ACCO(ACCO) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended June 30, 2024, were $438.3 million, a decrease of 11.2$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$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$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 $13.3 million in the fourth quarter of 2023, following a change in Brazilian law[85]. - The company is currently assessing the impact of the OECD's Pillar Two initiative, which introduces a 15$(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].