Stoneridge Inc. (SRI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Stoneridge Inc. is an independent designer and manufacturer of highly engineered electrical and electronic components modules and systems forthe automotive medium and heavy-duty truck and agricultural vehicle markets. Their products interface with a vehicle's mechanical and electrical systems to activate equipment and accessories display and monitor vehicle performance and control and distribute electrical power and signals. Stoneridge Inc. has a market cap of $79.6 million; its shares were traded at around $3.23 with a P/E ratio of 107.7 and P/S ratio of 0.1.
Our first quarter 2009 results were negatively effected by the continued dramatic decline in the global commercial and North American automotive vehicle markets as well as the economy as a whole. In addition, our results were effected by foreign currency exchange rates. Foreign exchange translation adversely effected our revenues by approximately $7.5 million during the quarter ended March 31, 2009 when compared to the quarter ended March 31, 2008. In addition, the results of our PST Eletrônica S.A. (“PST”) joint venture in Brazil declined between the two periods. Equity earnings in the joint venture declined from $3.6 million for the first quarter of 2008 to $0.6 million in the first quarter of 2009 due to lower demand for PST s security products.
Also affecting our results were our restructuring initiatives. Costs incurred during the quarter ended March 31, 2009, related to these restructuring initiatives amounted to approximately $1.0 million and were primarily comprised of one-time termination benefits. These restructuring actions were in response to the depressed conditions in the North American and European commercial vehicle and North American light vehicle markets. First quarter 2008 restructuring expenses were approximately $2.5 million and were comprised of one-time termination benefits and line-transfer expenses related to our initiative to improve the Company s manufacturing efficiency and cost position by ceasing manufacturing operations at our Sarasota, Florida, and Mitcheldean, United Kingdom, locations.
At March 31, 2009 and December 31, 2008, we maintained a cash and equivalents balance of $89.2 million and $92.7 million, respectively. As discussed in Note 6 to the condensed consolidated financial statements, we have no borrowings under our asset-based credit facility. At March 31, 2009 and December 31, 2008, we had borrowing capacity of $56.3 million and $57.7 million, respectively.
On April 30, 2009, Chrysler filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. The effect of this bankruptcy is under review by management at this time. Our sales to Chrysler for the three months ended March 31, 2009 were approximately $5.0 million or approximately 4.1% of consolidated net sales. Accounts receivable from Chrysler as of March 31, 2009 were approximately $4.0 million. We have collected or have been able to include a significant portion of this receivable amount in the Program. We believe that we will be able to collect the majority of the remaining receivable balance from Chrysler.
Restructuring Charges. Costs from our restructuring initiatives for the quarter ended March 31, 2009 decreased compared to the first quarter of 2008. Costs incurred during the quarter ended March 31, 2009, related to restructuring initiatives amounted to approximately $1.0 million and were primarily comprised of one-time termination benefits. These restructuring actions were in response to the depressed conditions in the North American commercial vehicle and automotive markets. First quarter 2008 restructuring expenses were approximately $2.5 million and were comprised of one-time termination benefits and line-transfer expenses related to our initiative to improve the Company s manufacturing efficiency and cost position by ceasing manufacturing operations at our Sarasota, Florida, and Mitcheldean, United Kingdom locations. Restructuring expenses that were general and administrative in nature were included in the Company s condensed consolidated statements of operations as restructuring charges, while the remaining restructuring related expenses were included in cost of goods sold.
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Stoneridge Inc. is an independent designer and manufacturer of highly engineered electrical and electronic components modules and systems forthe automotive medium and heavy-duty truck and agricultural vehicle markets. Their products interface with a vehicle's mechanical and electrical systems to activate equipment and accessories display and monitor vehicle performance and control and distribute electrical power and signals. Stoneridge Inc. has a market cap of $79.6 million; its shares were traded at around $3.23 with a P/E ratio of 107.7 and P/S ratio of 0.1.
Highlight of Business Operations:
We recognized a net loss for the quarter ended March 31, 2009 of $11.6 million, or $(0.49) per diluted share, compared with net income of $6.5 million, or $0.28 per diluted share, for the first quarter of 2008.Our first quarter 2009 results were negatively effected by the continued dramatic decline in the global commercial and North American automotive vehicle markets as well as the economy as a whole. In addition, our results were effected by foreign currency exchange rates. Foreign exchange translation adversely effected our revenues by approximately $7.5 million during the quarter ended March 31, 2009 when compared to the quarter ended March 31, 2008. In addition, the results of our PST Eletrônica S.A. (“PST”) joint venture in Brazil declined between the two periods. Equity earnings in the joint venture declined from $3.6 million for the first quarter of 2008 to $0.6 million in the first quarter of 2009 due to lower demand for PST s security products.
Also affecting our results were our restructuring initiatives. Costs incurred during the quarter ended March 31, 2009, related to these restructuring initiatives amounted to approximately $1.0 million and were primarily comprised of one-time termination benefits. These restructuring actions were in response to the depressed conditions in the North American and European commercial vehicle and North American light vehicle markets. First quarter 2008 restructuring expenses were approximately $2.5 million and were comprised of one-time termination benefits and line-transfer expenses related to our initiative to improve the Company s manufacturing efficiency and cost position by ceasing manufacturing operations at our Sarasota, Florida, and Mitcheldean, United Kingdom, locations.
At March 31, 2009 and December 31, 2008, we maintained a cash and equivalents balance of $89.2 million and $92.7 million, respectively. As discussed in Note 6 to the condensed consolidated financial statements, we have no borrowings under our asset-based credit facility. At March 31, 2009 and December 31, 2008, we had borrowing capacity of $56.3 million and $57.7 million, respectively.
On April 30, 2009, Chrysler filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. The effect of this bankruptcy is under review by management at this time. Our sales to Chrysler for the three months ended March 31, 2009 were approximately $5.0 million or approximately 4.1% of consolidated net sales. Accounts receivable from Chrysler as of March 31, 2009 were approximately $4.0 million. We have collected or have been able to include a significant portion of this receivable amount in the Program. We believe that we will be able to collect the majority of the remaining receivable balance from Chrysler.
Restructuring Charges. Costs from our restructuring initiatives for the quarter ended March 31, 2009 decreased compared to the first quarter of 2008. Costs incurred during the quarter ended March 31, 2009, related to restructuring initiatives amounted to approximately $1.0 million and were primarily comprised of one-time termination benefits. These restructuring actions were in response to the depressed conditions in the North American commercial vehicle and automotive markets. First quarter 2008 restructuring expenses were approximately $2.5 million and were comprised of one-time termination benefits and line-transfer expenses related to our initiative to improve the Company s manufacturing efficiency and cost position by ceasing manufacturing operations at our Sarasota, Florida, and Mitcheldean, United Kingdom locations. Restructuring expenses that were general and administrative in nature were included in the Company s condensed consolidated statements of operations as restructuring charges, while the remaining restructuring related expenses were included in cost of goods sold.
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