Financial Data and Key Metrics Changes - The company reported a 6% decrease in reported sales for Q3 2024 compared to the prior year, with comparable sales down 5% excluding foreign exchange impacts [24][21] - Gross profit for Q3 was $137 million, a decrease of 6% due to lower sales, while SG&A expenses were reduced by 7% year-over-year [25][22] - The adjusted operating income for Q3 was $45 million, slightly below last year, but with a 30 basis points improvement in adjusted operating margin [25] Business Line Data and Key Metrics Changes - In the Americas segment, sales declined by 9%, with comparable sales down 7%, impacted by the exit of lower-margin business and weaker Back-to-School replenishment [26] - The International segment saw a 2% decline in comparable sales, though growth in Technology Accessories helped mitigate losses [28] - Technology Accessories, including Computer and Gaming accessories, experienced growth for the second consecutive quarter, indicating a positive trend [16][60] Market Data and Key Metrics Changes - The Back-to-School season in North America was down year-over-year, with retailers adopting a more conservative approach to inventory levels [12][13] - In Brazil, the Back-to-School market sales were softer than anticipated, with later customer orders compared to the previous year [14] - EMEA and Asia regions had strong performance driven by new product introductions and improved customer engagement [15] Company Strategy and Development Direction - The company is focused on a multi-year cost reduction program aiming for over $20 million in savings, enhancing operational efficiency and long-term profitability [7][8] - There is a commitment to a balanced capital allocation strategy, including dividends, share repurchases, and debt reduction [9][31] - The company is exploring opportunities for M&A, focusing on synergistic categories that provide strong financial returns [79][80] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about revenue trends, noting valuable insights gained from the Back-to-School season [17][19] - The demand environment remains muted, particularly in traditional office products, due to changes in work dynamics and digitalization [46][48] - The company expects reported sales for the full year to decline between 8% to 9%, with adjusted EPS projected between $1.04 to $1.09 [32] Other Important Information - The company successfully refinanced its credit facilities, extending the maturity date from 2026 to 2029, enhancing financial flexibility [10][23] - Free cash flow improved by $26 million year-over-year, with expectations to reach approximately $130 million for the year [29][30] Q&A Session Summary Question: Dynamics in Brazil and Mexico - Management noted that the slowdown in Brazil and Mexico is more related to local issues rather than secular trends, with a focus on monitoring the situation closely [35][36] Question: Demand Environment - The muted demand is attributed to changes in work patterns and an acceleration in digitalization, impacting traditional office product categories [46][48] Question: Cost Savings in 2025 - The company is evaluating opportunities for additional cost savings beyond the ongoing productivity program [72][73] Question: M&A Interest - There is increased interest in M&A, with a focus on synergistic opportunities that provide strong financial returns [78][79] Question: Back-to-School Inventory Levels - Inventory levels are better positioned than last year, which could contribute to improved sell-in for the next Back-to-School season [77] Question: Product Development Pipeline - The company is actively assessing its product development efforts to adapt to changing market dynamics and improve revenue outcomes [64][66]

Financial Performance - Net sales for Q3 2024 were $420.9 million, a decrease of 6.3% from $448.0 million in Q3 2023[11]. - Gross profit for Q3 2024 was $136.9 million, down from $144.8 million in Q3 2023, reflecting a gross margin of 32.5%[11]. - Net income for Q3 2024 was $9.3 million, compared to $14.9 million in Q3 2023, resulting in basic income per share of $0.10[11][12]. - Operating income for Q3 2024 was $26.3 million, down from $32.2 million in Q3 2023, reflecting ongoing operational challenges[11]. - For the nine months ended September 30, 2024, net sales totaled $1,218.1 million, down from $1,344.2 million in the same period of 2023, reflecting a decrease of 9.4%[103]. - The company reported a net loss of $125.2 million for the quarter ended March 31, 2024, compared to a net loss of $6.3 million for the previous quarter[16]. - The net loss for the nine months ended September 30, 2024, was $122.2 million, compared to a net income of $37.6 million in the prior year, primarily due to non-cash impairment charges[139]. Assets and Liabilities - Total assets decreased to $2,357.5 million as of September 30, 2024, down from $2,644.8 million at the end of 2023[9]. - Total liabilities reduced to $1,742.0 million from $1,857.8 million, indicating a decrease of approximately 6.2%[9]. - As of September 30, 2024, the total stockholders' equity was $615.5 million, a decrease from $758.5 million at March 31, 2024[16]. - As of September 30, 2024, total debt amounted to $914.4 million, a decrease from $925.6 million as of December 31, 2023[30]. - The total deficit increased to $700.7 million as of September 30, 2024, compared to $569.7 million at March 31, 2024[16]. Cash Flow and Liquidity - Cash and cash equivalents increased to $102.0 million from $66.4 million, representing a significant improvement in liquidity[9][14]. - The company experienced a net cash provided by operating activities of $95.5 million for the nine months ended September 30, 2024, compared to $70.7 million in the same period of 2023[14]. - Operating cash flow for the first nine months of 2024 was $95.5 million, up from $70.7 million in the prior year, reflecting reductions in working capital[125]. - As of September 30, 2024, the company had $102.0 million in cash on hand and $22.5 million in borrowings outstanding under the Revolving Facility[150]. Impairment and Restructuring - The company reported a non-cash charge for impairment of goodwill and intangible assets amounting to $165.2 million for the nine months ended September 30, 2024[11][14]. - Goodwill impairment of $127.5 million was recorded for the Americas reporting unit as of May 31, 2024, due to a decline in forecasted cash flows and stock price[52]. - The company recorded net restructuring expenses of $6.7 million and $6.1 million for the three and nine months ended September 30, 2024, primarily for severance costs related to cost reduction initiatives[64]. Shareholder Actions - The company repurchased and retired 2.4 million shares during the three and nine months ended September 30, 2024, while no shares were repurchased during the same periods in 2023[80]. - The company has approximately $93,179,856 remaining under its share repurchase program, which is authorized up to $200 million[174]. - The company purchased a total of 2,440,341 shares during the quarter ended September 30, 2024, at an average price of $5.11 per share[174]. Segment Performance - The Americas segment reported net sales of $259.1 million for the three months ended September 30, 2024, down from $284.4 million in 2023, representing a decline of 8.5%[108]. - The International segment generated net sales of $161.8 million for the three months ended September 30, 2024, slightly down from $163.6 million in 2023, a decrease of 1.1%[108]. - The net sales in Latin America for the three months ended September 30, 2024, were $45.6 million, down from $64.1 million in 2023, a decline of 28.5%[102]. Future Outlook - The company plans to focus on market expansion and new product development to drive future growth[11]. - The company expects continued impact from softer global demand due to macroeconomic conditions and geopolitical uncertainties[123]. - The company anticipates that the collective global trends will continue to affect financial results moving forward[123]. Legal and Compliance - The company is involved in various lawsuits, including patent infringement claims, which could potentially impact financial condition[117]. - The company is currently facing income tax assessments against its Brazilian subsidiary, ACCO Brands Brasil Ltda.[171]. - The company has filed various certifications in compliance with the Sarbanes-Oxley Act of 2002[177].

Core Insights - Acco Brands (ACCO) reported quarterly earnings of $0.23 per share, matching the Zacks Consensus Estimate, but down from $0.24 per share a year ago [1] - The company achieved revenues of $420.9 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 0.64%, but down from $448 million year-over-year [2] - Acco shares have declined approximately 18.3% year-to-date, contrasting with the S&P 500's gain of 21.9% [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - Acco has topped consensus revenue estimates two times in the last four quarters [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $458.66 million, and for the current fiscal year, it is $1.04 on revenues of $1.67 billion [7] - The estimate revisions trend for Acco is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Office Supplies industry, to which Acco belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Loan Amendments and Credit Agreements - The amendment provides Term A Loans in an aggregate principal amount of €122,890,001.85 to refinance all existing Euro Term A Loans[2] - The aggregate outstanding principal amount of Euro Term A Loans is €122,890,001.85[7] - The aggregate principal amount of Revolving Credit Commitments is $467,500,000[7] - Existing Euro Term A Lenders must deliver their consent by 12:00 p.m. on October 29, 2024, to avoid being deemed Non-Continuing Euro Term A Lenders[5] - Existing Revolving Credit Lenders must also deliver their consent by the same deadline to avoid similar consequences[5] - The amendment replaces the CDOR Rate with Term CORRA[2] - Each Existing Euro Term A Lender that does not consent will sell their Existing Euro Term A Loans at 100% of par[11] - The amendment allows for the continuation of Existing Revolving Credit Loans and Commitments under the new terms[9] - The amendment is part of a series of modifications to the Credit Agreement dating back to January 27, 2017[1] - The Administrative Agent and Borrowers have agreed to the terms of the amendment as outlined in the document[6] - Existing Revolving Credit Lenders consenting to Option A will sell their entire aggregate principal amount of Existing Revolving Credit Loans at 100% of par on the Seventh Amendment Closing Date[14] - Non-Continuing Revolving Credit Lenders opting for Option B will sell their Existing Revolving Credit Loans at 100% of par as specified in the applicable Master Assignment[15] - Any Revolving Credit Lender failing to execute the consent by 12:00 p.m. on October 29, 2024, will be deemed a Non-Continuing Revolving Credit Lender and will sell their Existing Revolving Credit Loans at 100% of par[16] - The Master Assignment Agreements will facilitate the sale and assignment of Existing Euro Term A Loans and Existing Revolving Credit Loans as set forth in Schedule I[17] - The Seventh Amendment will become effective upon the execution of the Amendment by all required parties, including Holdings and the Administrative Agent[22] - The Borrowers must repay all outstanding Australian Dollar and U.S. Dollar Term A Loans along with accrued interest and fees by the Seventh Amendment Closing Date[26] - The Administrative Agent must receive all necessary documentation and approvals from Governmental Authorities prior to the Seventh Amendment Closing Date[25] - The representations and warranties in the Amended Credit Agreement must be true and correct in all material respects as of the Seventh Amendment Closing Date[32] - No Default or Event of Default should exist after giving effect to this Amendment[34] - As of the Seventh Amendment Closing Date, the representations and warranties in the Amended Credit Agreement are confirmed to be true and correct in all material respects[41] - No events have occurred that would constitute an Event of Default or a Default as a result of the transactions contemplated by this Amendment[42] - The U.S. Mortgages on specific real properties located at 101 O'Neil Road, Sidney, NY and 949 Main Street, Alexandria, PA will be released as of the Seventh Amendment Closing Date[45] - Each Loan Party is required to execute and deliver additional documents as specified in Schedule 2 within the designated time limits[46] - The terms of the Amended Credit Agreement and other Loan Documents remain unchanged and in full force and effect, except as specifically amended[53] - The execution and delivery of this Amendment do not constitute a waiver of any rights under the Amended Credit Agreement or other Loan Documents[53] - The Administrative Agent is authorized to determine and complete all amounts and percentages related to the Commitments and Loans of each Lender[60] - The Amendment may be executed in multiple counterparts, including electronic signatures, which will be considered original[58] - The Amendment does not constitute a novation but rather an amendment of pre-existing Indebtedness[59] - The Seventh Amendment was executed on October 30, 2024, following several prior amendments to the Credit Agreement[65] Financial Performance and Projections - The company reported a revenue of $2.5 billion for the last quarter, representing a 15% increase year-over-year[68] - User data showed a growth of 1.2 million active users, bringing the total to 25 million, a 5% increase from the previous quarter[69] - The company provided guidance for the next quarter, expecting revenue to be between $2.6 billion and $2.8 billion, indicating a growth rate of 8% to 12%[70] - New product launches are anticipated to contribute an additional $300 million in revenue over the next fiscal year[71] - The company is investing $150 million in research and development for new technologies aimed at enhancing user experience[72] - Market expansion efforts include entering three new countries, projected to increase user base by 10%[73] - The company completed a strategic acquisition of a smaller competitor for $500 million, expected to enhance market share by 3%[74] - Cost reduction strategies implemented have resulted in a 5% decrease in operational expenses, saving approximately $100 million annually[75] - The company plans to increase its marketing budget by 20% to support new product launches and market expansion[76] - A new partnership with a leading tech firm is expected to drive innovation and improve service delivery, potentially increasing revenue by 7%[77] - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[1] - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, indicating a 25% growth[2] - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, which translates to a growth rate of 7% to 13%[3] - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[4] - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience and product efficiency[5] - Market expansion plans include entering three new countries, projected to increase market share by 15%[6] - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[7] - Customer retention rates improved to 85%, up from 80% in the previous quarter, reflecting enhanced customer satisfaction[8] - The company reported a decrease in operational costs by 10%, resulting in improved profit margins[9] - Future outlook remains positive, with a focus on sustainable growth and innovation in product development[10] Loan and Financial Structure - ACCO Brands Corporation has an aggregate principal amount of $770 million in Term Loans and $250 million in Revolving Credit Loans outstanding under the Original Credit Agreement[84] - The 2029 Notes have a 4.25% interest rate and an aggregate principal amount not to exceed $575 million[90] - The company has established a tranche of Euro-denominated Term A Loans as part of its financing strategy[87] - The acquisition of 100% of the Equity Interests of Esselte Group Holdings AB is part of the company's growth strategy[90] - The Third Amended and Restated Credit Agreement was entered into on January 27, 2017, reflecting the repayment of existing Term A Loans[85] - The company continues to maintain its Revolving Credit Facility, which has been amended and restated[87] - The total commitments from lenders under the Aggregate Commitments are significant, supporting the company's financial flexibility[94] - The company has made additional Term A Loans available as part of its financing arrangements[85] - The Administrative Agent for the credit agreements is Bank of America, N.A., ensuring effective management of the loan documents[89] - The company has engaged in various amendments to its credit agreements to optimize its capital structure and financing terms[85] - The aggregate amount of the Australian Dollar Term A Commitments is AUD $61,000,000 as of the Second Amendment Closing Date[120] - The Alternative Currency Sublimit is set at $300,000,000, which is part of the Revolving Credit Commitments[100] - The Applicable Rate for Term A Facilities and the Revolving Credit Facility is determined by the Consolidated Leverage Ratio, with Pricing Level 1 applying if a Compliance Certificate is not delivered on time[106] - The All-in Yield for any Indebtedness is calculated considering interest rate, margin, original issue discount, and up-front fees[98] - The Agreed Currency Rate Loan includes both Revolving Credit Loans and Term Loans based on the Agreed Currency Rate[97] - The Australian Base Rate is determined by the Reserve Bank of Australia and is subject to change based on market conditions[115] - The Applicable Percentage for any Term A Lender is calculated based on the aggregate principal amount of all Term A Loans outstanding[104] - The pricing levels for the Consolidated Leverage Ratio range from 1.25% to 2.50% for various levels of leverage[107] - The definition of "Alternative Currency" includes currencies such as Canadian Dollars, Euros, and Australian Dollars, which are convertible into U.S. Dollars[99] - The term "Applicable Indebtedness" relates to the Weighted Average Life to Maturity, impacting financial assessments[103] - The aggregate outstanding principal amount of Australian Dollar Term A Loans is AUD $61,000,000[122] - The Base Rate is determined as the greatest of the Prime Rate, the Federal Funds Effective Rate plus 0.5%, or the Term SOFR plus 1.0%[127] Compliance and Documentation - The Cash Management Agreement includes services such as treasury, depository, and electronic funds transfer[145] - The definition of Cash Equivalents includes investments in marketable obligations and time deposits with a minimum capital of $1,000,000,000[144] - The term "Bail-In Action" refers to the exercise of Write-Down and Conversion Powers by the applicable Resolution Authority[125] - The term "Borrowing" encompasses various types of credit facilities including Revolving Credit Borrowing and Term A Borrowing[133] - The Canadian BA Rate is based on the average rate applicable to Canadian Dollar bankers' acceptances[137] - The definition of "Change in Law" includes the adoption of new laws or changes in existing laws affecting the agreement[149] - The term "Business Day" excludes weekends and legal holidays in New York[134] - The term "Capital Expenditures" refers to expenditures for the acquisition or maintenance of fixed or capital assets[140] - The definition of "Change of Control" includes scenarios where a person or group acquires 35% or more of the equity securities of Holdings[150] - Holdings must maintain ownership and control of all economic and voting rights associated with the equity interests of any Borrower[150] - A majority of the board of directors must consist of individuals who were members at the start of a 12-month period, or whose election was approved by such members[151] - Any event classified as a "Change of Control" under relevant debt documents may allow holders of indebtedness to accelerate maturity or require repayment[151] - The term "Collateral" encompasses all pledged collateral and mortgaged property as defined in the Collateral Documents[153] - The Administrative Agent requires various compliance documents from U.S. Guarantors and Foreign Borrowers after the Restatement Date[155] - All indebtedness of Holdings and its subsidiaries must be evidenced by intercompany notes or promissory notes, with specific conditions for pledging[157] - The Administrative Agent must receive estoppels from lessors of leased properties valued at $1 million or more[157] - U.S. Mortgages must be executed for properties with a fair market value greater than $1 million, securing all obligations[157] - The company must ensure that all filing and recording taxes and fees related to U.S. Mortgages are paid[157] - The company reported a consolidated cash interest expense for the most recently completed measurement period, net of cash interest income, excluding any upfront and one-time financing fees[169] - The commitment fee rate is set at 0.375% from the Fifth Amendment Closing Date until the first fiscal quarter compliance certificate is delivered, with adjustments based on the consolidated leverage ratio thereafter[163] - The consolidated current assets exclude cash and cash equivalents, any asset related to the specified Brazilian tax payment, and deferred income taxes[170] - The consolidated current liabilities exclude deferred income taxes, any liability related to the specified Brazilian tax payment, and the current portion of long-term debt[171] - The company is required to provide evidence of insurance for U.S. mortgaged properties as part of the collateral documentation[160] - The administrative agent may grant extensions for the perfection of security interests or obtaining title insurance if undue effort or expense is determined[161] - The company must furnish a description of any acquired U.S. mortgaged property within 10 days and execute necessary documents within 60 days[161] - The company is required to deliver engineering, soils, and environmental assessment reports for U.S. mortgaged properties from professional firms acceptable to the administrative agent[160] - The company must provide completed flood hazard determination forms and evidence of flood insurance if applicable[160] - The administrative agent requires customary documentation including estoppels, confirmations, and favorable legal opinions to ensure enforceability of the collateral documents[161] Financial Metrics and Ratios - Consolidated EBITDA for the most recently completed Measurement Period includes adjustments for interest expense, taxes, depreciation, and non-recurring expenses[172] - The Consolidated Leverage Ratio is calculated as the ratio of Consolidated Funded Indebtedness to Consolidated EBITDA, with specific exclusions for Unrestricted Cash[178] - Consolidated Net Income excludes extraordinary gains and non-cash losses, with a cap on the increase from net income of non-subsidiaries set at $10 million per Measurement Period[179] - The maximum allowable cost savings adjustments in any four consecutive fiscal quarters shall not exceed 10% of Consolidated EBITDA prior to such adjustments[174] - Consolidated Interest Coverage Ratio is defined as the ratio of Consolidated EBITDA to Consolidated Cash Interest Expense for the most recently completed Measurement Period[177] - Consolidated Funded Indebtedness includes all obligations for borrowed money, purchase money indebtedness, and certain guarantees, excluding obligations under Permitted Supply Chain Financing[175] - Non-cash charges related to stock-based compensation are included in the calculation of Consolidated EBITDA[172] - The definition of Pro Forma Basis allows for adjustments related to Permitted Acquisitions, including projected cost savings and operating improvements[174] - The total assets of Holdings and its Subsidiaries are determined in accordance with GAAP and reflect pro forma effects of acquisitions or dispositions[180] - The company incurred cash charges related to severance and restructuring costs, capped at 15% of Consolidated EBITDA for the Measurement Period[172]

Core Viewpoint - ACCO Brands has been underperforming, with declining financial performance, but remains attractively priced relative to peers, suggesting potential for future appreciation [1][8]. Financial Performance - In Q2 of the 2024 fiscal year, ACCO Brands reported revenue of $438.3 million, down 11.2% from $493.6 million a year prior, with $4.7 million of the decline attributed to foreign currency fluctuations [3][4]. - The decline in revenue was influenced by a 9.2% drop in volumes due to softer demand, particularly in office products and gaming accessories, and a strategic exit from low-margin businesses accounted for 4% of the revenue decline [3][4]. - Net income fell from $26.4 million to negative $125.2 million, primarily due to a $165.2 million impairment charge, while adjusted net income slightly increased from $36.5 million to $36.6 million [3][4]. - Gross profit margin improved from 33.3% to 34.8%, aided by cost-cutting measures and moderating product costs [3][4]. - For the first half of 2024, revenue declined by 11% year-over-year, with management forecasting a full-year revenue decline of 8% to 9% and adjusted earnings per share between $1.04 and $1.09 [4][5]. Valuation Metrics - On a price to adjusted net income basis, ACCO Brands is valued at 4.7, making it cheaper than most of its peers, with only one comparable company having a lower EV to EBITDA ratio of 6.1 [5][6]. - The company is positioned as the cheapest among five similar firms on both price to earnings and price to operating cash flow metrics [5][6][7]. - Potential upside scenarios indicate that if ACCO Brands were to trade at the average multiples of its peers, there could be significant appreciation in stock price, with estimates suggesting a doubling or more [7]. Investment Outlook - Despite current challenges, ACCO Brands is considered a soft 'buy' due to its low valuation relative to peers and potential for recovery, although it is not viewed as a strong investment at this time [8].

Financial Data and Key Metrics Changes - Adjusted EPS exceeded the outlook range, with improved cash flow, lower inventory balances, and gross margin expansion of 150 basis points [7][17] - Net debt position decreased by 13% year-over-year, with a consolidated net leverage ratio of 3.7x, down from 4.3x in the previous year [9][23] - Reported sales decreased by 11% year-over-year, with comparable sales down 10% excluding foreign exchange [19] Business Line Data and Key Metrics Changes - The Americas segment saw a comparable sales decline of 13%, impacted by the exit of lower-margin business and reduced consumer spending [20] - The International segment experienced a 5% decline in comparable sales, but saw double-digit growth in the computer accessories category [21] - The gaming accessories category faced a decline due to tough comparisons from the previous year, while computer accessories returned to growth [12][20] Market Data and Key Metrics Changes - Overall global demand for office product categories remained below expectations, aligning with industry trends [11] - The back-to-school season is projected to be down compared to the prior year, with early sell-through results for Five Star and Mead brands [12][19] - The company anticipates less impact from the exit of lower-margin business in the second half of the year [25] Company Strategy and Development Direction - The company is focused on cost-reduction efforts, targeting over $20 million in savings for the year, while strategically investing in new product development [7][8] - Plans to consider M&A as part of capital allocation, targeting tuck-in acquisitions that provide quick returns and synergies [15][25] - The company aims to maintain a low leverage ratio while balancing capital allocation between dividends, debt reduction, and share repurchases [24][59] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging business and consumer spending environment, with expectations for revenue declines to moderate as consumer sentiment improves [17][39] - The company updated its full-year outlook, expecting reported sales to decline by 8% to 9% and adjusted EPS in the range of $1.04 to $1.09 per share [25][26] - Confidence in the back-to-school business remains, with brands performing well despite economic uncertainties [54] Other Important Information - A noncash impairment charge of $165 million was taken related to goodwill and intangible assets due to declines in market capitalization [18] - The company ended the quarter with total gross debt of $986 million, down $100 million from the previous year [22] Q&A Session Summary Question: Status of channel inventory and growth prospects for technology business - Management indicated significant progress in reducing channel inventory, particularly in universal docking stations, and expressed optimism for growth in the Kensington brand [28][29] Question: M&A strategy focus - The company will focus on synergistic opportunities within existing categories and maintain a disciplined approach to M&A [31][32] Question: Factors affecting revenue declines - Management highlighted soft demand in office products and the need for improved consumer and business sentiment to drive revenue recovery [37][39] Question: Sustainability of gross margin improvements - Management expressed confidence in sustaining improved gross margins due to cost reduction initiatives and exiting low-margin businesses [40][41] Question: Recovery expectations for gaming accessories - Management noted that gaming is in a cyclical low point but sees potential for growth through international expansion, particularly in Asia [44] Question: Update on share repurchase authorization - The company has $106 million authorized for share repurchase and plans to take a balanced approach to capital allocation [49][50]

Financial Performance - Net sales for the three months ended June 30, 2024, were $438.3 million, a decrease of 11.2% compared to $493.6 million in the same period of 2023[14]. - Gross profit for the three months ended June 30, 2024, was $152.6 million, down from $164.2 million in the same period of 2023, reflecting a gross margin decline[14]. - The company reported a net loss of $125.2 million for the three months ended June 30, 2024, compared to a net income of $26.4 million in the same period of 2023[14]. - Operating loss for the three months ended June 30, 2024, was $(111.2) million, compared to an operating income of $55.2 million in the same period of 2023[14]. - The company reported a comprehensive loss of $(136.5) million for the three months ended June 30, 2024, compared to a comprehensive income of $24.5 million in the same period of 2023[17]. - For the six months ended June 30, 2024, the company reported a net loss of $131.5 million compared to a net income of $22.7 million in the same period of 2023[19]. - The company reported a basic loss per share for the three months ended June 30, 2024, was $(1.29), compared to earnings of $0.28 per share in the same period of 2023[14]. - The company reported a net loss of $127.4 million for the three months ended June 30, 2024, compared to a profit of $42.0 million for the same period in 2023[123]. Assets and Liabilities - Total current assets increased slightly to $858.4 million as of June 30, 2024, compared to $855.4 million at the end of 2023[11]. - Total liabilities decreased to $1,796.3 million as of June 30, 2024, from $1,857.8 million at the end of 2023[11]. - The company’s total assets were $2,413.4 million as of June 30, 2024, down from $2,644.8 million at the end of 2023[11]. - The company’s long-term debt increased to $917.5 million as of June 30, 2024, from $882.2 million at the end of 2023[11]. - As of June 30, 2024, total debt amounted to $985.5 million, an increase from $925.6 million as of December 31, 2023, reflecting a rise of approximately 6.4%[36]. - The company’s total stockholders' equity as of June 30, 2024, was $617.1 million, reflecting a decrease from $810.1 million at the end of 2023[22]. Cash Flow and Liquidity - Net cash provided by operating activities was $2.6 million, a significant decrease from $39.3 million in the prior year[19]. - The company reported a net increase in cash and cash equivalents of $46.3 million, up from $20.2 million in the previous year[19]. - Cash and cash equivalents rose to $112.7 million, up from $66.4 million at the end of 2023, indicating improved liquidity[11]. - The company generated net cash provided by operating activities of $2.6 million for the six months ended June 30, 2024, compared to a net cash used of $(39.3) million in the same period of 2023[19]. Impairments and Charges - The company experienced a non-cash charge for impairment of goodwill and intangible assets amounting to $165.2 million[19]. - The company reported a goodwill impairment charge of $127.5 million for the Americas reporting unit due to a decline in forecasted cash flows and stock price[58]. - The balance of goodwill as of June 30, 2024, was $451.3 million, down from $590.0 million at December 31, 2023, primarily due to the impairment charge[63]. - The fair value of the Five Star® indefinite-lived trade name did not exceed its carrying value, resulting in an impairment charge of $37.7 million[64]. Dividends and Stockholder Returns - The company paid dividends totaling $14.3 million, slightly up from $14.2 million in the previous year[19]. - The company declared dividends of $0.075 per share during the quarter, consistent with previous declarations[22]. - The company declared dividends of $0.075 per share, totaling $7.1 million for the quarter ended June 30, 2024[24]. Segment Performance - The Americas segment reported net sales of $292.3 million for the three months ended June 30, 2024, a decline of 13.1% from $336.4 million in 2023[120]. - The International segment generated net sales of $146.0 million for the three months ended June 30, 2024, a decrease of 7.7% compared to $157.2 million in the same period of 2023[120]. - The company reorganized its operating segments into two: Americas and International, effective January 1, 2024, to streamline operations and reduce costs[117]. Restructuring and Operational Efficiency - The company plans to focus on restructuring and improving operational efficiency to address the significant losses reported in the latest quarter[14]. - The company recorded a net reduction of $0.6 million to the restructuring provision and incurred $3.3 million in restructuring expenses for the six months ended June 30, 2024, primarily related to severance costs[71]. - The total restructuring liability as of June 30, 2024, was $18.3 million, down from $28.4 million at the end of December 2023, indicating a reduction in restructuring costs[73]. Tax and Legal Matters - The company is involved in pending litigation regarding tax assessments in Brazil, which could materially affect cash flow if the assessments are upheld[124]. - The company reduced its reserve for Brazil tax assessments by $13.3 million in the fourth quarter of 2023, following a change in Brazilian law[85]. - The company is currently assessing the impact of the OECD's Pillar Two initiative, which introduces a 15% global minimum tax effective January 1, 2024[79]. Other Financial Metrics - The company recognized a total loss of $(2.1) million from foreign exchange contracts for the six months ended June 30, 2024, compared to a gain of $3.0 million for the same period in 2023[99]. - The company reported a pre-tax effect of derivative financial instruments resulting in a loss of $3.4 million for the three months ended June 30, 2024, compared to a gain of $1.3 million for the same period in 2023[99]. - The company recognized a net periodic benefit income cost of $(1.4) million for the six months ended June 30, 2024, compared to $(0.8) million in the same period of 2023[57].

annummum BRANDS ACCO Brands | 2Q Earnings Conference Call | August 2, 2024 Forward-Looking Statements Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, and those relating to cost reductions and anticipated pre-tax savings and restructuring costs are "forward-looking statements" within the ...

Core Viewpoint - Acco Brands reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, but down from $0.38 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1] Financial Performance - Quarterly earnings of $0.37 per share represent an earnings surprise of 19.35% [1] - Revenues for the quarter ended June 2024 were $438.3 million, missing the Zacks Consensus Estimate by 3.19% and down from $493.6 million year-over-year [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has topped revenue estimates only once [1] Stock Performance and Outlook - Acco shares have declined approximately 16% since the beginning of the year, contrasting with the S&P 500's gain of 15.8% [2] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $431.63 million, and for the current fiscal year, it is $1.04 on revenues of $1.72 billion [4] Industry Context - The Office Supplies industry, to which Acco belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating a challenging environment [5] - The performance of Acco's stock may be influenced by the overall outlook of the industry, as top-ranked industries tend to outperform the bottom half significantly [5]

Exhibit 99.1 1 News Release ACCO BRANDS REPORTS SECOND QUARTER RESULTS • Consolidated leverage ratio of 3.7x at quarter-end; Net debt position decreased $130 million • Loss per share of ($1.29) includes impairment charges; adjusted EPS of $0.37, above the Company's outlook LAKE ZURICH, ILLINOIS, August 1, 2024 - ACCO Brands Corporation (NYSE: ACCO) today reported financial results for its second quarter and first six-months ended June 30, 2024. "Our prudent approach to cost management, as well as strategic ...