Superior Industries(US:SUP)2025-12-19 21:05Financial Performance - Net sales for the three months ended September 30, 2025, were $178.2 million, a decrease from $321.8 million in the same period of 2024, representing a decline of approximately 44.5%[10] - Gross profit for the three months ended September 30, 2025, was a loss of $29.2 million, compared to a profit of $28.6 million in the same period of 2024[10] - Net income for the nine months ended September 30, 2025, was a loss of $279.0 million, significantly higher than a loss of $68.6 million in the same period of 2024[14] - The company reported a basic and diluted earnings per share of $(3.03) for the three months ended September 30, 2025, compared to $(1.24) for the same period in 2024[10] - The company reported a comprehensive loss of $87.83 million for the three months ended September 30, 2025, compared to a loss of $46.33 million in the same period of 2024[11] - For the three months ended September 30, 2025, Superior Industries reported a net loss of $84.989 million, compared to a net loss of $24.753 million for the same period in 2024, indicating a significant decline in performance[15][16] - Net loss for the nine months ended September 30, 2025, was $279.0 million, compared to a net loss of $68.6 million in 2024, indicating a significant increase in losses[167] Assets and Liabilities - Total assets decreased to $591.97 million as of September 30, 2025, down from $740.13 million as of December 31, 2024[13] - Current liabilities increased significantly to $762.12 million as of September 30, 2025, compared to $195.93 million as of December 31, 2024[13] - The total shareholders' equity decreased to $(548.251) million as of September 30, 2025, from $(231.849) million a year earlier, reflecting a worsening financial position[15][16] - The company’s total liabilities and equity as of September 30, 2025, were reported at $1.1 billion, reflecting the impact of the merger and changes in equity structure[19] - The Company’s total debt liabilities due in the next five years amount to $662.2 million, with a weighted average interest rate of 12.3% as of September 30, 2025[59] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $60.62 million, an increase from $40.11 million at the beginning of the period[14] - The company experienced a net cash used by operating activities of $72.07 million for the nine months ended September 30, 2025, compared to $7.86 million for the same period in 2024[14] - The company does not expect to have sufficient liquidity to meet financial obligations over the next twelve months, raising substantial doubt about its ability to continue as a going concern[28] - As of September 30, 2025, total available liquidity was $31.1 million, after accounting for various restrictions and obligations[179] Impairments and Charges - The company incurred impairment of long-lived assets amounting to $66.91 million for the nine months ended September 30, 2025[14] - The Company recognized a non-cash impairment charge of $66.9 million to property, plant, and equipment in Q2 2025 due to impairment triggers in the North America asset group[47] - The Company recognized a provision of $1.5 million related to a legal claim from its energy distributor's parent company, indicating a probable adverse judgment[110] Shareholder Actions and Stock - The company issued 7.6 million shares during the three months ended September 30, 2025, resulting in an increase in common stock amounting to $684 thousand[15] - Preferred stock dividends of $7.8 million were paid-in-kind during the nine months ended September 30, 2025, increasing the stated value of preferred stock to $167.9 million[79] - The redemption value of the redeemable preferred stock as of September 30, 2025, would be equivalent to $335.8 million[81] Mergers and Acquisitions - Superior Industries completed a merger on December 8, 2025, with SUP Parent Holdings, LLC, which involved the conversion of common shares into cash and limited liability company interests[19][20] - Following the merger completed on December 8, 2025, certain financial covenants were removed or waived until June 30, 2026, with a minimum liquidity threshold set at $10 million[27] - The Company entered into an Exchange Agreement on December 8, 2025, resulting in the exchange of rights under certain loan claims for a portion of Take Back Term Loans[60] Operational Performance - The North America segment reported a loss from operations of $49.0 million for the three months ended September 30, 2025, compared to a profit of $13.9 million in the same period of 2024[49] - The North American segment reported net sales of $371.1 million for the first nine months of 2025, a decrease of 38.5% compared to $602.9 million in 2024[169] - The European segment's net sales decreased by 4.9% to $336.6 million for the first nine months of 2025, primarily due to lower volumes and product mix[171] Customer and Market Dynamics - In Q2 2025, certain North American customers accounted for approximately 33% of projected consolidated net sales, down from 40% in 2024 and 36% in 2023, leading to a significant impact on cash generation[26] - For the three months ended September 30, 2025, GM accounted for 0% of total sales, while Toyota represented 27%, and VW Group accounted for 26%[119] - The Company’s aluminum wheels are primarily sold to OEMs for factory installation on new light vehicles, with demand driven by production levels in North America and Europe[117] Legal and Regulatory Matters - The company is currently cooperating with an investigation by the German Federal Cartel Office regarding competition restrictions, with potential fines or civil proceedings pending[107] Other Financial Metrics - The effective income tax rate for the three months ended September 30, 2025, was (6.1)%, compared to (3.7)% for the same period in 2024[92][93] - Total lease expense for the three months ended September 30, 2025, was $1.017 million, an increase from $958,000 in the same period in 2024[97] - The Company recorded a total stock-based compensation expense of $503,000 for the three months ended September 30, 2025[103]