Q2 2023 Stoneridge Inc Earnings Call

August 3, 2023

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Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Kellie Harvey Director of Investor Relations Kelly you have the floor.

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 stoneridge Dot com in the investors section under Webcasts and presentations joining.

Joining me on today's call are Jim <unk>, our President and Chief Executive Officer, and Matt Horvath, Our Chief Financial Officer.

Before we begin I need to inform you that certain statements today may be forward looking statements.

<unk> 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.

Additional information about such factors and uncertainties that could cause actual results to differ may be found in our 10-Q, which was filed with the securities and 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 Jim and Matt had finished their formal remarks. We will then open up the call to questions with that I will turn the call over to Jim.

Jim.

Thanks, Kelly and good morning, everyone. Let me begin on page three in the second quarter, we drove strong top line growth and significant margin improvement, resulting in financial performance that exceeded the expectations, we outlined on our first quarter call.

As expected we finalized the majority of our pricing negotiations in the second quarter, resulting in retroactive and forward looking price increases.

Additionally, we continue to focus on improving manufacturing performance and optimizing our global cost structure to both reduce costs and improve operational efficiency.

This resulted in significant operating margin improvement in the quarter and provides a good foundation to drive continued operating performance as we continue to grow the company.

Second quarter adjusted sales grew by 13% relative to the first quarter to $262 4 million second quarter growth outpaced the growth in our weighted average end markets by more than five times.

Second quarter, adjusted gross and operating margin improved by 470, and 390 basis points, respectively versus the first quarter, resulting in a gross margin of 23, 2% over $6 million of operating income and an operating margin of two 4% our adjusted EBITDA margin increased by three.

Hundred basis points to four 5%, while adjusted EPS for the quarter improved by 20.

Relative to the first quarter.

Second quarter EPS and adjusted EBITDA included non operating expenses of $2 $7 million or approximately eight.

Primarily related to our below the line nonoperating foreign currency expenses.

Excluding these non operating expenses adjusted EPS would be approximately <unk> <unk> in the quarter, while adjusted EBITDA margin would be approximately five 5%.

This morning, we are updating our expectations for operating performance and guiding to the high end of the previously provided range for adjusted revenue gross margin.

Operating margin to reflect improved operating performance continued strong demand and the favorable impact of completed price negotiations with our customers.

Primarily as a result of the below the line nonoperating costs recognized to date, we are reaffirming our previously provided full year guidance ranges for adjusted EPS EBITDA and tax expense.

Now on page four we're summarizing our key financial metrics for second quarter relative to the prior quarter in greater detail each of our key financial metrics improved significantly relative to the first quarter.

Second quarter adjusted sales grew by 13% relative to the first quarter of 2023, driven primarily by strong performance across each of our primary segments and key end markets.

In addition to increased pricing we saw continued strong demand in our commercial vehicle end markets stable production in North America, and normalization in our China and off highway end markets easing material constraints contributed to strong production volume and reduced production volatility for both us and our customers.

Adjusted gross margin increased by 470 basis points relative to the first quarter of 2023, primarily due to incremental pricing.

As expected gross margin was significantly impacted by the finalization of customer price agreements as well as contribution on incremental sales.

We expect the price agreements reached during the quarter will result in sustainable improved profitability as we capitalize on our strong forward growth profile.

Adjusted operating margin improved by 390 basis points, resulting in operating income improvement of $9 $7 million relative to the first quarter.

During the quarter, we took several actions to optimize our organizational structure reduced discretionary spending and improve operating leverage. We expect these actions will continue to drive improved operating margin as revenue continues to grow during.

During the quarter operating performance was partially offset by higher engineering spend as as a result of required short term support for key program launches.

We expect G&A cost to be more in line with the first quarter by the end of the year as we progressed towards the launch of several major programs, including the launch of the Smart <unk> Tachograph. This summer.

Additionally, we are accelerating our plan to utilize our global resources to align engineering capability and capacity with cost efficiency.

Finally, adjusted EBIT margin improved by approximately 300 basis points as a result of improved operating performance. This was partially offset by the impact of non operating expenses relative to foreign currency adjustments on intercompany loans and a small adjustment to the fair value of our investments and auto Tech ventures.

Excluding these non operating expenses adjusted EBITDA would be $14 $7 million, resulting in an adjusted EBITDA margin of five 6%.

Overall, we are very pleased with our operating performance in the quarter and even more excited about the foundation. We are building to generate improved operating performance on the strong growth, we expect going forward.

Now turning on to page five.

While we continue to focus on improved operating performance. We are also continuing to execute on our long term strategy focused on drivetrain agnostic technologies across our segments and markets and customers.

This morning, I want to highlight a new business award aligned with this long term strategy.

And consistent with our strategy focused on safety and electronics. We will also provide some very exciting new information regarding our existing mirror programs.

Today, we are announcing new business that encompasses both the extension of an existing front axle disconnect program and Andy awarding of the next generation program for a major OEM and our control devices segment.

Our front axle disconnect is in actuation device that decoupled in renewables the front axle and four four by four vehicles in order to allow for a seamless transition between four wheel drive and two wheel drive.

The extension and New award secure our strategic position on high demand light trucks and Suvs through 2032.

These programs are expected to generate approximately $28 million in peak annual revenue.

This award demonstrates our capabilities in advanced actuation devices and continued expansion in four wheel drive applications, but in addition, this product aligns with our platform based driveline agnostic approach as this technology can be applied to hybrid and fully electric vehicles as demonstrated by our disconnect.

<unk> that was recently launched on the hybrid electric corvette ebay.

Next I would like to provide an update on another product that we believe has significant upside our very first north American year I OEM program.

This morning, I am happy to announce that <unk> is our first north American customer the Kenworth <unk> hundred 80 truck now offers mirror as an option offering improved fuel economy of up to one 5% enhanced driver visibility during the day night, and inclement weather and the ability to attract a trailer.

On the corner are well back into any driving environment.

We are so proud to support the launch of its industry, leading and innovative new platform. The program launched in mid April and production continues to ramp up on the 10 with vehicles.

Also aligned with our prior expectations. The Peterbilt production launch will soon follow and.

In addition, our fleet customers have expressed to us their excitement around this OEM offering which suggests very strong market demand in North America.

Additionally, the mirror OEM program in Europe remains consistent at approximately 40% take rate.

Other Oems are starting to take note of the strong market demand both in North America, and Europe , and we continue to work with our current and potential customers to expand mirror onto other OEM programs platforms and configurations, and we plan for increasing demand as well.

We are outlined as we outlined last quarter. Our next OEM has already increased their expected take rates.

Our strategy is working our strategy is working we continue to win New business Awards launch, new and exciting technologies across our end markets and markets and support our customers as they bring best in class industry changing technologies to market.

Now turning on to page six in summary, we are still very pleased with our performance in the second quarter as we demonstrated our ability to execute and drive improved financial performance.

As a result of a rigor and discipline in completing customer price negotiations in the second quarter as well as our laser focus on operating performance. We recognized substantial gross margin improvement that translated to improved operating performance during the quarter.

Now with the majority of our customer price negotiations complete we will continue to focus on improving execution in our manufacturing facilities and in all of our supporting functions, resulting in both reduce costs as well as more efficient operations now.

With that I'll turn it over to Matt to discuss our financial results in more detail, Matt. It's all yours, great. Thank you Jim turning to slide eight adjusted sales in the second quarter were approximately $262 4 million, an increase of 13% relative to the prior quarter.

Adjusted operating income was $6 $2 million or two 4% of adjusted sales, which was an increase of 390 basis points from the prior quarter I'll provide additional detail on segment level performance on the subsequent slides.

As Jim discussed earlier in the call we are guiding to the high end of the previously provided guidance ranges for adjusted revenue gross margin and operating margin to reflect improved operating performance to date and an improved outlook for the remainder of the year on continued strong sales.

We expect continued strength in our commercial vehicle end markets as customer orders remained stable and new program launches, including our smart tachograph are expected to continue to drive outsized market growth.

In our automotive end markets production volatility has improved and stabilized. Despite the fact that the third quarter is typically slower due to reduced production scheduled in the summer we expect revenue in the second half to be relatively in line with the first half as a result, we're expecting second half revenue to be weighted to the fourth quarter.

Adjusted gross margin improved by 490 basis points in the quarter relative to the first quarter, primarily driven by improved operating performance and the impact of negotiated price increases we expect third quarter gross margin to be approximately 21%. After considering the one time impact of retroactive price benefits in the second quarter and relatively lower revenue in the third.

Its margin and operating margin to reflect improved operating performance to date and an improved outlook for the remainder of the year on continued strong sales we.

Impacting fixed cost leverage relative to the second we expect the gross margin performance will follow sales with sequentially better performance from the third to fourth quarter, resulting in full year performance at the high end of our previously provided guidance.

We expect continued strength in our commercial vehicle end markets as customer orders remained stable and new program launches, including our smart to tachograph are expected to continue to drive outsized market growth in our automotive end markets production volatility has improved and stabilized. Despite the fact that the third quarter is typically slower due to reduced production scheduled in the summer.

We expect operating margin to continue to expand in the third quarter and subsequently in the fourth quarter aligned with reduced engineering expenses compounded by expanding gross margin in the fourth quarter on increased revenue.

We expect revenue in the second half to be relatively in line with the first half as a result, we're expecting second half revenue to be weighted to the fourth quarter.

We expected engineering expenses will decline back to normalized levels in the second half as we ramp down after the launch of smart too in late summer and continued to utilize our global footprint to reduce overall expense.

We expect that the reduction in engineering expense in the third quarter will more than offset the onetime retroactive price benefit from the second quarter that is not expected to repeat in the third.

In addition today, we are reaffirming our previously provided full year guidance ranges for adjusted EPS EBITDA and tax expense in the first half of the year, we recognized headwinds related to nonoperating FX expense and nonoperating equity interest related expenses of approximately $4 million or <unk> 12 of adjusted EPS.

Impacting fixed cost leverage relative to the second.

We expect the gross margin performance will follow sales with sequentially better performance from the third to fourth quarter, resulting in full year performance at the high end of our previously provided guidance. We expect operating margin to continue to expand in the third quarter and subsequently in the fourth quarter aligned with reduced engineering expenses compounded by expanding gross margin in the fourth.

Furthermore, we expect slightly higher interest expense driven primarily by rising interest rates for the remainder of the year we expect.

Quarter on increased revenue.

Continued EPS improvement in the third quarter, driven by operating performance relatively in line with the second quarter and reduced non operating expenses to result in above breakeven adjusted EPS for the quarter.

With continued revenue growth and margin expansion in the fourth quarter, we expect significant EPS growth in the fourth quarter to result in approximately breakeven adjusted EPS performance for the full year.

With strong revenue growth and expanding gross margin driving stronger operating performance, we remain well positioned to achieve the high end of our previously guided operating metrics.

Despite $4 million or approximately <unk> 12 of non operating expense headwinds for the year, we remain on track to achieve the midpoint of our adjusted EPS and EBITDA guidance that we set at the beginning of the year, our implied margin run rate in the fourth quarter provides a strong foundation to support significant earnings growth forward on our expectation of continuing with <unk>.

Furthermore, we expect slightly higher interest expense driven primarily by rising interest rates for the remainder of the year we expect.

<unk> sales.

Page nine summarizes our key financial metrics specific to control devices.

Control devices second quarter sales of $93 $1 million increased by seven 4% compared to the prior quarter outpacing our underlying end markets, primarily due to higher sales in our North America automotive end market as well as higher sales in our China end markets as a result of production stabilizing in the second quarter.

With strong revenue growth and expanding gross margin driving stronger operating performance, we remain well positioned to achieve the high end of our previously guided operating metrics.

As Jim previously outlined our continued rotation to a drivetrain agnostic portfolio allows us to continue to grow no matter the shifts in end markets as evidenced by the business awards in our axle based actuation technologies on both traditional four by four vehicles and the actual application on a corvette E rate that we announced last quarter.

Adjusted operating income was $5 5 million for the quarter or five 9% of sales, which improved by approximately 420 basis points versus the prior quarter. The sequential expansion was driven by higher gross margins, primarily due to favorable sales mix during the quarter and increase overall sales.

<unk> sales.

Page nine summarizes our key financial metrics specific to control devices.

Also impacting adjusted operating performance was relatively lower SG&A costs.

We currently expect stable revenue performance and sequentially improving margin for control devices for the remainder of the year. We continue to focus on improved manufacturing and functional execution supply chain strategy and material cost improvement actions and we will continue to react to changes in our end markets as needed to drive sustained profitable growth.

As Jim previously outlined our continued rotation to a drivetrain ignostic portfolio allows us to continue to grow no matter the shifts in end markets as evidenced by the business awards in our actual based actuation technologies on both traditional four by four vehicles and the E axle application on a corvette E rate that we announced last quarter.

Page 10 summarizes our key financial metrics specific to electronics electronics second quarter sales were approximately $164 million, an increase of approximately 17% versus the prior quarter.

Adjusted operating income was $5 5 million for the quarter or five 9% of sales, which improved by approximately 420 basis points versus the prior quarter. The sequential expansion was driven by higher gross margin, primarily due to favorable sales mix during the quarter and increased overall sales.

<unk> sales growth significantly outperformed our underlying end markets relative to the first quarter.

This was primarily driven by higher sales in our commercial vehicle end markets due to continued high demand and incremental pricing as a result of completed contract negotiations with the majority of our customers.

Also impacting adjusted operating performance was relatively lower SG&A costs.

In addition, we recognized incremental sales in our off highway end markets during the quarter as a result of using supply chain constraints that negatively impacted production in the prior quarter.

We currently expect stable revenue performance and sequentially improving margin for control devices for the remainder of the year. We continue to focus on improved manufacturing and functional execution supply chain strategy and material cost improvement actions and will continue to react to changes in our end markets as needed to drive sustained profitable growth.

Adjusted operating income increased by approximately 370 basis points relative to the first quarter, primarily due to contribution from incremental revenue and the impact of increased pricing. This was partially offset by incremental D&A costs due primarily to program launch support.

Page 10 summarizes our key financial metrics specific to electronics electronics second quarter sales were approximately $164 million, an increase of approximately 17% versus the prior quarter.

As we outlined previously we do not expect this level of engineering expense to continue and expect a return to normalized levels in the second half of this year.

<unk> sales growth significantly outperformed our underlying end markets relative to the first quarter.

Based on continued strong demand by our commercial vehicle customers normalizing production levels and product launches, including our smart <unk> in the third quarter, we expect strong revenue growth for electronics, our margin profile continues to normalize after the last two years of supply chain and material related challenges aided by price increases negotiated and <unk>.

In addition, we recognized incremental sales in our off highway end markets during the quarter as a result of easing supply chain constraints that negatively impacted production in the prior quarter.

<unk> this quarter with an expanding margin profile and strong expected growth. We expect electronics operating income to continue to expand while required investments to fund short term launches are expected to decline. This provides a strong foundation for outsized market growth as well as significant earnings expansion going forward.

Page 11 summarizes our key financial metrics specific to Stoneridge, Brazil.

As we outlined previously we do not expect this level of engineering expense to continue and expect a return to normalized levels in the second half of this year.

Excluding the favorable impact of foreign currency Stoneridge, Brazil second quarter sales were approximately in line with the first quarter.

Revenue was impacted by higher sales, primarily in our aftermarket products offset by relatively lower OEM sales versus the first quarter of the year. Despite.

Continued macroeconomic challenges in Brazil, we expect revenue and operating margin to remain approximately stable in 2023. Additionally, Brazil has become a critical engineering center as we continue to expand our global engineering capabilities and core competencies.

We will continue to utilize our global footprint to cost effectively support our global business.

Turning to page 12, as our operating performance continues to improve so does our balance sheet and related leverage profile. This quarter, we achieved a net debt to trailing 12 months EBITDA compliance ratio of under three times as we continue to progress toward our target of less than two five times.

Page 11 summarizes our key financial metrics specific to Stoneridge, Brazil.

Excluding the favorable impact of foreign currency Stoneridge, Brazil second quarter sales were approximately in line with the first quarter.

Second quarter net debt was approximately in line with first quarter, we remain focused on improving cash performance and reducing net debt and related interest expense through strong operating performance and targeted actions to reduce net working capital, particularly our inventory levels as supply chain has normalized and material availability continues to improve.

Revenue was impacted by higher sales, primarily in our aftermarket products offset by relatively lower OEM sales versus the first quarter of the year. Despite.

At the beginning of 2023, we anticipated the continued material cost and production headwinds forecasted for the first half of the year would result in relatively lower EBITDA and worked with our bank group to amend our existing credit facility. Our amendment period ended at the end of the second quarter coming out of the amendment period and with considerably stronger operating performance.

We will continue to utilize our global footprint to cost effectively support our global business.

Turning to page 12, as our operating performance continues to improve so does our balance sheet and related leverage profile. This quarter, we achieved a net debt to trailing 12 month EBITA compliance ratio of under three times as we continue to progress toward our target of less than two five times.

We have initiated refinancing discussions and expect to refinance our existing credit facility prior to the issuance of the year end 2023 financial statements as performance and leverage ratios are expected to continue to improve.

Moving to slide 13 in closing as evidenced by the strong performance in the quarter. This team is focused on strong execution and careful cost control to continue to drive margin improvement that said, we are very pleased with our progress during the quarter with adjusted sales growth of 13% adjusted gross margin expansion of 470 <unk>.

Basis points and operating margin expansion of 390 basis points versus the first quarter. In addition, we continued to execute our long term strategy by winning business in critical growth areas and expanding our existing opportunities stoneridge is committed to driving shareholder value and that focus remains at the forefront of all of our strategic initiatives with that.

I will open up the call to questions.

Okay.

Thank you we will now conduct a question and answer session. As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one on the roster. Please standby, while we compile the Q&A roster.

<unk> points and operating margin expansion of 390 basis points versus the first quarter. In addition, we continued to execute our long term strategy by winning business in critical growth areas and expanding our existing opportunities stoneridge is committed to driving shareholder value and that focus remains at the forefront of all of our strategic initiatives with that.

Our first question comes from Justin Long with Stephens Justin. Please go ahead with your question.

Thanks, Good morning, and congrats on the quarter.

Thanks, Jeff and good morning, Justin.

Maybe to start with the guidance, Matt you talked about the gross margin cadence in the back half of the year is there any color you can give on the EBITDA margin cadence.

I will open up the call to questions.

Okay.

For Q because to your point the run rate should be kind of well above the average for the full year on an EBITDA margin. So I just wanted to see if we could get a little bit more clarity on how to think about the setup as we progress into next year.

Thank you we will now conduct the question and answer session. As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.

With showing your question. Please press star one one on the roster. Please standby, while we compile the Q&A roster.

Yes, so certainly Justin Thank you for the question, we expect that we will have some normalizing of gross margin in the third quarter like I talked about in the prepared remarks.

Our first question comes from Justin long with Stephen Justin. Please go ahead with your question.

Particularly around.

The reduction of that kind of retroactive price benefit that we saw in the second quarter that said, we expect that that will be more than offset by reduced engineering expenses as we move forward into the second half of the year. So like I said in the prepared remarks, we expect above breakeven.

Thanks, Good morning, and congrats on the quarter.

Thanks, Jeff and good morning, Justin.

Maybe to start with the guidance, Matt you talked about the gross margin cadence in the back half of the year is there any color you can give on the EBITDA margin cadence.

EPS performance for the quarter and you should expect that we'll see sequentially improving EBITDA margin performance through the through the second quarter, we talk about back half of the year and run rate.

Like we said, we expect weighted the revenue to be weighted to the fourth quarter and the second half we would expect gross margin to continue to sequentially improve from the third to the fourth quarter and we would expect that D&B remains kind of at that normalized level or maybe even improves a little bit in the back half. So when you put those pieces of the puzzle together you should expect sequentially improving EBITDA.

Particularly around.

Margin to a run rate out of 2023.

That is strong heading into 2024.

Okay, Great and maybe one for Jim as we look at the margin improvement we saw in the business sequentially in the second quarter.

It is encouraging it feels like that the.

Any of this was driven by price and that pricing outside of the retroactive catch up is sustainable but when you think about the next leg of margin improvement can you talk about some of the self help opportunities that are out in front of you I know DMD is coming down but what are some of the operational.

Performance for the quarter and you should expect that we will see sequentially improving EBITDA margin performance through the through the second quarter, we talked about back half of the year and run rate, we'd like we said, we expect weighted the revenue to be weighted to the fourth quarter and the second half we would expect gross margin to continue to sequentially improve from the third to the fourth quarter.

As you can drive.

And we would expect that D&B remains kind of at that normalized level or maybe even improves a little bit in the back half. So when you put those pieces of the puzzle together you should expect sequentially improving EBITDA margin to a run rate out of 2023 that is strong heading into 2024.

To improve margins from here.

Justin Thanks for the question and maybe first things first I would say that.

The improvement isn't just characterized by price right. We all have already started to apply some of the execution type initiatives that I've been talking about for the last six months or so and we're already seeing the benefits of some of those actions.

Really hitting hitting our numbers going forward of course as you are alluding to there are more and some of the things that we're doing inside the houses really taking action on how we are set up as a company.

Should we be doing from a functional perspective to ensure that we've got the greatest amount of efficiency of the greatest amount of efficiency.

<unk> changes you can drive.

As we execute and.

To improve margins from here.

There are several.

<unk>.

Functional areas, where we are realigning those organizations. So that we can operate more effectively across the company instead of so independently division by division and by doing that we ended up.

The improvement isn't just characterized by price right. We all have already started to apply some of the execution type initiatives that <unk> been talking about for the last six months or so and we're already seeing the benefits of some of those actions.

Taking care of redundancies, and we significantly improve the throughput in the company as well being able to handle a lot more development and launches and what you would normally do as we had been set up in a prior.

Hitting hitting our numbers going forward of course as you are alluding to there are more and some of the things that we're doing inside the houses really not taking action on how we are set up as a company.

Okay. Thanks, and last one from me is on the balance sheet, Matt is a refi of the debt factored into the guidance at all it looks like Thats something you anticipate before the end of the year. So curious if you have any initial thoughts on the impact that could have an if that's factored in.

Should we be doing from a functional perspective to ensure that we've got the greatest amount of efficiency of the greatest amount of efficiency.

As we execute and.

There are several.

<unk>.

No just that that is not included in the current guidance.

Functional areas, where we are realigning those organizations. So that we can operate more effectively across the company instead of so independently division by Division.

We're still evaluating what the right structure is we as we've talked about in the past.

We're very confident in the initiatives and execution plan that we had to drive significantly better performance in this quarter and as you've seen the guidance continue that trend for the remainder of the year. So we wanted to make sure that we got a couple of good quarters of performance as we expected.

And by doing that we ended up.

Taking care of redundancies, and we significantly improved the throughput in the company as well being able to handle a lot more development and launches and what you would normally do as we had been set up in the enterprise.

Out in front of US here as we as we look at refinancing because I think it will help us significantly with the structure and the terms that we should get in that deal, but there is not anything included in the guidance.

Okay. Thanks, and last one for me is on the balance sheet, Matt is a refi the debt factored into the guidance at all it looks like Thats something you anticipate before the end of the year. So curious if you have any initial thoughts on the impact that could have an if that's factored in.

<unk> to the refinancing at this point.

Okay understood. Thank you so much for the time.

Thanks, Josh I appreciate the question and I appreciate adjustment. Thank you.

I am showing no further questions at this time I would now like to turn it back over to Jim for closing remarks.

We're still evaluating what the right structure is we as we've talked about in the past we were very confident in the initiatives and execution plan that we had to drive significantly better performance in this quarter and as you've seen the guidance continue that trend for the remainder of the year. So we wanted to make sure that we got a couple of good quarters of performance.

Okay.

Well, thanks, everyone for joining us for the call I know your time is really quite important and we truly appreciate your willingness to engage us today and we couldnt be more excited about our industry changing product platforms and the growth it brings to our company.

Our focus on rigorous and disciplined execution is already driving improved performance based on the results. We outlined today and we will remain focused on the operational excellence to drive shareholder value as we continue to build our strong strategic foundation. Thanks again, everyone.

As we expected.

<unk> to the refinancing at this point.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay understood. Thank you so much for the time.

Thanks, Josh I appreciate the question and I appreciate adjustment. Thank you.

I am showing no further questions at this time I would now like to turn it back over to Jim for closing remarks.

Okay.

This concludes today's conference call. Thank you for participating you may now disconnect.

Yes.

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Q2 2023 Stoneridge Inc Earnings Call

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