ACCO(US:ACCO)2025-02-20 21:15Sales Performance - Reported net sales for 2024 were $1.67 billion, a decrease of 9.1% from $1.83 billion in 2023, with adverse foreign exchange impacting sales by $19.3 million, or 1.1%[9] - Fourth quarter net sales were $448.1 million, down 8.3% from $488.6 million in 2023, with comparable sales decreasing by 5.9%[6] - Net sales for Q4 2024 decreased by 8.3% to $448.1 million compared to $488.6 million in Q4 2023, and for the full year, net sales decreased by 9.1% to $1,666.2 million from $1,832.8 million[35] - ACCO Brands Americas reported a net sales decline of 14.3% in Q1 2024, with a $32.8 million decrease[65] - ACCO Brands International experienced a 6.3% drop in net sales in Q1 2024, resulting in a $10.9 million decrease[65] - Total net sales for ACCO Brands decreased by 10.9% in Q1 2024, amounting to a $43.7 million decline[65] - In Q2 2024, ACCO Brands Americas saw a 13.1% decline in net sales, translating to a $44.1 million decrease[65] - ACCO Brands International's net sales fell by 7.1% in Q2 2024, with a $11.2 million decrease[65] - Total net sales for ACCO Brands in Q2 2024 decreased by 11.2%, resulting in a $55.3 million decline[65] - ACCO Brands Americas reported an 8.9% decline in net sales in Q3 2024, with a $25.3 million decrease[65] - In Q4 2024, ACCO Brands Americas experienced an 11.8% decline in net sales, resulting in a $33.6 million decrease[65] - For the year-to-date 2024, ACCO Brands Americas reported a 12.0% decline in net sales, amounting to a $135.8 million decrease[65] - Total net sales for ACCO Brands year-to-date 2024 decreased by 9.1%, resulting in a $166.6 million decline[65] Financial Performance - Net income for 2024 was $20.6 million, or $0.21 per share, compared to a net loss of $59.4 million, or $(0.62) per share in 2023[8] - Adjusted EPS for 2024 was $1.02, reflecting unfavorable foreign exchange trends, compared to $1.09 in 2023[12] - The company expects comparable sales to decline between 1.0% to 5.0% for 2025, with adjusted EPS projected to be in the range of $1.00 to $1.05[22] - Net loss for the full year 2024 was $101.6 million, compared to a loss of $21.8 million in 2023, reflecting a substantial decline in profitability[38] - The reported GAAP net loss for the twelve months ended December 31, 2024, was $(101.6) million, with a diluted loss per share of $(1.06)[54] - Adjusted net income per diluted share for the three months ended December 31, 2024, was $0.39, compared to $0.39 for the same period in 2023[51] Cash Flow and Cost Management - Free cash flow for 2024 was $132.3 million, an increase from $114.9 million in the prior year[13] - Cash and cash equivalents increased to $74.1 million at the end of 2024 from $66.4 million at the end of 2023, reflecting positive cash flow from operating activities[37] - Free Cash Flow for Q4 2024 was $45.4 million, compared to $53.9 million in Q4 2023, reflecting a decline of 15.7%[61] - Net cash provided by operating activities for the year ended December 31, 2024, increased to $148.2 million from $128.7 million in 2023, marking a growth of 15.3%[61] - The company realized approximately $25 million in cost savings during 2024, with an additional $100 million in cumulative savings expected from a multi-year cost reduction program[4][15] - Stock-based compensation decreased to $11.9 million for the year ended December 31, 2024, down from $14.8 million in 2023, a reduction of 19.6%[59] - Interest expense, net, decreased to $45.1 million for the year ended December 31, 2024, from $51.5 million in 2023, a decrease of 11.8%[59] Asset and Liability Management - The consolidated leverage ratio as of December 31, 2024, was 3.4x, with net debt reduced by $94 million[13] - Total assets decreased to $2,228.4 million in 2024 from $2,644.8 million in 2023, primarily due to reductions in goodwill and identifiable intangibles[33] - Total liabilities decreased to $1,622.3 million in 2024 from $1,857.8 million in 2023, indicating improved financial leverage[33] Operational Efficiency - Gross profit margin for Q4 2024 was 34.7%, slightly down from 34.8% in Q4 2023, while the full year gross profit margin improved to 33.3% from 32.6%[36] - Operating income for Q4 2024 was $42.0 million, a significant recovery from a loss of $52.8 million in Q4 2023, while the full year operating loss was $37.0 million compared to a profit of $44.7 million in 2023[35] - Restructuring costs decreased by 48.8% in Q4 2024 to $10.7 million from $20.9 million in Q4 2023, indicating improved operational efficiency[35] - Restructuring costs for the twelve months ended December 31, 2024, amounted to $16.8 million[54] Impairment Charges - The company reported a significant non-cash charge for impairment of goodwill and intangible assets of $165.2 million for the full year 2024, compared to $89.5 million in 2023[38] - The company reported a goodwill impairment charge of $127.5 million for the twelve months ended December 31, 2024[54] - The company reported an impairment of goodwill and intangible assets of $165.2 million for the year ended December 31, 2024, compared to $89.5 million in 2023, indicating a significant increase[59] Future Outlook - The company anticipates first quarter adjusted loss per share to be in the range of ($0.03) to ($0.05) due to fixed cost deleveraging[21] - The company plans to continue its capital allocation strategy, including debt reduction, dividend payments, and opportunistic share repurchases[21] - The company anticipates a full-year non-GAAP estimated annual tax rate of 30.0% as of December 31, 2024[56] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $42.5 million, or 30.0% of net income[54] - Adjusted EBITDA for the year ended December 31, 2024, was $228.3 million, down from $250.5 million in 2023, representing a decrease of 8.8%[59] - Adjusted EBITDA as a percentage of net sales for the year ended December 31, 2024, remained stable at 13.7%[59]