Gentherm(THRM) - 2024 Q4 - Annual Results

Financial Performance - Achieved 61% year-over-year net income growth with record annual adjusted EBITDA of $183 million[2] - GAAP diluted earnings per share for Q4 2024 was $0.49, down from $0.56 in the prior year, while adjusted diluted earnings per share fell to $0.29 from $0.90[12] - Net income for Q4 2024 was $15.3 million, compared to $18.1 million in Q4 2023, with basic earnings per share decreasing from $0.57 to $0.50[37] - Net income for the year ended December 31, 2024, was $64,947,000, an increase from $40,343,000 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 $1.22 in 2023, an increase of 69%[44] - Adjusted net income for the three months ended December 31, 2024, was $9,094,000, down from $28,891,000 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 $1,456.1 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 $49.8 million for full year 2024[16] - Product revenues for Q4 2024 were $352.9 million, a decrease of 3.8% compared to $366.9 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 $338.8 million in Q4 2024[40] - Automotive revenues for Q4 2024 were $338.834 million, a decrease of 1.8% compared to $353.945 million in Q4 2023[49] - Adjusted Automotive revenues, excluding foreign currency translation impact, were $338.013 million in Q4 2024, compared to $344.339 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 $286.262 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 $94.4 million in 2023[37] - Total operating expenses for Q4 2024 were $62.463 million, down from $64.593 million in Q4 2023[49] - Adjusted operating expenses for Q4 2024 were $55.961 million, compared to $58.385 million in Q4 2023[49] - The company incurred restructuring expenses of $13,110,000 for the year ended December 31, 2024, compared to $4,739,000 in 2023, an increase of 176%[44] - The company reported a restructuring expense of $768 thousand in Q4 2024, compared to $1.327 million in Q4 2023[49] - Non-cash stock-based compensation decreased to $192 thousand in Q4 2024 from $3.164 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 $119,265,000 in 2023, a decrease of 8%[47] - Cash and cash equivalents decreased to $134,134,000 in 2024 from $149,673,000 in 2023, a decline of 10%[47] - Total assets as of December 31, 2024, were $1,247,556,000, compared to $1,234,371,000 in 2023, reflecting a slight increase of 1%[46] - Total liabilities increased to $630,609,000 in 2024 from $589,649,000 in 2023, an increase of 7%[46] Guidance and Future Outlook - Guidance for 2025 includes product revenues between $1.4 billion and $1.5 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) 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]