Stoneridge Reports Fourth-Quarter 2009 Results
-- Continued positive operating income
-- Liquidity remains strong
WARREN, Ohio, Feb. 16 /PRNewswire-FirstCall/ -- Stoneridge, Inc. (NYSE: SRI) today announced net sales of $133.8 million and a net loss of $0.2 million, or $(0.01) per diluted share, for the fourth quarter ended December 31, 2009.
Net sales decreased $24.2 million, or 15.3%, to $133.8 million, compared with $158.0 million for the fourth quarter of 2008. The decrease in net sales was primarily caused by dramatically reduced production volumes in the fourth quarter of 2009 compared with the fourth quarter of 2008 in the commercial vehicle markets in Europe (53.9%) and North America (17.9%).
The net loss for the fourth quarter of 2009 was $0.2 million, or $(0.01) per diluted share, compared with a net loss of $108.4 million, or $(4.63) per diluted share, in the fourth quarter of 2008. The 2008 loss included the noncash write-off of goodwill of $65.2 million and $62.0 million for the deferred tax asset valuation allowance. Excluding the 2008 impact on earnings per share of the noncash write-off of goodwill and the deferred tax asset valuation allowance, the net loss for the fourth quarter of 2009 was at the same level as the fourth quarter of 2008.
The results for the fourth quarter of 2009 occurred despite a 15.3% drop in sales volume and are primarily due to the benefits from previous restructuring and cost-reduction initiatives.
Though net sales were significantly lower than last year, Stoneridge generated an operating profit of $2.2 million in the fourth quarter of 2009 as the benefits of previous restructuring initiatives and cost-reduction programs helped offset the market reduction.
As of December 31, 2009, Stoneridge's consolidated cash position was $91.9 million, $0.8 million lower than its 2008 year-end balance of $92.7 million. The Company's asset-based lending facility remains undrawn.
For the year ended December 31, 2009, net sales were $475.2 million, a decrease of 36.9% compared with $752.7 million for the year ended December 31, 2008. The net loss for the year ended December 31, 2009 was $32.4 million, or $(1.37) per diluted share, compared with a net loss of $97.5 million, or $(4.17) per diluted share, in 2008. The 2008 loss included the noncash write-off of goodwill of $65.2 million and $62.0 million for the deferred tax asset valuation allowance.
"After a difficult first half in 2009, we have restored positive operating income in the third and fourth quarters," said John C. Corey, president and chief executive officer. "We maintained our liquidity, which gives us the ability to fund future growth and take advantage of investment opportunities and fund working capital requirements as the market recovers. With a lower cost structure and gradually improving industry volumes, we are positioned to show continued improvement."
Outlook
Corey added, "Looking forward, 2010 will be a transition year regarding volume improvements for the global industry. We believe we have weathered the worst of the global market decline, and the markets are forecasted to gradually improve over the next two years. We will continue our efforts to improve our performance as volumes return to more normal levels, and we expect our recent product launches to have a significant impact on revenue growth. Our challenge will be to manage cost as aggressively when the market recovers as we did when the market was in decline. I am confident we will enjoy improved financial results in the future."
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2009 fourth-quarter results can be accessed at 11 a.m. Eastern time on Tuesday, February 16, 2010, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium- and heavy-duty truck, agricultural and off-highway vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Forward-Looking Statements
Statements in this release that are not historical fact are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release. Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in automotive, medium- and heavy-duty truck or agricultural and off-highway vehicle production; disruption in the OEM supply chain due to bankruptcies; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.
STONERIDGE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Three Months For the Fiscal Years
Ended December 31, Ended December 31,
------------------ ------------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Audited)
Net Sales $133,785 $157,965 $475,152 $752,698
Costs and
Expenses:
Cost of goods
sold 105,754 128,194 387,167 586,411
Selling, general
and administrative 25,613 31,158 102,583 135,992
Goodwill impairment
charge - 65,175 - 65,175
Restructuring
charges 242 2,514 3,645 8,391
--- ----- ----- -----
Operating Income
(Loss) 2,176 (69,076) (18,243) (43,271)
Interest expense,
net 5,371 5,274 21,965 20,575
Equity in earnings
of investees (2,911) (2,284) (7,775) (13,490)
Other expense
(income), net 446 (395) 893 419
--- ---- --- ---
Loss Before
Income Taxes (730) (71,671) (33,326) (50,775)
Provision (benefit)
for income taxes (594) 36,723 (1,003) 46,752
---- ------ ------ ------
Net Loss $(136) $(108,394) $(32,323) $(97,527)
----- --------- -------- --------
Net Income
attributable
noncontrolling
interests to $82 $- $82 $-
--- --- --- ---
Net Loss
attributable to
Stoneridge, Inc.
and Subsidiaries $(218) $(108,394) $(32,405) $(97,527)
===== ========= ======== ========
Basic net loss per
share $(0.01) $(4.63) $(1.37) $(4.17)
====== ====== ====== ======
Basic weighted
average shares
outstanding 23,764 23,407 23,626 23,367
====== ====== ====== ======
Diluted net loss per
share $(0.01) $(4.63) $(1.37) $(4.17)
====== ====== ====== ======
Diluted weighted
average shares
outstanding 23,764 23,407 23,626 23,367
====== ====== ====== ======
STONERIDGE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
------------
2009* 2008
----- ----
ASSETS (Unaudited) (Audited)
Current Assets:
Cash and cash equivalents $91,907 $92,692
Accounts receivable, less reserves of
$2,350 and $4,204, respectively 81,272 96,535
Inventories, net 40,244 54,800
Prepaid expenses and other 17,247 10,564
------ ------
Total current assets 230,670 254,591
------- -------
Long-Term Assets:
Property, plant and equipment, net 76,991 87,701
Other Assets:
Investments and other, net 54,684 40,145
------ ------
Total long-term assets 131,675 127,846
------- -------
Total Assets $362,345 $382,437
======== ========
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $50,947 $50,719
Accrued expenses and other 36,827 43,485
------ ------
Total current liabilities 87,774 94,204
------ ------
Long-Term Liabilities:
Long-term debt 183,431 183,000
Other liabilities 17,263 13,475
------ ------
Total long-term liabilities 200,694 196,475
------- -------
Shareholders' Equity:
Preferred Shares, without par value,
authorized 5,000 shares, none issued - -
Common Shares, without par value,
authorized 60,000 shares, issued 25,301
and 24,772 shares and outstanding 25,000
and 24,665 shares, respectively, with
no stated value - -
Additional paid-in capital 158,748 158,039
Common Shares held in treasury, 301 and
107 shares, respectively, at cost (292) (129)
Accumulated deficit (91,560) (59,155)
Accumulated other comprehensive income
(loss) 2,669 (6,997)
----- ------
Total Stoneridge Inc. and Subsidiaries
shareholders’ equity 69,565 91,758
------ ------
Noncontrolling interest 4,312 -
----- ---
Total Liabilities and Shareholders' Equity $362,345 $382,437
======== ========
* Subject to modification for final purchase accounting entries from the
BCS acquisition.
STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Fiscal Years
Ended December 31,
------------------
2009 2008
---- ----
(Unaudited) (Audited)
OPERATING ACTIVITIES:
Net cash provided by operating
activities $13,824 $42,456
------- -------
INVESTING ACTIVITIES:
Capital expenditures (11,998) (24,573)
Proceeds from sale of fixed assets 201 1,652
Business acquisitions and other (5,967) (980)
------ ----
Net cash used for investing
activities (17,764) (23,901)
------- -------
FINANCING ACTIVITIES:
Repayments of long-term debt - (17,000)
Revolving credit facility borrowings 336 -
Share-based compensation activity - 1,322
Premiums related to early extinguishment
of debt - (553)
--- ----
Net cash provided by (used for)
financing activities 336 (16,231)
--- -------
Effect of exchange rate changes on
cash and cash equivalents 2,819 (5,556)
----- ------
Net change in cash and cash equivalents (785) (3,232)
Cash and cash equivalents at beginning
of period 92,692 95,924
------ ------
Cash and cash equivalents at end of period $91,907 $92,692
======= =======
SOURCE Stoneridge, Inc.
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