Stoneridge, Inc. (NYSE:SRI) Q3 2024 Earnings Conference Call October 31, 2024 9:00 AM ET

Company Participants

Kelly Harvey - Director, Investor Relations
James Zizelman - President and CEO
Matthew Horvath - Chief Financial Officer

Conference Call Participants

Daniel Imbro - Stephens
Gary Prestopino - Barrington Research

Operator

Good day and welcome to the Stoneridge, Inc., Third Quarter 2024 Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. Please note that the event is being recorded.

I would now like to turn the conference over to 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 2024 results. The release and accompanying presentation was filed with the SEC and is posted on our website at stoneridge.com in the Investor section under Presentations and Events.

Joining me on today’s call are James Zizelman, our President and Chief Executive Officer; Matthew 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 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 was filed yesterday with the Security 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 Slide 3 for a more detailed description of these non-GAAP measures and the appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

After Jim and Matt have finished their formal remarks, we will then open up the call to questions.

And with that, I will hand the call over to Jim.

James Zizelman

Thank you, Kelly, and good morning, everyone. Beginning on Page 4, during the third quarter we continued driving improvements in the fundamentals of our business. Our focus on operational efficiency resulted in reduced quality related costs, while reductions to operating expenses helped to offset some of the significant market related challenges we faced.

We continued to focus on our key initiatives to drive cash performance as well. As a result, during the first nine months of the year, we generated $13.3 million in cash, an improvement of $31.3 million versus the same period in 2023, primarily driven by improved working capital, including an $11.3 million reduction in inventory. Matt will provide additional detail regarding our quarterly financial performance and expectations for the remainder of the year later in the call.