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Superior Industries International, Inc. 4 th Quarter 2009 Earnings Conference Call February 26, 2010. Forward Looking Statements.
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Superior Industries International, Inc. 4th Quarter 2009 Earnings Conference Call February 26, 2010 Page
Forward Looking Statements Any forward-looking statements made in this web cast or contained in this slide presentation, including those related to conditions in the auto industry, are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially because of issues and uncertainties that need to be considered in evaluating our financial outlook. We assume no obligation to update publicly any forward-looking statements. Issues and uncertainties that are of particular significance at this time relate to global competitive pricing, customer financial stability, customer schedule volatility, potential declines in the production of cars and light trucks, the related impact on demand for our products and the successful completion of our strategic and operating plans. Please refer to the company’s SEC filings, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, for a complete write-up on forward-looking statements and risk factors.
Revenues of $145.0M, 4.5% lower than Q408 Unit shipments at 2.4M, 9.8% higher than Q408 Revenue down $6.9M, due principally to decrease in aluminum pass-through pricing Gross profit of $12.2M, or 8.4% of revenues, up $15.8M from gross loss of $3.6M in Q408 Income before taxes and equity earnings of $7.3M, versus loss of $16.9M in Q408 Joint venture operating losses continued in Q409, including a $14.4M impairment charge Q4 2009 Highlights
Gas Contracts Marked to Market net positive $484,000 US gas contracts marked down in Q1 are marked up Certain Mexico gas contracts marked down in Q2 marked up Severance costs of $149,000 Costs related to plant closures (equipment dismantling and disposition, facility cleanup, etc.) of $4.7M, principally for the California facility Similar costs as above in Q408 totaled $5.4M Q4 2009 Non-Operating Items
Cash flow from operations increased $9.5M during Q409 to $23.2M for the year 2009 Working capital and current ratio remain strong at $241.4M and 4.6:1 at year-end Pre-petition accounts receivable from GM and Chrysler have all been collected Inventories decreased $22.5M from a year ago Balance Sheet–Cash Flow Balance Sheet Management Remains a Priority
4th Quarter 2009 Overview Unaudited
Year 2009 Overview Unaudited
Summary Balance Sheets Unaudited
Summary Cash Flow Statements Unaudited
Volumes continued to increase during Q409 compared to the lows in the first half of 2009 Customer demand continues thus far in the current quarter Steps taken to reduce and manage costs while right-sizing the organization contributed to overall margin improvement in Q409 We will continue to monitor workforce and production cost increases very closely Cash and overall balance sheet management continue to be high priorities Conclusion
This slide presentation contains a non-GAAP financial measure on page 8, “income (loss) before taxes, equity earnings and non-operating items”, determined by methods other than in accordance with generally accepted accounting principles. The most comparable GAAP financial measure to this measure is “income (loss) before income taxes and equity earnings”. Management uses this non-GAAP financial measure to assess the performance of Superior’s core business. Superior believes this non-GAAP financial measure provides meaningful additional information about Superior’s operating results, because these non-operating items are often episodic in nature and can obscure our core operating results. This non-GAAP financial measure should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. Non-GAAP Financial Measures