Exhibit 99.1
STONERIDGE REPORTS STRONG FOURTH-QUARTER 2015 RESULTS
| · | Reports Earnings Per Share From Continuing Operations of $0.22 |
| · | Adjusted Earnings Per Share From Continuing Operations of $0.25 Exceeds Adjusted Earnings Per Share of $0.23 in the Fourth Quarter of 2014 |
| · | New Business Launches Expected to Drive Sales Increase for 2016 12.5% to 14.0% Above 2015 Level |
| · | Net New Business Forecast Revised Upward to $179.0 Million for 2016-2020, an Increase of $49.0 Million, or 38.0% |
| · | 2016 Earnings Per Share Projected to be in the Range of $1.10-$1.30 Compared with $0.93 Adjusted Earnings Per Share in 2015 |
WARREN, Ohio – March 1, 2016 – Stoneridge, Inc. (NYSE: SRI) today announced financial results for the fourth quarter ended December 31, 2015 with sales of $154.6 million and earnings per diluted share from continuing operations of $0.22.
On a constant currency basis, sales increased by $4.8 million, or 2.9%, during the fourth quarter of 2015. Fourth quarter 2015 net sales were $154.6 million, a decrease of $12.2 million, or 7.3%, compared with $166.8 million for the fourth quarter of 2014. Fourth quarter 2015 sales were negatively affected by $17.0 million due to unfavorable foreign currency translation for the Company’s Electronics and PST segments. (See Exhibit 2 for reconciliation of this non-GAAP financial measure.)
The Control Devices segment sales increased by $7.1 million, or 9.6%. The sales increase in the Control Devices segment in 2015 reflects a robust North American passenger car market.
On a constant currency basis, the Electronics segment sales were substantially the same in the fourth quarter of 2015 compared with the fourth quarter of 2014. Electronics sales decreased by $4.8 million, or 8.5%, due to unfavorable foreign currency translation. (See Exhibit 2 for reconciliation of this non-GAAP financial measure.)
On a constant currency basis, the PST segment sales decreased by 6.6% compared with the fourth quarter of 2014 because of the adverse effects of the continued deterioration of economic conditions in Brazil. PST experienced a sales decrease of $14.5 million, or 40.4%, compared with the fourth quarter of 2014, due to unfavorable foreign currency exchange translation and weaker economic conditions in Brazil. The Brazilian Real depreciated 51.1% to the U.S. dollar, quarter-to-quarter, which reduced U.S. dollar reported sales for PST by approximately $12.1 million or 33.8%. (See Exhibit 2 for reconciliation of this non-GAAP financial measure.)
Earnings per diluted share from continuing operations attributable to Stoneridge, Inc. was $0.22 for the fourth quarter of 2015 compared with a loss per diluted share from continuing operations of $(0.92) in the fourth quarter of 2014. The fourth-quarter 2015 net income from continuing operations attributable to Stoneridge, Inc. of $6.1 million, or $0.22 per diluted share, included expense for the recognition of a deferred tax asset valuation allowance for our PST segment of $0.9 million, or $0.03 per share. The fourth-quarter 2014 net loss from continuing operations attributable to Stoneridge, Inc. of $(24.9) million, or $(0.92) per diluted share, included expenses of $21.8 million, or $0.81 per diluted share, for a non-cash goodwill write-off for the PST business and a loss of $(9.3) million, or $(0.34) per diluted share, for debt extinguishment related costs. (See Exhibit 3 for a reconciliation of this non-GAAP financial measure.)
At December 31, 2015, Stoneridge’s consolidated cash position was $54.4 million, an increase of $11.3 million from December 31, 2014. The cash increase was due primarily to lower interest payments, working capital decreases and improved operating performance which was partially offset by higher capital expenditures primarily for new program sales. Stoneridge’s Debt to Adjusted EBITDA ratio improved to 2.3x compared with 2.5x in the fourth quarter of 2014. (See Exhibit 4 for a reconciliation of this non-GAAP financial measure.)
Jon DeGaynor, President and Chief Executive Officer, commented, “The Control Devices and Electronics segments continued to perform well in the fourth quarter, although unfavorable foreign currency exchange rates masked the financial performance of Electronics. As 2016 begins, I am excited about the many ways our teams around the world are taking our business to a higher level of performance, focusing on execution. An example of this focus is in new products like the shift-by-wire launch, which is proceeding as planned, and mirror replacement development, with our partner Orlaco, which is gaining interest from multiple customers in both North America and Europe. Another example is in cost areas as we drive improvements in our plants, engineering and administrative activities.
“An area where our execution did not achieve our objective was PST, as PST struggled during the fourth quarter with continued sales reductions which proved to be too large for it to generate an operating profit (excluding non-cash intangible amortization expense related to the purchase of PST). The economic headwinds overshadowed the strong progress PST has made to reduce inventory by 37% from mid-year levels and pay down debt in the fourth quarter of 2015 by 21%. These reductions are the result of sustainable changes implemented at PST. To offset the continued challenges in the Brazilian market, PST is executing additional plans in the first quarter of 2016 to revise pricing and to size its cost structure to match demand. These plans should bring PST back to profitability in the second quarter of 2016.”
DeGaynor concluded, “In 2016 Stoneridge expects to grow faster than the North American light vehicle market due to our new business launches. Our 2016 guidance implies continued improvement in financial performance as a result of the execution of our sales, earnings and cash flow strategies. Our earnings per share for 2016 is estimated in the range of $1.10 to $1.30 compared with $0.93 per adjusted diluted share in 2015.” (See Exhibit 1 for further information on our guidance and Exhibit 5 for a reconciliation of 2015 adjusted diluted earnings per share of $0.93 to 2015 diluted earnings per share of $0.82). “Our strategies will also deliver results for future periods. This is tangibly demonstrated by our net new business projection which has increased by $49.0 million or 38.0% to $179.0 million compared with our five-year forward sales projection published last year at this time.”
Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2015 fourth-quarter results can be accessed at 10 a.m. Eastern time on Tuesday, March 1, 2016, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, commercial vehicle, motorcycle, 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 volume change in automotive, commercial vehicle, motorcycle, off-highway vehicle and agricultural equipment 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
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | Three months ended | | | For the years ended | |
| | | December 31, | | | December 31, | |
| (in thousands, except per share data) | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | |
| Net sales | | $ | 154,641 | | | $ | 166,811 | | | $ | 644,812 | | | $ | 660,579 | |
| | | | | | | | | | | | | | | | | |
| Costs and expenses: | | | | | | | | | | | | | | | | |
| Cost of goods sold | | | 112,402 | | | | 121,910 | | | | 467,834 | | | | 469,705 | |
| Selling, general and administrative | | | 24,816 | | | | 30,043 | | | | 110,371 | | | | 123,630 | |
| Design and development | | | 9,096 | | | | 9,693 | | | | 38,792 | | | | 41,609 | |
| Goodwill impairment | | | - | | | | 27,960 | | | | - | | | | 51,458 | |
| | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | 8,327 | | | | (22,795 | ) | | | 27,815 | | | | (25,823 | ) |
| | | | | | | | | | | | | | | | | |
| Interest expense, net | | | 1,682 | | | | 1,821 | | | | 6,365 | | | | 16,880 | |
| Equity in earnings of investee | | | (116 | ) | | | (228 | ) | | | (608 | ) | | | (815 | ) |
| Loss on early extinguishment of debt | | | - | | | | 9,687 | | | | - | | | | 10,607 | |
| Other (income) expense, net | | | 2,171 | | | | (1,703 | ) | | | 1,828 | | | | 565 | |
| | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes from continuing operations | | | 4,590 | | | | (32,372 | ) | | | 20,230 | | | | (53,060 | ) |
| | | | | | | | | | | | | | | | | |
| Benefit for income taxes from continuing operations | | | (345 | ) | | | (1,066 | ) | | | (547 | ) | | | (1,856 | ) |
| | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | 4,935 | | | | (31,306 | ) | | | 20,777 | | | | (51,204 | ) |
| | | | | | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Loss from discontinued operations, net of tax | | | - | | | | (897 | ) | | | - | | | | (811 | ) |
| Gain (loss) on disposal, net of tax | | | 16 | | | | (795 | ) | | | (210 | ) | | | (8,576 | ) |
| | | | | | | | | | | | | | | | | |
| Gain (loss) from discontinued operations | | | 16 | | | | (1,692 | ) | | | (210 | ) | | | (9,387 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | | 4,951 | | | | (32,998 | ) | | | 20,567 | | | | (60,591 | ) |
| | | | | | | | | | | | | | | | | |
| Net loss attributable to noncontrolling interest | | | (1,133 | ) | | | (6,444 | ) | | | (2,207 | ) | | | (13,483 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) attributable to Stoneridge, Inc. | | $ | 6,084 | | | $ | (26,554 | ) | | $ | 22,774 | | | $ | (47,108 | ) |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per share from continuing operations | | | | | | | | | | | | | | | | |
| attributable to Stoneridge, Inc.: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.22 | | | $ | (0.92 | ) | | $ | 0.84 | | | $ | (1.40 | ) |
| Diluted | | $ | 0.22 | | | $ | (0.92 | ) | | $ | 0.82 | | | $ | (1.40 | ) |
| | | | | | | | | | | | | | | | | |
| Loss per share attributable to discontinued operations: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.00 | | | $ | (0.07 | ) | | $ | (0.01 | ) | | $ | (0.35 | ) |
| Diluted | | $ | 0.00 | | | $ | (0.07 | ) | | $ | (0.01 | ) | | $ | (0.35 | ) |
| | | | | | | | | | | | | | | | | |
| Earnings (loss) per share attributable to Stoneridge, Inc.: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.22 | | | $ | (0.99 | ) | | $ | 0.83 | | | $ | (1.75 | ) |
| Diluted | | $ | 0.22 | | | $ | (0.99 | ) | | $ | 0.81 | | | $ | (1.75 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted-average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 27,454 | | | | 26,954 | | | | 27,338 | | | | 26,924 | |
| Diluted | | | 28,082 | | | | 26,954 | | | | 27,959 | | | | 26,924 | |
| CONSOLIDATED BALANCE SHEETS | | | | | | |
| | | | | | | |
| As of December 31 (in thousands) | | 2015 | | | 2014 | |
| | | | | | | |
| ASSETS | | | | | | | | |
| | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 54,361 | | | $ | 43,021 | |
| Accounts receivable, less reserves of $1,066 and $2,017, respectively | | | 94,937 | | | | 105,102 | |
| Inventories, net | | | 61,009 | | | | 71,253 | |
| Prepaid expenses and other current assets | | | 21,602 | | | | 26,135 | |
| Total current assets | | | 231,909 | | | | 245,511 | |
| | | | | | | | | |
| Long-term assets: | | | | | | | | |
| Property, plant and equipment, net | | | 85,264 | | | | 85,311 | |
| Other assets: | | | | | | | | |
| Intangible assets, net and goodwill | | | 36,699 | | | | 57,715 | |
| Investments and other long-term assets, net | | | 10,380 | | | | 10,214 | |
| Total long-term assets | | | 132,343 | | | | 153,240 | |
| Total assets | | $ | 364,252 | | | $ | 398,751 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Current portion of debt | | $ | 13,905 | | | $ | 19,655 | |
| Accounts payable | | | 55,225 | | | | 58,593 | |
| Accrued expenses and other current liabilities | | | 38,920 | | | | 42,066 | |
| Total current liabilities | | | 108,050 | | | | 120,314 | |
| | | | | | | | | |
| Long-term liabilities: | | | | | | | | |
| Revolving credit facility | | | 100,000 | | | | 100,000 | |
| Long-term debt, net | | | 4,458 | | | | 10,651 | |
| Deferred income taxes | | | 41,332 | | | | 50,006 | |
| Other long-term liabilities | | | 3,983 | | | | 3,974 | |
| Total long-term liabilities | | | 149,773 | | | | 164,631 | |
| | | | | | | | | |
| Shareholders' equity: | | | | | | | | |
| Preferred Shares, without par value, 5,000 shares authorized, none issued | | | - | | | | - | |
| Common Shares, without par value, 60,000 shares authorized, | | | | | | | | |
| 28,907 and 28,853 shares issued and 27,912 and 28,221 shares outstanding at | | | | | | | | |
| December 31, 2015 and 2014, respectively, with no stated value | | | - | | | | - | |
| Additional paid-in capital | | | 199,254 | | | | 192,892 | |
| Common Shares held in treasury, 995 and 632 shares at December 31, 2015 | | | | | | | | |
| and 2014, respectively, at cost | | | (4,208 | ) | | | (1,284 | ) |
| Accumulated deficit | | | (32,105 | ) | | | (54,879 | ) |
| Accumulated other comprehensive loss | | | (69,822 | ) | | | (45,473 | ) |
| Total Stoneridge, Inc. shareholders' equity | | | 93,119 | | | | 91,256 | |
| Noncontrolling interest | | | 13,310 | | | | 22,550 | |
| Total shareholders' equity | | | 106,429 | | | | 113,806 | |
| Total liabilities and shareholders' equity | | $ | 364,252 | | | $ | 398,751 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| | | Three months ended | | | For the years ended | |
| | | December 31, | | | December 31, | |
| (in thousands) | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | |
| Net income (loss) | | $ | 4,951 | | | $ | (32,998 | ) | | $ | 20,567 | | | $ | (60,591 | ) |
| Less: Loss attributable to noncontrolling interest | | | (1,133 | ) | | | (6,444 | ) | | | (2,207 | ) | | | (13,483 | ) |
| Net income (loss) attributable to Stoneridge, Inc. | | | 6,084 | | | | (26,554 | ) | | | 22,774 | | | | (47,108 | ) |
| | | | | | | | | | | | | | | | | |
| Other comprehensive income (loss), net of tax attributable to | | | | | | | | | | | | | | | | |
| Stoneridge, Inc.: | | | | | | | | | | | | | | | | |
| Foreign currency translation | | | (196 | ) | | | (9,104 | ) | | | (24,693 | ) | | | (15,268 | ) |
| Benefit plan liability | | | - | | | | 141 | | | | (45 | ) | | | 141 | |
| Unrealized gain on derivatives | | | 418 | | | | 161 | | | | 389 | | | | 112 | |
| Other comprehensive income (loss), net of tax attributable to | | | | | | | | | | | | | | | | |
| Stoneridge, Inc. | | | 222 | | | | (8,802 | ) | | | (24,349 | ) | | | (15,015 | ) |
| | | | | | | | | | | | | | | | | |
| Comprehensive income (loss) attributable to Stoneridge, Inc. | | $ | 6,306 | | | $ | (35,356 | ) | | $ | (1,575 | ) | | $ | (62,123 | ) |
The Company has combined comprehensive loss from continuing operations and comprehensive loss from discontinued operations herein.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Years ended December 31 (in thousands) | | 2015 | | | 2014 | |
| | | | | | | |
| OPERATING ACTIVITIES: | | | | | | |
| Net cash provided by operating activities | | $ | 54,805 | | | $ | 19,815 | |
| | | | | | | | | |
| INVESTING ACTIVITIES: | | | | | | | | |
| Capital expenditures | | | (28,735 | ) | | | (24,754 | ) |
| Proceeds from sale of fixed assets | | | 64 | | | | 110 | |
| Proceeds from (payments related to) sale of Wiring business | | | (1,230 | ) | | | 71,386 | |
| Business acquisition | | | (469 | ) | | | (1,022 | ) |
| Net cash provided by (used for) investing activities | | | (30,370 | ) | | | 45,720 | |
| | | | | | | | | |
| FINANCING ACTIVITIES: | | | | | | | | |
| Revolving credit facility borrowings | | | - | | | | 100,000 | |
| Extinguishment of senior notes | | | - | | | | (175,000 | ) |
| Premium related to early extinguishment of senior notes | | | - | | | | (8,006 | ) |
| Proceeds from issuance of debt | | | 22,540 | | | | 30,072 | |
| Repayments of debt | | | (30,586 | ) | | | (25,610 | ) |
| Noncontrolling interest shareholder distribution | | | - | | | | (1,083 | ) |
| Other financing costs | | | (49 | ) | | | (1,666 | ) |
| Repurchase of Common Shares to satisfy employee tax withholding | | | (2,924 | ) | | | (765 | ) |
| Net cash used for financing activities | | | (11,019 | ) | | | (82,058 | ) |
| | | | | | | | | |
| Effect of exchange rate changes on cash and cash equivalents | | | (2,076 | ) | | | (3,281 | ) |
| | | | | | | | | |
| Net change in cash and cash equivalents | | | 11,340 | | | | (19,804 | ) |
| | | | | | | | | |
| Cash and cash equivalents at beginning of period | | | 43,021 | | | | 62,825 | |
| | | | | | | | | |
| Cash and cash equivalents at end of period | | $ | 54,361 | | | $ | 43,021 | |
The Company has combined cash flows from continuing operations and cash flows from discontinued operations within the operating, investing and financing categories.
Exhibit 1
| | | | Full Year | | FX In Guidance |
| | | | 2016 | | 2016 |
| | | | | | | | | |
| Sales (in millions) | | | $726.0 | - | $736.0 | | USD/BRL | 3.80 |
| | | | | | | | | |
| Gross Margin | | | 25.5% | - | 28.0% | | USD/MXN | 15.80 |
| | | | | | | | | |
| Operating Margin | | 5.3% | - | 7.3% | | EUR/USD | 1.10 |
| | | | | | | | |
| EPS | | $1.10 | - | $1.30 | | USD/SEK | 8.65 |
| | | | | | | | | |
| EBITDA | | 8.0% | - | 11.0% | | | |
| | | | | | | | | |
| Exhibit 2 |
| |
| Stoneridge, Inc. |
| Reconciliation of Sales to Constant Currency Adjusted Sales |
| Three months ended December 31, 2015 and 2014 |
| (Unaudited) |
| | | | | | Increase / | | | Percent | |
| | | 2015 | | | 2014 | | | (Decrease) | | | Increase | |
| | | | | | | | | | | | | |
| Electronics Segment Sales As Reported | | $ | 51,529 | | | $ | 56,333 | | | $ | (4,804 | ) | | | (8.5 | )% |
| | | | | | | | | | | | | | | | | |
| Plus: Constant Foreign Currency Translation Adjustment | | | 4,820 | | | | - | | | | 4,820 | | | | | |
| | | | | | | | | | | | | | | | | |
| Adjusted Electronics Segment Sales | | $ | 56,349 | | | $ | 56,333 | | | $ | 16 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| PST Segment Sales As Reported | | $ | 21,401 | | | $ | 35,915 | | | $ | (14,514 | ) | | | (40.4 | )% |
| | | | | | | | | | | | | | | | | |
| Plus: Constant Foreign Currency Translation Adjustment | | | 12,139 | | | | - | | | | 12,139 | | | | | |
| | | | | | | | | | | | | | | | | |
| Adjusted PST Segment Sales | | $ | 33,540 | | | $ | 35,915 | | | $ | (2,375 | ) | | | (6.6 | )% |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total Consolidated Sales As Reported | | $ | 154,641 | | | $ | 166,811 | | | $ | (12,170 | ) | | | (7.3 | )% |
| | | | | | | | | | | | | | | | | |
| Plus: Constant Foreign Currency Translation Adjustment | | | 16,959 | | | | - | | | | 16,959 | | | | | |
| | | | | | | | | | | | | | | | | |
| Total Consolidated Constant Currency Adjusted Sales | | $ | 171,600 | | | $ | 166,811 | | | $ | 4,789 | | | | 2.9 | % |
| Exhibit 3 |
| |
Stoneridge, Inc. Reconcilation of Net Income (Loss) and Earnings (Loss) Per Diluted Share to Adjusted Net Income and Earnings Per Diluted Share Three months ended December 31, 2015 and 2014 (Unaudited) |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | | | | | |
| Net Income (Loss) and Earnings (Loss) Per Diluted Share | | | | | | | | | | | | | | | | |
| Attributable to Stoneridge, Inc. | | $ | 6,084 | | | $ | (26,554 | ) | | $ | 0.22 | | | $ | (0.99 | ) |
| | | | | | | | | | | | | | | | | |
| Less: Net Income (Loss) and Earnings (Loss) Per Diluted Share | | | | | | | | | | | | | | | | |
| Attributable to Discontinued Operations | | | 16 | | | | (1,692 | ) | | | - | | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | |
| Income (Loss) and Earnings (Loss) Per Diluted Share from | | | | | | | | | | | | | | | | |
| Continuing Operations Attributable to Stoneridge, Inc. | | | 6,068 | | | | (24,862 | ) | | | 0.22 | | | | (0.92 | ) |
| | | | | | | | | | | | | | | | | |
| Unusual Items | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| PST Tax Valuation Allowance | | | 1,237 | | | | - | | | | 0.04 | | | | - | |
| PST Goodwill Impairment | | | - | | | | 27,960 | | | | - | | | | 1.04 | |
| PST Amounts Attributable to Noncontrolling Interest | | | (322 | ) | | | (6,142 | ) | | | (0.01 | ) | | | (0.23 | ) |
| Net PST Adjustments Attributable to Stoneridge, Inc. | | | 915 | | | | 21,818 | | | | 0.03 | # | | | 0.81 | |
| | | | | | | | | | | | | | | | | |
| Debt Extinguishment Costs | | | - | | | | 9,687 | | | | - | | | | 0.36 | |
| Gain on Termination of Interest Rate Swap | | | - | | | | (371 | ) | | | - | | | | (0.02 | ) |
| | | | | | | | | | | | | | | | | |
| Total Adjustment for PST Tax Valuation Allowance and Goodwill Impairment, | | | | | | | | | | | | | | | | |
| Debt Extinguishment Costs and Gain on Interest Rate Swap Termination | | | 915 | | | | 31,134 | | | | 0.03 | | | | 1.15 | |
| | | | | | | | | | | | | | | | | |
| Adjusted Net Income and Earnings Per Diluted Share from | | | | | | | | | | | | | | | | |
| Continuing Operations Attributable to Stoneridge, Inc. | | $ | 6,983 | | | $ | 6,272 | | | $ | 0.25 | | | $ | 0.23 | |
| Exhibit 4 |
| | | | | | | | |
Stoneridge, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA from Continuing Operations |
Years ended December 31, 2015 and 2014 (Unaudited) |
| | | 2015 | | | 2014 | |
| | | | | | | |
| Net income (loss) | | $ | 20,567 | | | $ | (60,591 | ) |
| Interest expense, net | | | 6,365 | | | | 16,880 | |
| Equity in earnings of investees | | | (608 | ) | | | (815 | ) |
| Other expense, net | | | 1,828 | | | | 565 | |
| Benefit for income taxes | | | (547 | ) | | | (1,856 | ) |
| Depreciation and amortization | | | 22,274 | | | | 27,105 | |
| Share-based compensation impact of CEO Retirement | | | 2,225 | | | | - | |
| Discontinued operations | | | 210 | | | | 9,387 | |
| Loss on early extinguishment of debt | | | - | | | | 10,607 | |
| PST purchase accounting and goodwill impairment | | | (120 | ) | | | 50,918 | |
| | | | | | | | | |
| Adjusted EBITDA from continuing operations | | $ | 52,194 | | | $ | 52,200 | |
| | | | | | | | | |
| Total Debt | | $ | 118,363 | | | $ | 130,306 | |
| Total Debt / Adjusted EBITDA from continuing operations | | $ | 2.3 | | | $ | 2.5 | |
| Exhibit 5 |
| | | | | | | | | | | | | |
Stoneridge, Inc. Reconcilation of Net Income and Adjusted Earnings Per Diluted Share to Adjusted Net Income and Earnings Per Diluted Share from Continuing Operations Year ended December 31, 2015 (Unaudited) |
| | | 2015 | |
| | | | | | | |
| Net Income and Earnings Per Diluted Share | | | | | | | | |
| Attributable to Stoneridge, Inc. | | $ | 22,774 | | | $ | 0.81 | |
| | | | | | | | | |
| Less: Net Loss and Loss Per Diluted Share | | | | | | | | |
| Attributable to Discontinued Operations | | | (210 | ) | | | (0.01 | ) |
| | | | | | | | | |
| Net Income and Earnings Per Diluted Share from Continuing | | | | | | | | |
| Operations Attributable to Stoneridge, Inc. | | | 22,984 | | | | 0.82 | |
| | | | | | | | | |
| Unusual Items | | | | | | | | |
| | | | | | | | | |
| Share-Based Compensation Expense Associated with the Retirement | | | | | | | | |
| of our Former President and Chief Executive Officer | | | 2,225 | | | | 0.08 | |
| | | | | | | | | |
| PST Tax Valuation Allowance | | | 1,237 | | | | 0.04 | |
| PST Amounts Attributable to Noncontrolling Interest | | | (322 | ) | | | (0.01 | ) |
| Net PST Adjustments Attributable to Stoneridge, Inc. | | | 915 | | | | 0.03 | |
| | | | | | | | | |
| Total Adjustment for Share-Based Compensation and PST Tax | | | | | | | | |
| Valuation Allowance | | | 3,140 | | | | 0.11 | |
| | | | | | | | | |
| Adjusted Net Income and Earnings Per Diluted Share from Continuing | | | | | | | | |
| Operations Attributable to Stoneridge, Inc. | | $ | 26,124 | | | $ | 0.93 | |
