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Published: 2023-11-01 16:48:30 ET
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EX-99.1 2 sri-20231101xexx991earning.htm EX-99.1 Document


Exhibit 99.1
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FOR IMMEDIATE RELEASE
Stoneridge Reports Strong Third-Quarter 2023 Results
THIRD-QUARTER PERFORMANCE REFLECTS CONTINUED MARGIN EXPANSION DRIVEN BY STRONG OPERATING PERFORMANCE

2024 PRELIMINARY OUTLOOK EXPECTS SALES GROWTH OF AT LEAST 5%,
SIGNIFICANTLY OUTPERFORMING WEIGHTED AVERAGE END-MARKETS


2023 Third-Quarter Results
•Sales of $238.2 million
•Adjusted sales of $237.2 million
•Gross profit of $52.5 million (22.1% of adjusted sales)
•Operating income of $6.5 million
•Adjusted operating income of $7.3 million (3.1% of adjusted sales)
•Adjusted EBITDA of $17.0 million (7.2% of adjusted sales)
•Earnings per share (“EPS”) of $0.08
•Adjusted earnings per share of $0.10

2023 Full-year Guidance
•Refining previously provided guidance ranges to reflect expectation of continued strong margin performance, partially offset by production volume headwinds in the fourth quarter including the expected impact of the UAW strike
◦Adjusted sales of $965.0 - $975.0 million
◦Adjusted gross margin of ~21.5%
◦Adjusted operating margin of ~2.0%
◦Adjusted EPS of $(0.10) - $0.00
▪Midpoint guidance change of ($0.05) aligned with the expected impact of UAW strike of ~($0.05)
◦Adjusted EBITDA margin of ~5.0%
◦Adjusted tax expense of $4.5 - $5.0 million
▪Midpoint guidance change of ~$1.25 million due to increase in expected tax expense as a result of mix of jurisdictional earnings

2024 Preliminary Revenue Guidance
•Providing preliminary 2024 guidance for at least 5% growth, which outpaces weighted-average end-markets by at least 6.5%
NOVI, Mich. – November 1, 2023 – Stoneridge, Inc. (NYSE: SRI) today announced financial results for the third quarter ended September 30, 2023, with sales of $238.2 million and earnings per share of $0.08. Adjusted sales
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for the third quarter were $237.2 million and adjusted EPS was $0.10. The exhibits attached hereto provide reconciliation detail on normalizing adjustments of Non-GAAP financial measures used in this press release.
For the third quarter of 2023, Stoneridge reported gross profit of $52.5 million (22.1% of adjusted sales). Operating income was $6.5 million and adjusted operating income was $7.3 million (3.1% of adjusted sales), an increase of 70 basis points relative to the second quarter of 2023. Adjusted EBITDA was $17.0 million (7.2% of adjusted sales), an increase of 260 basis points, relative to the second quarter of 2023.
Jim Zizelman, president and chief executive officer, commented, “During the third quarter we continued to take actions to improve our overall margin profile driving significant margin improvement. Our performance was primarily driven by continued material cost improvement and operating cost control resulting in adjusted operating margin expansion of 70 basis points and adjusted EBITDA margin expansion of 260 basis points versus the prior quarter. Despite volatility in our end-markets, we continue to deliver on our commitments driven by an unwavering focus to both execute on our long-term strategy and drive continuous operational excellence. Our third quarter performance is built on improved results from the second quarter as we continued to strengthen our foundation to drive operating performance and grow the Company.”
Zizelman continued, “As we continue to focus on margin performance, we are also focused on executing on the program launches that will drive growth for the Company to significantly outpace our underlying end-markets. During the third quarter, we launched the Smart 2 Tachograph program for commercial vehicles in Europe. This next generation smart tachograph was designed to meet the EU Mobility Package Standards and provides us with significant revenue opportunities with both European OEMs and aftermarket over the next several years. This program is expected to generate approximately $20 million in revenue in 2023 and more than $60 million in revenue in 2024.”
Zizelman concluded, “In addition, we are proud to support the US Department of Energy’s Super Truck II innovation truck program. The DOE has funded four projects to develop and demonstrate cost-effective technologies with the goal of more than doubling the freight efficiency of Class 8 trucks with Navistar, Daimler Truck North America, Peterbilt and Volvo Trucks. MirrorEye® was selected as a partner for all four SuperTruck II teams to help achieve significant increases in freight efficiency through improved fuel economy. We remain well positioned as the industry continues to focus on both vehicle efficiency and safety.”
Third Quarter in Review
Control Devices sales of $90.1 million increased by 0.8% relative to the third quarter of 2022. This increase was primarily due to higher sales in our China passenger and commercial vehicle end-markets as well as the impact of negotiated price increases, partially offset by lower sales in our North America passenger vehicle end-market. Third quarter adjusted operating margin of 6.2% declined by 220 basis points relative to the third quarter of 2022, primarily due to higher direct material costs and slightly higher SG&A and D&D costs.
Electronics adjusted sales of $142.4 million increased by 21.4% relative to the third quarter of 2022. This increase was primarily driven by higher sales volumes in our Europe and North America commercial vehicle end-markets, due in part to new program launches and ramp-ups, and negotiated price increases partially offset by lower sales in our off-highway end-markets Third quarter adjusted operating margin of 6.1% improved by 150 basis points relative to the third quarter of 2022, primarily due to higher contribution from higher sales, including negotiated price increases, and lower material costs. This was partially offset by higher SG&A and D&D costs, including support for new product launches.
Stoneridge Brazil sales of $14.2 million increased by 2.6% relative to sales in the third quarter of 2022, primarily due to favorable foreign currency translation and higher sales in OEM and aftermarket products. Third quarter adjusted operating margin of 5.6% declined by approximately 150 basis points relative to the third quarter of
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2022, primarily due to by higher SG&A and overhead costs partially offset by lower material costs from favorable foreign exchange rate fluctuations.
Relative to the second quarter of 2023, Control Devices sales decreased by 3.2%. This decrease was primarily due to lower sales in our North America passenger vehicle end-market, partially offset by higher sales in our China passenger vehicle end-market. Third quarter adjusted operating margin increased by 40 basis points relative to the second quarter of 2023, primarily due to lower direct labor costs.
Relative to the second quarter of 2023, Electronics adjusted sales decreased by 13.1%. This decrease was due in part to the expected production seasonality as well as the reduced demand in our commercial vehicle and off-highway end-markets. Third quarter adjusted operating margin increased by 80 basis points relative to the second quarter of 2023, primarily due to the step-down in D&D costs compared to the second quarter as elevated D&D spend for program launches declined. This was partially offset by the favorable impact of the one-time benefit of retroactive pricing recognized in the second quarter related to prior periods.
Relative to the second quarter of 2023, Stoneridge Brazil sales decreased by 5.0%. This decrease was primarily due to lower OEM product sales partially offset by higher sales in aftermarket products. Third quarter operating margin decreased by 40 basis points relative to the second quarter of 2023, primarily due to higher overhead and SG&A spend.
Cash and Debt Balances
As of September 30, 2023, Stoneridge had cash and cash equivalents balances totaling $36.8 million. Total debt as of September 30, 2023 was $186.0 million resulting in net debt of $149.2 million. Per the terms of the existing Revolving Credit Facility, the Company reported a net debt to trailing twelve-month EBITDA compliance ratio of 3.11x. The Company is in the advanced stages of refinancing its existing credit facility and anticipates that the refinancing will occur in the near future.
2023 Outlook
The Company is refining the previously guided ranges for its full-year performance including adjusted sales guidance of $965.0 million to $975.0 million, adjusted gross margin guidance of approximately 21.5%, adjusted operating margin guidance of approximately 2.0%, adjusted earnings per share guidance of $(0.10) to $0.00, adjusted EBITDA guidance of approximately 5.0%, of adjusted sales and adjusted tax expense guidance of $4.5 million - $5.0 million.
Matt Horvath, chief financial officer, commented “Our third quarter financial performance continued to build on our second quarter performance as we delivered strong sequential margin expansion. Despite some top-line headwinds related to the UAW strike in the fourth quarter, we are expecting continued EPS expansion in the fourth quarter as we continue to build on a strong foundation and drive earnings momentum into 2024. We are refining our full-year 2023 guidance to reflect our expectation of continued strong margin performance, offset by expected revenue headwinds in the fourth quarter including the expected impact of the UAW strike. While we remain within the guidance set at the beginning of the year, our updated midpoint adjusted EPS guidance has been adjusted by $0.05 to reflect approximately $0.05 of UAW-strike related headwinds.”
Horvath concluded, “We remain focused on building a strong foundation for continued earnings expansion as we capitalize on our robust backlog and impressive portfolio of advanced technologies. We are expecting continued strong growth next year and are issuing preliminary 2024 guidance for at least 5% revenue growth, which outpaces our weighted-average end-markets by at least 6.5%. Our growth will be driven by the continued ramp-up and expansion of our current North American and European MirrorEye programs, the launch of our next and largest MirrorEye program in Europe and the significant continued ramp-up of our Smart 2 tachograph program in Europe. Stoneridge remains well positioned to continue to outperform our underlying markets and drive margin expansion resulting in long-term shareholder value creation.”
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Conference Call on the Web
A live Internet broadcast of Stoneridge’s conference call regarding 2023 third quarter results can be accessed at 9:00 a.m. Eastern Time on Thursday, November 2, 2023, at www.stoneridge.com, which will also offer a webcast replay.
About Stoneridge, Inc.
Stoneridge, Inc., headquartered in Novi, Michigan, is a global designer and manufacturer of highly engineered electrical and electronic systems, components and modules for the automotive, commercial, off-highway and agricultural vehicle markets. Additional information about Stoneridge can be found at www.stoneridge.com.
Forward-Looking Statements
Statements in this press release contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business, and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:
•the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential tariffs and trade considerations on their operations and output;
•fluctuations in the cost and availability of key materials (including semiconductors, printed circuit boards, resin, aluminum, steel and copper) and components and our ability to offset cost increases through negotiated price increases with our customers or other cost reduction actions, as necessary;
•global economic trends, competition and geopolitical risks, including impacts from the ongoing global conflict and the related sanctions and other measures, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries;
•our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;
•the reduced purchases, loss or bankruptcy of a major customer or supplier;
•the costs and timing of business realignment, facility closures or similar actions;
•a significant change in automotive, commercial, off-highway or agricultural vehicle production;
•competitive market conditions and resulting effects on sales and pricing;
•foreign currency fluctuations and our ability to manage those impacts;
•customer acceptance of new products;
•our ability to successfully launch/produce products for awarded business;
•adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products;
•our ability to protect our intellectual property and successfully defend against assertions made against us;
•liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers;
•labor disruptions at our facilities, or at any of our significant customers (including the UAW strike which impacted certain customers) or suppliers;
•business disruptions due to natural disasters or other disasters outside of our control;
•the ability to refinance our existing revolving Credit Facility on a timely basis prior to its June 5, 2024 maturity;
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•the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving Credit Facility;
•capital availability or costs, including changes in interest rates or market perceptions;
•the failure to achieve the successful integration of any acquired company or business;
•risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber-attack and other similar disruptions; and
•the items described in Part I, Item IA (“Risk Factors”) in the Company’s 2022 Form 10-K.
The forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.
Use of Non-GAAP Financial Information
This press release contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures at the end of this press release. The provision of these non-GAAP financial measures for 2023 and 2022 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted net income, adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense, adjusted tax rate, adjusted net debt and adjusted cash are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating performance or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods.
Adjusted sales, adjusted gross profit and margin, adjusted operating income and margin, adjusted income (loss) before tax, adjusted net income (loss), adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, adjusted tax expense, adjusted tax rate, adjusted net debt and adjusted cash should not be considered in isolation or as a substitute for sales, gross profit, operating income, income (loss) before tax, net loss, earnings per share, tax expense, tax rate, debt, cash and cash equivalents, cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP.
For more information, contact Kelly K. Harvey, Director Investor Relations (Kelly.Harvey@Stoneridge.com).

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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)September 30,
2023		December 31,
2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$36,758 $54,798 
Accounts receivable, less reserves of $956 and $962, respectively177,202 158,155 
Inventories, net183,177 152,580 
Prepaid expenses and other current assets39,281 44,018 
Total current assets436,418 409,551 
Long-term assets:
Property, plant and equipment, net106,788 104,643 
Intangible assets, net45,180 45,508 
Goodwill33,789 34,225 
Operating lease right-of-use asset11,136 13,762 
Investments and other long-term assets, net45,463 44,416 
Total long-term assets242,356 242,554 
Total assets$678,774 $652,105 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit facility$183,918 $— 
Current portion of debt2,055 1,450 
Accounts payable131,094 110,202 
Accrued expenses and other current liabilities64,847 66,040 
Total current liabilities381,914 177,692 
Long-term liabilities:
Revolving credit facility— 167,802 
Deferred income taxes7,407 8,498 
Operating lease long-term liability8,054 10,594 
Other long-term liabilities8,057 6,577 
Total long-term liabilities23,518 193,471 
Shareholders' equity:
Preferred Shares, without par value, 5,000 shares authorized, none issued— — 
Common Shares, without par value, 60,000 shares authorized, 28,966 and 28,966 shares issued and 27,548 and 27,341 shares outstanding at September 30, 2023 and December 31, 2022, respectively, with no stated value— — 
Additional paid-in capital226,382 232,758 
Common Shares held in treasury, 1,418 and 1,625 shares at September 30, 2023 and December 31, 2022, respectively, at cost(43,408)(50,366)
Retained earnings193,485 201,692 
Accumulated other comprehensive loss(103,117)(103,142)
Total shareholders' equity273,342 280,942 
Total liabilities and shareholders' equity$678,774 $652,105 
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
September 30,		Nine months ended
September 30,
(in thousands, except per share data)2023202220232022
Net sales$238,164 $226,757 $746,303 $668,751 
Costs and expenses:
Cost of goods sold185,689 177,317 590,538 539,304 
Selling, general and administrative28,111 27,444 91,465 83,781 
Design and development17,852 16,133 57,486 48,715 
Operating income (loss)6,512 5,863 6,814 (3,049)
Interest expense, net3,313 1,845 9,179 4,848 
Equity in loss (earnings) of investee141 (34)641 424 
Other (income) expense, net(1,383)2,332 2,152 3,067 
Income (loss) before income taxes4,441 1,720 (5,158)(11,388)
Provision for income taxes2,270 989 3,049 2,895 
Net income (loss)$2,171 $731 $(8,207)$(14,283)
Income (loss) per share:
Basic$0.08 $0.03 $(0.30)$(0.52)
Diluted$0.08 $0.03 $(0.30)$(0.52)
Weighted-average shares outstanding:
Basic27,48427,28127,42827,250
Diluted27,73427,52427,42827,250
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, (in thousands)20232022
OPERATING ACTIVITIES:
Net loss$(8,207)$(14,283)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation19,800 20,183 
Amortization, including accretion and write-off of deferred financing costs6,077 6,187 
Deferred income taxes(2,732)(2,834)
Loss of equity method investee641 424 
Gain on sale of fixed assets(861)(95)
Share-based compensation expense2,272 4,421 
Excess tax deficiency related to share-based compensation expense74 266 
Gain on settlement of net investment hedge— (3,716)
Changes in operating assets and liabilities:
Accounts receivable, net(21,335)(28,333)
Inventories, net(33,651)(24,333)
Prepaid expenses and other assets7,473 (15,510)
Accounts payable23,322 18,366 
Accrued expenses and other liabilities1,459 15,119 
Net cash used for operating activities(5,668)(24,138)
INVESTING ACTIVITIES:
Capital expenditures, including intangibles(28,584)(22,877)
Proceeds from sale of fixed assets1,841 95 
Proceeds from settlement of net investment hedge— 3,820 
Investment in venture capital fund, net(200)(700)
Net cash used for investing activities(26,943)(19,662)
FINANCING ACTIVITIES:
Revolving credit facility borrowings81,365 21,817 
Revolving credit facility payments(64,568)(18,000)
Proceeds from issuance of debt27,579 30,513 
Repayments of debt(27,145)(32,789)
Earn-out consideration cash payment— (6,276)
Repurchase of Common Shares to satisfy employee tax withholding(1,697)(760)
Net cash provided by (used for) financing activities15,534 (5,495)
Effect of exchange rate changes on cash and cash equivalents(963)(3,915)
Net change in cash and cash equivalents(18,040)(53,210)
Cash and cash equivalents at beginning of period54,798 85,547 
Cash and cash equivalents at end of period$36,758 $32,337 
Supplemental disclosure of cash flow information:
Cash paid for interest, net$9,248 $4,992 
Cash paid for income taxes, net$8,453 $5,808 
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Regulation G Non-GAAP Financial Measure Reconciliations
Reconciliation to US GAAP
Exhibit 1 - Reconciliation of Adjusted EPS
(USD in millions, except EPS)Q3 2023Q3 2023 EPS
Net Income$2.2 $0.08 
Add: After-Tax Business Realignment Costs1.0 0.04 
Add: After-Tax Brazilian Indirect Tax Credits, Net(0.3)(0.01)
Adjusted Net Income$2.9 $0.10 


Exhibit 2 – Reconciliation of Adjusted EBITDA
(USD in millions)Q4 2022Q1 2023Q2 2023Q3 2023
Income (Loss) Before Tax$0.7 $(8.1)$(1.5)$4.4 
Interest expense, net2.2 2.7 3.1 3.3 
Depreciation and amortization8.2 8.3 8.4 8.5 
EBITDA$11.1 $3.0 $10.0 $16.2 
Add: Pre-Tax Business Realignment Costs— 1.3 1.9 1.2 
Less: Pre-Tax Gain on Disposal of Fixed Assets— (0.8)— — 
Add: Pre-Tax Environmental Remediation Costs— 0.1 — — 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net— — — (0.5)
Adjusted EBITDA$11.1 $3.6 $11.9 $17.0 

Exhibit 3 – Adjusted Gross Profit

(USD in millions)Q2 2023Q3 2023
Gross Profit$60.5 $52.5 
Add: Pre-Tax Business Realignment Costs0.5 — 
Adjusted Gross Profit$60.9 $52.5 

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Exhibit 4 - Adjusted Operating Income (Loss)

(USD in millions)Q1 2023Q2 2023Q3 2023
Operating Income (Loss)$(4.0)$4.3 $6.5 
Add: Pre-Tax Business Realignment Costs1.3 1.9 1.2 
Less: Pre-Tax Gain on Disposal of Fixed Assets(0.8)— — 
Add: Pre-Tax Environmental Remediation Costs0.1 — — 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net— — (0.5)
Adjusted Operating Income (Loss)$(3.4)$6.2 $7.3 

Exhibit 5 – Segment Adjusted Operating Income
Reconciliation of Control Devices Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Control Devices Operating Income$7.5 $5.1 $5.5 
Add: Pre-Tax Business Realignment Costs— 0.4 0.1 
Control Devices Adjusted Operating Income$7.5 $5.5 $5.6 

Reconciliation of Electronics Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Electronics Operating Income $5.4 $7.4 $7.6 
Add: Pre-Tax Business Realignment Costs— 1.3 1.1 
Electronics Adjusted Operating Income $5.4 $8.8 $8.7 

Reconciliation of Stoneridge Brazil Adjusted Operating Income
(USD in millions)Q3 2022Q2 2023Q3 2023
Stoneridge Brazil Operating Income$0.9 $0.9 $1.2 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net0.0 — (0.5)
Add: Pre-Tax Business Realignment Costs0.1 — — 
Stoneridge Brazil Adjusted Operating Income$1.0 $0.9 $0.8 

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Exhibit 6 – Reconciliation of Adjusted Sales
(USD in millions)Q3 2022Q2 2023Q3 2023
Sales$226.8 $266.8 $238.2 
Less: Sales from Spot Purchases Recoveries (12.8)(4.4)(0.9)
Adjusted Sales$214.0 $262.4 $237.2 

Exhibit 7 – Reconciliation of Electronics Adjusted Sales

(USD in millions)Q3 2022Q2 2023Q3 2023
Electronics Sales$130.0 $168.3 $143.3 
Less: Sales from Spot Purchases Recoveries (12.8)(4.4)(0.9)
Electronics Adjusted Sales$117.2 $163.9 $142.4 

Exhibit 8 – Reconciliation of Adjusted Tax Rate


(USD in millions)Q3 2023Tax Rate
Income Before Tax$4.4 
Add: Pre-Tax Business Realignment Costs1.2 
Add: Pre-Tax Brazilian Indirect Tax Credits, Net(0.5)
Adjusted Income Before Tax$5.2 
Income Tax Expense2.3 51.1 %
Add: Tax Impact from Pre-Tax Adjustments- 
Adjusted Income Tax Expense$2.3 44.8 %


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Exhibit 9 – Reconciliation of Compliance Leverage Ratio
Reconciliation of Adjusted EBITDA for Compliance Calculation
(USD in millions)Q4 2022Q1 2023Q2 2023Q3 2023
Income (Loss) Before Tax$0.7 $(8.1)$(1.5)$4.4 
Interest Expense, net2.2 2.7 3.1 3.3 
Depreciation and Amortization8.2 8.3 8.4 8.5 
EBITDA$11.1 $3.0 $10.0 $16.2 
Compliance adjustments:
Add: Adjustments from Foreign Currency Impact2.8 1.4 3.1 0.4 
Add: Extraordinary, Non-recurring or Unusual items0.1 0.2 — 0.5 
Add: Cash Restructuring Charges0.2 1.4 0.5 0.1 
Add: Adjustment to Autotech Investments0.4 0.2 0.3 0.1 
Adjusted EBITDA (Compliance)$14.6 $6.1 $13.9 $17.4 
Adjusted TTM EBITDA (Compliance)$52.1 
Reconciliation of Adjusted Cash for Compliance Calculation
(USD in millions)Q3 2023
Total Cash and Cash Equivalents$36.8 
Less: 35% Cash Foreign Locations(11.5)
Total Adjusted Cash (Compliance)$25.2 
Reconciliation of Adjusted Debt for Compliance Calculation
(USD in millions)Q3 2023
Total Debt$186.0 
Outstanding Letters of Credit1.6 
Total Adjusted Debt (Compliance)$187.6 
Adjusted Net Debt (Compliance)$162.3 
Compliance Leverage Ratio (Net Debt / TTM EBITDA)3.11x

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