Quanex Building Products (US:NX)2024-12-12 21:17Financial Performance - Quanex reported net sales of $492.2 million for Q4 2024, a 66.6% increase from $295.5 million in Q4 2023, and $1.28 billion for the full year, up 13.0% from $1.13 billion in 2023[3][5]. - The company experienced a net loss of $13.9 million in Q4 2024, compared to a net income of $27.4 million in Q4 2023, with diluted EPS at ($0.30) versus $0.83[3][5]. - Adjusted EBITDA for Q4 2024 was $81.1 million, up from $50.8 million in Q4 2023, reflecting a margin of 16.5%[3][5]. - Total net sales for the twelve months ended October 31, 2024, reached $1,277,862 million, compared to $1,130,583 million for the same period in 2023, indicating a growth of approximately 13%[31]. - Adjusted EBITDA for the twelve months ended October 31, 2024, was $182,383 million, compared to $109,662 million in 2023[28]. - The company reported a net loss of $13,917 thousand for the three months ended October 31, 2024, compared to a net income of $27,382 thousand in the same period of 2023[19]. - The diluted earnings per share (EPS) for the three months ended October 31, 2024, was $(0.30), down from $0.83 in the prior year[34]. - Cash provided by operating activities for the twelve months ended October 31, 2024, was $88,812 thousand, down from $147,052 thousand in 2023[22]. - Free Cash Flow for the three months ended October 31, 2024, was $(8,172) thousand, compared to $29,553 thousand in the same period of 2023[25]. Debt and Liquidity - Quanex repaid $53.75 million in debt since the Tyman acquisition, with total debt standing at $776.9 million as of October 31, 2024[3][6]. - The leverage ratio of Net Debt to LTM Adjusted EBITDA was 3.7x, while the Debt Covenant Leverage Ratio was 2.3x as of October 31, 2024[6][7]. - Quanex's liquidity was reported at $343.3 million, consisting of $97.7 million in cash and available credit[8]. - The company’s total debt as of October 31, 2024, was $776,926 thousand, a significant increase from $70,000 thousand in 2023[26]. - Total liabilities increased to $1,309,042 thousand as of October 31, 2024, compared to $285,589 thousand as of October 31, 2023[21]. Operational Insights - The Tyman acquisition contributed $203.4 million in net sales during Q4 2024, with overall sales growth attributed to this acquisition[5]. - The company aims to capture targeted synergies from the Tyman acquisition and is focused on integrating the legacy Tyman business[4]. - The company plans to focus on new product development and market expansion strategies to improve future performance[31]. - An Investor and Analyst Day is scheduled for February 6, 2025, to present the new operating structure and guidance for 2025[4][9]. Segment Performance - The United States fenestration segment reported sales of $128,633 million for 2024, down from $138,783 million in 2023, representing a decrease of about 8%[39]. - International fenestration sales increased to $9,323 million in 2024 from $8,081 million in 2023, marking a growth of approximately 15%[39]. - The EU fenestration segment saw a decline in sales from $180,446 million in 2023 to $172,031 million in 2024, a decrease of about 5%[39]. - The United States non-fenestration segment reported sales of $29,050 million in 2024, slightly down from $29,267 million in 2023, a decrease of about 1%[39]. - International non-fenestration sales increased to $5,025 million in 2024 from $4,315 million in 2023, reflecting a growth of approximately 16%[39]. - Tyman's sales for 2024 were $52,761 million, compared to $51,868 million in 2023, indicating a growth of about 2%[39]. - The United States non-fenestration segment reported $49,038 million in sales for 2024, up from $47,092 million in 2023, representing an increase of approximately 4%[39]. Expenses and Margins - Selling, general and administrative expenses for the three months ended October 31, 2024, were $86,891 million, compared to $29,326 million in the same period last year, reflecting a substantial increase[31]. - Interest expense for the three months ended October 31, 2024, was $17,697 million, compared to $1,565 million in the prior year, indicating a significant rise[31]. - The company reported an operating income of $2,830 million for the three months ended October 31, 2024, down from $39,499 million in the same period of 2023[31]. - The company incurred transaction and advisory fees of $26,227 thousand for the three months ended October 31, 2024, compared to $50,767 thousand in the same period last year[35]. - Gross margin for the three months ended October 31, 2024, was $117,050 thousand, with a gross margin percentage of 23.8%, compared to 27.1% in the prior year[35]. - The adjusted net income for the twelve months ended October 31, 2024, was $80,362 million, compared to $90,902 million in the previous year, showing a decrease[31].