Stoneridge Inc. (SRI, Financial) filed Quarterly Report for the period ended 2010-09-30.
Stoneridge Inc. has a market cap of $297.9 million; its shares were traded at around $10.49 with a P/E ratio of 44.1 and P/S ratio of 0.6. SRI is in the portfolios of Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
Our third quarter 2010 results were positively affected by improvements in the North American automotive and North American and European commercial vehicle markets as well as the economy as a whole. Production volumes in the North American automotive vehicle market increased by 26.3% during the quarter ended September 30, 2010 when compared to the quarter ended September 30, 2009. These automotive vehicle market production volume increases had a positive effect on our North American automotive vehicle market net sales of approximately $10.3 million, primarily within our Control Devices segment. The commercial vehicle market production volumes in North America improved by 25.1% during the quarter ended September 30, 2010 when compared to the prior year third quarter, which resulted in increased net sales of approximately $8.1 million, primarily within our Electronics segment. Our net sales were also favorably affected by increased European commercial vehicle production volumes of 76.0% during the quarter ended September 30, 2010 as compared to the prior year third quarter. This increased production volume had a positive effect on our net sales of approximately $7.5 million, principally within the Electronics segment. These increases in net sales were partially offset by unfavorable foreign currency exchange rates of approximately $1.8 million during the quarter ended September 30, 2010 when compared to the quarter ended September 30, 2009, approximately $1.3 million of premium freight expense and approximately $1.5 million of additional product launch costs, largely due to increased headcount, operating inefficiencies and a special production bonus awarded during the current quarter. We expect to reduce these inefficiencies during the fourth quarter of 2010. Our gross margin percentage remained consistent with the prior year gross margin, decreasing slightly from 23.0% for quarter ended September 30, 2009 to 22.5% for the current quarter.
Our selling, general and administrative expenses (“SG&A”) increased from $24.4 million for the quarter ended September 30, 2009 to $31.0 million for the quarter ended September 30, 2010. This $6.6 million, or 27.0%, increase in SG&A was largely due to increased compensation and compensation related expenses. Excluding design and development, our compensation and compensation related expenses increased by approximately $2.8 million from the third quarter of 2009, primarily as a result of increased incentive compensation expenses. In addition, our design and development costs increased by approximately $2.3 million between periods due to our support of new product launches by our customers.
At September 30, 2010 and December 31, 2009, we maintained a cash and equivalents balance of $84.9 million and $91.9 million, respectively. As discussed in Note 6 to the condensed consolidated financial statements, we have no borrowings under our asset-based credit facility. At September 30, 2010 and December 31, 2009, we had borrowing capacity of $72.4 million and $54.1 million, respectively.
Our Electronics segment was positively affected by increased volume in our served markets by approximately $28.2 million for the quarter ended September 30, 2010 when compared to the prior year third quarter. The increase in net sales for our Electronics segment was primarily due to volume increases in our North American and European commercial vehicle products. Commercial vehicle market production volumes in North America and Europe increased by 25.1% and 76.0%, respectively, during the quarter ended September 30, 2010 when compared to the prior year third quarter. The increase in North American and European commercial vehicle production positively affected net sales in our Electronics segment for the quarter ended September 30, 2010 by approximately $8.4 million, or 23.1%, and $7.5 million, or 36.8%, respectively. Our Electronics segment net sales were favorably affected by increased volumes within the agricultural vehicle market of approximately $12.3 million. Net sales within the Electronics segment were also favorably affected by approximately $2.4 million during the quarter ended September 30, 2010 due to the inclusion of Bolton Conductive Systems, LLC (“BCS”), which was acquired in the fourth quarter of 2009. These increases were partially offset by unfavorable foreign exchange rates of approximately $1.8 million for the quarter ended September 30, 2010 when compared to the prior year third quarter.
The increase in North American net sales was primarily attributable to increased sales volume in our North American automotive, commercial and agricultural vehicle markets, which had a positive effect on our net sales for the quarter ended September 30, 2010 of $10.3 million, $8.1 million and $13.3 million, respectively. North American net sales for the quarter ended September 30, 2010 were also favorably affected by approximately $2.4 million due to the inclusion of BCS. Our increase in net sales outside North America was principally due to increased sales of European commercial vehicle market products, which had a positive effect on our net sales for the quarter ended September 30, 2010 of approximately $7.5 million. This increase was partially offset by foreign currency fluctuations which negatively affected our net sales outside of North America by approximately $1.8 million during the quarter ended September 30, 2010 when compared to the prior year third quarter.
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Stoneridge Inc. has a market cap of $297.9 million; its shares were traded at around $10.49 with a P/E ratio of 44.1 and P/S ratio of 0.6. SRI is in the portfolios of Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
We recognized net income for the quarter ended September 30, 2010 of $0.7 million, or $0.03 per diluted share, compared with a net loss of $0.8 million, or $(0.04) per diluted share, for the third quarter of 2009.Our third quarter 2010 results were positively affected by improvements in the North American automotive and North American and European commercial vehicle markets as well as the economy as a whole. Production volumes in the North American automotive vehicle market increased by 26.3% during the quarter ended September 30, 2010 when compared to the quarter ended September 30, 2009. These automotive vehicle market production volume increases had a positive effect on our North American automotive vehicle market net sales of approximately $10.3 million, primarily within our Control Devices segment. The commercial vehicle market production volumes in North America improved by 25.1% during the quarter ended September 30, 2010 when compared to the prior year third quarter, which resulted in increased net sales of approximately $8.1 million, primarily within our Electronics segment. Our net sales were also favorably affected by increased European commercial vehicle production volumes of 76.0% during the quarter ended September 30, 2010 as compared to the prior year third quarter. This increased production volume had a positive effect on our net sales of approximately $7.5 million, principally within the Electronics segment. These increases in net sales were partially offset by unfavorable foreign currency exchange rates of approximately $1.8 million during the quarter ended September 30, 2010 when compared to the quarter ended September 30, 2009, approximately $1.3 million of premium freight expense and approximately $1.5 million of additional product launch costs, largely due to increased headcount, operating inefficiencies and a special production bonus awarded during the current quarter. We expect to reduce these inefficiencies during the fourth quarter of 2010. Our gross margin percentage remained consistent with the prior year gross margin, decreasing slightly from 23.0% for quarter ended September 30, 2009 to 22.5% for the current quarter.
Our selling, general and administrative expenses (“SG&A”) increased from $24.4 million for the quarter ended September 30, 2009 to $31.0 million for the quarter ended September 30, 2010. This $6.6 million, or 27.0%, increase in SG&A was largely due to increased compensation and compensation related expenses. Excluding design and development, our compensation and compensation related expenses increased by approximately $2.8 million from the third quarter of 2009, primarily as a result of increased incentive compensation expenses. In addition, our design and development costs increased by approximately $2.3 million between periods due to our support of new product launches by our customers.
At September 30, 2010 and December 31, 2009, we maintained a cash and equivalents balance of $84.9 million and $91.9 million, respectively. As discussed in Note 6 to the condensed consolidated financial statements, we have no borrowings under our asset-based credit facility. At September 30, 2010 and December 31, 2009, we had borrowing capacity of $72.4 million and $54.1 million, respectively.
Our Electronics segment was positively affected by increased volume in our served markets by approximately $28.2 million for the quarter ended September 30, 2010 when compared to the prior year third quarter. The increase in net sales for our Electronics segment was primarily due to volume increases in our North American and European commercial vehicle products. Commercial vehicle market production volumes in North America and Europe increased by 25.1% and 76.0%, respectively, during the quarter ended September 30, 2010 when compared to the prior year third quarter. The increase in North American and European commercial vehicle production positively affected net sales in our Electronics segment for the quarter ended September 30, 2010 by approximately $8.4 million, or 23.1%, and $7.5 million, or 36.8%, respectively. Our Electronics segment net sales were favorably affected by increased volumes within the agricultural vehicle market of approximately $12.3 million. Net sales within the Electronics segment were also favorably affected by approximately $2.4 million during the quarter ended September 30, 2010 due to the inclusion of Bolton Conductive Systems, LLC (“BCS”), which was acquired in the fourth quarter of 2009. These increases were partially offset by unfavorable foreign exchange rates of approximately $1.8 million for the quarter ended September 30, 2010 when compared to the prior year third quarter.
The increase in North American net sales was primarily attributable to increased sales volume in our North American automotive, commercial and agricultural vehicle markets, which had a positive effect on our net sales for the quarter ended September 30, 2010 of $10.3 million, $8.1 million and $13.3 million, respectively. North American net sales for the quarter ended September 30, 2010 were also favorably affected by approximately $2.4 million due to the inclusion of BCS. Our increase in net sales outside North America was principally due to increased sales of European commercial vehicle market products, which had a positive effect on our net sales for the quarter ended September 30, 2010 of approximately $7.5 million. This increase was partially offset by foreign currency fluctuations which negatively affected our net sales outside of North America by approximately $1.8 million during the quarter ended September 30, 2010 when compared to the prior year third quarter.
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