Workflow
ACCO(ACCO) - 2024 Q4 - Annual Results
ACCOACCO(ACCO)2025-02-20 21:15

Sales Performance - Reported net sales for 2024 were 1.67billion,adecreaseof9.11.67 billion, a decrease of 9.1% from 1.83 billion in 2023, with adverse foreign exchange impacting sales by 19.3million,or1.119.3 million, or 1.1%[9] - Fourth quarter net sales were 448.1 million, down 8.3% from 488.6millionin2023,withcomparablesalesdecreasingby5.9488.6 million in 2023, with comparable sales decreasing by 5.9%[6] - Net sales for Q4 2024 decreased by 8.3% to 448.1 million compared to 488.6millioninQ42023,andforthefullyear,netsalesdecreasedby9.1488.6 million in Q4 2023, and for the full year, net sales decreased by 9.1% to 1,666.2 million from 1,832.8million[35]−ACCOBrandsAmericasreportedanetsalesdeclineof14.31,832.8 million[35] - ACCO Brands Americas reported a net sales decline of 14.3% in Q1 2024, with a 32.8 million decrease[65] - ACCO Brands International experienced a 6.3% drop in net sales in Q1 2024, resulting in a 10.9milliondecrease[65]−TotalnetsalesforACCOBrandsdecreasedby10.910.9 million decrease[65] - Total net sales for ACCO Brands decreased by 10.9% in Q1 2024, amounting to a 43.7 million decline[65] - In Q2 2024, ACCO Brands Americas saw a 13.1% decline in net sales, translating to a 44.1milliondecrease[65]−ACCOBrandsInternational′snetsalesfellby7.144.1 million decrease[65] - ACCO Brands International's net sales fell by 7.1% in Q2 2024, with a 11.2 million decrease[65] - Total net sales for ACCO Brands in Q2 2024 decreased by 11.2%, resulting in a 55.3milliondecline[65]−ACCOBrandsAmericasreportedan8.955.3 million decline[65] - ACCO Brands Americas reported an 8.9% decline in net sales in Q3 2024, with a 25.3 million decrease[65] - In Q4 2024, ACCO Brands Americas experienced an 11.8% decline in net sales, resulting in a 33.6milliondecrease[65]−Fortheyear−to−date2024,ACCOBrandsAmericasreporteda12.033.6 million decrease[65] - For the year-to-date 2024, ACCO Brands Americas reported a 12.0% decline in net sales, amounting to a 135.8 million decrease[65] - Total net sales for ACCO Brands year-to-date 2024 decreased by 9.1%, resulting in a 166.6milliondecline[65]FinancialPerformance−Netincomefor2024was166.6 million decline[65] Financial Performance - Net income for 2024 was 20.6 million, or 0.21pershare,comparedtoanetlossof0.21 per share, compared to a net loss of 59.4 million, or (0.62)persharein2023[8]−AdjustedEPSfor2024was(0.62) per share in 2023[8] - Adjusted EPS for 2024 was 1.02, reflecting unfavorable foreign exchange trends, compared to 1.09in2023[12]−Thecompanyexpectscomparablesalestodeclinebetween1.01.09 in 2023[12] - The company expects comparable sales to decline between 1.0% to 5.0% for 2025, with adjusted EPS projected to be in the range of 1.00 to 1.05[22]−Netlossforthefullyear2024was1.05[22] - Net loss for the full year 2024 was 101.6 million, compared to a loss of 21.8millionin2023,reflectingasubstantialdeclineinprofitability[38]−ThereportedGAAPnetlossforthetwelvemonthsendedDecember31,2024,was21.8 million in 2023, reflecting a substantial decline in profitability[38] - The reported GAAP net loss for the twelve months ended December 31, 2024, was (101.6) million, with a diluted loss per share of (1.06)[54]−AdjustednetincomeperdilutedshareforthethreemonthsendedDecember31,2024,was(1.06)[54] - Adjusted net income per diluted share for the three months ended December 31, 2024, was 0.39, compared to 0.39forthesameperiodin2023[51]CashFlowandCostManagement−Freecashflowfor2024was0.39 for the same period in 2023[51] Cash Flow and Cost Management - Free cash flow for 2024 was 132.3 million, an increase from 114.9millionintheprioryear[13]−Cashandcashequivalentsincreasedto114.9 million in the prior year[13] - Cash and cash equivalents increased to 74.1 million at the end of 2024 from 66.4millionattheendof2023,reflectingpositivecashflowfromoperatingactivities[37]−FreeCashFlowforQ42024was66.4 million at the end of 2023, reflecting positive cash flow from operating activities[37] - Free Cash Flow for Q4 2024 was 45.4 million, compared to 53.9millioninQ42023,reflectingadeclineof15.753.9 million in Q4 2023, reflecting a decline of 15.7%[61] - Net cash provided by operating activities for the year ended December 31, 2024, increased to 148.2 million from 128.7millionin2023,markingagrowthof15.3128.7 million in 2023, marking a growth of 15.3%[61] - The company realized approximately 25 million in cost savings during 2024, with an additional 100millionincumulativesavingsexpectedfromamulti−yearcostreductionprogram[4][15]−Stock−basedcompensationdecreasedto100 million in cumulative savings expected from a multi-year cost reduction program[4][15] - Stock-based compensation decreased to 11.9 million for the year ended December 31, 2024, down from 14.8millionin2023,areductionof19.614.8 million in 2023, a reduction of 19.6%[59] - Interest expense, net, decreased to 45.1 million for the year ended December 31, 2024, from 51.5millionin2023,adecreaseof11.851.5 million in 2023, a decrease of 11.8%[59] Asset and Liability Management - The consolidated leverage ratio as of December 31, 2024, was 3.4x, with net debt reduced by 94 million[13] - Total assets decreased to 2,228.4millionin2024from2,228.4 million in 2024 from 2,644.8 million in 2023, primarily due to reductions in goodwill and identifiable intangibles[33] - Total liabilities decreased to 1,622.3millionin2024from1,622.3 million in 2024 from 1,857.8 million in 2023, indicating improved financial leverage[33] Operational Efficiency - Gross profit margin for Q4 2024 was 34.7%, slightly down from 34.8% in Q4 2023, while the full year gross profit margin improved to 33.3% from 32.6%[36] - Operating income for Q4 2024 was 42.0million,asignificantrecoveryfromalossof42.0 million, a significant recovery from a loss of 52.8 million in Q4 2023, while the full year operating loss was 37.0millioncomparedtoaprofitof37.0 million compared to a profit of 44.7 million in 2023[35] - Restructuring costs decreased by 48.8% in Q4 2024 to 10.7millionfrom10.7 million from 20.9 million in Q4 2023, indicating improved operational efficiency[35] - Restructuring costs for the twelve months ended December 31, 2024, amounted to 16.8million[54]ImpairmentCharges−Thecompanyreportedasignificantnon−cashchargeforimpairmentofgoodwillandintangibleassetsof16.8 million[54] Impairment Charges - The company reported a significant non-cash charge for impairment of goodwill and intangible assets of 165.2 million for the full year 2024, compared to 89.5millionin2023[38]−Thecompanyreportedagoodwillimpairmentchargeof89.5 million in 2023[38] - The company reported a goodwill impairment charge of 127.5 million for the twelve months ended December 31, 2024[54] - The company reported an impairment of goodwill and intangible assets of 165.2millionfortheyearendedDecember31,2024,comparedto165.2 million for the year ended December 31, 2024, compared to 89.5 million in 2023, indicating a significant increase[59] Future Outlook - The company anticipates first quarter adjusted loss per share to be in the range of (0.03)to(0.03) to (0.05) due to fixed cost deleveraging[21] - The company plans to continue its capital allocation strategy, including debt reduction, dividend payments, and opportunistic share repurchases[21] - The company anticipates a full-year non-GAAP estimated annual tax rate of 30.0% as of December 31, 2024[56] - Adjusted EBITDA for the twelve months ended December 31, 2024, was 42.5million,or30.042.5 million, or 30.0% of net income[54] - Adjusted EBITDA for the year ended December 31, 2024, was 228.3 million, down from $250.5 million in 2023, representing a decrease of 8.8%[59] - Adjusted EBITDA as a percentage of net sales for the year ended December 31, 2024, remained stable at 13.7%[59]