Perimeter Solutions(US:PRM)2025-10-30 13:21Financial Performance - Net sales for the three months ended September 30, 2025, increased by $27.0 million, or 9%, to $315.4 million compared to $288.4 million in the same period in 2024[111] - Net sales increased by $75.4 million (16%) to $550.1 million for the nine months ended September 30, 2025, compared to $474.7 million in 2024[116] - The operating loss for the three months ended September 30, 2025, was $87.3 million, a 148% increase compared to a loss of $35.2 million in the same period in 2024[111] - Operating loss improved by $29.3 million (45%) to $(35.8) million, while net loss decreased by $83.9 million (56%) to $(66.1) million[116] Segment Performance - The Fire Safety segment's net sales rose by $21.5 million, driven by a $9.1 million increase in fire retardant sales and a $12.4 million increase in fire suppressant sales[111] - The Specialty Products segment's net sales increased by $5.5 million, including a $10.8 million increase from recently acquired businesses, offset by a $5.3 million decrease in the base business due to unplanned downtime[111] - Fire Safety segment net sales increased by $55.3 million, driven by higher fire retardant sales of $45.6 million and fire suppressant sales of $9.7 million[116] - Specialty Products segment net sales increased by $20.1 million, including a $27.7 million increase from recently acquired businesses[116] - Segment Adjusted EBITDA for Fire Safety increased by $52.1 million to $295.7 million, while Specialty Products segment decreased by $3.8 million to $30.8 million[124] Expenses and Costs - Cost of goods sold increased by $9.1 million, with a $1.5 million increase in the Fire Safety segment and a $7.6 million increase in the Specialty Products segment primarily due to recently acquired businesses[111] - Selling, general and administrative expenses rose by $5.0 million, mainly due to a $3.3 million increase in stock-based compensation expense[112] - Selling, general and administrative expenses rose by $9.9 million (21%) to $55.7 million, primarily due to increased stock-based compensation and personnel-related expenses[117] Income Tax and Advisory Fees - The income tax benefit was $6.5 million for the three months ended September 30, 2025, compared to an income tax expense of $45.1 million in the same period in 2024[115] - Founder advisory fees increased by $247.7 million for the three months ended September 30, 2025, attributed to an increase in the company's average share price from $13.62 to $21.89[113][114] - Founder advisory fees increased by $10.9 million (4%) to $264.0 million, reflecting a rise in the company's average share price from $12.85 to $21.89[118] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $219.5 million, compared to $194.4 million for the same period in 2024, reflecting an increase of approximately 12.5%[145] - The company used $59.8 million in investing activities during the nine months ended September 30, 2025, primarily for purchasing property and equipment ($22.6 million), intangible assets ($15.2 million), and businesses ($22.0 million)[146] - Net cash used in financing activities was $21.6 million for the nine months ended September 30, 2025, which included $40.4 million for share repurchases[148] - The company repurchased 3,774,675 shares under its Share Repurchase Plan for the nine months ended September 30, 2025, compared to 2,988,291 shares for the same period in 2024[140] Future Outlook and Risks - The company expects continued growth in the Fire Safety segment driven by increasing fire severity and a growing need for fire retardant products[106] - The company is focused on expanding its fire prevention and protection business, particularly through ground applications for long-term fire retardant[107] - Future cash flows are subject to variables such as fire season severity and inflation, which could impact revenues and liquidity[128] - The company is exposed to market risks including foreign currency exchange rates and interest rate fluctuations, but does not engage in significant hedging activities[150][151] Financial Position - As of September 30, 2025, the company has cash and cash equivalents of $340.6 million, which is expected to be sufficient for capital expenditures, working capital, and debt service for at least the next 12 months[130] - The company has a Revolving Credit Facility of up to $100.0 million, which matures on November 9, 2026, and had no outstanding borrowings as of September 30, 2025[132][134] - The company assumed $675.0 million principal amount of 5.00% senior secured notes due October 30, 2029, with interest payable semi-annually[135] - The company has a limit of $100.0 million for Common Stock repurchases as of September 30, 2025, with no shares repurchased during the three months ended September 30, 2025[139][140]