Quaker(US:KWR)2025-02-24 21:37Financial Performance - Q4 2024 net sales were $444.1 million, a decrease of 5% from $467.1 million in Q4 2023, driven by a 4% decline in selling price and product mix, a 2% unfavorable impact from foreign currency translation, and a 1% decline in organic sales volumes[4] - Q4 2024 net income was $14.2 million, or $0.81 per diluted share, compared to $20.2 million, or $1.12 per diluted share in Q4 2023; non-GAAP net income was $23.6 million, or $1.33 per diluted share, down from $31.9 million, or $1.78 per diluted share in the prior year[5] - Full year 2024 net sales totaled $1.84 billion, with net income of $116.6 million and earnings per diluted share of $6.51; non-GAAP net income was $133.5 million, or $7.44 per diluted share[6] - Adjusted EBITDA for Q4 2024 was $64.8 million, a decrease of approximately 16% from $77.0 million in Q4 2023; full year adjusted EBITDA was $310.9 million[5] - Non-GAAP operating income for Q4 2024 was $40,453,000, compared to $50,884,000 in Q4 2023, reflecting a decrease of 20.4%[21] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $310,918,000, compared to $320,379,000 for the same period in 2023, a decrease of 2.1%[21] - Non-GAAP net income for the twelve months ended December 31, 2024, was $133,456,000, slightly down from $137,643,000 in 2023, a decrease of 3.2%[22] - Non-GAAP earnings per diluted share for Q4 2024 were $1.33, compared to $1.78 in Q4 2023, a decline of 25.3%[22] Segment Performance - The Americas segment reported Q4 2024 net sales of $208.6 million, down 8% year-over-year, while the EMEA segment saw a 7% decline to $125.9 million; the Asia/Pacific segment increased by 5% to $109.6 million[9] - Segment operating earnings in the Americas for Q4 2024 were $50,930,000, a decrease of 17.6% from $61,756,000 in Q4 2023[24] - The Americas segment reported net sales of $208,585,000 in Q4 2024, down 7.9% from $226,564,000 in Q4 2023[24] - EMEA segment net sales decreased to $125,877,000 in Q4 2024 from $135,745,000 in Q4 2023, a decline of 7.3%[24] Cash Flow and Debt - Operating cash flow for 2024 was $204.6 million, down from $279.0 million in 2023, primarily due to a higher inflow of working capital in the prior year[14] - As of December 31, 2024, total gross debt was $708.3 million, with cash and cash equivalents of $188.9 million, resulting in net debt of $519.4 million[15] - Interest expense, net for the twelve months ended December 31, 2024, was $41,002,000, down from $50,699,000 in 2023, a decrease of 19.3%[21] - Total liabilities decreased to $1.26 billion in 2024 from $1.33 billion in 2023, indicating a reduction of 5.5%[30] - Payments of long-term debt increased to $57,221 million in 2024 from $38,932 million in 2023, representing a rise of approximately 46.7%[33] Shareholder Returns - The Company returned approximately $82.4 million to shareholders through dividends and share repurchases in 2024, including repurchasing 312,997 shares for approximately $49.2 million[15] - Share repurchase program resulted in $49,247 million spent in 2024, with no prior expenditures in 2023[33] Strategic Initiatives - The Company completed two strategic acquisitions in 2024, contributing to sales growth despite challenging market conditions[6] - The Company anticipates cost savings of at least $20 million in 2025 through steps to reduce complexity and improve operational efficiency[7] Asset Management - Total assets as of December 31, 2024, were $2.61 billion, a decrease from $2.71 billion as of December 31, 2023[30] - Cash and cash equivalents were $188.9 million as of December 31, 2024, down from $194.5 million in 2023[30] - The company reported a significant increase in accounts receivable, which rose to $24,975 million in 2024 from $32,169 million in 2023, indicating a decrease of approximately 22.3%[33] Economic Outlook - The company expects to maintain sufficient liquidity and compliance with credit facility terms despite economic uncertainties[25] - The effect of foreign exchange rate changes on cash resulted in a loss of $11,141 million in 2024, contrasting with a gain of $771 million in 2023[33] - The company experienced a net decrease in cash and cash equivalents of $5,647 million in 2024, compared to an increase of $13,564 million in 2023[33]