Superior Industries(US:SUP)2024-08-08 20:05Financial Performance - Net income for the three months ended June 30, 2024, was a loss of $11,124 thousand, compared to a loss of $67 thousand for the same period in 2023[4] - Comprehensive loss for the six months ended June 30, 2024, was $72,722 thousand, compared to a comprehensive income of $67,523 thousand for the same period in 2023[4] - For the three months ended June 30, 2024, the net loss was $11,124 thousand, compared to a net loss of $67 thousand for the same period in 2023[8][10] - For the six months ended June 30, 2024, the net loss was $43.873 million compared to a loss of $4.114 million for the same period in 2023, indicating a significant decline in performance[7] - Basic earnings (loss) per share for the three months ended June 30, 2024, was $(0.75), a decrease from $(0.35) in the prior year[45] Assets and Liabilities - Total assets decreased to $953,802 thousand as of June 30, 2024, from $1,030,571 thousand as of December 31, 2023[5] - Current liabilities increased significantly to $441,840 thousand as of June 30, 2024, compared to $198,911 thousand as of December 31, 2023[6] - Total liabilities, mezzanine equity, and shareholders' equity (deficit) amounted to $953.802 million as of June 30, 2024, down from $1.030 billion at December 31, 2023[6] - The total shareholders' equity deficit was $176.446 million at June 30, 2024, compared to a deficit of $85.940 million at December 31, 2023[6] Cash Flow - Cash and cash equivalents at the end of the period were $172,262 thousand, down from $201,606 thousand at the beginning of the period[7] - Net cash used by operating activities for the six months ended June 30, 2024, was $(4,544) thousand, compared to $11,167 thousand for the same period in 2023[7] - Cash and cash equivalents decreased from $201.6 million as of December 31, 2023, to $172.3 million as of June 30, 2024[5] Receivables and Inventories - Accounts receivable increased to $79,016 thousand as of June 30, 2024, from $56,393 thousand as of December 31, 2023[5] - Customer receivables increased to $65,267 thousand as of June 30, 2024, up from $41,879 thousand on December 31, 2023, representing a change of $23,388 thousand[15] - The company’s inventories increased slightly from $144.6 million as of December 31, 2023, to $147.4 million as of June 30, 2024[5] Debt and Financing - As of June 30, 2024, the long-term debt amounted to $371.693 million, down from $610.632 million as of December 31, 2023[33] - The company has $51.6 million available in unused commitments under the Revolving Credit Facility as of June 30, 2024[37] - The company has initiated discussions to refinance its existing debt, including €250 million of 6.00% Senior Notes due June 15, 2025[35] - Debt maturities for the next five years total $627.308 million, with $236.734 million due in 2025[41] Stock and Equity - Common stock issued for the six months ended June 30, 2024, was 794,613 shares, while for the three months ended June 30, 2024, it was 285,901 shares[9][15] - The total number of shares outstanding increased from 28,600,152 as of April 1, 2024, to 28,886,053 as of June 30, 2024[8][9] - Preferred stock dividends for the three months ended June 30, 2024, were paid-in-kind, increasing the stated value of preferred stock by $3.4 million[40] Expenses - The company reported a depreciation and amortization expense of $43,834 thousand for the six months ended June 30, 2024[7] - Stock-based compensation for the three months ended June 30, 2024, was $2,158 thousand, while for the six months ended June 30, 2024, it was $2,742 thousand[8][9] - The company recognized stock compensation expense of $2,367 thousand for the three months ended June 30, 2024, compared to $2,203 thousand for the same period in 2023[53] Sales Performance - The Company reported North America net sales of $203.2 million for the three months ended June 30, 2024, a decrease of 2.4% from $208.2 million in the same period of 2023[27] - Europe net sales for the three months ended June 30, 2024, were $115.8 million, down 29.5% from $164.4 million in the prior year[27] - Total sales for the six months ended June 30, 2024, were $635,243 million, a decline of 15.7% compared to $753,569 million in the prior year[28] Derivatives and Risk Management - The Company hedges a portion of its forecasted foreign currency exposure up to 48 months to mitigate risks associated with foreign currency exchange rates[17] - The Company has entered into interest rate swaps to reduce interest rate volatility, as its borrowings are under variable rates[18] - The company is exposed to market risks including foreign currency exchange rates, interest rates, and commodity prices, and uses derivatives to mitigate these risks[16][19] Legal and Restructuring - A restructuring charge of $1.0 million was incurred during the three months ended June 30, 2024, related to the restructuring of the European business[58] - The company recognized a provision of $1.5 million for potential losses related to ongoing legal proceedings as of August 2023[56] Accounting and Compliance - The company is evaluating the effects of adopting new accounting standards related to segment reporting and income taxes, which are effective for fiscal years beginning after December 15, 2023[14] - The company will continue to assess the potential effects of the Pillar Two global minimum tax of 15% effective January 1, 2024, on its operations[46] - The company was in compliance with all covenants under the Credit Agreements as of June 30, 2024[39]