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 ...

The power of handwritten notes combined with digital studying and organization to enhance student learning DAYTON, Ohio, July 15, 2024 /PRNewswire/ -- Five Star®, a leader in student-focused school products, is expanding its line of Five Star Study App compatible products to include wide ruled notebooks, composition books and filler paper to help meet the study needs of younger students. Now from the first spelling test to the last college final, students can benefit from combining the power of paper with d ...

Acco Brands (ACCO) closed the last trading session at $5.04, gaining 1.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $10.83 indicates an 114.9% upside potential. The mean estimate comprises three short-term price targets with a standard deviation of $2.93. While the lowest estimate of $7.50 indicates a 48.8% increase from the current price level, the most optimistic analyst ex ...

stevecoleimages/E+ via Getty Images ACCO Brands (NYSE:ACCO) is a manufacturer of consumer products largely focused on office and school environments, as well as certain electronic products which serve those markets and extend beyond into gaming. ACCO’s primary historical feature from an investment standpoint is as a perpetual value stock – regardless of cash flows and earnings, the company’s shares have always been cheap from an objective standpoint. We’ve previously argued that a key factor for this pe ...

Start Time: 08:30 January 1, 0000 9:12 AM ET ACCO Brands Corporation (NYSE:ACCO) Q1 2024 Earnings Conference Call May 03, 2024, 08:30 AM ET Company Participants Tom Tedford - President and CEO Deborah O'Connor - EVP and CFO Christopher McGinnis - Senior Director of IR Conference Call Participants Gregory Burns - Sidoti Joseph Gomes - NOBLE Capital Kevin Steinke - Barrington Research Hale Holden - Barclays William Reuter - Bank of America Operator Hello, and welcome to the ACCO Brands First Quarter 2024 Earn ...