Superior Industries International Inc (SUP) Q3 2024 Earnings Call Highlights: Navigating ...

In This Article:

  • Net Sales: Nearly flat at $322 million compared to $323 million in the prior year period.

  • Value Added Sales: Decreased to $171 million from $176 million in the prior year period.

  • Adjusted EBITDA: Increased to $41 million with a margin of 24% compared to 22% in the prior year period.

  • Net Loss: $25 million, an improvement driven by the deconsolidation loss recorded in Q3 2023.

  • Total Debt: Reduced by $117 million, with new debt maturities extended to 2028.

  • Unlevered Free Cash Flow: $9 million, a decrease of $3 million compared to the prior year period.

  • Capital Expenditures: $6 million compared to $8 million in the prior year period.

  • Full Year 2024 Net Sales Outlook: Revised to $1.25 to $1.33 billion.

  • Full Year 2024 Adjusted EBITDA Outlook: Revised to $146 to $154 million.

  • Full Year 2024 Unlevered Free Cash Flow Outlook: Revised to $50 to $80 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Superior Industries International Inc (NYSE:SUP) achieved a major milestone by refinancing its debt, attracting $520 million in new capital and extending debt maturities to 2028.

  • The company reduced its total debt by $117 million, significantly strengthening its balance sheet and competitive standing.

  • Adjusted EBITDA increased by 6% year over year, with margins expanding by 200 basis points sequentially and year over year.

  • Superior Industries International Inc (NYSE:SUP) has successfully negotiated recurring price increases with customers to recover inflationary costs, which are now reflected in more contracts going into 2025.

  • The company has made progress in its European transformation, achieving sustained margin improvements despite lower production volumes.

Negative Points

  • Value-added sales, adjusted for foreign exchange and deconsolidations, declined 2% year over year, underperforming industry production, which was down 6%.

  • The company is facing a challenging demand environment, with industry production expected to decline by 6% in the second half of the year.

  • Superior Industries International Inc (NYSE:SUP) is lowering its full-year 2024 financial guidance due to lower anticipated production volumes and challenging OEM production environments.

  • The company is targeting a 15% reduction in G&A and manufacturing overhead, resulting in a restructuring charge of approximately $9.5 million in the fourth quarter.

  • Despite improvements, the company has not yet reached full utilization of its Polish operations, which is necessary to achieve its $190 million adjusted EBITDA run rate.

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