Good day, and thank you for standing by. Welcome to the conference call of Stoneridge. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kelly Harvey, Director of Investor Relations.

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 to our Web site at stoneridge.com in the Investors section under Webcasts and Presentations. Joining me on today's call are Jim Zizelman, 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 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 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 index for a reconciliation of these non-GAAP financial 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. With that, I will turn the call over to Jim.

Thanks, Kelly, and good morning, everyone. Let me begin on page three. During the third quarter, we continued to build on our second quarter progression to drive significant sequential margin and earnings improvement. Third quarter adjusted EPS of $0.10 is an increase of $0.15 versus the second quarter, while EBITDA margin improved by 260 basis points, or approximately $5 million. We continue to focus on gross margin improvements through production efficiency, material cost reduction, and excellence in execution. Despite volatility in our end markets, we continue to deliver on our commitments driven by an unwavering focus to both execute on our long-term strategy and drive continuous operational excellence. Our third quarter performance, which builds on improved results last quarter, continues to establish a good foundation to drive operating performance as we continue to grow the company. Given the strength of the foundation, even in the face of market-based revenue headwinds, our full-year 2023, exclusive of the impact of the UAW strike, is expected to be directly in line with our original guidance. We are refining our guidance, still keeping it within our original range, but reducing the adjusted EPS midpoint by $0.05, which is equal to the estimated impact of the UAW strike. Our updated full-year midpoint guidance implies fourth quarter revenue of approximately $238 million, and adjusted EPS of $0.15 or a $0.05 improvement relative to the third quarter. We will continue to build on the foundation of the last couple of quarters to drive strong performance to finish the year, and provide a good runway heading into 2024. This morning, we are providing our preliminary revenue expectation of over 5% growth in 2024. This significantly outpaces our underlying end markets which are expected to contract by 1.5%. Matt will provide additional detail on our full-year guidance and our…

Great. Thanks, Jim. Before I begin on slide 10, our third quarter financial performance, as well as our expectations of continued growth and earning expansion going forward, enabled us to complete the refinancing of our credit facility this morning, which we announced with an 8-K and press release shortly before our call. The refinance facility is a three-year, $275 million revolving credit facility with a $150 million recording feature. The refinance facility has similar leverage and interest coverage ratio covenants as our current facility. Despite a more turbulent macroeconomic backdrop, we were able to achieve pricing that is only slightly higher than our current facility across the pricing grid. We were able to offset this slightly increased pricing with a slightly smaller overall facility and less fees associated with undrawn commitments. The complete credit facility detail can be found in the 8-K we issued this morning. This refinance facility extends our maturity date and provides the company with ample liquidity to continue to support our growth while also limiting total interest expense. Turning to slide 10, adjusted sales in the third quarter were approximately $237.2 million. Adjusted operating income was $7.3 million or 3.1% of adjusted sales, which was an increase of approximately 70 basis points from the prior quarter. Each of our segments performed well in the quarter, with Control Devices expanding operating margin by approximately 40 basis points over the second quarter and electronics expanding operating margin by 80 basis points over the prior quarter. I will provide additional detail on segment level performance on the subsequent slides. As Jim discussed earlier in the call, we are updating our full-year 2023 guidance ranges. Our implied fourth quarter guidance based on the mid points of our updated full-year ranges implies stable revenue performance quarter-to-quarter even after consideration of the…

Thank you so much, Matt. At this time, we will conduct the question-and-answer session. [Operator Instructions] I will be moving up our first speaker, and this is Justin Long from Stephens Institution. Okay, Justin, you are now good to ask your question. Q – Justin Long: Thanks and good morning. Maybe I'll start with one on the refinancing announcement that just hit. And I know you talked about that a little bit, Matt. And it sounds like the rates and covenants are fairly similar. But is there any additional color you can provide in interest expense expectations in the fourth quarter, and moving into next year? And can you comment on this refi being included in the guidance you just provided?

Yes, the refinance -- and thanks, Justin, thanks for the question. The refinance is included in the guidance we just provided. I wouldn't expect much incremental interest expense in the fourth quarter relative to prior expectations. The pricing grid for the refinancing is very similar, only slightly higher than our prior facility, which given the market is a really great outcome for the company. The covenants and all of the -- really all of the general terms and conditions are very similar to our existing facility. So, I would not expect much change this year. Going forward, because the pricing grid is only slightly higher than where we are now. We expect, obviously, with continued earnings expansion and that continued growth. I would expect that interest expense would at worst remain relatively stable to where we are now. With the opportunity to improve that as we as we improve cash flow, particularly focus on networking capital improvement and turning that into cash. And of course, the earnings power we expect next year. So, we're really excited to announce the refinancing. It allows us to really focus on the performance of the business going forward. Gives us plenty of liquidity to fund the growth that we need going forward, all while really limiting any incremental interest expense going forward here.

Okay, great. That's helpful. And then, maybe, Jim, I'll shift to you for my next question. I think one of the most impressive things about this quarter was the fact that revenue was down by a pretty substantial amount on a basis. But margins were up sequentially. So, as we look forward, how much of a remaining opportunity do you see from what I would define as self-help margin improvement? I know you're expecting revenue to get better next year, but let's play out a scenario where the macro deteriorates and revenues kind of more stable. How much additional runway do you see for margin expansion from things that you can control?

Well, first off, good morning, Justin. Thanks for the question. And let me just first start by summarizing how do we get here? And we had a very significant focus on material cost reduction. And as I've been saying for the last few months we've been very strongly focused on operational excellence. And that's both in the manufacturing plant as well as throughout all the supporting functions within the company upstream of the manufacturing plant. Not just efficiency, but also process and control in the organization. And so, we've made some great progress here. But I have to say that we've only gotten started, right? This is really the beginning of the journey here to drive continued excellence and continued improvement. So, there is certainly more to come from that perspective from inside of Stoneridge. And some of the margin expansion that we talked about today comes from a continuous application of those methodologies throughout the company. So, we're quite optimistic that we're going to see more from it.

Okay, great. And last one for me, I wanted to ask about MirrorEye. It was helpful to get the outlook or preliminary outlook for 2024. But could you share your base expectation for MirrorEye revenue in 2023? I think you had talked earlier this year about $60 million in revenue. I'm just curious if that's changed and then maybe you could give some color on the visibility you have to that ramp and MirrorEye next year as well?

Have we rejoined the conference?

Yes. We can hear loud and clear.

Well, I'm not sure if you caught my question, so I'll re-ask it and no problem at all. I was asking about the MirrorEye revenue contribution that you're expecting in 2023. I think you had previously guided for $60 million. I'm curious if that base number has changed. And then, as we move into next year, as you think about that incremental $30 million of revenue from MirrorEye, I wanted to ask about your visibility to that number. Thanks.

Yes. Thanks for the question, Justin, and again, sorry for the disconnection there. Yes. So, this year, obviously, the OEM program that we had originally in Europe has remained pretty strong. We talked about a little bit of a slower ramp up on the first North American program just as kind of the production ramp up and volume expectations continue to ramp up here as we head into the back half of the year. So, overall, OEM volume was a little bit lower this year than what we expected. And I would say kind of the same thing for retrofit, maybe a little bit lower than what we expected. That said, we have really good visibility, obviously, next year. Certainly as we've got a program launch in the middle of the year related to our largest program in Europe. And that OEM has already increased their expectations, their volume expectations. So, there's always variability, of course, in things that are take rate or option based. But between some incremental ramp up in the retrofit market as we continue to work with some of the largest fleets, as well as continued growth in the OEM market and the addition of that incremental very large program in the middle of the year, we've got pretty good visibility to pretty strong incremental MirrorEye revenue next year.

Okay, great. I'll leave it there. Thanks for the time.

Thanks, Justin.

Thanks, Justin, very much. Yes.

Okay. Thank you so much, Speaker and Justin. We appreciate it very much. I am showing no further questions at this time. I would now like to turn it back to -- one moment, please. I would like to turn it back to Jim Zizelman for closing remarks.

Thank you, everyone, for joining us for the call. I know your time is very important, and we really appreciate your willingness to engage with us today. In closing, I want to reiterate that we continue to deliver on our commitments by focusing on foundational improvements and strong execution, which led us once again to the results we outlined today. This is driven by an unwavering focus to both execute on a long-term strategy and drive continuous operational excellence, ultimately driving shareholder value as we continue to build on our strong strategic foundation. Thanks again.

Thank you for participating in today's conference. This does conclude the program. You may now disconnect.