Stoneridge, Inc. (NYSE:SRI) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET

Company Participants

Kelly Harvey - Director, IR

Jonathan DeGaynor - CEO, President & Director

Matthew Horvath - CFO & Treasurer

Conference Call Participants

Justin Long - Stephens Inc.

Operator

Good day, and thank you for standing by. Welcome to the Stoneridge third quarter 2022 conference call. [Operator Instructions].

I would now like to hand the conference over to our speaker today, Kelly Harvey, Director of Investor Relations. Please go ahead.

Kelly Harvey

Good morning, everyone, and thank you for joining us to discuss our third quarter results. The release and accompanying presentation was filed with the SEC yesterday evening and is posted on our website at 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 Matt Horvath, our Chief Financial Officer.

Before we begin, I need to inform you that certain statements today may be forward-looking statements. Forward-looking statements, including statements that are not historical in nature and include information concerning our future results or plans. Although we believe such statements are based upon reasonable assumptions, you should understand that these statements are subject to risks and uncertainties and may -- 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 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 Jon and Matt have finished their formal remarks, we will then open up the call to questions. I would ask that you keep your question to a single follow-up. With that, I will turn the call over to Jon.

Jonathan DeGaynor

Thanks, Kelly, and good morning, everyone. Turning to Page 3. In the third quarter, we began to see the impacts of improving material availability on our top line performance, which drove significantly improved earnings performance. Excluding the impact of currency rates, adjusted sales increased by 6.2% in the quarter, while adjusted EBITDA margin improved by 580 basis points.

Margin expansion was driven by fixed cost leverage on revenue growth, the continued benefit of material cost mitigation actions, including historical customer recoveries and a continued focus on strong operating performance. Each of our segments drove revenue growth and above breakeven operating performance in the quarter.