The following is a summary of the Superior Industries International, Inc. (SUP) Q4 2023 Earnings Call Transcript:
Financial Performance:
Superior Industries reported Q4 net sales of $309 million, a notable decrease from $402 million in the prior year, with full year net sales at $1.4 billion compared to $1.6 billion in 2022.
Value added sales for the full year remained relatively flat at $748 million, despite a dip in Q4 of 2023.
Despite a challenging macro environment, the company achieved EBITDA margins of 21%, with full-year adjusted EBITDA totalling $159 million.
The company successfully reduced net debt to an all-time low of $429 million, improved from $620 million in early 2019, despite significant investments in transformation activities.
The company ended the year with a net loss of $93 million or a loss per diluted share of $4.73, a decrease from net income of $37 million and earnings per diluted share of $0.02 in 2022, with a large part of the loss due to the deconsolidation of SPG.
Business Progress:
Superior Industries underwent significant strategic actions in 2023, focused on operational excellence and profitable growth, solidifying its position as a leading global wheel solutions provider.
Transferring production from its German plant to the more cost-effective facility in Poland significantly reduced production costs and laid the groundwork for future margin expansion.
The company projects growth over market of about 4.1% by 2027, fueled by industry recovery and the growing adoption of larger wheels with premium finishes.
The 2024 financial outlook forecasts net sales to range from $1.3 billion to $1.48 billion and adjusted EBITDA is forecasted to be between $155 million and $175 million, reflecting confidence in the continuation of their strategic transformation effects.
The company plans to refinance their senior unsecured notes, which mature in June 2025, contributing to their effort to maintain a solid financial position.
More details: Superior Industries International IR
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