Attached files
| file | filename |
|---|---|
| 8-K - STONERIDGE INC | v210118_8k.htm |
Exhibit
99.1
FOR
IMMEDIATE RELEASE
STONERIDGE
REPORTS FOURTH-QUARTER 2010 RESULTS
Steadily
Increasing Volume Drives Net Sales up 20.0%; Net Income Increases by $4.6
million
Refinanced
Long-Term Bonds to Extend Maturities and Reduce Interest Rate
2011
Expected “to be Another Year of Significant Improvement in Financial
Results”
WARREN,
Ohio – February 4, 2011 – Stoneridge, Inc. (NYSE: SRI) today announced net sales
of $160.5 million and net income of $4.4 million, or $0.18 per diluted share,
for the fourth quarter ended December 31, 2010.
For the
2010 fourth quarter, net sales increased $26.7 million, or 20.0%, to $160.5
million, compared with $133.8 million for the fourth quarter of 2009, driven by
market demand as well as internal organic growth. The increase in net
sales was primarily caused by increased volume in the fourth quarter of 2010
compared with the fourth quarter of 2009 in the passenger car and light truck
markets in North America (8.2%) and medium- and heavy-duty truck markets in both
North America (29.3%) and Europe (78.1%).
Net
income for the fourth quarter of 2010 was $4.4 million, or $0.18 per diluted
share, compared with a net loss of $0.2 million, or $(0.01) per diluted share,
in the fourth quarter of 2009. The increase in net income was
primarily due to increased production volume, which was somewhat offset by
one-time non-recurring expenses mostly from the write-off of deferred financing
costs from the Company’s $183.0 million bond refinancing, which reduced net
income by $1.3 million, or $0.05 per diluted share, and costs associated with an
environmental remediation of the idled asset held for sale in Sarasota, Florida
in the amount of $0.9 million or $0.04 per diluted share.
On
October 4, 2010, Stoneridge completed the refinancing of $183.0 million in
unsecured 11.5% notes that would have matured on May 1,
2012. Stoneridge issued $175.0 million in new senior secured 9.5%
notes which mature October 15, 2017, and extended the maturity of the Asset
Based Lending facility until November 1, 2012. Expenses related to
the refinancing unfavorably affected net income in the fourth quarter of 2010 by
$1.3 million, or $0.05 per diluted share. Interest expense in the fourth quarter
was favorably affected by the refinancing by $0.6 million or $0.02 per diluted
share.
In
addition, on November 8, 2010, the Company executed a secondary share issuance
on behalf of shareholders affiliated with the Draime family (the “Selling
Shareholders”) of the sale of 10,173,285 Company Common Shares at $10.75 per
Common Share, less underwriting commissions and discounts. The Company did not
receive any proceeds from the offering and did not incur any third party
expenses.
As of
December 31, 2010, Stoneridge’s consolidated cash position was $72.0 million,
$19.9 million lower than its 2009 year-end balance of $91.9
million. The decrease was primarily the result of higher accounts
receivable balances from higher sales, as well as refinancing the Company’s
long-term debt and to reduce the outstanding balance by $8.0 million. The
Company’s Asset Based Lending facility remains undrawn.
For the
year ended December 31, 2010, net sales were $635.2 million compared with $475.2
million for 2009; an increase of $160.0 million or 33.7%. Net income
for 2010 improved to $10.6 million, or $0.44 per diluted share, compared with a
net loss of $32.4 million, or $(1.37) per diluted share, in 2009.
-more-
2
Outlook
“Our
markets in the fourth quarter continued the trend of sequential and
year-over-year improvement resulting in increased sales. Volume improvements and
our cost control initiatives benefited the fourth quarter and led to improved
financial results compared with the third quarter of 2010. Our fourth
quarter results were also affected by expenses related to the previously
announced refinancing and costs associated with an environmental remediation at
our asset-held-for-sale Sarasota, Florida facility,” said John C. Corey,
president and chief executive officer. “We are closing out 2010 with
significant improvement over the prior year. We expect 2011 sales to
continue the favorable trend which began in 2010 and consequently expect our
2011 sales to be in the range of $720.0 million to $750.0 million. Our 2011
sales will be the result of both increasing sales volumes and new business
awards. We expect 2011 to be another year of significant improvement
in financial results.”
Conference Call on the
Web
A live
Internet broadcast of Stoneridge’s conference call regarding 2010 fourth-quarter
results can be accessed at 11 a.m. Eastern time on Friday, February 4, 2011, 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 medium- and heavy-duty truck, automotive and 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 medium- and heavy-duty truck,
automotive 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.
For more
information, contact:
Kenneth
A. Kure, Corporate Treasurer and Director of Finance
330/856-2443
-more-
3
STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
|
For
the Quarters Ended
|
For
the Years Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
|
Net
Sales
|
$ | 160,454 | $ | 133,785 | $ | 635,226 | $ | 475,152 | ||||||||
|
Costs
and Expenses:
|
||||||||||||||||
|
Cost
of goods sold
|
124,796 | 105,754 | 490,391 | 387,167 | ||||||||||||
|
Selling,
general and administrative
|
30,006 | 25,855 | 122,032 | 106,228 | ||||||||||||
|
Operating
Income (Loss)
|
5,652 | 2,176 | 22,803 | (18,243 | ) | |||||||||||
|
Interest
expense, net
|
4,824 | 5,371 | 21,780 | 21,965 | ||||||||||||
|
Equity
in earnings of investees
|
(4,160 | ) | (2,911 | ) | (10,346 | ) | (7,775 | ) | ||||||||
|
Loss
on early extinguishment of debt
|
1,346 | - | 1,346 | - | ||||||||||||
|
Other
expense (income), net
|
(140 | ) | 446 | (1,280 | ) | 893 | ||||||||||
|
Income
(Loss) Before Income Taxes
|
3,782 | (730 | ) | 11,303 | (33,326 | ) | ||||||||||
|
Provision
(benefit) for income taxes
|
(539 | ) | (594 | ) | 678 | (1,003 | ) | |||||||||
|
Net
Income (Loss)
|
4,321 | (136 | ) | 10,625 | (32,323 | ) | ||||||||||
|
Net
Income (Loss) Attributable to Noncontrolling Interest
|
(105 | ) | 82 | (184 | ) | 82 | ||||||||||
|
Net
Income (Loss) Attributable to Stoneridge, Inc. and Subsidiaries
|
$ | 4,426 | $ | (218 | ) | $ | 10,809 | $ | (32,405 | ) | ||||||
|
Basic
Net Income (Loss) Per Share
|
$ | 0.18 | $ | (0.01 | ) | $ | 0.45 | $ | (1.37 | ) | ||||||
|
Basic
Weighted Average Shares Outstanding
|
23,967 | 23,764 | 23,946 | 23,626 | ||||||||||||
|
Diluted
Net Income (Loss) Per Share
|
$ | 0.18 | $ | (0.01 | ) | $ | 0.44 | $ | (1.37 | ) | ||||||
|
Diluted
Weighted Average Shares Outstanding
|
24,350 | 23,764 | 24,333 | 23,626 | ||||||||||||
-more-
4
STONERIDGE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in
thousands)
|
December
31,
|
December
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
(Unaudited)
|
(Audited)
|
||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 71,974 | $ | 91,907 | ||||
|
Accounts
receivable, less reserves of $2,013 and $2,350,
respectively
|
102,600 | 81,272 | ||||||
|
Inventories,
net
|
51,828 | 40,244 | ||||||
|
Prepaid
expenses and other current assets
|
20,443 | 19,320 | ||||||
|
Total
current assets
|
246,845 | 232,743 | ||||||
|
Long-Term
Assets:
|
||||||||
|
Property,
plant and equipment, net
|
76,576 | 76,991 | ||||||
|
Investments
and other long-term assets, net
|
60,184 | 54,864 | ||||||
|
Total
long-term assets
|
136,760 | 131,855 | ||||||
|
Total
Assets
|
$ | 383,605 | $ | 364,598 | ||||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Accounts
payable
|
$ | 68,341 | $ | 50,947 | ||||
|
Accrued
expenses and other current liabilities
|
44,442 | 38,900 | ||||||
|
Total
current liabilities
|
112,783 | 89,847 | ||||||
|
Long-Term
Liabilities:
|
||||||||
|
Long-term
debt
|
167,903 | 183,431 | ||||||
|
Other
long-term liabilities
|
14,831 | 17,263 | ||||||
|
Total
long-term liabilities
|
182,734 | 200,694 | ||||||
|
Shareholders'
Equity:
|
||||||||
|
Preferred
Shares, without par value, authorized 5,000 shares, none
issued
|
- | - | ||||||
|
Common
Shares, without par value, authorized 60,000 shares, issued 25,994 and
25,301
|
||||||||
|
shares
and outstanding 25,393 and 25,000 shares, respectively, with no stated
value
|
- | - | ||||||
|
Additional
paid-in capital
|
161,587 | 158,748 | ||||||
|
Common
Shares held in treasury, 602 and 301 shares, respectively, at
cost
|
(1,118 | ) | (292 | ) | ||||
|
Accumulated
deficit
|
(80,751 | ) | (91,560 | ) | ||||
|
Accumulated
other comprehensive income
|
4,062 | 2,669 | ||||||
|
Total
Stoneridge Inc. and Subsidiaries shareholders’ equity
|
83,780 | 69,565 | ||||||
|
Noncontrolling
interest
|
4,308 | 4,492 | ||||||
|
Total
shareholders' equity
|
88,088 | 74,057 | ||||||
|
Total
Liabilities and Shareholders' Equity
|
$ | 383,605 | $ | 364,598 | ||||
-more-
5
STONERIDGE,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
For
the Years Ended
|
||||||||
|
December
31,
|
||||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
(Audited)
|
|||||||
|
OPERATING
ACTIVITIES:
|
||||||||
|
Net
cash provided by operating activities
|
$ | 13,851 | $ | 13,824 | ||||
|
INVESTING
ACTIVITIES:
|
||||||||
|
Capital
expenditures
|
(18,574 | ) | (11,998 | ) | ||||
|
Proceeds
from sale of fixed assets
|
56 | 201 | ||||||
|
Business
acquisitions and other
|
- | (5,967 | ) | |||||
|
Net
cash used for investing activities
|
(18,518 | ) | (17,764 | ) | ||||
|
FINANCING
ACTIVITIES:
|
||||||||
|
Extinguishment
of senior notes
|
(183,000 | ) | - | |||||
|
Proceeds
from issuance of senior secured notes
|
170,625 | - | ||||||
|
Proceeds
from issuance of other debt
|
690 | - | ||||||
|
Repayments
of other debt
|
(278 | ) | (55 | ) | ||||
|
Revolving
credit facility borrowings
|
8,389 | 1,274 | ||||||
|
Revolving
credit facility payments
|
(8,335 | ) | (883 | ) | ||||
|
Other
financing costs
|
(1,365 | ) | - | |||||
|
Repurchase
of shares to satisfy employee tax withholding
|
(826 | ) | - | |||||
|
Excess
tax benefits from share-based compensation expense
|
395 | - | ||||||
|
Premiums
related to early extinguishment of debt
|
(324 | ) | - | |||||
|
Net
cash provided by (used for) financing activities
|
(14,029 | ) | 336 | |||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
(1,237 | ) | 2,819 | |||||
|
Net
change in cash and cash equivalents
|
(19,933 | ) | (785 | ) | ||||
|
Cash
and cash equivalents at beginning of period
|
91,907 | 92,692 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 71,974 | $ | 91,907 | ||||
###