Perimeter Solutions(US:PRM)2025-02-20 17:27Financial Performance - Net sales increased by $238.9 million for the year ended December 31, 2024, reaching $560.97 million, a 74% increase compared to 2023[235]. - Gross profit for the year ended December 31, 2024, was $317.09 million, reflecting a 147% increase from $128.30 million in 2023[235]. - The company reported a net loss of $5.91 million for the year ended December 31, 2024, compared to a net income of $67.49 million in 2023[235]. - Operating loss for 2024 was $(3.767) million, a decline from an operating income of $94.450 million in 2023[337]. - Total operating expenses surged to $320.85 million, an increase of 848% compared to $33.85 million in the previous year[235]. Segment Performance - Fire Safety segment net sales rose by $210.7 million, driven by a $198.4 million increase in fire retardant sales and a $12.3 million increase in fire suppressant sales[235]. - Net sales for the Fire Safety segment increased to $436.3 million in 2024 from $225.6 million in 2023, while Segment Adjusted EBITDA rose by $163.9 million to $240.1 million[244]. - The Specialty Products segment saw a $28.2 million increase in net sales, with $22.1 million from the Americas and $6.1 million from Europe[235]. - Specialty Products segment net sales increased to $124.7 million in 2024 from $96.6 million in 2023, with Segment Adjusted EBITDA rising by $19.6 million to $40.2 million[245]. Cash Flow and Liquidity - Cash provided by operating activities for the year ended December 31, 2024, was $188.4 million, a significant increase from $0.2 million in 2023[268]. - Cash and cash equivalents increased significantly to $198,456,000 in 2024 from $47,276,000 in 2023, marking a growth of over 319%[334]. - The company had $198.5 million in cash and cash equivalents as of December 31, 2024, with no significant default risk identified[403]. - Cash used in investing activities was $42.9 million for 2024, which included a business purchase for $32.8 million[270]. Acquisitions and Investments - The company completed an acquisition of IMS DE Holdings, LLC for a total purchase price of $32.8 million, recording intangible assets valued at $6.0 million for customer relationships and $7.1 million for technology[314]. - The Company plans to continue investing in the expansion of its fire safety business through acquisitions to grow its global customer base[231]. Debt and Financing - The Revolving Credit Facility provides for a senior secured revolving credit facility of up to $100.0 million, maturing on November 9, 2026, with no outstanding borrowings as of December 31, 2024[251][253]. - The Company assumed $675.0 million principal amount of 5.00% senior secured notes due October 30, 2029, with interest payable semi-annually[254]. - For the year ended December 31, 2024, the company reported net cash provided by financing activities of $8,349,000, a significant improvement compared to a net cash used of $(64,453,000) in 2023[343]. Tax and Foreign Currency - Income tax benefit increased by $35.1 million for the year ended December 31, 2024, primarily due to the Redomiciliation Transaction[243]. - The Company reported a foreign currency loss of $2.4 million for the year ended December 31, 2024, compared to a foreign currency gain of $1.7 million in 2023[242]. - The company is exposed to foreign currency exchange risks, particularly with the Euro, Canadian dollar, Norwegian krone, and Australian dollar[295]. Shareholder Equity and Stock - The Company repurchased 2,988,291 shares in 2024, with an approximate dollar value of shares that may yet be repurchased under the Share Repurchase Plan at $97.2 million as of December 31, 2024[259]. - The Company issued 10 million 6.50% Redeemable Preferred Shares valued at $100.0 million, with a preferred annual cumulative dividend of 6.50%[297]. - The EverArc Founder Entity is entitled to receive a Fixed Annual Advisory Amount of 2,357,061 shares of Common Stock, representing 1.5% of the total shares outstanding, until December 31, 2027[289]. Assets and Liabilities - The company reported total assets of $2,416,394,000 as of December 31, 2024, an increase from $2,315,422,000 in 2023, representing a growth of approximately 4.4%[334]. - Total liabilities increased to $1,259,124,000 in 2024 from $1,163,127,000 in 2023, reflecting a rise of approximately 8.2%[334]. - The company's accumulated deficit stood at $586,723,000 as of December 31, 2024, compared to $580,818,000 in 2023, showing a slight increase in losses[334]. Goodwill and Intangible Assets - There was no impairment of goodwill during the years ended December 31, 2024, 2023, or 2022, reflecting stable asset valuations[366]. - Goodwill balance as of December 31, 2024, is $1,034,543, a decrease from $1,036,279 as of December 31, 2023, primarily due to foreign currency translation adjustments[415]. - Total definite lived intangible assets as of December 31, 2024, amount to $898,417, compared to $945,007 as of December 31, 2023, reflecting a decrease in net book value[416]. Regulatory and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the audit opinion[318]. - The Company accounts for income taxes under the asset-and-liability method, recognizing deferred tax assets and liabilities for future tax consequences[379]. - The Company adopted ASU No. 2023-07, requiring enhanced disclosures about significant segment expenses, effective for fiscal years beginning after December 15, 2023[412].