ACCO(US:ACCO)2024-05-02 20:15Financial Performance - Reported net sales of $359 million, a decline of 10.9% from $402.6 million in Q1 2023[3] - Adjusted EPS of $0.03, compared to $0.09 in Q1 2023, with a net loss of $6.3 million or $(0.07) per share[4] - Operating income decreased to $5.9 million from $10.1 million in the prior year, with adjusted operating income at $16.2 million down from $24.3 million[4] - Net loss for Q1 2024 was $6.3 million, compared to a net loss of $3.7 million in Q1 2023, representing a 70.3% increase in losses[22] - Adjusted EBITDA for Q1 2024 was $28.3 million, a decrease of 27.1% compared to $38.8 million in Q1 2023, representing 7.9% of net sales[36] - The company reported a basic loss per share of $0.07 for Q1 2024, compared to a loss of $0.04 per share in Q1 2023[22] - Total GAAP net sales decreased by 10.9% in Q1 2024, with a comparable sales change of (11.3)% when excluding material acquisitions[39] Cash Flow and Leverage - Free cash flow improved to $25.9 million from an outflow of $25.2 million in 2023, with operating cash flow at $28.2 million[5] - Consolidated net leverage ratio improved to 3.5x from 4.3x year-over-year[5] - The company plans to maintain a year-end consolidated leverage ratio of approximately 3.0x to 3.2x[10] - Cash and cash equivalents increased to $124.6 million as of March 31, 2024, up from $66.4 million at the beginning of the period[23] - Total current liabilities decreased to $473.3 million in Q1 2024 from $542.0 million in Q4 2023, a reduction of 12.7%[22] - Total assets decreased to $2,543.6 million as of March 31, 2024, down from $2,644.8 million at the end of 2023[21] - Long-term debt increased slightly to $897.5 million in Q1 2024 from $882.2 million in Q4 2023[21] Cost Management and Savings - The company is on track to achieve over $20 million in cost savings from its multi-year cost reduction program[1] - Investment in new product development and innovation continues despite the challenging demand environment[2] Future Projections - Full year 2024 sales expected to decline by 5.0% to 7.0%, with adjusted EPS projected between $1.02 and $1.07[10] - Second quarter sales anticipated to decrease by 7.0% to 9.0%, with adjusted EPS expected between $0.30 and $0.33[10] Profitability Metrics - Gross profit for Q1 2024 was $110.4 million, down 7.5% from $119.3 million in Q1 2023, resulting in a gross profit margin of 30.8%[22] - Operating income decreased by 41.6% to $5.9 million in Q1 2024 from $10.1 million in Q1 2023, reflecting a decline in operating income margin to 1.6%[22] - Adjusted net income per diluted share for Q1 2024 was $0.03, compared to $0.09 in Q1 2023, indicating a decline in profitability[33] Restructuring and Charges - The company reported a restructuring charge of $0.3 million in Q1 2024, compared to a restructuring credit of $3.3 million in Q1 2023[36] - Amortization of intangibles was $10.6 million in Q1 2024, slightly down from $10.9 million in Q1 2023[36] Taxation - The effective tax rate for Q1 2024 was adjusted to 29.0%, reflecting the company's estimated annual non-GAAP tax rate[33]