Stoneridge Reports Record First-Quarter Results
26 April 1999
Stoneridge Reports Record First-Quarter Results
-- Sales Up 35.4%, Net Income Up 14.9% --
-- Company Appoints Two Additional Board Members --
WARREN, Ohio, April 26 -- Stoneridge, Inc. today
announced record sales of $177.7 million and record earnings of $10.8 million
for the first quarter ended March 31, 1999.
Net sales for the first quarter of 1999 were $177.7 million, an increase
of 35.4 percent, compared with $131.2 million in the same period in 1998.
Sales of core products increased by $54.1 million, or 49.9 percent, to
$162.5 million compared with $108.4 million in the same period of 1998. Sales
generated through acquisitive growth were $47.1 million while sales of
existing core products increased by $7.0 million. As anticipated, sales
revenue generated by contract manufacturing declined by $7.6 million.
First-quarter operating income was $26.3 million, an increase of
64.4 percent compared with $16.0 million for the same period in 1998.
Selling, general and administrative expenses increased to 13.1 percent of
sales in the first quarter of 1999 from 12.0 percent in the same period in
1998. This increase resulted from additional costs related to the newly
acquired companies.
Interest expense for the first quarter was $8.2 million compared with
$0.3 million for the first quarter of 1998. The increase was due primarily to
increased borrowings under the Company's senior secured credit facility to
finance acquisitions.
Net income for the first quarter ended March 31, 1999 was $10.8 million,
or $.48 per share, an increase of 14.9 percent compared with net income of
$9.4 million, or $.42 per share, for the quarter ended March 31, 1998.
"Our record first quarter revenues and net earnings are the result of
recent acquisitions, organic growth from core products, and the continued
strength in the automotive and commercial truck markets," said Cloyd J.
Abruzzo, president and chief executive officer. "We are encouraged with the
progress we have made integrating the Hi-Stat and Delta acquisitions into
Stoneridge."
On March 9, 1999, Stoneridge announced the acquisition of Delta Schoeller,
Ltd., a manufacturer of automotive switches based in the United Kingdom.
Delta has been a supplier to the European automotive market for decades and
has recently expanded into the U.S.
"The acquisition of Delta gives Stoneridge the critical mass needed to
effectively expand into the European market with our control device products.
It will serve as the European platform for our switches, actuators and sensor
products," Abruzzo said.
During the first quarter, the Company appointed two additional Board
members, increasing the number of directors to eight. Appointed were C.J.
Hire, retired president and chief executive officer of Hi-Stat effective
February 16, 1999, and Richard G. LeFauve, retired president of GM University
and retired senior vice president of General Motors effective March 15, 1999.
Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent
designer and manufacturer of engineered electrical and electronic components,
modules and systems principally for the automotive, medium and heavy-duty
truck and agricultural vehicle markets. Sales in 1998 were approximately
$504 million.
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 which 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.
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.
Consolidated Operating Results
(In thousands, except per share data)
Three Months Ended
March 31
(Unaudited)
1999(a) 1998
Net Sales $ 177,654 $ 131,216
Operating Income 26,257 16,038
Earnings Before Taxes 18,007 15,764
Provision for Income Taxes 7,234 6,382
Net Income 10,773 9,382
Basic & Diluted Earnings Per Share $0.48 $0.42
Weighted Average Shares Outstanding 22,397 22,397
(a) - Results include the acquisition of Hi-Stat effective January 1, 1999
and Delta Schoeller in March 1999.
Condensed Balance Sheet Items
(In thousands)
March 31 December 31
1999 1998
(Unaudited) (Audited)
Current Assets $ 181,942 $157,466
Property, Plant and Equipment 99,970 94,770
Total Assets 663,399 638,116
Current Liabilities 118,454 115,282
Noncurrent Portion of Term Debt 332,449 322,724
Total Liabilities 461,999 447,574
Shareholders' Equity 201,400 190,542