Gentherm(US:THRM)2024-07-31 10:10Financial Performance - Record quarterly revenue of $376 million, representing a 0.9% increase from $372.3 million in Q2 2023[1] - Adjusted EBITDA of $49.9 million, an increase of $7.5 million or 17.7% year-over-year from $42.4 million[9] - Adjusted diluted earnings per share rose to $0.66, compared to $0.58 in the prior-year period[22] - Net income for the three months ended June 30, 2024, was $18,876, a significant recovery from a loss of $(1,551) in the same period of 2023[38] - Adjusted net income for the three months ended June 30, 2024, was $21,036, up from $19,040 in the same period of 2023[38] - Net income for the six months ended June 30, 2024, was $33,661 thousand, a significant increase from $6,412 thousand in 2023[42] - The company reported a diluted earnings per share of $0.60 for the three months ended June 30, 2024, compared to a loss of $(0.05) in the same period of 2023[38] Revenue Breakdown - Automotive new business awards totaled $660 million in the quarter, contributing to a year-to-date total of $1.2 billion[3] - Automotive revenues increased 0.7% year-over-year; adjusting for foreign currency translation, the increase was 1.8%[16] - The automotive segment reported a subtotal revenue of $364,002 for the three months ended June 30, 2024, a 0.7% increase from $361,533 in the same period of 2023[34] - The medical segment revenue increased by 8.3% to $11,681 for the three months ended June 30, 2024, compared to $10,790 in the same period of 2023[34] - Automotive revenues for 2024 reached $364,002 thousand, compared to $361,533 thousand in 2023, reflecting a year-over-year growth[44] - Adjusted Automotive Climate and Comfort Solutions revenues were $296,823 thousand, up from $286,357 thousand, marking a 4.8% increase year-over-year[44] - Non-automotive electronics revenues were reported at $346 million for 2024, compared to $3.609 million in 2023[71] Cost and Expenses - Gross margin rate increased to 25.7%, up from 23.6% in the prior-year period, driven by cost reduction initiatives[7] - Net research and development expenses decreased by 11.5% year-over-year to $21.9 million[20] - Selling, general and administrative expenses rose by 2.6% year-over-year to $39.4 million, primarily due to higher compensation expenses[8] - Depreciation and amortization expenses for the three months ended June 30, 2024, were $12.811 million, slightly higher than $12.393 million in 2023[63] - Interest expense, net, increased to $4.002 million for the three months ended June 30, 2024, from $1.932 million in 2023[63] - Restructuring expenses for the three months ended June 30, 2024, were $2.442 million, up from $1.044 million in 2023[63] Cash Flow and Assets - Cash and cash equivalents decreased to $123,466 as of June 30, 2024, from $149,673 at December 31, 2023[40] - Net cash provided by operating activities was $26,824 thousand, down from $58,612 thousand in the previous year[42] - Net cash used in investing activities increased to $24,680 thousand from $6,776 thousand in 2023, primarily due to higher purchases of property and equipment[42] - The company reported a net decrease in cash and cash equivalents of $26,207 thousand, compared to an increase of $14,780 thousand in the prior year[42] - Total current assets increased to $689,686 as of June 30, 2024, compared to $687,564 at December 31, 2023[40] - Total liabilities rose to $600,249 as of June 30, 2024, from $589,649 at December 31, 2023[40] Market Outlook - The company anticipates a low single-digit decline in light vehicle production in key markets for 2024 compared to 2023[47] - Foreign currency translation had a negative impact of $3,187 thousand on revenues[44] - The company is focused on managing new product launches and research and development to enhance market acceptance of its products and technologies[51]