Stoneridge(US:SRI)2023-03-02 19:03Financial Performance - In 2022, the company reported a net loss of $14.1 million, or $(0.52) per diluted share, compared to a net income of $3.4 million, or $0.12 per diluted share in 2021[124][125]. - The Company reported net sales of $899.9 million for the year ended December 31, 2022, representing a 16.8% increase from $770.5 million in 2021[156]. - Comprehensive loss for 2022 was $20.2 million, significantly higher than a loss of $4.0 million in 2021[261]. - Operating income decreased to $2.9 million in 2022 from $15.4 million in 2021, reflecting a decline in profitability[259]. - The Company recognized a net loss of $14.1 million in 2022, compared to a net income of $3.4 million in 2021, reflecting a significant decline in profitability[156]. Sales and Revenue - Net sales increased by $129.5 million, or 16.8%, in 2022, while operating income decreased by $12.5 million[126]. - The Electronics segment net sales rose by 41.1%, driven by higher sales volumes in various markets, while the Control Devices segment net sales decreased by 3.7%[128][127]. - The North American net sales increased by $58.0 million to $444.9 million, primarily due to increases in sales volume and negotiated price increases[159]. - Net sales for 2022 reached $899.9 million, a 16.8% increase from $770.5 million in 2021[259]. Costs and Expenses - The cost of goods sold increased to $725.0 million in 2022, resulting in a gross margin decrease to 19.4% compared to 21.7% in 2021[162]. - SG&A expenses decreased by $9.3 million compared to 2021, driven by lower wages, legal fees, and non-recurring settlements[166]. - Interest expense increased by $1.9 million due to higher credit facility interest rates and write-off of deferred financing fees[171]. - The company incurred interest expense of $7.3 million in 2022, compared to $6.1 million in 2021, indicating increased borrowing costs[263]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $54.8 million in 2022 from $85.5 million in 2021, primarily due to capital expenditures for new product launches[132]. - Net cash provided by operating activities increased by $43.1 million to $6.8 million in 2022, compared to a cash used of $36.2 million in 2021[195]. - Future cash obligations total $201.7 million, with $167.8 million due under the Credit Facility[200]. - The Credit Facility had an outstanding balance of $167.8 million at December 31, 2022, with a maximum borrowing capacity of $300.0 million[203]. Segment Performance - Operating income for the Control Devices segment decreased by $31.0 million (56.5%) to $23.9 million, primarily due to prior year gains from asset sales[167]. - Operating income for the Electronics segment increased by $17.6 million (141.0%) due to higher sales and lower SG&A costs[168]. - The Electronics segment's gross margin increased due to higher sales levels and favorable negotiated pricing, despite higher material costs from supply chain issues[164]. Market Outlook - For 2023, the North American automotive market is expected to increase to 15.1 million units from 14.3 million units in 2022, indicating a recovery from previous disruptions[135]. - The company anticipates a 2.0% to 3.5% decrease in production volumes in European and North American commercial markets in 2023[137]. - The company plans to focus on product development aligned with industry megatrends, particularly in electrified vehicle platforms, to drive future growth[133]. Asset Management - Total assets decreased from $665.4 million in 2021 to $652.1 million in 2022, reflecting a decline in cash and cash equivalents[258]. - The Company’s accrued expenses and other current liabilities decreased to $66,040 in 2022 from $70,139 in 2021[300]. - The Company’s reserves for product warranty and recall totaled $13.5 million at December 31, 2022, based on historical trends and current claims understanding[255]. Strategic Initiatives - The Company entered into an Asset Purchase Agreement to sell its PM sensor business for $4.0 million, plus a post-closing inventory adjustment of $1.1 million[147]. - The estimated additional costs related to the PM Sensor Exit initiative are up to $4.2 million, primarily for potential commercial settlements and legal fees[148]. - The Company has entered into foreign currency forward contracts to reduce exposure related to foreign currency fluctuations, particularly in Brazil, Argentina, Mexico, Sweden, Estonia, the Netherlands, United Kingdom, and China[224].