Array Technologies(US:ARRY)2025-02-27 21:10Revenue Performance - Fourth quarter 2024 revenue reached $275.2 million, exceeding the mid-point of guidance[4] - Full year 2024 revenue totaled $915.8 million, with a gross margin of 32.5%[4] - Total revenue for the year ended December 31, 2024, was $915.8 million, a decrease of 42% compared to $1.58 billion in 2023[24] - Revenue for the three months ended December 31, 2024, was $275,232 thousand, a decrease from $341,615 thousand in the same period of 2023, representing a decline of approximately 19.4%[29] - ARRAY expects over 20% year-over-year revenue growth for 2025 at the midpoint of guidance[5] - The company anticipates first quarter 2025 revenue in the range of $260 million to $270 million[7] Profitability and Loss - The company reported a net loss to common shareholders of $(296.1) million for the full year, including a $236.0 million non-cash goodwill impairment charge[4] - Adjusted EBITDA for the fourth quarter was $45.2 million, while the full year adjusted EBITDA was $173.6 million[4] - Gross profit for the year ended December 31, 2024, was $297.7 million, down from $415.6 million in 2023, reflecting a gross margin of approximately 32.5%[24] - The company reported a net loss of $240.4 million for the year ended December 31, 2024, compared to a net income of $137.2 million in 2023[24] - Net loss for the three months ended December 31, 2024, was $(126,903) thousand, compared to a net income of $19,342 thousand in the same period of 2023[30] - Adjusted net income for the three months ended December 31, 2024, was $25,117 thousand, slightly down from $26,415 thousand in the same period of 2023[30] Cash and Liabilities - Cash and cash equivalents increased to $363.0 million as of December 31, 2024, from $249.1 million in 2023[22] - Total current liabilities rose to $437.8 million in 2024, up from $335.7 million in 2023, indicating a 30% increase[24] - The company experienced a significant increase in accounts payable, which rose to $172.4 million in 2024 from $119.5 million in 2023[24] - Cash paid for interest in the year ended December 31, 2024, was $38,655 thousand, down from $43,949 thousand in 2023[28] - Cash and cash equivalents at the end of the period were $364,141 thousand, an increase from $249,080 thousand at the end of the previous year[28] Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled $524.7 million, significantly higher than $201.4 million in 2023[24] - General and administrative expenses for the three months ended December 31, 2024, were $45,663 thousand, an increase of 4.5% from $43,710 thousand in 2023[31] - Adjusted general and administrative expenses for the three months ended December 31, 2024, were $25,299 thousand, a decrease of 40.7% compared to $42,581 thousand in 2023[31] Shareholder Information - The weighted average common shares outstanding for the year ended December 31, 2024, was 151.8 million, compared to 150.9 million in 2023[24] - The weighted average number of common shares outstanding for the three months ended December 31, 2024, was 151,944 thousand, compared to 151,175 thousand in the same period of 2023[30] - The company reported a basic loss per common share of $1.95 for the year ended December 31, 2024, compared to earnings of $0.57 per share in 2023[24] Goodwill and Impairment - The company recorded a goodwill impairment of $236.0 million for the year ended December 31, 2024[24] - The company reported a goodwill impairment of $74,000 thousand for the three months ended December 31, 2024[30] Future Outlook - The OmniTrack™ product now accounts for over 20% of the company's order book[4] - ARRAY is on track to deliver 100% domestic content solar trackers by the first half of 2025[4] - Adjusted net income per share for 2025 is projected to be between $0.60 and $0.70[7] Cash Flow - For the three months ended December 31, 2024, net cash provided by operating activities was $57,586 thousand, a decrease of 38.6% compared to $93,981 thousand for the same period in 2023[32] - Free cash flow for the three months ended December 31, 2024, was $44,609 thousand, down 49.6% from $88,607 thousand in the prior year[32] Legal and Other Costs - The company incurred $2,240 thousand in certain legal expenses for the three months ended December 31, 2024, compared to $244 thousand in the same period of 2023[31] - Other costs for the three months ended December 31, 2024, included $2,586 thousand related to Capped-Call accounting treatment evaluation[31] - The total estimated tax impact of all Adjusted Net Income add-backs for the year ended December 31, 2024, was $(42,596) thousand, compared to $(20,863) thousand for 2023[31] Capital Expenditures - The purchase of property, plant, and equipment for the year ended December 31, 2024, was $7,305 thousand, down from $16,989 thousand in 2023[32] Litigation - The company is awaiting a decision on an appeal related to litigation dismissed with prejudice on May 19, 2023[31]