Superior Industries International, Inc. (NYSE:SUP) Q1 2023 Results Conference Call May 4, 2023 8:30 AM ET

Company Participants

Majdi Abulaban - President and CEO

Tim Trenary - EVP and CFO

Conference Call Participants

Gary Prestopino - Barrington Research

Mike Ward - Benchmark

Operator

Welcome to the Superior Industries First Quarter 2023 Earnings Call. We are joined this morning with Majdi Abulaban, President and CEO; and Tim Trenary, Executive Vice President and CFO.

My name is Carolyn, and I will be your coordinator for today’s event. Please note, this call is being recorded. [Operator Instructions]

I will now hand over the call to your host, Tim Trenary to begin today’s conference. Thank you.

Tim Trenary

Thank you, Carolyn. Good morning, everyone, and welcome to our first quarter 2023 earnings call. During our call this morning, we will be referring to our earnings presentation, which, along with our earnings release, is available on the Investor Relations section of Superior’s website. I am joined on the call by Majdi Abulaban, our President and Chief Executive Officer.

Before I turn the call over to Majdi, I would like to remind everyone that any forward-looking statements contained in this presentation or commented on today are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to Slide 2 of this presentation for the full safe harbor statement and to the company’s SEC filings, including the company’s current annual report on Form 10-K for a more complete discussion of forward-looking statements and risk factors.

We will also be discussing various non-GAAP measures today. These non-GAAP measures exclude the impact of certain items and, therefore, are not calculated in accordance with U.S. GAAP. Reconciliations of these measures to the most directly comparable U.S. GAAP measures can be found in the appendix of this presentation.

With that, I’ll turn the call over to Majdi to provide the business and portfolio update.

Majdi Abulaban

Thanks. Thanks, Tim, and thanks, everyone, for joining our call today to review our first quarter results. I will begin on Slide 5. We are pleased with our first quarter results. We delivered strong growth in a tough environment and maintain focus on customer recoveries while generating cash to continue to enhance our financial flexibility. Although our environment remains volatile, we have seen a modest recovery in industry production in North America and Europe as supply chain constraints begin to ease. That said, a significant portion of industry growth in North America was driven by fleet sales to rental companies, an area where Superior has limited content. Further, we have seen declines in the aftermarket in Europe due to one more winter and other factors I’ll discuss later. That said, in the quarter, we grew year-on-year FX-adjusted value-added sales by 9% and content per wheel by 16%.