Slides
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Full Year and Fourth Quarter 2024 Earnings Conference Call March 6, 2025
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Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation and webcast 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 “assumes,”, “may,” “should,” “could,” “will,” “expects,” “expected,” “seeks to,” “anticipates,” “plans,” “believes,” “estimates,” “foresee,” “intends,” “Outlook,” “guidance,” “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 2025 Outlook included herein, the increase in the cost of raw materials, labor and energy, supply chain disruptions, material shortages, higher interest rates, and the Russian military invasion of Ukraine (the “Ukraine Conflict”) on our future growth and earnings. These statements include our belief regarding general automotive industry market conditions and growth rates, as well as domestic and international economic conditions. 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. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect Superior. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. Superior disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law. Use of Non-GAAP Financial Measures In addition to the results reported in accordance with GAAP included throughout this earnings release, this release refers to the following non-GAAP measures: “Adjusted EBITDA,” defined as earnings before interest income and expense, income taxes, depreciation, amortization, restructuring charges and other closure costs and impairments of long-lived assets and investments, changes in fair value of embedded derivatives, acquisition and integration, certain hiring and separation related costs, proxy contest fees, gains and losses associated with early debt extinguishment and other refinancing costs, and accounts receivable factoring fees. “Adjusted EBITDA Margin” defined as Adjusted EBITDA as a percentage of Value-Added Sales. “Value-Added Sales,” defined as Net Sales less the value of aluminum and outsourced service provider costs that are included in Net Sales. “Value-Added Sales Adjusted for FX," which is also referred to as “Value-Added Sales Adjusted for Foreign Exchange,” defined as Value-Added Sales adjusted for the effects of foreign exchange translation. “Value-Added Sales Adjusted for FX and Deconsolidation,” which is also referred to as “Value-Added Sales Adjusted for Foreign Exchange and Deconsolidation,” defined as Value-Added Sales adjusted for the effects of foreign exchange translation and the effects of deconsolidating our German subsidiary. “Content per Wheel,” defined as Value-Added Sales Adjusted for Foreign Exchange on a per unit (wheel) shipment basis. “Free Cash Flow,” defined as Cash Flow Provided (Used) by Operating Activities less Cash Provided (Used) in Investing Activities less non-debt components of financing activities. “Unlevered Free Cash Flow,” defined as Cash Flow Provided (Used) by Operating Activities less Capital Expenditures plus Cash Interest Paid, net of Interest Income, and other refinancing costs. “Total Debt,” defined as total principal debt outstanding. “Net Debt,” defined as total principal debt outstanding, excluding debt issuance costs, less cash and cash equivalents. 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. In reliance on the safe harbor provided under section 10(e) of Regulation S-K, Superior has not quantitatively reconciled Net Income (the most comparable GAAP measure) to Adjusted EBITDA; Net Sales (the most comparable GAAP measure) to Value-Added Sales nor Cash Provided by Operating Activities (the most comparable GAAP measure) to Unlevered Free Cash Flow presented in the 2025 Outlook, as Superior is unable to quantify certain amounts included in these GAAP measures without unreasonable efforts and due to the inherent uncertainty regarding such variables. Superior also believes that such reconciliations would imply a degree of precision that could potentially be confusing or misleading to investors. However, the magnitude of these amounts may be significant. 2
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3 Agenda Introduction Dan Lee Senior Vice President and Chief Financial Officer Business Update Majdi Abulaban President and Chief Executive Officer Financial Review Dan Lee Senior Vice President and Chief Financial Officer Delivering innovative solutions
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NET SALES ADJUSTED EBITDA(1) FY 2024 VALUE-ADDED SALES ADJUSTED FOR FX & DECONSOLIDATION(1) Financial and Operational Highlights Positioned for future growth through operational discipline and strategic actions Maintained EBITDA Margin, Despite Softer Industry Production • Industry production down 4% year-over-year • FY 24 Adjusted EBITDA(1) Margin, 21%, consistent with FY 23 • Achieved customer price recoveries in 2024 • Realized partial benefits of the EU strategic cost actions 2025 Outlook • Anticipating growth over market and significant margin expansion in 2025 • Multi-faceted implications from geopolitics including tariffscould lead to OEMs accelerating localization in North America, favorable for Superior • Engaging in constructive advanced dialogues with preferred equity shareholders CONTENT PER WHEEL(1) 21% VAS(1) Margin TOTAL DEBT 2024 Financial and Operational Highlights $146M Achieved Key Milestone with Completion of Debt Refinancing • Attracted $520M in new capital, maturities extended to 2028 • Refinancing strengthens balance sheet and positions Superior for growth • Capital allocation focus shifting to cash flow generation to pay down debt • Reduction of Total Debt by $118M Down 4% year-over-year$690M $50.05 Up 33% since 2019 $520M $1.3B Down 9% year-over-year Down $118M year-over-year 4 Successful European Manufacturing Footprint Transformation • Strengthened competitive positioning in the wheel space • Expect to further capitalize on localization in low-cost Poland • Discussions with premium European OEMs continue • Warehousing operations relocation to be completed by mid-2025 (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures
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5 $146 $170 Europe Transformation and Cost Reductions Impact to 2025E Adj. EBITDA(1) Driving Improved Profitability Through: • Exited German manufacturing operations • Wheel transfer from Germany to Poland, resulting in lower cost-per-wheel • SG&A savings due to reduction of administrative functions globally • Improved utilization of Polish manufacturing facility +16% $ in millions (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures 2024 Adj. EBITDA(1) 2025 Adj. EBITDA(1) Outlook Midpoint Expecting to See Further Benefit from Global Restructuring and EU Transformation in 2025
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2023 2024 EU NA 6 Improving Global Margins Despite Industry Declines ✓ European Transformation Savings On-Track: ✓ Impact of wheel transfer to Poland ✓ SG&A savings due to European consolidation of administrative functions ✓ Fixed cost absorption and manufacturing performance ✓ Driving production efficiencies in Mexico ✓ Executing further Global SG&A and manufacturing overhead restructuring Making Progress on Critical Actions (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures Closing the Margin Gap Successfully Executing on Our Plan to Close Adj. EBITDA(1) Margin Gap Between Regions Improved Europe Cost per Wheel by 22% Reduced Global Overhead (SG&A and MSD) by 15%+ EU Slightly Above NA
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7 Tariffs – Multifaceted Impact on Superior U.S. Tariffs on Imported Aluminum Potential Tariff Risk Likely Financial Impact Incremental U.S. Tariffs on Imports from China Potential Mexico Tariffs on Chinese Imports Neutral Favorable Favorable Incremental Tariffs on Wheels from Morocco to Europe Favorable Tariffs Have Multifaceted Impact in the Wheel Space Impact on Overall Automotive Production Remains Unclear Potential U.S. Tariffs on EU Imports Favorable Potential U.S. Tariffs on Imports from Mexico Unfavorable
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Consistent Operational Performance Auto Industry Production Volume (1) Value-Added Sales, Value-Added Adjusted for FX and Adjusted EBITDA are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) Growth over Market (“GOM”) is based on Value-Added Sales Adjusted for FX, a non-GAAP financial measure (see page 2 for definition and the appendix for reconciliation to the most comparable GAAP measure), compared to North American and Western and Central European industry production as reported by IHS on February 17, 2025 * As reported in FY 2019 & 2024 8 SUP Value-Added Sales Adj.(1)* 34.1 29.8 FY 2019 FY 2024 SUP Adj. EBITDA(1) % of VAS(1) SUP Adj. EBITDA(1) % of Net Sales (in millions) 20.0% 22.1% 25.2% 21.3% 21.2% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 ~12% Average $755 $690 FY 2019 FY 2024 ($ in millions) 4% GOM(2) 22% Average Includes inflation recoveries from FY 2021 Industry Yet to Fully Recover to 2019 Levels Consistently Delivering Growth Over Market(2) Strong VAS Margins Top Quartile Auto Component Industry Margins 11.8% 12.0% 11.8% 11.5% 11.5% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
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Long-Term Content Growth Driven By Disciplined Execution Long-Term Content per Wheel(1)(2) Growth* $37.59 $50.05 2019 2024 ✓ Aligning Pricing to Offset Rising Input Costs ✓ Broad Portfolio and Innovative Technologies Continue to Drive Content Growth (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable (2) Based on Value-Added Sales Adjusted for FX * As reported in FY 2019 & 2024 Focused on High-Demand Premium Products 9 60+ Global Product Launches in 2024 Select Recent Launches ~70% Lightweighting Technologies ~20% Electric Vehicles ~80% Larger Diameter Wheels (≥19”) ~60% Premium Finishes Audi Q5 GM Optiq S650 MustangLand Rover Defender Light Weighting ElectrificationAerodynamics Larger Wheel Size Standard/Economy Premium Finishes
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10 Operational Excellence Differentiated Foundation Profitable Growth • Aligned with Industry Macro Trends • Industry Leading Premium Portfolio • Diversified Customer Base • Competitive Local Footprint • Cost Discipline • Quality • Commercial Discipline • Continuous Improvement • Global Procurement Savings • Premium Product Capabilities • Growth Over Market • Bookings • Portfolio Expansion • EV Penetration • Green Products • Launches • “Local for Local” Footprint Shareholder Value Disciplined Execution EXECUTING ON OPERATIONAL EXCELLENCE TO SUPPORT PROFITABLE GROWTH (1) Adjusted EBITDA is a non-GAAP financial measure; see page 2 for definition and the appendix for reconciliation to the most comparable GAAP measure Emphasis on Cash Flow / Adjusted EBITDA(1) Generation Premium / Differentiated Technology Offering Intimate Customer Relationships
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FY 2025 Industry Light Vehicle Production Outlook(1) (1) Source: Management estimates. Europe based on Western and Central Europe. (2) Adjusted EBITDA is a non-GAAP financial measure; Superior has not quantitatively reconciled from net income, the most comparable GAAP measure, to Adjusted EBITDA presented in the 2025 outlook, 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’s 2025 Outlook Full Year 2025 Outlook Facing challenging operating environment due to elevated input costs, volatile industry production Superior is positioned to benefit in the event industry production exceeds expectations 11 Expecting decline in industry production volume Adjusted EBITDA(2) of $160M - $180M Unlevered Free Cash Flow of $110M - $130M North America vs. 2024 FY Slightly negative to flat Europe vs. 2024 FY Slightly negative
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Financial Review
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13 Fourth Quarter and Full Year 2024 Financial Summary (1) Value-Added Sales and Adjusted EBITDA are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) See reconciliation from Net Income to Diluted EPS in the appendix of this presentation $ in millions, except earnings per share Twelve Months 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Sales North America 183.2$ 179.8$ 786.1$ 794.4$ Europe 127.1 128.9 481.2 590.9 Global 310.3$ 308.7$ 1,267.3$ 1,385.3$ Value-Added Sales (1) North America 92.4$ 93.3$ 405.9$ 403.7$ Europe 75.3 75.4 285.3 343.9 Global 167.7$ 168.7$ 691.2$ 747.6$ Net Income (Loss) (9.6)$ (2.5)$ (78.2)$ (92.9)$ Adjusted EBITDA(1) 34.7$ 23.1$ 146.3$ 159.2$ % of Value-Added Sales(1) 21% 14% 21% 21% Diluted (Loss) Earnings Per Share (2) (0.75)$ (0.44)$ (4.25)$ (4.73)$ Three Months
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14 Fourth Quarter 2024 Year-over-Year Sales Bridge (1) Non-GAAP measure; see page 2 for definition and the appendix for reconciliation to the most comparable GAAP measure ($ and units in millions) • Volume / Price / Mix: Lower retroactive price increases of cost inflation from customers and lower unit sales • FX: Neutral • Aluminum: Pass through of higher cost of aluminum (1)(1) Change in Value-Added Sales(1)
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15 FY 2024 Year-over-Year Sales Bridge (1) (1) • Volume / Price / Mix: Lower unit sales and lower recovery of cost inflation from customers, partially offset by favorable product mix • FX: Neutral • Aluminum: Lower pass through of aluminum costs to customers $ and units in millions Change in Value-Added Sales(1) (1) Non-GAAP measure; see page 2 for definition and the appendix for reconciliation to the most comparable GAAP measure
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16 Fourth Quarter 2024 Year-over-Year Adjusted EBITDA(1) Bridge (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) Net manufacturing performance, increased/decreased costs and pass through of cost inflation to customers • Volume / Price / Mix: Lower unit sales, partially offset by favorable product mix • FX: Neutral • Metal Timing: Tendency to net over time • Performance(2): Enhanced cost performance in both regions including inflation recoveries from customers Adjusted EBITDA(1) as % of Value-Added Sales(1) 13.7% 20.7% ($ in millions)
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17 FY 2024 Year-over-Year Adjusted EBITDA(1) Bridge 21.3% 21.2% $ in millions Adjusted EBITDA(1) as % of Value-Added Sales(1) (1) Value-Added Sales and Adjusted EBITDA are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) Manufacturing and other performance net of recovery of cost inflation from customers • Volume / Price / Mix: Lower unit sales and price, partially offset by favorable product mix • Performance / Inflation Recoveries(2): Enhanced cost performance and structure costs in H2 offset by lower recovery of cost inflation from customers mainly impacting H1
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18 Fourth Quarter and Full Year 2024 Unlevered Free Cash Flow(1) (1) Free Cash Flow and Unlevered Free Cash Flow are non-GAAP financial measures; see page 2 for definition and the appendix for reconciliation to the most comparable GAAP measure Fourth Quarter Q4’24 Q4’23 Full Year FY’24 FY’23 Cash Flow Provided by Operating Activities • Higher profitability offset by change in working capital $26M $44M • Lower profitability, cash outflow from working capital items and refinancing fees $18M $64M Net Cash Used in Investing Activities • Reducing the capital intensity of the business ($7M) ($12M) • Reducing the capital intensity of the business ($28M) ($46M) Cash Payments for Non-Debt Financing Activities • Timing of dividend payments - ($7M) • Timing of dividend payments ($5M) ($17M) Free Cash Flow(1) $19M $26M ($15M) $2M Unlevered Free Cash Flow(1) $36M $50M $55M $80M
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19 Capital Structure as of December 31, 2024 • Cash of $40M • Unlevered Free Cash Flow(2) remains a top priority Capital Structure (in $M) (1) Excluding Debt Issuance Cost (2) Net Debt and Unlevered Free Cash Flow are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAPmeasures *Net Debt in Q3 2024 was $497M Continued Focus on Deleveraging Balance Sheet – $17M Net Debt Reduction in Q4 2024* TotalCash $40 $60M Revolving Credit Facility - T ermLoan $519 Finance Leases $1 Total Senior Secured Debt $520 Total Debt(1) $520 Net Debt(2) $480 Preferred Equity $288
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20 Debt Maturity Profile as of December 31, 2024 Note: The quarterly $1.3M senior secured term loan payments represent the mandatory principal payments that started in Q4 2024. $ in millions • Refinancing in 2024 strengthened financial flexibility and supports future growth trajectory Debt Maturities $501 $0 $200 $400 $600 2025 2026 2027 2028 SENIOR SECURED TERM LOAN $7 $6 $5
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21 Full Year 2025 Financial Outlook (1) Non-GAAP financial measure; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures Commentary Metric Net Sales $1.30B – $1.40B • Net Sales & Value-Added Sales(1) – Outlook reflects the realization of the full impact of the transferred wheels from Germany to Poland, and light vehicle production in our markets to be consistent with IHS forecasts • Adjusted EBITDA(1) – Outlook driven by realizing the benefits of the additional remaining wheels that transferred from Germany to Poland and the cost reduction initiatives that were announced in Q4 2024 • Unlevered Free Cash Flow(1) – Highlights the cash generating power of the business, driven by improved profitability, improved working capital and lower cash costs related to restructuring • Capital Expenditures – The Company continues to strategically invest in the business, specifically targeting additional automation to drive additional cost reduction Value-Added Sales(1) $650M – $700M Adjusted EBITDA(1) $160M – $180M Unlevered Free Cash Flow(1) $110M – $130M Capital Expenditures ~$35M 2025 Outlook
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Appendix
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23 Income Statement (1) Value-Added Sales, Value-Added Sales Adjusted for Foreign Exchange, and Adjusted EBITDA are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures ($ in millions, except earnings per share) Unaudited 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Actual Actual Actual Actual Net Sales 310.3$ 308.7$ 1,267.3$ 1,385.3$ Cost of Sales 281.2 293.9 1,156.8 1,269.6 Gross Profit 29.1 14.8 110.5 115.7 SG&A Expenses 15.1 34.2 81.2 87.5 Loss on deconsolidation of subsidiary - - - 79.6 Income (Loss) From Operations 14.0$ (19.4)$ 29.3$ (51.4)$ Interest Expense, net (17.5) (15.0) (67.1) (62.1) Loss on extinguishment of debt - - (13.1) - Other Expense, net (4.5) (0.7) (1.8) (3.3) Income (Loss) Before Income Taxes (8.0)$ (35.1)$ (52.7)$ (116.8)$ Income Tax Provision (1.6) 32.6 (25.5) 23.9 Net Income (Loss) (9.6)$ (2.5)$ (78.2)$ (92.9)$ Basic (Loss) Earnings Per Share (0.75)$ (0.44)$ (4.25)$ (4.73)$ Diluted (Loss) Earnings Per Share (0.75)$ (0.44)$ (4.25)$ (4.73)$ Value-Added Sales (1) 167.7$ 168.7$ 691.2$ 747.6$ Value-Added Sales Adjusted for Foreign Exchange (1) 167.9$ 168.7$ 690.4$ 747.6$ Adjusted EBITDA (1) 34.7$ 23.1$ 146.3$ 159.2$ % of Value-Added Sales 21% 14% 21% 21% Three Months Twelve Months
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24 Balance Sheet ($ in millions) Unaudited ASSETS 12/31/2024 12/31/2023 Cash & Cash Equivalents 40.1$ 201.6$ Accounts Receivable, net 69.5 56.4 Inventories, net 145.7 144.6 Income Taxes Receivable 11.4 1.6 Current Derivative Financial Instruments 22.6 38.3 Other Current Assets 19.5 17.4 Total Current Assets 308.8 459.9 Property, Plant & Equipment, net 329.9 398.6 Deferred Income Taxes, net 39.0 52.2 Intangibles, net 12.6 33.2 Derivative Financial Instruments 14.7 40.5 Other Noncurrent Assets 35.1 46.2 Total Assets 740.1$ 1,030.6$ LIABILITIES & EQUITY Accounts Payable 120.4$ 124.9$ Short-term Debt 7.9 5.3 Accrued Expenses 65.7 66.9 Income Taxes Payable 1.9 1.8 Total Current Liabilities 195.9 198.9 Long-term Debt (Less Current Portion) 481.4 610.6 Non-Current Liabilities 50.0 57.9 Redeemable Preferred Shares 288.5 248.2 Noncontrolling Redeemable Equity 0.5 0.9 Total Shareholders' Equity (Deficit) (276.2) (85.9) Total Liabilities and Shareholders’ Equity (Deficit) 740.1$ 1,030.6$
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25 Statement of Cash Flow ($ in millions) Unaudited 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Income (Loss) (9.6)$ (2.5)$ (78.2)$ (92.9)$ Depreciation and Amortization 20.9 23.1 86.4 93.0 Income tax, Non-cash Changes 4.7 (36.6) 21.0 (27.3) Stock-based Compensation 2.9 3.1 9.0 7.5 Amortization of Debt Issuance Costs 1.8 1.2 5.8 4.8 Loss on Deconsolidation of Subsidiary - - - 79.6 Loss on Extinguishment of Debt - - 13.1 - Other Non-cash Items (0.3) 14.3 (9.3) 9.6 Changes in Operating Assets and Liabilities: - - Accounts Receivable 34.9 56.9 (19.5) 18.9 Inventories (6.2) 21.3 (8.9) 13.1 Other Assets and Liabilities 1.6 (15.5) 7.7 (2.9) Accounts Payable (17.7) (22.5) 3.7 (27.6) Income Taxes (6.8) 1.5 (12.5) (11.4) Net Cash Provided (Used) By Operating Activities 26.2 44.3 18.3 64.4 Capital Expenditures (7.3) (11.7) (28.3) (41.2) Deconsolidation of Subsidiary Cash - - - (4.4) Net Cash Provided (Used) By Investing Activities (7.3) (11.7) (28.3) (45.6) Proceeds from the Issuance of Long-term Debt - - 337.3 - Repayments on Term Loans and Notes (1.3) (2.4) (467.6) (16.4) Proceeds from Borrowings on Revolving Credit Facility 5.0 - 33.0 - Repayments of Borrowings on Revolving Credit Facility (5.0) - (33.0) - Cash Dividends Paid - (6.8) (3.4) (13.6) Financing Costs Paid and Other (0.2) (0.1) (9.0) (0.2) Redemption Premium Paid on Term Loan Repayment - - (3.7) - Payments Related to Tax Withholdings for Stock-Based Compensation - - (1.3) (3.3) Finance Lease Payments (0.1) (0.1) (0.6) (0.7) Net Cash Flow Provided (Used) By Financing Activities (1.6) (9.4) (148.3) (34.2) Effect of Exchange Rate on Cash (1.5) 1.9 (3.2) 4.0 Net Change in Cash 15.8 25.1 (161.5) (11.4) Cash - Beginning 24.3 176.5 201.6 213.0 Cash - Ending 40.1$ 201.6$ 40.1$ 201.6$ Supplemental Cash Flow Information: Cash paid during the period for interest 16.2$ 19.2$ 62.7$ 62.3$ Cash paid during the period for taxes, net of refunds 2.9$ 2.1$ 16.2$ 14.5$ Non-cash Investing Activities Period end balance of accounts payable for property, plant, and equipment 3.8$ 4.4$ 3.8$ 4.4$ Non-cash Financing Activities Debt modification -$ -$ 169.7$ -$ Three Months Twelve Months
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26 Earnings per Share Calculation (1) Basic earnings per share is computed by dividing net income (loss), after deducting preferred dividends and accretion and European non-controlling redeemable equity dividends, by the weighted average number of common shares outstanding. In calculating diluted earnings per share, the weighted average shares outstanding considers the dilutive effect of outstanding stock options, and time and performance based restricted stock units under the treasury stock method. Stock-based compensation shares have not been included in the diluted earnings per share because they would be anti-dilutive for the years ended December 31, 2024 and 2023. The redeemable preferred shares are also not included in the diluted earnings per share for the periods ended December 31, 2024 and 2023 because the redeemable preferred shareholders do not have a contractual obligation to share in the Company's losses with common stockholders. ($ and shares in millions, except earnings per share) Unaudited 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Income (Loss) Attributable to Common Shareholders (9.6)$ (2.5)$ (78.2)$ (92.9)$ Redeemable Preferred Stock Dividends and Accretion (12.0) (10.0) (43.6) (39.0) Basic Numerator (21.6)$ (12.5)$ (121.8)$ (131.9)$ Weighted Avg. Shares Outstanding - Basic 28.9 28.1 28.7 27.9 Dilutive Effect of Common Share Equivalents - - - - Weighted Avg. Shares Outstanding - Diluted 28.9 28.1 28.7 27.9 Basic Earnings (Loss) Per Share(1) (0.75)$ (0.44)$ (4.25)$ (4.73)$ Diluted Earnings (Loss) Per Share (1) (0.75)$ (0.44)$ (4.25)$ (4.73)$ Three Months Twelve Months
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27 Reconciliation of Non-GAAP Financial Measures ($ in millions, except per wheel, and units in thousands) Unaudited (1) Value-Added Sales, Value-Added Sales Adjusted for Foreign Exchange, Value-Added Sales Adjusted for Foreign Exchange and Deconsolidation, Content per Wheel, and Adjusted EBITDA are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) Content per wheel is stated in currency rates prevailing in the corresponding periods of 2023. Adjusted EBITDA (1) 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Income (Loss) $ (9.6) $ (2.5) $ (78.2) $ (92.9) Adjusting Items: - Interest Expense, net 17.5 15.0 67.1 62.1 - Income Tax Provision (Benefit) 1.6 (32.6) 25.5 (23.9) - Depreciation 16.0 18.2 66.9 73.5 - Amortization 4.8 4.9 19.5 19.5 - Factoring Fees 1.7 1.4 5.9 4.2 - Loss on Extinguishment of Debt and Other Refinancing Costs 1.1 - 19.9 - - Loss on Deconsolidation of Subsidiary - - - 79.6 - Restructuring Costs 4.4 0.1 7.0 8.1 - Restructuring Related Costs (0.7) 20.5 15.1 29.5 - Change in Fair Value of Embedded Derivative Liabilities (2.1) (3.4) (2.4) (3.4) - Other Costs - 1.5 - 2.9 44.3 25.6 224.5 252.1 Adjusted EBITDA (1) $ 34.7 $ 23.1 $ 146.3 $ 159.2 Three Months Year Ended Year Ended 4Q 2024 4Q 2023 YTD 2024 YTD 2023 YTD 2019 Net Sales 310.3$ 308.7$ 1,267.3$ 1,385.3$ 1,372.5$ Less: Aluminum, and Outside Service Provider Costs (142.6) (140.0) (576.1) (637.7) (617.2) Value-Added Sales (1) 167.7 168.7 691.2 747.6 755.3 Currency Effect on Current Period Value-Added Sales 0.2 - (0.8) - (31.9) Value-Added Sales Adjusted for Foreign Exchange (1) 167.9 168.7 690.4 747.6 723.4 Deconsolidation Effect - 5.6 - (26.7) Value-Added Sales Adjusted for Foreign Exchange and Deconsolidation (1) 167.9$ 174.3$ 690.4$ 720.9$ Wheels Shipped 3,321 3,495 13,794 14,562 19,246 Content per Wheel (1) (2) 50.56$ 48.27$ 50.05$ 51.34$ 37.59$ Three Months Year Ended
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28 Reconciliation of Non-GAAP Financial Measures (continued) ($ in millions) Unaudited (1) Net Debt, Free Cash Flow, and Unlevered Free Cash Flow are non-GAAP financial measures; see page 2 for definitions and the appendix for reconciliations to the most comparable GAAP measures (2) Excluding Debt Issuance Cost Free Cash Flow (1) 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Cash Provided (Used) By Operating Activities 26.2$ 44.3$ 18.3$ 64.4$ Net Cash Provided (Used) By Investing Activities (7.3) (11.7) (28.3) (45.6) Cash Payments for Non-debt Financing Activities - (6.8) (4.7) (16.9) Free Cash Flow (1) 18.9$ 25.8$ (14.7)$ 1.9$ Unlevered Free Cash Flow (1) 4Q 2024 4Q 2023 YTD 2024 YTD 2023 Net Cash Provided (Used) By Operating Activities 26.2$ 44.3$ 18.3$ 64.4$ Capital Expenditures (7.3) (11.7) (28.3) (41.2) Refinancing Costs 1.1 - 6.8 - Cash Interest Paid, Net of Interest Income 16.0 17.5 58.6 56.8 Unlevered Free Cash Flow (1) 36.0$ 50.1$ 55.4$ 80.0$ Three Months Twelve Months Three Months Twelve Months Net Debt (1) (2) 12/31/2024 12/31/2023 12/31/2022 12/31/2021 Long Term Debt (Less Current Portion)(2) 511.9$ 632.2$ 641.5$ 610.2$ Short Term Debt (2) 7.9 5.3 5.9 6.1 Total Debt(2) 519.8 637.5 647.4 616.3 Less: Cash and Cash Equivalents (40.1) (201.6) (213.0) (113.5) Net Debt (1) 479.7$ 435.9$ 434.4$ 502.8$