Stoneridge Inc (SRI) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2014

Exhibit 99.1

STONERIDGE REPORTS FOURTH-QUARTER 2014 RESULTS

WARREN, Ohio – February 27, 2015 – Stoneridge, Inc. (NYSE: SRI) today announced financial results for the quarter and year ended December 31, 2014.

Fourth-quarter 2014 net sales were $166.8 million, a decrease of $2.4 million, or 1.4%, compared with $169.2 million for the fourth quarter of 2013. The Company’s PST business segment experienced a sales decrease of $9.8 million, or 21.5%, compared with the fourth quarter of 2013 as a result of deteriorating economic conditions in Brazil. PST sales were also adversely affected by unfavorable foreign exchange translation. The Brazilian Real depreciated 11.7% to the U.S. dollar, which reduced U.S. dollar reported sales for PST by approximately $4.2 million of the $9.8 million decrease. On a local currency basis, PST sales decreased by 12.3%.

The Company’s Control Devices segment recorded an increase in sales of $2.8 million, or 3.8%, and the Electronics segment recorded a $4.6 million, or 8.9%, increase compared with the fourth quarter of 2013. Electronics sales in the fourth quarter of 2014 included $6.3 million of post disposition sales to the Company’s former Wiring business acquired by Motherson. These sales were previously accounted for as intercompany transactions. The increases reflect continued strength in these segments.

The adjusted earnings per share from continuing operations attributable to Stoneridge, Inc. was $0.25 for the fourth quarter of 2014 (see Exhibit 1 for reconciliation of this non-GAAP measure). The fourth-quarter 2014 loss from continuing operations attributable to Stoneridge, Inc. of ($24.9) million, or ($0.92) per diluted share, included non-cash expense for PST goodwill impairment of $21.8 million, or $0.81 per diluted share, which was the result of the Company’s annual goodwill valuation testing. In addition, the Company recorded $9.7 million, or $0.36 per diluted share, for the note redemption premium and write-off of deferred financing fees from the redemption on October 15, 2014 of the remaining $157.5 million of the outstanding 9.5% Senior Secured Notes.

Fourth-quarter 2014 net loss attributable to Stoneridge, Inc. was ($26.6) million, or ($0.99) per diluted share, composed of loss from continuing operations of ($24.9) million, or ($0.92) per share, and loss on discontinued operations related to the former Wiring business of ($1.7) million, or ($0.07) per share.

As of December 31, 2014, Stoneridge’s consolidated cash position was $43.0 million, a decrease of $19.8 million from December 31, 2013. Cash decreased due to payments made to extinguish the 9.5% Senior Secured Notes. In addition, PST’s inventories were reduced by $9.0 million in the fourth quarter compared to the third quarter, with plans in place to reduce inventory further in the first half of 2015.

John Corey, President and Chief Executive Officer, commented, “Our Electronics and Control Devices segments continued to perform well and PST’s sales performed as we expected in the fourth quarter. Consummating the sale of the Wiring business, executing our new Credit Facility on September 12, 2014, and extinguishing the Notes were important transformational steps for Stoneridge. As we begin 2015, we will focus our efforts on our organic growth which is mostly in the North America region. We will also remain active in pursuing attractive acquisition opportunities to augment our growth strategies in Control Devices and Electronics.”