Continued strong cash flow supported additional
debt principal reduction
Third Quarter 2019 Highlights:
- Unit shipments of 4.9 million, up 2% year-over-year
- Net sales of $352.0 million, up 1% year-over-year
- Value-Added Sales(1) up 12%, excluding foreign exchange; 12%
growth over market(2)
- The UAW labor strike negatively impacted units and sales by
approximately 2%
- Net loss of $6.6 million, includes $15.0 million of
restructuring and net other expense
- Adjusted EBITDA(1) of $38.9 million
- Debt principal reduction(3) of $12.4 million supported by
ongoing strong cash flow
Superior Industries International, Inc. (NYSE:SUP), one
of the world’s leading light vehicle aluminum wheel suppliers for
OEMs and the European aftermarket, today reported financial results
for the third quarter ended September 30, 2019.
($ in Millions, Units in Thousands) Three
Months Nine Months
3Q 2019
3Q 2018
YTD 2019
YTD 2018
Units North America
2,505
2,647
7,618
8,639
Europe
2,346
2,087
7,162
7,185
Global
4,851
4,734
14,780
15,824
Net Sales North America
$ 188.1
$ 197.8
$ 553.6
$ 606.7
Europe
163.9
149.8
508.6
516.3
Global
$ 352.0
$ 347.6
$ 1,062.2
$ 1,123.0
Value-Added Sales (1) North America
$ 93.5
$ 92.4
$ 270.1
$ 294.2
Europe
101.9
86.7
311.8
296.7
Global
$ 195.5
$ 179.1
$ 581.9
$ 590.9
(1)
See “Non-GAAP Financial Information” below
and the attached pages for reconciliations to the most comparable
GAAP measures
(2)
Source: IHS Automotive October 16th, 2019;
NA and EU combined industry production (0.2%); EU based on Western
and Central EU
(3)
Includes open market repurchases of senior
unsecured notes, Term Loan B payments, and other debt payments
“Our third quarter revenue reflects the ongoing momentum of our
positioning as a premium wheel solutions provider. We continue to
benefit from the shift to larger, more complex wheels with premium
finishes, which resulted in Value-Added Sales growing above
market(1,2) during the quarter,” commented Majdi Abulaban, Chief
Executive Officer of Superior.
“Despite the weaker macro environment, our continued focus
across the organization is on improving operating performance,
aligning our cost structure, and generating cash flow, which
delivered positive results in the quarter, including an improvement
in net leverage by 0.3 times,” continued Mr. Abulaban.
Third Quarter Results
Wheel unit shipments were 4.9 million for the third quarter of
2019 compared to unit shipments of 4.7 million in the prior year
period, an increase of 2.5%. The increase in shipments was driven
by higher volumes in Europe, including in the Company’s aftermarket
business, partially offset by lower shipments in North America. The
decline in North America includes the impact related to the UAW
strike, which resulted in lower consolidated shipments by
approximately 2% in the quarter.
Net sales for the third quarter of 2019 were $352.0 million,
compared to net sales of $347.6 million for the same period in
2018. The increase in net sales was driven by improved product mix
comprised of larger diameter wheels and premium finishes in both
segments and higher volumes, partially offset by lower aluminum
prices and a weaker Euro. The UAW strike negatively impacted net
sales by approximately 2% in the quarter.
Value-Added Sales, a non-GAAP measure as defined and reconciled
to net sales below, were $195.5 million for the third quarter of
2019, a 9.1% increase compared to the prior year period. The
increase in Value-Added Sales resulted from the continued shift
towards production of larger, premium wheels and higher volumes,
partially offset by a weaker Euro. The UAW strike negatively
impacted Value-Added Sales by approximately 2% in the quarter.
Gross profit for the third quarter of 2019 was $16.0 million
compared to $23.7 million in the prior year period. The decrease
was primarily due to restructuring costs of $13.0 million related
to the restructuring of the Company’s Fayetteville facility. This
expense included accelerated depreciation of $7.6 million and
severance, write-downs on supplies and other consumable inventory,
and other costs totaling $5.4 million. The increase in expense was
partially offset by improved mix, material procurement savings, and
higher volumes.
Selling, general, and administrative (“SG&A”) expenses for
the third quarter of 2019 were $16.3 million, or 4.6% of net sales,
compared to $16.0 million in the prior year period.
Operating loss for the third quarter of 2019 was $0.2 million,
compared to income from operations of $7.7 million in the prior
year period. This operating loss is due to the previously mentioned
impacts on gross profit.
The income tax benefit for the quarter ended September 30, 2019
was $4.8 million on a pre-tax loss of $11.4 million. The effective
tax rate was higher than the statutory rate primarily due to the
effects of U.S. taxation of foreign earnings under Global
Intangible Low-Tax Income (“GILTI”) provisions of tax reform, and
recognition of a valuation allowance on non-deductible interest,
partially offset by a benefit due to the mix of earnings among tax
jurisdictions. The income tax benefit for the quarter ended
September 30, 2018 was $7.1 million on a pre-tax loss of $7.8
million, which was primarily due to a revision to the estimated
U.S. tax related provisions of the Tax Cuts and Jobs Act.
For the third quarter of 2019, the Company reported a net loss
of $6.6 million, or a loss of $0.57 per diluted share, which
includes restructuring and net other expense of $0.49 per diluted
share. This compares to a net loss of $0.7 million, or a loss of
$0.37 per diluted share, in the prior year period. See attached
supplemental data pages for a reconciliation of restructuring and
net other expense and a reconciliation from net income to diluted
earnings per share.
Adjusted EBITDA, a non-GAAP measure as defined and reconciled to
net income below, was $38.9 million for the third quarter of 2019
compared to $30.6 million in the prior year period. The increase in
Adjusted EBITDA was primarily driven by improved product mix
comprised of larger diameter wheels and premium finishes,
procurement savings, and higher volume.
Net cash provided by operating activities was $32.7 million for
the third quarter of 2019 compared to $33.5 million in the prior
year period. The decrease was driven by improved working capital
management in the third quarter of 2019 offset by higher
incremental usage of the Company’s accounts receivable factoring
program during the prior year period.
Net cash used for investing activities was $18.9 million for the
third quarter of 2019 compared to $17.3 million in the prior year
period.
During the quarter, Superior suspended its quarterly common
dividend, allowing the Company to reallocate approximately $11.0
million annually to invest in the business and reduce net debt.
Dividends paid during the quarter totaled $6.3 million and
purchases of shares from minority holders of Superior Industries
Europe AG totaled $2.5 million. Also, during the quarter, Superior
repurchased €7.0 million ($7.8 million) face value of its 6.0%
senior unsecured notes on the open market for €5.9 million ($6.6
million), resulting in a pre-tax net gain of $1.0 million, which is
included in other income and which has been deducted to arrive at
Adjusted EBITDA. The senior note repurchases and other debt
payments resulted in a $12.4 million reduction in debt principal
during the quarter.
Capital Structure and Liquidity
Total funded debt and net debt at the end of the quarter were
$634.7 million and $585.4 million, respectively. This compares to
funded debt and net debt at the end of the prior year period of
$711.3 million and $699.1 million, respectively. Total liquidity,
including cash and unused available amounts under revolving credit
facilities, totaled $254.5 million at the end of the quarter.
Year-to-Date Results
Wheel unit shipments were 14.8 million for the first nine months
of 2019 compared to unit shipments of 15.8 million in the prior
year period. The decrease occurred primarily in the Company’s North
American operations and was driven by softer industry production
levels at our key customers, lower take rates, and reduced
share.
Net sales for the first nine months of 2019 were $1.06 billion,
compared to net sales of $1.12 billion for the same period in 2018.
The reduction in net sales was 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 $581.9 million for the first nine months
of 2019 compared to $590.9 million in the prior year period. The
reduction in Value-Added Sales was primarily driven by reduced
volumes and a weaker Euro, partially offset by improved product mix
comprised of larger diameter wheels and premium finishes in both
regions.
Gross profit for the first nine months of 2019 was $89.2 million
compared to $127.2 million in the prior year period. The decrease
was primarily due to the previously mentioned restructuring costs
of $13.0 million, as well as the alignment of reporting for
SG&A expenses between our North American and European segments,
which resulted in higher cost of goods sold and lower SG&A
expenses. Gross profit was also impacted by lower volume. These
items were partially offset by improved mix and material
procurement savings.
SG&A expenses for the first nine months of 2019 were $46.7
million, or 4.4% of net sales, compared to $60.6 million in the
prior year period. The decrease is primarily due to a reduction in
acquisition and integration expenses and the previously mentioned
alignment of reporting for SG&A.
Income from operations for the first nine months of 2019 was
$42.4 million, compared to $66.6 million in the prior year period.
The change compared to the prior year is due to the previously
mentioned impacts on gross profit and SG&A.
The income tax provision for first nine months of 2019 was $7.7
million on pre-tax income of $10.3 million. The tax provision was
driven primarily by GILTI, which now includes the taxation of the
Company’s full foreign operations as compared to a phase in under
GILTI in 2018, as well as the previously mentioned impacts on taxes
in the third quarter. The income tax provision for the first nine
months of 2018 was $1.1 million on pre-tax income of $18.9
million.
For the first nine months of 2019, the Company reported net
income of $2.6 million, or a loss of $0.84 per diluted share, which
includes restructuring and net other expense of $0.49 per diluted
share. This compares to net income of $17.8 million, or a loss of
$0.32 per diluted share, in the prior year period. See attached
supplemental data pages for a reconciliation of restructuring and
net other expense and a reconciliation from net income to diluted
earnings per share.
Adjusted EBITDA, a non-GAAP measure as defined and reconciled to
net income below, was $131.3 million for the first nine months of
2019 compared to $140.0 million in the prior year period. The
decrease in Adjusted EBITDA was driven primarily by lower volume
and higher energy prices, partially offset by improved product mix
comprised of larger diameter wheels and premium finishes and
material procurement savings.
Net cash provided by operating activities was $102.4 million for
the first nine months of 2019 compared to $64.3 million in the
prior year period. The increase was driven by improved working
capital management during the first nine months of 2019 partially
offset by higher incremental usage of the Company’s accounts
receivable factoring program during the prior year period. Net cash
used for investing activities was $38.0 million for the first nine
months of 2019 compared to $55.5 million in the prior year period.
The decrease was due to lower capital expenditures and proceeds
from the sale of other assets.
During the first nine months of 2019, Superior paid dividends
totaling $19.2 million and purchased $3.9 million in shares from
minority shareholders of Superior Industries Europe AG. During the
same period, Superior also repurchased €27.0 million ($30.2
million) of 6.0% senior unsecured notes on the open market. The
senior note repurchases and other debt payments have resulted in a
$40.5 million reduction in debt principal through the third quarter
of 2019.
2019 Outlook
Compared to the Company’s previously issued outlook for full
year 2019, Superior increased its outlook for cash flow from
operations due to the working capital initiatives executed to date.
Superior also narrowed its outlook for unit shipments, net sales,
Value-Added Sales, and Adjusted EBITDA and maintained its outlook
for capital expenditures.
Prior Outlook Current Outlook
Unit Shipments
19.5 - 19.9 million 19.5 - 19.7 million
Net
Sales $1.39 - $1.44 billion $1.39 - $1.42 billion
Value-Added Sales $755 - $795 million $755 -
$775 million
Adjusted EBITDA $165 - $180 million
$165 - $175 million
Cash Flow from Operations $125 -
$145 million $135 - $155 million
Capital
Expenditures ~$75 million ~$75 million
Superior’s revised outlook for unit shipments, net sales,
Value-Added Sales, and Adjusted EBITDA reflects the impact of a
labor strike at one of Superior’s largest customers.
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
Monday, November 4, 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 3135961. The live conference call can also
be accessed by logging into the Company’s website at www.supind.com
or by clicking this link: earnings call webcast. A replay of the
webcast will be available on the Company’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. 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,
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 Nine Months
3Q 2019
3Q 2018
YTD 2019
YTD 2018
Net Sales
$ 352.0
$ 347.6
$ 1,062.2
$ 1,123.0
Cost of Sales
336.0
323.9
973.0
995.8
Gross Profit
$ 16.0
$ 23.7
$ 89.2
$ 127.2
SG&A
16.3
16.0
46.7
60.6
(Loss) Income From Operations
$ (0.2)
$ 7.7
$ 42.4
$ 66.6
Interest Expense, net
(11.8)
(12.4)
(35.5)
(37.4)
Other Income (Expense), net
1.7
(3.3)
3.7
(6.8)
Change in Fair Value of Preferred Derivative
(1.0)
0.2
(0.3)
(3.5)
(Loss) Income Before Income Taxes
$ (11.4)
$ (7.8)
$ 10.3
$ 18.9
Income Tax Benefit (Provision)
4.8
7.1
(7.7)
(1.1)
Net (Loss) Income
$ (6.6)
$ (0.7)
$ 2.6
$ 17.8
Loss Per Share: Basic
$ (0.57)
$ (0.37)
$ (0.84)
$ (0.32)
Diluted
$ (0.57)
$ (0.37)
$ (0.84)
$ (0.32)
Weighted Average and Equivalent SharesOutstanding for EPS
(in Thousands): Basic
25,127
25,017
25,089
24,985
Diluted
25,127
25,017
25,089
24,985
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in Millions)
9/30/2019
12/31/2018
Current Assets
$ 366.2
$ 370.4
Property, Plant and Equipment, net
516.9
532.8
Intangibles and Other Assets
520.3
548.4
Total Assets
$ 1,403.4
$ 1,451.6
Current Liabilities
$ 200.4
$ 178.5
Long-Term Liabilities
709.0
741.5
Redeemable Preferred Shares
156.7
144.5
European Noncontrolling Redeemable Equity
9.1
13.8
Shareholders’ Equity
328.2
373.3
Total Liabilities and Shareholders’ Equity
$ 1,403.4
$ 1,451.6
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in Millions) Three Months Nine
Months
3Q 2019
3Q 2018
YTD 2019
YTD 2018
Net (Loss) Income
($6.6)
($0.7)
$2.6
$17.8
Depreciation and Amortization
30.8
23.6
77.5
71.9
Income tax, Non-cash changes
(5.1)
(2.5)
(3.5)
4.4
Stock-based Compensation
1.8
1.2
3.7
3.0
Debt Amortization
1.2
1.0
3.7
2.9
Other Non-cash items
2.1
0.9
0.4
2.8
Changes in Operating Assets and Liabilities: Accounts Receivable
(7.9)
24.8
(30.5)
2.8
Inventories
11.7
(5.8)
9.0
(22.0)
Other Assets and Liabilities
7.7
(3.8)
20.3
(11.5)
Accounts Payable
0.5
(6.3)
11.2
(8.6)
Income Taxes
(3.5)
1.1
7.9
0.8
Cash Flow Provided by Operating Activities
$32.7
$33.5
$102.4
$64.3
Capital Expenditures
(18.9)
(17.4)
(47.6)
(55.5)
Other Investing Activities
-
0.1
9.6
-
Cash Flow Used by Investing Activities
($18.9)
($17.3)
($38.0)
($55.5)
Debt Repayment
(10.8)
(1.8)
(35.0)
(5.4)
Cash Dividends
(6.3)
(6.1)
(19.2)
(21.7)
Purchase of Non-controlling Redeemable Shares
(2.5)
(33.4)
(3.9)
(33.4)
Payments Related to Tax Withholdings for Stock-Based Compensation
-
-
(0.1)
(0.6)
Proceeds from Borrowings on Revolving Credit Facility
25.8
149.3
69.6
234.7
Repayments of Borrowings on Revolving Credit Facility
(25.8)
(130.7)
(69.6)
(216.1)
Proceeds from Exercise of Stock Options
-
-
-
0.1
Other Financing Activities
(0.4)
-
(1.0)
-
Cash Flow Used by Financing Activities
($20.0)
($22.7)
($59.2)
($42.4)
Effect of Exchange Rate on Cash
(1.5)
(1.1)
(3.3)
(1.3)
Net Change in Cash
($7.6)
($7.6)
$1.8
($34.9)
Cash - Beginning
56.9
19.1
47.5
46.4
Cash - Ending
$49.3
$11.5
$49.3
$11.5
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Earnings Per Share Calculation (Unaudited) (Dollars and
Shares in Millions) Three Months Nine
Months 3Q 2019 3Q 2018 YTD 2019 YTD
2018 Basic EPS
Calculation(1) Net (Loss) Income
$
(6.6
)
$
(0.7
)
$
2.6
$
17.8
Less: Accretion of Preferred Stock
(4.2
)
(4.4
)
(12.2
)
(12.9
)
Less: Redeemable Preferred Stock Dividends
(3.4
)
(3.9
)
(11.1
)
(11.6
)
Less: European Noncontrolling Redeemable Equity Dividends
(0.1
)
(0.3
)
(0.5
)
(1.3
)
Numerator
$
(14.3
)
$
(9.3
)
$
(21.2
)
$
(8.0
)
Denominator: Weighted Avg. Shares Outstanding
25.1
25.0
25.1
25.0
Basic (Loss) Earnings Per Share
$
(0.57
)
$
(0.37
)
$
(0.84
)
$
(0.32
)
Diluted EPS
Calculation(1) Net (Loss) Income
$
(6.6
)
$
(0.7
)
$
2.6
$
17.8
Less: Accretion of Preferred Stock
(4.2
)
(4.4
)
(12.2
)
(12.9
)
Less: Redeemable Preferred Stock Dividends
(3.4
)
(3.9
)
(11.1
)
(11.6
)
Less: European Noncontrolling Redeemable Equity Dividends
(0.1
)
(0.3
)
(0.5
)
(1.3
)
Numerator
$
(14.3
)
$
(9.3
)
$
(21.2
)
$
(8.0
)
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
$
(0.57
)
$
(0.37
)
$
(0.84
)
$
(0.32
)
(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 September 30, 2019 and
September 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 third quarter 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, Restructuring and Other Items on EPS
(Unaudited) (Dollars in Millions, except EPS amounts)
Three Months Nine Months Before Tax Impact
on Net Income
3Q 2019
3Q 2018
YTD 2019
YTD 2018
Location on IncomeStatement Acquisition & Integration
$
(0.4
)
$
(2.5
)
$
(1.7
)
$
(8.3
)
SG&A/COGS Certain Hiring & Separation Cost
(1.6
)
-
(3.1
)
-
SG&A/COGS Restructuring Cost
(13.0
)
-
(13.0
)
-
COGS Debt Extinguishment Gains
1.0
-
3.4
-
Other Income Change in Fair Value of Preferred Derivative
(1.0
)
0.2
(0.3
)
(3.5
)
Other Income
Total Impact on Net Income
$
(15.0
)
$
(2.3
)
$
(14.7
)
$
(11.8
)
After Tax Impact on Net Income
$
(12.3
)
$
(2.0
)
$
(12.2
)
$
(10.8
)
Weighted Average Shares Outstanding - Basic
25.1
25.0
25.1
25.0
Impact on (Loss) Earnings Per Share
$
(0.49
)
$
(0.08
)
$
(0.49
)
$
(0.43
)
SUPERIOR INDUSTRIES INTERNATIONAL, INC. Non-GAAP
Financial Measures (Unaudited) (Dollars in Millions)
Value-Added Sales
Three Months Nine Months 3Q 2019 3Q
2018 YTD 2019 YTD 2018 Net Sales
$
352.0
$
347.6
$
1,062.2
$
1,123.0
Less: Aluminum Value and Outside Service Provider Costs
(156.6
)
(168.5
)
(480.3
)
(532.1
)
Value-Added Sales
$
195.5
$
179.1
$
581.9
$
590.9
Three Months Nine Months 3Q 2019 3Q
2018 YTD 2019 YTD 2018 Net (Loss) Income
$
(6.6
)
$
(0.7
)
$
2.6
$
17.8
Adjusting Items: - Interest Expense, net
11.8
12.4
35.5
37.4
- Income Tax Provision
(4.8
)
(7.1
)
7.7
1.1
- Depreciation
24.2
17.1
57.4
52.0
- Amortization
6.6
6.6
20.1
19.9
- Acquisition, integration, hiring/separation/restructuring
costs, and debt extinguishment gain(1)
6.4
2.3
6.8
7.9
- Factoring Fees(1)
0.2
0.2
0.8
0.4
- Change in Fair Value of Preferred Derivative
1.0
(0.2
)
0.3
3.5
$
45.4
$
31.3
$
128.6
$
122.2
Adjusted EBITDA
$
38.9
$
30.6
$
131.3
$
140.0
(1) In the third quarter of 2019, we incurred approximately
$5.4 million of Fayetteville restructuring costs (excluding $7.6
million of accelerated depreciation), $1.6 million of certain
hiring and separation costs, $0.4 million of acquisition and
integration costs, $0.2 million of accounts receivable factoring
fees, and $1.0 million of gains on extinguishment of debt. In the
third quarter of 2018, we incurred approximately $2.3 million in
integration costs and $0.2 million of accounts receivable factoring
fees. In the first nine months of 2019, we incurred approximately
$5.4 million of Fayetteville restructuring costs (excluding $7.6
million of accelerated depreciation), $3.1 million of certain
hiring and separation costs, $1.7 million of acquisition and
integration costs, $0.8 million of accounts receivable factoring
fees, and $3.4 million of gains on extinguishment of debt. In the
first nine months of 2018, we incurred approximately $7.9 million
in integration costs and $0.4 million of accounts receivable
factoring fees.
Outlook for Full
Year 2019 Value-Added Sales Outlook Range Net
Sales Outlook
$
1,390.0
$
1,420.0
Less: Aluminum Value and Outside Service Provider Costs
(635.0
)
(645.0
)
Value-Added Sales Outlook
$
755.0
$
775.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191104005270/en/
Superior Investor Relations Troy Ford (248) 234-7104
Investor.Relations@supind.com
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