FGI Industries .(US:FGI)2025-11-14 21:22Revenue Performance - Revenue for the three months ended September 30, 2025, was $35.8 million, a decrease of 0.7% compared to $36.1 million in the same period of 2024[148]. - For the nine months ended September 30, 2025, revenue increased by $3.8 million, or 4.0%, to $100.1 million from $96.2 million for the same period last year[150]. - Sanitaryware sales accounted for 64.0% of total revenue for the three months ended September 30, 2025, with a 7.0% increase to $22.9 million compared to $21.5 million in 2024[151]. - Revenue from shower systems decreased by 17.8% to $5.9 million for the three months ended September 30, 2025, compared to $7.1 million for the same period in 2024[153]. - Other revenue increased by 48.1% to $10.1 million for the nine months ended September 30, 2025, from $6.8 million for the same period in 2024[154]. - Total revenue for the three months ended September 30, 2025, was $35.8 million, a decrease of 0.7% compared to $36.1 million for the same period in 2024[155]. - Revenue for the nine months ended September 30, 2025, was $100.1 million, compared to $96.2 million in the prior-year period, indicating a growth of approximately 4%[192]. Profitability and Loss - The company reported a net loss of $1.9 million for the three months ended September 30, 2025, compared to a net loss of $698,248 in the same period of 2024, representing a 179.0% increase in loss[148]. - Gross profit was $9.5 million for the three months ended September 30, 2025, a decrease of 2.0% compared to the same period in 2024[158]. - Net loss was $1.9 million for the three months ended September 30, 2025, compared to a net loss of $0.7 million for the same period in 2024[165]. - The company reported a net loss of $4.1 million for the nine months ended September 30, 2025, compared to a net loss of $1.3 million in the prior-year period[192]. - Adjusted Operating Margins for the nine months ended September 30, 2025, were -1.7%, an improvement from -0.5% in the prior-year period[192]. - Adjusted Net Income (Loss) for the nine months ended September 30, 2025, was $(1.99) million, compared to $(0.28) million in the prior-year period[192]. Expenses and Cost Management - Research and development expenses decreased by 37.2% to $283,867 for the three months ended September 30, 2025, compared to $451,975 in 2024[148]. - The Company implemented cost control initiatives targeting to lower recurring operating expenses[176]. - The company expects to improve its liquidity and reduce its cost structure through various actions taken[169]. - Net cash used in operating activities was $1.7 million for the nine months ended September 30, 2025, an improvement from $8.0 million in the prior-year period, primarily due to a $3.3 million increase in accounts payable[181]. - Net cash used in investing activities totaled $0.9 million for the nine months ended September 30, 2025, compared to $2.0 million in the prior-year period, reflecting reduced spending on property, equipment, and intangible assets[182]. - Capital expenditures amounted to $0.9 million for the nine months ended September 30, 2025, down from $2.0 million in the prior-year period, with no significant capital expenditures expected in the immediate future[184]. Liquidity and Financial Position - Total liquidity as of September 30, 2025, was $14.2 million, providing sufficient financial flexibility to support organic growth strategies[144]. - The Company had approximately $1.9 million in cash and cash equivalents as of September 30, 2025, with $14.1 million outstanding under its credit facilities[166]. - FGI Industries was not in compliance with certain financial covenants related to its debt coverage ratio as of September 30, 2025[167]. - Borrowings under the CTBC Credit Line amounted to $2.6 million as of September 30, 2025, up from $2.3 million as of December 31, 2024[178]. - The company had cash of $1.9 million at the end of the period, down from $3.0 million at the end of the prior-year period[180]. New Products and Innovations - The company entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, marketed as FLUSH GUARD Overflow Technology[144]. - New product lines, including anti-overflow toilets and custom kitchen cabinetry, have begun generating increased revenue[176].