FGI Industries .(US:FGI)2024-11-13 21:52Revenue Performance - Revenue increased by $6.2 million, or 20.6%, to $36.1 million for the three months ended September 30, 2024, compared to $29.9 million for the same period in 2023[171]. - For the nine months ended September 30, 2024, revenue rose by $9.9 million, or 11.5%, to $96.2 million from $86.3 million in the prior year[171]. - Revenue for the nine months ended September 30, 2024, was $96,223,647, an increase from $86,284,791 for the same period in 2023, representing an increase of 11.3%[217]. - Sanitaryware sales accounted for 61.6% of total revenue for the nine months ended September 30, 2024, with a revenue increase of 7.9% to $59.3 million[174]. - Bath furniture sales increased by 64.4% to $4.2 million for the three months ended September 30, 2024, but decreased by 8.3% to $11.3 million for the nine months[175]. - Shower systems revenue rose by 44.9% to $7.1 million for the three months ended September 30, 2024, and by 31.9% to $18.8 million for the nine months[176]. - Revenue from other products increased by 93.3% to $3.3 million for the three months ended September 30, 2024, and by 43.1% to $6.8 million for the nine months[177]. Profitability and Loss - The company generated a net loss of $698,248 for the three months ended September 30, 2024, compared to a net income of $343,492 for the same period in 2023, representing a decrease of 303.3%[168]. - Net loss for the nine months ended September 30, 2024, was $1.3 million, compared to a net income of $0.1 million for the same period in 2023[188]. - The company reported a net loss of $1,268,111 for the nine months ended September 30, 2024, compared to a net income of $525,189 for the same period in 2023[218]. Expenses - Selling and distribution expenses increased by 37.4% to $6.3 million for the three months ended September 30, 2024, compared to $4.6 million in the same period last year[168]. - Selling and distribution expenses increased by 32.6% to $18.7 million for the nine months ended September 30, 2024, driven by inflation and sales growth initiatives[184]. Gross Profit and Margin - Gross margin improved to 27.7% in the first nine months of 2024, up from 26.7% in the same period last year[164]. - The company reported a gross profit of $9.3 million for the three months ended September 30, 2024, an increase of 18.9% from $7.8 million in the same period last year[168]. - Gross profit for the nine months ended September 30, 2024, was $26.7 million, an increase of 15.8% compared to the same period in 2023[183]. Cash Flow and Liquidity - Total liquidity as of September 30, 2024, was $16.3 million, providing sufficient financial flexibility for organic growth strategies[164]. - As of September 30, 2024, the company had cash of $3.0 million and working capital of $12.7 million[189]. - Net cash used in operating activities for the nine months ended September 30, 2024, was approximately $8.0 million, compared to $2.0 million for the same period in 2023, indicating a significant increase in cash outflow[203][204]. - Net cash provided by financing activities was approximately $5.5 million for the nine months ended September 30, 2024, contrasting with a cash outflow of $1.8 million for the same period in 2023[207]. - The net cash used in investing activities was $2.0 million for the nine months ended September 30, 2024, compared to $0.9 million for the same period in 2023, indicating increased investment activity[206]. Debt and Financing - As of September 30, 2024, the outstanding balance of short-term loans was $9,161,641, an increase from $6,959,175 as of December 31, 2023, representing a 31.5% increase[196]. - The company may seek additional cash resources in the future for investments or acquisitions, depending on business conditions[190]. - As of September 30, 2024, borrowings under the CTBC Credit Line amounted to $2,297,464, up from $0 as of December 31, 2023[200]. - The company was not in compliance with certain financial covenants related to its debt to tangible net worth ratio as of September 30, 2024, and has requested a waiver from the lender[197]. - The interest rate on the loan as of September 30, 2024, was 7.75%, down from 8.25% as of December 31, 2023[195]. Strategic Initiatives - The company entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, expected to enhance product offerings[164]. - The company plans to continue investing in research and development to drive product innovation in 2024[164]. - The company has signed agreements to expand into India, Eastern Europe, and the UK, indicating a focus on geographic expansion[164]. Capital Expenditures - Capital expenditures amounted to $2.0 million for the nine months ended September 30, 2024, compared to $0.9 million for the same period in 2023, reflecting a 122.2% increase[208].