SRI - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to Stoneridge First Quarter 2018 Conference Call. [Operator Instructions] As a reminder, this conference call maybe recorded for replay purposes. It is now my pleasure to turn the conference over to Mr. Matt Horvath, Director of Investor Relations. Sir, the floor is yours.

Matt Horvath

Brian. Thanks everyone. morning, Good for to you quarter our results. joining thank discuss us first And accompanying with www.stoneridge.com was evening release Presentations. presentation The and filed section Webcast posted our Investors and on the website the at in under & is yesterday SEC

call on DeGaynor, Jon Officer; today’s Chief Financial Officer. our our Bob Krakowiak, Joining Chief and Executive are me President and

Before may be today we certain that statements begin, I you need statements. to inform forward-looking

results information or that are not in concerning Forward-looking our include future statements statements include plans. nature historical and

Although subject believe are actual upon and we such that based that and materially. reasonable statements understand should these assumptions, results uncertainties, to you may differ statements are risks

has about differ the Securities been actual factors such the that uncertainties and results Exchange information Commission may could Forward-Looking in to found under Statements. cause which filed Additional be heading with and XX-Q our

most referring During certain we call formal measures for reconciliation With that today’s of to call these the ask After non-GAAP financial the questions. finished questions the to comparable also we financial appendix Jon. their to will Please turn up see Jon and a directly call, non-GAAP open would Bob will keep will GAAP measures. the be measures. a I then single I that, your to follow-up. over you have remarks, to

Jon DeGaynor

which Matt, delivered another Yesterday morning, results strong evening in performance. everyone. first and quarter we good for quarter Thanks, we released the our financial of

an on overview performance with our Page the begin X Let me quarter. of for financial

Adjusted the revenue was of XX% revenue quarter particularly result our an gross year. the of of relative outperformance quarter of improved increase XX.X% Control sales quarter, XXXX related expect expectation improved Devices a for of in $X.XX morning, short, this well of translating first a increasing to per sales quarter X%. as operating growth of Electronics. to of year as $XXX.X we’re adjusted margin an This an for XXXX. or earnings In first outlook the we million in resulted last our $X.XX, margin Our full as and share remainder for outlook EPS to

in detail discussion. full-year expectations midpoint additional later Our margin improvement in on provide EPS intact to year guidance Bob guidance. an will the remain full guided resulting

Our during Control emissions in and the segments expected performed delivering as growth with actuator Devices quarter certain our products.

plant the other of last was leading growth actuator and reductions to discussed driven ramp-up for As flat quarter-over-quarter as offset performance growth quarter, Orlaco, Electronics our group revenue shift-by-wire our in product of programs. segment as at than lines by well revenue segment. roughly the more Revenue XX% strong

commercial for favorable Additionally, million and trailing operating excited margin new morning operating to to the vehicle segment. Europe expected same a a revenue the continued unfavorable our $XX of and This adjusted robustness in to of expansion the one This of the first X%. North in to XXXX for connectivity the markets the topline XX-month contributed rates primarily growth resulting remained PST we the over flat and at peak and impact currency. business in seasonality of awards margin to Sales Margin to for both due period ago. annual relative quarter products. currency related are pending America segment segment announce over MirrorEye year compares breakeven

first to basis of for first to the finalized XX% first of for business We the margin period. key $XXX for quarter Adjusted the declined provides the profit quarter-over-quarter contracts. trailing by with Sales XX points the by increased compared quarter million financial improved quarter. gross Page gross quarter as XX by of X%, the as XXXX, XXXX. a our months compared metrics however approximately when receive summary will update year awarded comparison five X we well backlog a

costs launch improvement by X%, continued our incremental grew to declined quarter. impact revenue, of fright and income XXXX. overtime, points of operating including base the XX compared while from benefited margin margin the improvements diminished gross Adjusted operational unfavorable first quarter on in premium operating While the scrap activities, by mix basis

During we program higher development and costs the launches engineering due to activities. net investments incurred quarter,

As recently we we see continue the in operating up launched to in programs, coming ramp expect to margin quarters. improvements

focus discussed products focus our improved operation have quality, reductions enable we of as over while margin equity As well efficient improved that as processes, year, the continued in in The earnings one production on is Adjusted regularly, improvement our broadly performance attributed points. Stoneridge. in to XX% operating continues always XX The long-term global basis drive quarter. for related EBITDA the throughout not to which to translates chain. improvement This EBITDA improved part to is relative by activities through be margin operating by at financial manufacturing improved and improved we more as cost includes experienced we to margin improvement engineering organization during change venture India EBITDA continuous. and supply the joint these can and improvement

We operational continue expect awards our in to improvements. new and in the joint venture business the momentum India to

in in markets the in focus per growth on representing of XXXX, that of same $X.XX efficiency. $X.XX XX%. We the to continued continued topline operating and resulted growth share exceeds achieve our to adjusted results able period performance financial Our these were compared earnings underlying per to share

took like improving actuation by driven planned on growth financial of this reductions opportunities is was response We’re by quarter, success American our pleased I'd drive In remain we that in with Control the offset and optimize key facilities. our than and to an specific In business. all In will X, success the cost update small reduction our products. Page committed to metrics improvement volumes. activities those North steps our to shift-by-wire labor cost reductions, execution and be with more growth will and in targeted in the our we our emissions relatively XXXX. to of our provide in and segment revenue On each an facets Devices

and discussed previously. freight, we that overtime improvements to production Additionally, we our processes are implementing the cost to address premium scrap

expect overall with actions premium drive segment. margin continues expansion along the activities to for We these

MirrorEye As I awards mentioned award. have including segment OEM the significant electronic earlier, we new in

than X% Our grew of relative segment year. by electronic first the last quarter to more

customers driving recognizing are record is technology-based solutions deliver business awards. to ability globally our Our which

continue our resources addition, the In to of and to growth focus we we engineering global the facilitate segment in years customers. our prudent on most that support ensure

the margin Although revenue first shift higher growth flat & experienced PST to balance. relative XXXX, quarter of the revenue toward of trace continues our track mix

growth continued for continued well-positioned margin for is for allow leveraging appear at revenue of success. remainder for expansion as macroeconomic structure segments our the stable the expect will We existing of PST. cost relatively year conditions PST the Each

generate start Page conservative we OEM production the roughly in for program million an is assumptions a happy believe MirrorEye that We peak revenue opportunities announce to I'm generate manufacturer beginning our X. the to just award to $XX to vehicle MirrorEye. and with system forecasted brakes. Turning is tech this pending on forecasted This scheduled to program of of have commercial XXXX. our production leading annual on vehicle based award for OEM first

on with awards. We work continue additional customers to number of programs in anticipation development a of

discussed just is had previously, not application. we an original As MirrorEye

regulation allow standard an side MirrorEye we to particularly submitted the exemption current an other completely side in trucks requires remove America. is mirror. the FMCSA a police equipped to to opportunity retrofit a with mirrors. Recently of that exemption One external would North opportunities for request This

expect this response a With is exemption, MirrorEye the is pending, favorable While exemption retrofit later the or the opportunity we year. for without significant.

to applications. explore as we technology municipal continue MirrorEye transport, and Additionally, of other off-highway applications such vehicle, passenger

revenue This buses operating program we've on safety change been small worldwide. we for passengers a all and reinforces technology our award with expect MirrorEye both on that bringing soon our protect the in beginning will as XXXX. in surrounding segments retrofit fact markets this on-highway is opportunities cities. relatively electronic pedestrians. awarded Overall, growth to MirrorEye applicable Stoneridge environment and fact, the focused both year, the In that as environments starting this to urban in will and drive OEM

announcing million. connectivity in start X, award peak our pending products in annual to XXXX to revenue a related Turning we Page are $XX of to significant production early additionally

device allows vehicle fleet open solution. well location-based and is services. as dispatching a our to owners is services a advanced that state-of-the-art connectivity This will management, to classical data product Our cloud-based customers as truck platform that and via management, fleets facilitate deliver an

the an ability technologies open are to services almost limitations they to Europe as leveraging North American truly to the be platform data a no are of there we applied the support intelligence timeframe an tapping using markets with customers which vehicle, As our as global to and product as Brazilian accelerated vehicles. any and their into provided incorporate award in in can existing is the award This device. our added our bring currently in

global only us expand footprint in our This customers continue us manufacturing to strategy partner our not it is important with to but product We our from an and award positions also competition. globally and OEM to engineering customer. offerings our Brazil differentiating our validates

we expand As will OEM offerings to customers enable continue solutions and to connectivity worldwide. evaluate program, connected to this intelligent with our opportunities we execute related data products vehicle

Freightliner X, we to our information new awards our launches for Award, as deepening with further that business is quarter as of our for recognized. Supplier Trucks. and being in international proof honored the Turning Daimler driver our with are well Supplier Mercedes-Benz, from Award were to Page systems during customers committed first this partnership efforts the FUSO partnerships Stoneridge the is

accelerated for partner both our and with car Stoneridge customers. both some OEMs largest passenger markets will commercial the global proven Partnering continued position and in most passenger a success. are of vehicle global successful We vehicle the for term long commercial

pleased with Turning the our first quarter. to in achievements I'm X, Page

leadership financial not delivered the As across performance an responded but organization. only identified business the to challenges the and organization opportunities also and across and team, strong we

MirrorEye we've grow year. growth. results to years, connectivity our and awards and to work the to improvement related more detail. not morning last to their built on With that, but order with gain we the financial business. in This to our relationships on for culture remainder over And execution the and continue to also deepen system I'll profitable Over guidance of increasing a our continue EPS customers focused we finally our products, three only turn in those are the and we revenue confidence Bob discuss it announced

Bob Krakowiak

Thanks Jon.

of or Adjusted the were XXXX XX. More X% our first expectations X% represented million performance sales quarter $XXX in Control quarter-over-quarter. of million an X% declined increased sales revised of sales, net we XX.X% XX% with operating Net sales the to increase of X% $XXX.X morning providing sales of first view year. million the $X.X increase X.X% income to our of to increase of financial first period our adjusted revised quarter $XX.X million last remainder of income first period the of a guidance of quarter Slide to of decreased of same $XX.X of relative net during year. operating on line over XXXX. of and relative approximately same by performance by million million the sales. sales in million, income Electronics XXXX. were Adjusted of income to XX% $XX or by for quarter net $XXX.X resulting sales. of XXXX Devices specifically, XX% resulting operating considering the an the operating million last adjusted This $X are Turning relative or decreasing PST's X.X% in X%

We due Control of extensions the performance the strong Segments, our programs expect Electronics markets year. certain growth of end for in and shift-by-wire remainder favorable topline PST continued by and to Devices

a sales guidance over midpoint of of are by $XX We midpoint of to $XXX increase million X% million, our XXXX. increasing an the

actuation Control We Devices. adjusted trailing and relative good Devices primarily decreased and This China. trailing approximately We're gross the XX and was by prior trailing also over increasing first midpoints both period. $X.XX X.X% to Control key metrics quarter-to-quarter margin, our strong XX in in revenue X% increase operating by performance , margin products, last XX EPS guidance Page driven In our a increased year. of with point the summarizes XX% and EBITDA and adjusted guidance XXXX. month related financial to sales XX.X% in X% relative sensing XX to quarter month of an $X.XX margins respectively. to the maintaining are Devices by of expansion our increase periods continued month to Control specific of by XX%

sensor launch XXXX, in continued well product as at outside in growth actuation as in strong the we expect China, as line our lines by continued as Looking Europe, soot shift-by-wire. performance products of our well highlighted of our

continue to sales over the shift-by-wire year. down course expect We to the ramp of

quarter by relative outlook sales XX adjusted by points for the basis our extensions of our decreased due customers. XXXX. has the in to to year However, operating Adjusted income by improved margin X% quarter operating platform the and decreased first

premium in previously, launch to increased scrap. operating costs cost mentioned can the related the in attributed and be including production Jon overtime, As relative quarter reduction to margin freight

We cost and processes have we remainder for targeted and margin year. identified which expect our offset the the including opportunities reductions, to these implemented have improve drive issues countermeasures to of

of you programs. North like some would certain related aware, exit on plans to vehicles. these to our many announced additional As I are Ford American recently backlog detail to passenger provide

has accounted down of platforms. shift-by-wire always planned including on products Our backlog ramp for the these

previously, As XXXX, we on Ford a to large of sales accounting Ford sales in XXXX. have shift-by-wire our passenger disclosed one are platforms for our car is of products. XX% majority Through customers of our

attributable as the our than $X.X passenger backlog less to Ford's last announcement. end in billion of XXXX, X% platforms the year Beyond of car is of recent

forced which with the as to elimination. include the long-term could a prior of plan platforms existing result evaluate to We continue company of extensions opportunities

to market the products has Ford reflect megatrends, current may awards additional align product vehicles. our discussed our and in previously. that eliminated the that portfolio As connectivity to updated be - automotive the to the replace continues Jon reiterate been for the I introduces with platforms to evolve reflect our not backlog want there to opportunities MirrorEye and

receive will a last impact announcement our finalized awarded update our to we Ford's business week We five-year have not do In we material when summary, backlog expect backlog. contracts. on

Page months reported the increased North both with first our brings percentage highlights maximum growth adjusted an company Our relative in and these sales earn-out Electronics operating CUV accrued fair step-up the expected. Electronics total outperform first high earn-up the our Orlaco to revenue increase our time-over-time which XX% segment. of again payout XXXX, a liability light SUV, will Ford of substantial focus continues our the quarter by million. value of as truck quarter position than in is the and to on business $XX earlier platforms. in of during customer X as well income America liability in the to expectations our we XX

topline Our strong driving legacy business quarter. to well performance with perform during volumes the continues vehicle commercial

segment growth. We expect North in are in growth vehicle robust our Recent deliver market launches commercial Electronics the segment continue product America. to forecast a to to Europe revenue as continue and suggesting drive

of to remained operating in and In Operating performance first the to due Orlaco the increased addition, MirrorEye strong XXXX quarter as margins revenue by income net to relative first program quarter of XXXX. the retrofit and higher by year. relatively addition continued we quarter anticipate XX% cost engineering investment of in aftermarket of flat result this the Adjusted a compared launches in activities. development later

X% incur solid a rates. Page quarter than we exchange gin continue to the portfolio of and development to electronics continue product million decrease as XXXX primarily we in sales design our While deliver to XXXX, greater Turn PST strong progresses. of portfolio the to which will growth led due costs during year underlying will quarter, related performance unfavorable $XX.X continues the margins expect MirrorEye Electronics versus improve to has of rate and launch the deliver financial markets. across product XX. to first by cost a to businesses

the X.X% growth relative and during margin about PST while in XXXX line remain improved to the revenue by delivered XX income X.X% growth lines operating track XX% past PST the trailing continues margin performance. remainder of business. the optimistic higher for improvement over region and in the first & operating We the by macroeconomic quarter period. into revenue prior leveraging improved to expect drive Over cautiously improved XX our of product fixed Adjusted margin month PST from XXXX, growing quarter. trace cost months, including convert in conditions to bottom to X% current

we Brazil to for Control growth Additionally, opportunities by products drive into to and Devices introducing Electronics in segments our look the from continue region.

sales Moving to year and share. we per this for morning earnings full increasing Slide our are XX, adjusted midpoint guidance

million. guidance are to of of We our million midpoint guidance sales $XX increase to revising midpoint a in up midpoint our a $XXX implying

implies incremental or guidance midpoint X% year-over-year. Our revenue million growth $XX of

margin our EPS times earnings volume our in guidance increase our by margins. EBITDA our the XX% We to consistent an and on three two our adjusted of $X.XX The year-over-year guidance historical improvement midpoint revising share of margins is contribution to per are full-year with year-over-year. incremental reaffirming $X.XX, up of

growth operations. and We underlying to the our continue based outperform margin in expect continuous markets to performance in to our drive improvement

Slide In all performance Moving to metrics. financial with XX. are strong which closing our in quarter we we first pleased key delivered during for the our results

XXX increased our in to revenue expansion increase midpoint results financial and will through committed and an strong guidance relative growth. With call points. in margin the of updated operating long-term of to results This to $X.XX, $X.XX I X%, outlook. points, is gross EBITDA XXX performance a prior EPS and questions. value Our expansion XXXX of margin of guidance profitable basis to shareholder of driving basis open your Stoneridge that growth

Operator

Instructions] the from with FBR. B. Van come will Riley [Operator And our first Christopher line Horn question of

is line now Your open.

Christopher Van Horn

if lower guidance, it the side, head It’s expansion obviously a the we year. raised margin revenue on I the want maintained sequential guidance implying margin on look see we - is some business the you higher identify there throughout big more significant that at margin And don’t there's detail to So I that mind? rolling your of side. in as just pretty on if Is some costs leverage can just if caused launch or you happen. it the

Jon DeGaynor

a during expect overtime freight, about with talked call, happen series we non-continuous don't we we scrap of launch that part the costs as as premium and had continue. activities the And of to

the we that one-off on items will and improvements teams in that each the are are very there areas talked and we call. XX those that about address of each place that action see are address to of top working confident are in specific the So, there we’re plans items, the

Christopher Van Horn

decision FMCSA I has don't order is way opportunity there? to what it for understand just if feature a an the well mirrors can at be you it, exemption timing, still for the move on then From look favorably and MirrorEye as that get I to for happen if in there and clarification added that exemption. even safety with the just as vehicle And an

Jon DeGaynor

answer let if safety exemption we need not and the Chris. don't need second the on the FMCSA they truck. to the does put piece So see benefits therefore first get be What the MirrorEye exemption. FMCSA me

the and which a - which XX is the the it exemption, FMCSA for and publish public to is However, then which post apply make is then we comment of a XX in process public there and there they is exemption of days days those decisions. period is comment they there have

So of hear out to in having we want and It's have of mirror. only there. mirrors they see impact but back we MirrorEye fuel the But damage from the what cost currently and we it’s opportunity from comment because more importantly to we’ve and the benefit public product, to the expect submitted our a days in process year within five XXish answer side be the situation damage and is exemption proposal. economy of fleet a what have maintenance they safety do not the an a a it’s

maintenance in a it’s the to to of benefit exemption don't have So taking that. order the But the to off. the safety benefit, in want get FMCSA we order so do they cost mirrors need

And off right. so mirrors today in pulled with not the - we're fleet working with are we’re trials

Bob Krakowiak

That’s important.

are on mirrors where the overwhelming the vehicle. mirrors has and response We’re the trials with off not positive even today fleet pulled in been

Christopher Van Horn

And of one significant do Vehicle in in business our a Intelligent from view. see where one going sounds like then is a the already win pretty me, business you’re this that this is kind forward is it opportunity wording and here. this big congratulations because today How you on final just the because win

Jon DeGaynor

upon with - a connectivity, already within within is down would the we're at looking And breakout our of truck. it’s we least that And customer. the that don't a at see this say selling that’s electronics what to OEM that we’re at significant platform builds significant the more I It Yes, in win level, to and Europe but these segments questions on is one do this win. are partners. we more expect data manage what do more from and more is getting OEs and OE that they control a

have the doing lever America means as core significant Brazil. both builds that competencies upon that this and opposed book. something fact win we meaningful is it North to a So developed engineering Its the get of in we is and that to in set our that this fact in already

Bob Krakowiak

base, a that really that is as they you would add that of talking That the and purchase comment we our of - have win this I that speaks mention margin talk to really the the production. two to and really when product looking are to automotive next order capability turn around on three-year at have year the which place in goes on time world. Jon receive just production kind able regarding program volumes to timeframe software, that in the people around terms is think about to I in just in awards, speaks into we’re the we I of generally to what well this to fact the launch think time install of teams supply be volume they just system the about and important the got timeframe system

Operator

Justin next line of And the with will our come from Long question Stephens.

Your now line is open.

Justin Long

that landscape I’ll market given that about as on program think MirrorEye the follow-up addressable offering? of you addressable Is was obviously win. framed product global it to there question connectivity about kind you’ve some and way the competitive maybe think the market for up us that the last win a nice way With today. So see on and to the help

Jon DeGaynor

trying has in controlling it to go look trying all data have their something all ability the are flowing by be it’s so they will control see we look at that job regard through to modules to regarding to made with What some trucks. across the truck. information for as trucks of been vehicles. This is OE’s market the that's we that if you you it better to the of of It’s their us it, one. do do at announcements so piece - addressable a the The do isn’t number the what Justin takeaway, difficult tool to frame all OE’s to this it connectivity that's ultimately are see across with

our won Secondly, can We technology it customers. and bid America, allowed to feel our our our the competitively cost more the needs world Europe this to like try is competitively. to structure customer order and or a their offer in North have else support footprint, anywhere these in competitive activity. we us around win we in And - services as they they

Justin Long

I the have market about much better by how revenue And the the revenue us went outlook. curious And from platforms if could ask contribution quarter? you XXXX secondly it wanted wondering to I help was extended understand of million. you getting a was also shift-by-wire guidance, first versus the XX shift-by-wire from - that if in up contribution

Bob Krakowiak

and customers it’s it’s about extensions, about more in base really guide increase on shift-by-wire our not really So is revenue end really market. overall really outperforming markets the our the the just

So say its I North categorically America, we test America, kind I across would don’t don’t eye the see volumes had actually versus occurring where our if our at board if I Europe. look planned you of in see with customers North what's

world on versus shift-by-wire we’re and more period participating it’s story in right the time. share extended right Our platforms on and that for type of getting we’re gaining programs customers of of of that because are the a

Justin Long

first have can the and was on color how shift-by-wire the revenue the question, course provide you in that over quarter what is second there ramp the expect you you On down to that do of any year?

Jon DeGaynor

you we’ve provided think an we’ve we’ve platforms the selling haven't Justin - down platforms really the were haven't ramp that We we products. shift-by-wire disclosed the on, you price information, disclosed that given if but given about the that of average

ramp you If platforms eye calculate the can and at test at look data those down looks go can you look and like. the what you

Bob Krakowiak

ramp the But to this is life. vehicle XXXX balance isn’t I Justin over this down think ramped a just important it’s a down, know a -

downs So life you're end about XXXX. talking of or ramp in in - XXXX

within So within volume been it's the basically not it at it’s as full It’s adjusting we're our per rates the and from ramp within of down. year plan, zero XXXX. though plan, goes our the our facilities to that we are calendar

Justin Long

ask it to one And cash about reasonable wanted from XXX% me. both think XXXX cash to beyond. around When expect be I the is of the free guess in income about ratio the conversion to I and we free that last net flow, and ratio flow.

Bob Krakowiak

I think a that's reasonable assumption, yes.

Operator

question come line And Stember Scott our King. next the CL of with will from

Your line is now open.

Scott Stember

we talked guess are else you which the hearing North in confidence some testing of that just you through. guys of back about communications from supporting - any from don’t what approval I channel U.S. having, you’re end that know anything confidence, is will is pretty You having what's without that a suggest the customers your which here the talk it the that just there good are are it America about it. or eye certain or it feeling - go level other is Can maybe I -

Jon DeGaynor

the with product to fleets of starts they the - to on we would and feedback our line at Well, first and foremost used it be partnerships where need - up. get via see we all

that this sure there is whole that with the part agree So and making approach. of they is would

Secondly is, from the a of the to we products. an have drive the and benefits see given regulators truck the standpoint. See the safety opportunity benefits

break feedback that the we So the the am the that going the what believe mirror to but we I based don’t The say of approval, what gotten regardless is the will from we have pace regulatory the the feel and we we I more product or come products. confident that it technology, application time, benefits the from trials, for gotten that side safety you see get use benefit fact whether the have highly of a on one that progress. and during major feedback bodies OE’s on the our fleet

Scott Stember

there it if is essentially standpoint. So a market you the from for said sales - like

Jon DeGaynor

and consistently. There a this is we Scott talked fairly absolutely about market

and MirrorEye X spot operators expenses that want really is at from we that commercial ability that's the one top believed The that us It's we have up year-over-year. they into look help and something you the just the it safety a play. them of consistent is industry from our it’s weight for those volume vehicle fleet trials. If leaders the where it and and from got supplement three feedback to comes insurance have the and and fastest growing - rate of in accidents gotten we

Bob Krakowiak

I the mirror I me would but Jon to to XX down down vehicle going add have too. to system. that wrong, down, the the some correct mirror, and am They sort which XX if one square-ish are I we for industry believe significantly vision goes requirement visibility go with will say that if restricts the square-ish even thing fleets I combine - the if of can't go commercial drivers, you

Scott Stember

topic, in the And then it like expecting that sounds back your also in guidance? opportunities year. of part on just retrofit the Is you're that some

Jon DeGaynor

is broader the is are What a proof-of-consent. there yes, and yes Well, looking - number answer but at we the is relatively small. it’s

that that what they and product the OE drivers our is anything we we we of what and make magnitude in appropriate product from but to the safer. feedback right some to trials the got see proof-of-concept more it's sure really same work our sure now. have sure to level of the XXXX, need make made extended revenues We It's validated the low as is make not the We level else. fleets that programs, of but done have on fleet that have want vehicles order the than going and in an we've

Scott Stember

a couple last just of ones. quick And

we are $XXX,XXX opportunities I motor MirrorEye. are to that motor a that very won't on You be point for these, think talked for selling you homes on did would about $XXX,XXX big mention guess buses a other some What home. have

Bob Krakowiak

are and is right list technology earlier, make opportunities that sure Scott, we presentation builds builds we right we all a as equipment. continue You're opportunity as What in is of base it now it our ways really What platform as well. that point are you creative apply as challenge is and and possible, then during us. the about of talked a there, technology home multiple in It's long. is have markets people but applicable we we find robust applicable additional that end markets, to starting the five in technology then opportunities, the to right is robust quite end instruction is sure the the for but the also we make Orlaco, It of we ways. to many base execute and developing upon that is the it trying in have platform also can motor are that

Scott Stember

Just on last question PFT.

number about talk just was sales currency sales as What expect for maybe talk how the talk responsible was currency to You talked foreign about you like. largely and there progresses, about just constant decline. the about how - did the year improve you

Jon DeGaynor

$XXX,XXX. currency was couple for PST of a for year-over-year impact the So

Bob Krakowiak

Here PST XXX% to have is a thing comparing one aftermarket understand list currently of you is things is Scott, a quarter-over-quarter business.

being habits. buying connectivity and There being as because looks really total counterparts and programs us as because important we pipeline will are So country, in solely a OE them. we see within incredibly PST consumer consumer Brazilian this the but to having we business and when a customers happens base support program that programs about and progress and it in would just in that of ago. much like greater got I that the the how aftermarket worried in award that change were our secondly, or quarter others economics, economic couple and timing drive of where for also retail are able quarter-over-quarter important to I channels this am things market we to years basically stability PST excited is How not and whether so into happens compared OE transition about is am. is in it's actually from channels What the much end QX QX so is OE of

Operator

line question Barrington next our with come Prestopino And Research. will of Gary from

Your line is now open.

Gary Prestopino

was and - organic currency any Could you that in impact growth that electronics all there XX%. is

Jon DeGaynor

electronics in So was in was of currency acquisition. big one there electronic, but little part the year-over-year majority the of and the a lack of utilization bit of electronics growth

Gary Prestopino

the a of your of And there. going to is retrofits market be right in Europe my then may North in or big is MirrorEye opportunities is incorrect retrofit understanding both not terms America, now

Jon DeGaynor

the European term truck for way in primarily that certified of are just opportunities North are versus retrofit trucks assumptions the the Our because near difference of the are America U.S. way are the be mean both there an won't in opportunity OE we not OE that is see application but point It starting the certified. an application. there, opportunity here the Europe and whereas does retrofit for

Gary Prestopino

there And this well then on - is the retrofit as I award know - just new getting there overtime. back to potential connectivity, any

Jon DeGaynor

but for versus the for one of there considered our it and that of the competitors. business Yes. certainly the It's was in is winning us opportunity some award retrofit is considerations not business

Operator

with And questions of Long from coming Stephens. Justin line follow-up we have a the

Your now open. line is

Justin Long

discussion the give new there wanted the if Just see reasonable topic way in and on park-by-wire about announcements wanted on any lot we hasn’t you I update a there are during to sales you think provide park-by-wire, timeline where us to the of cycle, could could are is to an on been for contracts on a about that front? ask color that call.

Jon DeGaynor

in - the finalizing Well, product the so XXXX. up we’re talk process first with of that development in let's of the ramp basically

do the of will opportunities more they what we as think regard try our actually doing to from drivetrains. announcements with powertrains to for platform their and on with park-by-wire more Some choices, customers hybrid electric create they're

they're now what figure the well, execution launching platforms. doing their right they're out our for So important to the to trying with most us credibility being with is and the able thing demonstrate as building Justin customers

they but set getting help to trying So it's perspective them ramped that started, it their from as of an platform future short-term it there's up are important being can as supplier really strategies. and that nothing award viewed getting

Justin Long

today. going now And a acquisitions What Wanted versus shape acquisition and I is balance right me, question pretty forward. deployment potentially pipeline allocating about guess to via is about capital buyback? the are good like ask last sheet look thinking in capital the you from how

Bob Krakowiak

have we pipeline. a very So active

at looking a number We’re opportunities. of

that opportunities we’re looking ahead of the at that acquisition our on opportunities the we in different with we of that terms mentioned very, changed. pursue M&A at of is MPV not in highest Orlaco look alternatives, terms them look a opportunities for regions deal way look the fully sheet. looking with evaluating. of - attributed of or strategy Really we’re customers we Orlaco. shareholders we’re like we we’ll that how and really different success extensions strategy, same product whatever have number any existing look I But And and comfortable that at our in expand our of prudent world we at the of time has very repurchasing strength to our nine of product pleased earlier the We're whatever path. months with very the for either that transaction. We’re we own just speaks stock the the line to mix and our at or balance investor,

We’re well have we’ll future. more of positioned say the about and opportunities we number hopefully are near evaluating a

Jon DeGaynor

let the shareholder, the with we at top that to in growth. and me part be our And exciting to inorganically to Stoneridge of a deliver accelerating an able on activities Justin take an growth. from goes Stoneridge in the focus is order organization for order continue add our to and standpoint about to things and of our that, returns right our example will how believe as really that of ability next acquisitions leadership lot our the we right also just and It’s execute, to talk our team confidence so on myself, look to and improvement add our continuous growth that, the to to organizational of into do phase in accelerate execute to we we

Operator

at I this am Thank you. And no further time. showing questions

pleasure back some Officer Mr. over comments remarks. turn DeGaynor, conference Chief or Jon closing So to it’s to my Executive the for

Jon DeGaynor

today's actions the and of will assure results, Thanks participation XXXX drive you committed to focused I company is capital. And our Well strong closing, our the continuing confident business In thank are deployments very much. forward taking you to speaking quarters. and to in in thanks and profitable everybody We're that can look value that new for call. in you beyond. subsequent we result through to available in your questions operating continued that shareholder we and success

Operator

our conclude This all and conference. day. may today’s Everybody gentlemen, Ladies on you thank does you your a program, participation have for disconnect. wonderful

Stoneridge (SRI) 3 May 182018 Q1 Earnings call transcript