Stoneridge Reports Improved Fourth-Quarter 2003 Results
-- Sales up 2 percent and net income up 14 percent for the quarter -- -- Expects improved first-quarter 2004 earnings per share --
WARREN, Ohio, Jan. 22 -- Stoneridge, Inc. today announced increases in sales to $151.3 million and net income to $5.1 million, or $0.22 per diluted share, for the fourth quarter ended December 31, 2003.
Net sales increased 2.0 percent to $151.3 million compared with $148.3 million for the fourth quarter of 2002. The increase in sales was primarily due to increased volume within the North American commercial vehicle market and favorable foreign currency exchange rates.
Net income for the fourth quarter was $5.1 million, or $0.22 per diluted share, an increase of 13.3 percent compared with net income of $4.5 million, or $0.20 per diluted share, for the fourth quarter of 2002. During the fourth quarter of 2003, the Company adopted the fair value recognition provisions of SFAS 123, "Accounting for Stock-Based Compensation." The accounting rules require that adoption be applied effective as of January 1, 2003. The Company recorded a pre-tax non-cash expense of $0.9 million for the fourth quarter of 2003 and $1.3 million for the year ended December 31, 2003.
"We are pleased to report solid 2003 results. During the year we achieved significant progress toward strengthening our balance sheet through the generation of strong cash flow," said D.M. Draime, chairman and interim chief executive officer. "Our focus remains on the execution of our day-to-day activities, and we are making progress in the selection process for a new CEO. Stoneridge will continue to strive for higher levels of performance and shareholder value in 2004 and beyond."
For the year ended December 31, 2003, net sales were $606.7 million, a decrease of 4.7 percent, compared with $636.5 million for 2002. Net income for the year ended December 31, 2003 was $21.4 million, or $0.94 per diluted share, compared with a net loss of $48.8 million, or $2.16 per diluted share, for 2002.
Income before cumulative effect of accounting change for the year ended December 31, 2003 was $21.4 million, or $0.94 per diluted share, compared with $21.1 million, or $0.93 per diluted share, in 2002. Effective January 1, 2002, as a result of the adoption of SFAS 142, "Goodwill and Other Intangible Assets," the Company recorded as a cumulative effect of a change in accounting principle, a non-cash charge of $69.8 million, or $3.09 per diluted share, after applicable income taxes, to write off a portion of the carrying value of goodwill. In addition, in 2002, the Company recognized a net-of-tax loss on extinguishment of debt of $3.6 million related to the Company's debt refinancing. Both the SFAS 142 and the loss on extinguishment of debt non- cash charges in 2002 did not affect the Company's income from operations.
Outlook
Stoneridge anticipates first-quarter 2004 earnings per share to be in the range of $0.32 to $0.38 per diluted share, compared with $0.31 per diluted share for the first quarter of 2003.
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding fourth-quarter and full-year 2003 results can be accessed at 11 a.m. Eastern time on January 22, 2004, at www.stoneridge.com or 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 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)
2003 2002 2003 2002
Net Sales $151,249 $148,278 $606,665 $636,507
Operating Income 14,027 14,992 58,370 74,320
Income Before Income
Taxes and Cumulative
Effect of Accounting
Change 7,055 6,434 31,020 32,318
Provision for Income
Taxes 1,976 1,972 9,641 11,262
Income Before Cumulative
Effect of Accounting
Change 5,079 4,462 21,379 21,056
Cumulative Effect of
Accounting Change,
net of tax -- -- -- (69,834)
Net Income (Loss) $5,079 $4,462 $21,379 $(48,778)
Basic Net Income (Loss)
Per Share:
Income Before Cumulative
Effect of Accounting
Change $0.23 $0.20 $0.95 $0.94
Cumulative Effect
of Accounting Change,
net of tax -- -- -- (3.12)
Basic Net Income
(Loss) Per Share $0.23 $0.20 $0.95 $(2.18)
Diluted Net Income
(Loss) Per Share:
Income Before Cumulative
Effect of Accounting
Change $0.22 $0.20 $0.94 $0.93
Cumulative Effect of
Accounting Change,
net of tax -- -- -- (3.09)
Diluted Net Income
(Loss) Per Share $0.22 $0.20 $0.94 $(2.16)
Basic Weighted Average
Shares Outstanding 22,436 22,399 22,415 22,399
Diluted Weighted Average
Shares Outstanding 22,754 22,592 22,683 22,627
Stoneridge, Inc.
Condensed Balance Sheet Items
(In thousands)
December 31, December 31,
2003 2002
(Audited) (Audited)
Current Assets $179,626 $175,675
Property, Plant and Equipment, net 116,262 111,838
Goodwill, net 255,292 255,292
Total Assets 579,667 571,127
Current Liabilities 108,580 90,213
Non-Current Portion of Term Debt 200,245 248,918
Total Liabilities 336,261 355,225
Shareholders' Equity 243,406 215,902