Superior Industries(US:SUP)2024-05-02 20:00Financial Performance - Net sales for Q1 2024 were $316,276, a decrease of 16.9% compared to $380,966 in Q1 2023[10] - Gross profit for Q1 2024 was $21,146, down 38.8% from $34,578 in Q1 2023[10] - Net loss for Q1 2024 increased to $32,749, compared to a net loss of $4,047 in Q1 2023, representing a significant decline[12] - Loss per share for Q1 2024 was $(1.52), compared to $(0.49) in Q1 2023, indicating a worsening financial position[10] - The company reported a comprehensive loss of $27,378 for Q1 2024, compared to a comprehensive income of $28,704 in Q1 2023[12] - Superior Industries reported a net loss of $32.7 million for the three months ended March 31, 2024, compared to a net loss of $4.0 million for the same period in 2023[17] - Consolidated net sales for the three months ended March 31, 2024, were $316.3 million, a decrease of 16.9% compared to $381.0 million in the same period of 2023[42] - Net loss for Q1 2024 was $32.7 million, or a loss of $1.52 per diluted share, compared to a loss of $4.0 million, or $0.49 per diluted share in Q1 2023[133] - Adjusted EBITDA for Q1 2024 was $30.8 million, a decrease of 32.2% from $45.5 million in Q1 2023[127] - Selling, general and administrative expenses increased to $20.8 million in Q1 2024, up $1.4 million from Q1 2023, mainly due to restructuring costs[129] Assets and Liabilities - Total current assets as of March 31, 2024, were $473,499, an increase from $459,929 at the end of 2023[14] - Total liabilities as of March 31, 2024, were $1,128,419, compared to $1,116,511 at the end of 2023, reflecting a slight increase[14] - Total assets as of March 31, 2024, were $1,005.5 million, down from $1,030.6 million as of December 31, 2023, reflecting a decrease of 2.4%[41] - Total shareholders' deficit increased to $122,907 as of March 31, 2024, from $85,940 at the end of 2023, indicating deteriorating equity[14] - The company reported long-term debt of $605.0 million as of March 31, 2024, slightly down from $610.6 million at the end of 2023[48] - The total debt liabilities as of March 31, 2024, amount to $630.2 million, with significant maturities due in 2025 totaling $238.6 million and in 2028 totaling $380.0 million[65] Cash Flow - Cash and cash equivalents decreased to $191,071 from $201,606 at the end of 2023, a decline of 5.8%[15] - Net cash provided by operating activities for Q1 2024 was $3,470, a significant drop from $38,738 in Q1 2023[15] - Net cash provided by operating activities decreased to $3.5 million for Q1 2024 from $38.7 million in Q1 2023, primarily due to a $28.7 million higher net loss[148] - Net cash used in investing activities was $6.6 million for Q1 2024, down from $15.6 million in Q1 2023, attributed to lower capital expenditures[149] Sales and Market Performance - North America net sales decreased to $10.3 million in Q1 2024 from $9.0 million in Q1 2023, while Europe sales decreased from $13.8 million to $11.6 million[42] - Net sales for North America decreased to $193,508 thousand in Q1 2024 from $211,618 thousand in Q1 2023, while Europe saw a decline from $169,348 thousand to $122,768 thousand[40] - North American net sales decreased by 8.6% to $193.5 million, while European net sales decreased by 27.5% to $122.8 million in Q1 2024[135][136] - Superior Industries reported a 6.1% year-over-year decline in unit shipments in Q1 2024, with a 17.4% decrease in Europe and a 2.5% increase in North America[117] - The company's sales to GM, Ford, VW Group, and Toyota accounted for 23%, 16%, 12%, and 10% of consolidated sales respectively for Q1 2024[112] Employment and Operations - The company employed approximately 6,800 full-time employees across seven manufacturing facilities in North America and Europe[18] - The company has a diversified global customer base, including North American, European, and Asian OEMs[18] - The company’s property, plant, and equipment, net, decreased to $386.3 million as of March 31, 2024, from $398.6 million at the end of 2023, a decline of 3.1%[44] Accounting and Compliance - The company is evaluating the impact of new accounting standards related to segment reporting and income taxes, effective for fiscal years beginning after December 15, 2023[23][25] - The effective income tax rate for the three months ended March 31, 2024, was (103.4)%, primarily due to valuation allowances and a tax charge impacting deferred tax assets related to tax restructuring of $17.8 million[77] Restructuring and Legal Matters - The Company incurred $9.1 million in restructuring costs in Q1 2024, primarily advisory fees[154] - The company recognized a provision of $1.5 million related to a potential loss from an ongoing legal dispute with its energy distributor[100] - The company is involved in various legal and environmental proceedings, but believes that all such matters are adequately provided for and would not materially adversely affect its financial position[95] Other Financial Metrics - The company reported stock-based compensation of $584,000 for the three months ended March 31, 2024[17] - Stock-based compensation expense for the three months ended March 31, 2024, was $1.7 million, up from $0.8 million in the same period of 2023[93] - The cumulative premium accretion for the redeemable preferred stock as of March 31, 2024, was $119.5 million, resulting in adjusted redeemable preferred stock balances of $255.0 million[72]