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 ...

Financial Performance - Net sales for Q3 2024 were $112.8 million, a 6.9% increase from $105.5 million in Q3 2023[2] - Gross profit for Q3 2024 rose to $43.5 million, up 11.7% from $38.9 million in the prior-year quarter, with a gross margin of 38.6%[2][8] - Net income for Q3 2024 was $9.3 million, reflecting a 1.3% increase from $9.1 million in Q3 2023, with a net income margin of 8.2%[2][12] - Adjusted EBITDA for Q3 2024 was $14.7 million, down from $15.2 million in the prior-year quarter, with an adjusted EBITDA margin of 13.0%[2][13] - Total net sales for the three months ended September 30, 2024, reached $112,771,000, up from $105,528,000 in the same period of 2023, representing a growth of 11.9%[31] - Online sales increased significantly to $18,950,000 for the three months ended September 30, 2024, compared to $14,271,000 in 2023, marking a growth of 33.5%[31] - Adjusted EBITDA for the three months ended September 30, 2024, was $14,715,000, which is 13.0% of net sales, down from $15,227,000 or 14.4% of net sales in the same period of 2023[33] Future Outlook - The company expects Q4 2024 net sales to increase by mid to high single digits compared to the prior-year quarter[3] - Gross margin for Q4 2024 is anticipated to be between 39% and 40%, compared to 35.7% in the prior-year quarter[3] Cash Flow and Capital Allocation - Cash flows from operations for Q3 2024 totaled $19.5 million, supporting a balanced capital allocation strategy[4] - Cash and cash equivalents increased to $38,903,000 as of September 30, 2024, from $23,076,000 as of December 31, 2023, indicating a growth of 68.3%[32] - Total assets rose to $306,803,000 as of September 30, 2024, compared to $276,397,000 as of December 31, 2023, reflecting an increase of 11.0%[32] - The company paid dividends totaling $23,006,000 in the nine months ended September 30, 2024, compared to $16,917,000 in the same period of 2023, representing a 36.5% increase[32] - The board approved an increase in the quarterly cash dividend to $0.40 per share from $0.35 per share, reflecting a commitment to shareholder returns[22] Operating Expenses - Operating expenses for Q3 2024 were $32.2 million, up from $27.6 million in Q3 2023, primarily due to increased online sales platform fees and higher shipping costs[9] Liabilities and Shareholder Equity - Total liabilities increased to $143,207,000 as of September 30, 2024, from $113,707,000 as of December 31, 2023, an increase of 25.9%[32] - The weighted average common shares outstanding, diluted, was 20,133,813 for the three months ended September 30, 2024, compared to 19,994,648 for the same period in 2023[29] Historical Performance - Net income for the three months ended September 30, 2023, was $9,140 million, compared to a loss of $87 million in the previous period[40] - Adjusted EBITDA for the same period was $15,227 million, reflecting an increase from $14,374 million[40] - For the nine months ended September 30, 2023, net income reached $29,003 million, up from $499 million[41] - Adjusted EBITDA for the nine months was $51,623 million, compared to $49,078 million in the prior period[41] Expenses and Write-offs - Interest expense for the three months was $536 million, while interest income was $(454) million, resulting in a net interest expense of $82 million[40] - The provision for income taxes for the three months was $2,904 million, consistent with the previous period[40] - Depreciation and amortization expenses for the three months totaled $2,708 million, an increase from $2,405 million[40] - The company incurred secondary offering transaction costs of $453 million during the three months[40] - Write-off of inventory for the nine months was $1,710 million, indicating a strategic scaling back of production[41][42] - Impairment expenses and losses on machinery disposal for the nine months amounted to $2,135 million, reflecting adjustments in operational strategy[41][42] Market Expansion - The company initiated shipments of customized bakery package containers and utensils to major grocery chains, indicating successful market expansion efforts[5]

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 ...

Core Insights - Karat Packaging, Inc. (KRT) reported lower-than-expected second-quarter 2024 revenues and earnings per share (EPS), leading to an 8.5% decline in share price since the announcement [1] - The adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents and represented a 29% year-over-year decline [1][2] - Total revenues increased by 3.5% year-over-year to $112.6 million but fell short of the Zacks Consensus Estimate of $114 million [2] Financial Performance - Including one-time items, EPS was 45 cents, down from 53 cents in the same quarter last year [2] - The cost of sales rose 3.5% year-over-year to $69 million, while gross profit increased by 3.7% to $43 million, maintaining a gross margin of 38.5% [3] - Operating expenses increased to $32.3 million from $28.5 million year-over-year, driven by higher online sales platform fees, rent, warehouse expenses, and stock compensation [4] Operational Metrics - Adjusted EBITDA declined 26% year-over-year to $15.7 million, with an adjusted EBITDA margin of 13.9%, down from 19.4% in the second quarter of 2023 [5] - Cash and cash equivalents decreased to $19.3 million as of June 30, 2024, from $23 million at the end of 2023, with cash flow from operations at $20 million compared to $31 million in the prior year [6] Future Guidance - For Q3 2024, KRT anticipates year-over-year sales growth in the mid to high-single-digit range and projects a gross margin between 38% and 39% [7] - For the full year 2024, sales growth is expected to be in the mid-single digits, with a targeted gross margin of 38% to 40% [7] Market Performance - Year-to-date, KRT shares have gained 3.1%, while the industry has seen a growth of 9.3% [8]

Core Points - Karat Packaging Inc. announced a regular quarterly cash dividend of $0.35 per share and a special cash dividend of $0.15 per share, reflecting the company's strong cash position and positive long-term outlook [1][2] - Both dividends are payable on or about August 30, 2024, to shareholders of record at the close of business on August 21, 2024 [2] Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products, primarily serving national and regional restaurants and foodservice settings across the United States [2] - The product range includes food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and more [2] - The company offers an eco-friendly product line, Karat Earth®, which focuses on sustainability and is made from renewable resources [2] - Customized solutions are also provided, including new product development, design, printing, and logistics services [2]

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 ...