Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Kevin P. Bagby
Vice President and CFO
330/856-2443
STONERIDGE REPORTS SECOND-QUARTER 2004 RESULTS
— Net income up 49%; net sales increase 15% —
WARREN, Ohio – July 22, 2004 – Stoneridge, Inc. (NYSE: SRI) today announced sales of $178.1 million and net income of $9.3 million, or $0.41 per diluted share, for the second quarter ended June 30, 2004.
Net sales increased $23.1 million, or 14.9 percent, to $178.1 million compared with $155.0 million for the second quarter of 2003. The increase in sales was primarily due to stronger performance in the Company’s served commercial vehicle markets. Net income for the second quarter was $9.3 million, or $0.41 per diluted share, an increase of 48.7 percent compared with $6.2 million, or $0.28 per diluted share, for the second quarter of 2003.
“Second-quarter results were slightly ahead of our expectations and provide evidence of the strength of our diversified customer base,” said Jerry Pisani, who was named president and chief executive officer of Stoneridge in May 2004. “Since I became CEO, we have already made progress toward realigning our organizational structure to sharpen our focus on the customer and leverage our capabilities across the business units. I am confident that these initiatives will help return us to the growth trajectory that the Company enjoyed in the 1990s, and we are evaluating our strategic plan to improve our prospects for growth.”
For the six months ended June 30, 2004, net sales were $354.1 million, an increase of 12.6 percent, compared with $314.6 million in the same period of 2003. Net income for the first six months of 2004 was $18.5 million, or $0.81 per diluted share, compared with $13.2 million, or $0.58 per diluted share, in the comparable 2003 six-month period.
Outlook
Based on the current industry outlook, Stoneridge anticipates third-quarter 2004 net income to be in the range of $0.14 to $0.18 per diluted share, compared with $0.14 per diluted share for last year’s third quarter. For the full year of 2004, Stoneridge expects net income to be in the range of $1.10 to $1.20 per diluted share, compared with $0.94 per diluted share for 2003.
Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2004 second-quarter results can be accessed at 11 a.m. Eastern time on Thursday, July 22, 2004, atwww.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium- and heavy-duty truck, agricultural and off-road vehicle markets. Sales in 2003 were approximately $607 million. Additional information about Stoneridge can be found atwww.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. Factors 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 decline in automotive, medium- and heavy-duty truck or agricultural vehicle production, the failure to achieve successful integration of any acquired company or business, labor disputes involving the Company or its significant customers, risks associated with conducting business in foreign countries, or a decline in general economic conditions. In addition, this release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Stoneridge 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 Stoneridge’s periodic filings with the Securities and Exchange Commission.
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STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except for per share data)
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||
NET SALES | $ | 178,056 | $ | 155,025 | $ | 354,079 | $ | 314,583 | ||||||
COSTS AND EXPENSES: | ||||||||||||||
Cost of goods sold | 132,633 | 114,700 | 260,840 | 233,332 | ||||||||||
Selling, general and administrative | 25,848 | 24,135 | 53,909 | 48,004 | ||||||||||
OPERATING INCOME | 19,575 | 16,190 | 39,330 | 33,247 | ||||||||||
Interest expense, net | 6,245 | 6,592 | 12,497 | 13,753 | ||||||||||
Other (income) expense, net | (124 | ) | 695 | (400 | ) | 7 | ||||||||
INCOME BEFORE INCOME TAXES | 13,454 | 8,903 | 27,233 | 19,487 | ||||||||||
Provision for income taxes | 4,172 | 2,661 | 8,733 | 6,289 | ||||||||||
NET INCOME | $ | 9,282 | $ | 6,242 | $ | 18,500 | $ | 13,198 | ||||||
BASIC NET INCOME PER SHARE | $ | 0.41 | $ | 0.28 | $ | 0.82 | $ | 0.59 | ||||||
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING | 22,604 | 22,402 | 22,584 | 22,402 | ||||||||||
DILUTED NET INCOME PER SHARE | $ | 0.41 | $ | 0.28 | $ | 0.81 | $ | 0.58 | ||||||
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | 22,825 | 22,644 | 22,801 | 22,623 | ||||||||||
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STONERIDGE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, | December 31, | |||||
2004 | 2003 | |||||
(Unaudited) | (Audited) | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 31,335 | $ | 24,142 | ||
Accounts receivable, net | 114,282 | 89,161 | ||||
Inventories, net | 56,425 | 48,642 | ||||
Prepaid expenses and other | 12,301 | 9,825 | ||||
Deferred income taxes | 8,533 | 7,856 | ||||
Total current assets | 222,876 | 179,626 | ||||
PROPERTY, PLANT AND EQUIPMENT, net | 112,289 | 116,262 | ||||
OTHER ASSETS: | ||||||
Goodwill | 255,292 | 255,292 | ||||
Investments and other, net | 27,964 | 28,487 | ||||
TOTAL ASSETS | $ | 618,421 | $ | 579,667 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
CURRENT LIABILITIES: | ||||||
Current portion of long-term debt | $ | 81 | $ | 417 | ||
Accounts payable | 64,354 | 53,594 | ||||
Accrued expenses and other | 58,479 | 54,569 | ||||
Total current liabilities | 122,914 | 108,580 | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net of current portion | 200,145 | 200,245 | ||||
Deferred income taxes | 30,696 | 25,288 | ||||
Other liabilities | 2,612 | 2,148 | ||||
Total long-term liabilities | 233,453 | 227,681 | ||||
SHAREHOLDERS’ EQUITY: | ||||||
Preferred shares, without par value, 5,000 authorized, none issued | — | — | ||||
Common shares, without par value, 60,000 authorized, 22,663 and 22,459 issued and outstanding at June 30, 2004 and December 31, 2003, respectively, with no stated value | — | — | ||||
Additional paid-in capital | 144,573 | 143,535 | ||||
Retained earnings | 117,258 | 98,758 | ||||
Accumulated other comprehensive income | 223 | 1,113 | ||||
Total shareholders’ equity | 262,054 | 243,406 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 618,421 | $ | 579,667 | ||