Net Sales and Revenue - Net sales for the three months ended September 30, 2024 were $112.8 million, a 6.9% increase compared to $105.5 million in the same period last year, driven by a $9.4 million increase in volume and product mix, and $3.0 million from online sales platform fees, partially offset by a $5.7 million unfavorable pricing comparison[96] - Net sales for the nine months ended September 30, 2024, increased by 3.5% YoY to $321.0 million, driven by higher volume and product mix changes[104] Gross Profit and Margin - Gross margin for the three months ended September 30, 2024 was 38.6%, an increase of 170 basis points compared to the same period last year[87] - Gross profit for Q3 2024 increased to $43.5 million, up 11.7% YoY, with gross margin improving to 38.6% from 36.9% in Q3 2023[98] - Gross profit for the nine months ended September 30, 2024, increased by 4.7% YoY to $124.5 million, with gross margin improving to 38.8% from 38.4%[107] Net Income - Net income for the three months ended September 30, 2024 was $9.3 million, a 1.3% increase compared to $9.1 million in the same period last year[87] - Net income for Q3 2024 was $9.3 million, a slight increase of 1.3% YoY, primarily due to a reduction in income tax provision[103] - Net income for the nine months ended September 30, 2024, decreased by 13.9% YoY to $25.0 million, driven by lower operating income[112] - Net income for the nine months ended September 30, 2024, was $25.0 million (7.8% of net sales), compared to $29.0 million (9.4% of net sales) in the same period in 2023[121] Cost of Goods Sold - Cost of goods sold for the three months ended September 30, 2024 was $69.3 million, a 4.0% increase compared to $66.6 million in the same period last year, driven by a $1.4 million increase in ocean freight and duty costs and $0.7 million in production expenses[97] - Cost of goods sold for the nine months ended September 30, 2024, increased by 2.8% YoY to $196.5 million, primarily due to higher freight and duty costs[106] Operating Expenses and Income - Operating expenses for Q3 2024 rose to $32.2 million, a 16.9% increase YoY, driven by online sales platform fees and new distribution center costs[100] - Operating expenses for the nine months ended September 30, 2024, increased by 15.4% YoY to $94.0 million, driven by online sales platform fees and new distribution center costs[108] - Operating income for the nine months ended September 30, 2024, decreased by 18.7% YoY to $30.5 million, primarily due to higher operating expenses[109] Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2024 was $14.7 million, a 3.4% decrease compared to the same period last year[89] - Adjusted EBITDA for Q3 2024 was $14.7 million, representing 13.0% of net sales, compared to $15.2 million (14.4% of net sales) in Q3 2023[119] - Adjusted EBITDA for the nine months ended September 30, 2024, was $43.9 million, representing 13.7% of net sales, compared to $51.6 million (16.6% of net sales) in the same period in 2023[121] Cash Flow and Liquidity - The company generated $19.5 million in net cash from operating activities for the three months ended September 30, 2024, compared to $12.0 million in the same period last year[88] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $39.7 million, compared to $43.1 million in the same period in 2023[137] - Net cash provided by investing activities for the nine months ended September 30, 2024, was $1.8 million, primarily due to $38.6 million in redemptions of short-term investments, partially offset by $33.6 million in purchases of short-term investments[139] - Net cash used in investing activities was $21.3 million for the nine months ended September 30, 2023, primarily including $18.0 million in net purchases of short-term investments, $5.4 million of deposits for property and equipment, and $2.9 million for direct purchases of property and equipment[140] - Net cash used in financing activities was $25.7 million for the nine months ended September 30, 2024, primarily including $23.0 million of cash dividends paid to shareholders and $2.3 million for the redemption of a non-controlling member's interest in Global Wells[141] - Net cash used in financing activities was $9.6 million for the nine months ended September 30, 2023, primarily including $16.9 million of cash dividends paid to shareholders and $0.7 million of term loan repayments, partially offset by $8.0 million of additional borrowings under the 2027 Term Loan[142] Dividends and Financial Liquidity - The company declared a quarterly cash dividend of $0.40 per share on November 5, 2024, payable on or around November 29, 2024[89] - The company declared a quarterly cash dividend of $0.40 per share on November 5, 2024, with total dividends paid in the current fiscal year amounting to $23.0 million[130] - The company had financial liquidity of $75.1 million and additional short-term investments of $21.5 million as of September 30, 2024[89] Working Capital and Liabilities - Working capital increased by $5.1 million (4.6%) to $115.6 million as of September 30, 2024, driven by a $15.2 million increase in current assets, partially offset by a $10.1 million increase in current liabilities[135] - The company has an import duty liability reserve of $3.0 million as of September 30, 2024, related to an ongoing investigation by U.S. Customs and Border Protection[129] Loans and Credit Facilities - The company has a $40.0 million revolving loan facility with a standby letter of credit sublimit of $5.0 million, of which $3.8 million was issued as of September 30, 2024, leaving $36.2 million available for borrowing[125] - As of September 30, 2024, the company had $27.8 million outstanding under the 2027 Term Loan and $21.1 million outstanding under the 2026 Term Loan[128] Government Grants and Other Income - The company received government grants totaling $1.5 million and $1.3 million for Lollicup and Global Wells, respectively, as of September 30, 2024, which have not yet been recognized as other income[132] Related Party Transactions and Accounting - Significant related party transactions are detailed in Note 13 of the Condensed Consolidated Financial Statements[143] - Recent accounting pronouncements are summarized in Note 2 of the Condensed Consolidated Financial Statements[144] - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[145] Distribution Centers and Manufacturing - The company operates a 500,000 square foot distribution center in Rockwall, Texas, a 300,000 square foot distribution center in Chino, California, and a 76,000 square foot distribution center in Kapolei, Hawaii, with selected manufacturing capabilities in all facilities[86] Eco-Friendly Products - Eco-friendly products accounted for 33.4% of total sales during the three months ended September 30, 2024, up from 32.7% in the same period last year[90]

Karat Packing (KRT) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.62%. A quarter ago, it was expected that this company would post earnings of $0.60 per share when it actually produced earnings of $0.49, delivering a surprise of -18.33%.Over the last four quarters, the company ha ...

Karat Packaging Reports 2024 Third Quarter Financial Results CHINO, Calif, November 7, 2024 – Karat Packaging Inc. (Nasdaq: KRT) ("Karat" or the "Company"), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2024 third quarter ended September 30, 2024. Third Quarter 2024 Highlights • Net sales of $112.8 million, up 6.9 percent from the prior-year quarter. • Gross profit of $43.5 million, up 11.7 p ...

CHINO, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2024 third quarter ended September 30, 2024. Third Quarter 2024 Highlights Net sales of $112.8 million, up 6.9 percent from the prior-year quarter.Gross profit of $43.5 million, up 11.7 percent from prior-year quarter.Gross margin of 38. ...

CHINO, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) --  Karat Packaging Inc. (“Karat” or the “Company”) (Nasdaq: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it will release its 2024 third quarter financial results after market close on Thursday, November 7, 2024. The Company will host an investor conference call on the same day. Call Date:  Thursday, November 7, 2024Time:  2:00 p.m. PT/5:00 p.m. ETPhone:  646-307-19 ...

CHINO, Calif., Aug. 28, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that Alan Yu, its chief executive officer, and Jian Guo, its chief financial officer, will participate at Lake Street Capital Market's 8th Annual Best Ideas Growth (BIG8) Conference in New York, on September 12, 2024. Management will conduct one-on-one meetings with investors during the conference. To receive addit ...

Shares of Karat Packaging, Inc. (KRT) have lost 8.5% since the company reported lower-than-expected second-quarter 2024 revenues and earnings per share (EPS) on Aug 8, 2024. The quarterly adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents and declined 29% year over year. The downfall was due to unfavorable year-over-year pricing comparison, higher freight costs and an increase in operating expenses in the quarter. Including one-time items, EPS was 45 cents compared with the year-ago qu ...

CHINO, Calif., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (the "Company" or "Karat"), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that its board of directors has approved payment of a regular quarterly cash dividend of $0.35 per share. The board also declared a special cash dividend of $0.15 per share on the Company's common stock. Both dividends are payable on or about August 30, 2024, to shareholders of record at ...

Both events will be webcast live on Karat's investor relations website at https://irkarat.com/. Management will conduct one-on-one meetings with investors during both conferences. For those who are not able join the live webcast, these events will be archived for approximately one year. CHINO, Calif., May 21, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) ("Karat"), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that it will partic ...

Karat Packaging, Inc. (KRT) reported first-quarter 2024 adjusted earnings per share (EPS) of 40 cents, missing the Zacks Consensus Estimate of 44 cents. The bottom line declined 11% from earnings of 45 cents in the year-ago quarter. Including one-time items, EPS was 31 cents compared with the year-ago quarter's 45 cents. Total revenues decreased 0.2% year over year to $96 million in the reported quarter. The top line missed the Zacks Consensus Estimate of $100 million. The year-over-year decline was led by ...