Company: SSUP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000950170-25-069257
Chunk: 8

Company: SUPERIOR INDUSTRIES INTERNATIONAL INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 8
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 certain customers in North America of their intent to resource to other suppliers substantially all outstanding purchase orders in the near-term with a minimal wind-down period and to not issue any additional purchase orders to the Company thereafter. Prior to these notifications, the Company estimated these customers to represent approximately 33% of its projected consolidated net sales for the 2025 fiscal year. These customers represented approximately 40% of the Company’s consolidated net sales for the year ended December 31, 2024, and approximately 36% of the Company’s consolidated net sales for the year ended December 31, 2023. Refer to Note 16 “Subsequent Events” for additional information. Additionally, in May 2025 the financial institutions that are the counterparties to the Company’s factoring arrangements suspended its use of these programs.  The Company has historically met its cash requirements and funded its operations from a combination of cash and cash equivalents, cash generated from operating activities, cash from its debt facilities, and cash from the sale of trade receivables under its factoring arrangements. Subsequent to March 31, 2025, the Company borrowed $42.5 million on its revolving credit facility, which represents all available capacity on the facility, as these actions described above are expected to significantly affect the Company’s ability to generate cash from operating activities or from the sale of trade receivables in the near term. Based on its current estimates and forecasts, including consideration of the amount drawn on the revolving credit facility, the Company does not expect that it will have the cash and cash equivalents or sufficient liquidity to fund its operations and meet its obligations as they become due over the next twelve months from the issuance date of these unaudited condensed consolidated financial statements. Additionally, the Company expects it will not be able to meet its financial covenants under its Credit Agreements as early as June 30, 2025, if it does not obtain additional sources of funding, amend the applicable provisions in its Credit Agreements or obtain waivers with respect thereto prior to that date. Therefore, these adverse conditions and events described above raise substantial doubt about the Company’s ability to continue as a going concern as of the issuance date.