Superior Industries(US:SUP)2024-11-07 21:05Financial Performance - Net loss for the three months ended September 30, 2024, was $24,753 thousand, compared to a loss of $86,317 thousand for the same period in 2023, representing a 71.3% improvement[4]. - Comprehensive loss for the nine months ended September 30, 2024, was $119,050 thousand, compared to a loss of $36,864 thousand for the same period in 2023, indicating a significant decline in performance[4]. - For the three months ended September 30, 2024, the net loss was $24,753 thousand, compared to a net loss of $86,317 thousand for the same period in 2023, indicating an improvement in performance[8]. - The company reported a net loss of $68,626 thousand for the nine months ended September 30, 2024, compared to a net loss of $90,431 thousand for the same period in 2023, showing a reduction in losses[9]. - Comprehensive loss for the three months ended September 30, 2024, was $46.3 million, compared to a loss of $104.4 million for the same period in 2023[4]. - Net income for the nine months ended September 30, 2024, was a loss of $68,626 thousand, an improvement from a loss of $90,431 thousand for the same period in 2023, representing a 24% reduction in losses[7]. - Net income attributable to common shareholders for the three months ended September 30, 2024 was a loss of $24.8 million, compared to a loss of $86.3 million for the same period in 2023[60]. Assets and Liabilities - Total current assets decreased to $322,608 thousand as of September 30, 2024, down from $459,929 thousand at December 31, 2023, reflecting a 29.8% reduction[5]. - Cash and cash equivalents dropped to $24,280 thousand at the end of the period, down from $201,606 thousand at the beginning of the period, a decline of 88.9%[5]. - Long-term debt decreased to $483,255 thousand as of September 30, 2024, from $610,632 thousand at December 31, 2023, a reduction of 20.8%[5]. - The total liabilities decreased from $1,030.6 million at the end of 2023 to $801.7 million as of September 30, 2024, a reduction of approximately 22.2%[5]. - The balance of retained earnings (deficit) at September 30, 2024, was $(279,227) thousand, compared to $(166,531) thousand at September 30, 2023, indicating a deeper deficit[10]. - The accumulated other comprehensive loss increased to $(72,715) thousand as of September 30, 2024, compared to $(22,291) thousand at December 31, 2023[5]. Cash Flow and Financing Activities - Net cash used in operating activities for the nine months ended September 30, 2024, was $7,857 thousand, compared to cash provided of $20,093 thousand for the same period in 2023[7]. - Cash flows from investing activities resulted in a net cash outflow of $20,985 thousand for the nine months ended September 30, 2024, compared to $33,930 thousand for the same period in 2023[7]. - Proceeds from the issuance of long-term debt amounted to $337,317 thousand during the nine months ended September 30, 2024[7]. - The company reported a significant loss on extinguishment of debt amounting to $13,052 thousand for the nine months ended September 30, 2024[7]. - The company reported cash paid for interest during the period was $46,507 thousand, up from $43,078 thousand in the previous year[7]. - The company recognized a $0.9 million loss on extinguishment of debt related to the redemption of €250 million Senior Notes during the three and nine months ended September 30, 2024[55]. Stock and Equity - The company issued 794,613 shares of common stock during the nine months ended September 30, 2024, contributing to an increase in common stock amount to $120,093 thousand[9]. - The total stockholders' equity at September 30, 2024, was $(231,849) thousand, a decrease from $(90,076) thousand at September 30, 2023[10]. - Preferred stock dividends paid-in-kind amounted to $3.4 million and $6.8 million for the three and nine months ended September 30, 2024, increasing the stated value of preferred stock to $156.8 million[57]. - The stated value of preferred stock increased to $156.8 million as of September 30, 2024, from $150.0 million as of December 31, 2023[57]. Operational Metrics - The company’s principal business involves the design and manufacture of aluminum wheels for OEMs in North America and Europe, with a diversified global customer base[13]. - North America segment net sales for the three months ended September 30, 2024, were $206,233 million, compared to $194,873 million in the same period of 2023, while Europe segment net sales decreased to $115,524 million from $128,204 million[31]. - Total sales for the nine months ended September 30, 2024, were $957 million, a decline of 11.06% compared to $1,076.646 million in the same period of 2023[32]. - The company recognized a net sales of $321.8 million for the three months ended September 30, 2024, a slight decrease of 0.1% compared to $323.1 million for the same period in 2023[31]. - North America sales for the nine months ended September 30, 2024, were $602.944 million, a decrease of 1.22% from $614.696 million in the same period of 2023[32]. - Europe sales for the nine months ended September 30, 2024, were $354.056 million, down 23.36% from $461.950 million in the same period of 2023[32]. Accounting and Compliance - The company is currently evaluating the effects of adopting new accounting standards related to segment reporting and income tax disclosures, which may impact future financial reporting[17]. - The company’s financial statements are prepared in accordance with U.S. GAAP and include all necessary adjustments for fair presentation[14]. - The effective income tax rate for the three months ended September 30, 2024 was (3.7)%, and for the nine months it was (53.6)%, primarily due to valuation allowances and a deferred tax charge of $17.8 million[61]. Restructuring and Workforce - The company expects to record a charge between $8.5 million to $10.5 million in Q4 2024 related to a restructuring plan aimed at aligning its cost structure with forecasted industry volumes[77]. - The company initiated a program in 2023 to reduce its global workforce, incurring restructuring charges of $0.1 million and $8.0 million for the three and nine months ended September 30, 2023[76]. - The company expects to continue implementing headcount reductions through early February 2025[77]. Derivative Instruments and Risk Management - The Company has entered into interest rate swaps to mitigate interest rate risk, exchanging floating for fixed-rate interest payments[21]. - The Company hedges a portion of its forecasted foreign currency exposure up to 48 months to mitigate risks associated with foreign currency exchange rates[20]. - The total derivative financial instruments amounted to $24,166 million as of September 30, 2024, up from $22,015 million on December 31, 2023[24]. - The notional amount of derivative financial instruments decreased to $655,929 million as of September 30, 2024, from $694,306 million on December 31, 2023[25].