance prior to impact of global COVID - 19 pandemic Adjusted Sales* Adjusted Operating Income* ▸ Control Devices sales growth driven primarily by increased sales in our actuation and emission sensi
Slide 5: Updated weighted OEM end-markets expected to decline in 2020
5 Updated weighted OEM end - markets expected to decline (23.2%) in 2020 vs. previously provided guidance 2020 Updated Volume Outlook Prior Outlook Current Outlook Passenger Car Forecast (Millions of Units) Commercial Vehicle Forecast (Thousands of Units) North America 43.8% of 2019 Sales Europe 2.7
Slide 6: Operations Update
6 Operations Update We are committed to ensuring our employees remain safe while we serve our customers and the essential businesses that they support We will continue to adjust our operations to the current business environment North America ▸ Lexington, Ohio facility (primarily Control Devices) ha
Slide 7: Cost reduction and cash preservation actions
7 ▸ We have taken several actions to align resources with future, profitable growth and right - size our cost structure for the current market outlook ▸ Cash Preservation • Our balance sheet and liquidity remains strong given availability under U.S. revolving credit facility and cash - on - hand • C
Slide 8: Leadership Announcement
8 Leadership Announcement Jim Zizelman joins Stoneridge as President of Control Devices focused on driving product development, innovation strategy and technical vision ▸ Jim Zizelman joined Stoneridge as President of the Control Devices division effective April 1 st ▸ Jim is responsible for driving
Slide 9: Summary
9 Summary Summary x Execution of operational goals led to reduced material and overhead costs – strong 1 st quarter performance prior to impact of global COVID - 19 pandemic x Reduced material costs driven by reduced tariff costs and electronic component premium costs x Overhead reduced due to impro
Slide 10: Financial Update
Financial Update Ssevertve
Slide 11: 1st Quarter 2020 Financial Summary
11 1 st Quarter 2020 Financial Summary 1 st Quarter 2020 Financial Results Sales of $183.0 million, a decrease of $0.9 million over Q4 2019* • Control Devices sales of $98.2 million, an increase of 5% over Q4 2019* • Electronics sales of $79.8 million, a decrease of 1% over Q4 2019 • Stoneridge Braz
Slide 12: Control Devices Financial Performance
12 Control Devices Financial Performance Despite significant reduction in end - market production forecasts for the remainder of the year we expect continued operating improvement in Control Devices *Excluding divested product lines Revenue growth of 5% vs. Q4 2019 – COVID - 19 impact on sales estim
Slide 13: Electronics Financial Performance
13 Electronics Financial Performance Reduced production forecasts expected to create pressure on segment operating margin for the remainder of the year despite improving gross margin Revenue approximately flat vs. Q4 2019 – COVID - 19 impact on sales estimated to be $4.5 million in the quarter • Pro
Slide 14: Stoneridge Brazil Financial Performance
14 Stoneridge Brazil Financial Performance Despite reduced sales, operating margin improved vs. Q4 2019. Limited impact of COVID - 19 in the 1st quarter, however impact expected to increase moving forward. OEM sales expected to ramp - up. Stoneridge Brazil OEM sales increased by 48% vs. Q4 2019, how
Slide 15: Capital Structure Update
15 Capital Structure Update We will utilize our available capital as necessary to support operations in response to global impact of COVID - 19 Net Debt and Leverage Ratio Net debt / adjusted trailing - twelve - month EBITDA of 1.1x as of end of Q1 Credit facility has 3.5x net debt / EBITDA covenant
Slide 16: Summary
16 Summary 2020 Q1 Summary ▸ Control Devices – Strong sales and improving operational execution vs. Q4 2019. Despite significant reduction in end - market production forecasts for the remainder of the year we expect continued operating improvement. ▸ Electronics – Sales remained steady with improvin
Slide 17: Appendix
Appendix Ssevertve
Slide 18: Income Statement
18 Income Statement Three months ended March 31 (in thousands, except per share data) Net sales $ 182,966 $ 218,297 Costs and expenses: Cost of goods sold 137,569 157,444 Selling, general and administrative 29,503 35,910 Design and development 12,235 13,244 Operating income 3,659 11,699 Interest exp
Slide 19: Balance Sheet
19 Balance Sheet CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 81,305 $ 69,403 Accounts receivable, less reserves of $813 and $1,289, respectively 138,438 138,564 Inventories, net 95,777 93,449 Prepaid expenses and other current assets 33,7
Slide 20: Statement of Cash Flows
20 Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended March 31 (in thousands) OPERATING ACTIVITIES: Net income $ 3,490 $ 9,657 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 6,650 5,697 Amortization, including a
Slide 21: Statement of Cash Flows (Cont.)
21 Statement of Cash Flows (Cont.) CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended March 31 (in thousands) FINANCING ACTIVITIES: Revolving credit facility borrowings 71,500 - Revolving credit facility payments (36,500) (5,000) Proceeds from issuance of debt 1,958 34 Repayments of debt (2,07
Slide 22: Segment Financial Information
22 Segment Financial Information Three months ended March 31, Net Sales: Control Devices $ 96,850 $ 110,119 Inter-segment sales 1,347 1,861 Control Devices net sales 98,197 111,980 Electronics 71,546 90,846 Inter-segment sales 8,268 8,722 Electronics net sales 79,814 99,568 Stoneridge Brazil 14,570
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 me
Slide 25: Reconciliation of Q1 2020 Adjusted EPS
25 Reconciliations to US GAAP (USD in millions) Q1 2020 Q1 2020 EPS Net Income 3.5$ 0.13$ Add: After-Tax Step-Up in Fair Value of Earn-Out (PST) (0.6) (0.02) Add: After-Tax Restructuring Costs 1.7 0.06 Add: Pre-Tax Share-Based Comp Accelerated Vesting 0.1 0.00 Less: After-Tax Gain in Fair Value of E
Slide 26: Reconciliations of Adjusted Gross Profit and EBITDA
26 Reconciliations to US GAAP (USD in millions) Q4 2019 Q1 2020 Gross Profit 44.2 45.4 Add: Pre-Tax Restructuring Costs 1.5 1.5 Add: Pre-Tax Business Realignment Costs 0.1 Adjusted Gross Profit 45.6 47.0 Reconciliation of Adjusted Gross Profit (USD in millions) Q4 2019 Q1 2020 Income Before Tax (0.0
Slide 27: Reconciliation of Q1 2020 Adjusted Tax Rate
27 Reconciliations to US GAAP (USD in millions) Q1 2020 Income Before Tax 4.7$ Add: Pre-Tax Step-Up in Fair Value of Earn-Out (PST) (0.6) Less: Pre-Tax Change in Fair Value of Equity Investment 0.0 Add: Pre-Tax Share-Based Comp Accelerated Vesting 0.1 Add: Pre-Tax Restructuring Costs 2.2 Add: Pre-Ta
Slide 28: Segment Adjusted Operating Income Reconciliations
28 Reconciliations to US GAAP (USD in millions) Q4 2019 Q1 2020 Control Devices Operating Income 7.2$ 7.3$ Add: Pre-Tax Restructuring Costs 3.0 2.2 Add: Pre-Tax Business Realignment Costs 0.2 0.4 Control Devices Adjusted Operating Income 10.4$ 9.9$ Reconciliation of Control Devices Adjusted Operatin
Slide 29: Adjusted Results Excluding Disposed Non-Core Products
29 Reconciliations to US GAAP (USD in millions) Q4 2019 Q1 2020 Adjusted Sales 190.4$ 183.0$ Less: Pre-Tax Sale from Disposed Non-Core Products (6.5) Adjusted Sales Excluding Disposed Non-Core Products 183.9$ 183.0$ Reconciliation of Adjusted Sales Excluding Disposed Non-Core Products (USD in millio
Slide 30: Control Devices Adjusted Results Excluding Disposed Products
30 Reconciliations to US GAAP (USD in millions) Q4 2019 Q1 2020 Adjusted Operating Income 10.4$ 9.9$ Less: Pre-Tax Gain from Disposed Non-Core Products (0.4) Adjusted Operating Income Excluding Disposed Non-Core Products 10.0$ 9.9$ Reconciliation of Control Devices Adjusted Operating Income Excludin