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Gentherm(THRM) - 2024 Q4 - Annual Results
THRMGentherm(THRM)2025-02-19 11:10

Financial Performance - Achieved 61% year-over-year net income growth with record annual adjusted EBITDA of 183million[2]−GAAPdilutedearningspershareforQ42024was183 million[2] - GAAP diluted earnings per share for Q4 2024 was 0.49, down from 0.56intheprioryear,whileadjusteddilutedearningspersharefellto0.56 in the prior year, while adjusted diluted earnings per share fell to 0.29 from 0.90[12]−NetincomeforQ42024was0.90[12] - Net income for Q4 2024 was 15.3 million, compared to 18.1millioninQ42023,withbasicearningspersharedecreasingfrom18.1 million in Q4 2023, with basic earnings per share decreasing from 0.57 to 0.50[37]−NetincomefortheyearendedDecember31,2024,was0.50[37] - Net income for the year ended December 31, 2024, was 64,947,000, an increase from 40,343,000in2023,representingagrowthof6140,343,000 in 2023, representing a growth of 61%[44] - The diluted earnings per share for the year ended December 31, 2024, was 2.06, up from 1.22in2023,anincreaseof691.22 in 2023, an increase of 69%[44] - Adjusted net income for the three months ended December 31, 2024, was 9,094,000, down from 28,891,000inthesameperiodof2023,adecreaseof6828,891,000 in the same period of 2023, a decrease of 68%[44] Revenue Trends - Fourth quarter product revenues decreased by 14 million, or 3.8%, year-over-year, with automotive revenues down 4.3%[6][7] - Full year 2024 product revenues totaled 1,456.1million,adecreaseof0.91,456.1 million, a decrease of 0.9% compared to 2023[13] - Automotive segment revenue for 2024 was 1,406.3 million, a 1.2% decrease year-over-year, with adjustments for foreign currency translation showing a 0.7% decline[14] - Medical segment revenue increased by 8.1% year-over-year, reaching 49.8millionforfullyear2024[16]−ProductrevenuesforQ42024were49.8 million for full year 2024[16] - Product revenues for Q4 2024 were 352.9 million, a decrease of 3.8% compared to 366.9millioninQ42023[37]−TheAutomotivesegment′stotalrevenuedecreasedby4.3366.9 million in Q4 2023[37] - The Automotive segment's total revenue decreased by 4.3% year-over-year, from 353.9 million in Q4 2023 to 338.8millioninQ42024[40]−AutomotiverevenuesforQ42024were338.8 million in Q4 2024[40] - Automotive revenues for Q4 2024 were 338.834 million, a decrease of 1.8% compared to 353.945millioninQ42023[49]−AdjustedAutomotiverevenues,excludingforeigncurrencytranslationimpact,were353.945 million in Q4 2023[49] - Adjusted Automotive revenues, excluding foreign currency translation impact, were 338.013 million in Q4 2024, compared to 344.339millioninQ42023,reflectingayear−over−yearchangeof0.8344.339 million in Q4 2023, reflecting a year-over-year change of 0.8%[49] - Adjusted Automotive Climate and Comfort Solutions revenues for Q4 2024 were 285.448 million, slightly down from 286.262millioninQ42023,withayear−over−yearincreaseof1.7286.262 million in Q4 2023, with a year-over-year increase of 1.7%[49] Expenses and Costs - Research and development expenses for the year ended December 31, 2024, were 88.7 million, down from 94.4millionin2023[37]−TotaloperatingexpensesforQ42024were94.4 million in 2023[37] - Total operating expenses for Q4 2024 were 62.463 million, down from 64.593millioninQ42023[49]−AdjustedoperatingexpensesforQ42024were64.593 million in Q4 2023[49] - Adjusted operating expenses for Q4 2024 were 55.961 million, compared to 58.385millioninQ42023[49]−Thecompanyincurredrestructuringexpensesof58.385 million in Q4 2023[49] - The company incurred restructuring expenses of 13,110,000 for the year ended December 31, 2024, compared to 4,739,000in2023,anincreaseof1764,739,000 in 2023, an increase of 176%[44] - The company reported a restructuring expense of 768 thousand in Q4 2024, compared to 1.327millioninQ42023[49]−Non−cashstock−basedcompensationdecreasedto1.327 million in Q4 2023[49] - Non-cash stock-based compensation decreased to 192 thousand in Q4 2024 from 3.164millioninQ42023[49]CashFlowandAssets−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof3.164 million in Q4 2023[49] Cash Flow and Assets - The company reported a net cash provided by operating activities of 109,646,000 for the year ended December 31, 2024, compared to 119,265,000in2023,adecreaseof8119,265,000 in 2023, a decrease of 8%[47] - Cash and cash equivalents decreased to 134,134,000 in 2024 from 149,673,000in2023,adeclineof10149,673,000 in 2023, a decline of 10%[47] - Total assets as of December 31, 2024, were 1,247,556,000, compared to 1,234,371,000in2023,reflectingaslightincreaseof11,234,371,000 in 2023, reflecting a slight increase of 1%[46] - Total liabilities increased to 630,609,000 in 2024 from 589,649,000in2023,anincreaseof7589,649,000 in 2023, an increase of 7%[46] Guidance and Future Outlook - Guidance for 2025 includes product revenues between 1.4 billion and 1.5billion,withadjustedEBITDAprojectedtobe121.5 billion, with adjusted EBITDA projected to be 12% to 13% of product revenues[24] - The company expects variability in future earnings due to potential adjustments related to taxes and non-recurring items, impacting GAAP financial results[35] Tax and Leverage - The effective tax rate for 2024 was 36.5%, influenced by one-time tax settlements and geographic earnings mix[21] - The company maintained a net leverage ratio of approximately 0.5x while repurchasing 50.2 million of common stock[7] Foreign Currency Impact - The company reported a foreign currency translation impact of (1.995)millionforQ42024,contributingtotheoverallrevenuedecline[40]−Thecompanyreportedaforeigncurrencyeffectof(1.995) million for Q4 2024, contributing to the overall revenue decline[40] - The company reported a foreign currency effect of (19,949,000) on cash and cash equivalents for the year ended December 31, 2024[47] - The company experienced a foreign currency translation impact of $(1.934) million on adjusted Automotive revenues in Q4 2024[49]