UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) November 2, 2020
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware | 1-6615 | 95-2594729 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
26600 Telegraph Road, Suite 400 Southfield, Michigan |
48033 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Registrants Telephone Number, Including Area Code: (248) 352-7300
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
Common Stock, $0.01 par value | SUP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(e) of the Exchange Act ☐
Item 2.02 | Results of Operations and Financial Condition |
On November 2, 2020, Superior Industries International, Inc. (Superior) issued a press release announcing the results of operations for the third quarter ended September 30, 2020 and revising its outlook for 2020. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.
The information contained in Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
This Current Report on Form 8-K 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, expected, seeks to, anticipates, plans, believes, estimates, intends, outlook, predicts, projects, projecting, potential, targeting, will likely result or continue, or the negative of such terms and other comparable terminology. These statements also include, but are not limited to, the 2020 Superior and industry outlook as well as our liquidity and debt covenants included herein, the impact of COVID-19 on our future business results, operations and prospects, Superiors strategic and operational initiatives, product mix and overall cost improvement and are based on current expectations, estimates, and projections about Superiors 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 Superiors Securities and Exchange Commission filings and reports, including Superiors current Annual Report on Form 10-K, 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 report. 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 report.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUPERIOR INDUSTRIES INTERNATIONAL, INC. | ||||||
(Registrant) | ||||||
Date: November 2, 2020 | /s/ C. Timothy Trenary | |||||
C. Timothy Trenary | ||||||
Executive Vice President and Chief Financial Officer |
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Exhibit 99.1
News Release
|
Superior Reports Third Quarter 2020 Results
Solid execution in an improving industry production environment
Third Quarter 2020 Financial Highlights:
| Cost and cash actions deliver significant margin expansion and cash flow |
| Unit shipments of 4.4M; net sales of $317M |
| Value-Added Sales(1) of $192M, content per wheel growth of 7%(2) |
| Net income of $11M, includes $4 million of restructuring and net other expense(3) |
| Adjusted EBITDA(1) of $47M, a 20% increase compared to the prior year period |
| Record liquidity(4) at $336M; total funded debt of $630M and net debt(5) of $519M |
SOUTHFIELD, MICHIGAN November 2, 2020 Superior Industries International, Inc. (Superior or the Company) (NYSE:SUP), a world-leading light vehicle aluminum wheel supplier for OEMs and the European aftermarket, today reported financial results for the third quarter ended September 30, 2020.
($ in millions, units in thousands) | Three Months | Nine Months | ||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Units |
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North America |
2,392 | 2,505 | 5,452 | 7,618 | ||||||||||||
Europe |
1,970 | 2,346 | 5,285 | 7,162 | ||||||||||||
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Global |
4,362 | 4,851 | 10,737 | 14,780 | ||||||||||||
Net Sales |
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North America |
$ | 166.7 | $ | 188.1 | $ | 381.2 | $ | 553.6 | ||||||||
Europe |
150.4 | 163.9 | 381.9 | 508.6 | ||||||||||||
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Global |
$ | 317.1 | $ | 352.0 | $ | 763.1 | $ | 1,062.2 | ||||||||
Value-Added Sales (1) |
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North America |
$ | 93.4 | $ | 93.5 | $ | 204.6 | $ | 270.1 | ||||||||
Europe |
99.1 | 101.9 | 242.2 | 311.8 | ||||||||||||
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Global |
$ | 192.5 | $ | 195.5 | $ | 446.8 | $ | 581.9 |
Industry production in the third quarter of 2020 recovered significantly from the second quarter. Our business and team have performed well in the face of the challenges brought on by the current operating environment; we are pleased with the third quarter results. During the quarter we delivered substantial cash flow and earnings growth, as well as year-over-year margin improvement. This outcome was supported by the successful ramp-up of our facilities, structural cost improvements, the execution of both temporary and permanent cost reductions in response to COVID-19, and the ongoing mix shift towards higher content wheels, which has supported Value-Added Sales(1) growth at or above market throughout 2020, commented Majdi Abulaban, President and Chief Executive Officer of Superior.
(1) | See Non-GAAP Financial Information below for a definition and reconciliation to the most comparable GAAP measure. |
(2) | Excludes impact of FX. |
(3) | See Impact of Acquisition, Restructuring, and Other Items in the tables of this press release. |
(4) | Includes cash and available amounts under committed revolving credit facilities. |
(5) | Defined as total funded debt less cash. |
Based on our results in the quarter, I am pleased to report that we are well ahead of our free cash flow target for 2020 and as a result, we are raising our free cash flow expectations for full year 2020. Further, I remain confident in our teams ability to continue leveraging our differentiated technology portfolio to deliver value to our customers and shareholders over the long-term.
Business Update
Third quarter 2020 automotive industry production recovered significantly relative to the second quarter despite the ongoing COVID-19 pandemic. Compared to the prior year period, industry production in North America was relatively flat while production in Europe declined by 9%.
During the third quarter, the Company continued execution of its Safe Work Playbook across its footprint, which includes expanded cleaning, social distancing measures, distribution of personal protective equipment, and daily temperature checks.
In response to COVID-19, to date Superior has implemented temporary and permanent cost savings including furloughs, compensation and benefit reductions, deferral of merit increases, reduced travel, personnel restructurings, and use of government subsidies where available. While some of the temporary measures such as the wage reductions were discontinued in the third quarter, other temporary initiatives will remain in place through the end of the year. Superior expects that these temporary and permanent cost initiatives will benefit 2020 by more than $40 million.
The above cost actions along with other initiatives executed in 2019 in Superiors North America operations and favorable product mix shift enabled year-over-year improvement in Superiors profitability, despite lower unit shipments.
Third Quarter 2020 Results
Unit shipments were 4.4 million in the third quarter of 2020, a decrease of 10% compared to unit shipments of 4.9 million in the prior year period. The decline in unit shipments was primarily driven by lower production at our key customers in Europe as a result of COVID-19. During the quarter, wheels 19 inches and greater accounted for approximately 40% of Superiors portfolio compared to just over 30% in the prior year period.
Net sales for the third quarter of 2020 were $317 million, compared to net sales of $352 million in the prior year period. The decrease in the quarter was driven by lower volumes and a decrease in aluminum prices, partially offset by favorable product mix and a stronger Euro.
Value-Added Sales, a non-GAAP financial measure, defined as net sales less the value of aluminum and services provided by outsourced service providers that are included in net sales, were $192 million for the third quarter of 2020 compared to $195 million in the prior year period. The continued portfolio shift to larger diameter wheels with more premium content along with a stronger Euro offset lower volume. See Non-GAAP Financial Information below and the reconciliation of consolidated net sales to Value-Added Sales in this press release.
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Gross profit for the third quarter of 2020 was $32 million, compared to gross profit of $16 million in the prior year period. The increase in gross profit for the quarter was due to lower manufacturing costs realized from the rationalization of the Companys manufacturing footprint, stronger product mix, costs savings implemented due to Covid-19 including reduced headcount and utilization of government subsidies, and more favorable Euro exchange rates.
Selling, general, and administrative (SG&A) expenses for the third quarter of 2020 were $13 million compared to $16 million in the prior year period. The 22% decrease was primarily a result of compensation, benefit, and headcount reductions compared to the prior year.
The Company reported operating income of $19 million in the third quarter of 2020 compared to $0 million in the prior year period. The higher operating income for the quarter was driven by lower manufacturing and SG&A expenses attributable to the initiatives above.
The income tax benefit for the third quarter of 2020 was $4 million on pre-tax income of $7 million. The tax benefit for the quarter was primarily due to Superiors year-to-date and forecasted mix of earnings among tax jurisdictions, offset by the recognition of a valuation allowance on non-deductible interest.
For the third quarter of 2020, the Company reported a net income of $11 million, or earnings per diluted share of $0.12, including the impact of $0.12 per share from restructuring and net other items. This compares to net loss of $7 million, or a loss per diluted share of $0.57, in the third quarter of 2019. See attached pages for a reconciliation of net income to diluted earnings per share.
Adjusted EBITDA, a non-GAAP financial measure, was $47 million for the third quarter of 2020. This compares to $39 million for the third quarter of 2019. The increase in Adjusted EBITDA was driven by stronger product mix and the cost saving initiatives listed above. See Non-GAAP Financial Information below and the reconciliation of net income to Adjusted EBITDA in this press release.
The Company reported net cash flow from operating activities of $100 million in the third quarter of 2020, compared to $33 million in the prior year period. Operating cash flow increased due to the above-mentioned cost actions and cash flow initiatives, including improving supplier payment terms and expanding accounts receivable factoring arrangements offsetting higher accounts receivable.
Net cash used for investing activities was $10 million in the third quarter of 2020 compared to $19 million in the prior year period. The decreased usage of cash for investing activities year-over-year was driven by reduced capital expenditures.
During the third quarter of 2020, Superior repaid the outstanding amounts on its U.S. and European revolving credit facilities. Superior also continued to pay preferred dividends in cash during the quarter totaling $3 million.
3
Capital Structure and Liquidity
Total funded debt and net debt as of September 30, 2020, were $630 million and $519 million, respectively, which compares to total funded debt and net debt of $635 million and $585 million, respectively, in the prior year period. The reduction in net debt in the third quarter of 2020 of $77 million was supported by an improvement in Adjusted EBITDA and favorable working capital, partially offset by an increased value of Euro denominated debt due to a stronger Euro. See Non-GAAP Financial Information below and the reconciliation of net income to Adjusted EBITDA in this press release.
Total liquidity, including cash and available amounts under committed revolving credit facilities, was $336 million as of September 30, 2020. The Company remains in full compliance with all borrowing covenants. Looking forward, Superior does not anticipate any issues meeting the covenant requirements under its borrowing arrangements.
2020 Outlook
Superior previously withdrew its full year 2020 outlook due to the uncertain automotive production environment because of COVID-19. With recent stabilization in industry production and the successful restart of the Companys operations, Superior is now providing financial guidance for the fourth quarter of 2020. This outlook is based on the latest IHS industry production forecast for the fourth quarter, which includes a year-over-year decline of 0.4% in North America and increase of 0.8% in Western and Central Europe.
Q4 2020 Outlook |
Implied FY 2020 | |||
Unit Shipments |
4.15 - 4.45 million | 14.9 - 15.2 million | ||
Net Sales |
$300 - $325 million | $1.06 - $1.09 billion | ||
Value-Added Sales |
$175 -$195 million | $622 - $642 million | ||
Adjusted EBITDA |
$40 - $46 million | $123 - $129 million |
Additionally, based on the above results, Superior now anticipates free cash flow, defined as the sum of operating, investing, and financing activities before net debt repayment, to be positive for full year 2020, an improvement relative to the Companys prior free cash flow neutral outlook for full year 2020.
The above fourth quarter 2020 outlook assumes no meaningful change to the current economic environment and no significant pandemic-related disruptions to Superior or customer production.
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 2020 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.
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Conference Call
Superior will host a conference call beginning at 8:30 AM EST on Monday, November 2, 2020. The conference call may be accessed by dialing 800-367-2403 for participants in the U.S./Canada or +1 334-777-6978 for participants outside the U.S./Canada using the required conference ID 6745243. The live conference call can also be accessed by logging into the Companys website at www.supind.com or by clicking this link: earnings call webcast. A replay of the webcast will be available on the Companys website immediately following the conclusion of the call.
During the conference call, the Companys 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 Industries
Superior is one of the worlds leading aluminum wheel suppliers. Superiors team collaborates 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, proxy contest fees, 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 Superiors 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, expected, seeks to, anticipates, plans,
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believes, estimates, intends, outlook, predicts, projects, projecting, potential, targeting, will likely result or continue, or the negative of such terms and other comparable terminology. These statements also include, but are not limited to, the 2020 Superior and industry outlook as well as our liquidity and debt covenants included herein, the impact of COVID-19 on our future business results, operations and prospects, Superiors strategic and operational initiatives, product mix and overall cost improvement and are based on current expectations, estimates, and projections about Superiors 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 Superiors Securities and Exchange Commission filings and reports, including Superiors current Annual Report on Form 10-K, 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.
Contact:
Superior Investor Relations
Troy Ford
(248) 234-7104
Investor.Relations@supind.com
6
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in Millions, Except Per Share Amounts)
Three Months | Nine Months | |||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Net Sales |
$ | 317.1 | $ | 352.0 | $ | 763.1 | $ | 1,062.2 | ||||||||
Cost of Sales |
285.1 | 336.0 | 730.8 | 973.0 | ||||||||||||
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Gross Profit |
$ | 32.0 | $ | 16.0 | $ | 32.3 | $ | 89.2 | ||||||||
SG&A |
12.7 | 16.3 | 36.5 | 46.7 | ||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangibles |
| | 193.6 | | ||||||||||||
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Income (Loss) From Operations |
$ | 19.2 | $ | (0.2 | ) | $ | (197.9 | ) | $ | 42.4 | ||||||
Interest Expense, net |
(10.4 | ) | (11.8 | ) | (34.4 | ) | (35.5 | ) | ||||||||
Other (Expense) Income, net |
(1.6 | ) | 0.6 | (0.9 | ) | 3.4 | ||||||||||
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Income (Loss) Before Income Taxes |
$ | 7.2 | $ | (11.4 | ) | $ | (233.3 | ) | $ | 10.3 | ||||||
Income Tax Benefit (Provision) |
3.9 | 4.8 | 11.1 | (7.7 | ) | |||||||||||
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Net Income (Loss) |
$ | 11.1 | $ | (6.6 | ) | $ | (222.2 | ) | $ | 2.6 | ||||||
Earnings (Loss) Per Share: |
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Basic |
$ | 0.12 | $ | (0.57 | ) | $ | (9.66 | ) | $ | (0.84 | ) | |||||
Diluted |
$ | 0.12 | $ | (0.57 | ) | $ | (9.66 | ) | $ | (0.84 | ) | |||||
Weighted Average and Equivalent Shares Outstanding for EPS (in Thousands): |
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Basic |
25,592 | 25,127 | 25,466 | 25,089 | ||||||||||||
Diluted |
25,710 | 25,127 | 25,466 | 25,089 |
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in Millions)
9/30/2020 | 12/31/2019 | |||||||
Current Assets |
$ | 350.5 | $ | 354.2 | ||||
Property, Plant and Equipment, net |
507.0 | 529.3 | ||||||
Intangibles and Other Assets |
221.4 | 428.4 | ||||||
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Total Assets |
$ | 1,079.0 | $ | 1,311.9 | ||||
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Current Liabilities |
$ | 230.9 | $ | 191.1 | ||||
Long-Term Liabilities |
700.5 | 701.6 | ||||||
Redeemable Preferred Shares |
174.6 | 161.0 | ||||||
European Non-controlling Redeemable Equity |
1.6 | 6.5 | ||||||
Shareholders Equity (Deficit) |
(28.6 | ) | 251.7 | |||||
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Total Liabilities and Shareholders Equity (Deficit) |
$ | 1,079.0 | $ | 1,311.9 | ||||
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SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in Millions)
Three Months | Nine Months | |||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Net Income (Loss) |
$ | 11.1 | $ | (6.6 | ) | $ | (222.2 | ) | $ | 2.6 | ||||||
Depreciation and Amortization |
24.8 | 30.8 | 73.1 | 77.5 | ||||||||||||
Income tax, Non-cash changes |
(5.4 | ) | (5.1 | ) | (19.4 | ) | (3.5 | ) | ||||||||
Impairments of Goodwill and Indefinite-Lived Intangibles |
| | 193.6 | | ||||||||||||
Stock-based Compensation |
0.5 | 1.8 | 0.7 | 3.7 | ||||||||||||
Amortization of Debt Issuance Costs |
0.9 | 1.2 | 3.1 | 3.7 | ||||||||||||
Other Non-cash items |
1.0 | 2.1 | (1.5 | ) | 0.4 | |||||||||||
Changes in Operating Assets and Liabilities: |
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Accounts Receivable |
(13.9 | ) | (7.9 | ) | (4.1 | ) | (30.5 | ) | ||||||||
Inventories |
12.2 | 11.7 | 29.3 | 9.0 | ||||||||||||
Other Assets and Liabilities |
10.3 | 7.7 | 11.5 | 20.3 | ||||||||||||
Accounts Payable |
58.7 | 0.5 | 27.4 | 11.2 | ||||||||||||
Income Taxes |
(0.6 | ) | (3.5 | ) | 0.7 | 7.9 | ||||||||||
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Cash Flow Provided by Operating Activities |
$ | 99.6 | $ | 32.7 | $ | 92.5 | $ | 102.3 | ||||||||
Capital Expenditures |
(10.8 | ) | (18.9 | ) | (33.6 | ) | (47.6 | ) | ||||||||
Proceeds from Sale of Property, Plant and Equipment |
0.9 | | 0.9 | | ||||||||||||
Other Investing Activities |
| | | 9.6 | ||||||||||||
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Cash Flow Used by Investing Activities |
$ | (10.0 | ) | $ | (18.9 | ) | $ | (32.7 | ) | $ | (38.0 | ) | ||||
Proceeds from the Issuance of Long-term Debt |
| | 11.7 | | ||||||||||||
Debt Repayment |
(0.8 | ) | (10.8 | ) | (24.9 | ) | (35.0 | ) | ||||||||
Cash Dividends |
(3.4 | ) | (6.3 | ) | (10.2 | ) | (19.2 | ) | ||||||||
Purchase of Non-controlling Redeemable Shares |
| (2.5 | ) | (5.0 | ) | (3.9 | ) | |||||||||
Payments Related to Tax Withholdings for Stock-Based Compensation |
| | | (0.1 | ) | |||||||||||
Proceeds from Borrowings on Revolving Credit Facility |
100.0 | 25.8 | 313.8 | 69.6 | ||||||||||||
Repayments of Borrowings on Revolving Credit Facility |
(209.9 | ) | (25.8 | ) | (316.9 | ) | (69.6 | ) | ||||||||
Other Financing Activities |
(0.2 | ) | (0.4 | ) | (0.7 | ) | (1.0 | ) | ||||||||
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Cash Flow Used by Financing Activities |
$ | (114.3 | ) | $ | (20.0 | ) | $ | (32.1 | ) | $ | (59.2 | ) | ||||
Effect of Exchange Rate on Cash |
5.0 | (1.5 | ) | 5.5 | (3.3 | ) | ||||||||||
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Net Change in Cash |
$ | (19.6 | ) | $ | (7.6 | ) | $ | 33.2 | $ | 1.8 | ||||||
Cash - Beginning |
130.7 | 56.9 | 77.9 | 47.5 | ||||||||||||
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Cash - Ending |
$ | 111.1 | $ | 49.3 | $ | 111.1 | $ | 49.3 | ||||||||
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SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Earnings Per Share Calculation (Unaudited)
(Dollars, except per share data, and Shares in Millions)
Three Months | Nine Months | |||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Basic EPS Calculation(1) |
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Net Income (Loss) |
$ | 11.1 | $ | (6.6 | ) | $ | (222.2 | ) | $ | 2.6 | ||||||
Less: Accretion of Preferred Stock |
(4.6 | ) | (4.2 | ) | (13.6 | ) | (12.2 | ) | ||||||||
Less: Redeemable Preferred Stock Dividends |
(3.4 | ) | (3.4 | ) | (10.2 | ) | (11.1 | ) | ||||||||
Less: European Noncontrolling Redeemable Equity Dividends |
(0.1 | ) | (0.1 | ) | (0.1 | ) | (0.5 | ) | ||||||||
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Numerator |
$ | 3.0 | $ | (14.3 | ) | $ | (246.1 | ) | $ | (21.2 | ) | |||||
Denominator: Weighted Avg. Shares Outstanding |
25.6 | 25.1 | 25.5 | 25.1 | ||||||||||||
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Basic Earnings (Loss) Per Share |
$ | 0.12 | $ | (0.57 | ) | $ | (9.66 | ) | $ | (0.84 | ) | |||||
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Diluted EPS Calculation(1) |
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Net Income (Loss) |
$ | 11.1 | $ | (6.6 | ) | $ | (222.2 | ) | $ | 2.6 | ||||||
Less: Accretion of Preferred Stock |
(4.6 | ) | (4.2 | ) | (13.6 | ) | (12.2 | ) | ||||||||
Less: Redeemable Preferred Stock Dividends |
(3.4 | ) | (3.4 | ) | (10.2 | ) | (11.1 | ) | ||||||||
Less: European Noncontrolling Redeemable Equity Dividends |
(0.1 | ) | (0.1 | ) | (0.1 | ) | (0.5 | ) | ||||||||
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Numerator |
$ | 3.0 | $ | (14.3 | ) | $ | (246.1 | ) | $ | (21.2 | ) | |||||
Weighted Avg. Shares Outstanding-Basic |
25.6 | 25.1 | 25.5 | 25.1 | ||||||||||||
Dilutive Stock Options and Restricted Stock Units |
0.1 | | | | ||||||||||||
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Denominator: Weighted Avg. Shares Outstanding |
25.7 | 25.1 | 25.5 | 25.1 | ||||||||||||
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Diluted Earnings (Loss) Per Share |
$ | 0.12 | $ | (0.57 | ) | $ | (9.66 | ) | $ | (0.84 | ) | |||||
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(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, 2020 and 2019 |
9
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 (Loss) | 3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | Location on Inc. Stat. | |||||||||||||||
Acquisition, Integration, Certain Hiring & Separation Costs |
$ | (0.8 | ) | $ | (0.4 | ) | $ | (2.1 | ) | $ | (1.7 | ) | SG&A | |||||||
Acquisition, Integration, Certain Hiring & Separation Costs |
(0.9 | ) | (1.6 | ) | (5.5 | ) | (3.1 | ) | COGS | |||||||||||
Restructuring Costs |
(2.1 | ) | (5.4 | ) | (6.2 | ) | (5.4 | ) | COGS | |||||||||||
Debt Extinguishment Gains |
0.0 | 1.0 | 0.0 | 3.4 | Other Income | |||||||||||||||
Change in Fair Value of Preferred Derivative |
0.0 | (1.0 | ) | 0.0 | (0.3 | ) | Other Income | |||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangibles |
0.0 | | (193.6 | ) | | Operating Income | ||||||||||||||
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Total Before Tax Impact on Net Income (Loss) |
$ | (3.8 | ) | $ | (7.4 | ) | $ | (207.5 | ) | $ | (7.1 | ) | ||||||||
After Tax Impact on Net Income (Loss) |
$ | (3.1 | ) | $ | (12.3 | ) | $ | (202.3 | ) | $ | (12.2 | ) | ||||||||
Impact on Earnings (Loss) Per Share |
$ | (0.12 | ) | $ | (0.49 | ) | $ | (7.94 | ) | $ | (0.49 | ) |
SUPERIOR INDUSTRIES INTERNATIONAL, INC.
Non-GAAP Financial Measures (Unaudited)
(Dollars in Millions)
Value-Added Sales |
Three Months | Nine Months | ||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Net Sales |
$ | 317.1 | $ | 352.0 | $ | 763.1 | $ | 1,062.2 | ||||||||
Less: Aluminum Value and Outside Service Provider Costs |
(124.6 | ) | (156.6 | ) | (316.2 | ) | (480.3 | ) | ||||||||
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Value-Added Sales |
$ | 192.5 | $ | 195.5 | $ | 446.8 | $ | 581.9 | ||||||||
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Three Months | Nine Months | |||||||||||||||
3Q 2020 | 3Q 2019 | YTD 2020 | YTD 2019 | |||||||||||||
Net Income (Loss) |
$ | 11.1 | $ | (6.6 | ) | $ | (222.2 | ) | $ | 2.6 | ||||||
Adjusting Items: |
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- Interest Expense, net |
10.4 | 11.8 | 34.4 | 35.5 | ||||||||||||
- Income Tax (Benefit) Provision |
(3.9 | ) | (4.8 | ) | (11.1 | ) | 7.7 | |||||||||
- Depreciation |
18.3 | 24.2 | 54.4 | 57.4 | ||||||||||||
- Amortization |
6.5 | 6.6 | 18.8 | 20.1 | ||||||||||||
- Acquisition, Integration, Hiring/Separation/Restructuring Costs, and Other |
3.8 | 6.4 | 13.8 | 6.8 | ||||||||||||
- Factoring Fees |
0.4 | 0.2 | 0.8 | 0.8 | ||||||||||||
- Impairment of Goodwill and Indefinite-Lived Intangibles |
| 1.0 | 193.6 | 0.3 | ||||||||||||
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$ | 35.6 | $ | 45.4 | $ | 304.7 | $ | 128.6 | |||||||||
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Adjusted EBITDA |
$ | 46.7 | $ | 38.9 | $ | 82.6 | $ | 131.3 | ||||||||
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Outlook for Q4 2020 Value-Added Sales |
Q4 2020 Outlook Range | Implied Full Year 2020 | ||||||||||||||
Net Sales Outlook |
$ | 300.0 | $ | 325.0 | $ | 1,063.1 | $ | 1,088.1 | ||||||||
Less: Aluminum Value and Outside Service Provider Costs |
(125.0 | ) | (130.0 | ) | (441.3 | ) | (446.3 | ) | ||||||||
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Value-Added Sales Outlook |
$ | 175.0 | $ | 195.0 | $ | 621.8 | $ | 641.8 | ||||||||
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10