Slide 1: Third-Quarter 2019 Results
Third - Quarter 2019 Results October 31, 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 Announced second MirrorEye ® award with commercial vehicle OEM x Major global commercial vehicle OEM expected to begin pre - wiring trucks for MirrorEye ® starting in early 2020 x Stoneridge named a 2020 Automotive News PACE award finalist for MirrorEye ® CMS x Announcin
Slide 4: 3rd Quarter 2019 Quarterly Financial Comparison
4 3 rd Quarter 2019 Quarterly Financial Comparison Reduced production volumes, other external factors and increased expediting costs more than offset continued operational improvements during the quarter Quarterly Comparison* Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA $’s
Slide 5: Production Forecast Update 2019
5 Production Forecast Update 2019 Updated global production forecasts reduced Q3 revenue by $3.1 million Expected to reduce Q4 revenue by $9.5 million compared to prior expectations NA Passenger Car (30% of total sales) China Passenger Car (5% of total sales) NA Commercial Vehicle (17% of total sale
Slide 6: External Factors Estimated Impact on Financial Performance
6 External Factors Estimated Impact on Financial Performance Reducing full - year adjusted EPS guidance by adverse impacts of GM strike and currency ($0.11) Expecting to offset all other adverse external factors ($0.15) ▸ GM Strike • Updated guidance considers end of GM strike and ramp - up of produ
Slide 7: Electronics Portfolio Review Update
7 Electronics Portfolio Review Update ELECTRONICS ▸ Drive advanced technology development ▸ Capture MirrorEye ® retrofit opportunities ▸ Complete review of strategic alternatives of switches and controls business Status x MirrorEye ® retrofit program delayed 1 - 2 quarters due to ongoing process and
Slide 8: MirrorEye Update
8 MirrorEye ® Update 2 nd OEM award and pre - wire agreement continue to advance commercialization strategy Major global commercial vehicle OEM expected to begin pre - wiring for MirrorEye ® in early 2020 ▸ Second MirrorEye ® award with commercial vehicle OEM • Estimated $10 million peak annual reve
Slide 9: Summary
9 Summary ▸ Focused on driving financial performance despite significant external headwinds, including reduced production volumes due in - part to the GM strike ▸ We are reducing full - year adjusted EPS guidance to account for forecasted adverse impacts of the GM strike and currency ($0.11). We exp
Slide 10: Financial Update
Financial Update Ssevertve
Slide 11: 3rd Quarter 2019 Financial Summary
11 3 rd Quarter 2019 Financial Summary Excluding divested product lines, sales of $192.6 million, a decrease of 3% over Q3 2018 Excluding divested product lines, Control Devices sales of $99.1 million, an increase of $0.2 million over Q3 2018 Electronics sales of $87.0 million, a decrease of 4% over
Slide 12: Control Devices Financial Performance
12 Q3 2018 vs Q3 2019* Trailing Twelve Months* Adjusted Sales Adjusted Operating Income Control Devices Financial Performance Continued growth in core products offsetting expected declines in legacy Shift - by - Wire Increased expediting costs contributed to margin decline – expecting improvement in
Slide 13: Electronics Financial Performance
13 Electronics Financial Performance Continued currency headwinds reducing top - line growth Incremental costs related to electronic component supply shortages driving reduced margin Q3 2018 vs Q3 2019 Trailing Twelve Months Sales Adjusted Operating Income $’s in USD Millions Electronics Overview Th
Slide 14: PST Financial Performance
14 PST Financial Performance Macroeconomic headwinds continue to significantly impact financial performance Q3 2018 vs Q3 2019 Trailing Twelve Months Sales Adjusted Operating Income $’s in USD Millions PST Overview Reduced demand in aftermarket audio and alarm products in Brazil and Argentina negati
Slide 15: Q3 2019 Adjusted EPS Performance Drivers
15 Q3 2019 Adjusted EPS Performance Drivers $0.38 – $0.40 $0.37 Previous Outlook* GM Strike Production Volumes Currency Q3 Effective Tax Rate Reduced SG&A and Capitalized Engineering Actual External headwinds of approximately $0.07 EPS in Q3 partially offset by favorable effective tax rate, larger p
Slide 16: 2019 Full-Year Adjusted EPS Guidance
16 2019 Full - Year Adjusted EPS Guidance Reducing full - year adjusted EPS guidance by adverse impacts of GM strike and currency ($0.11) Expecting to offset all other adverse external factors ($0.15) Adjusting previously provided guidance to account for current market conditions and offsetting fact
Slide 17: Summary
17 Summary 2019 Q3 Summary ▸ Control Devices – Excluding Shift - by - Wire, impact of GM strike and divested product lines, sales increased by 8.3% over Q3 2018. Operating margin negatively impacted by increased expediting costs as well as continued tariff expenses. ▸ Electronics – Excluding the imp
Slide 18: Appendix
Appendix Ssevertve
Slide 19: 2019 3rd Quarter Adjustments
19 2019 3 rd 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 $0.9 million. ▸ Expenses related to certain restructuring costs. The after - tax impa
Slide 20: Income Statement
20 Income Statement (in thousands, except per share data) Net sales $ 203,386 $ 208,853 $ 643,924 $ 655,385 Costs and expenses: Cost of goods sold 151,531 145,568 474,389 456,713 Selling, general and administrative 30,978 32,589 94,088 105,106 Gain on disposal of non-core products, net - - (33,599)
Slide 21: Segment Financial Information
21 Segment Financial Information Net Sales: Control Devices $ 108,690 $ 108,402 $ 332,876 $ 333,715 Inter-segment sales 1,185 1,556 5,124 6,218 Control Devices net sales 109,875 109,958 338,000 339,933 Electronics 78,154 81,587 260,560 261,928 Inter-segment sales 8,867 9,067 27,914 29,310 Electronic
Slide 22: Balance Sheet
22 Balance Sheet CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 55,263 $ 81,092 Accounts receivable, less reserves of $1,752 and $1,243, respectively 143,628 139,076 Inventories, net 103,597 79,278 Prepaid expenses and other current assets 2
Slide 23: Statement of Cash Flows
23 Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, (in thousands) OPERATING ACTIVITIES: Net income $ 56,082 $ 41,792 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 18,227 17,073 Amortization, inc
Slide 24: Statement of Cash Flows (Cont.)
24 Statement of Cash Flows (Cont.) CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, (in thousands) FINANCING ACTIVITIES: Revolving credit facility borrowings 81,500 27,500 Revolving credit facility payments (69,000) (47,500) Proceeds from issuance of debt 2,195 369 Repayments of
Slide 25: Reconciliations to US GAAP
25 Reconciliations to US GAAP
Slide 26: Reconciliations to US GAAP
26 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 27: Reconciliations to US GAAP
27 Reconciliations to US GAAP (USD in millions) Q3 2018 Q1 2019 Q2 2019 Q3 2019 Sales 208.9$ 218.3$ 222.2$ 203.4$ Less: Pre-Tax One-Time Sale of Non-Core Product Inventory (4.2) Adjusted Sales 208.9$ 218.3$ 218.1$ 203.4$ Reconciliation of Adjusted Sales (USD in millions) Q3 2018 Q1 2019 Q2 2019 Q3 2
Slide 28: Reconciliations to US GAAP
28 Reconciliations to US GAAP (USD in millions) Q3 2018 Q1 2019 Q2 2019 Q3 2019 Income Before Tax 16.8$ 11.5$ 48.8$ 8.1$ Interest expense, net 1.2 1.0 1.0 1.1 Depreciation and amortization 7.1 7.2 7.6 7.9 EBITDA 25.0$ 19.7$ 57.4$ 17.1$ Add: Pre-Tax Step-Up in Fair Value of Earn-Out (PST) 0.5 0.5 0.5
Slide 29: Reconciliations to US GAAP
29 Reconciliations to US GAAP (USD in millions) Q1 2019 Q1 2019 EPS Net Income Attributable to Stoneridge 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:
Slide 30: Reconciliations to US GAAP
30 Reconciliations to US GAAP (USD in millions) Q2 2019 Q2 2019 EPS Net Income Attributable to Stoneridge 39.8$ 1.41$ Add: After-Tax Step-Up in Fair Value of Earn-Out (PST) 0.4 0.02 Add: After-Tax Business Realignment Costs 2.7 0.10 Add: After-Tax Write-Off of Deferred Financing Fees 0.2 0.01 Add: A
Slide 31: Reconciliations to US GAAP
31 Reconciliations to US GAAP (USD in millions) Q3 2018 Q3 2019 Adjusted Gross Profit 63.3$ 54.4$ Less: Pre-Tax Gain from Disposed Non-Core Products (3.2) (1.1) Adjusted Gross Profit Excluding Disposed Non-Core Products 60.0$ 53.3$ Reconciliation of Adjusted Gross Profit Excluding Disposed Non-Core
Slide 32: Reconciliations to US GAAP
32 Reconciliations to US GAAP (USD in millions) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Control Devices Sales 109.6$ 117.5$ 112.4$ 110.0$ 109.7$ 112.0$ 116.1$ 109.9$ Less: Pre-Tax One-Time Sale of Non-Core Product Inventory - - - - - - (4.2) Adjusted Control Devices Sales 109
Slide 33: Reconciliations to US GAAP
33 Reconciliations to US GAAP (USD in millions) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 PST Operating Income (0.1)$ 0.2$ 0.7$ 0.7$ 3.4$ 0.7$ 6.4$ (0.5)$ Add: Pre-Tax Step-Up in Fair Value of Earn-Out (PST) 1.9 0.5 0.5 0.5 (1.7) 0.5 0.5 0.9 Less: Pre-Tax Recovery of Brazilian