EX-99.1 2 sri-20241030xexx991earning.htm EX-99.1 Document


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Stoneridge報告2024年第三季度業績

MirrorEye已成爲多個歐洲卡車平台的標準配置

MirrorEye OEm方案將與戴姆勒卡車北美和一家歐洲品牌一起推出

截至今年底，現金業績較2023年同期改善了3130萬美元

2024年第三季度結果
•銷售額爲213.8萬美元
•毛利潤爲4450萬美元
•經調整的毛利潤爲4460萬美元（銷售額的20.9%）
•營業收入爲0.3百萬美元
•調整後的營業收入爲0.7百萬美元（銷售額的0.3%）
•調整後的EBITDA爲920萬美元（銷售額的4.3%）
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。經調整的EBITDA受到了與先前預期相比，營業外的外匯和非營業費用增加260萬美元的不利影響
•所得稅費用爲340萬美元
•調整後的所得稅費用爲350萬美元
•每股虧損（EPS）爲$(0.26)
•每股收益調整後爲$(0.24)
•截至目前的現金表現爲13.3百萬美元，比2023年同期提高了3130萬美元
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。年初至今的存貨減少了1130萬美元

2024年全年指引更新
•營業收入指南爲8.95億美元 - 9.05億美元（中點爲9億美元）
◦控制支出，同時繼續在我們認爲對長期成功至關重要的領域進行投資。反映當前市場條件，導致我們加權平均終端市場產量較先前指導下降了約(3.6)%
•更新2024年全年指引，以反映營業收入預期下調
•調整後的毛利率約爲21.5%
•調整後的營業利潤率約爲1.0%
•調整後的EBITDA爲4200萬至4400萬美元（調整後的EBITDA利潤率約爲4.7%)
•考慮全年調整後所得稅費用爲4.0萬美元至4.5萬美元，調整後每股收益爲(0.35美元) - (0.40美元)
2024年10月30日，密歇根州諾維 - 美國石利集團股份有限公司（紐約證券交易所：SRI）今天宣佈了截至2024年9月30日的第三季度財務業績，銷售額達2.138億美元，毛利潤爲4450萬美元，調整後的毛
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44.6 百萬美元的利潤（銷售額的 20.9%）。營業收入爲 0.3 百萬美元，調整後的營業收入爲 0.7 百萬美元（銷售額的 0.3%）。所得稅費用爲 3.4 百萬美元，調整後的所得稅費用爲 3.5 百萬美元。每股虧損爲 (0.26) 美元，調整後的每股收益爲 (0.24) 美元。調整後的 EBITDA 爲 9.2 百萬美元（銷售額的 4.3%）。本附件提供了有關本新聞稿中使用的非 GAAP 財務指標的調整的歸一化調整的詳細信息。
吉姆·齊澤曼，總裁兼首席執行官，評論道：「第三季度，我們的重點仍然是改善業務的基本面。我們努力提高運營效率，導致品質相關成本降低，同時營業費用的降低有助於抵消我們面臨的一些重大市場挑戰。儘管如此，像許多同行一樣，第三季度業績受到持續壓力的影響，我們所有主要終端市場的客戶生產都有所減少。我們將繼續通過運營卓越和關注可控成本來提高基本的財務績效。」
齊澤爾曼繼續說道，「在我們繼續推動運營績效改進的同時，我們將繼續專注於關鍵的增長業務，包括新業務獎項和完美執行的計劃啓動，這將推動未來的增長。我們在OEm和車隊渠道都持續努力推動MirrorEye的勢頭。本週早些時候，我們宣佈MirrorEye將在戴姆勒卡車北美公司的第五代Freightliner Cascadia卡車上提供，該車型將於2025年年中開始系列生產。我們還宣佈MirrorEye將搭載一個額外的歐洲品牌車型，並作爲此前推出的全球OEm MirrorEye計劃的延展，計劃於今年第四季度推出。MirrorEye將作爲該品牌多個車型的標準配置，並可選配於其他車型。同樣，我們的其他歐洲OEm客戶DAF和沃爾沃現已將各自的攝像頭監控系統標準化應用於多個關鍵的卡車平台。MirrorEye在多個OEm客戶、多個關鍵卡車平台上的標準化顯示了我們爲該產品創造的強勁勢頭。此外，我們繼續與北美的Db Schenker和歐洲的VDL Bus and Coach建立新的合作伙伴關係，擴展我們的改裝應用。最後，在這一季度，我們繼續爲Control Devices創造增長機會，我們首次獲得了與一家中國OEm客戶有關我們的泄漏檢測模塊技術的獎項，該技術用於一款全新混合動力車輛。這一戰略性技術在全球混合動力車輛擴張中處於良好位置，並且也適用於傳統動力總成車輛，以提高其排放系統的效率。」
Zizelman得出結論稱：「雖然我們預計今年剩下的時間和2025年該行業仍將面臨持續挑戰，但我們將繼續專注於可以控制的變量，以便高效有效地應對普遍存在的宏觀經濟逆風。我們相信，我們的努力基本上改善了業績，以及我們持續專注於關鍵增長舉措，將推動股東的長期可持續增長。」
季度回顧
電子 銷售額爲1.357億美元，相對於2023年第三季度調整後銷售額下降了4.7%。 主要是由於歐洲和北美商用車市場以及歐洲非公路終端市場客戶生產量降低所致。 這種下降在一定程度上得到了最近推出計劃的加快推進，包括MirrorEye和公司的下一代追蹤器。 由於銷售額減少以及較高的間接成本和研發成本，第三季度調整後的營業利潤率爲2.8%，相對於2023年第三季度下降了330個點子，部分抵消了直接材料成本的降低。
控制設備銷售額爲7430萬美元 減少 較2023年第三季度下降17.5%。主要原因是北美客車終端市場客戶生產量減少，包括對電動車項目需求減少，以及預期的末端生命週期項目結束。
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中國乘用車和北美商用車最終市場的銷售增加，部分抵消了中國商用車最終市場的銷售下降。由於銷售額減少，第三季度調整後的營業利潤率爲3.1%，與2023年第三季度相比下降了320個點子，主要是由於減少銷售槓桿，部分抵消了較低的D&D成本。
stoneridge巴西銷售額爲1360萬美元，比2023年第三季度減少了50萬美元。這種減少主要是由於不利的外匯匯率轉換達到170萬美元以及較低的監測服務費，但由於較高的OEm和售後產品銷售而得以抵消。第三季度營業收入爲70萬美元，較2023年第三季度調整後的營業收入下降了約100萬美元。 主要是由於美元計價的物料採購不利影響以及來自較低監測服務費的不利銷售組合影響被較低的SG&A支出所抵消。
Relative to the second quarter of 2024, Electronics sales decreased by 11.6%. This decrease was driven primarily by continued macroeconomic pressures impacting European and North American commercial vehicle production and reduced sales in the off-highway end market. Third quarter adjusted operating margin decreased by 490 basis points relative to the second quarter of 2024, primarily due to reduced leverage on lower sales, unfavorable sales mix and higher D&D costs due to lower customer reimbursements, partially offset by lower SG&A costs.
Relative to the second quarter of 2024, Control Devices sales decreased by 8.1%. This decrease was primarily driven by continued pressure and reduced demand in the North American passenger vehicle end market. Stronger sales in the China passenger vehicle end market were offset by lower sales in the China commercial vehicle end market versus the second quarter. Third quarter adjusted operating margin decreased by 150 basis points relative to the second quarter of 2024, primarily due to reduced leverage on lower sales slightly offset by lower material costs.
Relative to the second quarter of 2024, Stoneridge Brazil sales increased by $1.8 million, or 15.0%. This was primarily due to higher sales in the OEM end market and higher aftermarket sales, partially offset by the unfavorable foreign currency impact of $0.7 million. Third quarter operating income improved by $0.8 million relative to the second quarter of 2024, primarily due to fixed cost leverage on incremental sales partially offset by the unfavorable foreign currency impact of $0.4 million.
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Cash and Debt Balances
As of September 30, 2024, Stoneridge had cash and cash equivalents totaling $54.1 million. During the first nine months of 2024, the Company generated $13.3 million in cash driven by our continued focus on reducing net working capital, including an $11.3 million reduction in inventory balances. This represents an increase of $31.3 million in cash performance over the same period in 2023.
For compliance purposes, adjusted net debt was $158.9 million while adjusted EBITDA for the trailing twelve months was $56.8 million, resulting in an adjusted net debt to trailing twelve-month EBITDA compliance leverage ratio of 2.79x.
The Company continues to focus on both operating performance and working capital improvement to drive cash performance, particularly related to inventory reduction. The Company expects to remain in compliance with all covenant requirements.
2024 Outlook
The Company is updating its previously provided full-year 2024 guidance ranges including sales guidance of $895 million to $905 million, adjusted gross margin guidance of approximately 21.5%, adjusted operating
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margin guidance of approximately 1.0%, adjusted loss per share guidance of $(0.35) to $(0.40) and adjusted EBITDA guidance of $42 million to $44 million, or approximately 4.7% of sales.
Matt Horvath, chief financial officer, commented, “We are updating our full-year 2024 revenue guidance to reflect industry-wide macroeconomic headwinds that are resulting in reduced production expectations for the majority of our customers across our end markets. Overall, our weighted average end markets are expected to decline by 3.6% relative to our previously provided guidance. Furthermore, we are expecting non-OEM and option-based products revenue to be aligned with the low-end of the previously provided range. We expect there could be some continued incremental headwinds in the off-highway end market and lower than expected MirrorEye aftermarket fleet and bus volumes despite the continuing expansion in fleet relationships. Many of these fleets are evaluating the technology prior to availability as a factory installation which we expect will increase the OEM volumes, as we have outlined with several of our OEM customers making the system standard equipment but may impact demand for higher volume retrofit applications.”
Horvath continued, “Our updated revenue guidance results in a midpoint of $900 million for the year. Although we continue to expect improvement in operating performance, including improvements in material costs and quality-related costs, as well as continued focus on operating cost control, due primarily to the impact of our reduced revenue expectations, we are updating our full-year adjusted gross margin and adjusted operating margin expectations to approximately 21.5% and 1.0%, respectively. Similarly, we are updating our adjusted EBITDA guidance to $42 million to $44 million, or approximately 4.7% of sales. Finally, we are updating our full-year adjusted EPS guidance to $(0.35) to $(0.40). Our guidance reflects approximately $4 million to $4.5 million of total adjusted tax expense for the year based on our forecasted geographical mix of earnings.”
Horvath, concluded, “By continuing to focus on improving the fundamentals of our business, controlling the variables within our control and responding efficiently and effectively to macroeconomic headwinds, we expect to drive performance improvement throughout the business. Additionally, we continue to focus on inventory reduction to improve our cash position and reduce our leverage profile. Stoneridge remains well positioned to outpace our underlying end market growth and drive significant earnings expansion going forward.”
Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2024 third quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, October 31, 2024, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and manufacturer of highly engineered electrical and electronic systems, components and modules for the automotive, commercial, off-highway and agricultural vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ
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materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:
•the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;
•fluctuations in the cost and availability of key materials and components (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
•global economic trends, competition and geopolitical risks, including impacts from ongoing or potential global conflicts and any related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and other countries;
•our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
•the reduced purchases, loss or bankruptcy of a major customer or supplier;
•the costs and timing of business realignment, facility closures or similar actions;
•a significant change in automotive, commercial, off-highway or agricultural vehicle production
•competitive market conditions and resulting effects on sales and pricing;
•foreign currency fluctuations and our ability to manage those impacts;
•customer acceptance of new products;
•our ability to successfully launch/produce products for awarded business;
•adverse changes in laws, government regulations or market conditions affecting our products, our suppliers, or our customers’ products;
•our ability to protect our intellectual property and successfully defend against assertions made against us;
•liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
•labor disruptions at our facilities, or at any of our significant customers or suppliers;
•business disruptions due to natural disasters or other disasters outside of our control;
•the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;
•capital availability or costs, including changes in interest rates;
•the failure to achieve the successful integration of any acquired company or business;
•risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and
•the items described in Part I, Item IA (“Risk Factors”) in our Form 10-K filed with the SEC.
The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2024 and 2023 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably
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available to the Company at the date of this press release and the adjustments that management can reasonably predict.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted income tax expense, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted net debt, adjusted debt and adjusted cash are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods.
Adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted income tax expense, adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted net debt, adjusted debt and adjusted cash should not be considered in isolation or as a substitute for sales, gross profit, operating income, income (loss) before tax, income tax expense, net income (loss), EPS, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.
For more information, contact Kelly K. Harvey, Director Investor Relations (Kelly.Harvey@Stoneridge.com).

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CONSOLIDATED BALANCE SHEETS
(in thousands)September 30,
2024		December 31,
2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$54,138 $40,841 
Accounts receivable, less reserves of $845 and $1,058, respectively
158,529 166,545 
Inventories, net176,445 187,758 
Prepaid expenses and other current assets25,301 34,246 
Total current assets414,413 429,390 
Long-term assets:
Property, plant and equipment, net103,450 110,126 
Intangible assets, net44,206 47,314 
Goodwill35,593 35,295 
Operating lease right-of-use asset10,758 10,795 
Investments and other long-term assets, net54,103 46,980 
Total long-term assets248,110 250,510 
Total assets$662,523 $679,900 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of debt$— $2,113 
Accounts payable98,130 111,925 
Accrued expenses and other current liabilities71,761 64,203 
Total current liabilities169,891 178,241 
Long-term liabilities:
Revolving credit facility196,322 189,346 
Deferred income taxes6,344 7,224 
Operating lease long-term liability7,219 7,684 
Other long-term liabilities11,397 9,688 
Total long-term liabilities221,282 213,942 
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued
— — 
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,689 and 27,549 shares outstanding at September 30, 2024 and December 31, 2023, respectively, with no stated value
— — 
Additional paid-in capital224,944 227,340 
Common Shares held in treasury, 1,277 and 1,417 shares at September 30, 2024 and December 31, 2023, respectively, at cost
(38,641)(43,344)
Retained earnings186,099 196,509 
Accumulated other comprehensive loss(101,052)(92,788)
Total shareholders' equity271,350 287,717 
Total liabilities and shareholders' equity$662,523 $679,900 
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CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
September 30,		Nine months ended
September 30,
(in thousands, except per share data)2024202320242023
Net sales$213,831 $238,164 $690,047 $746,303 
Costs and expenses:
Cost of goods sold169,340 185,689 543,459 590,538 
Selling, general and administrative26,533 28,111 88,832 91,465 
Design and development17,643 17,852 53,703 57,486 
Operating income315 6,512 4,053 6,814 
Interest expense, net3,604 3,313 11,039 9,179 
Equity in loss of investee752 141 1,081 641 
Other (income) expense, net(384)(1,383)(644)2,152 
(Loss) income before income taxes(3,657)4,441 (7,423)(5,158)
Provision for income taxes3,413 2,270 2,987 3,049 
Net (loss) income$(7,070)$2,171 $(10,410)$(8,207)
(Loss) earnings per share:
Basic$(0.26)$0.08 $(0.38)$(0.30)
Diluted$(0.26)$0.08 $(0.38)$(0.30)
Weighted-average shares outstanding:
Basic27,61827,48427,58627,428
Diluted27,61827,73427,58627,428
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CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, (in thousands)20242023
OPERATING ACTIVITIES:
Net loss$(10,410)$(8,207)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation19,695 19,800 
Amortization, including accretion and write-off of deferred financing costs6,812 6,077 
Deferred income taxes(6,339)(2,732)
Loss of equity method investee1,081 641 
Loss (gain) on sale of fixed assets257 (861)
Share-based compensation expense3,092 2,272 
Excess tax deficiency related to share-based compensation expense263 74 
Changes in operating assets and liabilities:
Accounts receivable, net6,042 (21,335)
Inventories, net9,694 (33,651)
Prepaid expenses and other assets4,949 7,473 
Accounts payable(13,127)23,322 
Accrued expenses and other liabilities6,508 1,459 
Net cash provided by (used for) operating activities28,517 (5,668)
INVESTING ACTIVITIES:
Capital expenditures, including intangibles(19,049)(28,584)
Proceeds from sale of fixed assets312 1,841 
Investment in venture capital fund, net(260)(200)
Net cash used for investing activities(18,997)(26,943)
FINANCING ACTIVITIES:
Revolving credit facility borrowings98,000 81,365 
Revolving credit facility payments(91,000)(64,568)
Proceeds from issuance of debt24,277 27,579 
Repayments of debt(26,364)(27,145)
Repurchase of Common Shares to satisfy employee tax withholding(780)(1,697)
Net cash provided by financing activities4,133 15,534 
Effect of exchange rate changes on cash and cash equivalents(356)(963)
Net change in cash and cash equivalents13,297 (18,040)
Cash and cash equivalents at beginning of period40,841 54,798 
Cash and cash equivalents at end of period$54,138 $36,758 
Supplemental disclosure of cash flow information:
Cash paid for interest, net$11,892 $9,248 
Cash paid for income taxes, net$8,429 $8,453 

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Regulation G Non-GAAP Financial Measure Reconciliations

Exhibit 1 - Reconciliation of Adjusted EPS
Reconciliation of Q3 2024 Adjusted EPS
(USD in millions, except EPS)Q3 2024Q3 2024 EPS
Net Loss$(7.1)$(0.26)
Add: After-Tax Business Realignment Costs0.2 0.01 
Add: After-Tax Environmental Remediation Costs0.1 0.00 
Adjusted Net Loss$(6.7)$(0.24)

Exhibit 2 – Reconciliation of Adjusted EBITDA
(USD in millions)Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024
Income (Loss) Before Tax$4.4 $3.2 $(5.6)$1.9 $(3.7)
Interest expense, net3.3 3.8 3.6 3.8 3.6 
Depreciation and amortization8.5 8.4 8.6 8.5 8.8 
EBITDA$16.2 $15.5 $6.6 $14.2 $8.8 
Add: Pre-Tax Business Realignment Costs1.2 0.1 — 1.9 0.3 
Add: Pre-Tax Environmental Remediation Costs— — — — 0.2 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.5)— — — — 
Adjusted EBITDA$17.0 $15.6 $6.6 $16.1 $9.2 

Exhibit 3 – Reconciliation of Adjusted Gross Profit

(USD in millions)Q2 2024Q3 2024
Gross Profit$53.7 $44.5 
Add: Pre-Tax Business Realignment Costs— 0.1 
Adjusted Gross Profit$53.7 $44.6 

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Exhibit 4 - Reconciliation of Adjusted Operating Income

(USD in millions)Q2 2024Q3 2024
Operating Income $3.4 $0.3 
Add: Pre-Tax Business Realignment Costs1.9 0.3 
Add: Pre-Tax Environmental Remediation Costs— 0.2 
Adjusted Operating Income $5.4 $0.7 

Exhibit 5 – Segment Adjusted Operating Income
Reconciliation of Control Devices Adjusted Operating Income
(USD in millions)Q3 2023Q2 2024Q3 2024
Control Devices Operating Income$5.5 $3.7 $2.1 
Add: Pre-Tax Environmental Remediation Costs— — 0.2 
Add: Pre-Tax Business Realignment Costs0.1 — — 
Control Devices Adjusted Operating Income$5.6 $3.7 $2.3 

Reconciliation of Electronics Adjusted Operating Income
(USD in millions)Q3 2023Q2 2024Q3 2024
Electronics Operating Income $7.6 $9.8 $3.5 
Add: Pre-Tax Business Realignment Costs1.1 1.9 0.3 
Electronics Adjusted Operating Income $8.7 $11.7 $3.8 

Reconciliation of Stoneridge Brazil Adjusted Operating Income (Loss)
(USD in millions)Q3 2023Q2 2024Q3 2024
Stoneridge Brazil Operating Income (Loss)$1.2 $(0.0)$0.7 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.5)— — 
Stoneridge Brazil Adjusted Operating Income (Loss)$0.8 $(0.0)$0.7 



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Exhibit 6 – Reconciliation of Adjusted Sales
(USD in millions)Q3 2023Q2 2024Q3 2024
Sales$238.2 $237.1 $213.8 
Less: Sales from Spot Purchases Recoveries (0.9)— — 
Adjusted Sales$237.2 $237.1 $213.8 

Exhibit 7 – Reconciliation of Electronics Adjusted Sales

(USD in millions)Q3 2023Q2 2024Q3 2024
Electronics Sales$143.3 $153.5 $135.7 
Less: Sales from Spot Purchases Recoveries (0.9)— — 
Electronics Adjusted Sales$142.4 $153.5 $135.7 
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Exhibit 8 – Reconciliation of Adjusted Tax Rate


Reconciliation of Q3 2024 Adjusted Tax Rate
(USD in millions)Q3 2024Tax Rate
Loss Before Tax$(3.7)
Add: Pre-Tax Business Realignment Costs0.3 
Add: Pre-Tax Environmental Remediation Costs0.2 
Adjusted Loss Before Tax$(3.2)
Income Tax Expense3.4 (93.3)%
Add: Tax Impact from Pre-Tax Adjustments0.1 
Adjusted Income Tax Expense on Adjusted Loss Before Tax$3.5 nm

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Exhibit 9 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)Q4 2023Q1 2024Q2 2024Q3 2024
Income (Loss) Before Tax$3.2 (5.6)$1.9 $(3.7)
Interest Expense, net3.8 3.6 3.8 3.6 
Depreciation and Amortization8.4 8.6 8.5 8.8 
EBITDA$15.5 $6.6 $14.2 $8.8 
Compliance adjustments:
Add: Non-Cash Impairment Charges and Write-offs or Write Downs0.1 0.1 — — 
Add: Adjustments from Foreign Currency Impact(0.7)2.2 (2.4)(0.6)
Add: Extraordinary, Non-recurring or Unusual Items— — — — 
Add: Cash Restructuring Charges0.3 1.6 0.5 0.7 
Add: Charges for Transactions, Amendments, and Refinances0.3 — — — 
Add: Adjustment to Autotech Fund II Investment(0.1)0.3 0.1 0.8 
Add: Accrual-based Expenses5.5 8.2 7.1 1.3 
Less: Cash Payments for Accrual-based Expenses(3.1)(3.2)(3.7)(3.3)
Adjusted EBITDA (Compliance)$17.7 $15.8 $15.8 $7.6 
Adjusted TTM EBITDA (Compliance)$56.8 
Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)Q3 2024
Total Cash and Cash Equivalents$54.1 
Less: 35% of Cash in Foreign Locations(15.1)
Total Adjusted Cash (Compliance)$39.0 
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)Q3 2024
Total Debt$196.3 
Outstanding Letters of Credit1.6 
Total Adjusted Debt (Compliance)$197.9 
Adjusted Net Debt (Compliance)$158.9 
Compliance Leverage Ratio (Net Debt / TTM EBITDA)2.79x

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