Stoneridge Reports Record Second-Quarter Results
26 July 1999
Stoneridge Reports Record Second-Quarter Results
Sales Up 46.1%, Net Income Up 27.3%
WARREN, Ohio, July 26 -- Stoneridge, Inc. today
announced record sales of $178.0 million and record earnings of $11.2 million
or $.50 per share for the second quarter ended June 30, 1999.
Net sales for the second quarter of 1999 were $178.0 million, an increase
of 46.1 percent, compared with $121.8 million for the same period in 1998.
Sales of core products increased by $66.9 million, or 64.0 percent, to $171.4
million compared with $104.5 million in the same period of 1998. Core product
sales generated through acquisitive growth were $52.7 million while sales of
existing core products increased by $14.2 million, or 13.6%. During the
second quarter, the Company completed the planned phase out of its contract
manufacturing business and as anticipated, sales revenue generated by contract
manufacturing declined by $10.7 million.
Second-quarter operating income was $25.7 million, an increase of
74.8 percent compared with $14.7 million for the same period in 1998.
Interest expense for the second quarter was $7.3 million compared with
$0.3 million for the second 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 second quarter ended June 30, 1999 was $11.2 million,
or $.50 per share, an increase of 27.3 percent compared with net income of
$8.8 million, or $.39 per share, for the quarter ended June 30, 1998.
"Our record second-quarter 1999 revenues were the result of organic growth
from core products, sustained strength in the automotive and commercial truck
markets, and acquisitions. The net earnings performance was generated by
higher operating levels, shift in product mix and the ongoing commitment of
our employees to continuous improvement," said Cloyd J. Abruzzo, president and
chief executive officer.
For the six months ended June 30, 1999, net sales were $355.7 million, an
increase of 40.5 percent, compared with $253.0 million in the same period of
1998. Net income for the six months ended June 30, 1999 was $22.0 million, an
increase of 20.9 percent, compared with net income of $18.2 million for the
same period in 1998.
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. Additional information about Stoneridge can be found on the
World Wide Web at http://www.stoneridge.com .
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 Six Months Ended
June 30 June 30
(Unaudited) (Unaudited)
1999(a) 1998 1999(a) 1998
Net Sales $ 178,048 $ 121,763 $355,703 $252,979
Operating Income 25,661 14,681 51,918 30,719
Earnings Before Taxes 18,335 14,415 36,342 30,179
Provision for Income
Taxes 7,352 5,622 14,586 12,004
Other Income 225 - 225 -
Net Income 11,208 8,793 21,981 18,175
Basic & Diluted
Earnings Per Share $0.50 $0.39 $0.98 $0.81
Weighted Average Shares
Outstanding 22,397 22,397 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)
June 30, December 31,
1999 1998
(Unaudited) (Audited)
Current Assets $ 183,981 $ 157,466
Property, Plant and Equipment 98,495 94,770
Total Assets 663,548 638,116
Current Liabilities 124,376 115,282
Noncurrent Portion of Term Debt 315,031 322,724
Total Liabilities 451,396 447,574
Shareholders' Equity 212,152 190,542