Strong cash flow during the quarter supported
sizeable debt principal reduction
Second Quarter 2019 Highlights:
- Strengthening the capital structure through principal
reduction(1) of $26.1 million in the quarter supported by strong
cash flow
- Net sales of $352.5 million, $36.5 million lower than the
prior year period driven by volume, foreign exchange, and lower
aluminum prices
- North America and Europe(2) combined industry production
down 5.0%; Superior Value-Added Sales(3) down 5.3%, or 2.1%
excluding the impacts of foreign exchange
- Favorable shift in mix supported content or Value-Added
Sales(3) per wheel growth of 11.2% excluding the impacts of foreign
exchange
- Net income of $7.3 million, $0.8 million lower than the
prior year period
- Adjusted EBITDA(3) of $49.2 million, $8.0 million lower than
prior year period due to volumes and higher energy prices,
partially offset by mix and cost improvements
- Revising full year 2019 outlook
Superior Industries International, Inc. (NYSE:SUP), one
of the world’s leading aluminum wheel suppliers for OEMs and the
European aftermarket, today reported financial results for the
second quarter ended June 30, 2019.
Three Months Six Months 2Q 2019 2Q
2018 YTD 2019 YTD 2018 Units North America
2,489
2,957
5,113
5,991
Europe
2,401
2,596
4,816
5,099
Global
4,890
5,553
9,929
11,090
Net Sales North America
$ 180.4
$ 204.8
$ 365.5
$ 408.9
Europe
172.1
184.2
344.7
366.5
Global
$ 352.5
$ 389.0
$ 710.2
$ 775.4
Value-Added Sales (3) North America
$ 87.2
$ 99.3
$ 176.6
$ 201.8
Europe
106.4
105.1
209.8
210.0
Global
$ 193.6
$ 204.4
$ 386.4
$ 411.8
“Superior faced a challenging quarter with industry production
levels in both North America and Europe down significantly from the
peak levels reached in recent years, which contributed to
year-over-year volume declines in our business, impacting our
profitability. Despite the volume challenges, we saw a continued
shift to larger diameter wheels and premium finishes by our
customers, in line with the company’s strategy, which delivered a
significant 11.2%(4), year-over-year increase in Value-Added
Sales(3) per wheel. This improvement offset a large portion of the
volume declines,” commented Majdi Abulaban, Chief Executive Officer
of Superior.
Mr. Abulaban continued, “In light of the persistent volume
weakness, we are taking action to right size costs, including
aligning our production capacity, and managing working capital and
capital investments in the current environment. As a result of
these actions, we have reduced production schedules in certain
facilities and realized an improvement in working capital and cash
flow, which supported sizeable debt principal reductions in the
second quarter. In fact, these debt reductions are the first
proactive payments the company has made against its debt since
acquiring the European operations more than two years ago. Looking
to the second half of 2019, we are updating our outlook ranges to
reflect the persistent challenging macro production environment.
However, we are confident that the initiatives we are implementing,
including reducing capital expenditures, will further enhance cash
generation for continued debt paydown in 2019.”
Second Quarter Results
Wheel unit shipments were 4.9 million for the second quarter of
2019 compared to unit shipments of 5.6 million in the prior year
period, a decrease of 11.9%. The decrease occurred in both our
North American and European operations and was driven by softer
industry production levels, lower production at our key customers,
reduced take rates and share in North America, and lower
aftermarket volume in Europe, partially offset by increased OEM
share in Europe.
Net sales for the second quarter of 2019 were $352.5 million,
compared to net sales of $389.0 million for the same period in
2018. The reduction in sales is primarily driven by reduced
volumes, lower aluminum prices and a weaker Euro, partially offset
by improved product mix comprised of larger diameter wheels and
premium finishes in both regions.
Value-Added Sales, a non-GAAP measure as defined and reconciled
to net sales below, were $193.6 million for the second quarter of
2019, a 5.3% decrease compared to the prior year period.
Value-Added Sales were impacted by lower shipments and a weaker
Euro. Partially offsetting this decline was the ongoing benefit
from the shift to higher content wheels with premium finishes and
larger diameters, which, excluding the impact of foreign exchange,
resulted in an increase in Value-Added Sales per wheel of 11.2%
year-over-year.
Gross profit for the second quarter of 2019 was $40.0 million
compared to $53.6 million in the prior year period. The decrease
was primarily due to lower shipments, lower production, higher
energy costs, higher outside service provider costs, and the
alignment of reporting for selling, general, and administrative
(“SG&A”) expenses between our North American and European
operations, which resulted in higher cost of goods sold and lower
SG&A expenses by approximately $3.0 million. These items were
partially offset by improved mix and procurement savings.
SG&A expenses for the second quarter of 2019 were $16.0
million, or 4.5% of net sales, compared to $22.3 million in the
prior year period. The decrease is primarily due to a reduction in
acquisition and integration expenses, the previously mentioned
alignment of reporting for SG&A, and actions to align costs
with current industry production levels.
Income from operations for the second quarter of 2019 was $24.0
million, compared to $31.3 million in the prior year period.
The income tax provision for the quarter ended June 30, 2019 was
$7.5 million on pre-tax income of $14.8 million, representing an
effective income tax rate of 50.9%. The tax provision amount is
primarily due to the effects of U.S. taxation of foreign earnings
under Global Intangible Low-Tax Income (“GILTI”) provisions of tax
reform, and a forecasted valuation allowance on non-deductible
interest, partially offset by a benefit due to the mix of earnings
among tax jurisdictions. The income tax provision for the quarter
ended June 30, 2018 was $4.8 million on pre-tax income of $12.9
million, representing an effective income tax rate of 37.1%.
Net income for the second quarter of 2019 was $7.3 million, or a
loss of $0.04 per diluted share, including non-recurring income of
$0.02 per diluted share, compared to $8.1 million, or a loss of
$0.02 per diluted share in the prior year period. See attached
pages for reconciliation from net income to diluted earnings per
share.
Adjusted EBITDA, a non-GAAP measure as defined and reconciled to
net income below, was $49.2 million for the second quarter of 2019
compared to $57.2 million in the prior year period. The decrease in
Adjusted EBITDA was primarily driven by the lower gross profit
previously described.
Net cash provided by operating activities was $40.9 million for
the second quarter of 2019 compared to $16.4 million in the prior
year period. The increase was mainly due to improved working
capital management during the quarter compared to the prior year
period.
Net cash used for investing activities was $7.1 million for the
second quarter of 2019 compared to a use of cash of $15.4 million
in the prior year period. Cash used for capital expenditures during
the second quarter of 2019 totaled $15.3 million, which was
partially offset by the sale of other assets for proceeds of $8.2
million.
During the quarter, Superior paid dividends of $6.8 million.
Also, during the quarter, Superior repurchased €20.0 million ($22.4
million) face value of its 6% senior notes on the open market for
€17.4 million ($19.4 million), resulting in a net gain of $2.4
million, which is included in other income and which has been
deducted to arrive at Adjusted EBITDA. The bond repurchases and
other debt payments resulted in a $26.1 million reduction in debt
principal during the quarter.
Capital Structure and Liquidity
During the quarter Superior increased availability under its
European revolving credit facility from €30.0 million to €45.0
million and extended the maturity from July 2020 to May 2022.
Total funded debt and net debt at June 30, 2019 were $657.9
million and $601.0 million, respectively. Cash and available
amounts under revolving credit facilities totaled $264.2 million at
the end of the quarter.
Year-to-Date Results
Wheel unit shipments were 9.9 million for the first half of 2019
compared to unit shipments of 11.1 million in the prior year
period. The decrease occurred in both our North American and
European operations and was driven by softer industry production
levels, lower production at our key customers, reduced take rates
and share in North America, and lower aftermarket volume in Europe,
partially offset by increased OEM share in Europe.
Net sales for the first half of 2019 were $710.2 million,
compared to net sales of $775.4 million for the same period in
2018. The reduction in sales is primarily driven by reduced
volumes, lower aluminum prices and a weaker Euro, partially offset
by improved product mix comprised of larger diameter wheels and
premium finishes in both regions.
Value-Added Sales, a non-GAAP measure as defined and reconciled
to net sales below, were $386.4 million for the first half of 2019.
Excluding the impact of foreign exchange, Value-Added Sales per
wheel increased by 8.9% year-over-year.
Gross profit for the first half of 2019 was $73.1 million
compared to $103.6 million in the prior year period. The decrease
was primarily due to lower shipments, lower production, higher
energy costs, higher outside service provider costs, and the
alignment of reporting for SG&A expenses between our North
American and European operations, which resulted in higher cost of
goods sold and lower SG&A expenses by approximately $7 million.
These items were partially offset by improved mix and procurement
savings.
SG&A expenses for the first half of 2019 were $30.4 million,
or 4.3% of net sales, compared to $44.6 million in the prior year
period. The decrease is primarily due to a reduction in acquisition
and integration expenses, the alignment of reporting for SG&A,
and actions to align costs with current industry production
levels.
Income from operations for the first half of 2019 was $42.7
million, compared to $58.9 million in the prior year period.
The income tax provision for first half of 2019 was $12.5
million on pre-tax income of $21.7 million, representing an
effective income tax rate of 57.5%. The tax provision was driven by
the previously mentioned impacts to the second quarter. The income
tax provision for the first half of 2018 was $8.2 million on
pre-tax income of $26.6 million, representing an effective income
tax rate of 30.7%.
Net income for the first half of 2019 was $9.2 million, or a
loss of $0.27 per diluted share, compared to $18.4 million, or
income of $0.05 per diluted share in the prior year period. See
attached pages for reconciliation from net income to diluted
earnings per share.
Adjusted EBITDA, a non-GAAP measure as defined and reconciled to
net income below, was $92.4 million for the first half of 2019
compared to $109.4 million in the prior year period. The decrease
in Adjusted EBITDA was primarily driven by the lower gross profit
previously described.
Net cash provided by operating activities was $69.6 million for
the first half of 2019 compared to $30.8 million in the prior year
period. The increase was mainly due to improved working capital
management.
Net cash used for investing activities was $19.0 million for the
first half of 2019 including capital expenditures of $28.7 million,
partially offset by the previously mentioned asset sale.
During the first half of 2019, Superior paid total dividends of
$12.9 million, purchased $1.4 million in shares from minority
shareholders of Superior Industries Europe AG, and as described
previously, repurchased €20.0 million ($22.4 million) face value of
its 6% senior notes and repaid other debt.
2019 Outlook
Superior revises its previously issued full year 2019 outlook as
follows:
- Net sales now expected to be $1.39 billion to $1.44 billion,
driven by unit shipments of 19.5 million to 19.9 million, which
compares to the previous outlook for net sales of $1.42 billion to
$1.47 billion and unit shipments of 19.85 million to 20.30
million
- Value-Added Sales now expected to be $755 million to $795
million, which compares to the previous outlook of $765 million to
$805 million
- Adjusted EBITDA now expected to be $165 million to $180
million, which compares to the previous outlook of $170 million to
$185 million
- Cash flow from operations is still expected to be $125 million
to $145 million
- Capital expenditures now expected to be approximately $75
million, which compares to the previous outlook of $85 million
Value-Added Sales and Adjusted EBITDA are non-GAAP measures as
defined below. In reliance on the safe harbor provided under
section 10(e) or Regulation S-K, Superior has not quantitatively
reconciled differences between Adjusted EBITDA presented in the
2019 outlook to net income, the most comparable GAAP measure, as
Superior is unable to quantify certain amounts included in net
income without unreasonable efforts and due to the inherent
uncertainty regarding such variables. Superior also believes that
such reconciliation would imply a degree of precision that could
potentially be confusing or misleading to investors. However, the
magnitude of these amounts may be significant.
Conference Call
Superior will host a conference call beginning at 8:30 AM ET on
Thursday, August 8, 2019. The conference call may be accessed by
dialing 800-353-6461 for participants in the U.S./Canada or +1
334-323-0501 for participants outside the U.S./Canada using the
required conference ID 6425812. The live conference call can also
be accessed by logging into Superior’s website at www.supind.com or
by clicking this link: earnings webcast link. A replay of the
webcast will be available on Superior’s website immediately
following the conclusion of the call.
During the conference call, management plans to review operating
results and discuss other financial and operating matters. In
addition, management may disclose material information in response
to questions posed by participants during the call.
About Superior
Superior is one of the world’s leading aluminum wheel suppliers.
Superior’s team collaborates and partners with customers to design,
engineer, and manufacture a wide variety of innovative and
high-quality products utilizing the latest lightweighting and
finishing technologies. Superior also maintains leading aftermarket
brands ATS®, RIAL®, ALUTEC®, and ANZIO®. Headquartered in
Southfield, Michigan, Superior is listed on the New York Stock
Exchange and is a component of Standard & Poor’s Small Cap 600
index. For more information, please visit www.supind.com.
Non-GAAP Financial Information
In addition to the results reported in accordance with GAAP
included throughout this earnings release, this release refers to
“Adjusted EBITDA,” which Superior has defined as earnings before
interest income and expense, income taxes, depreciation,
amortization, restructuring charges and other closure costs,
impairments of long-lived assets and investments, changes in fair
value of redeemable preferred stock embedded derivative liability,
acquisition and integration costs, certain hiring and separation
related costs, gains associated with early debt extinguishment and
accounts receivable factoring fees. This release also refers to
“Value-Added Sales,” which Superior defines as net sales less the
value of aluminum and services provided by outsourced service
providers that are included in net sales. For reconciliations of
these non-GAAP measures to the most directly comparable GAAP
measure, see the attached supplemental data pages.
Management believes these non-GAAP measures are useful to
management and may be useful to investors in their analysis of
Superior’s financial position and results of operations. Further,
management uses these non-GAAP financial measures for planning and
forecasting purposes. This non-GAAP financial information is
provided as additional information for investors and is not in
accordance with or an alternative to GAAP and may be different from
similar measures used by other companies.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all
statements that do not relate solely to historical or current facts
and can generally be identified by the use of future dates or words
such as "may," "should," "could," “will,” "expects," "seeks to,"
"anticipates," "plans," "believes," "estimates," "intends,"
"predicts," "projects," "potential" or "continue" or the negative
of such terms and other comparable terminology. These statements
also include, but are not limited to, the 2019 outlook included
herein, Superior’s strategic and operational initiatives, product
mix and overall cost improvement and are based on current
expectations, estimates, and projections about Superior's business
based, in part, on assumptions made by management. These statements
are not guarantees of future performance and involve risks,
uncertainties, and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements
due to numerous factors, risks, and uncertainties discussed in
Superior's Securities and Exchange Commission filings and reports,
including Superior's Annual Report on Form 10-K for the year-ended
December 31, 2018, and other reports from time to time filed with
the Securities and Exchange Commission. You are cautioned not to
unduly rely on such forward-looking statements when evaluating the
information presented in this press release. Such forward-looking
statements speak only as of the date on which they are made, and
Superior does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this release.
SUPERIOR INDUSTRIES
INTERNATIONAL, INC.
Condensed Consolidated
Statements of Operations (Unaudited)
(Dollars in Millions, Except
Per Share Amounts)
Three Months
Six Months
2Q 2019
2Q 2018
YTD 2019
YTD 2018
Net Sales
$
352.5
$
389.0
$
710.2
$
775.4
Cost of Sales
312.5
335.4
637.1
671.8
Gross Profit
$
40.0
$
53.6
$
73.1
$
103.6
SG&A
16.0
22.3
30.4
44.6
Income From Operations
$
24.0
$
31.3
$
42.7
$
58.9
Interest Expense, net
(11.9
)
(13.2
)
(23.7
)
(25.0
)
Other Income (Expense), net
2.6
(0.6
)
2.0
(3.6
)
Change in Fair Value of Preferred Derivative
0.1
(4.6
)
0.7
(3.7
)
Income Before Income Taxes
$
14.8
$
12.9
$
21.7
$
26.6
Income Tax Provision
(7.5
)
(4.8
)
(12.5
)
(8.2
)
Net Income
$
7.3
$
8.1
$
9.2
$
18.4
(Loss) Earnings Per Share: Basic
$
(0.04
)
$
(0.02
)
$
(0.27
)
$
0.05
Diluted
$
(0.04
)
$
(0.02
)
$
(0.27
)
$
0.05
Weighted Average and Equivalent SharesOutstanding for EPS
(in Thousands): Basic
25,106
25,001
25,070
24,969
Diluted
25,106
25,001
25,070
25,008
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in Millions) 6/30/2019
12/31/2018 Current Assets
$
383.8
$
370.4
Property, Plant and Equipment, net
538.7
532.8
Intangibles and Other Assets
545.4
548.4
Total Assets
$
1,467.9
$
1,451.6
Current Liabilities
$
202.5
$
178.5
Long-Term Liabilities
729.7
741.5
Redeemable Preferred Shares
152.5
144.5
European Noncontrolling Redeemable Equity
12.0
13.8
Shareholders’ Equity
371.2
373.3
Total Liabilities and Shareholders’ Equity
$
1,467.9
$
1,451.6
SUPERIOR INDUSTRIES INTERNATIONAL, INC. Consolidated
Statements of Cash Flows (Unaudited) (Dollars in
Millions)
Three Months
Six Months
2Q 2019
2Q 2018
YTD 2019
YTD 2018
Net income
$
7.3
$
8.1
$
9.2
$
18.4
Depreciation and Amortization
23.3
24.0
46.7
48.3
Income tax, Non-cash changes
3.3
15.4
1.6
7.0
Stock-based Compensation
1.4
1.0
1.9
1.7
Debt Amortization
1.5
0.9
2.5
1.9
Other Non-cash items
(3.9
)
1.0
(1.6
)
2.0
Changes in Operating Assets and Liabilities:
-
-
-
Accounts Receivable
8.7
11.1
(22.5
)
(22.1
)
Inventories
(10.1
)
(9.9
)
(2.7
)
(16.2
)
Other Assets and Liabilities
2.9
(10.6
)
12.6
(7.6
)
Accounts Payable
5.4
(14.9
)
10.7
(2.3
)
Income Taxes
1.2
(9.7
)
11.4
(0.3
)
Cash Flow Provided by Operating Activities
$
40.9
$
16.4
$
69.6
$
30.8
Capital Expenditures
(15.3
)
(15.3
)
(28.7
)
(38.0
)
Other Investing Activities
8.2
(0.1
)
9.6
(0.1
)
Cash Flow Used by Investing Activities
($
7.1
)
($
15.4
)
($
19.0
)
($
38.1
)
Debt Repayment
(23.2
)
(1.8
)
(24.2
)
(3.6
)
Cash Dividends
(6.8
)
(6.1
)
(12.9
)
(15.6
)
Purchase of Non-controlling Redeemable Shares
-
-
(1.4
)
-
Payments Related to Tax Withholdings for Stock-Based Compensation
-
-
(0.1
)
(0.6
)
Proceeds from Borrowings on Revolving Credit Facility
18.8
59.3
43.8
85.4
Repayments of Borrowings on Revolving Credit Facility
(18.8
)
(59.3
)
(43.8
)
(85.4
)
Proceeds from Exercise of Stock Options
-
0.1
-
0.1
Other Financing Activities
(0.7
)
-
(0.7
)
-
Cash Flow Used by Financing Activities
($
30.6
)
($
7.8
)
($
39.3
)
($
19.7
)
Effect of Exchange Rate on Cash
0.1
2.6
(1.9
)
(0.3
)
Net Change in Cash
$
3.3
($
4.2
)
$
9.5
($
27.3
)
Cash - Beginning
53.6
23.3
47.5
46.4
Cash - Ending
$
56.9
$
19.1
$
56.9
$
19.1
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Earnings Per Share Calculation
(Unaudited)
(Dollars and Shares in
Millions)
Three Months
Six Months
2Q 2019
2Q 2018
YTD 2019
YTD 2018
Basic EPS Calculation(1) Net
Income
$
7.3
$
8.1
$
9.2
$
18.4
Less: Accretion of Preferred Stock
(4.1
)
(4.3
)
(8.0
)
(8.5
)
Less: Redeemable Preferred Stock Dividends
(3.8
)
(3.8
)
(7.7
)
(7.7
)
Less: European Noncontrolling Redeemable Equity Dividends
(0.3
)
(0.5
)
(0.4
)
(1.1
)
Numerator
$
(0.9
)
$
(0.5
)
$
(6.9
)
$
1.2
Denominator: Weighted Avg. Shares Outstanding
25.1
25.0
25.1
25.0
Basic (Loss) Earnings Per Share
$
(0.04
)
$
(0.02
)
$
(0.27
)
$
0.05
Diluted EPS
Calculation(1) Net Income
$
7.3
$
8.1
$
9.2
$
18.4
Less: Accretion of Preferred Stock
(4.1
)
(4.3
)
(8.0
)
(8.5
)
Less: Redeemable Preferred Stock Dividends
(3.8
)
(3.8
)
(7.7
)
(7.7
)
Less: European Noncontrolling Redeemable Equity Dividends
(0.3
)
(0.5
)
(0.4
)
(1.1
)
Numerator
$
(0.9
)
$
(0.5
)
$
(6.9
)
$
1.2
Weighted Avg. Shares Outstanding-Basic
25.1
25.0
25.1
25.0
Dilutive Stock Options and Restricted Stock Units
-
-
-
-
Denominator: Weighted Avg. Shares Outstanding
25.1
25.0
25.1
25.0
Diluted (Loss) Earnings Per Share
$
(0.04
)
$
(0.02
)
$
(0.27
)
$
0.05
(1) Basic earnings per share is computed by dividing net
income (loss) attributable to Superior, after deducting preferred
dividends and accretion and European non-controlling redeemable
equity dividends, by the weighted average number of common shares
outstanding. For purposes of calculating diluted earnings per
share, the weighted average shares outstanding includes the
dilutive effect of outstanding stock options and time and
performance based restricted stock units under the treasury stock
method. The redeemable preferred shares are not included in the
diluted earnings per share because the conversion would be
anti-dilutive for the periods ended June 30, 2019 and June 30,
2018.In the second quarter of 2018, the Company misclassified a
$2.9 million foreign currency gain associated with the European
non-controlling redeemable equity in its financial statements. This
gain was also incorrectly included in the determination of 2018
second quarter and year-to-date earnings attributable to Superior
common shareholders in calculating earnings per share. The 2018
basic and diluted earnings per share amounts previously reported
have been corrected. Management evaluated the materiality of this
misstatement from quantitative and qualitative perspectives and
concluded it is not material to the prior period.
SUPERIOR INDUSTRIES
INTERNATIONAL, INC.
Impact of Acquisition and
Non-recurring Items on EPS (Unaudited)
(Dollars in Millions, except
EPS amounts)
Three Months
Six Months
Before Tax Impact on Net
Income
2Q 2019
2Q 2018
YTD 2019
YTD 2018
Location on Income
Statement
M&A, Integration, and Hiring & Separation Cost
$
(1.3
)
$
(2.5
)
$
(2.0
)
$
(5.8
)
SG&A Severance
(0.2
)
-
(0.8
)
-
COGS Debt Extinguishment Gains
2.4
-
2.4
-
Other Income Change in Fair Value of Preferred Derivative
0.1
(4.6
)
0.7
(3.7
)
Other Income
Total Impact on Net Income
$
1.0
$
(7.1
)
$
0.3
$
(9.5
)
After Tax Impact on Net Income
$
0.6
$
(6.8
)
$
0.1
$
(8.8
)
Weighted Average Shares Outstanding - Basic
25.1
25.0
25.1
25.0
Impact on Earnings (Loss) Per Share
$
0.02
$
(0.27
)
$
0.00
$
(0.35
)
SUPERIOR INDUSTRIES INTERNATIONAL, INC. Non-GAAP
Financial Measures (Unaudited) (Dollars in Millions)
Value-Added Sales
Three Months Six Months 2Q 2019 2Q 2018
YTD 2019 YTD 2018 Net Sales
$
352.5
$
389.0
$
710.2
$
775.4
Less: Aluminum Value and Outside Service Provider Costs
(158.9
)
(184.6
)
(323.8
)
(363.6
)
Value-Added Sales
$
193.6
$
204.4
$
386.4
$
411.8
Three Months Six Months 2Q 2019 2Q
2018 YTD 2019 YTD 2018 Net Income
$
7.3
$
8.1
$
9.2
$
18.4
Adjusting Items: - Interest Expense, net
11.9
13.2
23.7
25.0
- Income Tax Provision
7.5
4.8
12.5
8.2
- Depreciation
16.6
17.4
33.2
34.9
- Amortization
6.7
6.6
13.5
13.3
- M&A, Integration, Hiring & Separation Cost, and Debt
Extinguishment Gains(1)
(0.9
)
2.5
0.4
5.8
- Factoring Fees(1)
0.2
-
0.6
-
- Change in Fair Value of Preferred Derivative
(0.1
)
4.6
(0.7
)
3.7
$
41.9
$
49.1
$
83.2
$
90.9
Adjusted EBITDA
$
49.2
$
57.2
$
92.4
$
109.4
(1) In the second quarter of 2019, we incurred approximately
$1.4 million of hiring and separation costs, $0.2 million of AR
factoring fees, $0.1 million of integration costs and $2.4 million
of gains on extinguishment of debt. In the second quarter of 2018,
we incurred approximately $1.3 million in restructuring costs and
$1.2 million in integration costs. In the first half of 2019, we
incurred approximately $0.6 million in integration costs, $2.2
million of restructuring costs, $0.6 million of AR factoring fees
and $2.4 million of gains on extinguishment of debt. In the first
half of 2018, we incurred approximately $2.2 million in
restructuring costs and $3.5 million in integration costs.
Outlook for Full Year 2019
Value-Added Sales Outlook Range Net Sales
Outlook
$
1,390.0
$
1,440.0
Less: Aluminum Value and Outside Service Provider Costs
(635.0
)
(645.0
)
Value-Added Sales Outlook
$
755.0
$
795.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190808005088/en/
Superior Investor Relations Troy Ford (248) 234-7104
Investor.Relations@supind.com
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