Financial Performance - Net sales for Q1 2025 were $317.4 million, a decrease of 11.5% compared to $358.9 million in Q1 2024[19] - Gross profit for Q1 2025 was $99.6 million, down from $110.4 million in Q1 2024, reflecting a gross margin decline[19] - The company reported a net loss of $13.2 million in Q1 2025, compared to a net loss of $6.3 million in Q1 2024, indicating a worsening financial performance[19] - Operating cash flow for Q1 2025 was $5.5 million, significantly lower than $28.2 million in Q1 2024[24] - The company reported an operating loss of $6.7 million in Q1 2025, compared to operating income of $5.9 million in Q1 2024, primarily due to lower sales volume and higher restructuring expenses[154] - For Q1 2025, the company reported a net loss of $13.2 million, compared to a net loss of $6.3 million in Q1 2024[99] - Basic and diluted loss per share for Q1 2025 was $0.14, compared to $0.07 in Q1 2024[99] Assets and Liabilities - Total current assets increased to $742.7 million as of March 31, 2025, compared to $731.5 million at the end of 2024[17] - Total liabilities rose to $1,662.5 million as of March 31, 2025, up from $1,622.3 million at the end of 2024[17] - Cash and cash equivalents increased to $134.6 million at the end of Q1 2025, compared to $74.1 million at the end of 2024[17] - As of March 31, 2025, total debt increased to $936.5 million from $839.7 million as of December 31, 2024, representing an increase of approximately 11.5%[45] - The company’s long-term debt, net of current portion, increased to $897.8 million as of March 31, 2025, from $783.3 million as of December 31, 2024[45] Acquisitions and Investments - The company incurred $10.1 million in costs related to acquisitions during Q1 2025[24] - The company completed the acquisition of Buro Seating Limited Partnership for AU$16.2 million (US$10.1 million) on February 28, 2025, expanding its presence in Australia and New Zealand[41] - Cash used in investing activities included $10.1 million for the acquisition of Buro Seating and capital expenditures[185] Stock and Shareholder Actions - The company repurchased $15.0 million of common stock during Q1 2025[24] - During Q1 2025, the company repurchased and retired 3.2 million shares under its stock repurchase program[101] - The company repurchased a total of 3,205,344 shares during the quarter at an average price of $4.68 per share, with approximately $75.6 million remaining under the share repurchase authorization[204] Segment Performance - The Americas segment reported net sales of $173.9 million in Q1 2025, down from $197.2 million in Q1 2024, while the International segment saw a decline from $161.7 million to $143.5 million[138] - For the three months ended March 31, 2025, net sales decreased by $41.5 million, or 11.6%, driven by lower volume and adverse foreign exchange impacts[158] - Comparable sales for the same period were $329.1 million, reflecting a decrease of $29.8 million or 8.3%[190] Cost and Expense Management - Stock-based compensation expense for the three months ended March 31, 2025, was $7.8 million, compared to $5.1 million for the same period in 2024[45] - The company recorded a net restructuring expense of $2.3 million for Q1 2025, primarily for severance and costs related to footprint rationalization[82] - The company anticipates annualized pre-tax cost savings of approximately $100.0 million by the end of 2026 from its multi-year restructuring program[179] Foreign Exchange and Derivatives - The company recognized a loss of $0.6 million in AOCI for cash flow hedges related to foreign exchange contracts for the three months ended March 31, 2025, compared to a gain of $1.0 million for the same period in 2024[111] - The fair value of derivative assets decreased from $13.3 million on December 31, 2024, to $3.6 million on March 31, 2025, while derivative liabilities decreased from $9.3 million to $2.7 million in the same period[116] - The company had foreign exchange contracts outstanding with a notional value of $47.2 million as of March 31, 2025, which were not designated as hedges[108] Legal and Regulatory Matters - Management believes that the resolution of ongoing legal proceedings, aside from the Brazil Tax Assessments, will not materially affect financial condition or results[198] - The company continues to monitor trade policies and tariffs, which have adversely impacted business and operating results, particularly concerning products sourced from China and Vietnam[202] Miscellaneous - The company is evaluating the impact of recent accounting standards on its financial disclosures, including ASU 2024-03 and ASU 2023-09[35][36] - The company’s disclosure controls and procedures were deemed effective as of March 31, 2025[195] - There were no changes in internal control over financial reporting that materially affected the company during the quarter[196]

ACCO Brands (ACCO) Q1 2025 Earnings Call May 02, 2025 08:30 AM ET Company Participants Christopher McGinnis - Senior Director of Investor RelationsThomas W. Tedford - President and Chief Executive OfficerDeborah A. O'Connor - Executive Vice President And Chief Financial OfficerKevin Steinke - Managing DirectorHale Holden - Managing Director Conference Call Participants Joe Gomes - Senior Research AnalystGreg Burns - AnalystWilliam Reuter - Analyst Operator Hello, everybody, and welcome to the Akro Brands Fi ...

ACCO Brands (ACCO) Q1 2025 Earnings Call May 02, 2025 08:30 AM ET Speaker0 Hello, everybody, and welcome to the Akro Brands First Quarter twenty twenty five. My name is Elliot, and I'll be your coordinator today. I would now like to hand over to Chris McGinnis, Senior Director of Investor Relations. Please go ahead. Speaker1 Good morning, and welcome to the ACCO Brands first quarter twenty twenty five conference call. This is Chris McGinnis, Senior Director of Investor Relations. Speaking on the call today ...

ACCO BRANDS Q1 2025 EARNINGS CONFERENCE CALL E A R N I N G S C A L L / M A Y 2 , 2 0 2 5 Reg. G Non-GAAP Financial Measures Forward-Looking Statements Among the factors that could cause our actual results to differ materially from our forward-looking statements are: changes in trade policy and regulations, including changes in trade agreements and the imposition of tariffs, and the resulting consequences; global political and economic uncertainties; a limited number of large customers account for a signific ...

Group 1: Earnings Performance - Acco Brands reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.03 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $317.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.43%, and down from year-ago revenues of $358.9 million [2] - Over the last four quarters, Acco has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Acco shares have declined approximately 26.5% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $404.1 million, and for the current fiscal year, it is $1.02 on revenues of $1.56 billion [7] Group 3: Industry Context - The Office Supplies industry, to which Acco belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Performance - First quarter net sales were $317.4 million, down 11.6% from $358.9 million in 2024, with adverse foreign exchange reducing sales by $11.7 million, or 3.3%[5] - Adjusted loss per share was $0.02, better than the outlook, while net loss was $13.2 million, or $(0.14) per share, compared to a net loss of $6.3 million, or $(0.07) per share in the prior year[8] - First quarter operating loss was $6.7 million, compared to operating income of $5.9 million in 2024, with adjusted operating income at $6.9 million compared to $16.2 million in the prior year[7] - The company reported a net loss of $13.2 million for Q1 2025, which is a 109.5% increase in loss compared to a net loss of $6.3 million in Q1 2024[30] - Basic and diluted loss per share for Q1 2025 was $0.14, doubling from a loss of $0.07 per share in Q1 2024[30] - Adjusted EBITDA for Q1 2025 decreased to $20.9 million, down 26.1% from $28.3 million in Q1 2024, representing 6.6% of net sales[51] Cash Flow and Debt - Operating cash flow for the quarter was $5.5 million, down from $28.2 million in the prior year, and free cash flow was $3.3 million compared to $25.9 million in the prior year[9] - Total debt as of March 31, 2025, was $931.7 million, a decrease from $954.8 million in Q1 2024, resulting in a net debt of $801.9 million[54] - Cash and cash equivalents at the end of Q1 2025 were $134.6 million, up from $124.6 million at the end of Q1 2024[32] - Proceeds from long-term borrowings increased to $106.3 million in Q1 2025, compared to $61.4 million in Q1 2024[32] Sales and Market Segments - ACCO Brands Americas segment net sales decreased 11.8% to $173.9 million, while the International segment net sales decreased 11.3% to $143.5 million[11][14] - Net sales for ACCO Brands Americas decreased by 11.8% year-over-year, resulting in a $23.3 million decline[60] - Net sales for ACCO Brands International also fell by 11.3%, leading to an $18.2 million decrease[60] - Net sales for the three months ended March 31, 2025, were $317.4 million, a decrease of 11.6% compared to $358.9 million in 2024[30] Expenses and Margins - First quarter gross margins expanded by 60 basis points, while SG&A expenses decreased compared to the prior year[5] - Gross profit margin improved to 31.4% in Q1 2025 from 30.8% in Q1 2024, despite a decline in gross profit to $99.6 million[30] - The adjusted operating income margin for the total company was 2.2% in Q1 2025, down from 4.5% in Q1 2024[58] - Stock-based compensation increased by 52.9% to $7.8 million in Q1 2025 from $5.1 million in Q1 2024[51] - Interest expense decreased by 21.9% to $8.9 million in Q1 2025, down from $11.4 million in Q1 2024[51] Future Outlook - The company expects reported sales in the second quarter to decline in a range of 8.0% to 12.0%, with adjusted EPS projected between $0.28 and $0.32[17] - The company has not provided a full-year outlook for 2025 due to increased market uncertainties driven by global trade dynamics[16] Other Financial Activities - ACCO Brands repurchased 3.2 million shares of common stock for $15 million during the quarter[9] - The company incurred $10.1 million in costs related to acquisitions in Q1 2025, with net cash used by investing activities totaling $12.3 million[32] - The income tax rate for Q1 2025 was 20.0%, compared to a benefit of (18.9)% in Q1 2024[30] - The company reported a restructuring expense of $2.3 million in Q1 2025, compared to a benefit of $0.3 million in Q1 2024[51]

Core Viewpoint - Dividend-paying stocks are perceived as stable investments, providing passive income through regular payments, with blue-chip companies like Coca-Cola and Procter & Gamble being prime examples [1] Group 1: Global Self Storage - Global Self Storage has a dividend yield of 5.89% and an annual dividend of $0.29, with a 3-year annualized dividend growth of 0.71% [3] - The company has a high dividend payout ratio of 161.11%, indicating potential risks of overpaying dividends [5] - Despite a nearly 7% decline year-to-date, Global Self Storage has outperformed the S&P 500 as of April 11, 2025 [4] Group 2: ACCO Brands - ACCO Brands offers a high dividend yield of 8.21% and an annual dividend of $0.30, with a 3-year annualized dividend growth of 3.57% [7] - The company has faced declining revenues and negative net income due to impairment charges, but generates substantial free cash flows of at least $100 million annually [8] - ACCO's shares are down about 30% year-to-date, resulting in a low price-to-sales ratio of 0.2, making it potentially attractive to investors [9] Group 3: Mativ Holdings - Mativ Holdings has the highest dividend yield among the three companies at 8.27%, with an annual dividend of $0.40, but has experienced a 55% share price decline year-to-date [11][12] - The company faces significant tariff risks and has had negative annualized 3-year dividend growth of -38.97% [11] - Analysts have upgraded Mativ from Hold to Buy, setting a price target of $10, which is more than double its current share price [12]

Core Insights - ACCO Brands Corporation's share price dropped by 20% after the release of its Q4/2024 earnings report, indicating significant market reaction to the financial results [1] - The company's revenues have been on a steady decline since 2021, highlighting ongoing challenges in its financial performance [1] - The macroeconomic environment has been described as soft, which has negatively impacted the company's operations [1] - Tariffs have also been identified as a contributing factor to the company's financial difficulties [1]

Group 1 - PowerA partners with Bandai Namco Entertainment America Inc. to celebrate the 45th anniversary of PAC-MAN by launching officially licensed gaming accessories for Nintendo Switch and Xbox platforms in Spring 2025 [1][2] - The partnership aims to deliver collectible, high-quality designs that honor PAC-MAN's legacy while providing style and performance for gamers [2] - PowerA is recognized for its innovative accessory products that enhance gaming experiences and is available globally at major retailers [4] Group 2 - Bandai Namco Entertainment America Inc. is a leading global publisher and developer known for classic franchises like PAC-MAN, TEKKEN, and DARK SOULS, and is headquartered in Irvine, California [6] - The collaboration aligns with Bandai Namco's vision of sharing PAC-MAN's impact and legacy with gamers and collectors worldwide [2]

Group 1 - ACCO Brands Corporation is positioning itself for long-term growth as companies implement mandatory 5-day in-office work weeks, with 26 Fortune 500 companies already adopting this trend [1] - The trend of returning to in-office work is expected to continue, indicating a potential increase in demand for ACCO's products and services [1] Group 2 - The analyst, Michael Del Monte, has over 5 years of experience in the investment industry and a decade in professional services across various sectors, which supports a macro-value-oriented approach to investment analysis [1]