Superior Industries International, Inc. (“Superior” or the “Company”) (NYSE) today announced its financial results for the third quarter ended September 30, 2024.
Key Financial Highlights
(in millions)
| 3Q 2024 | 3Q 2023 | YTD 2024 | YTD 2023 | |
|---|---|---|---|---|
| Net Sales | ||||
| North America | $206.2 | $194.9 | $602.9 | $614.7 |
| Europe | $115.5 | $128.2 | $354.1 | $462.0 |
| Global | $321.8 | $323.1 | $957.0 | $1,076.6 |
| Value-Added Sales | ||||
| North America | $104.7 | $100.1 | $313.5 | $310.3 |
| Europe | $66.3 | $75.9 | $210.0 | $268.6 |
| Global | $171.0 | $176.0 | $523.5 | $578.9 |
Third Quarter 2024 Performance
- Net Sales for Q3 2024 were $322 million, slightly down from $323 million in Q3 2023.
- Value-Added Sales adjusted for foreign exchange and deconsolidation were $170 million, down from $173 million in Q3 2023.
- Gross Profit increased to $29 million from $25 million in the prior year, driven by lower conversion costs.
- SG&A Expenses rose to $24 million, primarily due to professional service fees related to refinancing and restructuring costs in Europe.
- Income from Operations was $5 million, compared to a loss of $71 million in Q3 2023, which included an $80 million charge related to the deconsolidation of the German subsidiary.
- Loss on Extinguishment of Debt for Q3 2024 amounted to $13 million as a result of the debt refinancing.
- Net Loss for Q3 2024 was $25 million, or a loss of $1.24 per diluted share, improving from a net loss of $86 million, or a loss of $3.42 per share, in the prior year period.
Adjusted EBITDA (a non-GAAP measure) was $41 million, or 24% of Value-Added Sales, compared to $39 million, or 22% of Value-Added Sales, in Q3 2023, driven by favorable conversion costs.
Cash Flow and Financial Position
- Operating Activities for Q3 2024 resulted in a cash outflow of $3 million, compared to a positive cash flow of $9 million in Q3 2023. This decrease was primarily due to refinancing fees and higher investments in working capital.
- Free Cash Flow was negative $9 million, worsening from negative $3 million in Q3 2023.
- Unlevered Free Cash Flow for the quarter was $9 million, a decrease of $3 million compared to the same period last year.
As of September 30, 2024, Superior’s Total Debt stood at $521 million, with Net Debt at $497 million, compared to $630 million and $453 million, respectively, at the same time in 2023.
Full-Year 2024 Outlook
Superior has revised its full-year 2024 outlook to reflect weaker-than-expected production volumes and aluminum costs:
- Net Sales are now expected to range between $1.25 billion and $1.33 billion.
- Value-Added Sales are expected between $680 million and $700 million.
- Adjusted EBITDA is forecasted to be between $146 million and $154 million.
- Unlevered Free Cash Flow is anticipated to be between $50 million and $80 million.
- Capital Expenditures are expected to be approximately $35 million.
The company has adjusted its estimates for Net Sales, Value-Added Sales, and Adjusted EBITDA, based on lower production volumes and aluminum costs. Capital expenditure expectations have also been reduced as the company continues to optimize its capital expenditures while balancing financial flexibility.
