Exhibit 99.1
Consolidated Balance Sheets, as Adjusted | ||||||||
(Unaudited) | ||||||||
As of December 31 (in thousands) | 2010 | 2009 | ||||||
ASSETS | ||||||||
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 | 54,959 | 42,654 | ||||||
Prepaid expenses and other current assets | 20,443 | 19,320 | ||||||
Total current assets | 249,976 | 235,153 | ||||||
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 | $ | 386,736 | $ | 367,008 | ||||
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, 601 and 301 shares, respectively, at cost | (1,118 | ) | (292 | ) | ||||
Accumulated deficit | (77,620 | ) | (89,150 | ) | ||||
Accumulated other comprehensive income | 4,062 | 2,669 | ||||||
Total Stoneridge Inc. and subsidiaries shareholders' equity | 86,911 | 71,975 | ||||||
Noncontrolling interest | 4,308 | 4,492 | ||||||
Total shareholders' equity | 91,219 | 76,467 | ||||||
Total liabilities and shareholders' equity | $ | 386,736 | $ | 367,008 |
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Consolidated Statements of Operations, as Adjusted | ||||||||||||
(Unaudited) | ||||||||||||
Years ended December 31 (in thousands, except per share data) | 2010 | 2009 | 2008 | |||||||||
Net Sales | $ | 635,226 | $ | 475,152 | $ | 752,698 | ||||||
Costs and Expenses: | ||||||||||||
Cost of goods sold | 489,670 | 387,420 | 585,799 | |||||||||
Selling, general and administrative | 122,032 | 106,228 | 144,383 | |||||||||
Goodwill impairment charge | - | - | 65,175 | |||||||||
Operating income (loss) | 23,524 | (18,496 | ) | (42,659 | ) | |||||||
Interest expense, net | 21,780 | 21,965 | 20,575 | |||||||||
Equity in earnings of investees | (10,346 | ) | (7,775 | ) | (13,490 | ) | ||||||
Loss on extinguishment of debt | 1,346 | - | 770 | |||||||||
Other expense (income), net | (1,280 | ) | 893 | (351 | ) | |||||||
Income (loss) before income taxes | 12,024 | (33,579 | ) | (50,163 | ) | |||||||
Provision (benefit) for income taxes | 678 | (1,003 | ) | 46,034 | ||||||||
Net income (loss) | 11,346 | (32,576 | ) | (96,197 | ) | |||||||
Net income (loss) attributable to noncontrolling interest | (184 | ) | 82 | - | ||||||||
Net income (loss) attributable to Stoneridge, Inc. and subsidiaries | $ | 11,530 | $ | (32,658 | ) | $ | (96,197 | ) | ||||
Basic net income (loss) per share | $ | 0.48 | $ | (1.38 | ) | $ | (4.12 | ) | ||||
Basic weighted average shares outstanding | 23,946 | 23,626 | 23,367 | |||||||||
Diluted net income (loss) per share | $ | 0.47 | $ | (1.38 | ) | $ | (4.12 | ) | ||||
Diluted weighted average shares outstanding | 24,333 | 23,626 | 23,367 |
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Consolidated Statements of Cash Flow, as Adjusted | ||||||||||||
(Unaudited) | ||||||||||||
Years ended December 31 (in thousands) | 2010 | 2009 | 2008 | |||||||||
OPERATING ACTIVITIES: | ||||||||||||
Net income (loss) | $ | 11,346 | $ | (32,576 | ) | $ | (96,197 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by | ||||||||||||
operating activities - | ||||||||||||
Depreciation | 19,070 | 19,875 | 26,196 | |||||||||
Amortization, including accretion of debt discount | 1,129 | 1,053 | 1,320 | |||||||||
Deferred income taxes | (778 | ) | (3,200 | ) | 45,521 | |||||||
Earnings of equity method investees, less dividends | (4,889 | ) | (474 | ) | (9,277 | ) | ||||||
Loss (gain) on sale of fixed assets | (42 | ) | 219 | (571 | ) | |||||||
Share-based compensation expense, net | 2,266 | 1,252 | 2,103 | |||||||||
Loss on early extinguishment of debt | 1,346 | - | 770 | |||||||||
Goodwill impairment charge | - | - | 65,175 | |||||||||
Changes in operating assets and liabilities - | ||||||||||||
Accounts receivable, net | (21,012 | ) | 16,619 | 20,087 | ||||||||
Inventories, net | (12,307 | ) | 17,508 | (2,398 | ) | |||||||
Prepaid expenses and other | (1,624 | ) | (3,133 | ) | 2,656 | |||||||
Accounts payable | 16,705 | (2,111 | ) | (14,769 | ) | |||||||
Accrued expenses and other | 2,641 | (1,208 | ) | 1,840 | ||||||||
Net cash provided by operating activities | 13,851 | 13,824 | 42,456 | |||||||||
INVESTING ACTIVITIES: | ||||||||||||
Capital expenditures | (18,574 | ) | (11,998 | ) | (24,573 | ) | ||||||
Proceeds from sale of fixed assets | 56 | 201 | 1,652 | |||||||||
Business acquisitions and other | - | (5,967 | ) | (980 | ) | |||||||
Net cash used for investing activities | (18,518 | ) | (17,764 | ) | (23,901 | ) | ||||||
FINANCING ACTIVITIES: | ||||||||||||
Extinguishment of senior notes | (183,000 | ) | - | (17,000 | ) | |||||||
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 | - | 1,322 | |||||||||
Premiums related to early extinguishment of debt | (324 | ) | - | (553 | ) | |||||||
Net cash provided by (used for) financing activities | (14,029 | ) | 336 | (16,231 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (1,237 | ) | 2,819 | (5,556 | ) | |||||||
Net change in cash and cash equivalents | (19,933 | ) | (785 | ) | (3,232 | ) | ||||||
Cash and cash equivalents at beginning of period | 91,907 | 92,692 | 95,924 | |||||||||
Cash and cash equivalents at end of period | $ | 71,974 | $ | 91,907 | $ | 92,692 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid for interest, net | $ | 20,755 | $ | 21,969 | $ | 20,985 | ||||||
Cash paid for income taxes, net | $ | 1,213 | $ | 2,319 | $ | 4,466 | ||||||
Supplemental disclosure of non-cash financing activities: | ||||||||||||
Fair value of interest rate swap | $ | (3,017 | ) | $ | - | $ | - |
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