Superior Industries International Inc

first quarter 2025 earnings call. We are joined this morning by Magie Aboulaben, President and CEO, Dan Lee, Senior Vice President and CFO. All lines have been placed on mute to prevent any background noise. Thank you. I'll now hand the call over to Dan Lee. Please go ahead.

Good morning and welcome to our first quarter 2025 earnings conference call. During our call this morning, we will be referring to our earnings presentation, which is available on the Investor Relations section of Superior's website. I am joined on the call by Manasi Bulban, our President and Chief Executive Officer. Before I turn the call over to Manasi, I remind everyone that any forward-looking statements contained in this presentation or commented on today are subject to the State Harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to slide two of this presentation for the full safe harbor statement and to the company's SEC filing, including in the company's current annual report on Form 10-K and the current quarter's Form 10-Q for a more complete discussion of forward-looking statements and risk factors. We will also be discussing various non-GAAP measures today. 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 measure can be found in the appendix of this presentation. I now will turn the call over to Mahsi to provide a business and portfolio update. Mahsi?

Thanks, Dan. Hello, everyone, and welcome to our first quarter 2025 earnings call. Let's begin with an overview of the first quarter on slide four. We delivered a good start to 2025 despite a challenging macroeconomic environment. Our value-added sales outperformed the market driven by our leading product portfolio, while our teams continued focus on execution and cost reduction delivered results. Further, during the quarter, we saw evidence of how our competitively advantaged local-for-local footprint is paying dividends. As the broader industry responds to terror pressure, especially from China and Morocco, we are seeing an intensified urgency from OEMs to localize production in region. As they seek more cost-effective manufacturing partners in both North America and Europe, More than ever, our local-for-local manufacturing footprint in Mexico and Poland is creating tremendous opportunity. We have seen an unprecedented level of hoarding activity in recent months. In fact, year-to-date, we have hoarded on more than 53 million lifetime wheels. I will speak more about this in a bit. while tariff tailwinds are accelerating localization momentum in North America and Europe. In favor of Superior, we experienced a setback in April as we were notified by certain customers in North America who undertook a major global sourcing activity of their intent to resource existing contracts with minimal wind-down notice. This unfortunately represented 33% of our expected revenue in 2025. As such, we immediately shifted focus to working to secure short-term liquidity to mitigate risk to our customers and suppliers and secure the commitment from our term loan lenders, providing access of up to $70 million of additional term loans under our existing credit agreement. This is obviously subject to satisfaction of certain conditions. We are also working towards obtaining covenant relief from our lenders and are having advanced discussions regarding a broader recapitalization transaction with our lenders and preferred shareholders. This is to significantly deliver the balance sheet by eliminating the preferred equity instrument and reducing our outstanding debt. This will be done through a debt for equity exchange leaving superior with a strong capital structure. It's implemented as contemplated. This recapitalization transaction is expected to provide Superior with the financial strength to execute our dose strategies and position us as a premier wheel solutions provider with a competitively advantaged localized footprint and market-leading portfolio of products. We have made progress in support of our short-term liquidity position, given support from our lenders, and we are executing self-help liquidity measures, including working capital and capital expenditure reductions. We will also continue working with our lenders and preferred shareholders towards a transaction design to deliver a deleveraged company with financial strength to capitalize on the tremendous opportunities ahead. Turning to slide five, I spoke briefly regarding our potential transaction. You may recall last year in August 2024, we successfully refinanced our debt, which was a key milestone for Superior and a testament to our company's potential to deliver long-term growth. The result was a stronger financial profile, $117 million reduction in total debt, and the extension of our debt maturities to the end of 2028. Now, as you can see on this slide, the contemplated transaction is designed to significantly reduce our debt burden while positioning our company with additional financial flexibility for future opportunities.