ACCO(US:ACCO)2025-05-01 20:18Financial Performance - First quarter net sales were $317.4 million, down 11.6% from $358.9 million in 2024, with adverse foreign exchange reducing sales by $11.7 million, or 3.3%[5] - Adjusted loss per share was $0.02, better than the outlook, while net loss was $13.2 million, or $(0.14) per share, compared to a net loss of $6.3 million, or $(0.07) per share in the prior year[8] - First quarter operating loss was $6.7 million, compared to operating income of $5.9 million in 2024, with adjusted operating income at $6.9 million compared to $16.2 million in the prior year[7] - The company reported a net loss of $13.2 million for Q1 2025, which is a 109.5% increase in loss compared to a net loss of $6.3 million in Q1 2024[30] - Basic and diluted loss per share for Q1 2025 was $0.14, doubling from a loss of $0.07 per share in Q1 2024[30] - Adjusted EBITDA for Q1 2025 decreased to $20.9 million, down 26.1% from $28.3 million in Q1 2024, representing 6.6% of net sales[51] Cash Flow and Debt - Operating cash flow for the quarter was $5.5 million, down from $28.2 million in the prior year, and free cash flow was $3.3 million compared to $25.9 million in the prior year[9] - Total debt as of March 31, 2025, was $931.7 million, a decrease from $954.8 million in Q1 2024, resulting in a net debt of $801.9 million[54] - Cash and cash equivalents at the end of Q1 2025 were $134.6 million, up from $124.6 million at the end of Q1 2024[32] - Proceeds from long-term borrowings increased to $106.3 million in Q1 2025, compared to $61.4 million in Q1 2024[32] Sales and Market Segments - ACCO Brands Americas segment net sales decreased 11.8% to $173.9 million, while the International segment net sales decreased 11.3% to $143.5 million[11][14] - Net sales for ACCO Brands Americas decreased by 11.8% year-over-year, resulting in a $23.3 million decline[60] - Net sales for ACCO Brands International also fell by 11.3%, leading to an $18.2 million decrease[60] - Net sales for the three months ended March 31, 2025, were $317.4 million, a decrease of 11.6% compared to $358.9 million in 2024[30] Expenses and Margins - First quarter gross margins expanded by 60 basis points, while SG&A expenses decreased compared to the prior year[5] - Gross profit margin improved to 31.4% in Q1 2025 from 30.8% in Q1 2024, despite a decline in gross profit to $99.6 million[30] - The adjusted operating income margin for the total company was 2.2% in Q1 2025, down from 4.5% in Q1 2024[58] - Stock-based compensation increased by 52.9% to $7.8 million in Q1 2025 from $5.1 million in Q1 2024[51] - Interest expense decreased by 21.9% to $8.9 million in Q1 2025, down from $11.4 million in Q1 2024[51] Future Outlook - The company expects reported sales in the second quarter to decline in a range of 8.0% to 12.0%, with adjusted EPS projected between $0.28 and $0.32[17] - The company has not provided a full-year outlook for 2025 due to increased market uncertainties driven by global trade dynamics[16] Other Financial Activities - ACCO Brands repurchased 3.2 million shares of common stock for $15 million during the quarter[9] - The company incurred $10.1 million in costs related to acquisitions in Q1 2025, with net cash used by investing activities totaling $12.3 million[32] - The income tax rate for Q1 2025 was 20.0%, compared to a benefit of (18.9)% in Q1 2024[30] - The company reported a restructuring expense of $2.3 million in Q1 2025, compared to a benefit of $0.3 million in Q1 2024[51]