Company: SSUP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000950170-25-069257
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Company: SUPERIOR INDUSTRIES INTERNATIONAL INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1A
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There have been no changes to the risk factors as described in Part I, Item 1A, “Risk Factors” in our 2024 Form 10-K, except as follows:

Our current cash and liquidity projections raise substantial doubt about our ability to continue as a going concern. 

A limited number of customers represent a large percentage of our consolidated net sales. As discussed in Item 1. “Note 1. Description of Business and Basis of Presentation” and in Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Overview – Recent Customer Resourcing Actions” and “– Financial Condition, Liquidity and Capital Resources,” subsequent to March 31, 2025, certain customers in North America notified us of their intent to resource to other suppliers all outstanding purchase orders during the month of April 2025 with a minimal wind-down period and to not issue any additional purchase orders to us thereafter. Prior to these notifications, we estimated these customers to represent approximately 33% of our projected consolidated net sales for the 2025 fiscal year. These customers represent 40% of our consolidated net sales for the year ended December 31, 2024 and approximately 36% of our consolidated net sales for the year ended December 31, 2023. Additionally, in May 2025 the financial institutions that are the counterparties to our factoring arrangements suspended our use of these programs. These actions are expected to significantly affect our ability to generate cash from operating activities or from the sale of trade receivables in the near term. Therefore, we have evaluated whether these events, considered in the aggregate, give rise to substantial doubt about our ability to continue as a going concern over the next twelve months. Based on our current estimates and forecasts, including the amount drawn on our revolving credit facility on April 7, 2025, we do not expect to have the cash and cash equivalents or sufficient liquidity to fund our operations and meet our obligations as they become due over the next twelve months and we expect that we will not be able to meet our financial covenants under our Credit Agreements as early as June 30, 2025, if we do not obtain additional sources of funding, amend the applicable provisions in our Credit Agreements or obtain waivers with respect thereto prior to that date. Therefore, these adverse events and conditions raise substantial doubt about our ability to continue as a going concern as of the date of this Quarterly Report on Form 10-Q. Although we are actively pursuing strategies to