Stoneridge Reports Second Quarter 2025 Results
MirrorEye® Sets Another Quarterly Sales Record
Announces Largest Business Award in Company History for Global MirrorEye Program
Announces Largest OEM Business Award in
Announces Review of Strategic Alternatives for Control Devices Business
2025 Second Quarter Results
- Sales of
$228.0 million - Gross profit of
$48.9 million (21.5% of sales) - Operating loss of
$(2.6) million ((1.1)% of sales) - Adjusted operating income of
$0.4 million (0.2% of sales) - Net loss of
$(9.4) million ((4.1)% of sales) - Adjusted net loss of
$(7.0) million ((3.1)% of sales) - Adjusted EBITDA of
$4.6 million (2.0% of sales), including$3.4 million of non-operating FX expense- Excluding non-operating foreign currency expenses, adjusted EBITDA of
$8.1 million (3.5% of sales)
- Excluding non-operating foreign currency expenses, adjusted EBITDA of
- Total debt reduction of
$38.8 million relative to the first quarter driven by a$43.8 million global cash repatriation program and an inventory reduction of$7.3 million
2025 Full-Year Guidance Update
- Maintaining revenue guidance of
$860 million -$890 million (midpoint of$875 million )- Production volume reductions, particularly in the North American commercial vehicle end market, expected to be offset by foreign currency benefits
- Updating adjusted EBITDA to
$34 million to$38 million (adjusted EBITDA margin of 4.0% to 4.3%)- Updating to reflect year-to-date non-operating net foreign currency expenses of
$3.0 million and approximately$1.0 million in estimated tariff-related expenses for the full-year - Expecting operating performance improvements, including reduced operating expenses, to offset customer production volume headwinds
- Updating to reflect year-to-date non-operating net foreign currency expenses of
The exhibits attached hereto provide reconciliation details on normalizing adjustments of non-GAAP financial measures used in this press release.
Today, the Company also announced several significant new program awards, in both the Electronics and Stoneridge Brazil segments, totaling approximately
Zizelman continued, "As demonstrated by the significant new business awards announced this quarter, we remain committed to our long-term strategy aligned with industry megatrends and advanced technologies. We continue to lead the market in vision systems as a trusted and dependable partner, earning a global MirrorEye program extension with our next-generation system which exemplifies the value of our technology not only to our customers, but also to end-users. As the largest single program award in the Company's history, this MirrorEye program will contribute to our substantial growth for many years to come. Additionally, we continue to shift our portfolio in
Review of Strategic Alternatives for the Control Devices Business
Stoneridge today also announced a review of strategic alternatives for its Control Devices business.
Zizelman continued, "As I have discussed consistently throughout my tenure as the CEO of Stoneridge, our management team and Board of Directors remain focused on creating value for our shareholders, employees, and customers. As our business continues to evolve and grow, we need to ensure each part of our business has both the resources and focus needed to reach its full potential. That said, we are seeing record-breaking business wins in several of our core growth platforms, in both Electronics and Stoneridge Brazil and to support and accelerate these growth platforms, we must dedicate our capital, engineering resources, and leadership focus accordingly. As a result, the next step in our long-term strategy is a review of strategic alternatives related to our Control Devices segment with the primary focus being a potential sale of the segment to maximize value for our shareholders."
Zizelman concluded, "We are excited about the next stage of our long-term strategy. We believe this will maximize shareholder value, both immediately and longer term, and position us for sustainable success. We believe this process will also result in Control Devices being able to take advantage of the technology platforms that we have built and invest in the appropriate resources to accelerate growth and earnings potential for the business."
The Company has engaged external advisors to assist in this process but has not set a definitive timetable for the completion of the process and does not intend to comment further unless or until the Board has approved a specific course of action.
Second Quarter in Review
Electronics second quarter sales of
Control Devices second quarter sales of
Stoneridge Brazil second quarter sales of
Relative to the second quarter of 2024, Electronics second quarter sales decreased by 2.6%. This decrease was primarily driven by lower production volumes in the North American commercial vehicle end market, partially offset by higher MirrorEye sales, including the ramp-up of recently launched OEM programs, and favorable foreign currency translation of
Relative to the second quarter of 2024, Control Devices second quarter sales decreased by 12.0%. This decrease was primarily due to lower customer production volumes in the North American passenger vehicle end market, as well as the expected wind-down of an end-of-life program. Second quarter adjusted operating margin of 4.0% decreased by 60 basis points relative to the second quarter of 2024, primarily due to lower contribution from lower sales offset by lower quality-related costs and D&D costs.
Relative to the second quarter of 2024, Stoneridge Brazil second quarter sales increased by
Cash and Debt Balances
As of
For Credit Facility compliance purposes, adjusted net debt was
The Company continues to expect to remain compliant with all amended compliance ratios and is targeting a compliance net debt to EBITDA leverage ratio of approximately 2.5x by the end of the year, relative to a 3.5x leverage ratio requirement by the end of the year.
2025 Outlook
The Company is maintaining its previously provided full-year 2025 sales guidance range of $860 million to $890 million. The Company is narrowing its adjusted gross margin guidance to 22.0% to 22.25%, maintaining its adjusted operating margin guidance of 0.75% to 1.25%, and updating its adjusted EBITDA guidance to $34 million to $38 million, or approximately 4.0% to 4.3% of sales. The Company is also maintaining its full-year 2025 guidance range for free cash flow of $25 million to $30 million.
Horvath commented, "We are maintaining our full-year 2025 sales guidance as production volume headwinds, primarily in the North American commercial vehicle end market, are expected to be offset by favorable foreign currency benefits. We expect strong operating performance and reduced operating expenses to approximately offset the expected production headwinds. We are updating our adjusted EBITDA guidance to $34 million to $38 million, or a midpoint reduction of
Horvath concluded, "We remain focused on building a strong foundation for continued earnings expansion as we capitalize on our impressive portfolio of advanced technologies. We will continue to monitor shifts in macroeconomic policies, including tariffs, and the impacts on our business to ensure that we respond quickly to offset any incremental costs, just as we have done historically. As demonstrated by our new business award announcements this quarter, Stoneridge remains well positioned to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation."
Conference Call on the Web
A live Internet broadcast of Stoneridge's conference call regarding 2025 second quarter results can be accessed at
About
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 materially from those expressed in or implied by these 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; - tariffs specifically in countries where we have significant direct or indirect manufacturing or supply chain exposure and our ability to either mitigate the impact of tariffs or pass any incremental costs to our customers;
- our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
- the reduced purchases, loss, financial distress or bankruptcy of a major customer or supplier;
- the costs and timing of business realignment, facility closures or similar actions;
- a significant change in commercial, automotive, 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 the Company's 2024 Form 10-K.
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.
There can be no assurance that the strategic review of the Control Devices business will result in a transaction. The Company does not intend to comment further regarding this matter unless and until further disclosure is determined to be appropriate.
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
In evaluating its business, the Company considers and uses free cash flow and net debt as supplemental measures of its liquidity and the other non-GAAP financial measures as supplemental measures of its operating performance. 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 gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow 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 gross profit and margin, adjusted operating income (loss) and margin, adjusted income (loss) before tax, adjusted income tax expense (benefit), adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, adjusted debt, adjusted net debt, adjusted cash and free cash flow should not be considered in isolation or as a substitute for gross profit, operating income (loss), income (loss) before tax, income tax expense (benefit), 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.
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
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|
||||
|
(in thousands) |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ 49,772 |
|
$ 71,832 |
|
Accounts receivable, less reserves of |
|
163,105 |
|
137,766 |
|
Inventories, net |
|
144,451 |
|
151,337 |
|
Prepaid expenses and other current assets |
|
36,099 |
|
26,579 |
|
Total current assets |
|
393,427 |
|
387,514 |
|
Long-term assets: |
|
|
|
|
|
Property, plant and equipment, net |
|
100,100 |
|
97,667 |
|
Intangible assets, net |
|
42,514 |
|
39,677 |
|
|
|
37,690 |
|
33,085 |
|
Operating lease right-of-use asset |
|
11,441 |
|
10,050 |
|
Investments and other long-term assets, net |
|
54,236 |
|
53,563 |
|
Total long-term assets |
|
245,981 |
|
234,042 |
|
Total assets |
|
$ 639,408 |
|
$ 621,556 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ 105,773 |
|
$ 83,478 |
|
Accrued expenses and other current liabilities |
|
78,377 |
|
66,494 |
|
Total current liabilities |
|
184,150 |
|
149,972 |
|
Long-term liabilities: |
|
|
|
|
|
Revolving credit facility |
|
164,377 |
|
201,577 |
|
Deferred income taxes |
|
5,373 |
|
5,321 |
|
Operating lease long-term liability |
|
7,984 |
|
6,484 |
|
Other long-term liabilities |
|
17,008 |
|
12,942 |
|
Total long-term liabilities |
|
194,742 |
|
226,324 |
|
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 |
|
— |
|
— |
|
Additional paid-in capital |
|
217,582 |
|
225,712 |
|
Common Shares held in treasury, 963 and 1,271 shares at |
|
(28,041) |
|
(38,424) |
|
Retained earnings |
|
163,430 |
|
179,985 |
|
Accumulated other comprehensive loss |
|
(92,455) |
|
(122,013) |
|
Total shareholders' equity |
|
260,516 |
|
245,260 |
|
Total liabilities and shareholders' equity |
|
$ 639,408 |
|
$ 621,556 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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|
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Three months ended
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|
Six months ended
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(in thousands, except per share data) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ 227,952 |
|
$ 237,059 |
|
$ 445,842 |
|
$ 476,216 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
179,014 |
|
183,319 |
|
350,607 |
|
374,119 |
|
Selling, general and administrative |
|
32,835 |
|
31,876 |
|
64,531 |
|
62,299 |
|
Design and development |
|
18,704 |
|
18,457 |
|
36,530 |
|
36,060 |
|
Operating (loss) income |
|
(2,601) |
|
3,407 |
|
(5,826) |
|
3,738 |
|
Interest expense, net |
|
3,134 |
|
3,801 |
|
6,301 |
|
7,435 |
|
Equity in (earnings) loss of investee |
|
(50) |
|
52 |
|
(344) |
|
329 |
|
Other expense (income), net |
|
3,430 |
|
(2,296) |
|
2,964 |
|
(260) |
|
(Loss) income before income taxes |
|
(9,115) |
|
1,850 |
|
(14,747) |
|
(3,766) |
|
Provision (benefit) for income taxes |
|
244 |
|
(936) |
|
1,808 |
|
(426) |
|
Net (loss) income |
|
$ (9,359) |
|
$ 2,786 |
|
$ (16,555) |
|
$ (3,340) |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ (0.34) |
|
$ 0.10 |
|
$ (0.60) |
|
$ (0.12) |
|
Diluted |
|
$ (0.34) |
|
$ 0.10 |
|
$ (0.60) |
|
$ (0.12) |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
27,788 |
|
27,611 |
|
27,734 |
|
27,570 |
|
Diluted |
|
27,788 |
|
27,853 |
|
27,734 |
|
27,570 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
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|
Six months ended |
|
2025 |
|
2024 |
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|
|
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|
|
|
OPERATING ACTIVITIES: |
|
|
|
|
|
Net loss |
|
$ (16,555) |
|
$ (3,340) |
|
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: |
|
|
|
|
|
Depreciation |
|
10,779 |
|
13,054 |
|
Amortization, including accretion and write-off of deferred financing costs |
|
4,544 |
|
4,440 |
|
Deferred income taxes |
|
(3,491) |
|
(7,004) |
|
(Earnings) loss of equity method investee |
|
(344) |
|
329 |
|
Loss on sale of fixed assets |
|
78 |
|
258 |
|
Share-based compensation expense |
|
2,560 |
|
2,207 |
|
Excess tax deficiency related to share-based compensation expense |
|
453 |
|
238 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable, net |
|
(15,101) |
|
(6,094) |
|
Inventories, net |
|
18,301 |
|
3,438 |
|
Prepaid expenses and other assets |
|
(2,668) |
|
(1,038) |
|
Accounts payable |
|
15,540 |
|
(849) |
|
Accrued expenses and other liabilities |
|
7,492 |
|
12,123 |
|
Net cash provided by operating activities |
|
21,588 |
|
17,762 |
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
|
Capital expenditures, including intangibles |
|
(9,352) |
|
(12,920) |
|
Proceeds from sale of fixed assets |
|
225 |
|
222 |
|
Investment in venture capital fund, net |
|
(92) |
|
(260) |
|
Net cash used for investing activities |
|
(9,219) |
|
(12,958) |
|
|
|
|
|
|
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FINANCING ACTIVITIES: |
|
|
|
|
|
Revolving credit facility borrowings |
|
18,500 |
|
57,000 |
|
Revolving credit facility payments |
|
(59,000) |
|
(58,000) |
|
Proceeds from issuance of debt |
|
12,805 |
|
17,677 |
|
Repayments of debt |
|
(13,366) |
|
(17,690) |
|
Repurchase of Common Shares to satisfy employee tax withholding |
|
(302) |
|
(666) |
|
Net cash used for financing activities |
|
(41,363) |
|
(1,679) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
6,934 |
|
(1,854) |
|
Net change in cash and cash equivalents |
|
(22,060) |
|
1,271 |
|
Cash and cash equivalents at beginning of period |
|
71,832 |
|
40,841 |
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ 49,772 |
|
$ 42,112 |
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
Cash paid for interest, net |
|
$ 6,708 |
|
$ 8,003 |
|
Cash paid for income taxes, net |
|
$ 6,937 |
|
$ 4,372 |
|
Capital expenditures included in accounts payable |
|
$ 1,084 |
|
$ 479 |
|
Regulation G Non-GAAP Financial Measure Reconciliations
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Exhibit 1 - Reconciliation of Adjusted Operating Income (Loss) |
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Reconciliation of Adjusted Operating Income (Loss) |
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(USD in millions) |
Q2 2024 |
|
Q2 2025 |
|
Operating Income (Loss) |
$ 3.4 |
|
$ (2.6) |
|
|
|
|
|
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Add: Pre-Tax Business Realignment Costs |
1.9 |
|
1.7 |
|
Add: Pre-Tax Strategic Review Costs |
— |
|
1.0 |
|
Add: Pre-Tax Share-Based Compensation Accelerated Vesting |
— |
|
0.3 |
|
Adjusted Operating Income (Loss) |
$ 5.4 |
|
$ 0.4 |
|
Exhibit 2 – Reconciliation of Adjusted Tax Rate |
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|
Reconciliation of Q2 2025 Adjusted Tax Rate |
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|
(USD in millions) |
Q2 2025 |
|
Tax Rate |
|
Loss Before Tax |
$ (9.1) |
|
|
|
|
|
|
|
|
Add: Pre-Tax Business Realignment Costs |
1.7 |
|
|
|
Add: Pre-Tax Strategic Review Costs |
1.0 |
|
|
|
Add: Pre-Tax Share-Based Compensation Accelerated Vesting |
0.3 |
|
|
|
Adjusted Loss Before Tax |
$ (6.1) |
|
|
|
|
|
|
|
|
Income Tax Expense |
$ 0.2 |
|
(2.7) % |
|
|
|
|
|
|
Add: Tax Impact from Pre-Tax Adjustments |
0.7 |
|
|
|
Adjusted Income Tax Expense on Adjusted Loss Before Tax |
$ 1.0 |
|
(15.7) % |
|
Exhibit 3 - Reconciliation of Adjusted Net Loss and EPS |
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|
(USD in millions, except EPS) |
Q2 2025 |
|
Q2 2025 EPS |
|
Net Loss |
$ (9.4) |
|
$ (0.34) |
|
|
|
|
|
|
Add: After-Tax Business Realignment Costs |
1.3 |
|
0.05 |
|
Add: After-Tax Strategic Review Costs |
0.8 |
|
0.03 |
|
Add: After-Tax Share-Based Compensation Accelerated Vesting |
0.2 |
|
0.01 |
|
Adjusted Net Loss |
$ (7.0) |
|
$ (0.25) |
|
Exhibit 4 – Reconciliation of Adjusted EBITDA |
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|
Reconciliation of Adjusted EBITDA |
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|
(USD in millions) |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Income (Loss) Before Tax |
|
$ 1.9 |
|
$ (3.7) |
|
$ (6.2) |
|
$ (5.6) |
|
$ (9.1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
3.8 |
|
3.6 |
|
3.4 |
|
3.2 |
|
3.1 |
|
Depreciation and amortization |
|
8.5 |
|
8.8 |
|
8.3 |
|
7.3 |
|
7.6 |
|
EBITDA |
|
$ 14.2 |
|
$ 8.8 |
|
$ 5.5 |
|
$ 4.8 |
|
$ 1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Pre-Tax Business Realignment Costs |
|
1.9 |
|
0.3 |
|
0.4 |
|
2.8 |
|
1.7 |
|
Add: Pre-Tax Environmental Remediation Costs |
|
— |
|
0.2 |
|
— |
|
— |
|
— |
|
Add: Pre-Tax Strategic Review Costs |
|
— |
|
— |
|
— |
|
— |
|
1.0 |
|
Add: Pre-Tax Share-Based Compensation Accelerated Vesting |
|
— |
|
— |
|
— |
|
— |
|
0.3 |
|
Adjusted EBITDA |
|
$ 16.1 |
|
$ 9.2 |
|
$ 6.0 |
|
$ 7.6 |
|
$ 4.6 |
|
Exhibit 5 – Segment Adjusted Operating Income (Loss)
|
|||||
|
Reconciliation of Control Devices Adjusted Operating Income |
|||||
|
|
|||||
|
(USD in millions) |
Q2 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Control Devices Operating Income |
$ 3.7 |
|
$ 1.2 |
|
$ 2.6 |
|
|
|
|
|
|
|
|
Add: Pre-Tax Business Realignment Costs |
— |
|
0.4 |
|
0.3 |
|
Control Devices Adjusted Operating Income |
$ 3.7 |
|
$ 1.5 |
|
$ 2.8 |
|
|
|||||
|
Reconciliation of Electronics Adjusted Operating Income |
|||||
|
|
|||||
|
(USD in millions) |
Q2 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Electronics Operating Income |
$ 9.8 |
|
$ 5.5 |
|
$ 2.7 |
|
|
|
|
|
|
|
|
Add: Pre-Tax Business Realignment Costs |
1.9 |
|
1.4 |
|
1.4 |
|
Electronics Adjusted Operating Income |
$ 11.7 |
|
$ 6.9 |
|
$ 4.2 |
|
Exhibit 6 – Reconciliation of Free Cash Flow |
|||
|
|
|||
|
(USD in millions) |
Q2 2024 |
|
Q2 2025 |
|
Cash Flow from Operating Activities |
$ 8.7 |
|
$ 10.7 |
|
|
|
|
|
|
Capital Expenditures, including Intangibles |
(7.1) |
|
(3.3) |
|
Proceeds from Sale of Fixed Assets |
0.1 |
|
0.1 |
|
Free Cash Flow |
$ 1.7 |
|
$ 7.6 |
|
Exhibit 7 – Reconciliation of Net Debt |
|||
|
|
|||
|
(USD in millions) |
Q1 2025 |
|
Q2 2025 |
|
Total Debt |
|
|
|
|
|
|
|
|
|
Less: Cash and Cash Equivalents |
79.1 |
|
49.8 |
|
Net Debt |
$ 124.1 |
|
$ 114.6 |
|
Exhibit 8 – Reconciliation of Compliance Leverage Ratio |
|||||||||
|
|
|||||||||
|
Reconciliation of Adjusted EBITDA for Compliance Calculation |
|||||||||
|
(USD in millions) |
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Income (Loss) Before Tax |
$ 1.9 |
|
$ (3.7) |
|
$ (6.2) |
|
$ (5.6) |
|
$ (9.1) |
|
Interest Expense, net |
3.8 |
|
3.6 |
|
3.4 |
|
3.2 |
|
3.1 |
|
Depreciation and Amortization |
8.5 |
|
8.8 |
|
8.3 |
|
7.3 |
|
7.6 |
|
EBITDA |
$ 14.2 |
|
$ 8.8 |
|
$ 5.5 |
|
$ 4.8 |
|
$ 1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Compliance adjustments: |
|
|
|
|
|
|
|
|
|
|
Add: Non-Cash Impairment Charges and Write-offs or Write Downs |
— |
|
— |
|
0.4 |
|
— |
|
0.1 |
|
Add: Adjustments from Foreign Currency Impact |
(2.4) |
|
(0.3) |
|
(1.8) |
|
(0.4) |
|
3.4 |
|
Add: Extraordinary, Non-recurring or Unusual Items |
— |
|
— |
|
— |
|
— |
|
— |
|
Add: Cash Restructuring Charges |
0.5 |
|
0.7 |
|
0.3 |
|
1.6 |
|
0.5 |
|
Add: Charges for Transactions, Amendments, and Refinances |
— |
|
— |
|
— |
|
0.3 |
|
1.0 |
|
Add: Adjustment to |
0.1 |
|
0.8 |
|
0.2 |
|
(0.3) |
|
(0.1) |
|
Add: Accrual-based Expenses |
7.1 |
|
1.3 |
|
6.4 |
|
7.3 |
|
5.6 |
|
Less: Cash Payments for Accrual-based Expenses |
(3.7) |
|
(3.3) |
|
(2.8) |
|
(6.1) |
|
(4.3) |
|
Adjusted EBITDA (Compliance) |
$ 15.8 |
|
$ 7.9 |
|
$ 8.2 |
|
$ 7.3 |
|
$ 7.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted TTM EBITDA (Compliance) |
|
|
|
|
|
|
$ 39.1 |
|
$ 31.1 |
|
Reconciliation of Adjusted Cash for Compliance Calculation |
|||
|
(USD in millions) |
Q1 2025 |
|
Q2 2025 |
|
Total Cash and Cash Equivalents |
$ 79.1 |
|
$ 49.8 |
|
|
|
|
|
|
Less: 35% of Cash in Foreign Locations |
(23.3) |
|
(13.4) |
|
Total Adjusted Cash (Compliance) |
$ 55.8 |
|
$ 36.4 |
|
|
|||
|
Reconciliation of Adjusted Debt for Compliance Calculation |
|||
|
(USD in millions) |
Q1 2025 |
|
Q2 2025 |
|
Total Debt |
$ 203.2 |
|
$ 164.4 |
|
|
|
|
|
|
Outstanding Letters of Credit |
1.5 |
|
1.5 |
|
Total Adjusted Debt (Compliance) |
$ 204.7 |
|
$ 165.9 |
|
|
|
|
|
|
Adjusted Net Debt (Compliance) |
$ 148.9 |
|
$ 129.5 |
|
Compliance Leverage Ratio (Net Debt / TTM EBITDA) |
3.81x |
|
4.17x |
|
Compliance Leverage Ratio Maximum Requirement |
6.00x |
|
5.50x |
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