The following is a summary of the Superior Industries International, Inc. (SUP) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Superior's Q1 2024 net sales decreased to $316 million, with value-added sales decreasing to $172 million.

• Adjusted EBITDA was $31 million and net loss was $33 million.

• Unlevered free cash flow for Q1 2024 was $8 million, decline of $26 million year-on-year due to lower cash from operating activities offset partly by reduced capital expenditure.

• The company's net debt of $439 million remains near historical low.

• Superior maintained ample liquidity and is gaining traction with refinancing and capital structure solutions.

• A year-over-year benefit of $23 million to $25 million is expected annually due to the change of wheels production from Germany to Poland.

• For 2024, Superior expects net sales in the range of $1.38 billion to 1.48 billion, value-added sales between $720 million and $770 million, and adjusted EBITDA of $155 million to 175 million.

Business Progress:

• Superior exited high-cost German operations successfully in Q1, relocating production to low-cost Poland, enhancing profitability, and rendering the company a 100% low-cost manufacturer.

• Despite industry challenges such as declining production volumes, the company is well-positioned for a significant margin improvement in 2024.

• Superior anticipates further growth as the average age of US car parks is at historical lows.

• The increasing adoption of lightweight and premium versions of wheels is driving future content growth.

• Superior maintains a strong competitive stance as the leader in Europe and North America with the diversified customer base in the wheel space and maintains a 100% low-cost and local footprint.

• The financial data for the quarter did not include wheels produced in Germany. The $20 million to $35 million costs for asset transfer will impact cash flows but will not be reflected in adjusted EBITDA.

• Superior is steering its focus on sales and value-added sales. The company is toward the end of execution for cash costs regarding the asset transfer and is progressing with the ongoing refinancing process.

More details: Superior Industries International IR

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