Stoneridge
SRI
#9011
Rank
$0.13 B
Marketcap
$4.93
Share price
2.07%
Change (1 day)
5.57%
Change (1 year)

Stoneridge - 10-Q quarterly report FY


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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 1999. Commission file number 001-13337


STONERIDGE, INC.
--------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)


Ohio 34-1598949
------------------------------- ---------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)


9400 East Market Street, Warren, Ohio 44484
------------------------------------- ---------------------
(Address of Principal Executive Offices) (Zip Code)

(330) 856-2443
--------------------------------------------------
Registrant's Telephone Number, Including Area Code


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No .
---- ----

The number of Common Shares, without par value, outstanding as of May 11, 1999:
22,397,311
STONERIDGE, INC.

INDEX

<TABLE>
<CAPTION>
Page No.
<S> <C>
Part I Financial Information

Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 1999 2
and December 31, 1998
Condensed Consolidated Statements of Income for the three 3
months ended March 31, 1999 and 1998
Condensed Consolidated Statements of Cash Flows for the 4
three months ended March 31, 1999 and 1998
Notes to Condensed Consolidated Financial Statements 5-7
Item 2. Management's Discussion and Analysis of 8-11
Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure About Market 11
Risk

Part II Other Information 12

Signatures 13

Exhibit Index 14
</TABLE>








1
PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
------------------ -----------------
(unaudited) (audited)
<S> <C> <C>
ASSETS
- ------

CURRENT ASSETS:
Cash and cash equivalents $ 1,764 $ 1,876
Accounts receivable, net 102,398 84,655
Inventories 57,323 53,273
Prepaid expenses and other 8,010 5,983
Deferred income taxes 12,447 11,679
------------------ -----------------
Total current assets 181,942 157,466
------------------ -----------------

PROPERTY, PLANT AND EQUIPMENT, net 99,970 94,770
OTHER ASSETS:
Goodwill, net 349,116 351,501
Other intangible assets, net 3,908 3,928
Investments and other 28,463 30,451
------------------ -----------------
TOTAL ASSETS $663,399 $638,116
================== =================

LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------

CURRENT LIABILITIES:
Current portion of long-term debt $ 21,885 $ 21,213
Accounts payable 43,517 45,835
Accrued expenses and other 53,052 48,234
------------------ -----------------
Total current liabilities 118,454 115,282
------------------ -----------------

LONG-TERM DEBT, net of current portion 332,449 322,724
DEFERRED INCOME TAXES 9,544 8,088
OTHER LIABILITIES 1,552 1,480
------------------ -----------------
Total long-term liabilities 343,545 332,292
------------------ -----------------

SHAREHOLDERS' EQUITY:
Preferred shares, without par value, 5,000 authorized, none issued -- --
Common shares, without par value, 60,000 authorized, 22,397 issued and -- --
outstanding at March 31, 1999 and December 31, 1998, stated at
Additional paid-in capital 141,506 141,506
Retained earnings 60,103 49,330
Accumulated other comprehensive income (209) (294)
------------------ -----------------
Total shareholders' equity 201,400 190,542
------------------ -----------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $663,399 $638,116
================== =================
</TABLE>

The accompanying notes to condensed consolidated financial statements are
an integral part of these condensed consolidated balance sheets.

2
STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(in thousands except for per share data)

<TABLE>
<CAPTION>
Three months ended
March 31,
-----------------------------
1999 1998
------------ ------------
<S> <C> <C>
NET SALES $177,654 $131,216

COST AND EXPENSES:
Cost of goods sold 128,214 99,513
Selling, general and administrative expenses 23,183 15,665
------------ ------------

Operating income 26,257 16,038

Interest expense, net 8,250 274
------------ ------------

INCOME BEFORE INCOME TAXES 18,007 15,764

Provision for income taxes 7,234 6,382
------------ ------------

NET INCOME $ 10,773 $ 9,382
============ ============

BASIC AND DILUTED NET INCOME PER SHARE $0.48 $0.42
============ ============

WEIGHTED AVERAGE SHARES OUTSTANDING 22,397 22,397
============ ============
</TABLE>


The accompanying notes to condensed consolidated financial statements
are an integral part of these condensed consolidated statements.

3
STONERIDGE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

(in thousands)
<TABLE>
<CAPTION>
For the three months
ended March 31,
------------------------------
1999 1998
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 10,773 $ 9,382
Adjustments to reconcile net income to net cash
from operating activities-
Depreciation and amortization 7,106 3,559
Deferred income taxes 696 (997)
Changes in operating assets and liabilities-
Accounts receivable, net (13,385) (13,815)
Inventories 945 (161)
Prepaid expenses and other (1,531) (1,064)
Other assets, net 796 (995)
Accounts payable (4,656) 4,325
Accrued expenses and other 64 (1,027)
------------- -------------
Net cash from operating activities 808 (793)
------------- -------------

INVESTING ACTIVITIES:
Capital expenditures (1,639) (1,734)
Proceeds from sale of fixed assets -- 12
Business acquisitions (12,452) --
------------- -------------
Net cash from investing activities (14,091) (1,722)
------------- -------------

FINANCING ACTIVITIES:
Shareholder distributions paid -- (2,600)
Net proceeds (repayments) of long-term debt and 2,722 (140)
other
Net borrowings under credit facility 10,391 4,871
------------- -------------
Net cash from financing activities 13,113 2,131
------------- -------------

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH 58 --
EQUIVALENTS

NET CHANGE IN CASH AND CASH EQUIVALENTS (112) (384)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,876 1,338
------------- -------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,764 $ 954
============= =============
</TABLE>

The accompanying notes to condensed consolidated financial statements
are an integral part of these condensed consolidated statements.

4
STONERIDGE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

(in thousands, except for share and per share data)

1. The accompanying condensed consolidated financial statements have been
prepared by Stoneridge, Inc. (the Company), without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission (the
Commission). The information furnished in the condensed consolidated
financial statements includes normal recurring adjustments and reflects all
adjustments which are, in the opinion of management, necessary for a fair
presentation of such financial statements. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to the Commission's rules and regulations.
Although the Company believes that the disclosures are adequate to make the
information presented not misleading, it is suggested that these condensed
consolidated financial statements be read in conjunction with the audited
financial statements and the notes thereto included in the Company's 1998
Annual Report to Shareholders.

The results of operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the full year.


2. Inventories are valued at the lower of cost or market. Cost is determined
by the last-in, first-out (LIFO) method for approximately 69% and 76% of
the Company's inventories at March 31, 1999 and December 31, 1998,
respectively, and by the first-in, first-out (FIFO) method for all other
inventories. Inventory cost includes material, labor and overhead.
Inventories consist of the following:

<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
-------------- -----------------
<S> <C> <C>
Raw materials $ 37,739 $32,453
Work in progress 8,340 10,673
Finished goods 13,426 12,379
Less-LIFO reserve (2,182) (2,232)
------------ ------------
Total $57,323 $53,273
============ ============
</TABLE>


3. On March 6, 1999, the Company purchased certain assets and assumed certain
liabilities of Delta Schoeller, Ltd. (Delta), a United Kingdom manufacturer
of switches for the automotive industry. The transaction was accounted for
as a purchase. The preliminary purchase price approximates $12.0 million.

On December 31, 1998, the Company purchased all the outstanding common
shares of Hi-Stat Manufacturing Company, Inc. (Hi-Stat) for approximately
$362,000. Hi-Stat manufactures engineered sensors, switches and soleniods
for the automotive industry. The transaction was accounted for as a
purchase. Accordingly, the assets acquired and liabilities assumed of Hi-
Stat are included in the consolidated balance sheet as of March 31, 1999
and December 31, 1998. The purchase price was funded with the Company's
cash on hand and with proceeds from the Company's senior secured credit
facility. The components of intangible assets included in the allocation
of purchase price at December 31, 1998 and the related straight-line
amortization periods is summarized as follows:

5
STONERIDGE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)

(in thousands, except for share and per share data)
<TABLE>
<CAPTION>
Amortization
Amount Period (years)
------------ --------------
<S> <C> <C>
Non-compete covenants $ 590 2
Patents 2,580 6-13
Goodwill 306,613 40
--------
Total $309,783
========
</TABLE>

The results of operations of Hi-Stat will be included in the
accompanying financial statements from the date of acquisition. As such,
Hi-Stat has no effect on fiscal year 1998 net income.

The unaudited proforma consolidated results of operations as though
Hi-Stat had been acquired as of the beginning of fiscal 1998 is as follows:
<TABLE>
<CAPTION>

Three months ended
March 31, 1998
------------------
<S> <C>
Net sales $172,869
Operating income $ 22,741
Net income $ 7,330
Basic and diluted earnings per share $ 0.33
</TABLE>

The pro forma data does not purport to be indicative of the results
that would have been obtained had these events actually occurred at the
beginning of the periods presented and is not intended to be a projection of
future results. The pro forma amounts reflect the results of operations for the
Company, Hi-Stat and the following assumed purchase accounting adjustments for
the periods presented:

. Elimination of historical management costs and interest expense of
Hi-Stat.
. Interest expense on borrowings used to fund the acquisition
. Amortization of intangible assets based on the purchase price allocation
. Estimated income tax effect on the results of operations and the pro forma
adjustments assuming both companies were subject to tax as C corporations


4. Other comprehensive income includes foreign currency translation
adjustments, net of related tax. Comprehensive income consists of the
following:

<TABLE>
<CAPTION>
March 31, 1999 March 31, 1998
------------------- -------------------
<S> <C> <C>
Net income $10,773 $9,382
Other comprehensive income 85 90
------------------- -------------------
Comprehensive income $10,858 $9,472
=================== ===================
</TABLE>

6
STONERIDGE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(Unaudited)

(in thousands, except for share and per share data)



5. The Company has a $425,000 credit agreement with a bank group. The credit
agreement has three components: a $100,000 revolving credit facility, a
$150,000 term facility and a $175,000 term facility. The $100,000 revolving
facility and the $150,000 term facility expire on December 31, 2003, and
require a commitment fee of 0.37% to 0.50% on the unused balance. Interest
is payable quarterly at either (i) the prime rate plus a margin of .25% to
1.50% or (ii) LIBOR plus a margin of 1.75% to 3.00%, depending upon the
Company's ratio of consolidated total debt to consolidated earnings before
interest, taxes, depreciation and amortization, as defined. The $175,000
term facility expires on December 31, 2005. Interest is payable quarterly
at either (i) the prime rate plus a margin of 2.00% or (ii) LIBOR plus a
margin of 3.50%.

Long-term debt consists of the following:

<TABLE>
<CAPTION>
March 31, 1999 December 31,1998
------------------------- -------------------------
<S> <C> <C>
Borrowings under credit facility $352,541 $342,150
Other 1,793 1,787
------------------------- -------------------------
354,334 343,937
Less: Current maturities 21,885 21,213
------------------------- -------------------------
$332,449 $322,724
========================= =========================
</TABLE>

7
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Results of Operations
- ---------------------

Three Months Ended March 31, 1999 Compared To Three Months Ended March 31, 1998
- -------------------------------------------------------------------------------

Net Sales. Net sales for the first quarter of 1999 increased by $46.5 million,
or 35.4%, to $177.7 million from $131.2 million for the same period in 1998.
Sales of core products increased by $54.1 million, or 49.9%, to $162.5 million
during the first quarter of 1999 compared to $108.4 million for the same period
of 1998. Sales of core products from the recent acquisitions of Hi-Stat and
Delta accounted for $47.1 million of the change, while sales of existing core
products increased by $7.0 million, or 6.5%, compared to same period in 1998.
Sales revenues for the quarter were favorably impacted by higher OEM production
volumes in both the passenger car/light truck and the commercial vehicle markets
which was offset by lower production volumes in the agricultural vehicle market.

Sales for the first quarter of 1999 for North America increased $40.6 million to
$161.2 million from $120.6 million for the same period in 1998. North American
sales accounted for 90.7% of total sales for the first quarter of 1999 compared
with 91.9% for the same period in 1998. Sales for the first quarter of 1999
outside North America increased $5.9 million to $16.5 million from $10.6 million
for the same period in 1998. Sales outside North America accounted for 9.3% of
total sales for the first quarter of 1999 compared with 8.1% for the same period
in 1998.

As expected, contract manufacturing sales for the first quarter of 1999 declined
by $7.6 million to $15.2 million, or 8.6%, of the Company's total sales revenue
compared with $22.8 million, or 17.4%, of total sales revenue for the same
period in 1998.

Cost of Goods Sold. Cost of goods sold for the first quarter of 1999 increased
by $28.7 million, or 28.8%, to $128.2 million from $99.5 million in the first
quarter of 1998. As a percentage of sales, cost of goods sold decreased to
72.2% in 1999 from 75.8% in 1998. The decrease as a percent of sales was due
primarily to a shift in product mix to higher value added electrical and
electronic core products and lower contract manufacturing sales.

Selling, General and Administrative Expenses. Selling, general and
administrative (SG&A) expenses increased by $7.5 million to $23.2 million in the
first quarter of 1999 from $15.7 million for the same period in 1998. As a
percentage of sales, SG&A expenses increased to 13.1% for the first quarter of
1999 from 12.0% for the same period in 1998. The increase is primarily
attributable to costs from the recent acquisitions.

Interest Expense. Interest expense for the first quarter of 1999 was $8.2
million compared with $0.3 million in 1998. Average outstanding indebtedness
was $349.1 million and $12.2 million for the first three months of 1999 and
1998, respectively. The increase in average outstanding indebtedness was
primarily due to borrowings to finance recent acquisitions.

Income Before Income Taxes. As a result of the foregoing, income before taxes
increased by $2.2 million for the first quarter of 1999 to $18.0 million from
$15.8 million in 1998.

Provision for Income Taxes. The Company recognized provisions for income taxes
of $7.2 million and $6.4 million for federal, state and foreign income taxes for
the first quarters of 1999 and 1998, respectively.

Net Income. As a result of the foregoing, net income increased by $1.4 million,
or 14.9%, to $10.8 million for the first quarter of 1999 from $9.4 million in
1998.

8
Liquidity and Capital Resources

Net cash provided from operating activities was $0.8 million for the
quarter ended March 31, 1999 as compared to net cash used in operating
activities of $0.8 million for the quarter ended March 31, 1998. The increase in
net cash from operating activities of $1.6 million was due to the increase in
net income of $1.4 million and the increase in depreciation and amortization of
$3.5 million which was offset by the increase in working capital and other
operating assets of $3.3 million.

Net cash used for investing activities was $14.1 million and $1.7 million
for the quarters ended March 31, 1999 and 1998, respectively. The increase in
cash used for investing activities of $12.4 million was primarily the result of
the acquisition of Delta. The acquisition of Delta was financed with funds from
the Company's $425.0 million credit agreement.

Net cash provided by financing activities was $13.1 million and $2.1
million for the quarters ended March 31, 1999 and 1998, respectively. Primarily
as a result of the Delta acquisition, long-term debt increased $13.1 million for
the quarter ended March 31, 1999.

The Company has a $425.0 million credit agreement (of which $352.5 million
was outstanding at March 31, 1999) with a bank group. The credit agreement has
three components: a $100.0 million revolving facility, a $150.0 million term
facility, and a $175.0 million term facility. The $100.0 million revolving
facility and the $150.0 million term facility expire on December 31, 2003, and
require a commitment fee of 0.37% to 0.50% on the unused balance. Interest is
payable quarterly at either (i) the prime rate plus a margin of .25% to 1.50% or
(ii) LIBOR plus a margin of 1.75% to 3.00%, depending upon the Company's ratio
of consolidated total debt to consolidated earnings before interest, taxes,
depreciation and amortization, as defined. The $175.0 million term facility
expires on December 31, 2005. Interest is payable quarterly at either (i) the
prime rate plus a margin of 2.00% or (ii) LIBOR plus a margin of 3.50%.

The Company has entered into five interest rate swap agreements with a
total notional amount of $345.0 million. The interest rate swap agreements
exchange variable interest rates on the senior secured credit facility for fixed
interest rates. The Company does not use derivatives for speculative or profit-
motivated purposes. To the extent that the notional amount of the swap
agreements exceed the carrying value of the underlying debt, a mark to market
adjustment is reflected in the financial statements.

Management believes that cash flows from operations and the availability of
funds from the Company's credit facilities will provide sufficient liquidity to
meet the Company's growth and operating needs.

Inflation and International Presence

Management believes that the Company's operations have not been adversely
affected by inflation. By operating internationally, the Company is affected by
the economic conditions of certain countries. Based on the current economic
conditions in these countries, management believes they are not significantly
exposed to adverse economic conditions.

9
Recently Issued Accounting Standards

Effective January 1, 1998 the Company adopted Statement of Financial
Accounting Standards No. 131 (SFAS 131), "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 requires the financial statement
disclosures for operating segments, products and services, and geographic areas.
The Company operates in one business segment based on the criteria set forth in
SFAS 131. Therefore, SFAS 131 will not affect the Company's financial position,
results of operations or financial statement disclosures.

The Company is required to adopt Statement of Financial Accounting
Standards No. 133 (SFAS 133), "Accounting for Derivative Instruments and Hedging
Activities" for its fiscal year ending 2000. SFAS 133 establishes new accounting
and reporting standards for derivatives and hedging activities. The Company has
not yet evaluated the financial accounting and reporting impact of SFAS 133.

Year 2000 Initiative

The Company has conducted an evaluation of the actions necessary in order
to gain assurance that its information and non-information technology systems
will be able to function without disruption with respect to the application of
dating systems in the Year 2000. As a result of this evaluation, the Company is
engaged in the process of upgrading, replacing and testing information systems,
computer applications and other systems to be able to operate without
disruption due to Year 2000 issues. The Company's remedial actions are scheduled
to be completed by the end of the third quarter of 1999.

There can be no assurance that the remedial actions being implemented by
the Company will be able to be completed by the time necessary to avoid Year
2000 dating systems problems or that the cost of doing so will not be in excess
of the amounts discussed below. If the Company is unable to complete its
remedial actions in the planned timeframe, contingency plans will be developed
to address systems that may not be Year 2000 compliant. These contingency plans
could include accelerating the implementation of third party Year 2000 compliant
software.

The Company estimates total historical Year 2000 expenditures to be
approximately $2.0 million. Year 2000 expenditures relate to modifying software,
purchasing new software and hardware, and replacing non-compliant software and
hardware. Year 2000 expenditures to be incurred through December 31, 1999 are
estimated to be an additional $1.6 million. These costs include both internal
and external personnel costs related to the assessment process, as well as the
cost of purchasing certain hardware and software. There can be no guarantee that
these estimates will be achieved, and actual results may differ from those
planned. The cost of remedial actions to rectify non-information technology
systems is not anticipated to be material to the Company's financial position or
results of operations. The Company intends to use cash provided from operations
to fund expenditures related to Year 2000 issues.

The Company currently believes the most likely worst case scenario with
respect to the Year 2000 issue is a disruption in the supply of products and
services from the Company's vendors, including utility providers. Such a supply
disruption could result in the Company not being able to produce certain
products for a period of time, which could have a material adverse effect on the
financial condition and results of operations of the Company.

10
The Company intends to develop contingency plans to address potential third
party system failures resulting from a Year 2000 problem. The Company has an
ongoing assessment process to gain assurances and certifications of customers'
and suppliers' Year 2000 readiness programs. Based on the results of the
assessment process, the Company will develop contingency plans for those
suppliers who are unable or unwilling to develop remediation plans to become
Year 2000 compliant. Although these plans are not yet complete, the Company
expects that these plans will include a combination of the resourcing of
materials to Year 2000 compliant vendors and the stockpiling of components. The
Company expects the implementation of these plans to occur by the end of the
third quarter of 1999.

Portions of this Year 2000 section contain statements that constitute
forward-looking statements. The forward-looking statements include statements
regarding the Company's intent, belief and expectations with respect to, among
other things, the timing of the Company's Year 2000 remedial actions and the
development of the Company's contingency plans, and the future expenses related
to the Company's Year 2000 compliance programs. Investors are cautioned that any
such forward-looking statement is not a guarantee and involves risks and
uncertainties, and that actual events may differ materially from those in the
forward-looking statement as a result of various factors, including, among
others, the discovery of a currently unknown material Year 2000 issue, the
failure of third parties to address Year 2000 issues, the failure to implement
the Company's Year 2000 plan as scheduled, and a material increase in the costs
of external consultants.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Company is exposed to certain market risks, primarily resulting from
the effects of changes in interest rates. To reduce exposures to market risks
resulting from fluctuations in interest rates, the Company uses derivative
financial instruments. Specifically, the Company uses interest rate swap
agreements to mitigate the effects of interest rate fluctuations on net income
by changing the floating interest rates on certain portions of the Company's
debt to fixed interest rates. The effect of changes in interest rates on the
Company's net income generally has been small relative to other factors that
also affect net income, such as sales and operating margins. Management believes
that its use of these financial instruments to reduce risk is in the Company's
best interest. The Company does not enter into financial instruments for trading
purposes.

The Company's risks related to commodity price and foreign currency
exchange risks have historically not been material. The Company does not expect
the effects of these risks to be material based on current operating and
economic conditions in the countries and markets in which it operates.

11
PART II. OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS
- --------------------------

In the ordinary course of business, the Company is involved in various legal
proceedings, workers' compensation and product liability disputes. The Company
is of the opinion that the ultimate resolution of these matters will not have a
material adverse effect on the results of operations or the financial position
of the Company.


ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
- --------------------------------------------------

None.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES
- ----------------------------------------

None.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------

None.


ITEM 5. OTHER INFORMATION
- --------------------------

None.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------

(a) Exhibits

3.1 Second Amended and Restated Articles of Incorporation of the Company
3.2 Amended and Restated Code of Regulations of the Company
27.1 Financial Data Schedule for the three months ended March 31, 1999

(b) Reports on Forms 8-K

1. The Registrant's Current Report on Form 8-K, dated January 15, 1999 that
described the acquisition of Hi-Stat Manufacturing Co., Inc.

2. The Company's Amendment No. 1 to Current Report on Form 8-K/A, dated
January 26, 1999 that described the acquisition of Hi-Stat Manufacturing
Co., Inc.

3. The Company's Amendment No. 2 to Current Report on Form 8-K/A, dated
March 16, 1999 that described the acquisition of Hi-Stat Manufacturing
Co., Inc. including financial statements of the business acquired and
pro forma financial information.

12
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


STONERIDGE, INC.



Date: May 17, 1999 /s/ Cloyd J. Abruzzo
--------------------

Cloyd J. Abruzzo
President and Chief Executive Officer
(Principal Executive Officer)


Date: May 17, 1999 /s/ Kevin P. Bagby
------------------

Kevin P. Bagby
Treasurer and Chief Financial Officer
(Principal Financial and Chief
Accounting Officer)

13
STONERIDGE, INC.

EXHIBIT INDEX

Exhibit
Number Exhibit
- -------- -------
3.1 Second Amended and Restated Articles of Incorporation of the Company,
filed herewith.
3.2 Amended and Restated Code of Regulations of the Company, filed
herewith.
27.1 Financial Data Schedule for the three months ended March 31, 1999,
filed herewith.

14