FGI Industries .(FGI) - 2024 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2024 was $35.6 million, representing a year-over-year increase of 15.0$131.8 million, an increase of 12.4% year-over-year, with gross profit of $35.4 million, up 10.4$131.82 million, up 12.5% from $117.24 million in 2023[27]. - Revenue for the three months ended December 31, 2024, was$35,594,426, an increase from $30,956,813 in the same period of 2023, representing a growth of approximately 15.5$21.8 million, up from $20.6 million in the prior year, while Bath Furniture revenue increased to$3.5 million from $2.5 million[14]. - Shower Systems revenue grew to$6.7 million in Q4 2024, an increase from $5.7 million last year, driven by positive demand trends[14]. - The Other segment, including Covered Bridge, saw revenue increase by 68.3$8.7 million, a decrease of 3.2% compared to the prior year, with a gross margin of 24.6%, down 460 basis points year-over-year[4][8]. - Operating loss for Q4 2024 was $1.3 million, compared to operating income of$1.2 million in the prior year, with adjusted operating loss of $1.1 million[9][10]. - Net loss for the year ended December 31, 2024, was$1.73 million, compared to a net income of $579,564 in 2023[29]. - The company reported a comprehensive loss of$2.86 million for the year ended December 31, 2024, compared to a comprehensive income of $864,384 in 2023[27]. - Adjusted Operating Loss for the three months ended December 31, 2024, was$(1,140,980), compared to an income of $1,366,895 in the same period of 2023[31]. - Adjusted Net Loss for the year ended December 31, 2024, was$(939,648), a decline from an income of $1,731,512 in 2023[31]. - Net loss attributable to non-controlling shareholders for the year ended December 31, 2024, was$(533,188), compared to $(154,040) in 2023[31]. Expenses and Liabilities - Operating expenses for the year ended December 31, 2024, totaled$37.53 million, up 25.9% from $29.77 million in 2023[27]. - Total liabilities as of December 31, 2024, rose to$53.90 million, an increase of 29.1% from $41.72 million in 2023[25]. - The company experienced a significant increase in short-term loans, which rose to$14.50 million as of December 31, 2024, compared to $6.96 million in 2023, indicating increased leverage[25]. Cash and Liquidity - Total liquidity as of December 31, 2024, was$15.6 million, consisting of $4.6 million in cash and cash equivalents and$11.0 million available under credit facilities[12]. - Cash and cash equivalents at the end of 2024 decreased to $4.56 million from$7.78 million at the end of 2023, a decline of 41.5%[29]. - Total current assets as of December 31, 2024, increased to $52.90 million, up 14.5$46.11 million in 2023[25]. Future Guidance and Investments - The company provided fiscal 2025 guidance with total net revenue expected to be between $135 million and$145 million, and total adjusted operating income projected to be between $(2.0) million and$(1.5) million[15]. - FGI continues to invest in its brands and future growth initiatives, focusing on strategic investments in products and channels[4]. Research and Development - Research and development expenses increased to $1.70 million for the year ended December 31, 2024, compared to$1.38 million in 2023, reflecting a focus on innovation[27].