Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-13337 | |
Entity Registrant Name | STONERIDGE, INC | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1598949 | |
Entity Address, Address Line One | 39675 MacKenzie Drive, Suite 400 | |
Entity Address, City or Town | Novi | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48377 | |
City Area Code | 248 | |
Local Phone Number | 489-9300 | |
Title of 12(g) Security | Common Shares | |
Trading Symbol | SRI | |
Amendment Flag | false | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,521,833 | |
Entity Central Index Key | 0001043337 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Accelerated Filer |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 34,705 | $ 54,798 |
Accounts receivable, less reserves of $1,132 and $962, respectively | 185,296 | 158,155 |
Inventories, net | 175,305 | 152,580 |
Prepaid expenses and other current assets | 43,277 | 44,018 |
Total current assets | 438,583 | 409,551 |
Long-term assets: | ||
Property, plant and equipment, net | 106,227 | 104,643 |
Intangible assets, net | 46,638 | 45,508 |
Goodwill | 34,870 | 34,225 |
Operating lease right-of-use asset | 12,225 | 13,762 |
Investments and other long-term assets, net | 46,954 | 44,416 |
Total long-term assets | 246,914 | 242,554 |
Total assets | 685,497 | 652,105 |
Current liabilities: | ||
Revolving credit facility | 171,597 | 0 |
Current portion of debt | 0 | 1,450 |
Accounts payable | 136,457 | 110,202 |
Accrued expenses and other current liabilities | 75,579 | 66,040 |
Total current liabilities | 383,633 | 177,692 |
Long-term liabilities: | ||
Revolving credit facility | 0 | 167,802 |
Deferred income taxes | 7,975 | 8,498 |
Operating lease long-term liability | 8,967 | 10,594 |
Other long-term liabilities | 7,284 | 6,577 |
Total long-term liabilities | 24,226 | 193,471 |
Shareholders' equity: | ||
Preferred Shares, without par value, 5,000 shares authorized, none issued | 0 | 0 |
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,522 and 27,341 shares outstanding at June 30, 2023 and December 31, 2022, respectively, with no stated value | 0 | 0 |
Additional paid-in capital | 226,713 | 232,758 |
Common Shares held in treasury, 1,444 and 1,625 shares at June 30, 2023 and December 31, 2022, respectively, at cost | (44,367) | (50,366) |
Retained earnings | 191,314 | 201,692 |
Accumulated other comprehensive loss | (96,022) | (103,142) |
Total shareholders' equity | 277,638 | 280,942 |
Total liabilities and shareholders' equity | $ 685,497 | $ 652,105 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 1,132 | $ 962 |
Preferred shares, authorized (in shares) | 5,000 | 5,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, authorized (in shares) | 60,000 | 60,000 |
Common shares, issued (in shares) | 28,966 | 28,966 |
Common shares, outstanding (in shares) | 27,522 | 27,341 |
Common shares held in treasury, shares (in shares) | 1,444 | 1,625 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 266,814 | $ 220,936 | $ 508,139 | $ 441,994 |
Costs and expenses: | ||||
Cost of goods sold | 206,326 | 182,372 | 404,849 | 361,987 |
Selling, general and administrative | 33,491 | 28,938 | 63,354 | 56,337 |
Design and development | 22,666 | 15,554 | 39,634 | 32,582 |
Operating income (loss) | 4,331 | (5,928) | 302 | (8,912) |
Interest expense, net | 3,120 | 1,217 | 5,866 | 3,003 |
Equity in loss of investee | 329 | 377 | 500 | 458 |
Other expense (income), net | 2,387 | (596) | 3,535 | 735 |
Loss before income taxes | (1,505) | (6,926) | (9,599) | (13,108) |
Provision for income taxes | 1,487 | 413 | 779 | 1,906 |
Net loss | $ (2,992) | $ (7,339) | $ (10,378) | $ (15,014) |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.11) | $ (0.27) | $ (0.38) | $ (0.55) |
Diluted (in dollars per share) | $ (0.11) | $ (0.27) | $ (0.38) | $ (0.55) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 27,451,623 | 27,268,938 | 27,400,490 | 27,233,808 |
Diluted (in shares) | 27,451,623 | 27,268,938 | 27,400,490 | 27,233,808 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net loss | $ (2,992) | $ (7,339) | $ (10,378) | $ (15,014) | |||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation | 2,992 | (15,712) | [1] | 7,064 | (11,551) | [1] | |
Unrealized gain (loss) on derivatives | [2] | 288 | (53) | 56 | 995 | ||
Other comprehensive income (loss), net of tax | 3,280 | (15,765) | 7,120 | (10,556) | |||
Comprehensive income (loss) | $ 288 | $ (23,104) | $ (3,258) | $ (25,570) | |||
[1] Net of tax benefit of $411 and $267 for the three and six months ended June 30, 2022, respectively.[2]Net of tax expense (benefit) $76 and $(15) for the three months ended June 30, 2023 and 2022, respectively. Net of tax expense of $15 and $264 for the six months ended June 30, 2023 and 2022, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit on foreign currency translation | $ (411) | $ (267) | ||
Tax (benefit) expense | $ 76 | $ (15) | $ 15 | $ 264 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (10,378) | $ (15,014) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation | 13,161 | 13,618 |
Amortization, including accretion and write-off of deferred financing costs | 4,004 | 4,323 |
Deferred income taxes | (3,782) | (1,868) |
Loss of equity method investee | 500 | 458 |
Gain on sale of fixed assets | (854) | (95) |
Share-based compensation expense | 1,271 | 2,834 |
Excess tax deficiency related to share-based compensation expense | 66 | 259 |
Gain on settlement of net investment hedge | 0 | (3,716) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (28,100) | (15,481) |
Inventories, net | (23,142) | (11,864) |
Prepaid expenses and other assets | 3,313 | (15,538) |
Accounts payable | 27,069 | 16,577 |
Accrued expenses and other liabilities | 12,184 | 7,689 |
Net cash used for operating activities | (4,688) | (17,818) |
INVESTING ACTIVITIES: | ||
Capital expenditures, including intangibles | (18,025) | (14,890) |
Proceeds from sale of fixed assets | 1,729 | 140 |
Proceeds from settlement of net investment hedge | 0 | 3,820 |
Investment in venture capital fund, net | 0 | (450) |
Net cash used for investing activities | (16,296) | (11,380) |
FINANCING ACTIVITIES: | ||
Revolving credit facility borrowings | 42,000 | 11,190 |
Revolving credit facility payments | (38,068) | (16,500) |
Proceeds from issuance of debt | 16,402 | 19,163 |
Repayments of debt | (18,086) | (20,358) |
Earn-out consideration cash payment | 0 | (6,276) |
Repurchase of Common Shares to satisfy employee tax withholding | (1,325) | (699) |
Net cash provided by (used for) financing activities | 923 | (13,480) |
Effect of exchange rate changes on cash and cash equivalents | (32) | (2,177) |
Net change in cash and cash equivalents | (20,093) | (44,855) |
Cash and cash equivalents at beginning of period | 54,798 | 85,547 |
Cash and cash equivalents at end of period | 34,705 | 40,692 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net | 5,622 | 3,022 |
Cash paid for income taxes, net | $ 5,927 | $ 3,936 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Number of Common Shares outstanding | Number of treasury shares | Additional paid-in capital | Common Shares held in treasury | Retained earnings | Accumulated other comprehensive loss | ||
Beginning balance (in shares) at Dec. 31, 2021 | 27,191 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,775 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 295,950 | $ 232,490 | $ (55,264) | $ 215,748 | $ (97,024) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (7,675) | (7,675) | |||||||
Unrealized gain (loss) on derivatives, net | 1,048 | 1,048 | |||||||
Currency translation adjustments | 4,161 | 4,161 | |||||||
Issuance of Common Shares ( in shares) | 161 | 161 | |||||||
Repurchased Common Shares for treasury (in shares) | 36 | 36 | |||||||
Repurchased Common Shares for treasury, net | 4,093 | 4,093 | |||||||
Share-based compensation, net | (3,653) | (3,653) | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 27,316 | ||||||||
Ending balance (in shares) at Mar. 31, 2022 | 1,650 | ||||||||
Ending balance at Mar. 31, 2022 | 293,924 | 228,837 | (51,171) | 208,073 | (91,815) | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 27,191 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,775 | ||||||||
Beginning balance at Dec. 31, 2021 | 295,950 | 232,490 | (55,264) | 215,748 | (97,024) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (15,014) | ||||||||
Unrealized gain (loss) on derivatives, net | [1] | 995 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 27,318 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 1,648 | ||||||||
Ending balance at Jun. 30, 2022 | 272,528 | 230,455 | (51,081) | 200,734 | (107,580) | ||||
Beginning balance (in shares) at Mar. 31, 2022 | 27,316 | ||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 1,650 | ||||||||
Beginning balance at Mar. 31, 2022 | 293,924 | 228,837 | (51,171) | 208,073 | (91,815) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (7,339) | (7,339) | |||||||
Unrealized gain (loss) on derivatives, net | (53) | [1] | (53) | ||||||
Currency translation adjustments | (15,712) | (15,712) | |||||||
Issuance of Common Shares ( in shares) | 4 | 4 | |||||||
Repurchased Common Shares for treasury (in shares) | 2 | 2 | |||||||
Repurchased Common Shares for treasury, net | 90 | 90 | |||||||
Share-based compensation, net | 1,618 | 1,618 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 27,318 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 1,648 | ||||||||
Ending balance at Jun. 30, 2022 | $ 272,528 | 230,455 | (51,081) | 200,734 | (107,580) | ||||
Beginning balance (in shares) at Dec. 31, 2022 | 27,341 | 27,341 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 1,625 | 1,625 | |||||||
Beginning balance at Dec. 31, 2022 | $ 280,942 | 232,758 | (50,366) | 201,692 | (103,142) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (7,386) | (7,386) | |||||||
Unrealized gain (loss) on derivatives, net | (232) | (232) | |||||||
Currency translation adjustments | 4,072 | 4,072 | |||||||
Issuance of Common Shares ( in shares) | 234 | 234 | |||||||
Repurchased Common Shares for treasury (in shares) | 62 | (62) | |||||||
Repurchased Common Shares for treasury, net | 5,649 | 5,649 | |||||||
Share-based compensation, net | (6,802) | (6,802) | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 27,513 | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 1,453 | ||||||||
Ending balance at Mar. 31, 2023 | $ 276,243 | 225,956 | (44,717) | 194,306 | (99,302) | ||||
Beginning balance (in shares) at Dec. 31, 2022 | 27,341 | 27,341 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 1,625 | 1,625 | |||||||
Beginning balance at Dec. 31, 2022 | $ 280,942 | 232,758 | (50,366) | 201,692 | (103,142) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (10,378) | ||||||||
Unrealized gain (loss) on derivatives, net | [1] | $ 56 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 27,522 | 27,522 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 1,444 | 1,444 | |||||||
Ending balance at Jun. 30, 2023 | $ 277,638 | 226,713 | (44,367) | 191,314 | (96,022) | ||||
Beginning balance (in shares) at Mar. 31, 2023 | 27,513 | ||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 1,453 | ||||||||
Beginning balance at Mar. 31, 2023 | 276,243 | 225,956 | (44,717) | 194,306 | (99,302) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net loss | (2,992) | (2,992) | |||||||
Unrealized gain (loss) on derivatives, net | 288 | [1] | 288 | ||||||
Currency translation adjustments | 2,992 | 2,992 | |||||||
Issuance of Common Shares ( in shares) | 15 | 15 | |||||||
Repurchased Common Shares for treasury (in shares) | 6 | (6) | |||||||
Repurchased Common Shares for treasury, net | 350 | 350 | |||||||
Share-based compensation, net | $ 757 | 757 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 27,522 | 27,522 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 1,444 | 1,444 | |||||||
Ending balance at Jun. 30, 2023 | $ 277,638 | $ 226,713 | $ (44,367) | $ 191,314 | $ (96,022) | ||||
[1]Net of tax expense (benefit) $76 and $(15) for the three months ended June 30, 2023 and 2022, respectively. Net of tax expense of $15 and $264 for the six months ended June 30, 2023 and 2022, respectively. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2022 Form 10-K . Reclassifications Certain prior period amounts have been reclassified to conform to their 2023 presentation in the condensed consolidated financial statements. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance in ASU 2020-04 provides temporary optional expedient and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”) (also known as the “reference rate reform”). The guidance allows companies to elect not to apply certain modification accounting requirements to contracts affected by the reference rate reform, if certain criteria are met. The guidance will also allow companies to elect various optional expedients, which would allow them to continue to apply hedge accounting for hedging relationships affected by the reference rate reform, if certain criteria are met. The new standard was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2023. In February 2022, we amended our credit facility to incorporate hardwired mechanics to permit a future replacement of LIBOR as the interest reference rate without lender consent. The Company is applying the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company’s condensed consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products and services, which is usually when the parts are shipped or delivered to the customer’s premises. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. Incidental items that are not significant in the context of the contract are recognized as expense. The expected costs associated with our base warranties continue to be recognized as expense when the products are sold. Customer returns only occur if products do not meet the specifications of the contract and are not connected to any repurchase obligations of the Company. The Company does not have any financing components or significant payment terms as payment occurs shortly after the point of sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Company from a customer are excluded from revenue. Amounts billed to customers related to shipping and handling costs are included in net sales in the condensed consolidated statements of operations. Shipping and handling costs associated with outbound freight after control over a product is transferred to the customer are accounted for as a fulfillment cost and are included in cost of sales. Revenue by Reportable Segment Control Devices. Our Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle. This segment includes product lines such as actuators, sensors, switches and connectors. We sell these products principally to the automotive market in the North American and Asia Pacific regions. To a lesser extent, we also sell these products to the commercial vehicle and agricultural markets in the North American and Asia Pacific regions. Our customers included in these markets primarily consist of original equipment manufacturers (“OEM”) and companies supplying components directly to the OEMs (“Tier 1 supplier”). Electronics. Our Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products and electronic control units. These products are sold principally to the commercial vehicle market primarily through our OEM and aftermarket channels in the European, North American and Asia Pacific regions. The vision and safety systems are sold principally to the commercial vehicle and off-highway vehicle markets in the European and North American regions. Stoneridge Brazil. Our Stoneridge Brazil segment primarily serves the South American region and specializes in the design, manufacture and sale of vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices, driver information systems and telematics solutions. Stoneridge Brazil sells its products through the aftermarket distribution channel, to factory authorized dealer installers, also referred to as original equipment services, directly to OEMs and through mass merchandisers. In addition, monitoring services and tracking devices are sold directly to corporate customers and individual consumers. The following tables disaggregate our revenue by reportable segment and geographical location (1) for the three months ended June 30, 2023 and 2022: Control Devices Electronics Stoneridge Brazil Consolidated Three months ended June 30, 2023 2022 2023 2022 2023 2022 2023 2022 Net Sales: North America $ 78,745 $ 71,908 $ 56,845 $ 37,734 $ — $ — $ 135,590 $ 109,642 South America — — — — 14,908 13,349 14,908 13,349 Europe — — 99,169 83,578 — — 99,169 83,578 Asia Pacific 13,375 12,658 3,772 1,709 — — 17,147 14,367 Total net sales $ 92,120 $ 84,566 $ 159,786 $ 123,021 $ 14,908 $ 13,349 $ 266,814 $ 220,936 The following tables disaggregate our revenue by reportable segment and geographical location (1) for the six months ended June 30, 2023 and 2022: Control Devices Electronics Stoneridge Brazil Consolidated Six months ended June 30, 2023 2022 2023 2022 2023 2022 2023 2022 Net Sales: North America $ 154,426 $ 143,398 $ 104,887 $ 70,072 $ — $ — $ 259,313 $ 213,470 South America — — — — 29,164 25,394 29,164 25,394 Europe — — 186,418 175,363 — — 186,418 175,363 Asia Pacific 23,636 25,228 9,608 2,539 — — 33,244 27,767 Total net sales $ 178,062 $ 168,626 $ 300,913 $ 247,974 $ 29,164 $ 25,394 $ 508,139 $ 441,994 ___________________________ (1) Company sales based on geographic location are where the sale originates not where the customer is located. Performance Obligations For OEM and Tier 1 supplier customers, the Company typically enters into contracts to provide serial production parts that consist of a set of documents including, but not limited to, an award letter, master purchase agreement and master terms and conditions. For each production product, the Company enters into separate purchase orders that contain the product specifications and an agreed-upon price. The performance obligation does not exist until a customer release is received for a specific number of parts. The majority of the parts sold to OEM and Tier 1 supplier customers are customized to the specific customer, with the exception of camera monitoring systems (“CMS”) sold through our aftermarket channel that are common across all customers. The transaction price is equal to the contracted price per part and there is no expectation of material variable consideration in the transaction price. For most customer contracts, the Company does not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer; therefore, the Company recognizes revenue at the point in time it satisfies a performance obligation by transferring control of a part to the customer. Certain customer contracts contain an enforceable right to payment if the customer terminates the contract for convenience and therefore are recognized over time using the cost to complete input method. Our aftermarket products are focused on meeting the demand for repair and replacement parts, compliance parts and accessories and are sold primarily to aftermarket distributors and mass retailers in our South American, European and North American markets. Aftermarket products have one type of performance obligation which is the delivery of aftermarket parts and spare parts. For aftermarket customers, the Company typically has standard terms and conditions for all customers. In addition, aftermarket products have alternative use as they can be sold to multiple customers. Revenue for aftermarket part production contracts is recognized at a point in time when the control of the parts transfers to the customer which is based on the shipping terms. Aftermarket contracts may include variable consideration related to discounts and rebates which is included in the transaction price upon recognizing the product revenue. A small portion of the Company’s sales are comprised of monitoring services that include both monitoring devices and fees to individual, corporate, fleet and cargo customers in our Stoneridge Brazil segment. These monitoring service contracts are generally not capable of being distinct and are accounted for as a single performance obligation. We recognize revenue for our monitoring products and services contracts over the life of the contract. There is no variable consideration associated with these contracts. The Company has the right to consideration from a customer in the amount that corresponds directly with the value to the customer of the Company’s performance to date. Therefore, the Company recognizes revenue over time using the practical expedient ASC 606-10-55-18 in the amount the Company has a “right to invoice” rather than selecting an output or input method. Contract Balances The Company had no material contract assets, contract liabilities or capitalized contract acquisition costs as of June 30, 2023 and December 31, 2022. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or net realizable value. The Company evaluates and adjusts as necessary its excess and obsolescence reserve on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. Inventory cost includes material, labor and overhead. Inventories consist of the following: June 30, December 31, Raw materials $ 133,491 $ 121,983 Work-in-progress 10,337 7,812 Finished goods 31,477 22,785 Total inventories, net $ 175,305 $ 152,580 Inventory valued using the FIFO method was $161,038 and $139,996 at June 30, 2023 and December 31, 2022, respectively. Inventory valued using the average cost method was $14,267 and $12,584 at June 30, 2023 and December 31, 2022, respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Financial Instruments A financial instrument is cash or a contract that imposes an obligation to deliver or conveys a right to receive cash or another financial instrument. The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered to be representative of fair value because of the short maturity of these instruments. The fair value of debt approximates the carrying value of debt, due to the variable interest rate on the Credit Facility and the maturity of the remaining outstanding debt. Derivative Instruments and Hedging Activities On June 30, 2023, the Company had open Mexican peso-denominated foreign currency forward contracts. The Company used foreign currency forward contracts solely for hedging and not for speculative purposes during 2023 and 2022. Management believes that its use of these instruments to reduce risk is in the Company’s best interest. The counterparties to these financial instruments are financial institutions with investment grade credit ratings. Foreign Currency Exchange Rate Risk The Company conducts business internationally and, therefore, is exposed to foreign currency exchange rate risk. The Company uses derivative financial instruments as cash flow hedges and used net investment hedges to manage its exposure to fluctuations in foreign currency exchange rates by reducing the effect of such fluctuations on foreign currency denominated intercompany transactions, inventory purchases and other foreign currency exposures. Net Investment Hedges During 2021, the Company entered into two cross-currency swaps, designated as net investment hedges, with notional values of $25,000 each that were scheduled to mature in August 2026 and August 2028. These swaps hedged a portion of the net investment in a certain euro-denominated subsidiary. As a result of favorable market conditions, on May 5, 2022, the Company unwound the two net investment hedges and recognized a net gain of $3,716, which was recorded on the Company’s condensed consolidated statement of operations as a component of other expense, net for the second quarter ended June 30, 2022. The cash received from the settlement of these swaps of $3,820 was classified in investing activities in the condensed consolidated statement of cash flows. In the fourth quarter ended December 31, 2022, the Company determined it had incorrectly recognized the net gain in the condensed consolidated statement of operations and reclassified the net gain of $3,716 to other comprehensive loss The Company elected to assess hedge effectiveness of the net investment hedges under the spot method. Accordingly, periodic changes in the fair value of the derivative instruments attributable to factors other than spot exchange rate variability were excluded from the measurement of hedge ineffectiveness and reported directly in earnings each reporting period. The change in fair value of these derivative instruments was recorded in cumulative translation adjustment, which is a component of accumulated other comprehensive loss in the condensed consolidated balance sheets. The Company had no outstanding net investment hedges at June 30, 2023 or December 31, 2022. Cash Flow Hedges The Company entered into foreign currency forward contracts to hedge the Mexican peso currency in 2023 and 2022. These forward contracts were executed to hedge forecasted transactions and have been accounted for as cash flow hedges. As such, gains and losses on derivatives qualifying as cash flow hedges are recorded in accumulated other comprehensive loss, to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated other comprehensive loss fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. The cash flow hedges were highly effective. The effectiveness of the transactions was measured using regression analysis and forecasted future purchases of the currency. In certain instances, the foreign currency forward contracts may not qualify for hedge accounting or are not designated as hedges and, therefore, are marked-to-market with gains and losses recognized in the Company’s condensed consolidated statements of operations as a component of other expense (income), net. During 2023 and 2022, all of the Company’s foreign currency forward contracts were designated as cash flow hedges. The Company’s foreign currency forward contracts offset a portion of the gains and losses on the underlying foreign currency denominated transactions as follows: Mexican peso-denominated Foreign Currency Forward Contracts – Cash Flow Hedges The Company holds Mexican peso-denominated foreign currency forward contracts with a notional amount at June 30, 2023 of $7,862 which expire ratably on a monthly basis from July 2023 to December 2023. The notional amount at December 31, 2022 related to Mexican peso-denominated foreign currency forward contracts was $0. The Company evaluated the effectiveness of the Mexican peso and U.S. dollar-denominated forward contracts held as of June 30, 2023 and concluded that the hedges were effective. Interest Rate Risk Interest Rate Risk – Cash Flow Hedge On February 18, 2020, the Company entered into a floating-to-fixed interest rate swap agreement (the “Interest Rate Swap”) with a notional amount of $50,000 to hedge its exposure to interest payment fluctuations on a portion of its Credit Facility borrowings. The Interest Rate Swap matured on March 10, 2023. The Interest Rate Swap was designated as a cash flow hedge of the variable interest rate obligation under the Company's Credit Facility. Accordingly, the change in fair value of the Interest Rate Swap was recognized in accumulated other comprehensive loss. The Interest Rate Swap agreement required monthly settlements on the same days that the Credit Facility interest payments were due and had a maturity date of March 10, 2023, which was prior to the Credit Facility maturity date of June 5, 2024. Under the Interest Rate Swap terms, the Company paid a fixed interest rate and received a floating interest rate based on the one-month LIBOR, with a floor. The critical terms of the Interest Rate Swap were aligned with the terms of the Credit Facility, resulting in no hedge ineffectiveness. The difference between amounts to be received and paid under the Interest Rate Swap were recognized as a component of interest expense, net on the condensed consolidated statements of operations. The Interest Rate Swap settlements increased interest expense, net by $80 for the three months ended June 30, 2022. The Interest Rate Swap settlements reduced interest expense, net by $290 and increased interest expense, net by $233 for the six months ended June 30, 2023 and 2022, respectively. The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Notional amounts (A) Prepaid expenses June 30, December 31, June 30, December 31, Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 7,862 $ — $ 365 $ — Interest rate swap $ — $ 50,000 $ — $ 294 _____________________________ (A) Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars. Gross amounts recorded for the cash flow and net investment hedges in other comprehensive income (loss) and in net loss for the three months ended June 30 were as follows: Gain recorded in other Gain (loss) reclassified from other comprehensive income (loss) into net loss (A) 2023 2022 2023 2022 Derivatives designated as cash flow hedges: Forward currency contracts $ 416 $ 72 $ 51 $ 506 Interest rate swap $ — $ 286 $ — $ (80) Derivatives designated as net investment hedges: Cross-currency swaps $ — $ 1,641 $ — $ 3,598 _____________________________ (A) Gains reclassified from other comprehensive income (loss) into net loss recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $13 and $3,697 for the three months ended June 30, 2023 and 2022, respectively. Gains reclassified from other comprehensive income (loss) into net loss recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $38 and $407 for the three months ended June 30, 2023 and 2022, respectively. Gains (losses) reclassified from other comprehensive income (loss) into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $0 and $(80) for the three months ended June 30, 2023 and 2022, respectively. Gross amounts recorded for the cash flow and net investment hedges in other comprehensive income (loss) and in net loss for the six months ended June 30 were as follows: Gain (loss) recorded in other Gain (loss) reclassified from other comprehensive income (loss) into net loss (A) 2023 2022 2023 2022 Derivatives designated as cash flow hedges: Forward currency contracts $ 416 $ 987 $ 51 $ 757 Interest rate swap $ (4) $ 796 $ 290 $ (233) Derivatives designated as net investment hedges: Cross-currency swaps $ — $ 2,328 $ — $ 3,598 (A) Gains reclassified from other comprehensive income (loss) into net loss recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $13 and $3,748 for the six months ended June 30, 2023 and 2022, respectively. Gains reclassified from other comprehensive income (loss) into net loss recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $38 and $607 for the six months ended June 30, 2023 and 2022, respectively. Gains (losses) reclassified from other comprehensive income (loss) into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $290 and $(233) for the six months ended June 30, 2023 and 2022, respectively. Cash flows from derivatives used to manage foreign currency exchange and interest rate risks are classified as operating activities within the condensed consolidated statements of cash flows. Fair Value Measurements Certain assets and liabilities held by the Company are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of the inputs used. Fair values estimated using Level 1 inputs consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Fair values estimated using Level 2 inputs, other than quoted prices, are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward currency and cross-currency contracts, inputs include forward foreign currency exchange rates. For the interest rate swap, inputs included LIBOR. Fair values estimated using Level 3 inputs consist of significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used. June 30, December 31, Fair values estimated using Fair Level 1 Level 2 Level 3 Fair Financial assets carried at fair value: Forward currency contracts $ 365 $ — $ 365 $ — $ — Interest rate swap — — — — 294 Total financial assets carried at fair value $ 365 $ — $ 365 $ — $ 294 The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis. Stoneridge Brazil 2022 Balance at January 1 $ 7,351 Foreign currency adjustments 921 Earn-out consideration cash payment (8,272) Balance at June 30 $ — The Company was required to pay the Stoneridge Brazil earn-out consideration based on Stoneridge Brazil’s financial performance in 2021. The fair value of the Stoneridge Brazil earn-out consideration was based on earnings before interest, taxes, depreciation and amortization (“EBITDA”) in 2021. The Stoneridge Brazil earn-out consideration obligation was recorded within accrued expenses and other current liabilities in the condensed consolidated balance sheets as of December 31, 2021. The earn-out consideration obligation of $8,272 was paid in April 2022 and recorded in the condensed consolidated statement of cash flows within operating and financing activities in the amounts of $1,996 and $6,276, respectively. The foreign currency impact related to the Stoneridge Brazil earn-out consideration was included in other expense, net in the condensed consolidated statements of operations. There were no transfers in or out of Level 3 from other levels in the fair value hierarchy for the six months ended June 30, 2023. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based CompensationCompensation expense for share-based compensation arrangements, which is recognized in the condensed consolidated statements of operations as a component of SG&A expenses, was $1,202 and $1,736 for the three months ended June 30, 2023 and 2022, respectively. Compensation expense for share-based compensation arrangements was $1,271 and $2,834 for the six months ended June 30, 2023 and 2022, respectively. The six months ended June 30, 2023 included income from the forfeiture of certain grants associated with employee resignations. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following at June 30, 2023 and December 31, 2022: June 30, December 31, Interest rates at June 30, 2023 Maturity Debt Revolving Credit Facility $ 171,597 $ 167,802 8.00 % June 2024 Suzhou short-term credit line — 1,450 Total debt 171,597 169,252 Less: current portion (171,597) (1,450) Total long-term debt, net $ — $ 167,802 Revolving Credit Facility On June 5, 2019, the Company entered into the Fourth Amended and Restated Credit Agreement (the “Credit Facility”). The Credit Facility provided for a $400,000 senior secured revolving credit facility (which, as described below in the discussion of Amendment No. 3 to the Credit Facility was amended to be a $300,000 credit commitment) and it replaced and superseded the Third Amended and Restated Credit Agreement that provided for a $300,000 revolving credit facility. The Credit Facility had an accordion feature that allowed the Company to increase the availability by up to $150,000 upon the satisfaction of certain conditions and includes a letter of credit subfacility, swing line subfacility and multicurrency subfacility. The Credit Facility has a termination date of June 5, 2024. Borrowings under the Credit Facility bear interest at either the Base Rate or the SOFR rate plus the fallback spread, at the Company’s option, plus the applicable margin as set forth in the Credit Facility. The Credit Facility contains certain financial covenants that require the Company to maintain less than a maximum leverage ratio and more than a minimum interest coverage ratio. Our Revolving Credit Facility matures on June 5, 2024. The Company is actively involved in refinancing discussions and expects to refinance its Revolving Credit Facility prior to the issuance of the financial statements for the year ending December 31, 2023. The Company’s ability to continue as a going concern is contingent upon its ability to refinance its Revolving Credit Facility. While discussions are ongoing, the Company has not reached an agreement with respect to refinancing its capital structure and there can be no assurances that such an agreement will be reached in the future. The Credit Facility contains customary affirmative covenants and representations. The Credit Facility also contains customary negative covenants, which, among other things, are subject to certain exceptions, including restrictions on (i) indebtedness, (ii) liens, (iii) liquidations, mergers, consolidations and acquisitions, (iv) disposition of assets or subsidiaries, (v) affiliate transactions, (vi) creation or ownership of certain subsidiaries, partnerships and joint ventures, (vii) continuation of or change in business, (viii) restricted payments, (ix) prepayment of subordinated and junior lien indebtedness, (x) restrictions in agreements on dividends, intercompany loans and granting liens on the collateral, (xi) loans and investments, (xii) sale and leaseback transactions, (xiii) changes in organizational documents and fiscal year and (xiv) transactions with respect to bonding subsidiaries. The Credit Facility contains customary events of default, subject to customary thresholds and exceptions, including, among other things, (i) non-payment of principal and non-payment of interest and fees, (ii) a material inaccuracy of a representation or warranty at the time made, (iii) a failure to comply with any covenant, subject to customary grace periods in the case of certain affirmative covenants, (iv) cross default of other debt, final judgments and other adverse orders in excess of $30,000, (v) any loan document shall cease to be a legal, valid and binding agreement, (vi) certain uninsured losses or proceedings against assets with a value in excess of $30,000, (vii) ERISA events, (viii) a change of control, or (ix) bankruptcy or insolvency proceedings. Due to the ongoing impacts of the COVID-19 pandemic and supply chain disruptions on the Company’s end-markets and the resulting financial impacts on the Company, on February 28, 2022, the Company entered into Amendment No. 3 to the Fourth Amended and Restated Credit Agreement (“Amendment No. 3”). Amendment No. 3 reduced the total revolving credit commitments from $400.0 million to $300.0 million and the maximum permitted amount of swing loans from $40.0 million to $30.0 million. Amendment No. 3 provided for certain financial covenant relief and additional covenant restrictions during the “Specified Period” (the period from February 28, 2022 until the date that the Company delivered a compliance certificate for the quarter ending March 31, 2023 in form and substance satisfactory to the administrative agent). During the Specified Period: • the maximum net leverage ratio was changed to 4.00 to 1.00 for the year ended December 31, 2021, suspended for the quarters ending March 31, 2022 through September 30, 2022 and could not exceed 4.75 to 1.00 for the quarter ended December 31, 2022 or 3.50 to 1.00 for the quarter ended March 31, 2023; • the minimum interest coverage ratio of 3.50 was reduced to 2.50 for the quarter ended March 31, 2022, 2.25 for the quarter ended June 30, 2022 and 3.00 for the quarters ended September 30, 2022 and December 31, 2022; • an additional condition to drawing on the Credit Facility was added that restricted borrowings if the Company’s total of 100% of domestic and 65% of foreign cash and cash equivalents exceeded $70.0 million; • there were certain additional restrictions on Restricted Payments (as defined); and • a Permitted Acquisition (as defined) could not be consummated unless the net leverage ratio is below 3.50 to 1.00 during the Specified Period. Amendment No. 3 changed the leverage based LIBOR pricing grid through the maturity date and also retained a LIBOR floor of 50 basis points on outstanding borrowings excluding any Specified Hedge Borrowings (as defined) which remained subject to a LIBOR floor of 0 basis points. Amendment No. 3 also incorporated hardwired mechanics to permit a future replacement of LIBOR as the interest reference rate without lender consent. The Company capitalized $484 of deferred financing costs as a result of entering into Amendment No. 3. In connection with Amendment No. 3, the Company wrote off a portion of the previously recorded deferred financing costs of $365 in interest expense, net during the year ended December 31, 2022. Due to continued supply chain disruptions and macroeconomic challenges on the Company’s end-markets and the resulting financial impacts on the Company, on March 1, 2023, the Company entered into Amendment No. 4 to the Fourth Amended and Restated Credit Agreement (“Amendment No. 4”). Amendment No. 4 provides for certain financial covenant relief and additional covenant restrictions during the “Amendment No. 4 Specified Period” (the period from March 1, 2023 until the date that the Company delivers a compliance certificate for the quarter ending September 30, 2023 in form and substance satisfactory to the administrative agent). During the Amendment No. 4 Specified Period: • the maximum net leverage ratio was changed to 4.75 to 1.00 for the quarter ended March 31, 2023 and 4.25 to 1.00 for the quarter ended June 30, 2023; • the minimum interest coverage ratio of 3.50 was reduced to 3.00 for the quarters ended March 31, 2023 and June 30, 2023; • drawing on the Credit Facility continues to be restricted if the Company’s total of 100% of domestic and 65% of foreign cash and cash equivalents exceeds $70.0 million; • there continue to be certain additional restrictions on Restricted Payments (as defined); and • consistent with Amendment No. 3, a Permitted Acquisition (as defined) may not be consummated unless the net leverage ratio is below 3.50 to 1.00 during the Amendment No. 4 Specified Period. The Company capitalized $332 of deferred financing costs as a result of entering into Amendment No. 4. Borrowings outstanding on the Credit Facility were $171,597 and $167,802 at June 30, 2023 and December 31, 2022, respectively. As a result of the amendments, the Company was in compliance with all Credit Facility covenants at June 30, 2023 and December 31, 2022. The Company also has outstanding letters of credit of $1,626 at both June 30, 2023 and December 31, 2022. Debt The Company’s wholly owned subsidiary located in Stockholm, Sweden, has an overdraft credit line that allows overdrafts on the subsidiary’s bank account up to a daily maximum level of 20,000 Swedish krona, or $1,856 and $1,922, at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023 and December 31, 2022, there were no borrowings outstanding on this overdraft credit line. During the six months ended June 30, 2023, the subsidiary borrowed and repaid 171,891 Swedish krona, or $15,948. The Company’s wholly owned subsidiary located in Suzhou, China (the “Suzhou subsidiary”), has lines of credit (the “Suzhou credit line”) that allow up to a maximum borrowing level of 20,000 Chinese yuan, or $2,758 and $2,900 at June 30, 2023 and December 31, 2022, respectively. There were no borrowings outstanding on the Suzhou credit line at June 30, 2023. At December 31, 2022 there was $1,450 in borrowings outstanding on the Suzhou credit line with a weighted-average interest rate of 3.70%. The Suzhou credit line was included on the condensed consolidated balance sheet within current portion of debt. In addition, the Suzhou subsidiary has a bank acceptance draft line of credit which facilitates the extension of trade payable payment terms by 180 days. The bank acceptance draft line of credit allows up to a maximum borrowing level of 60,000 Chinese yuan, or $8,274 and $8,699 at June 30, 2023 and December 31, 2022, respectively. There was $3,905 and $1,998 utilized on the Suzhou bank acceptance draft line of credit at June 30, 2023 and December 31, 2022, respectively. The Suzhou bank acceptance draft line of credit is included on the condensed consolidated balance sheet within accounts payable. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share Basic loss per share was computed by dividing net loss by the weighted-average number of Common Shares outstanding for each respective period. Diluted loss per share was calculated by dividing net income by the weighted-average of all potentially dilutive Common Shares that were outstanding during the periods presented. However, for all periods in which the Company recognized a net loss, the Company did not recognize the effect of the potential dilutive securities as their inclusion would be anti-dilutive. Potential dilutive shares of 233,202 and 225,781 for the three months ended June 30, 2023 and 2022, respectively, were excluded from diluted loss per share because the effect would be anti-dilutive. Potential dilutive shares of 256,514 and 213,235 for the six months ended June 30, 2023 and 2022, respectively, were excluded from diluted loss per share because the effect would be anti-dilutive. Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows: Three months ended Six months ended 2023 2022 2023 2022 Basic weighted-average Common Shares outstanding 27,451,623 27,268,938 27,400,490 27,233,808 Effect of dilutive shares — — — — Diluted weighted-average Common Shares outstanding 27,451,623 27,268,938 27,400,490 27,233,808 There were 425,612 and 780,793 performance-based right to receive Common Shares outstanding at June 30, 2023 and 2022, respectively. The right to receive Common Shares are included in the computation of diluted earnings per share based on the number of Common Shares that would be issuable if the end of the quarter were the end of the contingency period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Changes in accumulated other comprehensive (loss) income for the three months ended June 30, 2023 and 2022 were as follows: Foreign Unrealized Total Balance at April 1, 2023 $ (99,302) $ — $ (99,302) Other comprehensive income before reclassifications 2,992 328 3,320 Amounts reclassified from accumulated other comprehensive loss — (40) (40) Net other comprehensive income, net of tax 2,992 288 3,280 Balance at June 30, 2023 $ (96,310) $ 288 $ (96,022) Balance at April 1, 2022 $ (93,042) $ 1,227 $ (91,815) Other comprehensive (loss) income before reclassifications (12,870) 283 (12,587) Amounts reclassified from accumulated other comprehensive loss (2,842) (336) (3,178) Net other comprehensive loss, net of tax (15,712) (53) (15,765) Balance at June 30, 2022 $ (108,754) $ 1,174 $ (107,580) Changes in accumulated other comprehensive (loss) income for the six months ended June 30, 2023 and 2022 were as follows: Foreign Unrealized Total Balance at January 1, 2023 $ (103,374) $ 232 $ (103,142) Other comprehensive income before reclassifications 7,064 325 7,389 Amounts reclassified from accumulated other comprehensive loss — (269) (269) Net other comprehensive income, net of tax 7,064 56 7,120 Balance at June 30, 2023 $ (96,310) $ 288 $ (96,022) Balance at January 1, 2022 $ (97,203) $ 179 $ (97,024) Other comprehensive (loss) income before reclassifications (8,709) 1,409 (7,300) Amounts reclassified from accumulated other comprehensive loss (2,842) (414) (3,256) Net other comprehensive (loss) income, net of tax (11,551) 995 (10,556) Balance at June 30, 2022 $ (108,754) $ 1,174 $ (107,580) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are subject to various legal actions and claims incidental to our business, including those arising out of breach of contracts, product warranties, product liability, patent infringement, regulatory matters and employment-related matters. The Company establishes accruals for matters which it believes that losses are probable and can be reasonably estimated. Although it is not possible to predict with certainty the outcome of these matters, the Company is of the opinion that the ultimate resolution of these matters will not have a material adverse effect on its consolidated results of operations or financial position. As a result of environmental studies performed at the Company’s former facility located in Sarasota, Florida, the Company became aware of soil and groundwater contamination at the site. The Company engaged an environmental engineering consultant to assess the level of contamination and to develop a remediation and monitoring plan for the site. Soil remediation at the site was completed during the year ended December 31, 2010. A remedial action plan was approved by the Florida Department of Environmental Protection and groundwater remediation began in the fourth quarter of 2015. During the three months ended June 30, 2023 and 2022, the Company did not recognize any expense related to groundwater remediation. During the six months ended June 30, 2023 and 2022, the Company recognized expense of $125 and $0, respectively, related to groundwater remediation. At June 30, 2023 and December 31, 2022, the Company accrued $278 and $246, respectively, related to expected future remediation costs. At June 30, 2023 and December 31, 2022, $271 and $132, respectively, were recorded as a component of accrued expenses and other current liabilities in the condensed consolidated balance sheets while the remaining amounts as of June 30, 2023 and December 31, 2022 were recorded as a component of other long-term liabilities. Costs associated with the recorded liability will be incurred to complete the groundwater remediation and monitoring. The recorded liability is based on assumptions in the remedial action plan as well as estimates for future remediation activities. Although the Company sold the Sarasota facility and related property in December 2011, the liability to remediate the site contamination remains the responsibility of the Company. Due to the ongoing site remediation, the Company is currently required to maintain a $1,489 letter of credit for the benefit of the buyer. The Company’s Stoneridge Brazil subsidiary has civil, labor and other tax contingencies (excluding income tax) for which the likelihood of loss is deemed to be reasonably possible, but not probable, by the Company’s legal advisors in Brazil. As a result, no provision has been recorded with respect to these contingencies, which amounted to R$48,497 ($10,063) and R$47,820 ($9,165) at June 30, 2023 and December 31, 2022, respectively. An unfavorable outcome on these contingencies could result in significant cost to the Company and adversely affect its results of operations. On August 12, 2020, the Brazilian Administrative Counsel for Economic Defense (“CADE”) issued a ruling against Stoneridge Brazil for abuse of dominance and market foreclosure through its prior use of exclusivity provisions in agreements with its distributors. The CADE tribunal imposed a R$7,995 ($1,659) fine which is included in the reasonably possible contingencies noted above. The Company is challenging this ruling in Brazilian federal court to reverse this decision by the CADE tribunal. Long Term Supply Commitment In 2022, the Company entered into a long term supply agreement with a supplier for the purchase of certain electronic semiconductor components through December 31, 2026. Pursuant to the agreement, the Company paid capacity deposits of $1,000 in December 2022 and June 2023, respectively. The capacity deposits are recognized in prepaid and other current assets on our condensed consolidated balance sheet. This long term supply agreement requires the Company to purchase minimum annual volumes while requiring the supplier to sell these components at a fixed price. The Company purchased $2,662 and $119 of these components during the three months ended June 30, 2023 and 2022, respectively, and $3,327 and $188 during the six months ended June 30, 2023 and 2022, respectively. The Company is required to purchase $5,871, $7,828, $10,764 and $10,764 of components in each of the years 2023 through 2026, respectively. Product Warranty and Recall Amounts accrued for product warranty and recall claims are established based on the Company’s best estimate of the amounts necessary to settle existing and future claims on products sold as of the balance sheet dates. These accruals are based on several factors including past experience, production changes, industry developments and various other considerations. Our estimate is based on historical trends of units sold and claim payment amounts, combined with our current understanding of the status of existing claims, forecasts of the resolution of existing claims, expected future claims on products sold and commercial discussions with our customers. The key factors in our estimate are the warranty period and the customer source. The Company can provide no assurances that it will not experience material claims or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued. The current portion of the product warranty and recall reserve is included as a component of accrued expenses and other current liabilities on the condensed consolidated balance sheets. Product warranty and recall reserve included $5,589 and $4,437 of a long-term liability at June 30, 2023 and December 31, 2022, respectively, which is included as a component of other long-term liabilities on the condensed consolidated balance sheets. During the second quarter of 2023, the Company received a notification of arbitration for warranty claims related to past sales of PM sensor products, a product line we exited in 2019. The arbitration notification submitted by one of our customers asserts potential warranty related claims. Based on our review of the technical merits and specific claims submitted in the notification as well as prior discussions with the customer, we believe these claims are significantly overstated and while no assurances can be made as to the ultimate outcome of this matter or any other future claims, we do not currently believe a material loss is probable. The following provides a reconciliation of changes in product warranty and recall reserve liability: Six months ended June 30, 2023 2022 Product warranty and recall reserve at beginning of period $ 13,477 $ 9,846 Accruals for warranties established during period 7,636 5,951 Aggregate changes in pre-existing liabilities due to claim developments 327 — Settlements made during the period (3,784) (4,503) Foreign currency translation (196) (479) Product warranty and recall reserve at end of period $ 17,460 $ 10,815 |
Business Realignment and Restru
Business Realignment and Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business Realignment and Restructuring | Business Realignment and Restructuring On January 10, 2019, the Company committed to a restructuring plan that resulted in the closure of the Canton, Massachusetts facility (“Canton Facility”) on March 31, 2020 and the consolidation of manufacturing operations at that site into other Company locations (“Canton Restructuring”). The costs for the Canton Restructuring included employee severance and termination costs, contract terminations costs, professional fees and other related costs such as moving and set-up costs for equipment and costs to restore the engineering function previously located at the Canton facility. We do not expect to incur additional costs related to the Canton Restructuring. The settlement of liabilities associated with for the Canton Restructuring that relate to the Control Devices reportable segment include the following: Accrual as of 2022 Charge Utilization Accrual as of Cash Non-Cash Employee termination benefits $ 93 $ — $ (93) $ — $ — Total $ 93 $ — $ (93) $ — $ — In addition to specific restructuring activities, the Company regularly evaluates the performance of its businesses and cost structures, including personnel, and makes necessary changes thereto in order to optimize its results. The Company also evaluates the required skill sets of its personnel and periodically makes strategic changes. As a consequence of these actions, the Company incurs severance related costs that are referred to as business realignment charges. Realignment expense for the three months ended June 30, 2023 was primarily related to the centralization of the product line management and sales functions. Business realignment charges incurred by reportable segment were as follows: Three months ended Six months ended 2023 2022 2023 2022 Control Devices (A) $ 379 $ — $ 379 $ — Electronics (B) 1,347 — 1,656 — Stoneridge Brazil (C) — — — 34 Unallocated Corporate (D) 184 — 1,137 — Total business realignment charges $ 1,910 $ — $ 3,172 $ 34 _____________________________________ (A) Severance costs for the three and six months ended June 30, 2023 related to COGS and SG&A were $369 and $10, respectively. (B) Severance costs for the three months ended June 30, 2023 related to COGS and SG&A were $82 and $1,265, respectively. Severance costs for the six months ended June 30, 2023 related to COGS and SG&A were $257 and $1,399, respectively. (C) Severance costs for the six months ended June 30, 2022 related to SG&A were $34. (D) Employee separation related costs for the three and six months ended June 30, 2023 related to SG&A were $169 and $1,122, respectively. Employee separation related costs for the three and six months ended June 30, 2023 related to D&D were $15. Business realignment charges incurred, classified by statement of operations line item were as follows: Three months ended Six months ended 2023 2022 2023 2022 Cost of goods sold $ 451 $ — $ 626 $ — Selling, general and administrative 1,444 — 2,531 34 Design and development 15 — 15 — Total business realignment charges $ 1,910 $ — $ 3,172 $ 34 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim tax reporting, we estimate our annual effective tax rate and apply it to our year to date ordinary income. Tax jurisdictions with a projected or year to date loss for which a benefit cannot be realized are excluded. For the three months ended June 30, 2023, income tax expense of $1,487 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (98.8)% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives. For the three months ended June 30, 2022, income tax expense of $413 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (6.0)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions as well tax credits and incentives offset by foreign rates that differ from the U.S. rate, U.S. taxes on foreign earnings and non-deductible expenses. For the six months ended June 30, 2023, income tax expense of $779 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (8.1)% varies from the statutory rate primarily due to U.S. taxes on foreign earnings and non-deductible expenses offset by the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions and tax credits and incentives. For the six months ended June 30, 2022, income tax expense of $1,906 was attributable to the mix of earnings among tax jurisdictions as well as tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions. The effective tax rate of (14.5)% varies from the statutory rate primarily due to the impact of tax losses for which no benefit is recognized due to valuation allowances in certain jurisdictions as well as tax credits and incentives offset by U.S. taxes on foreign earnings. On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are also implementing similar legislation. The Company is continuing to evaluate the potential impact on future periods of the Pillar Two Framework. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company has three reportable segments, Control Devices, Electronics and Stoneridge Brazil, which also represent its operating segments. The Control Devices reportable segment produces actuators, sensors, switches and connectors. The Electronics reportable segment produces driver information systems, vision and safety systems, connectivity and compliance products and electronic control units. The Stoneridge Brazil reportable segment designs and manufactures vehicle tracking devices and monitoring services, vehicle security alarms and convenience accessories, in-vehicle audio and infotainment devices, driver information systems and telematics solutions. The accounting policies of the Company’s reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company’s 2022 Form 10-K . The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation. The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as accounting/finance, executive administration, human resources, information technology and legal. A summary of financial information by reportable segment is as follows: Three months ended Six months ended 2023 2022 2023 2022 Net Sales: Control Devices $ 92,120 $ 84,566 $ 178,062 $ 168,626 Inter-segment sales 970 451 1,704 1,381 Control Devices net sales 93,090 85,017 179,766 170,007 Electronics 159,786 123,021 300,913 247,974 Inter-segment sales 8,491 7,368 17,007 15,079 Electronics net sales 168,277 130,389 317,920 263,053 Stoneridge Brazil 14,908 13,349 29,164 25,394 Inter-segment sales — — — — Stoneridge Brazil net sales 14,908 13,349 29,164 25,394 Eliminations (9,461) (7,819) (18,711) (16,460) Total net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 Operating Income (Loss): Control Devices $ 5,074 $ 4,118 $ 7,161 $ 10,894 Electronics 7,444 (2,524) 8,844 (5,236) Stoneridge Brazil 899 970 2,242 1,462 Unallocated Corporate (A) (9,086) (8,492) (17,945) (16,032) Total operating income (loss) $ 4,331 $ (5,928) $ 302 $ (8,912) Depreciation and Amortization: Control Devices $ 3,099 $ 3,405 $ 6,273 $ 6,966 Electronics 3,503 3,530 6,967 7,123 Stoneridge Brazil 1,201 1,032 2,286 2,023 Unallocated Corporate 605 567 1,207 1,128 Total depreciation and amortization (B) $ 8,408 $ 8,534 $ 16,733 $ 17,240 Interest Expense (Income), net: Control Devices $ 65 $ 18 $ 83 $ 43 Electronics 511 228 996 301 Stoneridge Brazil (319) (533) (589) (691) Unallocated Corporate 2,863 1,504 5,376 3,350 Total interest expense, net $ 3,120 $ 1,217 $ 5,866 $ 3,003 Capital Expenditures: Control Devices $ 2,019 $ 1,916 $ 3,975 $ 5,761 Electronics 2,334 1,926 8,541 4,759 Stoneridge Brazil 782 1,258 1,418 1,927 Unallocated Corporate (C) 217 680 329 701 Total capital expenditures $ 5,352 $ 5,780 $ 14,263 $ 13,148 June 30, December 31, Total Assets: Control Devices $ 173,580 $ 174,535 Electronics 396,649 369,232 Stoneridge Brazil 67,173 60,861 Corporate (C) 418,852 419,469 Eliminations (370,757) (371,992) Total assets $ 685,497 $ 652,105 The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Six months ended 2023 2022 2023 2022 Net Sales: North America $ 135,590 $ 109,642 $ 259,313 $ 213,470 South America 14,908 13,349 29,164 25,394 Europe and Other 116,316 97,945 219,662 203,130 Total net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 June 30, December 31, Long-term Assets: North America $ 92,604 $ 92,149 South America 33,850 31,796 Europe and Other 120,460 118,609 Total long-term assets $ 246,914 $ 242,554 __________________________________________________________ (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments PST Eletrônica Ltda. The Company had a 74% controlling interest in Stoneridge Brazil from December 31, 2011 through May 15, 2017. On May 16, 2017, the Company acquired the remaining 26% noncontrolling interest in Stoneridge Brazil. As part of the acquisition agreement, the Company was required to pay additional earn-out consideration based on Stoneridge Brazil’s financial performance in 2021. The final earn-out consideration of $8,272 was paid on April 29, 2022. See Note 5 for the fair value and foreign currency adjustments of the earn-out consideration in prior periods. Other Investments In December 2018, the Company entered into an agreement to make a $10,000 investment in a fund (“Autotech Fund II”) managed by Autotech Ventures (“Autotech”), a venture capital firm focused on ground transportation technology which is accounted for under the equity method of accounting. The Company’s $10,000 investment in the Autotech Fund II will be contributed over the expected ten-year life of the fund. The Company has contributed $8,050 to the Autotech Fund II as of June 30, 2023. The Company did not contribute to, or receive distributions from, Autotech Fund II during the six months ended June 30, 2023. The Company contributed $450 to Autotech Fund II during the six months ended June 30, 2022. The Company has a 6.6% interest in Autotech Fund II. The Company recognized losses of $329 and $377 during the three months ended June 30, 2023 and 2022, respectively. The Company recognized losses of $500 and $458 during the six months ended June 30, 2023 and 2022, respectively. The Autotech Fund II investment recorded in investments and other long-term assets in the condensed consolidated balance sheets was $8,144 and $8,644 as of June 30, 2023 and December 31, 2022, respectively. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by Stoneridge, Inc. (the “Company”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished in the condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. The results of operations for the three months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2022 Form 10-K . |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to their 2023 presentation in the condensed consolidated financial statements. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The guidance in ASU 2020-04 provides temporary optional expedient and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”) (also known as the “reference rate reform”). The guidance allows companies to elect not to apply certain modification accounting requirements to contracts affected by the reference rate reform, if certain criteria are met. The guidance will also allow companies to elect various optional expedients, which would allow them to continue to apply hedge accounting for hedging relationships affected by the reference rate reform, if certain criteria are met. The new standard was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2023. In February 2022, we amended our credit facility to incorporate hardwired mechanics to permit a future replacement of LIBOR as the interest reference rate without lender consent. The Company is applying the guidance to impacted transactions during the transition period. The adoption of this standard does not have a material impact on the Company’s condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Segment and Geographical Location | The following tables disaggregate our revenue by reportable segment and geographical location (1) for the three months ended June 30, 2023 and 2022: Control Devices Electronics Stoneridge Brazil Consolidated Three months ended June 30, 2023 2022 2023 2022 2023 2022 2023 2022 Net Sales: North America $ 78,745 $ 71,908 $ 56,845 $ 37,734 $ — $ — $ 135,590 $ 109,642 South America — — — — 14,908 13,349 14,908 13,349 Europe — — 99,169 83,578 — — 99,169 83,578 Asia Pacific 13,375 12,658 3,772 1,709 — — 17,147 14,367 Total net sales $ 92,120 $ 84,566 $ 159,786 $ 123,021 $ 14,908 $ 13,349 $ 266,814 $ 220,936 The following tables disaggregate our revenue by reportable segment and geographical location (1) for the six months ended June 30, 2023 and 2022: Control Devices Electronics Stoneridge Brazil Consolidated Six months ended June 30, 2023 2022 2023 2022 2023 2022 2023 2022 Net Sales: North America $ 154,426 $ 143,398 $ 104,887 $ 70,072 $ — $ — $ 259,313 $ 213,470 South America — — — — 29,164 25,394 29,164 25,394 Europe — — 186,418 175,363 — — 186,418 175,363 Asia Pacific 23,636 25,228 9,608 2,539 — — 33,244 27,767 Total net sales $ 178,062 $ 168,626 $ 300,913 $ 247,974 $ 29,164 $ 25,394 $ 508,139 $ 441,994 ___________________________ (1) Company sales based on geographic location are where the sale originates not where the customer is located. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following: June 30, December 31, Raw materials $ 133,491 $ 121,983 Work-in-progress 10,337 7,812 Finished goods 31,477 22,785 Total inventories, net $ 175,305 $ 152,580 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Notional Amounts and Fair Values of Derivative Instruments in the Consolidated Balance | The notional amounts and fair values of derivative instruments in the condensed consolidated balance sheets were as follows: Notional amounts (A) Prepaid expenses June 30, December 31, June 30, December 31, Derivatives designated as hedging instruments: Cash flow hedges: Forward currency contracts $ 7,862 $ — $ 365 $ — Interest rate swap $ — $ 50,000 $ — $ 294 _____________________________ (A) Notional amounts represent the gross contract of the derivatives outstanding in U.S. dollars. |
Amounts Recorded for the Cash Flow Hedges in Other Comprehensive Income (Loss) in Shareholders' Equity and in Net Income | Gross amounts recorded for the cash flow and net investment hedges in other comprehensive income (loss) and in net loss for the three months ended June 30 were as follows: Gain recorded in other Gain (loss) reclassified from other comprehensive income (loss) into net loss (A) 2023 2022 2023 2022 Derivatives designated as cash flow hedges: Forward currency contracts $ 416 $ 72 $ 51 $ 506 Interest rate swap $ — $ 286 $ — $ (80) Derivatives designated as net investment hedges: Cross-currency swaps $ — $ 1,641 $ — $ 3,598 _____________________________ (A) Gains reclassified from other comprehensive income (loss) into net loss recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $13 and $3,697 for the three months ended June 30, 2023 and 2022, respectively. Gains reclassified from other comprehensive income (loss) into net loss recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $38 and $407 for the three months ended June 30, 2023 and 2022, respectively. Gains (losses) reclassified from other comprehensive income (loss) into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $0 and $(80) for the three months ended June 30, 2023 and 2022, respectively. Gross amounts recorded for the cash flow and net investment hedges in other comprehensive income (loss) and in net loss for the six months ended June 30 were as follows: Gain (loss) recorded in other Gain (loss) reclassified from other comprehensive income (loss) into net loss (A) 2023 2022 2023 2022 Derivatives designated as cash flow hedges: Forward currency contracts $ 416 $ 987 $ 51 $ 757 Interest rate swap $ (4) $ 796 $ 290 $ (233) Derivatives designated as net investment hedges: Cross-currency swaps $ — $ 2,328 $ — $ 3,598 (A) Gains reclassified from other comprehensive income (loss) into net loss recognized in selling, general and administrative expenses (“SG&A”) in the Company’s condensed consolidated statements of operations were $13 and $3,748 for the six months ended June 30, 2023 and 2022, respectively. Gains reclassified from other comprehensive income (loss) into net loss recognized in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations were $38 and $607 for the six months ended June 30, 2023 and 2022, respectively. Gains (losses) reclassified from other comprehensive income (loss) into net loss recognized in interest expense, net in the Company’s condensed consolidated statements of operations were $290 and $(233) for the six months ended June 30, 2023 and 2022, respectively. |
Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the three levels of the fair value hierarchy based on the reliability of inputs used. June 30, December 31, Fair values estimated using Fair Level 1 Level 2 Level 3 Fair Financial assets carried at fair value: Forward currency contracts $ 365 $ — $ 365 $ — $ — Interest rate swap — — — — 294 Total financial assets carried at fair value $ 365 $ — $ 365 $ — $ 294 |
Summary of the Change in Fair Value of the Level 3 Financial Liabilities Related to Contingent Consideration | The following table sets forth a summary of the change in fair value of the Company’s Level 3 financial liabilities related to earn-out consideration that are measured at fair value on a recurring basis. Stoneridge Brazil 2022 Balance at January 1 $ 7,351 Foreign currency adjustments 921 Earn-out consideration cash payment (8,272) Balance at June 30 $ — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following at June 30, 2023 and December 31, 2022: June 30, December 31, Interest rates at June 30, 2023 Maturity Debt Revolving Credit Facility $ 171,597 $ 167,802 8.00 % June 2024 Suzhou short-term credit line — 1,450 Total debt 171,597 169,252 Less: current portion (171,597) (1,450) Total long-term debt, net $ — $ 167,802 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted-Average Number of Shares | Weighted-average Common Shares outstanding used in calculating basic and diluted earnings per share were as follows: Three months ended Six months ended 2023 2022 2023 2022 Basic weighted-average Common Shares outstanding 27,451,623 27,268,938 27,400,490 27,233,808 Effect of dilutive shares — — — — Diluted weighted-average Common Shares outstanding 27,451,623 27,268,938 27,400,490 27,233,808 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income by Component | Changes in accumulated other comprehensive (loss) income for the three months ended June 30, 2023 and 2022 were as follows: Foreign Unrealized Total Balance at April 1, 2023 $ (99,302) $ — $ (99,302) Other comprehensive income before reclassifications 2,992 328 3,320 Amounts reclassified from accumulated other comprehensive loss — (40) (40) Net other comprehensive income, net of tax 2,992 288 3,280 Balance at June 30, 2023 $ (96,310) $ 288 $ (96,022) Balance at April 1, 2022 $ (93,042) $ 1,227 $ (91,815) Other comprehensive (loss) income before reclassifications (12,870) 283 (12,587) Amounts reclassified from accumulated other comprehensive loss (2,842) (336) (3,178) Net other comprehensive loss, net of tax (15,712) (53) (15,765) Balance at June 30, 2022 $ (108,754) $ 1,174 $ (107,580) Changes in accumulated other comprehensive (loss) income for the six months ended June 30, 2023 and 2022 were as follows: Foreign Unrealized Total Balance at January 1, 2023 $ (103,374) $ 232 $ (103,142) Other comprehensive income before reclassifications 7,064 325 7,389 Amounts reclassified from accumulated other comprehensive loss — (269) (269) Net other comprehensive income, net of tax 7,064 56 7,120 Balance at June 30, 2023 $ (96,310) $ 288 $ (96,022) Balance at January 1, 2022 $ (97,203) $ 179 $ (97,024) Other comprehensive (loss) income before reclassifications (8,709) 1,409 (7,300) Amounts reclassified from accumulated other comprehensive loss (2,842) (414) (3,256) Net other comprehensive (loss) income, net of tax (11,551) 995 (10,556) Balance at June 30, 2022 $ (108,754) $ 1,174 $ (107,580) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty and Recall Liability | The following provides a reconciliation of changes in product warranty and recall reserve liability: Six months ended June 30, 2023 2022 Product warranty and recall reserve at beginning of period $ 13,477 $ 9,846 Accruals for warranties established during period 7,636 5,951 Aggregate changes in pre-existing liabilities due to claim developments 327 — Settlements made during the period (3,784) (4,503) Foreign currency translation (196) (479) Product warranty and recall reserve at end of period $ 17,460 $ 10,815 |
Business Realignment and Rest_2
Business Realignment and Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The settlement of liabilities associated with for the Canton Restructuring that relate to the Control Devices reportable segment include the following: Accrual as of 2022 Charge Utilization Accrual as of Cash Non-Cash Employee termination benefits $ 93 $ — $ (93) $ — $ — Total $ 93 $ — $ (93) $ — $ — Business realignment charges incurred by reportable segment were as follows: Three months ended Six months ended 2023 2022 2023 2022 Control Devices (A) $ 379 $ — $ 379 $ — Electronics (B) 1,347 — 1,656 — Stoneridge Brazil (C) — — — 34 Unallocated Corporate (D) 184 — 1,137 — Total business realignment charges $ 1,910 $ — $ 3,172 $ 34 _____________________________________ (A) Severance costs for the three and six months ended June 30, 2023 related to COGS and SG&A were $369 and $10, respectively. (B) Severance costs for the three months ended June 30, 2023 related to COGS and SG&A were $82 and $1,265, respectively. Severance costs for the six months ended June 30, 2023 related to COGS and SG&A were $257 and $1,399, respectively. (C) Severance costs for the six months ended June 30, 2022 related to SG&A were $34. (D) Employee separation related costs for the three and six months ended June 30, 2023 related to SG&A were $169 and $1,122, respectively. Employee separation related costs for the three and six months ended June 30, 2023 related to D&D were $15. |
Schedule of Business Realignment Charges Classified by Statement of Operations | Business realignment charges incurred, classified by statement of operations line item were as follows: Three months ended Six months ended 2023 2022 2023 2022 Cost of goods sold $ 451 $ — $ 626 $ — Selling, general and administrative 1,444 — 2,531 34 Design and development 15 — 15 — Total business realignment charges $ 1,910 $ — $ 3,172 $ 34 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | A summary of financial information by reportable segment is as follows: Three months ended Six months ended 2023 2022 2023 2022 Net Sales: Control Devices $ 92,120 $ 84,566 $ 178,062 $ 168,626 Inter-segment sales 970 451 1,704 1,381 Control Devices net sales 93,090 85,017 179,766 170,007 Electronics 159,786 123,021 300,913 247,974 Inter-segment sales 8,491 7,368 17,007 15,079 Electronics net sales 168,277 130,389 317,920 263,053 Stoneridge Brazil 14,908 13,349 29,164 25,394 Inter-segment sales — — — — Stoneridge Brazil net sales 14,908 13,349 29,164 25,394 Eliminations (9,461) (7,819) (18,711) (16,460) Total net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 Operating Income (Loss): Control Devices $ 5,074 $ 4,118 $ 7,161 $ 10,894 Electronics 7,444 (2,524) 8,844 (5,236) Stoneridge Brazil 899 970 2,242 1,462 Unallocated Corporate (A) (9,086) (8,492) (17,945) (16,032) Total operating income (loss) $ 4,331 $ (5,928) $ 302 $ (8,912) Depreciation and Amortization: Control Devices $ 3,099 $ 3,405 $ 6,273 $ 6,966 Electronics 3,503 3,530 6,967 7,123 Stoneridge Brazil 1,201 1,032 2,286 2,023 Unallocated Corporate 605 567 1,207 1,128 Total depreciation and amortization (B) $ 8,408 $ 8,534 $ 16,733 $ 17,240 Interest Expense (Income), net: Control Devices $ 65 $ 18 $ 83 $ 43 Electronics 511 228 996 301 Stoneridge Brazil (319) (533) (589) (691) Unallocated Corporate 2,863 1,504 5,376 3,350 Total interest expense, net $ 3,120 $ 1,217 $ 5,866 $ 3,003 Capital Expenditures: Control Devices $ 2,019 $ 1,916 $ 3,975 $ 5,761 Electronics 2,334 1,926 8,541 4,759 Stoneridge Brazil 782 1,258 1,418 1,927 Unallocated Corporate (C) 217 680 329 701 Total capital expenditures $ 5,352 $ 5,780 $ 14,263 $ 13,148 June 30, December 31, Total Assets: Control Devices $ 173,580 $ 174,535 Electronics 396,649 369,232 Stoneridge Brazil 67,173 60,861 Corporate (C) 418,852 419,469 Eliminations (370,757) (371,992) Total assets $ 685,497 $ 652,105 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Six months ended 2023 2022 2023 2022 Net Sales: North America $ 135,590 $ 109,642 $ 259,313 $ 213,470 South America 14,908 13,349 29,164 25,394 Europe and Other 116,316 97,945 219,662 203,130 Total net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 June 30, December 31, Long-term Assets: North America $ 92,604 $ 92,149 South America 33,850 31,796 Europe and Other 120,460 118,609 Total long-term assets $ 246,914 $ 242,554 __________________________________________________________ (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, leased assets, information technology assets, equity investments and investments in subsidiaries. |
Revenue - Revenue by Segment an
Revenue - Revenue by Segment and Geographical Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 266,814 | $ 220,936 | $ 508,139 | $ 441,994 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 135,590 | 109,642 | 259,313 | 213,470 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 14,908 | 13,349 | 29,164 | 25,394 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 99,169 | 83,578 | 186,418 | 175,363 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 17,147 | 14,367 | 33,244 | 27,767 |
Control Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 92,120 | 84,566 | 178,062 | 168,626 |
Control Devices | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 78,745 | 71,908 | 154,426 | 143,398 |
Control Devices | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Control Devices | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Control Devices | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 13,375 | 12,658 | 23,636 | 25,228 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 159,786 | 123,021 | 300,913 | 247,974 |
Electronics | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 56,845 | 37,734 | 104,887 | 70,072 |
Electronics | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Electronics | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 99,169 | 83,578 | 186,418 | 175,363 |
Electronics | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 3,772 | 1,709 | 9,608 | 2,539 |
Stoneridge Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 14,908 | 13,349 | 29,164 | 25,394 |
Stoneridge Brazil | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Stoneridge Brazil | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 14,908 | 13,349 | 29,164 | 25,394 |
Stoneridge Brazil | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 0 | 0 | 0 | 0 |
Stoneridge Brazil | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Contract liabilities | 0 | 0 |
Capitalized contract acquisition costs | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 133,491 | $ 121,983 |
Work-in-progress | 10,337 | 7,812 |
Finished goods | 31,477 | 22,785 |
Total inventories, net | $ 175,305 | $ 152,580 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory amount, FIFO | $ 161,038 | $ 139,996 |
Inventory amount, weighted average cost | $ 14,267 | $ 12,584 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Sep. 30, 2022 $ / shares | May 05, 2022 contract | Dec. 31, 2021 USD ($) contract | Feb. 18, 2020 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Proceeds from settlement of net investment hedge | $ 0 | $ 3,820 | ||||||||
Gain on settlement of net investment hedge | 0 | 3,716 | ||||||||
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |||||||||
Total interest expense, net | $ 3,120 | $ 1,217 | 5,866 | 3,003 | ||||||
Earn-out consideration, operating and financing activities | $ 8,272 | |||||||||
Earn-out consideration cash payment within financing activities | 6,276 | 0 | $ 6,276 | |||||||
Transfers in or out of Level 3 | 0 | |||||||||
Non investment hedges | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Number of hedge contracts | contract | 2 | 2 | ||||||||
Proceeds from settlement of net investment hedge | 3,820 | |||||||||
Gain on settlement of net investment hedge | $ 3,716 | |||||||||
Non investment hedges | Revision of Prior Period, Reclassification, Adjustment | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Gain on settlement of net investment hedge | $ 3,716 | |||||||||
Income (loss) per share (in dollars per share) | $ / shares | $ (0.10) | $ (0.10) | $ (0.10) | $ (0.10) | ||||||
Non investment hedges | Net Investment Hedge Due 2026 | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | $ 25,000 | |||||||||
Non investment hedges | Net Investment Hedge Due 2028 | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | $ 25,000 | |||||||||
Cash flow hedges | Mexican Peso-Denominated Foreign Currency Forward Contracts | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | 7,862 | $ 0 | 7,862 | |||||||
Cash flow hedges | Interest rate swap | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | $ 50,000 | |||||||||
Total interest expense, net | $ 80 | 290 | $ 233 | |||||||
Designated as Hedging Instrument | Cash flow hedges | Forward currency contracts | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | 7,862 | 0 | 7,862 | |||||||
Designated as Hedging Instrument | Cash flow hedges | Interest rate swap | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Notional amounts | $ 0 | $ 50,000 | $ 0 | |||||||
Stoneridge Brazil | ||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||||||
Payment of earn-out consideration paid within operating activities | $ 1,996 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - Cash flow hedges - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Feb. 18, 2020 |
Forward currency contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 7,862 | $ 0 | |
Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | $ 50,000 | ||
Interest rate swap | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amounts | 0 | 50,000 | |
Prepaid expenses and other current assets | Forward currency contracts | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Financial assets carried at fair value | 365 | 0 | |
Prepaid expenses and other current assets | Interest rate swap | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Financial assets carried at fair value | $ 0 | $ 294 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flow hedges | Designated as Hedging Instrument | Forward currency contracts | ||||
Derivatives designated as cash flow hedges: | ||||
Gain recorded in other comprehensive income (loss) | $ 416 | $ 72 | $ 416 | $ 987 |
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | 51 | 506 | 51 | 757 |
Cash flow hedges | Designated as Hedging Instrument | Interest rate swap | ||||
Derivatives designated as cash flow hedges: | ||||
Gain recorded in other comprehensive income (loss) | 0 | 286 | (4) | 796 |
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | 0 | (80) | 290 | (233) |
Cash flow hedges | Selling, general and administrative | Designated as Hedging Instrument | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | 13 | 3,697 | 13 | 3,748 |
Cash flow hedges | Cost of goods sold | Designated as Hedging Instrument | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | 38 | 407 | 38 | 607 |
Cash flow hedges | Interest Expense | Designated as Hedging Instrument | ||||
Derivatives designated as cash flow hedges: | ||||
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | 0 | (80) | 290 | (233) |
Non investment hedges | Cross-currency swaps | ||||
Derivatives designated as cash flow hedges: | ||||
Gain recorded in other comprehensive income (loss) | 0 | 1,641 | 0 | 2,328 |
Gain (loss) reclassified from other comprehensive (loss) income into net (loss) income | $ 0 | $ 3,598 | $ 0 | $ 3,598 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair value - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets carried at fair value: | ||
Forward currency contracts | $ 365 | $ 0 |
Interest rate swap | 0 | 294 |
Total financial assets carried at fair value | 365 | $ 294 |
Level 1 inputs | ||
Financial assets carried at fair value: | ||
Forward currency contracts | 0 | |
Interest rate swap | 0 | |
Total financial assets carried at fair value | 0 | |
Level 2 inputs | ||
Financial assets carried at fair value: | ||
Forward currency contracts | 365 | |
Interest rate swap | 0 | |
Total financial assets carried at fair value | 365 | |
Level 3 inputs | ||
Financial assets carried at fair value: | ||
Forward currency contracts | 0 | |
Interest rate swap | 0 | |
Total financial assets carried at fair value | $ 0 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Summary of the change in fair value of the Level 3 financial liabilities related to earn-out consideration (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Apr. 30, 2022 | Jun. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Earn-out consideration cash payment | $ (8,272) | |
Stoneridge Brazil | Earnout Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at January 1 | $ 7,351 | |
Foreign currency adjustments | 921 | |
Balance at June 30 | 0 | |
PST Eletronica Ltda | Earnout Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Earn-out consideration cash payment | $ (8,272) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,202 | $ 1,736 | $ 1,271 | $ 2,834 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt | ||
Total debt | $ 171,597 | $ 169,252 |
Less: current portion | (171,597) | (1,450) |
Total long-term debt, net | 0 | 167,802 |
Debt | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 171,597 | 167,802 |
Debt | ||
Outstanding credit lines interest rate | 8% | |
Maturity | June 2024 | |
Suzhou short-term credit line | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | $ 1,450 |
Debt | ||
Maturity |
Debt - Narrative (Details)
Debt - Narrative (Details) ¥ in Thousands, kr in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 SEK (kr) | Jun. 30, 2023 CNY (¥) | Mar. 01, 2023 USD ($) | Feb. 28, 2023 | Dec. 31, 2022 SEK (kr) | Feb. 27, 2022 USD ($) | Jun. 05, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents | $ 34,705 | $ 54,798 | ||||||||
Sweden short-term credit line | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility | 0 | 0 | ||||||||
Bridge Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 40,000 | |||||||||
Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000 | $ 400,000 | ||||||||
Increase in maximum borrowing capacity of credit facility | 150 | |||||||||
Debt instrument covenant default of other debt maximum amount | 30,000 | |||||||||
Debt instrument covenant uninsured asset losses maximum amount | 30,000 | |||||||||
Revolving credit facility | 171,597 | 167,802 | ||||||||
Suzhou short-term credit line | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 2,758 | 2,900 | ¥ 20,000 | |||||||
Revolving credit facility | $ 0 | 1,450 | ||||||||
Outstanding credit lines weighted-average interest rate | 3.70% | 3.70% | 3.70% | |||||||
Bank Acceptance Draft Credit Line | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility | $ 3,905 | 1,998 | ||||||||
Credit facility, borrowing capacity | 8,274 | 8,699 | ¥ 60,000 | |||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding letters of credit | 1,626 | 1,626 | ||||||||
Electronics | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 1,856 | $ 1,922 | kr 20,000 | kr 20,000 | ||||||
Line of credit | $ 15,948 | kr 171,891 | ||||||||
Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum interest coverage ratio | 350% | 3.50% | ||||||||
Amendment Three | Quarter Ended March 31, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum interest coverage ratio | 2.50% | |||||||||
Amendment Three | Quarter Ended June 30, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum interest coverage ratio | 2.25% | |||||||||
Amendment Three | Quarters Ended September 30, 2022 and December 31, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum interest coverage ratio | 3% | 3% | 3% | 3% | 3% | |||||
Amendment Three | Bridge Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000 | |||||||||
Amendment Three | Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | $ 300,000 | ||||||||
Capitalized deferred financing costs | 484 | |||||||||
Maximum leverage ratio | 4% | |||||||||
Percent threshold of domestic cash | 100% | |||||||||
Percent threshold of foreign cash | 65% | |||||||||
Maximum net leverage ratio | 3.50% | |||||||||
Write off of deferred financing costs | $ 365 | |||||||||
Amendment Three | Debt | Debt Instrument, Redemption, Period Four | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum leverage ratio | 4.75% | |||||||||
Amendment Three | Debt | Debt Instrument, Redemption, Period Five | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum leverage ratio | 3.50% | |||||||||
Amendment Three | Debt | London Interbank Offered Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Amendment Three | Debt | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents | $ 70,000 | |||||||||
Amendment Three | Specified Hedge Borrowings | Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0% | |||||||||
Amendment Four | Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000 | |||||||||
Capitalized deferred financing costs | $ 332 | |||||||||
Amendment Number Four | Quarter Ended March 31, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum interest coverage ratio | 300% | |||||||||
Amendment Number Four | Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percent threshold of domestic cash | 100% | |||||||||
Percent threshold of foreign cash | 65% | |||||||||
Maximum net leverage ratio | 350% | |||||||||
Amendment Number Four | Debt | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum leverage ratio | 475% | |||||||||
Amendment Number Four | Debt | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum leverage ratio | 425% | |||||||||
Amendment Number Four | Debt | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents | $ 70,000 |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 233,202 | 225,781 | 256,514 | 213,235 |
Performance Based Right to Receive Common Shares | ||||
Operating Loss Carryforwards [Line Items] | ||||
Common shares, non-vested (in shares) | 425,612 | 780,793 | 425,612 | 780,793 |
Loss Per Share - Weighted Avera
Loss Per Share - Weighted Average Shares Outstanding Used in Calculating Basic and Diluted Net Income Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average Common Shares outstanding (in shares) | 27,451,623 | 27,268,938 | 27,400,490 | 27,233,808 |
Effect of dilutive shares (in shares) | 0 | 0 | 0 | |
Diluted weighted-average Common Shares outstanding (in shares) | 27,451,623 | 27,268,938 | 27,400,490 | 27,233,808 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income before reclassifications | $ 3,320 | $ (12,587) | $ 7,389 | $ (7,300) |
Amounts reclassified from accumulated other comprehensive loss | (40) | (3,178) | (269) | (3,256) |
Other comprehensive income (loss), net of tax | 3,280 | (15,765) | 7,120 | (10,556) |
Accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (99,302) | (91,815) | (103,142) | (97,024) |
Ending balance | (96,022) | (107,580) | (96,022) | (107,580) |
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (99,302) | (93,042) | (103,374) | (97,203) |
Other comprehensive income before reclassifications | 2,992 | (12,870) | 7,064 | (8,709) |
Amounts reclassified from accumulated other comprehensive loss | 0 | (2,842) | 0 | (2,842) |
Other comprehensive income (loss), net of tax | 2,992 | (15,712) | 7,064 | (11,551) |
Ending balance | (96,310) | (108,754) | (96,310) | (108,754) |
Unrealized gain (loss) on derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 1,227 | 232 | 179 |
Other comprehensive income before reclassifications | 328 | 283 | 325 | 1,409 |
Amounts reclassified from accumulated other comprehensive loss | (40) | (336) | (269) | (414) |
Other comprehensive income (loss), net of tax | 288 | (53) | 56 | 995 |
Ending balance | $ 288 | $ 1,174 | $ 288 | $ 1,174 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) R$ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 12, 2020 USD ($) | Aug. 12, 2020 BRL (R$) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2023 BRL (R$) | Dec. 31, 2022 BRL (R$) | |
Short-term Debt [Line Items] | |||||||||
Groundwater remediation expense | $ 0 | $ 0 | $ 125 | $ 0 | |||||
Environmental remediation accrued undiscounted liability | 278 | 278 | $ 246 | ||||||
Paid capacity deposits | 1,000 | ||||||||
Components to be paid in 2023 | 5,871 | ||||||||
Components to be paid in 2024 | 7,828 | ||||||||
Components to be paid in 2025 | 10,764 | ||||||||
Components to be paid in 2026 | 10,764 | ||||||||
Product warranty and recall accrual | 5,589 | 5,589 | 4,437 | ||||||
Long Term Supply Agreement | |||||||||
Short-term Debt [Line Items] | |||||||||
Components purchased | 2,662 | $ 119 | 3,327 | $ 188 | |||||
Accrued expenses and other current liabilities | |||||||||
Short-term Debt [Line Items] | |||||||||
Environmental remediation accrued undiscounted liability | 271 | 271 | 132 | ||||||
Letter of Credit | |||||||||
Short-term Debt [Line Items] | |||||||||
Line of credit | 1,489 | 1,489 | |||||||
PST Eletronica Ltda | Civil, labor and other tax contingencies | |||||||||
Short-term Debt [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $ 10,063 | $ 10,063 | $ 9,165 | R$ 48497 | R$ 47820 | ||||
PST Eletronica Ltda | Fine | |||||||||
Short-term Debt [Line Items] | |||||||||
Litigation amount | $ 1,659 | R$ 7995 |
Commitments and Contingencies_2
Commitments and Contingencies - Reconciliation of Changes in Product Warranty and Recall Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Product warranty and recall reserve at beginning of period | $ 13,477 | $ 9,846 |
Accruals for warranties established during period | 7,636 | 5,951 |
Aggregate changes in pre-existing liabilities due to claim developments | 327 | 0 |
Settlements made during the period | (3,784) | (4,503) |
Foreign currency translation | (196) | (479) |
Product warranty and recall reserve at end of period | $ 17,460 | $ 10,815 |
Business Realignment and Rest_3
Business Realignment and Restructuring - Schedule of Restructuring and Related Costs (Details) - Control Devices - Canton Facility Restructuring Plan $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 93 |
Charge to expense | 0 |
Cash payments | (93) |
Utilization, Non-Cash | 0 |
Ending balance | 0 |
Employee termination benefits | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 93 |
Charge to expense | 0 |
Cash payments | (93) |
Utilization, Non-Cash | 0 |
Ending balance | $ 0 |
Business Realignment and Rest_4
Business Realignment and Restructuring - Realignment Charges Classified by Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | $ 1,910 | $ 0 | $ 3,172 | $ 34 |
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 451 | 0 | 626 | 0 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 1,444 | 0 | 2,531 | 34 |
Design and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 15 | 0 | 15 | 0 |
Control Devices | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 379 | 0 | 379 | 0 |
Control Devices | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 369 | 369 | ||
Control Devices | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 10 | 10 | ||
Electronics | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 1,347 | 0 | 1,656 | 0 |
Electronics | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 82 | 257 | ||
Electronics | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 1,265 | 1,399 | 34 | |
Stoneridge Brazil | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 0 | 0 | 0 | 34 |
Corporate Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total business realignment charges | 184 | $ 0 | 1,137 | $ 0 |
Corporate Segment | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 169 | 1,122 | ||
Corporate Segment | Design and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 15 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense on operations | $ 1,487 | $ 413 | $ 779 | $ 1,906 |
Effective income tax rate | (98.80%) | (6.00%) | (8.10%) | (14.50%) |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Net Sales: | |||||
Net sales | $ 266,814 | $ 220,936 | $ 508,139 | $ 441,994 | |
Operating Income (Loss): | |||||
Total operating income (loss) | 4,331 | (5,928) | 302 | (8,912) | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 8,408 | 8,534 | 16,733 | 17,240 | |
Interest Expense (Income), net: | |||||
Total interest expense, net | 3,120 | 1,217 | 5,866 | 3,003 | |
Total interest expense, net | 3,120 | 1,217 | 5,866 | 3,003 | |
Capital Expenditures: | |||||
Total capital expenditures | 5,352 | 5,780 | 14,263 | 13,148 | |
Total Assets: | |||||
Total assets | 685,497 | 685,497 | $ 652,105 | ||
Intersegment Eliminations | |||||
Net Sales: | |||||
Net sales | (9,461) | (7,819) | (18,711) | (16,460) | |
Total Assets: | |||||
Total assets | (370,757) | (370,757) | (371,992) | ||
Control Devices | |||||
Net Sales: | |||||
Net sales | 92,120 | 84,566 | 178,062 | 168,626 | |
Operating Income (Loss): | |||||
Total operating income (loss) | 5,074 | 4,118 | 7,161 | 10,894 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 3,099 | 3,405 | 6,273 | 6,966 | |
Interest Expense (Income), net: | |||||
Total interest expense, net | 65 | 18 | 83 | 43 | |
Capital Expenditures: | |||||
Total capital expenditures | 2,019 | 1,916 | 3,975 | 5,761 | |
Total Assets: | |||||
Total assets | 173,580 | 173,580 | 174,535 | ||
Control Devices | Segment Reconciling Items | |||||
Net Sales: | |||||
Net sales | 970 | 451 | 1,704 | 1,381 | |
Control Devices | Operating Segments | |||||
Net Sales: | |||||
Net sales | 93,090 | 85,017 | 179,766 | 170,007 | |
Electronics | |||||
Net Sales: | |||||
Net sales | 159,786 | 123,021 | 300,913 | 247,974 | |
Operating Income (Loss): | |||||
Total operating income (loss) | 7,444 | (2,524) | 8,844 | (5,236) | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 3,503 | 3,530 | 6,967 | 7,123 | |
Interest Expense (Income), net: | |||||
Total interest expense, net | 511 | 228 | 996 | 301 | |
Capital Expenditures: | |||||
Total capital expenditures | 2,334 | 1,926 | 8,541 | 4,759 | |
Total Assets: | |||||
Total assets | 396,649 | 396,649 | 369,232 | ||
Electronics | Segment Reconciling Items | |||||
Net Sales: | |||||
Net sales | 8,491 | 7,368 | 17,007 | 15,079 | |
Electronics | Operating Segments | |||||
Net Sales: | |||||
Net sales | 168,277 | 130,389 | 317,920 | 263,053 | |
Stoneridge Brazil | |||||
Net Sales: | |||||
Net sales | 14,908 | 13,349 | 29,164 | 25,394 | |
Operating Income (Loss): | |||||
Total operating income (loss) | 899 | 970 | 2,242 | 1,462 | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 1,201 | 1,032 | 2,286 | 2,023 | |
Interest Expense (Income), net: | |||||
Total interest expense, net | (319) | (533) | (589) | (691) | |
Capital Expenditures: | |||||
Total capital expenditures | 782 | 1,258 | 1,418 | 1,927 | |
Total Assets: | |||||
Total assets | 67,173 | 67,173 | 60,861 | ||
Stoneridge Brazil | Segment Reconciling Items | |||||
Net Sales: | |||||
Net sales | 0 | 0 | 0 | 0 | |
Stoneridge Brazil | Operating Segments | |||||
Net Sales: | |||||
Net sales | 14,908 | 13,349 | 29,164 | 25,394 | |
Corporate Segment | |||||
Operating Income (Loss): | |||||
Total operating income (loss) | (9,086) | (8,492) | (17,945) | (16,032) | |
Depreciation and Amortization: | |||||
Total depreciation and amortization | 605 | 567 | 1,207 | 1,128 | |
Interest Expense (Income), net: | |||||
Total interest expense, net | 2,863 | 1,504 | 5,376 | 3,350 | |
Capital Expenditures: | |||||
Total capital expenditures | 217 | $ 680 | 329 | $ 701 | |
Total Assets: | |||||
Total assets | $ 418,852 | $ 418,852 | $ 419,469 |
Segment Reporting (Schedule o_2
Segment Reporting (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 266,814 | $ 220,936 | $ 508,139 | $ 441,994 | |
Long-term assets: | |||||
Total long-term assets | 246,914 | 246,914 | $ 242,554 | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 135,590 | 109,642 | 259,313 | 213,470 | |
Long-term assets: | |||||
Total long-term assets | 92,604 | 92,604 | 92,149 | ||
South America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 14,908 | 13,349 | 29,164 | 25,394 | |
Long-term assets: | |||||
Total long-term assets | 33,850 | 33,850 | 31,796 | ||
Europe and Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 116,316 | $ 97,945 | 219,662 | $ 203,130 | |
Long-term assets: | |||||
Total long-term assets | $ 120,460 | $ 120,460 | $ 118,609 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 55 Months Ended | 64 Months Ended | ||||||
Apr. 29, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | May 15, 2017 | Dec. 31, 2022 | Dec. 31, 2018 | May 16, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Fair value and other adjustments | $ (329) | $ (377) | $ (500) | $ (458) | ||||||
PST Eletronica Ltda | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Percentage ownership in consolidated subsidiary | 74% | |||||||||
Percentage of additional noncontrolling interest acquired | 26% | |||||||||
Fair value of earn-out liability | $ 8,272 | |||||||||
Autotech Ventures | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Expected life of fund | 10 years | |||||||||
Autotech Ventures | Venture Capital Funds | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Investment commitment | $ 10,000 | $ 10,000 | $ 10,000 | $ 10,000 | ||||||
Contribution | $ 450 | $ 8,050 | ||||||||
Ownership percentage | 6.60% | 6.60% | 6.60% | |||||||
Investment | $ 8,144 | $ 8,144 | $ 8,144 | $ 8,644 |