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Superior Industries International Inc. (NYSE:SUP), a key player in the automotive parts sector, announced the retirement of their CFO, C. Timothy Trenary, effective September 30, 2024. The company disclosed this executive change in a recent SEC filing, stating that Trenary's decision to retire was due to personal reasons and not due to any disagreements with company operations, policies, or practices.
Trenary, who has significantly contributed to the company, will continue to offer his expertise through a consulting agreement post-retirement. This agreement, effective the date of his retirement, will last nine months with a possible extension upon mutual consent.
During this period, Trenary will receive a monthly compensation of $40,000 and additional benefits, including medical coverage under COBRA.
In light of Trenary's retirement, Dan Lee, formerly Vice President of Finance and CFO Europe, has been appointed as Senior Vice President and Chief Financial Officer starting on October 1, 2024. Lee, who has served as the company's Interim Corporate Controller and has extensive experience in finance roles within the automotive sector, holds a Bachelor's degree in Accounting and an MBA.
The company's filing mentioned no familial or transactional relationships between Lee and other company executives or directors. Lee's new role comes with an annual base salary of $500,000 and the potential for performance-based bonuses, including a long-term cash performance bonus.
In other recent news, Superior Industries International, Inc. has made strategic financial moves, including the refinancing of its Senior Secured Term Loan, which has been upsized from $394 million to $520 million, and the redemption of its outstanding Senior Notes.
The refinancing effort has been supported by Oaktree Capital Management, L.P., among other investment firms. This move has reduced the company's total debt from $627 million to $521 million, strengthening its balance sheet and enhancing financial flexibility.
In their Q2 2024 financial results, Superior Industries reported a decrease in net sales to $319 million, primarily due to lower aluminum costs and the deconsolidation of SPG. Despite the net sales decline, the company saw a significant expansion in adjusted EBITDA, which rose to $40 million. However, a net loss of $11 million was reported for the quarter.
The company has also announced a record wheel program with Volvo (OTC:VLVLY) and received an A rating from Audi in research and development. They revealed plans to retire senior unsecured notes as part of addressing its capital structure.
The company's full-year net sales for 2024 are projected between $1.35 billion and $1.41 billion, with adjusted EBITDA forecasted to be $150 million to $165 million. These recent developments reflect Superior Industries' commitment to sustained growth and profitability.
InvestingPro Insights
As Superior Industries International Inc. (NYSE:SUP) navigates through its executive transition, investors and stakeholders are keeping a close eye on the company's financial health and market performance. According to recent data from InvestingPro, Superior Industries has a market capitalization of $97.06 million and is facing challenges with its profitability, as reflected in its negative P/E ratio of -0.55. The company's gross profit margin stands at 7.73% over the last twelve months as of Q2 2024, which aligns with the InvestingPro Tip highlighting weak gross profit margins.
InvestingPro Tips further suggest that the stock's price movements have been quite volatile, and analysts do not foresee the company turning a profit this year. These insights are crucial for investors considering the company's stock, especially in the context of the recent executive changes. It's worth noting that Superior Industries does not pay a dividend, which might be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on the company's financials and market predictions. With the upcoming earnings date set for October 30, 2024, investors may find value in keeping up with the latest metrics and expert assessments available on the platform.
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