Perimeter Solutions(US:PRM)2025-05-08 15:36Financial Performance - Net sales for the three months ended March 31, 2025, increased by $13.0 million to $72.0 million, a 22% increase compared to the same period in 2024[107]. - Gross profit for the three months ended March 31, 2025, was $28.2 million, reflecting a 36% increase from $20.7 million in the same period in 2024[107]. - Operating income for the three months ended March 31, 2025, was $77.8 million, a significant improvement from an operating loss of $74.9 million in the same period in 2024[107]. - For the three months ended March 31, 2025, the company reported income before income taxes of $69.2 million, a significant increase from a loss of $86.8 million in the same period of 2024[117]. - Segment Adjusted EBITDA for the three months ended March 31, 2025, was $18.1 million, compared to $12.1 million in the same period of 2024, reflecting a year-over-year increase of 49.5%[117]. - Cash provided by operating activities was $23.7 million for the three months ended March 31, 2025, compared to $2.8 million in the same period of 2024, indicating a substantial improvement in operational cash flow[135]. Segment Performance - The Fire Safety segment's net sales rose by $12.0 million, driven by a $17.5 million increase in fire retardant sales, primarily in North America, offset by a $5.5 million decrease in fire suppressant sales[107]. - The Specialty Products segment's net sales increased by $1.0 million, including a $7.5 million increase from a recently acquired business, but faced a $6.5 million decrease in the base business due to unplanned plant downtime[107]. - Segment Adjusted EBITDA for the Fire Safety segment increased by $10.3 million, while the Specialty Products segment's Adjusted EBITDA decreased by $4.4 million due to higher costs[114][115]. Costs and Expenses - The cost of goods sold increased by $5.5 million, with the Fire Safety segment accounting for a $1.6 million increase and the Specialty Products segment for a $3.9 million increase[108]. - Income tax expense increased by $16.8 million for the three months ended March 31, 2025, primarily due to changes in earnings in certain jurisdictions[113]. Cash and Investments - The company had approximately $200 million in cash and cash equivalents as of March 31, 2025, which is expected to be sufficient to meet capital expenditures and debt service requirements for at least the next 12 months[119]. - Cash used in investing activities was $14.8 million for the three months ended March 31, 2025, which included a business acquisition for $10.0 million and property and equipment purchases of $4.8 million[136]. - The company repurchased 888,454 shares of Common Stock for $8.2 million during the three months ended March 31, 2025, compared to 2,969,357 shares for $14.3 million in the same period of 2024[130]. - As of March 31, 2025, the company had no outstanding borrowings under its $100 million Revolving Credit Facility and was in compliance with all covenants[124]. - The company has a Share Repurchase Plan with an authorized limit of $100 million, with approximately $89 million remaining for future repurchases as of March 31, 2025[129]. Market and Economic Conditions - The company is exposed to market risks including foreign currency exchange rates and interest rate fluctuations, with no current hedging activities in place[139]. - The company's realized margins are affected by the differential between sales prices and total supply costs, with potential adverse effects on margins due to market fluctuations[143]. - Inflationary pressures on raw materials, labor, and transportation are being addressed through contractual price escalation clauses and negotiations with customers and suppliers[144]. - The company is aggregating purchase requirements to achieve optimal volume benefits and identifying more cost-competitive suppliers to mitigate inflationary impacts[144]. - The company is actively monitoring inflationary pressures and has implemented strategies to mitigate their impact, including negotiating cost reductions and sourcing materials domestically[105]. Strategic Plans - The company plans to continue investing in the expansion of its fire safety business through acquisitions to grow its global customer base[103].