Knowles(US:KN)2025-04-24 20:05Financial Performance - Q1 2025 revenues from continuing operations were $132.2 million, at the high end of the guided range[1] - Q2 2025 revenues are expected to be between $135 million and $145 million, representing a 4% year-over-year growth[7] - Non-GAAP diluted earnings per share for Q1 2025 were $0.18, consistent with Q1 2024[5] - Q2 2025 diluted earnings per share from continuing operations are expected to be between $0.11 and $0.15, with non-GAAP adjustments bringing it to $0.21 to $0.25[7] - Net loss from continuing operations for Q1 2025 was $0.4 million, compared to a profit of $10.4 million in Q4 2024[21] - Non-GAAP net earnings for Q1 2025 were $16.2 million, down from $24.3 million in Q4 2024[21] - For the three months ended March 31, 2025, the company reported a net loss of $2.0 million compared to net earnings of $2.5 million in the same period of 2024[26] Cash Flow and Liquidity - Net cash provided by operating activities exceeded the high end of the guided range, totaling $1.3 million[5] - Net cash provided by operating activities decreased to $1.3 million from $17.3 million year-over-year[26] - Adjusted free cash flow for the quarter was $18.3 million, representing 13.8% of revenues, compared to 10.0% in the same quarter of 2024[27] - The company experienced a significant decrease in cash and cash equivalents, ending the period with $101.9 million, down from $122.1 million in the previous year[26] - Non-GAAP net cash attributable to continuing operations was $22.3 million, up from $16.2 million in the same quarter of 2024[27] Expenses and Profitability - Gross profit for Q1 2025 was $53.3 million, representing 40.3% of revenues[5] - Gross profit for Q1 2025 was $53.3 million, representing a decrease of 12.5% from $60.9 million in Q4 2024[20] - Non-GAAP gross profit for Q1 2025 was $55.0 million, down from $62.9 million in Q4 2024, with a gross profit margin of 41.6%[20] - Research and development expenses for Q1 2025 totaled $9.7 million, slightly lower than $10.3 million in Q4 2024[20] - Selling and administrative expenses increased to $37.2 million in Q1 2025 from $35.2 million in Q4 2024[20] - Adjusted EBITDA for Q1 2025 was $26.7 million, representing 20.2% of revenues, compared to 24.4% in Q4 2024[20] Balance Sheet - Total current assets decreased to $337.9 million in Q1 2025 from $361.4 million in Q4 2024[24] - Total liabilities decreased to $341.0 million in Q1 2025 from $367.6 million in Q4 2024[24] - Total stockholders' equity remained relatively stable at $755.8 million in Q1 2025 compared to $756.0 million in Q4 2024[24] - The company reported a decrease in accounts payable by $19.3 million compared to an increase of $17.2 million in the same period last year[26] Strategic Initiatives - The company repurchased $5 million of shares and reduced debt by $15 million in Q1 2025[4] - The Precision Devices segment is experiencing increased order activity and backlog across most end markets[4] - The company anticipates another year of strong cash generation in 2025[4] - The company plans to provide further details on its 2025 strategy at the upcoming Investor Day on May 13[4] Other Financial Activities - The company incurred a loss on the sale of business amounting to $1.6 million during the quarter[26] - Payments under the revolving credit facility totaled $15.0 million, a decrease from $20.0 million in the same period last year[26] - The effect of exchange rate changes on cash and cash equivalents was a positive $0.2 million for the quarter[26]