| Stoneridge, Inc. | |||
| Ticker: | SRI | 9400 East Market Street | |
| Exchange: | NASDAQ-National Market | Warren, OH 44484 | |
| Industry: | Manufacturing (SIC Code 3714) | (330) 856-2443 | |
| # of Employees: | 3800 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/8/97 | |
| U.S. Shares: | 5,850,000 | Offer Date: | 10/9/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $15.00 - $17.00 | |
| Primary Shares: | 5,850,000 | Offer Price: | $17.50 | |
| Secondary Shares: | 0 | Gross Spread: | $1.18 | |
| Offering Amount: | $93,600,000 | Selling: | $0.74 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| Issuer's Law Firm: | Baker & Hostetler |
| Bank's Law Firm: | Katten Muchin & Zavis |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $363.75 | $108.06 | $83.45 | Assets: | $182.74 |
| Net Income: | $14.30 | $8.50 | $3.21 | Curr Assets: | $88.58 |
| EPS: | Liabilities: | $88.79 | |||
| Prior EPS: | $19.17 | $4.63 | Curr Liabilities: | $48.85 | |
| Cash Flow/Oper: | $25.27 | -$19.18 | -$1.13 | Equity: | $93.95 |
| Cash Flow/Fin: | -$7.13 | -$0.36 | -$3.63 | Cash: | $0.00 |
| Cash Flow/Inv: | -$18.07 | -$0.36 | Working Cap: | $39.73 | |
| Business Description |
| The company is a leading independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, medium and heavy duty truck and agriculture vehicle markets. The Company's products interface with a vehicle's mechanical and electrical systems to activate equipment and accessories, display and monitor vehicle performance, and control and distribute electrical power and signals. The Company has a leading market position in the design and manufacture of electrical and electronic modules and systems for the medium and heavy duty truck and agricultural vehicle markets. In the automotive market, the Company produces specially designed and engineered electrical and electronic component parts and modules, typically on a sole-source basis. The Company's engineers and designers work closely with customers to design, develop and manufacture components, modules and systems to address specific vehicle requirements. The Company, together with its predecessors, has long-standing relationships with its major customers, including General Motors Corporation (since 1950), Ford Motor Company (since 1919), Deere & Company (since 1965), and Navistar International Corporation (since 1973). Approximately 72% of the Company's 1996 net sales were derived from the automotive market and approximately 27% were derived from the medium and heavy duty truck and agricultural vehicle markets. |
| Competition |
| Markets for the Company's products are highly competitive. Quality, service, price, timely delivery, and technological innovation are the primary elements of competition. Many of the Company's competitors are more diversified and have greater financial and other resources than the Company. In addition, with respect to certain of its products, some of the Company's competitors are divisions of its OEM customers. There can be no assurance that the Company's business will not be adversely affected by competition or that the Company will be able to maintain its profitability if the competitive environment changes. |
| Business Plan |
| The Company seeks to grow primarily by leveraging its strong market positions and technical and manufacturing capabilities to provide highly engineered electrical and electronic components, modules and systems to the selected segments of the markets it serves. To achieve this goal the Company intends to: (i) focus on higher value-added systems and modules, (ii) expand new product development to increase vehicle platform penetration, (iii) expand penetration of international markets, and (iv) pursue strategic acquisitions and alliances. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for to pay for an S Corporation distribution and to repay debt. |
| Name of Shareholder | % Owned Before | % Owned After |
| D.M. Draime | 48.63% | |
| Scott N. Draime | 13.64% | |
| Cloyd J. Abruzzo | 11.73% | |
| Jeffrey P. Draime | 10.80% | |
| Rebecca M. Gang | 6.54% |
| Officer Name | Title | Age |
| D.M. Draime | Chairman of the Board of Directors, Assistant Secretary and Director | 64 |
| Kevin P. Bagby | Chief Financial Officer and Treasurer | 46 |
| Cloyd J. Abruzzo | President, Chief Executive Officer, Assistant Treasurer and Director | 47 |
| Avery S. Cohen | Secretary and Director | 60 |
| Sten Forseke | Vice President of the company and Managing Director of Berifors | 38 |
| David L. Thomas | Vice President of the Company and President of Alphabet Division | 48 |
| Gerald V. Pisani | Vice President of the Company and President of Pollak Engineered Products Division | 57 |