Stoneridge Reports Improved Fourth-Quarter and Full-Year 2002 Results
Stoneridge Reports Improved Fourth-Quarter and Full-Year 2002 Results
-- Net income for the quarter shows substantial increase --
-- Sales rise in quarter and full year --
-- Company generates strong free cash flow; pays down debt in 2002 --
WARREN, Ohio, Jan. 23 Stoneridge, Inc.
today announced increases in sales to $148.3 million and earnings
to $4.5 million, or $0.20 per share, for the fourth quarter ended December 31,
2002.
Net sales increased $8.3 million, or 5.9 percent, to $148.3 million
compared with $140.0 million for the fourth quarter of 2001. The increase in
sales was primarily due to increased North American light and commercial
vehicle production in addition to new product launches.
Net income for the fourth quarter was $4.5 million, or $0.20 per share,
compared with net income of $0.2 million, or $0.01 per share, for the fourth
quarter of 2001.
Effective January 1, 2002, the Company ceased amortizing goodwill in
accordance with its adoption of Statement of Financial Accounting Standard No.
142, "Goodwill and Other Intangible Assets," (SFAS 142). Pro forma fourth
quarter 2001 net income, as if the Company had adopted the non-amortization
provisions of SFAS 142 at the beginning of 2001, would have been $1.9 million,
or $0.08 per share.
"During 2002, we made significant progress toward enhancing Stoneridge's
competitive position for the future," said Cloyd J. Abruzzo, president and
chief executive officer. "We successfully launched several key products in
the areas of occupant safety and sensors and continued to increase our content
within the commercial vehicle market during the year. Our strong earnings and
free cash flow generation enabled us to repay more than $40 million in debt
during the year and improved our overall credit worthiness. In addition, we
greatly enhanced our financial flexibility with the refinancing completed in
May. Our strengthened balance sheet and the accomplishments of this year
position us well for 2003 and beyond."
For the year ended December 31, 2002, net sales were $636.5 million, an
increase of 8.9 percent, compared with $584.5 million for 2001. The net loss
for the year ended December 31, 2002 was $(48.8) million, or $(2.18) per
share, compared with net income of $2.9 million, or $0.13 per share, for 2001.
Income before the extraordinary loss and the cumulative effect of accounting
change for the year ended December 31, 2002 was $24.7 million, or $1.10 per
share, compared with $2.9 million, or $0.13 per share, in 2001. Pro forma net
income for the year ended December 31, 2001, as if the Company had adopted the
non-amortization provisions of SFAS 142 at the beginning of 2001, would have
been $9.8 million, or $0.44 per share. In 2002, the Company recognized an
extraordinary loss of $3.6 million, net of tax, or $0.16 per share, for early
extinguishment of debt related to the Company's refinancing in the second
quarter of 2002.
Outlook
First quarter consensus estimates for North American light vehicle
production are for a slight increase compared to 2002. The consensus forecast
for first-quarter North American commercial vehicle production is for a
decline of approximately 8 to 12 percent. Based upon the current consensus
industry outlook, Stoneridge expects first-quarter 2003 earnings to be in the
range of $0.24 to $0.26 per share.
Accounting for Goodwill
During the second quarter of 2002, the Company completed its analysis of
the adoption of SFAS 142, "Goodwill and Other Intangible Assets." As a
result, the Company recorded as a cumulative effect of a change in accounting
principle, a non-cash charge of $69.8 million, or $3.12 per share, after
applicable income taxes, to write off a portion of the carrying value of
goodwill. This non-cash charge was recorded effective January 1, 2002.
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding fourth
quarter 2002 results can be accessed at 11 a.m. Eastern Time on January 23,
2003, at http://www.stoneridge.com or http://www.vcall.com, both of which will 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. Additional
information about Stoneridge can be found on the World Wide Web at
http://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. 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.
Stoneridge, Inc.
Condensed Consolidated Operating Results
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited) (Audited)
2002 2001 2002 2001
Net Sales $148,278 $140,007 $636,507 $584,468
Operating Income 15,029 8,350 73,187 35,495
Income (Loss) Before
Income Taxes 6,434 (213) 38,089 3,896
Provision (Benefit)
for Income Taxes 1,972 (375) 13,426 950
Income Before
Extraordinary Loss
and Cumulative Effect
of Accounting Change 4,462 162 24,663 2,946
Extraordinary Loss,
net of tax -- -- 3,607 --
Income Before Cumulative
Effect of Accounting
Change 4,462 162 21,056 2,946
Cumulative Effect of
Accounting Change,
net of tax -- -- (69,834) --
Net Income (Loss) $4,462 $ 162 $ (48,778) $2,946
Basic Net Income
(Loss) Per Share:
Income Before
Extraordinary Loss
and Cumulative
Effect of
Accounting Change $0.20 $0.01 $ 1.10 $0.13
Extraordinary Loss,
net of tax -- -- (0.16) --
Cumulative Effect of
Accounting Change,
net of tax -- -- (3.12) --
Basic Net Income
(Loss) Per Share $0.20 $0.01 $(2.18) $0.13
Diluted Net Income
(Loss) Per Share:
Income Before Extraordinary
Loss and Cumulative
Effect of
Accounting Change $0.20 $0.01 $1.09 $0.13
Extraordinary Loss,
net of tax -- -- (0.16) --
Cumulative Effect of
Accounting Change,
net of tax -- -- (3.09) --
Diluted Net Income
(Loss) Per Share: $0.20 $0.01 $(2.16) $0.13
Basic Weighted Average
Shares Outstanding 22,399 22,397 22,399 22,397
Diluted Weighted Average
Shares Outstanding 22,592 22,397 22,627 22,467
Stoneridge, Inc.
Condensed Balance Sheet Items
(In thousands)
December 31, December 31,
2002 2001
(Audited) (Audited)
Current Assets $173,648 $172,745
Property, Plant and Equipment, net 111,838 118,061
Goodwill, net 255,292 345,392
Total Assets 569,100 666,843
Current Liabilities 88,186 126,346
Non-Current Portion of Term Debt 248,918 249,720
Total Liabilities 353,198 407,236
Shareholders' Equity $215,902 $259,607