0001043337FALSE00010433372023-11-012023-11-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2023
STONERIDGE, INC.
(Exact Name of Registrant as Specified in its Charter)
Ohio001-1333734-1598949
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
39675 MacKenzie Drive, Suite 400, Novi, Michigan 48377
(Address of principal executive offices, and Zip Code)
(248) 489-9300
Registrant’s Telephone Number, Including Area Code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, without par valueSRINew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


ITEM 2.02    Results of Operations and Financial Condition.
On November 1, 2023, Stoneridge, Inc. (the “Company”) issued a press release announcing its results for the third quarter ended September 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1. On November 2, 2023, members of the Company’s management will hold a third quarter 2023 earnings conference call to discuss the Company’s financial results and the presentation attached hereto as Exhibit 99.2, will accompany management’s comments.
The press release and earnings conference call presentation contain certain non-GAAP financial measures, including Adjusted Sales, Adjusted Gross Profit and Margin, Adjusted Operating Income (Loss) and Margin, Adjusted Income (Loss) Before Tax, Adjusted Net Income (Loss), Adjusted Earnings (Loss) per Share (“Adjusted EPS”), Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income Tax Expense, Net Debt, Adjusted Net Debt and Adjusted Cash (collectively, the “Non-GAAP Financial Measures”). Management believes that the presentation of the Non-GAAP Financial Measures used in the press release and earnings conference call presentation are useful to both management and investors in their analysis of the Company’s financial position, results of operations and expected results of operations because the Non-GAAP Financial Measures facilitate a period to period comparison of operating results by excluding significant unusual, non-recurring items in 2023 and 2022. For 2023, these items relate to the sales from spot purchase recoveries, after-tax and pre-tax business realignment costs, after-tax and pre-tax Brazilian indirect tax credits, net, after-tax and pre-tax gain on disposal of fixed assets, after-tax and pre-tax environmental remediation costs and adjustments for debt compliance calculations. For 2022, these items relate to pre-tax business realignment costs and adjustments for debt compliance calculations. These non-GAAP financial measures, however, should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures used by the Company may not be comparable to non-GAAP financial measures used by other companies. Adjusted Sales, Adjusted Gross Profit and Margin, Adjusted Operating Income (Loss) and Margin, Adjusted Income (Loss) Before Tax, Adjusted Net Income (Loss), Adjusted EPS, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Income Tax Expense, Net Debt, Adjusted Net Debt and Adjusted Cash should not be considered a substitute for Sales, Gross Profit, Operating Income (Loss), Income (Loss) Before Tax, Net Income (Loss), Earnings (Loss) per Share, Income Tax Expense, Debt or Cash and Cash Equivalents prepared in accordance with GAAP.
ITEM 7.01    Regulation FD Disclosure.
The information set forth in Item 2.02 above is hereby incorporated herein by reference.
The information in this report, including the press release and the earnings conference call presentation furnished as Exhibits 99.1 and 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. In addition, the exhibits furnished herewith contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibits.
ITEM 9.01    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit No.Description
104Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Stoneridge, Inc.
Date: November 1, 2023/s/ Matthew R. Horvath
Matthew R. Horvath
Chief Financial Officer and Treasurer
(Principal Financial Officer)



Exhibit 99.1
tm2229541d1_ex99-1img01a.jpg

FOR IMMEDIATE RELEASE
Stoneridge Reports Strong Third-Quarter 2023 Results
THIRD-QUARTER PERFORMANCE REFLECTS CONTINUED MARGIN EXPANSION DRIVEN BY STRONG OPERATING PERFORMANCE

2024 PRELIMINARY OUTLOOK EXPECTS SALES GROWTH OF AT LEAST 5%,
SIGNIFICANTLY OUTPERFORMING WEIGHTED AVERAGE END-MARKETS


2023 Third-Quarter Results
•Sales of $238.2 million
•Adjusted sales of $237.2 million
•Gross profit of $52.5 million (22.1% of adjusted sales)
•Operating income of $6.5 million
•Adjusted operating income of $7.3 million (3.1% of adjusted sales)
•Adjusted EBITDA of $17.0 million (7.2% of adjusted sales)
•Earnings per share (“EPS”) of $0.08
•Adjusted earnings per share of $0.10

2023 Full-year Guidance
•Refining previously provided guidance ranges to reflect expectation of continued strong margin performance, partially offset by production volume headwinds in the fourth quarter including the expected impact of the UAW strike
◦Adjusted sales of $965.0 - $975.0 million
◦Adjusted gross margin of ~21.5%
◦Adjusted operating margin of ~2.0%
◦Adjusted EPS of $(0.10) - $0.00
▪Midpoint guidance change of ($0.05) aligned with the expected impact of UAW strike of ~($0.05)
◦Adjusted EBITDA margin of ~5.0%
◦Adjusted tax expense of $4.5 - $5.0 million
▪Midpoint guidance change of ~$1.25 million due to increase in expected tax expense as a result of mix of jurisdictional earnings

2024 Preliminary Revenue Guidance
•Providing preliminary 2024 guidance for at least 5% growth, which outpaces weighted-average end-markets by at least 6.5%
NOVI, Mich. – November 1, 2023 – Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2023, with sales of $238.2 million and earnings per share of $0.08. Adjusted sales
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for the third quarter were $237.2 million and adjusted EPS was $0.10. The exhibits attached hereto provide reconciliation detail on normalizing adjustments of Non-GAAP financial measures used in this press release.
For the third quarter of 2023, Stoneridge reported gross profit of $52.5 million (22.1% of adjusted sales). Operating income was $6.5 million and adjusted operating income was $7.3 million (3.1% of adjusted sales), an increase of 70 basis points relative to the second quarter of 2023. Adjusted EBITDA was $17.0 million (7.2% of adjusted sales), an increase of 260 basis points, relative to the second quarter of 2023.
Jim Zizelman, president and chief executive officer, commented, “During the third quarter we continued to take actions to improve our overall margin profile driving significant margin improvement. Our performance was primarily driven by continued material cost improvement and operating cost control resulting in adjusted operating margin expansion of 70 basis points and adjusted EBITDA margin expansion of 260 basis points versus the prior quarter. Despite volatility in our end-markets, we continue to deliver on our commitments driven by an unwavering focus to both execute on our long-term strategy and drive continuous operational excellence. Our third quarter performance is built on improved results from the second quarter as we continued to strengthen our foundation to drive operating performance and grow the Company.”
Zizelman continued, “As we continue to focus on margin performance, we are also focused on executing on the program launches that will drive growth for the Company to significantly outpace our underlying end-markets. During the third quarter, we launched the Smart 2 Tachograph program for commercial vehicles in Europe. This next generation smart tachograph was designed to meet the EU Mobility Package Standards and provides us with significant revenue opportunities with both European OEMs and aftermarket over the next several years. This program is expected to generate approximately $20 million in revenue in 2023 and more than $60 million in revenue in 2024.”
Zizelman concluded, “In addition, we are proud to support the US Department of Energy’s Super Truck II innovation truck program. The DOE has funded four projects to develop and demonstrate cost-effective technologies with the goal of more than doubling the freight efficiency of Class 8 trucks with Navistar, Daimler Truck North America, Peterbilt and Volvo Trucks. MirrorEye® was selected as a partner for all four SuperTruck II teams to help achieve significant increases in freight efficiency through improved fuel economy. We remain well positioned as the industry continues to focus on both vehicle efficiency and safety.”
Third Quarter in Review
Control Devices sales of $90.1 million increased by 0.8% relative to the third quarter of 2022. This increase was primarily due to higher sales in our China passenger and commercial vehicle end-markets as well as the impact of negotiated price increases, partially offset by lower sales in our North America passenger vehicle end-market. Third quarter adjusted operating margin of 6.2% declined by 220 basis points relative to the third quarter of 2022, primarily due to higher direct material costs and slightly higher SG&A and D&D costs.
Electronics adjusted sales of $142.4 million increased by 21.4% relative to the third quarter of 2022. This increase was primarily driven by higher sales volumes in our Europe and North America commercial vehicle end-markets, due in part to new program launches and ramp-ups, and negotiated price increases partially offset by lower sales in our off-highway end-markets Third quarter adjusted operating margin of 6.1% improved by 150 basis points relative to the third quarter of 2022, primarily due to higher contribution from higher sales, including negotiated price increases, and lower material costs. This was partially offset by higher SG&A and D&D costs, including support for new product launches.
Stoneridge Brazil sales of $14.2 million increased by 2.6% relative to sales in the third quarter of 2022, primarily due to favorable foreign currency translation and higher sales in OEM and aftermarket products. Third quarter adjusted operating margin of 5.6% declined by approximately 150 basis points relative to the third quarter of
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2022, primarily due to by higher SG&A and overhead costs partially offset by lower material costs from favorable foreign exchange rate fluctuations.
Relative to the second quarter of 2023, Control Devices sales decreased by 3.2%. This decrease was primarily due to lower sales in our North America passenger vehicle end-market, partially offset by higher sales in our China passenger vehicle end-market. Third quarter adjusted operating margin increased by 40 basis points relative to the second quarter of 2023, primarily due to lower direct labor costs.
Relative to the second quarter of 2023, Electronics adjusted sales decreased by 13.1%. This decrease was due in part to the expected production seasonality as well as the reduced demand in our commercial vehicle and off-highway end-markets. Third quarter adjusted operating margin increased by 80 basis points relative to the second quarter of 2023, primarily due to the step-down in D&D costs compared to the second quarter as elevated D&D spend for program launches declined. This was partially offset by the favorable impact of the one-time benefit of retroactive pricing recognized in the second quarter related to prior periods.
Relative to the second quarter of 2023, Stoneridge Brazil sales decreased by 5.0%. This decrease was primarily due to lower OEM product sales partially offset by higher sales in aftermarket products. Third quarter operating margin decreased by 40 basis points relative to the second quarter of 2023, primarily due to higher overhead and SG&A spend.
Cash and Debt Balances
As of September 30, 2023, Stoneridge had cash and cash equivalents balances totaling $36.8 million. Total debt as of September 30, 2023 was $186.0 million resulting in net debt of $149.2 million. Per the terms of the existing Revolving Credit Facility, the Company reported a net debt to trailing twelve-month EBITDA compliance ratio of 3.11x. The Company is in the advanced stages of refinancing its existing credit facility and anticipates that the refinancing will occur in the near future.
2023 Outlook
The Company is refining the previously guided ranges for its full-year performance including adjusted sales guidance of $965.0 million to $975.0 million, adjusted gross margin guidance of approximately 21.5%, adjusted operating margin guidance of approximately 2.0%, adjusted earnings per share guidance of $(0.10) to $0.00, adjusted EBITDA guidance of approximately 5.0%, of adjusted sales and adjusted tax expense guidance of $4.5 million - $5.0 million.
Matt Horvath, chief financial officer, commented “Our third quarter financial performance continued to build on our second quarter performance as we delivered strong sequential margin expansion. Despite some top-line headwinds related to the UAW strike in the fourth quarter, we are expecting continued EPS expansion in the fourth quarter as we continue to build on a strong foundation and drive earnings momentum into 2024. We are refining our full-year 2023 guidance to reflect our expectation of continued strong margin performance, offset by expected revenue headwinds in the fourth quarter including the expected impact of the UAW strike. While we remain within the guidance set at the beginning of the year, our updated midpoint adjusted EPS guidance has been adjusted by $0.05 to reflect approximately $0.05 of UAW-strike related headwinds.”
Horvath concluded, “We remain focused on building a strong foundation for continued earnings expansion as we capitalize on our robust backlog and impressive portfolio of advanced technologies. We are expecting continued strong growth next year and are issuing preliminary 2024 guidance for at least 5% revenue growth, which outpaces our weighted-average end-markets by at least 6.5%. Our growth will be driven by the continued ramp-up and expansion of our current North American and European MirrorEye programs, the launch of our next and largest MirrorEye program in Europe and the significant continued ramp-up of our Smart 2 tachograph program in Europe. Stoneridge remains well positioned to continue to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation.”
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Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2023 third quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, November 2, 2023, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and manufacturer of highly engineered electrical and electronic systems, components and modules for the automotive, commercial, off-highway and agricultural vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:
•the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;
•fluctuations in the cost and availability of key materials (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and components and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
•global economic trends, competition and geopolitical risks, including impacts from the ongoing global conflict and the related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries;
•our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
•the reduced purchases, loss or bankruptcy of a major customer or supplier;
•the costs and timing of business realignment, facility closures or similar actions;
•a significant change in automotive, commercial, off-highway or agricultural vehicle production;
•competitive market conditions and resulting effects on sales and pricing;
•foreign currency fluctuations and our ability to manage those impacts;
•customer acceptance of new products;
•our ability to successfully launch/produce products for awarded business;
•adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products;
•our ability to protect our intellectual property and successfully defend against assertions made against us;
•liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
•labor disruptions at our facilities, or at any of our significant customers (including the UAW strike which impacted certain customers) or suppliers;
•business disruptions due to natural disasters or other disasters outside of our control;
•the ability to refinance our existing revolving Credit Facility on a timely basis prior to its June 5, 2024 maturity;
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•the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;
•capital availability or costs, including changes in interest rates or market perceptions;
•the failure to achieve the successful integration of any acquired company or business;
•risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and
•the items described in Part I, Item IA (“Risk Factors”) in the Company’s 2022 Form 10-K.
The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2023 and 2022 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted net income, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense, adjusted tax rate, adjusted net debt and adjusted cash are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods.
Adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted net income (loss), adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense, adjusted tax rate, adjusted net debt and adjusted cash should not be considered in isolation or as a substitute for sales, gross profit, operating income, income (loss) before tax, net loss, earnings per share, tax expense, tax rate, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.
For more information, contact Kelly K. Harvey, Director Investor Relations (Kelly.Harvey@Stoneridge.com).

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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)September 30,
2023		December 31,
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$36,758 $54,798 
Accounts receivable, less reserves of $956 and $962, respectively177,202 158,155 
Inventories, net183,177 152,580 
Prepaid expenses and other current assets39,281 44,018 
Total current assets436,418 409,551 
Long-term assets:
Property, plant and equipment, net106,788 104,643 
Intangible assets, net45,180 45,508 
Goodwill33,789 34,225 
Operating lease right-of-use asset11,136 13,762 
Investments and other long-term assets, net45,463 44,416 
Total long-term assets242,356 242,554 
Total assets$678,774 $652,105 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit facility$183,918 $— 
Current portion of debt2,055 1,450 
Accounts payable131,094 110,202 
Accrued expenses and other current liabilities64,847 66,040 
Total current liabilities381,914 177,692 
Long-term liabilities:
Revolving credit facility— 167,802 
Deferred income taxes7,407 8,498 
Operating lease long-term liability8,054 10,594 
Other long-term liabilities8,057 6,577 
Total long-term liabilities23,518 193,471 
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued— — 
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,548 and 27,341 shares outstanding at September 30, 2023 and December 31, 2022, respectively, with no stated value— — 
Additional paid-in capital226,382 232,758 
Common Shares held in treasury, 1,418 and 1,625 shares at September 30, 2023 and December 31, 2022, respectively, at cost(43,408)(50,366)
Retained earnings193,485 201,692 
Accumulated other comprehensive loss(103,117)(103,142)
Total shareholders' equity273,342 280,942 
Total liabilities and shareholders' equity$678,774 $652,105 
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
September 30,		Nine months ended
September 30,
(in thousands, except per share data)2023202220232022
Net sales$238,164 $226,757 $746,303 $668,751 
Costs and expenses:
Cost of goods sold185,689 177,317 590,538 539,304 
Selling, general and administrative28,111 27,444 91,465 83,781 
Design and development17,852 16,133 57,486 48,715 
Operating income (loss)6,512 5,863 6,814 (3,049)
Interest expense, net3,313 1,845 9,179 4,848 
Equity in loss (earnings) of investee141 (34)641 424 
Other (income) expense, net(1,383)2,332 2,152 3,067 
Income (loss) before income taxes4,441 1,720 (5,158)(11,388)
Provision for income taxes2,270 989 3,049 2,895 
Net income (loss)$2,171 $731 $(8,207)$(14,283)
Income (loss) per share:
Basic$0.08 $0.03 $(0.30)$(0.52)
Diluted$0.08 $0.03 $(0.30)$(0.52)
Weighted-average shares outstanding:
Basic27,48427,28127,42827,250
Diluted27,73427,52427,42827,250
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, (in thousands)20232022
OPERATING ACTIVITIES:
Net loss$(8,207)$(14,283)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation19,800 20,183 
Amortization, including accretion and write-off of deferred financing costs6,077 6,187 
Deferred income taxes(2,732)(2,834)
Loss of equity method investee641 424 
Gain on sale of fixed assets(861)(95)
Share-based compensation expense2,272 4,421 
Excess tax deficiency related to share-based compensation expense74 266 
Gain on settlement of net investment hedge— (3,716)
Changes in operating assets and liabilities:
Accounts receivable, net(21,335)(28,333)
Inventories, net(33,651)(24,333)
Prepaid expenses and other assets7,473 (15,510)
Accounts payable23,322 18,366 
Accrued expenses and other liabilities1,459 15,119 
Net cash used for operating activities(5,668)(24,138)
INVESTING ACTIVITIES:
Capital expenditures, including intangibles(28,584)(22,877)
Proceeds from sale of fixed assets1,841 95 
Proceeds from settlement of net investment hedge— 3,820 
Investment in venture capital fund, net(200)(700)
Net cash used for investing activities(26,943)(19,662)
FINANCING ACTIVITIES:
Revolving credit facility borrowings81,365 21,817 
Revolving credit facility payments(64,568)(18,000)
Proceeds from issuance of debt27,579 30,513 
Repayments of debt(27,145)(32,789)
Earn-out consideration cash payment— (6,276)
Repurchase of Common Shares to satisfy employee tax withholding(1,697)(760)
Net cash provided by (used for) financing activities15,534 (5,495)
Effect of exchange rate changes on cash and cash equivalents(963)(3,915)
Net change in cash and cash equivalents(18,040)(53,210)
Cash and cash equivalents at beginning of period54,798 85,547 
Cash and cash equivalents at end of period$36,758 $32,337 
Supplemental disclosure of cash flow information:
Cash paid for interest, net$9,248 $4,992 
Cash paid for income taxes, net$8,453 $5,808 
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Regulation G Non-GAAP Financial Measure Reconciliations
Reconciliation to US GAAP
Exhibit 1 - Reconciliation of Adjusted EPS
(USD in millions, except EPS)Q3 2023Q3 2023 EPS
Net Income$2.2 $0.08 
Add: After-Tax Business Realignment Costs1.0 0.04 
Add: After-Tax Brazilian Indirect Tax Credits, Net(0.3)(0.01)
Adjusted Net Income$2.9 $0.10 


Exhibit 2 – Reconciliation of Adjusted EBITDA
(USD in millions)Q4 2022Q1 2023Q2 2023Q3 2023
Income (Loss) Before Tax$0.7 $(8.1)$(1.5)$4.4 
Interest expense, net2.2 2.7 3.1 3.3 
Depreciation and amortization8.2 8.3 8.4 8.5 
EBITDA$11.1 $3.0 $10.0 $16.2 
Add: Pre-Tax Business Realignment Costs— 1.3 1.9 1.2 
Less: Pre-Tax Gain on Disposal of Fixed Assets— (0.8)— — 
Add: Pre-Tax Environmental Remediation Costs— 0.1 — — 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net— — — (0.5)
Adjusted EBITDA$11.1 $3.6 $11.9 $17.0 

Exhibit 3 – Adjusted Gross Profit

(USD in millions)Q2 2023Q3 2023
Gross Profit$60.5 $52.5 
Add: Pre-Tax Business Realignment Costs0.5 — 
Adjusted Gross Profit$60.9 $52.5 

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Exhibit 4 - Adjusted Operating Income (Loss)

(USD in millions)Q1 2023Q2 2023Q3 2023
Operating Income (Loss)$(4.0)$4.3 $6.5 
Add: Pre-Tax Business Realignment Costs1.3 1.9 1.2 
Less: Pre-Tax Gain on Disposal of Fixed Assets(0.8)— — 
Add: Pre-Tax Environmental Remediation Costs0.1 — — 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net— — (0.5)
Adjusted Operating Income (Loss)$(3.4)$6.2 $7.3 

Exhibit 5 – Segment Adjusted Operating Income
Reconciliation of Control Devices Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Control Devices Operating Income$7.5 $5.1 $5.5 
Add: Pre-Tax Business Realignment Costs— 0.4 0.1 
Control Devices Adjusted Operating Income$7.5 $5.5 $5.6 

Reconciliation of Electronics Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Electronics Operating Income $5.4 $7.4 $7.6 
Add: Pre-Tax Business Realignment Costs— 1.3 1.1 
Electronics Adjusted Operating Income $5.4 $8.8 $8.7 

Reconciliation of Stoneridge Brazil Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Stoneridge Brazil Operating Income$0.9 $0.9 $1.2 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net0.0 — (0.5)
Add: Pre-Tax Business Realignment Costs0.1 — — 
Stoneridge Brazil Adjusted Operating Income$1.0 $0.9 $0.8 

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Exhibit 6 – Reconciliation of Adjusted Sales
(USD in millions)Q3 2022Q2 2023Q3 2023
Sales$226.8 $266.8 $238.2 
Less: Sales from Spot Purchases Recoveries (12.8)(4.4)(0.9)
Adjusted Sales$214.0 $262.4 $237.2 

Exhibit 7 – Reconciliation of Electronics Adjusted Sales

(USD in millions)Q3 2022Q2 2023Q3 2023
Electronics Sales$130.0 $168.3 $143.3 
Less: Sales from Spot Purchases Recoveries (12.8)(4.4)(0.9)
Electronics Adjusted Sales$117.2 $163.9 $142.4 

Exhibit 8 – Reconciliation of Adjusted Tax Rate


(USD in millions)Q3 2023Tax Rate
Income Before Tax$4.4 
Add: Pre-Tax Business Realignment Costs1.2 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.5)
Adjusted Income Before Tax$5.2 
Income Tax Expense2.3 51.1 %
Add: Tax Impact from Pre-Tax Adjustments- 
Adjusted Income Tax Expense$2.3 44.8 %


11

Exhibit 9 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)Q4 2022Q1 2023Q2 2023Q3 2023
Income (Loss) Before Tax$0.7 $(8.1)$(1.5)$4.4 
Interest Expense, net2.2 2.7 3.1 3.3 
Depreciation and Amortization8.2 8.3 8.4 8.5 
EBITDA$11.1 $3.0 $10.0 $16.2 
Compliance adjustments:
Add: Adjustments from Foreign Currency Impact2.8 1.4 3.1 0.4 
Add: Extraordinary, Non-recurring or Unusual items0.1 0.2 — 0.5 
Add: Cash Restructuring Charges0.2 1.4 0.5 0.1 
Add: Adjustment to Autotech Investments0.4 0.2 0.3 0.1 
Adjusted EBITDA (Compliance)$14.6 $6.1 $13.9 $17.4 
Adjusted TTM EBITDA (Compliance)$52.1 
Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)Q3 2023
Total Cash and Cash Equivalents$36.8 
Less: 35% Cash Foreign Locations(11.5)
Total Adjusted Cash (Compliance)$25.2 
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)Q3 2023
Total Debt$186.0 
Outstanding Letters of Credit1.6 
Total Adjusted Debt (Compliance)$187.6 
Adjusted Net Debt (Compliance)$162.3 
Compliance Leverage Ratio (Net Debt / TTM EBITDA)3.11x

12
Q3 2023 Results November 2, 2023 Exhibit 99.2

 
2 Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the ability of our suppliers to supply us parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output; fluctuations in the cost and availability of key materials (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and components and our ability to offset cost increases through negotiated price increases with our customers or other cost actions, as necessary; global economic trends, competition and geopolitical risks, including impacts from the ongoing global conflicts and the related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries; our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions; the reduced purchases, loss or bankruptcy of a major customer or supplier; the costs and timing of business realignment, facility closures or similar actions; a significant change in automotive, commercial, off- highway or agricultural vehicle production; competitive market conditions and resulting effects on sales and pricing; foreign currency fluctuations and our ability to manage those impacts; customer acceptance of new products; our ability to successfully launch/produce products for awarded business; adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products; labor disruptions at our facilities or at any of our significant customers (including the current UAW strike impacting certain customers) or suppliers; the ability to refinance our existing revolving Credit Facility on a timely basis to its June 5, 2024 maturity; the amount of Stoneridge’s indebtedness and the restrictive covenants contained in the agreements governing its indebtedness, including its revolving credit facility; capital availability or costs, including changes in interest rates or market perceptions; the occurrence or non-occurrence of circumstances beyond Stoneridge’s control; and the items described in “Risk Factors” and other uncertainties or risks discussed in Stoneridge’s periodic and current reports filed with the Securities and Exchange Commission. Important factors that could cause the performance of the commercial vehicle and automotive industry to differ materially from those in the forward- looking statements include factors such as (1) continued economic instability or poor economic conditions in the United States and global markets, (2) changes in economic conditions, housing prices, foreign currency exchange rates, commodity prices, including shortages of and increases or volatility in the price of oil, (3) changes in laws and regulations, (4) the state of the credit markets, (5) political stability, (6) international conflicts and (7) the occurrence of force majeure events. These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance; Stoneridge’s actual results of operations, financial condition and liquidity, and the development of the industry in which Stoneridge operates may differ materially from those described in or suggested by the forward-looking statements contained in this presentation. In addition, even if Stoneridge’s results of operations, financial condition and liquidity, and the development of the industry in which Stoneridge operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. This presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. Any forward-looking statements in this presentation speak only as of the date of this presentation, and Stoneridge undertakes no obligation to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data. Stoneridge does not undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Rounding Disclosure: There may be slight immaterial differences between figures represented in our public filings compared to what is shown in this presentation. The differences are the result of rounding due to the representation of values in millions rather than thousands in public filings.

 
3 2023 Guidance Updated 2023 Guidance Previous $965.0 - $975.0 million$960.0 – $990.0 million ~21.5%20.5% - 21.25% ~2.0%1.5% - 2.25% $4.5 - $5.0 million$3.0 – 4.0 million ($0.10) – $0.00($0.10) - $0.10 ~5.0% $50.9 - $58.4 million 5.3% - 5.9% Overview of Q3 Achievements  Q3 results exceeded prior expectations - adjusted EPS of $0.10, an increase of $0.15 vs. Q2  Continued strong gross margin performance (22.1%)  Continued adjusted operating margin and EBITDA margin expansion (+70 bps and +260 bps vs. Q2, respectively)  Refining full-year 2023 guidance to reflect continued strong margin performance, partially offset by Q4 revenue headwinds and UAW strike  Midpoint adjusted EPS guidance reduced by ($0.05) to reflect ($0.05) of expected UAW-strike related headwind  Launch of Smart 2 Tachograph during the quarter driving significant OEM and aftermarket opportunities in 2023 and beyond  MirrorEye featured on the DOE Super Truck II innovation trucks for Navistar, Daimler Truck North America, Peterbilt and Volvo Trucks  Announcing full-year 2024 preliminary revenue guidance of 5%+ revenue growth vs. 2023 midpoint guidance  6.5% outperformance vs. weighted average end-markets Q3 2023 Financial Performance and Q4 Guidance 2023 Adjusted Guidance* Q3 YTD AdjustedAdjustedReported $731.9 million$237.2 million$238.2 millionSales $156.4 million 21.4% $52.5 million 22.1% $52.5 million 22.0% Gross Profit Margin $10.1 million 1.4% $7.3 million 3.1% $6.5 million 2.7% Operating Income Margin $3.5 million$2.3 million$2.3 millionTax Expense $(0.20)$0.10$0.08EPS $32.5 million 4.4% $17.0 million 7.2% - EBITDA Margin *Full-year 2023 guidance is based on adjusted financial metrics

 
4 Financial Summary Q3 operating margin improved by ~200 bps and EBITDA margin improved by ~380 bps vs. Q2 2023, excluding non-recurring retroactive price benefit in Q2 Q2 2023 vs. Q3 2023 Adjusted Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA $’s in USD Millions Q3 Financial Highlights ▸ Adjusted sales declined vs. Q2 2023, due in part to seasonal production, as well as electric vehicle customer production volumes underperforming expectations and reduced demand in our commercial vehicle end- markets relative to prior expectations ▸ Q3 adjusted sales were impacted by unfavorable foreign currency translation of ~($1.3) million vs. Q2 ▸ The UAW strike had a de minimis impact to Q3 ▸ Excluding the one-time favorable impact of retroactive pricing of ~$3.3 million recognized in the second quarter applicable to prior periods: ▸ Adjusted operating margin increased by ~200 bps in Q3 vs. Q2, primarily due to significant step-down in D&D ▸ Adjusted EBITDA and EBITDA margin, increased by $9.3 million and 380 bps, respectively vs. Q2 +200 bps +380 bps $60.9 $57.6 $52.5 40 50 60 70 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023 22.2% 22.1% 23.2% $6.2 $2.9 $7.3 0 5 10 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023 2.4% 1.1% 3.1% $11.9 $8.6 $17.0 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023 4.5% 3.3% 7.2% $262.4 $259.1 $237.2 200 220 240 260 280 300 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023

 
5 UAW Strike Update UAW strike and residual impact created volatility in Q4 production forecasts Continue to focus on mitigating actions and careful cost control to limit total impact Total 2023 Q4 Estimated Impact Q3 Actual ($7.0) Million ~($6.5) Million~($0.5) Million Revenue ($2.0) Million ~($1.9) Million~($0.1) Million Operating Income UAW Strike Impact ▸ After six weeks of escalating negotiations and strikes, the United Auto Workers (UAW) have tentative agreements with all three domestic OEMs • First strikes effective September 15th, with several additional plant strikes announced • UAW announced tentative agreement with Ford on October 25th, Stellantis on October 29th and GM on October 30th ▸ Guidance assumes continued, but reduced expected impact in November as production ramps-up ▸ Guidance includes $4.0m in revenue and $1.1m in operating income impact to-date and additional ~$3.0m of revenue and ~$900k of operating income impact expected as production ramps back up – total impact of $0.05 EPS in guidance Mitigating Actions ▸ We are focused on responding to strike impacts as appropriate with consideration for an efficient ramp-up ▸ Labor realignment as strikes impacted certain production lines ▸ Company-wide cost control to limit discretionary spending *Estimated adjusted revenue exposure based on year-to-date 2023 adjusted revenue for both direct to OEM and through all tier suppliers Revenue Exposure by Customer* UAW Strike Impact 2023 Ford 12% GM 9% Stellantis 7% Mack 1% All Others 71%

 
6 New Program Launch – Smart 2 Tachograph Smart 2 Tachograph program launched in Europe in Q3 to meet regulatory requirements Expecting ~$20 million in sales in 2023 and $60 million+ in 2024 in both OEM and Aftermarket ▸ Launched our next generation smart tachograph (Smart 2 Tachograph) in Europe in Q3 2023 ▸ Designed to meet the EU Mobility Package Standards ▸ Required in both OEM applications as well as aftermarket / retrofit applications ▸ Required to be on newly registered CV above 3.5T that are engaged in international road transport by end of 2023 ▸ Incremental regulations requiring adoption on various vehicle types come online in Europe driving continued growth ▸ Market primarily served by Stoneridge and one competitor with regulatory barriers to entry for others ▸ Estimating revenue of ~$20 million in 2023 and $60 million+ in 2024 related to Smart 2 tachograph for both OEM and aftermarket opportunities Smart 2 Tachograph Program Launch

 
7 MirrorEye Continues to Lead the CMS Market MirrorEye continues to ramp-up and gain momentum in North America – incremental OEM launches in 2024 and 2025 Daimler Truck North America Navistar, Inc. Volvo Technology of AmericaCummins, Inc. – Peterbilt MirrorEye North America ▸ In 2016, the Department of Energy (DOE) launched the SuperTruck II program with four OEMs with a goal of achieving a 120% increase in freight efficiency ▸ All four SuperTruck II teams installed MirrorEye on their trucks to increase freight efficiency and improve driver visibility ▸ MirrorEye launched with Kenworth in North American applications in Q2 2023 ▸ MirrorEye expected to launch with Peterbilt soon ▸ Two additional North American OEMs launching in 2025

 
8 Summary Summary  Remain focused on operational excellence and material cost reductions driving continued strong margin performance in Q3 and sequential improvement over Q2 Operating Margin +70 bps vs. Q2 EBITDA Margin +260 bps vs. Q2  Launched the Smart 2 Tachograph in Europe which is expected to drive significant growth through both OEM and aftermarket sales to meet regulatory requirements  MirrorEye continues to expand in North America. Announced partnerships with DOE SuperTruck II programs – OEMs utilizing MirrorEye to meet freight efficiency goals through improved fuel economy Forward Outlook  Expecting revenue growth and continued EPS expansion in Q4 despite potential for revenue headwinds including UAW strike impact 2023 Full-Year guidance adjusted to reflect ($0.05) of expected impact from UAW strike  Preliminary 2024 guidance of 5%+ revenue growth (6.5%+ outperformance vs. our weighted average underlying end markets) New program launches and ramp-up of existing programs expected to drive outperformance vs. underlying markets Driving shareholder value by executing on our long-term strategy, driving growth and focusing on operational excellence

 
9 Financial Update

 
10 3rd Quarter 2023 Financial Summary 3rd Quarter 2023 Financial Results Adjusted sales of $237.2 million • Control Devices sales of $90.1 million • Electronics adjusted sales of $142.4 million • Stoneridge Brazil sales of $14.2 million Adjusted operating income of $7.3 million (3.1% adjusted operating margin), an increase of ~70 bps over Q2 2023 • Control Devices adjusted operating income of $5.6 million (6.2% adjusted operating margin), an increase of ~40 bps over Q2 2023 • Electronics adjusted operating income of $8.7 million (6.1% adjusted operating margin), an increase of ~80 bps over Q2 2023 • Stoneridge Brazil adjusted operating income of $0.8 million (5.6% adjusted operating margin) 2023 Q3 and YTD Financial Results Implied Q4 2023 Guidance* 2023 Guidance Updated ~$238.0 million$965.0 - $975.0 million ~22.0%~21.5% ~3.9%~2.0% ~$0.9 – $1.4 million$4.5 - $5.0 million $0.10 - $0.20($0.10) – $0.00 ~6.8%~5.0% 2023 Q4 and Full-Year Guidance* Q3 YTD AdjustedQ3 AdjustedQ3 Reported $731.9 million$237.2 million$238.2 millionSales $156.4 million 21.4% $52.5 million 22.1% $52.5 million 22.0% Gross Profit Margin $10.1 million 1.4% $7.3 million 3.1% $6.5 million 2.7% Operating Income Margin $3.5 million$2.3 million$2.3 millionTax Expense $(0.20)$0.10$0.08EPS $32.5 million 4.4% $17.0 million 7.2% - EBITDA Margin *2023 guidance is based on adjusted financial metrics

 
11 Q3 2023 Performance Drivers Operational performance and continued focus on cost management resulted in Q3 outperformance vs. prior expectations despite lower production volumes and distressed supplier related costs Q3 Operating Performance Reduced sales versus prior expectations primarily due to slower than expected ramp-up for certain electrified vehicle platforms in our passenger car markets and reduced demand in our commercial vehicle end-markets Strong gross margin primarily due to continued material cost improvements and favorable operating performance Additional costs incurred during the quarter related to a specific distressed supplier of approximately ($0.02) As expected, D&D expenses reduced vs. Q2 as program launch related costs continued to decline Q3 Non-operating Impact Favorable FX primarily related to the non-operating impact of foreign currency adjustments on intercompany loan balances Incremental tax expense vs. prior expectations primarily due to the change in jurisdictional mix of pre-tax earnings Material Cost Improvement and Operating Performance ~$0.11 SG&A and D&D Costs ~Net Operating Impact of ~$0.07 Non-Operating Impact of ~$0.01 Q3 Operating Performance Q3 Non-Operating Impact Non-operating FX ~$0.05 Production Volumes ~($0.02) Distressed Supplier Costs ~($0.02) Incremental Tax ~($0.04)

 
12 Control Devices Financial Performance Continue to focus on actions to reduce material costs and improve operational excellence in 2024 Control Devices Q4 2023 and 2024 Expectations ▸ Expecting slightly lower sales in Q4 vs. Q3 primarily due to the UAW strike impact on US OEM production volumes ▸ Focus on driving manufacturing performance efficiency and cost control to mitigate production volatility as a result of UAW strikes ▸ Continue to focus on actions to reduce material costs and improve operational excellence in 2024 ▸ Continue to invest in and grow current capabilities targeted to drivetrain agnostic applications and technologies and system-based solutions Q2 2023 vs. Q3 2023 Sales Adjusted Operating Income $’s in USD Millions Control Devices Q3 Summary Sales declined by 3.2% vs. Q2 2023 Lower sales in the North America passenger car end market primarily due to slower than expected ramp-up of certain electrified vehicle programs partially offset by higher sales in China Adjusted operating income improved by ~40 basis points vs. Q2 2023 Primarily due to reduced labor costs relative to prior quarter, partially offset by the one-time impact of distressed supplier-related expenses of ~$0.7 million Stable SG&A and D&D spend as a result of continued cost control $5.5 $5.6 5.9% 6.2% 5.3 5.4 5.5 5.6 Q2 2023 Q3 2023 $93.1 $90.1 $78.0 $83.0 $88.0 $93.0 $98.0 Q2 2023 Q3 2023 ~+40 bps

 
13 Electronics Financial Performance Expecting significant year-over-year growth in 2024 Electronics Q4 2023 and 2024 Expectations Expecting revenue growth in Q4 due to ramp-up of recently launched programs including the Smart 2 Tachograph program Expecting margin expansion in Q4, primarily driven by lower D&D costs as a result of the timing of customer reimbursements Expecting significant revenue growth in 2024 as a result of continued ramp-up and expansion of recently launched MirrorEye and Smart 2 tachograph programs and new MirrorEye launches Q2 2023 vs. Q3 2023 Adjusted Sales Adjusted Operating Income $’s in USD Millions Electronics Q3 Summary Adjusted sales declined by 11.3% vs. Q2 2023, excluding one-time favorable impact of retroactive pricing of $3.3 million in Q2 related to prior periods Due in part to expected production seasonality, as well as reduced demand in our on- and off- highway commercial vehicle end markets Q3 adjusted operating margin improved by ~270 bps vs. Q2 2023, excluding the one-time favorable impact of retroactive pricing in Q2 related to prior periods Primarily driven by the significant step-down in D&D costs relative to Q2 and lower SG&A costs $8.8 $5.5 $8.7 0 5 10 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023 5.4% 3.4% 6.1% $163.9 $160.6 $142.4 Q2 2023 Q2 2023 Ex. Retro Price Q3 2023 ~+270 bps

 
14 Stoneridge Brazil Financial Performance Expecting relatively stable performance despite continued macroeconomic challenges Focus remains on continuing to expand to support global Electronics business Stoneridge Brazil Q4 2023 and 2024 Expectations Expecting relative stability despite continued challenging overall macroeconomic conditions for the remainder of 2023 and into 2024 Focus remains on utilizing engineering resources to support global Electronics business Stoneridge Brazil Q3 Summary Q3 sales declined by $0.7 million vs. Q2 2023 Primarily due to lower OEM sales partially offset by higher sales in aftermarket products during the quarter Operating income remained relatively flat vs. Q2 2023 $’s in USD Millions Q2 2023 vs. Q3 2023 Sales Operating Income $’s in USD Millions $14.9 $14.2 Q2 2023 Q3 2023 $0.9 $0.8 6.0% 5.6% Q2 2023 Q3 2023

 
15 2023 Adjusted EPS Guidance (Updated) Drivers of Updated 2023 Full-Year Adjusted EPS Guidance Full-year adjusted EPS guidance, excluding UAW strike impact, inline with prior guidance Updated guidance refined to reflect ($0.05) expected impact of UAW strike Updated 2023 Guidance Drivers Q3 adjusted EPS of $0.10 outperformed previous expectations by ~$0.08 Expecting reduced revenue in Q4 (ex. UAW impact) vs. prior expectations primarily due to lower production volumes for certain electrified vehicle programs and reduced demand in our on- and off-highway commercial vehicle end-markets Expecting incremental tax expense in Q4 vs. prior expectations primarily due to the change in jurisdictional mix of pre-tax earnings Excluding impact of the UAW strike, adjusted midpoint guidance approximately in-line with prior expectations UAW strike expected to impact 2023 results by ~$0.05 ($0.10) - $0.00 ($0.10) - $0.10

 
16 2024 Preliminary Revenue Guidance Expecting continued strong revenue growth in 2024 (5%+ revenue growth) Preliminary 2024 revenue guidance implies market outperformance of 6.5%+ driven by program launches and ramp-ups 2024 Preliminary Revenue Guidance ▸ Expecting continued strong revenue growth in 2024 (5%+ revenue growth) ▸ Based on current production forecasts, our weighted average underlying end markets are expected to decline by 1.5% in 2024 vs. 2023 ▸ Programs launches and ramp-up of recently launched programs expected to generate significantly above-market (6.5%+) revenue growth • Second OEM MirrorEye program launching in Europe in 1st half 2024 • Expecting continued ramp-up of Kenworth OEM MirrorEye program launched in 2023 and Peterbilt program to be launched shortly • Smart 2 Tachograph growth driven by both the OE and aftermarket end-markets *Based on IHS production forecasts for October 2023 (LVP) and Q3 2023 IHS (MHCV) $’s in USD Millions Weighted Avg End Markets Expected to Decline by ~1.5% 5%+ Revenue Growth

 
17 Summary 2023 Q3 Summary ▸ Control Devices – Continued operating performance improvement primarily due to lower direct labor costs and focused operational cost control ▸ Electronics – Strong margin expansion primarily due to material cost improvement and significant step down in D&D costs ▸ Stoneridge Brazil – Stable performance. Focus remains on supporting global engineering initiatives and growth in OEM business to support global customers locally. 2023 Outlook and Preliminary 2024 Guidance ▸ Guidance implies continued earnings growth in Q4 with relatively stable sales ▸ Excluding expected impact of UAW strike, 2023 full-year adjusted EPS guidance inline with previously provided guidance ▸ Expecting UAW strike to impact 4Q by approximately $0.05 EPS – updating full-year adjusted EPS guidance to midpoint of ($0.05) to reflect UAW strike impact ▸ Preliminary full-year 2024 revenue guidance of 5%+ growth • Preliminary 2024 revenue guidance implies 6.5%+ underlying end-market outperformance Continued strong sales growth, margin expansion and focus on operational excellence providing foundation for long-term shareholder value creation

 
18 Appendix

 
19 Income Statement CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Nine months ended September 30, Three months ended September 30, 2022202320222023(in thousands, except per share data) $ 668,751$ 746,303$ 226,757$ 238,164Net sales Costs and expenses: 539,304590,538177,317185,689Cost of goods sold 83,78191,46527,44428,111Selling, general and administrative 48,71557,48616,13317,852Design and development (3,049)6,8145,8636,512Operating income (loss) 4,8489,1791,8453,313Interest expense, net 424641(34)141Equity in loss (earnings) of investee 3,0672,1522,332(1,383)Other (income) expense, net (11,388)(5,158)1,7204,441Income (loss) before income taxes 2,8953,0499892,270Provision for income taxes $ (14,283)$ (8,207)$ 731$ 2,171Net income (loss) Income (loss) per share: $ (0.52)$ (0.30)$ 0.03$ 0.08Basic $ (0.52)$ (0.30)$ 0.03$ 0.08Diluted Weighted-average shares outstanding: 27,25027,42827,28127,484Basic 27,25027,42827,52427,734Diluted

 
20 Balance Sheet

 
21 Statement of Cash Flows

 
22 Statement of Cash Flows (Cont.)

 
23 Segment Financial Information NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data, unless otherwise stated) (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries.

 
24 Reconciliations to US GAAP

 
25 Reconciliations to US GAAP This document contains information about Stoneridge's financial results which is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in the appendix of this document. The provision of these non- GAAP financial measures is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this document and the adjustments that management can reasonably predict.

 
26 Reconciliations to US GAAP Reconciliation of Q3 2023 Adjusted EPS Q3 2023 EPSQ3 2023(USD in millions, except EPS) $ 0.08$ 2.2Net Income 0.041.0Add: After-Tax Business Realignment Costs (0.01)(0.3)Add: After-Tax Brazilian Indirect Tax Credits, Net $ 0.10$ 2.9Adjusted Net Income Reconciliation of Q3 2023 YTD Adjusted EPS Q3 YTD 2023 EPSQ3 YTD 2023(USD in millions, except EPS) $ (0.30)$ (8.2)Net Loss 0.133.6Add: After-Tax Business Realignment Costs (0.01)(0.3)Add: After-Tax Brazilian Indirect Tax Credits, Net —0.1Add: After-Tax Environmental Remediation Costs (0.02)(0.6)Less: After-Tax Gain on Disposal of Fixed Assets $ (0.20)$ (5.5)Adjusted Net Loss

 
27 Reconciliations to US GAAP Reconciliation of Adjusted Gross Profit Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 155.8$ 52.5$ 60.5$ 42.8Gross Profit 0.7—0.50.2Add: Pre-Tax Business Realignment Costs $ 156.4$ 52.5$ 60.9$ 43.0Adjusted Gross Profit Reconciliation of Adjusted Operating Income (Loss) Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 6.8$ 6.5$ 4.3$ (4.0)Operating Income (Loss) 4.41.21.91.3Add: Pre-Tax Business Realignment Costs (0.8)——(0.8)Less: Pre-Tax Gain on Disposal of Fixed Assets 0.1——0.1Add: Pre-Tax Environmental Remediation Costs (0.5)(0.5)——Add: Pre-Tax Brazilian Indirect Tax Credits, Net $ 10.1$ 7.3$ 6.2$ (3.4)Adjusted Operating Income (Loss)

 
28 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA Q3 YTD 2023Q3 2023Q2 2023Q1 2023Q4 2022(USD in millions) $ (5.2)$ 4.4$ (1.5)$ (8.1)$ 0.7Income (Loss) Before Tax 9.23.33.12.72.2Interest expense, net 25.28.58.48.38.2Depreciation and amortization $ 29.2$ 16.2$ 10.0$ 3.0$ 11.1EBITDA 4.41.21.91.3—Add: Pre-Tax Business Realignment Costs (0.8)——(0.8)—Less: Pre-Tax Gain on Disposal of Fixed Assets 0.1——0.1—Add: Pre-Tax Environmental Remediation Costs (0.5)(0.5)———Add: Pre-Tax Brazilian Indirect Tax Credits, Net $ 32.5$ 17.0$ 11.9$ 3.6$ 11.1Adjusted EBITDA

 
29 Reconciliations to US GAAP Reconciliation of Adjusted Tax Rate Tax RateQ3 2023(USD in millions) $ 4.4Income Before Tax 1.2Add: Pre-Tax Business Realignment Costs (0.5)Add: Pre-Tax Brazilian Indirect Tax Credits, Net $ 5.2Adjusted Income Before Tax 51.1 %2.3Income Tax Expense -Add: Tax Impact from Pre-Tax Adjustments 44.8 %$ 2.3Adjusted Income Tax Expense Reconciliation of Adjusted Tax Rate Q3 YTD 2023 Tax RateQ3 YTD 2023(USD in millions) $ (5.2)Loss Before Tax 4.4Add: Pre-Tax Business Realignment Costs (0.5)Add: Pre-Tax Brazilian Indirect Tax Credits, Net 0.1Add: Pre-Tax Environmental Remediations Costs (0.8)Less: Pre-Tax Gain on Disposal of Fixed Assets $ (1.9)Adjusted Loss Before Tax (59.1)%3.0Income Tax Expense 0.5Add: Tax Impact from Pre-Tax Adjustments nm$ 3.5Adjusted Income Tax Expense

 
30 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Operating Income Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 12.6$ 5.5$ 5.1$ 2.1Control Devices Operating Income (0.8)——(0.8)Less: Pre-Tax Gain on Disposal of Fixed Assets 0.1——0.1Add: Pre-Tax Environmental Remediation Costs 0.50.10.4—Add: Pre-Tax Business Realignment Costs $ 12.5$ 5.6$ 5.5$ 1.4Control Devices Adjusted Operating Income Reconciliation of Electronics Adjusted Operating Income Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 16.5$ 7.6$ 7.4$ 1.4Electronics Operating Income 2.71.11.30.3Add: Pre-Tax Business Realignment Costs $ 19.2$ 8.7$ 8.8$ 1.7Electronics Adjusted Operating Income Reconciliation of Stoneridge Brazil Adjusted Operating Income Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 3.5$ 1.2$ 0.9$ 1.3Stoneridge Brazil Operating Income (0.5)(0.5)——Add: Pre-Tax Brazilian Indirect Tax Credits, Net $ 3.0$ 0.8$ 0.9$ 1.3Stoneridge Brazil Adjusted Operating Income

 
31 Reconciliations to US GAAP Reconciliation of Adjusted Sales Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 746.3$ 238.2$ 266.8$ 241.3Sales (14.4)(0.9)(4.4)(9.1)Less: Sales from Spot Purchases Recoveries $ 731.9$ 237.2$ 262.4$ 232.2Adjusted Sales Reconciliation of Electronics Adjusted Sales Q3 YTD 2023Q3 2023Q2 2023Q1 2023(USD in millions) $ 461.2$ 143.3$ 168.3$ 149.6Electronics Sales (14.4)(0.9)(4.4)(9.1)Less: Sales from Spot Purchases Recoveries $ 446.8$ 142.4$ 163.9$ 140.5Electronics Adjusted Sales

 
v3.23.3
Cover
Nov. 01, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 01, 2023
Entity Registrant Name STONERIDGE, INC.
Entity Incorporation, State or Country Code OH
Entity File Number 001-13337
Entity Tax Identification Number 34-1598949
Entity Address, Address Line One 39675 MacKenzie Drive
Entity Address, Address Line Two Suite 400
Entity Address, City or Town Novi
Entity Address, State or Province MI
Entity Address, Postal Zip Code 48377
City Area Code 248
Local Phone Number 489-9300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares, without par value
Trading Symbol SRI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001043337
Amendment Flag false
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