0001043337FALSE00010433372023-08-022023-08-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 2023
STONERIDGE, INC.
(Exact Name of Registrant as Specified in its Charter)
Ohio001-1333734-1598949
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
39675 MacKenzie Drive, Suite 400, Novi, Michigan 48377
(Address of principal executive offices, and Zip Code)
(248) 489-9300
Registrant’s Telephone Number, Including Area Code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, without par valueSRINew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


ITEM 2.02    Results of Operations and Financial Condition.
On August 2, 2023, Stoneridge, Inc. (the “Company”) issued a press release announcing its results for the second quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1. On August 3, 2023, members of the Company’s management will hold a second quarter 2023 earnings conference call to discuss the Company’s financial results and the presentation attached hereto as Exhibit 99.2, will accompany management’s comments.
The press release and earnings conference call presentation contain certain non-GAAP financial measures, including Adjusted Sales, Adjusted Gross Profit and Margin, Adjusted Operating Income (Loss) and Margin, Adjusted Income Before Tax, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share (“Adjusted EPS”), Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income Tax Expense, Net Debt, Adjusted Net Debt and Adjusted Cash (collectively, the “Non-GAAP Financial Measures”). Management believes that the presentation of the Non-GAAP Financial Measures used in the press release and earnings conference call presentation are useful to both management and investors in their analysis of the Company’s financial position, results of operations and expected results of operations because the Non-GAAP Financial Measures facilitate a period to period comparison of operating results by excluding significant unusual, non-recurring items in 2023 and 2022. For 2023, these items relate to the sales from spot purchase recoveries, after-tax and pre-tax business realignment costs, pre-tax gain on disposal of fixed assets, pre-tax environmental remediation costs and adjustments for debt compliance calculations. For 2022, these items relate to pre-tax business realignment costs, pre-tax Brazilian indirect tax credits, net and adjustments for debt compliance calculations. These non-GAAP financial measures, however, should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures used by the Company may not be comparable to non-GAAP financial measures used by other companies. Adjusted Sales, Adjusted Gross Profit and Margin, Adjusted Operating Income (Loss) and Margin, Adjusted Income Before Tax, Adjusted Net Income (Loss), Adjusted EPS, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income Tax Expense, Net Debt, Adjusted Net Debt and Adjusted Cash should not be considered a substitute for Sales, Gross Profit, Operating Income (Loss), Income (Loss) Before Tax, Net Income (Loss), Earnings (Loss) per Share, Income Tax Expense, Debt or Cash and Cash Equivalents prepared in accordance with GAAP.
ITEM 7.01    Regulation FD Disclosure.
The information set forth in Item 2.02 above is hereby incorporated herein by reference.
The information in this report, including the press release and the earnings conference call presentation furnished as Exhibits 99.1 and 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. In addition, the exhibits furnished herewith contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibits.
ITEM 9.01    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit No.Description
104Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Stoneridge, Inc.
Date: August 2, 2023/s/ Matthew R. Horvath
Matthew R. Horvath
Chief Financial Officer and Treasurer
(Principal Financial Officer)



Exhibit 99.1
tm2229541d1_ex99-1img01a.jpg

FOR IMMEDIATE RELEASE
Stoneridge Reports Second Quarter 2023 Results
ADVANCING STRATEGIC PRIORITIES WHILE DELIVERING 10%+ QUARTER TO QUARTER SALES GROWTH AND 400+ BASIS POINT GROSS MARGIN EXPANSION

GUIDING TO THE HIGH END OF PREVIOUSLY PROVIDED ADJUSTED SALES, ADJUSTED GROSS MARGIN AND ADJUSTED OPERATING MARGIN RANGES

2023 Second Quarter Results
•Sales of $266.8 million
•Adjusted sales of $262.4 million
•Gross profit of $60.5 million
•Adjusted gross profit of $60.9 million (23.2% of adjusted sales)
•Operating income of $4.3 million
•Adjusted operating income of $6.2 million (2.4% of adjusted sales)
•Adjusted EBITDA of $11.9 million (4.5% of adjusted sales)
◦Non-operating foreign currency and equity investment expense unfavorably impacted adjusted EBITDA in the quarter by $(2.7) million. Excluding these non-operating items adjusted EBITDA was $14.7 million (5.6% of adjusted sales).
•Loss per share (“EPS”) of $(0.11)
•Adjusted loss per share of $(0.05)
◦Non-operating foreign currency and equity investment expense unfavorably impacted adjusted EPS in the quarter by ~$(0.08). Excluding these non-operating items adjusted EPS was ~$0.03.
Reaffirming 2023 Full-year Guidance
•Expecting operating performance to be at the high end of the previously provided ranges
◦Adjusted sales of $960.0 - $990.0 million
◦Adjusted gross margin of 20.5% - 21.25%
◦Adjusted operating margin of 1.5% - 2.25%
•Reaffirming previously provided guidance ranges for adjusted EPS, adjusted EBITDA and adjusted tax expense driven by unfavorable impact of year-to-date non-operating expenses
◦Adjusted EPS of $(0.10) - $0.10 (break-even midpoint)
▪Incremental non-operating expenses reduced adjusted EPS guidance by ~$(0.12) in the first half of the year
◦Adjusted EBITDA margin of 5.3% - 5.9% ($50.9 - $58.4 million)
▪Incremental non-operating expenses reduced adjusted EBITDA by $(4.0) million in the first half of the year
◦Adjusted tax expense of $3.0 to $4.0 million
NOVI, Mich. – August 2, 2023 – Stoneridge, Inc. (NYSE: SRI) today announced financial results for the second quarter ended June 30, 2023, with sales of $266.8 million and loss per share of $(0.11). Adjusted sales for the
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second quarter were $262.4 million and adjusted EPS was $(0.05). Sales were adjusted to normalize the impact of electronic component spot buys recovered from customers of $4.4 million for the second quarter of 2023. In addition, financial performance was adjusted in relation to certain business realignment costs. The Company expects that these realignment actions, which are primarily related to the consolidation of global functions, will streamline the organization and improve operational efficiency and overall cost structure. The exhibits attached hereto provide reconciliation detail on this and all other normalizing adjustments of Non-GAAP financial measures used in this press release.
For the second quarter of 2023, Stoneridge reported gross profit of $60.5 million and adjusted gross profit of $60.9 million (23.2% of adjusted sales). Operating income was $4.3 million and adjusted operating income was $6.2 million (2.4% of adjusted sales). Adjusted EBITDA was $11.9 million (4.5% of adjusted sales). Relative to the first quarter of 2023, adjusted gross margin improved by 470 basis points, adjusted operating margin improved by 390 basis points and adjusted EBITDA margin improved by 300 basis points on adjusted sales growth of 13.0%.
Jim Zizelman, president and chief executive officer, commented, “During the second quarter we drove strong top-line growth and significant margin improvement resulting in financial performance that exceeded the expectations we outlined on the first quarter earnings call. As expected, we have completed the majority of our customer pricing negotiations, which led to better performance within the quarter as well as an improved operating outlook for the remainder of the year.”
Zizelman continued, “Today we are announcing new business that encompasses both the extension of an existing front-axle disconnect actuator program and the awarding of the next generation program. The extension and new award secure our strategic position on high demand light trucks and SUVs through 2032. These programs are expected to generate approximately $20 million in peak annual revenue. This award demonstrates our capabilities in advanced actuation devices and continued expansion in 4x4 applications. Similarly, this award showcases our ability to apply technologies across different drivetrain types as this product is similar to the drive unit clutch actuator that we discussed last quarter launching on the hybrid-electric Corvette E-Ray.”
Zizelman concluded, “In addition, we are proud to support Kenworth as they now offer MirrorEye as an option on their T680 truck providing improved fuel economy, enhanced driver visibility and the ability to track the trailer around a corner or while backing through any driving environment. This industry leading and innovative new platform is the first MirrorEye OEM solution offered in North America. We remain focused on executing on our long-term growth strategy focused on drivetrain agnostic, platform-based advanced technologies in each of our primary segments and end markets.”
Second Quarter in Review
Control Devices sales of $93.1 million increased by 9.5% relative to sales in the second quarter of 2022. This increase was primarily due to higher sales in our North America passenger vehicle end market and China end markets. Second quarter adjusted operating margin of 5.9% improved by 100 basis points relative to the second quarter of 2022, primarily due to higher contribution from higher sales slightly offset by higher D&D spend.
Electronics adjusted sales of $163.9 million increased by 42.4% relative to sales in the second quarter of 2022. This increase was primarily driven by higher sales volumes in our Europe and North America commercial vehicle end markets and negotiated price increases. Second quarter adjusted operating margin of 5.4% improved by 760 basis points relative to the second quarter of 2022, primarily due to higher contribution from higher sales, including negotiated price increases, and relatively lower material costs. This was partially offset by higher labor costs and the adverse impact of foreign exchange fluctuations.
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Stoneridge Brazil sales of $14.9 million increased by 11.7% relative to sales in the second quarter of 2022, primarily due to higher sales in OEM products and tracking devices. Second quarter operating margin of 6.0% improved by approximately 300 basis points relative to adjusted operating margin the second quarter of 2022, primarily due to contribution from higher sales partially offset by higher SG&A costs.
Relative to the first quarter of 2023, Control Devices sales increased by 7.4%. This increase was primarily due to higher sales in the North America passenger vehicle end market and China end markets driven by production stability relative to the first quarter. Second quarter adjusted operating margin increased by 420 basis points relative to the first quarter of 2023, primarily due to lower direct material costs driven by favorable sales mix and lower SG&A spend.
Relative to the first quarter of 2023, Electronics adjusted sales increased by 16.6%. This increase was primarily due to continued strong demand in our commercial vehicle end markets and incremental pricing as a result of completed contract negotiations. Second quarter adjusted operating margin increased by 410 basis points relative to the first quarter of 2023, primarily due to gross margin improvement as a result of incremental pricing, partially offset by higher D&D spend primarily related to program launch support. The Company expects D&D spend to return to normalized levels by the fourth quarter of 2023 as program launches mature.
Relative to the first quarter of 2023, Stoneridge Brazil sales increased by 4.6%. This increase was primarily due higher sales in our aftermarket products partially offset by lower OEM product sales. Second quarter operating margin decreased by 340 basis points relative to the first quarter of 2023, primarily due to higher overhead and SG&A spend.
Cash and Debt Balances
As of June 30, 2023, Stoneridge had cash and cash equivalents balances totaling $34.7 million. Total debt as of June 30, 2023 was $171.6 million. Per the terms of the existing Revolving Credit Facility, the Company reported a net debt to trailing twelve-month EBITDA compliance ratio of 2.97x, a 0.73x improvement relative to the first quarter of 2023. The Company remains in compliance with the Revolving Credit Facility and expects to remain in compliance for the remainder of the year as financial performance is expected to continue to improve resulting in reduced leverage ratios. The Company expects to refinance the existing credit facility prior to the issuance of the year-end 2023 financial statements.
2023 Outlook
The Company is expecting operating performance to be at the high end of the previously guided ranges for adjusted sales guidance of $960.0 million to $990.0 million, adjusted gross margin guidance of 20.5% to 21.25% and adjusted operating margin guidance of 1.5% to 2.25%.
Partially offsetting improved operating performance expectations, the Company noted year-to-date non-operating expenses of $4.0 million or $0.12 adjusted EPS. As a result of unfavorable non-operating expenses, including foreign currency and equity investment related expenses, the Company reaffirmed full-year adjusted earnings per share guidance of $(0.10) to $0.10, adjusted EBITDA guidance of $50.9 million to $58.4 million, or 5.3% - 5.9%, of adjusted sales and adjusted tax expense guidance of $3.0 million - $4.0 million.
Matt Horvath, chief financial officer, commented “Second quarter performance exceeded our previously provided expectations across each of our key financial metrics, putting us in a good position to achieve our full-year 2023 guidance. As a result of improved operating performance to date and an improved outlook for the remainder of the year on continued strong sales, we are guiding to the high end of the previously provided guidance ranges for adjusted revenue, gross margin and operating margin. In addition, we are reaffirming our previously provided full-year guidance ranges for adjusted EPS, EBITDA and tax expense, primarily as a result of improved operating performance partially offset by below-the-line, non-operating costs recognized to date of
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approximately $4.0 million or $0.12 adjusted EPS. Stoneridge remains well positioned to continue to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation.”
Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2023 second quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, August 3, 2023, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and manufacturer of highly engineered electrical and electronic systems, components and modules for the automotive, commercial, off-highway and agricultural vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:
•the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;
•fluctuations in the cost and availability of key materials (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and components and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
•global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries;
•our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
•the reduced purchases, loss or bankruptcy of a major customer or supplier;
•the costs and timing of business realignment, facility closures or similar actions;
•a significant change in automotive, commercial, off-highway or agricultural vehicle production;
•competitive market conditions and resulting effects on sales and pricing;
•foreign currency fluctuations and our ability to manage those impacts;
•customer acceptance of new products;
•our ability to successfully launch/produce products for awarded business;
•adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products;
•our ability to protect our intellectual property and successfully defend against assertions made against us;
•liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
•labor disruptions at our facilities or at any of our significant customers or suppliers;
•business disruptions due to natural disasters or other disasters outside of our control;
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•the ability to refinance our existing revolving Credit Facility on a timely basis prior to its June 5, 2024 maturity;
•the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;
•capital availability or costs, including changes in interest rates or market perceptions;
•the failure to achieve the successful integration of any acquired company or business;
•risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and
•the items described in Part I, Item IA (“Risk Factors”) in the Company’s 2022 Form 10-K.
The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company’s financial results that 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 measures at the end of this press release. The provision of these non-GAAP financial measures for 2023 and 2022 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that adjusted sales, adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense (benefit), adjusted tax rate, adjusted net debt and adjusted cash are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods.
Adjusted sales, adjusted gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense (benefit), adjusted tax rate, adjusted net debt and adjusted cash should not be considered in isolation or as a substitute for sales, gross profit, operating income (loss), income (loss) before tax, net loss, earnings (loss) per share, tax expense (benefit), tax rate, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.
For more information, contact Kelly K. Harvey, Director Investor Relations (Kelly.Harvey@Stoneridge.com).

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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)June 30,
2023		December 31,
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$34,705 $54,798 
Accounts receivable, less reserves of $1,132 and $962, respectively185,296 158,155 
Inventories, net175,305 152,580 
Prepaid expenses and other current assets43,277 44,018 
Total current assets438,583 409,551 
Long-term assets:
Property, plant and equipment, net106,227 104,643 
Intangible assets, net46,638 45,508 
Goodwill34,870 34,225 
Operating lease right-of-use asset12,225 13,762 
Investments and other long-term assets, net46,954 44,416 
Total long-term assets246,914 242,554 
Total assets$685,497 $652,105 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit facility$171,597 $— 
Current portion of debt— 1,450 
Accounts payable136,457 110,202 
Accrued expenses and other current liabilities75,579 66,040 
Total current liabilities383,633 177,692 
Long-term liabilities:
Revolving credit facility— 167,802 
Deferred income taxes7,975 8,498 
Operating lease long-term liability8,967 10,594 
Other long-term liabilities7,284 6,577 
Total long-term liabilities24,226 193,471 
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued— — 
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,522 and 27,341 shares outstanding at June 30, 2023 and December 31, 2022, respectively, with no stated value— — 
Additional paid-in capital226,713 232,758 
Common Shares held in treasury, 1,444 and 1,625 shares at June 30, 2023 and December 31, 2022, respectively, at cost(44,367)(50,366)
Retained earnings191,314 201,692 
Accumulated other comprehensive loss(96,022)(103,142)
Total shareholders' equity277,638 280,942 
Total liabilities and shareholders' equity$685,497 $652,105 
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
June 30,		Six months ended
June 30,
(in thousands, except per share data)2023202220232022
Net sales$266,814 $220,936 $508,139 $441,994 
Costs and expenses:
Cost of goods sold206,326 182,372 404,849 361,987 
Selling, general and administrative33,491 28,938 63,354 56,337 
Design and development22,666 15,554 39,634 32,582 
Operating income (loss)4,331 (5,928)302 (8,912)
Interest expense, net3,120 1,217 5,866 3,003 
Equity in loss of investee329 377 500 458 
Other expense (income), net2,387 (596)3,535 735 
Loss before income taxes(1,505)(6,926)(9,599)(13,108)
Provision for income taxes1,487 413 779 1,906 
Net loss$(2,992)$(7,339)$(10,378)$(15,014)
Loss per share:
Basic$(0.11)$(0.27)$(0.38)$(0.55)
Diluted$(0.11)$(0.27)$(0.38)$(0.55)
Weighted-average shares outstanding:
Basic27,45227,26927,40027,234
Diluted27,45227,26927,40027,234
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, (in thousands)20232022
OPERATING ACTIVITIES:
Net loss$(10,378)$(15,014)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation13,161 13,618 
Amortization, including accretion and write-off of deferred financing costs4,004 4,323 
Deferred income taxes(3,782)(1,868)
Loss of equity method investee500 458 
Gain on sale of fixed assets(854)(95)
Share-based compensation expense1,271 2,834 
Excess tax deficiency related to share-based compensation expense66 259 
Gain on settlement of net investment hedge— (3,716)
Changes in operating assets and liabilities:
Accounts receivable, net(28,100)(15,481)
Inventories, net(23,142)(11,864)
Prepaid expenses and other assets3,313 (15,538)
Accounts payable27,069 16,577 
Accrued expenses and other liabilities12,184 7,689 
Net cash used for operating activities(4,688)(17,818)
INVESTING ACTIVITIES:
Capital expenditures, including intangibles(18,025)(14,890)
Proceeds from sale of fixed assets1,729 140 
Proceeds from settlement of net investment hedge— 3,820 
Investment in venture capital fund, net— (450)
Net cash used for investing activities(16,296)(11,380)
FINANCING ACTIVITIES:
Revolving credit facility borrowings42,000 11,190 
Revolving credit facility payments(38,068)(16,500)
Proceeds from issuance of debt16,402 19,163 
Repayments of debt(18,086)(20,358)
Earn-out consideration cash payment— (6,276)
Repurchase of Common Shares to satisfy employee tax withholding(1,325)(699)
Net cash provided by (used for) financing activities923 (13,480)
Effect of exchange rate changes on cash and cash equivalents(32)(2,177)
Net change in cash and cash equivalents(20,093)(44,855)
Cash and cash equivalents at beginning of period54,798 85,547 
Cash and cash equivalents at end of period$34,705 $40,692 
Supplemental disclosure of cash flow information:
Cash paid for interest, net$5,622 $3,022 
Cash paid for income taxes, net$5,927 $3,936 
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Regulation G Non-GAAP Financial Measure Reconciliations
Reconciliation to US GAAP
Exhibit 1 - Reconciliation of Adjusted EPS
(USD in millions, except EPS)Q2 2023Q2 2023 EPS
Net Loss$(3.0)$(0.11)
Add: After-Tax Business Realignment Costs1.6 0.06 
Adjusted Net Loss$(1.4)$(0.05)


Exhibit 2 – Reconciliation of Adjusted EBITDA
(USD in millions)Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023
Income (Loss) Before Tax$(6.9)$1.7 $0.7 $(8.1)$(1.5)
Interest expense, net1.2 1.8 2.2 2.7 3.1 
Depreciation and amortization8.5 8.3 8.2 8.3 8.4 
EBITDA$2.8 $11.8 $11.1 $3.0 $10.0 
Add: Pre-Tax Business Realignment Costs— 0.3 — 1.3 1.9 
Less: Pre-Tax Gain on Disposal of Fixed Assets— — — (0.8)— 
Add: Pre-Tax Environmental Remediation Costs— — — 0.1 — 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.6)— — — — 
Adjusted EBITDA$2.3 $12.1 $11.1 $3.6 $11.9 

Exhibit 3 – Adjusted Gross Profit

(USD in millions)Q1 2023Q2 2023
Gross Profit$42.8 $60.5 
Add: Pre-Tax Business Realignment Costs0.2 0.5 
Adjusted Gross Profit$43.0 $60.9 

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Exhibit 4 - Adjusted Operating Loss

(USD in millions)Q1 2023Q2 2023
Operating Income (Loss)$(4.0)$4.3 
Add: Pre-Tax Business Realignment Costs1.3 1.9 
Less: Pre-Tax Gain on Disposal of Fixed Assets(0.8)— 
Add: Pre-Tax Environmental Remediation Costs0.1 — 
Adjusted Operating Income (Loss)$(3.4)$6.2 

Exhibit 5 – Segment Adjusted Operating Income (Loss)
Reconciliation of Control Devices Adjusted Operating Income
(USD in millions)Q2 2022Q1 2023Q2 2023
Control Devices Operating Income$4.1 $2.1 $5.1 
Less: Pre-Tax Gain on Disposal of Fixed Assets— (0.8)— 
Add: Pre-Tax Environmental Remediation Costs— 0.1 — 
Add: Pre-Tax Business Realignment Costs— — 0.4 
Control Devices Adjusted Operating Income$4.1 $1.4 $5.5 

Reconciliation of Electronics Adjusted Operating Income (Loss)
(USD in millions)Q2 2022Q1 2023Q2 2023
Electronics Operating Income (Loss)$(2.5)$1.4 $7.4 
Add: Pre-Tax Business Realignment Costs— 0.3 1.3 
Electronics Adjusted Operating Income (Loss)$(2.5)$1.7 $8.8 

Reconciliation of Stoneridge Brazil Adjusted Operating Income
(USD in millions)Q2 2022Q1 2023Q2 2023
Stoneridge Brazil Operating Income$1.0 $1.3 $0.9 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.6)— — 
Stoneridge Brazil Adjusted Operating Income$0.4 $1.3 $0.9 

10

Exhibit 6 – Reconciliation of Adjusted Sales
(USD in millions)Q2 2022Q1 2023Q2 2023
Sales$220.9 $241.3 $266.8 
Less: Sales from Spot Purchase Recoveries(15.3)(9.1)(4.4)
Adjusted Sales$205.7 $232.2 $262.4 

Exhibit 7 – Reconciliation of Electronics Adjusted Sales

(USD in millions)Q2 2022Q1 2023Q2 2023
Electronics Sales$130.4 $149.6 $168.3 
Less: Sales from Spot Purchase Recoveries(15.3)(9.1)(4.4)
Electronics Adjusted Sales$115.1 $140.5 $163.9 

Exhibit 8 – Reconciliation of Adjusted Tax Rate


(USD in millions)Q2 2023Tax Rate
Loss Before Tax$(1.5)
Add: Pre-Tax Business Realignment Costs1.9 
Adjusted Income Before Tax$0.4 
Income Tax Expense1.5 (98.8)%
Add: Tax Impact from Pre-Tax Adjustments0.4 
Adjusted Income Tax Expense$1.8 nm


11

Exhibit 9 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023
Income (Loss) Before Tax$(6.9)$1.7 $0.7 $(8.1)$(1.5)
Interest Expense, net1.2 1.8 2.2 2.7 3.1 
Depreciation and Amortization8.5 8.3 8.2 8.3 8.4 
EBITDA$2.8 $11.8 $11.1 $3.0 $10.0 
Compliance adjustments:
Add: Adjustments from Foreign Currency Impact(0.4)3.0 2.8 1.4 3.1 
Add: Extraordinary, Non-recurring or Unusual items0.4 — 0.1 0.2 — 
Add: Cash Restructuring Charges— 0.6 0.2 1.4 0.5 
Add: Adjustment to Autotech Investments0.4 — 0.4 0.2 0.3 
Adjusted EBITDA (Compliance)$3.3 $15.5 $14.6 $6.1 $13.9 
Adjusted TTM EBITDA (Compliance)$39.5 $50.2 
Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)Q1 2023Q2 2023
Total Cash and Cash Equivalents$35.2 $34.7 
Less: 35% Cash Foreign Locations(11.0)(10.4)
Total Adjusted Cash (Compliance)$24.2 $24.3 
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)Q1 2023Q2 2023
Total Debt$168.8 $171.6 
Outstanding Letters of Credit1.6 1.6 
Total Adjusted Debt (Compliance)$170.5 $173.2 
Adjusted Net Debt (Compliance)$146.3 $148.9 
Compliance Leverage Ratio (Net Debt / TTM EBITDA)3.70x2.97x

12
Q2 2023 Results August 3, 2023 Exhibit 99.2

 
2 Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the ability of our suppliers to supply us parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output; fluctuations in the cost and availability of key materials (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and components and our ability to offset cost increases through negotiated price increases with our customers or other cost actions, as necessary; global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries; our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions; the reduced purchases, loss or bankruptcy of a major customer or supplier; the costs and timing of business realignment, facility closures or similar actions; a significant change in automotive, commercial, off-highway or agricultural vehicle production; competitive market conditions and resulting effects on sales and pricing; foreign currency fluctuations and our ability to manage those impacts; customer acceptance of new products; our ability to successfully launch/produce products for awarded business; adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products; labor disruptions at Stoneridge’s facilities or at any of Stoneridge’s significant customers or suppliers; the ability to refinance our existing revolving Credit Facility on a timely basis to its June 5, 2024 maturity; the amount of Stoneridge’s indebtedness and the restrictive covenants contained in the agreements governing its indebtedness, including its revolving credit facility; capital availability or costs, including changes in interest rates or market perceptions; the occurrence or non-occurrence of circumstances beyond Stoneridge’s control; and the items described in “Risk Factors” and other uncertainties or risks discussed in Stoneridge’s periodic and current reports filed with the Securities and Exchange Commission. Important factors that could cause the performance of the commercial vehicle and automotive industry to differ materially from those in the forward- looking statements include factors such as (1) continued economic instability or poor economic conditions in the United States and global markets, (2) changes in economic conditions, housing prices, foreign currency exchange rates, commodity prices, including shortages of and increases or volatility in the price of oil, (3) changes in laws and regulations, (4) the state of the credit markets, (5) political stability, (6) international conflicts and (7) the occurrence of force majeure events. These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance; Stoneridge’s actual results of operations, financial condition and liquidity, and the development of the industry in which Stoneridge operates may differ materially from those described in or suggested by the forward-looking statements contained in this presentation. In addition, even if Stoneridge’s results of operations, financial condition and liquidity, and the development of the industry in which Stoneridge operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. This presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. Any forward-looking statements in this presentation speak only as of the date of this presentation, and Stoneridge undertakes no obligation to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Stoneridge does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Rounding Disclosure: There may be slight immaterial differences between figures represented in our public filings compared to what is shown in this presentation. The differences are the result of rounding due to the representation of values in millions rather than thousands in public filings.

 
3 2023 Guidance Reaffirmed* $960.0 – $990.0 million 20.5% - 21.25% 1.5% - 2.25% $3.0 – 4.0 million ($0.10) - $0.10 $50.9 - $58.4 million 5.3% - 5.9% Overview of Achievements  Q2 adjusted sales growth of $30.2 million, or 13.0%, vs. Q1 2023 (5x+ weighted-average end market growth)  Q2 margin performance significantly improved driven by strong sales growth and finalized price increases with customers  Adjusted gross margin of 23.2% expanded ~470 bps vs. Q1 2023  Adjusted operating margin of 2.4% expanded by ~390 bps vs. Q1 2023  Q2 adjusted EPS of ($0.05) increased by $0.20 vs. Q1 2023  Includes unfavorable impact of non-operating FX and equity expense of ($2.7) million, or ~($0.08)  Announcing Control Devices front axle disconnect actuator program extension and next generation program award  Expecting operating performance (adjusted sales, gross margin and operating margin) to be at the high end of the previously provided ranges  Reaffirming full-year 2023 guidance for adjusted EPS, EBITDA and tax expense as a result of year-to-date non-operating headwinds (FX and equity expense) Q2 2023 Financial Performance 2023 Full-Year Guidance AdjustedReported $262.4 million$266.8 millionSales $60.9 million 23.2% $60.5 million 22.7% Gross Profit Margin $6.2 million 2.4% $4.3 million 1.6% Operating Income Margin $1.8 million$1.5 millionTax Expense ($0.05)($0.11)EPS $11.9 million 4.5% - EBITDA Margin Guidance Summary Guiding to the high end of the previously provided range for operating metrics including adjusted revenue, gross margin and operating margin to reflect improved operating performance Maintaining guided range for adjusted EPS, EBITDA and adjusted tax expense primarily due to unfavorable non-operating expenses recognized year-to-date (FX and equity expense) offsetting improved operating performance *Full-year 2023 guidance is based on adjusted financial metrics

 
4 Financial Summary Second quarter performance driven by strong sales growth, price increases and focus on operating performance Q1 2023 vs. Q2 2023 Adjusted Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA $’s in USD Millions Q2 Financial Highlights ▸ Adjusted sales growth of 13.0% vs. Q1 2023 primarily due to continued strong customer demand as well as finalized price increases with customers ▸ Gross margin improvement of approximately 470 basis points vs. Q1 2023 primarily due to incremental pricing and contribution on incremental revenue ▸ Recognized ~$3.3 million of retroactive pricing in Q2 2023 ▸ Continued focus on managing existing cost structure to favorably impact operating margin performance, offset by temporarily higher D&D spend vs. Q1 2023 to support program launches ▸ D&D spend not expected to continue at Q2 rate – expected to return to normalized levels in the second half ▸ Non-operating expenses related to FX and equity investment related expense increased by ($1.4) million vs. Q1 2023 $232.2 $262.4 200 220 240 260 280 Q1 2023 Q2 2023 $43.0 $60.9 18.5% 23.2% 0% 10% 20% 30% -20 30 80 Q1 2023 Q2 2023 $(3.4) $6.2 -1.5% 2.4% -3% 2% -3.5 1.5 6.5 Q1 2023 Q2 2023 $3.6 $11.9 1.5% 4.5% 1% 3% 5% 0 5 10 15 Q1 2023 Q2 2023 +13.0% +470 bps +390 bps +300 bps

 
5 ▸ MirrorEye program launched on Kenworth T680 in April 2023 and continues to ramp-up • Launching soon on Peterbilt platforms • Our existing fleet customers are inquiring about OEM availability – suggesting strong market demand ▸ MirrorEye OEM program in Europe remains consistent at ~40% take rate ▸ Existing OEM customers with future launches continue to re- evaluate estimated take rates in anticipation of strong end- customer demand based on programs currently in market MirrorEye OEM Update Business Update New business wins continue to demonstrate advanced technologies and drivetrain agnostic capabilities Continued positive momentum with MirrorEye OEM programs Control Devices - New Business Award Front Axle Disconnect Actuator ▸ Extension and next generation program awarded with major OEM customer ▸ Demonstrates versatility between vehicle platforms and product applications with drivetrain agnostic growth products ▸ Secured business and long-term strategic position on high demand light trucks and SUVs through 2032 ▸ Expecting ~$20 million of peak annual revenue for the extension and new programs MIRROREYE CAMERA MONITOR SYSTEM FRONT AXLE DISCONNECT ACTUATOR

 
6 Summary Summary  Second quarter revenue performance driven primarily by continued strength in our automotive and commercial vehicle end markets and finalized price negotiations  Second quarter operating margin performance driven by incremental pricing, including the retroactive pricing impact, contribution on incremental revenue and effective cost management, partially offset by temporarily higher D&D costs to support program launches  Our first OEM program in North America launched in April on Kenworth T680 – continuing to ramp-up in 2023. Peterbilt platform launching soon. Market demand continues to be strong for first OEM MirrorEye program in Europe with ~40% take rates in 2023.  Control Devices extension of existing business and new business win with OEM customer for front-axle disconnect actuator demonstrating advanced technologies and drivetrain agnostic capabilities 2023 Outlook  Guiding to the high end of the previously provided operating metrics including full-year adjusted revenue, gross margin and operating margin  Maintaining guidance ranges for adjusted EBITDA, EPS and tax expense driven primarily by non-operating headwinds (FX and equity expense) Driving shareholder value by executing on our long-term strategy and focusing on operational excellence

 
7 Financial Update

 
8 2023 Guidance Reaffirmed $960.0 – $990.0 millionAdjusted Sales 20.5% - 21.25%Adjusted Gross Margin 1.5% - 2.25%Adjusted Operating Margin $3.0 – $4.0 millionAdjusted Tax Expense ($0.10) - $0.10Adjusted EPS $50.9 - $58.4 million 5.3% - 5.9% Adjusted EBITDA Margin 2nd Quarter 2023 Financial Summary 2nd Quarter 2023 Financial Results Adjusted sales of $262.4 million, an increase of 13.0% over Q1 2023 • Control Devices sales of $93.1 million, an increase of 7.4% over Q1 2023 • Electronics adjusted sales of $163.9 million, an increase of 16.6% over Q1 2023 • Stoneridge Brazil sales of $14.9 million, an increase of 4.6% over Q1 2023 Adjusted operating income of $6.2 million (2.4% adjusted operating margin), an increase of 390 bps with Q1 2023 • Control Devices adjusted operating income of $5.5 million (5.9% adjusted operating margin), an increase of 420 bps over Q1 2023 • Electronics adjusted operating income of $8.8 million (5.4% adjusted operating margin), an increase of 410 bps over Q1 2023 • Stoneridge Brazil adjusted operating income of $0.9 million (6.0% adjusted operating margin), a decrease of $0.4 million over Q1 2023 2023 Full-Year Guidance Guidance Summary Guiding to the high end of the previously provided range for all operating metrics including adjusted revenue, gross margin and operating margin to reflect improved operating performance Reflects improved margin performance primarily driven by completed customer price negotiations Maintaining guided range for adjusted tax expense, EPS and EBITDA margin primarily due to unfavorable non-operating expenses recognized to date offsetting improved operating performance Includes year-to-date non-operating expense headwinds ($4.0 million or ~$0.12 adjusted EPS) related to non-operating FX expense and non-operating equity interest related expenses

 
9 Control Devices Financial Performance Expecting relatively stable revenue for the remainder of the year Focus on strong execution and cost control to drive margin expansion Control Devices 2023 Expectations ▸ Expecting stable revenue primarily as a result of exposure to high-demand vehicle programs with relatively higher content offsetting broader macroeconomic caution ▸ Focus on driving manufacturing performance improvement and cost control ▸ Continue to invest in and grow current capabilities targeted to electrified platforms and drivetrain architectures Q1 2023 vs. Q2 2023 Sales Adjusted Operating Income $’s in USD Millions Control Devices Q2 Summary Sales increased by 7.4% vs. Q1 2023 Higher sales in the North America passenger vehicle end market and China end markets driven by production stability relative to Q1 Adjusted operating income improved by ~420 basis points vs. Q1 2023 Primarily due to lower direct material costs primarily due to favorable sales mix driving improved gross margin Focused operational cost control resulted in improved operating margin $86.7 $93.1 $80.0 $85.0 $90.0 $95.0 Q1 2023 Q2 2023 $1.4 $5.5 1.6% 5.9% 0% 5% 0 2 4 6 Q1 2023 Q2 2023 7.4% +420 bps

 
10 Electronics Financial Performance Expecting significant year-over-year growth and continued margin expansion Electronics 2023 Expectations Expecting continued strength in demand in commercial vehicle end markets and the ramp-up of new and recently launched programs expected to drive continued revenue growth Expecting completed price negotiations to improve margin run-rate going forward Focused on efficient cost structure to ensure earnings potential is optimized Focus on efficient use of engineering resources to ensure strong program launches and continued advanced development activities while reducing overall cost structure Q1 2023 vs. Q2 2023 Adjusted Sales Adjusted Operating Income $’s in USD Millions Electronics Q2 Summary Adjusted sales increased by 16.6% vs. Q1 2023 Primarily due to continued strong commercial vehicle customer demand and incremental pricing recognized during the quarter Q2 adjusted operating margin improved by ~410 bps vs. Q1 2023 Primarily driven by gross margin improvement primarily as a result of incremental pricing, including retroactive pricing of ~$3.3 million Higher D&D costs vs. Q1 2023 partially offset favorable gross margin during the quarter Elevated D&D related to program launch support – expected to return to normalized levels in the second half $140.5 $163.9 Q1 2023 Q2 2023 16.6% $1.7 $8.8 1.2% 5.4% 0% 2% 4% 6% 0 5 10 Q1 2023 Q2 2023 +410 bps

 
11 Stoneridge Brazil Financial Performance Expecting relatively stable performance despite continued macroeconomic challenges Focus remains on supporting global Electronics business Stoneridge Brazil 2023 Expectations Expecting relative stability despite continued challenging overall macroeconomic conditions Focus remains on utilizing engineering resources to support global Electronics business Stoneridge Brazil Q2 Summary Excluding the favorable impact of foreign currency of $0.7 million, Q2 sales were approximately in line with Q1 2023 Higher sales in aftermarket products offset lower OEM sales during the quarter Operating margin decreased by $0.4 million vs. Q1 2023 Primarily due to higher SG&A and overhead costs Operating income in Q2 2023 includes favorable foreign currency impact of approximately $0.1 million vs. Q1 2023 $’s in USD Millions Q1 2023 vs. Q2 2023 Sales Operating Income $’s in USD Millions $14.3 $14.9 Q1 2023 Q2 2023 $1.3 $0.9 9.4% 6.0% 0 1 2 Q1 2023 Q2 2023

 
12 Q2 2023 Summary and 2023 Expectation ▸ Q2 net debt to trailing twelve month (“TTM”) adjusted EBITDA compliance ratio under 3.0x ▸ Targeting net debt to TTM adjusted EBITDA ratio under 2.5x ▸ Initiated refinancing discussions with the expectation to have debt refinanced with the appropriate capital structure in place prior to the issuance of the 2023 year-end financial statements Q2 compliance leverage ratio under 3.0x Expecting to refinance existing capital structure prior to issuance of 2023 year-end financial statements 4.75x 4.25xLeverage Ratio Compliance Requirement Capital Structure Update Waiver Period Waived 3.5x4.75x <2.5X3.37x 3.70x 2.97x Compliance Leverage Ratio (Adjusted Net Debt / TTM EBITDA*) $’s in USD Millions *Compliance Leverage Ratio calculation includes several adjustments in accordance with the Revolving Credit Facility agreement. Refer to Reconciliations to US GAAP for reconciliations. $22.5 $37.3 $24.2 $24.3 $147.7 $133.6 $146.3 $148.9 - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Targeted Leverage Ratio Adjusted Cash (Compliance) Adjusted Net Debt (Compliance)

 
13 Summary 2023 Q2 Summary ▸ Control Devices – Q2 sales growth primarily due to stable customer demand and content on high-demand vehicles, as well as production normalization in our China end markets. Operating performance improved primarily due to lower material costs driven by favorable product mix and focused operational cost control ▸ Electronics – Continued strong sales growth during the quarter. Operating margin improved primarily due to gross margin expansion driven by price increases, including retroactive pricing recognized during the quarter, partially offset by temporarily higher D&D costs. ▸ Stoneridge Brazil – Stable sales and operating performance vs. Q1 2023. Focus remains on supporting global engineering initiatives and growth in OEM business to support global customers locally. 2023 Outlook and Guidance ▸ Guiding to the high end of the previously provided full-year 2023 adjusted revenue guidance range to reflect continued strong end market demand ▸ Guiding to the high end of the previously provided full-year 2023 adjusted gross and operating margin range to reflect improved operating performance expectations ▸ Reaffirming full-year 2023 adjusted EBITDA margin and EPS guidance to reflect unfavorable non- operating expenses year-to-date of approximately $4.0 million or $0.12 adjusted EPS offsetting improved operating performance Continued strong sales growth, margin expansion and focus on operational excellence providing foundation for long-term shareholder value creation

 
14 Appendix

 
15 Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended June 30, Six months ended June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 Costs and expenses: Cost of goods sold 206,326 182,372 404,849 361,987 Selling, general and administrative 33,491 28,938 63,354 56,337 Design and development 22,666 15,554 39,634 32,582 Operating income (loss) 4,331 (5,928) 302 (8,912) Interest expense, net 3,120 1,217 5,866 3,003 Equity in loss of investee 329 377 500 458 Other expense (income), net 2,387 (596) 3,535 735 Loss before income taxes (1,505) (6,926) (9,599) (13,108) Provision for income taxes 1,487 413 779 1,906 Net loss $ (2,992) $ (7,339) $ (10,378) $ (15,014) Loss per share: Basic $ (0.11) $ (0.27) $ (0.38) $ (0.55) Diluted $ (0.11) $ (0.27) $ (0.38) $ (0.55) Weighted-average shares outstanding: Basic 27,452 27,269 27,400 27,234 Diluted 27,452 27,269 27,400 27,234

 
16 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 34,705 $ 54,798 Accounts receivable, less reserves of $1,132 and $962, respectively 185,296 158,155 Inventories, net 175,305 152,580 Prepaid expenses and other current assets 43,277 44,018 Total current assets 438,583 409,551 Long-term assets: Property, plant and equipment, net 106,227 104,643 Intangible assets, net 46,638 45,508 Goodwill 34,870 34,225 Operating lease right-of-use asset 12,225 13,762 Investments and other long-term assets, net 46,954 44,416 Total long-term assets 246,914 242,554 Total assets $ 685,497 $ 652,105 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Revolving credit facility $ 171,597 $ — Current portion of debt — 1,450 Accounts payable 136,457 110,202 Accrued expenses and other current liabilities 75,579 66,040 Total current liabilities 383,633 177,692 Long-term liabilities: Revolving credit facility — 167,802 Deferred income taxes 7,975 8,498 Operating lease long-term liability 8,967 10,594 Other long-term liabilities 7,284 6,577 Total long-term liabilities 24,226 193,471 Shareholders' equity: Preferred Shares, without par value, 5,000 shares authorized, none issued — — Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,522 and 27,341 shares outstanding at June 30, 2023 and December 31, 2022, respectively, with no stated value — — Additional paid-in capital 226,713 232,758 Common Shares held in treasury, 1,444 and 1,625 shares at June 30, 2023 and December 31, 2022, respectively, at cost (44,367) (50,366) Retained earnings 191,314 201,692 Accumulated other comprehensive loss (96,022) (103,142) Total shareholders' equity 277,638 280,942 Total liabilities and shareholders' equity $ 685,497 $ 652,105

 
17 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, (in thousands) 2023 2022 OPERATING ACTIVITIES: Net loss $ (10,378) $ (15,014) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation 13,161 13,618 Amortization, including accretion and write-off of deferred financing costs 4,004 4,323 Deferred income taxes (3,782) (1,868) Loss of equity method investee 500 458 Gain on sale of fixed assets (854) (95) Share-based compensation expense 1,271 2,834 Excess tax deficiency related to share-based compensation expense 66 259 Gain on settlement of net investment hedge — (3,716) Changes in operating assets and liabilities: Accounts receivable, net (28,100) (15,481) Inventories, net (23,142) (11,864) Prepaid expenses and other assets 3,313 (15,538) Accounts payable 27,069 16,577 Accrued expenses and other liabilities 12,184 7,689 Net cash used for operating activities (4,688) (17,818)

 
18 Statement of Cash Flows (Cont.) INVESTING ACTIVITIES: Capital expenditures, including intangibles (18,025) (14,890) Proceeds from sale of fixed assets 1,729 140 Proceeds from settlement of net investment hedge — 3,820 Investment in venture capital fund, net — (450) Net cash used for investing activities (16,296) (11,380) FINANCING ACTIVITIES: Revolving credit facility borrowings 42,000 11,190 Revolving credit facility payments (38,068) (16,500) Proceeds from issuance of debt 16,402 19,163 Repayments of debt (18,086) (20,358) Earn-out consideration cash payment — (6,276) Repurchase of Common Shares to satisfy employee tax withholding (1,325) (699) Net cash provided by (used for) financing activities 923 (13,480) Effect of exchange rate changes on cash and cash equivalents (32) (2,177) Net change in cash and cash equivalents (20,093) (44,855) Cash and cash equivalents at beginning of period 54,798 85,547 Cash and cash equivalents at end of period $ 34,705 $ 40,692 Supplemental disclosure of cash flow information: Cash paid for interest, net $ 5,622 $ 3,022 Cash paid for income taxes, net $ 5,927 $ 3,936

 
19 Segment Financial Information NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data, unless otherwise stated) A summary of financial information by reportable segment is as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Net Sales: Control Devices $ 92,120 $ 84,566 $ 178,062 $ 168,626 Inter-segment sales 970 451 1,704 1,381 Control Devices net sales 93,090 85,017 179,766 170,007 Electronics 159,786 123,021 300,913 247,974 Inter-segment sales 8,491 7,368 17,007 15,079 Electronics net sales 168,277 130,389 317,920 263,053 Stoneridge Brazil 14,908 13,349 29,164 25,394 Inter-segment sales — — — — Stoneridge Brazil net sales 14,908 13,349 29,164 25,394 Eliminations (9,461) (7,819) (18,711) (16,460) Total net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 Operating Income (Loss): Control Devices $ 5,074 $ 4,118 $ 7,161 $ 10,894 Electronics 7,444 (2,524) 8,844 (5,236) Stoneridge Brazil 899 970 2,242 1,462 Unallocated Corporate (A) (9,086) (8,492) (17,945) (16,032) Total operating income (loss) $ 4,331 $ (5,928) $ 302 $ (8,912) Depreciation and Amortization: Control Devices $ 3,099 $ 3,405 $ 6,273 $ 6,966 Electronics 3,503 3,530 6,967 7,123 Stoneridge Brazil 1,201 1,032 2,286 2,023 Unallocated Corporate 605 567 1,207 1,128 Total depreciation and amortization (B) $ 8,408 $ 8,534 $ 16,733 $ 17,240 Interest Expense (Income), net: Control Devices $ 65 $ 18 $ 83 $ 43 Electronics 511 228 996 301 Stoneridge Brazil (319) (533) (589) (691) Unallocated Corporate 2,863 1,504 5,376 3,350 Total interest expense, net $ 3,120 $ 1,217 $ 5,866 $ 3,003 Capital Expenditures: Control Devices $ 2,019 $ 1,916 $ 3,975 $ 5,761 Electronics 2,334 1,926 8,541 4,759 Stoneridge Brazil 782 1,258 1,418 1,927 Unallocated Corporate(C) 217 680 329 701 Total capital expenditures $ 5,352 $ 5,780 $ 14,263 $ 13,148 (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries.

 
20 Reconciliations to US GAAP

 
21 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 measures in the appendix of this document. The provision of these non- GAAP financial measures is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this document and the adjustments that management can reasonably predict.

 
22 Reconciliations to US GAAP (USD in millions) Q1 2023 Q1 2023 EPS Net Loss (7.4)$ (0.27)$ Add: After-Tax Business Realignment Costs 1.0 0.04 Less: After-Tax Gain on Disposal of Fixed Assets (0.6) (0.02) Add: After-Tax Environmental Remediation Costs 0.1 0.00 Adjusted Net Loss (6.9)$ (0.25)$ Reconciliation of Q1 2023 Adjusted EPS (USD in millions) Q2 2023 Q2 2023 EPS Net Loss (3.0)$ (0.11)$ Add: After-Tax Business Realignment Costs 1.6 0.06 Adjusted Net Loss (1.4)$ (0.05)$ Reconciliation of Q2 2023 Adjusted EPS

 
23 Reconciliations to US GAAP Reconciliation of Adjusted Gross Profit (USD in millions) Q1 2023 Q2 2023 Gross Profit 42.8$ 60.5$ Add: Pre-Tax Business Realignment Costs 0.2 0.5 Adjusted Gross Profit 43.0$ 60.9$ Reconciliation of Adjusted Operating Loss (USD in millions) Q1 2023 Q2 2023 Operating Loss (4.0)$ 4.3$ Add: Pre-Tax Business Realignment Costs 1.3 1.9 Less: Pre-Tax Gain on Disposal of Fixed Assets (0.8) - Add: Pre-Tax Environmental Remediation Costs 0.1 - Adjusted Operating Loss (3.4)$ 6.2$

 
24 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Income (Loss) Before Tax (6.9)$ 1.7$ 0.7$ (8.1)$ (1.5)$ Interest expense, net 1.2 1.8 2.2 2.7 3.1 Depreciation and amortization 8.5 8.3 8.2 8.3 8.4 EBITDA 2.8$ 11.8$ 11.1$ 3.0$ 10.0$ Add: Pre-Tax Business Realignment Costs - 0.3 - 1.3 1.9 Less: Pre-Tax Gain on Disposal of Fixed Assets - - - (0.8) - Add: Pre-Tax Environmental Remediation Costs - - - 0.1 - Add: Pre-Tax Brazilian Indirect Tax Credits, Net (0.6) - - - - Adjusted EBITDA 2.3$ 12.1$ 11.1$ 3.6$ 11.9$

 
25 Reconciliations to US GAAP (USD in millions) Q2 2023 Tax Rate Loss Before Tax (1.5)$ Add: Pre-Tax Business Realignment Costs 1.9 Adjusted Income Before Tax 0.4$ Income Tax Expense 1.5 -98.8% Add: Tax Impact from Pre-Tax Adjustments 0.4 Adjusted Income Tax Expense 1.8$ nm nm = not meaningful Reconciliation of Q2 2023 Adjusted Tax Rate

 
26 Reconciliations to US GAAP Reconciliation of Electronics Adjusted Operating Income (USD in millions) Q1 2023 Q2 2023 Electronics Operating Income 1.4$ 7.4$ Add: Pre-Tax Business Realignment Costs 0.3 1.3 Electronics Adjusted Operating Income 1.7$ 8.8$ Reconciliation of Control Devices Adjusted Operating Income (USD in millions) Q1 2023 Q2 2023 Control Devices Operating Income 2.1$ 5.1$ Less: Pre-Tax Gain on Disposal of Fixed Assets (0.8) - Add: Pre-Tax Environmental Remediation Costs 0.1 - Add: Pre-Tax Business Realignment Costs - 0.4 Control Devices Adjusted Operating Income 1.4$ 5.5$

 
27 Reconciliations to US GAAP Reconciliation of Electronics Adjusted Sales (USD in millions) Q1 2023 Q2 2023 Electronics Sales 149.6$ 168.3$ Less: Sales from Spot Purchase Recoveries (9.1) (4.4) Electronics Adjusted Sales 140.5$ 163.9$ Reconciliation of Adjusted Sales (USD in millions) Q1 2023 Q2 2023 Sales 241.3$ 266.8$ Less: Sales from Spot Purchase Recoveries (9.1) (4.4) Adjusted Sales 232.2$ 262.4$

 
28 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA for Compliance Calculation (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Income (Loss) Before Tax (6.2)$ (6.9)$ 1.7$ 0.7$ (8.1)$ (1.5)$ Interest Expense, net 1.8 1.2 1.8 2.2 2.7 3.1 Depreciation and Amortization 8.7 8.5 8.3 8.2 8.3 8.4 EBITDA 4.3$ 2.8$ 11.8$ 11.1$ 3.0$ 10.0$ Compliance adjustments: Add: Adjustments from Foreign Currency Impact 1.6 (0.4) 3.0 2.8 1.4 3.1 Add: Extraordinary, Non-recurring or Unusual items 0.1 0.4 0.0 0.1 0.2 - Add: Cash Restructuring Charges 0.1 0.0 0.6 0.2 1.4 0.5 Add: Adjustment to Autotech Investments 0.1 0.4 (0.0) 0.4 0.2 0.3 Adjusted EBITDA (Compliance) 6.2$ 3.3$ 15.5$ 14.6$ 6.1$ 13.9$ Adjusted TTM EBITDA (Compliance) 39.6$ 39.5$ 50.2$ Reconciliation of Adjusted Cash for Compliance Calculation (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Total Cash and Cash Equivalents 41.4$ 40.7$ 32.3$ 54.8$ 35.2$ 34.7$ Less: 35% Cash Foreign Locations (10.4) (12.9) (9.8) (17.5) (11.0) (10.4) Total Adjusted Cash (Compliance) 31.0$ 27.8$ 22.5$ 37.3$ 24.2$ 24.3$ Reconciliation of Adjusted Debt for Compliance Calculation (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Total Debt 152.9 162.0 168.5 169.3 168.8 171.6 Outstanding Letters of Credit 1.7 1.7 1.7 1.6 1.6 1.6 Total Adjusted Debt (Compliance) 154.6$ 163.7$ 170.2$ 170.9$ 170.5$ 173.2$ Adjusted Net Debt (Compliance) 133.6$ 146.3$ 148.9$ Compliance Leverage Ratio (Net Debt / TTM EBITDA) 3.37x 3.70x 2.97x

 
v3.23.2
Cover
Aug. 02, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 02, 2023
Entity Registrant Name STONERIDGE, INC.
Entity Incorporation, State or Country Code OH
Entity File Number 001-13337
Entity Tax Identification Number 34-1598949
Entity Address, Address Line One 39675 MacKenzie Drive
Entity Address, Address Line Two Suite 400
Entity Address, City or Town Novi
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48377
City Area Code 248
Local Phone Number 489-9300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares, without par value
Trading Symbol SRI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001043337
Amendment Flag false
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