Stoneridge Inc. (NYSE:SRI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 09:00 am ET

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Stoneridge Inc. (NYSE:SRI) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to Stoneridge Second Quarter 2019 Conference Call. [Operator Instructions]. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

I would now like to turn the conference over to your host, Mr. Matt Horvath, Director of Investor Relations.

Executive
Matt Horvath

Thanks, Crystal. Good morning everyone and thank you for joining us to discuss our second quarter 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 and 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-Q, which has been filed with the Securities Exchange Commission 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 John and Bob have finished their formal remarks, we will then open up the call for questions. I would ask that you keep your question to a single follow-up.

With that, I will turn the call over to John.

Executive
Jonathan B. DeGaynor

Thanks Matt, and good morning everyone. Let me begin on Page 3. In the second quarter, we continue to position the company for long-term success while delivering strong financial performance. Our second quarter adjusted sales of $218 million resulted in an adjusted gross margin of 26.5%, translating to an adjusted operating margin of 5.5%. Adjusted EPS for the quarter was $0.36. During the quarter, we continue to position the company for long-term growth with a number of important business awards. This morning, I'm pleased to announce a strategically and financially significant awards for both our park-by-wire wire and shift-by-wire transmission actuation systems.

Total awarded peak annual revenue for our park-by-wire programs now exceeds $45 million while shift-by-wire awards launching in the next year exceed $20 million. We continue to position the company for growth not only in each of our segments with new business awards, but also in key geographies. In Brazil, recently, we have been awarded an incremental $10.5 million of peak annual revenue programs for OEM customers related to our driver information systems and infotainment products.

These awards, which are scheduled to launch in early to mid-2020, will provide a strong foundation for continued OEM success in the region. A few weeks ago, I was able to join our team in China