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8-K - STONERIDGE INCv224258_8k.htm
Exhibit 99.1
 
Consolidated Balance Sheets, as Adjusted
           
(Unaudited)
           
             
As of December 31 (in thousands)
 
2010
   
2009
 
             
ASSETS
           
             
Current assets:
           
Cash and cash equivalents
  $ 71,974     $ 91,907  
Accounts receivable, less reserves of $2,013 and $2,350, respectively
    102,600       81,272  
Inventories, net
    54,959       42,654  
Prepaid expenses and other current assets
    20,443       19,320  
Total current assets
    249,976       235,153  
                 
Long-term assets:
               
Property, plant and equipment, net
    76,576       76,991  
Investments and other long-term assets, net
    60,184       54,864  
Total long-term assets
    136,760       131,855  
Total assets
  $ 386,736     $ 367,008  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Current liabilities:
               
Accounts payable
  $ 68,341     $ 50,947  
Accrued expenses and other current liabilities
    44,442       38,900  
Total current liabilities
    112,783       89,847  
                 
Long-term liabilities:
               
Long-term debt
    167,903       183,431  
Other long-term liabilities
    14,831       17,263  
Total long-term liabilities
    182,734       200,694  
                 
Shareholders' equity
               
Preferred shares, without par value, authorized 5,000 shares, none issued
    -       -  
Common shares, without par value, authorized 60,000 shares, issued 25,994 and
               
25,301 shares and outstanding 25,393 and 25,000 shares, respectively,
               
with no stated value
    -       -  
Additional paid-in capital
    161,587       158,748  
Common shares held in treasury, 601 and 301 shares, respectively, at cost
    (1,118 )     (292 )
Accumulated deficit
    (77,620 )     (89,150 )
Accumulated other comprehensive income
    4,062       2,669  
Total Stoneridge Inc. and subsidiaries shareholders' equity
    86,911       71,975  
Noncontrolling interest
    4,308       4,492  
Total shareholders' equity
    91,219       76,467  
Total liabilities and shareholders' equity
  $ 386,736     $ 367,008  
 
 
1

 
 
Consolidated Statements of Operations, as Adjusted
                 
(Unaudited)
                 
                   
Years ended December 31 (in thousands, except per share data)
 
2010
   
2009
   
2008
 
                   
Net Sales
  $ 635,226     $ 475,152     $ 752,698  
                         
Costs and Expenses:
                       
Cost of goods sold
    489,670       387,420       585,799  
Selling, general and administrative
    122,032       106,228       144,383  
Goodwill impairment charge
    -       -       65,175  
                         
Operating income (loss)
    23,524       (18,496 )     (42,659 )
                         
Interest expense, net
    21,780       21,965       20,575  
Equity in earnings of investees
    (10,346 )     (7,775 )     (13,490 )
Loss on extinguishment of debt
    1,346       -       770  
Other expense (income), net
    (1,280 )     893       (351 )
                         
Income (loss) before income taxes
    12,024       (33,579 )     (50,163 )
                         
Provision (benefit) for income taxes
    678       (1,003 )     46,034  
                         
Net income (loss)
    11,346       (32,576 )     (96,197 )
                         
Net income (loss) attributable to noncontrolling interest
    (184 )     82       -  
                         
Net income (loss) attributable to Stoneridge, Inc. and subsidiaries
  $ 11,530     $ (32,658 )   $ (96,197 )
                         
Basic net income (loss) per share
  $ 0.48     $ (1.38 )   $ (4.12 )
                         
Basic weighted average shares outstanding
    23,946       23,626       23,367  
                         
Diluted net income (loss) per share
  $ 0.47     $ (1.38 )   $ (4.12 )
                         
Diluted weighted average shares outstanding
    24,333       23,626       23,367  
 
 
2

 
 
Consolidated Statements of Cash Flow, as Adjusted
                 
(Unaudited)
                 
                   
Years ended December 31 (in thousands)
 
2010
   
2009
   
2008
 
                   
OPERATING ACTIVITIES:
                 
Net income (loss)
  $ 11,346     $ (32,576 )   $ (96,197 )
Adjustments to reconcile net income (loss) to net cash provided by
                       
operating activities -
                       
Depreciation
    19,070       19,875       26,196  
Amortization, including accretion of debt discount
    1,129       1,053       1,320  
Deferred income taxes
    (778 )     (3,200 )     45,521  
Earnings of equity method investees, less dividends
    (4,889 )     (474 )     (9,277 )
Loss (gain) on sale of fixed assets
    (42 )     219       (571 )
Share-based compensation expense, net
    2,266       1,252       2,103  
Loss on early extinguishment of debt
    1,346       -       770  
Goodwill impairment charge
    -       -       65,175  
Changes in operating assets and liabilities -
                       
Accounts receivable, net
    (21,012 )     16,619       20,087  
Inventories, net
    (12,307 )     17,508       (2,398 )
Prepaid expenses and other
    (1,624 )     (3,133 )     2,656  
Accounts payable
    16,705       (2,111 )     (14,769 )
Accrued expenses and other
    2,641       (1,208 )     1,840  
Net cash provided by operating activities
    13,851       13,824       42,456  
                         
INVESTING ACTIVITIES:
                       
Capital expenditures
    (18,574 )     (11,998 )     (24,573 )
Proceeds from sale of fixed assets
    56       201       1,652  
Business acquisitions and other
    -       (5,967 )     (980 )
Net cash used for investing activities
    (18,518 )     (17,764 )     (23,901 )
                         
FINANCING ACTIVITIES:
                       
Extinguishment of senior notes
    (183,000 )     -       (17,000 )
Proceeds from issuance of senior secured notes
    170,625       -       -  
Proceeds from issuance of other debt
    690       -       -  
Repayments of other debt
    (278 )     (55 )     -  
Revolving credit facility borrowings
    8,389       1,274       -  
Revolving credit facility payments
    (8,335 )     (883 )     -  
Other financing costs
    (1,365 )     -       -  
Repurchase of shares to satisfy employee tax withholding
    (826 )     -       -  
Excess tax benefits from share-based compensation expense
    395       -       1,322  
Premiums related to early extinguishment of debt
    (324 )     -       (553 )
Net cash provided by (used for) financing activities
    (14,029 )     336       (16,231 )
                         
Effect of exchange rate changes on cash and cash equivalents
    (1,237 )     2,819       (5,556 )
                         
Net change in cash and cash equivalents
    (19,933 )     (785 )     (3,232 )
                         
Cash and cash equivalents at beginning of period
    91,907       92,692       95,924  
                         
Cash and cash equivalents at end of period
  $ 71,974     $ 91,907     $ 92,692  
                         
Supplemental disclosure of cash flow information:
                       
Cash paid for interest, net
  $ 20,755     $ 21,969     $ 20,985  
Cash paid for income taxes, net
  $ 1,213     $ 2,319     $ 4,466  
                         
Supplemental disclosure of non-cash financing activities:
                       
Fair value of interest rate swap
  $ (3,017 )   $ -     $ -  
 
 
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