Stoneridge Inc. (NYSE:SRI) Q4 2018 Earnings Conference Call - Final Transcript

Feb 28, 2019 • 09:00 am ET

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Stoneridge Inc. (NYSE:SRI) Q4 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to (inaudible) Stoneridge Fourth Quarter 2018 Call. At this time all participants are on a listen-only mode. Later we'll conduct the question-and-answer session and instructions will follow at that time. (Operator Instructions) I would now like to introduce your host for today's conference Matt Horvath, Director of Investor Relations. Sir, you may begin.

Executive
Matthew R. Horvath

Thanks, Justin. Good morning everyone and thank you for joining us to discuss our fourth quarter and full year results. The release and accompanying presentation was filed with the SEC yesterday evening and is posted on our website at www.stoneridge.com in the Investors section under Webcasts & Presentations. Joining me on today's call are Jon DeGaynor, our President and Chief Executive Officer and Bob Krakowiak, our Chief Financial Officer.

Before we begin, I need to inform you that certain statements today may be forward-looking statements. Forward-looking statements include statements that are not historical in nature and include information concerning our future results or plans. Although we believe that such statements are based upon reasonable assumptions, you should understand that these statements are subject to risks and uncertainties and actual results may differ materially. Additional information about such factors and uncertainties that could cause actual results to differ may be found in our 10-K, which has been filed with the SEC under the heading Forward-Looking Statements.

During today's call, we will also be referring to certain non-GAAP financial measures. Please see the appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. After Jon and Bob had finished their formal remarks, we will then open up the call to questions. I would ask you that you keep your question to a single follow-up.

With that I will turn the call over to Jon.

Executive
Jonathan B. DeGaynor

Thanks, Matt, and good morning everyone. Let me begin on Page 3. In 2018, we continued our transformation of the Company while delivering strong financial performance. Our 2018 sales of $866 million resulted in an adjusted gross margin of 29.7%, translating to an adjusted operating margin of 8.2%. Adjusted EPS for the year was $1.99. We also had our fifth consecutive year of business awards in excess of $200 million of peak annual revenue. As a result of our success with our customers our awarded business backlog grew to $3.4 billion or 5.2 times our 2018 OEM sales.

Some of our largest awards during the year included our first OEM MirrorEye award, our global OEM Telematics award, the extension of our largest driver information systems program and a key strategic award with a Chinese OEM to build on our global actuation capabilities.

In addition to our first MirrorEye award, we continued to work with our fleet partners on trial programs throughout the year eclipsing 2.2 million miles driven with the MirrorEye systems. Additionally, the approval of our FMCSA exemption late in Q4 means that MirrorEye is the only product in North America that allows for the renewable of traditional mirrors on commercial vehicles.