Shoals Technologies (US:SHLS)2025-02-25 12:12Revenue Performance - Revenue for Q4 2024 was $107 million, a decrease of 18% compared to $130.4 million in Q4 2023[6] - Full year 2024 revenue decreased 18% to $399.2 million from $488.9 million in 2023[11] - Revenue for the year ended December 31, 2024, was $399,208 thousand, a decrease of 18.4% compared to $488,939 thousand in 2023[33] - For Q1 2025, the company expects revenue in the range of $70 million to $80 million[20] - For the full year 2025, revenue is projected to be between $410 million and $450 million[20] - For the three months ended December 31, 2024, revenue was $106.987 million, a decrease from $130.436 million in the same period of 2023, representing a decline of approximately 18%[41] Profitability Metrics - Adjusted gross profit percentage for Q4 2024 was 37.6%, down from 42.5% in the prior-year period[7] - Adjusted EBITDA for Q4 2024 was $26.4 million, down from $39.1 million in the prior-year period[10] - Net income for Q4 2024 was $7.8 million, compared to $16.6 million in Q4 2023, with diluted earnings per share of $0.05 versus $0.10[9] - Adjusted gross profit for the year ended December 31, 2024, was $155.781 million, down from $230.009 million in 2023, indicating a decrease of about 32%[41] - The adjusted gross profit percentage for the year ended December 31, 2024, was 39.0%, compared to 47.0% in 2023, reflecting a decline of 8 percentage points[41] - Adjusted EBITDA for the year ended December 31, 2024, was $99.084 million, down from $173.391 million in 2023, a decrease of approximately 43%[41] - Net income attributable to Shoals Technologies Group, Inc. for the year ended December 31, 2024, was $24.127 million, compared to $39.974 million in 2023, representing a decline of about 40%[43] - Adjusted diluted EPS for the year ended December 31, 2024, was $0.35, down from $0.65 in 2023, indicating a decrease of approximately 46%[45] Expenses and Liabilities - General and administrative expenses for the full year 2024 were $82.3 million, an increase from $80.7 million in 2023[13] - The company incurred interest expense of $13,827 thousand for the year ended December 31, 2024, compared to $24,100 thousand in 2023, a decrease of 42.5%[33] - The company’s operating expenses totaled $90,845 thousand for the year ended December 31, 2024, slightly up from $89,269 thousand in 2023, reflecting a marginal increase of 1.8%[33] Asset and Equity Changes - Total current assets decreased to $188,352 thousand in 2024 from $227,186 thousand in 2023, a decline of 17.1%[31] - Total liabilities decreased to $236,280 thousand in 2024 from $298,997 thousand in 2023, a reduction of 21.0%[31] - Cash and cash equivalents increased to $23,511 thousand at the end of 2024 from $22,707 thousand at the end of 2023, a rise of 3.5%[35] - The company’s total stockholders' equity increased to $556,800 thousand in 2024 from $544,996 thousand in 2023, an increase of 2.1%[31] Future Outlook and Strategic Focus - The company is focusing on improving productivity measures to mitigate short-term pressures on gross profit margins[4] - The company plans to continue excluding certain discrete liability events from non-GAAP measures to provide a clearer view of operating performance[44] - For Q1 2025, the company expects adjusted EBITDA between $10 million and $15 million[20] - For the full year 2025, adjusted EBITDA is expected to range from $100 million to $115 million[20] Tax and Shareholder Information - The effective income tax rate for adjusted net income was 25.2% for the year ended December 31, 2024, compared to 26.2% in 2023[45] - The diluted weighted average shares outstanding for the year ended December 31, 2024, was 168.725 million, slightly up from 164.504 million in 2023[45] Special Expenses - Wire insulation shrinkback expenses for the year ended December 31, 2024, amounted to $13.3 million, significantly lower than $59.1 million in 2023, a reduction of approximately 77%[44]