Stoneridge Reports Fourth-Quarter 2013 Results

WARREN, Ohio, March 6, 2014 /PRNewswire/ -- Stoneridge, Inc. (NYSE: SRI) today announced financial results for the fourth quarter ended December 31, 2013.

Fourth-quarter 2013 net sales were $235.8 million, an increase of $13.1 million, or 5.9%, compared with $222.7 million for the fourth quarter of 2012. The increase in the current quarter's net sales was primarily due to higher sales in the Company's Control Devices and Electronics business segments.

Net income for the fourth quarter of 2013 was $0.2 million, or $0.01 per diluted share, compared with net income of $2.6 million, or $0.10 per diluted share, in the fourth quarter of 2012.  The decrease in net income was primarily due to lower sales to a North American commercial vehicle customer, sales of less profitable products in Brazil and higher costs for the Wiring business due to continued volume fluctuations.  For the full year ended December 31, 2013, net income increased by $9.7 million, or 180%, to $15.1 million from $5.4 million in the prior year.  For the year, earnings per diluted share were $0.56, an increase of $0.36 over the prior year's earnings of $0.20 per diluted share.

As of December 31, 2013, Stoneridge's consolidated cash position was $62.8 million, an increase of $18.3 million from December 31, 2012. The Company's Total Debt/Adjusted EBITDA ratio continues to improve to 2.7x compared with 2.9x at the end of 2012.

John Corey, President and Chief Executive Officer, commented, "Our 2013 consolidated sales came in at the low end of our original range.  PST's sales were lower than expected due to continued weakness in the Brazilian economy and currency, higher relative sales of audio products compared with aftermarket products, and a quality hold instituted by management to protect the brand position and image due to a component issue."

Corey continued, "As we indicated in our press release of February 5, 2014, our Wiring business continued to experience higher costs in the fourth quarter caused by changes to production schedules, as the commercial vehicle market and customer performance have not recovered as expected. We continue to rebalance our wiring operations to adjust for the volume impacts and seasonality."

Corey added, "We finished the year with a strong balance sheet, as positive cash flow continues to be one of our primary goals. Our cash and cash equivalents balance at year end was $62.8 million, an increase of $18.3 million or 40.8% above December 31, 2012."

Corey commented, "Looking at the year in total, we had good performance from our Control Devices and Electronics divisions. PST was impacted to a degree by the economic weakness in Brazil and currency devaluation, and Wiring underperformed as we continued to adjust to customers' volume being lower than projections resulting in added cost. We expect the Control Devices and Electronics segments to continue to perform well in 2014 and see gradual recovery in the Brazilian economy and improving financial performance in our Wiring business."

A Non-GAAP Financial Measure
This press release includes references to Adjusted EBITDA and Total Debt/Adjusted Ratio.  Adjusted EBITDA is an unaudited financial measure of performance which is not calculated in accordance with generally accepted accounting principles, or GAAP. Adjusted EBITDA represents the sum of net income, income taxes, interest expense, depreciation, amortization, business realignment and certain purchase accounting costs. Adjusted EBITDA is used internally when evaluating our operating performance and, we believe, allows an investor to make a more meaningful comparison between our core business operating results over different periods of time, as well as with those of other similar companies. Management believes that Adjusted EBITDA, when viewed with the Company's results under GAAP and the accompanying reconciliation, provides useful information about operating performance.  In addition, management believes that Adjusted EBITDA permits investors to gain an understanding of the factors and trends affecting our ongoing cash earnings.  However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as indicators of operating performance or liquidity.  Adjusted EBITDA has been presented as a supplemental disclosure because EBITDA is a widely used measure of performance and basis for valuation.  A reconciliation of net income to Adjusted EBITDA is included in the financial tables below.

Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2013 fourth-quarter results can be accessed at 10 a.m. Eastern time on Thursday, March 6, 2014, 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 commercial vehicle, automotive and agricultural, motorcycle 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 volume change in commercial vehicle, automotive, agricultural, motorcycle 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.

SOURCE Stoneridge, Inc.