Stoneridge Reports Fourth Quarter and Full-Year 2022 Results.

NOVI, Mich: Stoneridge, Inc. (NYSE: SRI) today announced financial results for the fourth quarter and full-year ended December 31, 2022, with fourth quarter sales of $231.2 million and earnings per share of $0.01 and full-year sales of $899.9 million with loss per share of $(0.52). Adjusted sales for the fourth quarter and full-year were $225.2 million and $841.5 million, respectively.

Fourth quarter results included a $3.7 million, or ($0.10) earnings per share, adjustment to non-operating income related to a prior quarter correction. As reported in the second quarter of 2022, the Company unwound two net investment hedges driven by favorable foreign currency movements and recognized a net gain to other non-operating income of approximately $3.7 million, or earnings per share of $0.10. In the fourth quarter, the Company determined the gain had been incorrectly recognized as other non-operating income and reclassified the gain to other comprehensive loss. The Company received $3.8 million in cash in the second-quarter as part of the settlement, which was properly accounted for on the balance sheet and statement of cash flows.

Sales were adjusted to normalize the impact of electronic component spot buys recovered from customers of $6.0 million for the fourth quarter of 2022 and $58.4 million for the full-year 2022. The exhibits attached hereto provide reconciliation detail on this and all other normalizing adjustments of Non-GAAP financial measures used in this press release.

For the fourth quarter of 2022, Stoneridge reported gross profit of $45.5 million (19.7% of sales, 20.2% of adjusted sales). Operating income was $6.0 million (2.6% of sales and 2.7% of adjusted sales). EBITDA was $11.1 million (4.9% of adjusted sales). Excluding the impact of the prior quarter correction, EBITDA was $14.8 million (6.6% of adjusted sales), a $3.7 million and 100 basis point improvement over the third quarter.

For the full year of 2022, Stoneridge reported gross profit of $174.9 million (19.4% of sales, 20.8% of adjusted sales). Operating income was $2.9 million (0.3% of sales) and adjusted operating income was $2.7 million (0.3% of adjusted sales), a 190 basis point improvement over 2021. Adjusted EBITDA was $29.8 million (3.5% of adjusted sales), a 30 basis point improvement over 2021.

Jim Zizelman, president and chief executive officer, commented, "During the fourth quarter we continued to experience volatility in several of our primary end-markets. Rising COVID-19 infections in China and continued production volatility with our North American passenger car...