EX-99.2 3 v386151_ex99-2.htm EX-99.2

Exhibit 99.2

 

 STONERIDGE, INC.

 PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

 As of March 31, 2014

 (Unaudited)             

 

       Wiring   Pro Forma   Pro Forma 
(in thousands)  Historical (1)   Business (2)   Adjustments   Stoneridge 
 ASSETS                    
                     
 Current assets:                    
 Cash and cash equivalents  $48,427   $-   $66,971(a)  $115,398 
 Accounts receivable   150,599    43,307    -    107,292 
 Inventories, net   129,644    35,921    -    93,723 
 Prepaid expenses and other current assets   33,728    3,060    -    30,668 
 Total current assets   362,398    82,288    66,971    347,081 
                     
 Long-term assets:                    
 Property, plant and equipment, net   109,602    23,787    -    85,815 
 Intangible assets, net   70,002    322    -    69,680 
 Goodwill   60,408    4,173    -    56,235 
 Investments and other long-term assets, net   10,546    298    -    10,248 
 Total long-term assets   250,558    28,580    -    221,978 
 Total assets  $612,956   $110,868   $66,971   $569,059 
                     
 LIABILITIES AND SHAREHOLDERS' EQUITY                    
                     
 Current liabilities:                    
 Current portion of debt  $21,559   $-   $-   $21,559 
 Accounts payable   91,245    34,083    -    57,162 
 Accrued expenses and other current liabilities   58,905    8,581    -    50,324 
 Total current liabilities   171,709    42,664    -    129,045 
                     
 Long-term liabilities:                    
 Long-term debt, net   184,077    -    -    184,077 
 Deferred income taxes   57,844    -    -    57,844 
 Other long-term liabilities   4,429    -    -    4,429 
 Total long-term liabilities   246,350    -    -    246,350 
                     
 Shareholders' equity:                    
 Preferred Shares, without par value, authorized                    
 5,000 shares, none issued   -    -    -    - 
 Common Shares, without par value, authorized                    
 60,000 shares, issued 28,851 shares and                    
 outstanding 28,244 shares with no stated value   -    -    -    - 
 Additional paid-in capital   188,909    -    -    188,909 
 Common Shares held in treasury, 607 at cost   (1,193)   -    -    (1,193)
 Accumulated deficit   (6,303)   70,855    69,622    (7,536)
 Accumulated other comprehensive loss   (26,423)   (2,651)   (2,651)   (26,423)
 Total Stoneridge Inc. shareholders' equity   154,990    68,204    66,971(b)   153,757 
 Noncontrolling interest   39,907    -    -    39,907 
 Total shareholders' equity   194,897    68,204    66,971    193,664 
 Total liabilities and shareholders' equity  $612,956   $110,868   $66,971   $569,059 

 

(1)As reported in Stoneridge, Inc. unaudited financial statements contained in its Quarterly Report on Form 10-Q as of March 31, 2014.

 

(2)Derived from Wiring business reported numbers contained in Stoneridge, Inc. Quarterly Report on Form 10-Q as of March 31, 2014 adjusted for assets and liabilities excluded from the purchase agreement.

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 
 

 

 

STONERIDGE, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended March 31, 2014

(Unaudited)                        

 

       Wiring   Pro Forma   Pro Forma 
(in thousands, except per share data)  Historical (1)   Business (2)   Adjustments   Stoneridge 
                 
 Net sales  $236,389   $75,059   $-   $161,330 
                     
 Costs and expenses:                    
 Cost of goods sold   181,600    68,407    -    113,193 
 Selling, general and administrative   47,221    7,228    (1,858)(c)   41,851 
                     
 Operating income   7,568    (576)   1,858    6,286 
                     
 Interest expense, net   4,940    11    -    4,929 
 Equity in earnings of investee   (238)   -    -    (238)
 Other expense, net   1,946    31    -    1,915 
                     
 Income (loss) before income taxes   920    (618)   1,858    (320)
                     
 Provision for income taxes   430    187    -    243 
                     
 Net income (loss)   490    (805)   1,858    (563)
                     
 Net loss attributable to noncontrolling interest   (978)   -    -    (978)
                     
 Net income (loss) attributable to Stoneridge, Inc.  $1,468   $(805)  $1,858   $415 
                     
 Earnings per share attributable to Stoneridge, Inc.:                    
 Basic  $0.05             $0.02 
 Diluted  $0.05             $0.02 
                     
 Weighted-average shares outstanding:                    
 Basic   26,854              26,854 
 Diluted   27,409              27,409 

 

(1)As reported in Stoneridge, Inc. unaudited financial statements contained in its Quarterly Report on Form 10-Q as of March 31, 2014.

 

(2)Derived from Wiring business reported numbers contained in Stoneridge, Inc. Quarterly Report on Form 10-Q as of March 31, 2014.

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 
 

  

 STONERIDGE, INC.

 PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 Year ended December 31, 2013

 (Unaudited)                     

 

       Wiring   Pro Forma   Pro Forma 
(in thousands, except per share data)  Historical (1)   Business (2)   Adjustments   Stoneridge 
                     
 Net sales  $947,830   $288,344   $-   $659,486 
                     
 Costs and expenses:                    
 Cost of goods sold   721,809    268,278    -    453,531 
 Selling, general and administrative   186,317    30,247    (7,482)(c)   163,552 
                     
 Operating income   39,704    (10,181)   7,482    42,403 
                     
 Interest expense, net   18,346    250    -    18,096 
 Equity in earnings of investee   (476)   -    -    (476)
 Other expense, net   1,100    (357)   -    1,457 
                     
 Income (loss) before income taxes   20,734    (10,074)   7,482    23,326 
                     
 Provision for income taxes   4,226    1,429    -    2,797 
                     
 Net income (loss)   16,508    (11,503)   7,482    20,529 
                     
 Net income attributable to noncontrolling interest   1,377    -    -    1,377 
                     
 Net income (loss) attributable to Stoneridge, Inc.  $15,131   $(11,503)  $7,482   $19,152 
                     
 Earnings per share attributable to Stoneridge, Inc.:                    
 Basic  $0.57             $0.72 
 Diluted  $0.56             $0.70 
                     
 Weighted-average shares outstanding:                    
 Basic   26,671              26,671 
 Diluted   27,193              27,193 

 

(1)As reported in Stoneridge, Inc. audited financial statements contained in its Annual Report on Form 10-K as of December 31, 2013.

 

(2)Derived from Wiring business reported numbers contained in Stoneridge, Inc. Annual Report on Form 10-K as of December 31, 2013.

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
 

 

 

 STONERIDGE, INC.

 PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 Year ended December 31, 2012

 (Unaudited)                     

 

       Wiring   Pro Forma   Pro Forma 
(in thousands, except per share data)  Historical (1)   Business (2)   Adjustments   Stoneridge 
                     
 Net sales  $938,513   $326,047   $-   $612,466 
                     
 Costs and expenses:                    
 Cost of goods sold   713,869    286,670    -    427,199 
 Selling, general and administrative   195,915    39,212    (8,659)(c)   165,362 
                     
 Operating income   28,729    165    8,659    19,905 
                     
 Interest expense, net   20,033    164    -    19,869 
 Equity in earnings of investee   (760)   -    -    (760)
 Other expense, net   4,896    290    -    4,606 
                     
 Income (loss) before income taxes   4,560    (289)   8,659    (3,810)
                     
 Provision (benefit) for income taxes   812    845    -    (33)
                     
 Net income (loss)   3,748    (1,134)   8,659    (3,777)
                     
 Net income loss attributable to noncontrolling interest   (1,613)   -    -    (1,613)
                     
 Net income (loss) attributable to Stoneridge, Inc.  $5,361   $(1,134)  $8,659   $(2,164)
                     
 Earnings per share attributable to Stoneridge, Inc.:                    
 Basic  $0.20             $(0.08)
 Diluted  $0.20             $(0.08)
                     
 Weighted-average shares outstanding:                    
 Basic   26,377              26,377 
 Diluted   27,032              27,032 

  

 

(1)As reported in Stoneridge, Inc. audited financial statements contained in its Annual Report on Form 10-K as of December 31, 2012.

 

(2)Derived from Wiring business reported numbers contained in Stoneridge, Inc. Annual Report on Form 10-K as of December 31, 2012.

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 

 

 STONERIDGE, INC.

 PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 Year ended December 31, 2011

 (Unaudited)                     

 

       Wiring   Pro Forma   Pro Forma 
(in thousands, except per share data)  Historical (1)   Business (2)   Adjustments   Stoneridge 
                     
 Net sales  $765,373   $325,549   $-   $439,824 
                     
 Costs and expenses:                    
 Cost of goods sold   618,596    300,061    -    318,535 
 Selling, general and administrative   128,306    43,594    (8,097)(c)   92,809 
 Goodwill impairment charge   4,945    -    -    4,945 
                     
 Operating income   13,526    (18,106)   8,097    23,535 
                     
 Interest expense, net   17,234    78    -    17,156 
 Equity in earnings of investee   (10,034)   -    -    (10,034)
 Gain on previously held equity interest   (65,372)   -    -    (65,372)
 Other expense, net   56    (1,065)   -    1,121 
                     
 Income (loss) before income taxes   71,642    (17,119)   8,097    80,664 
                     
 Provision for income taxes   26,105    790    -    25,315 
                     
 Net income (loss)   45,537    (17,909)   8,097    55,349 
                     
 Net loss attributable to noncontrolling interest   (3,820)   -    -    (3,820)
                     
 Net income attributable to Stoneridge, Inc.  $49,357   $(17,909)  $8,097   $59,169 
                     
 Earnings per share attributable to Stoneridge, Inc.:                    
 Basic  $2.04             $2.45 
 Diluted  $2.00             $2.40 
                     
 Weighted-average shares outstanding:                    
 Basic   24,181              24,181 
 Diluted   24,645              24,645 

  

(1)As reported in Stoneridge, Inc. audited financial statements contained in its Annual Report on Form 10-K as of December 31, 2011.

 

(2)Derived from Wiring business reported numbers contained in Stoneridge, Inc. Annual Report on Form 10-K as of December 31, 2011.

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
 

  

STONERIDGE, INC.

NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

Pro forma adjustments reflect only those adjustments which are supportable and directly attributable to the transaction and do not include the impact of contingencies. Pro forma adjustments include the following (in thousands):

 

(a)To record cash proceeds for the sale of the Wiring business of $71,352 net of transaction costs of $897 and an estimated working capital adjustment of $3,484. Final net cash proceeds will be affected by a customary post-closing working capital adjustment.

 

(b)Adjustment to shareholder’s equity of $68,864 consists of net assets of the Wiring business sold to Motherson of $68,204 and the estimated loss on sale of net assets of $1,897 (net of taxes of $1,233). The loss is derived from the March 31, 2014 pro forma statements, the most recently available financial information.

 

(c)Adjustment for Corporate management fees not directly attributable to the Wiring business.