Core Molding Technologies Reports Full Year and Fourth Quarter 2024 Results

Core Insights - Core Molding Technologies, Inc. reported a successful fiscal year 2024, achieving record operational cash flow of $35 million despite a 15.5$302.4 million due to lower customer demand across significant markets [5][6][8] - The company focused on improving operational efficiencies and cost reductions, resulting in a gross margin of 17.6% and a return on capital employed (ROCE) of 9.9% for the year [5][6][10] - The company plans to continue its "Invest For Growth" strategy in 2025, aiming to enhance sales and marketing efforts, diversify its business, and pursue strategic acquisitions [7][8] Fiscal Year 2024 Highlights - Net sales decreased by 15.5% from $357.7 million to$302.4 million, with product sales down 16.2% [6] - Gross margin fell to $53.3 million (17.6$64.5 million (18.0% of net sales) in the prior year [6] - Operating income decreased to $16.7 million (5.5$26.5 million (7.4% of net sales) [6] - Net income was $13.3 million ($1.51 per diluted share), down from $20.3 million ($2.31 per diluted share) a year ago [6] Fourth Quarter 2024 Highlights - Net sales for Q4 were $62.5 million, down 15.3$73.8 million in the prior year [6] - Product sales in Q4 were $60.0 million, a decrease of 17.1$39 thousand for Q4, compared to a net income of $2.2 million in the same period last year [6] Financial Position - Total liquidity at year-end was$91.8 million, with $41.8 million in cash and$25 million of undrawn capacity under credit facilities [10] - The company's debt to trailing twelve months adjusted EBITDA ratio was 0.64 times, indicating a strong financial position [10][28] - Capital expenditures for 2024 were $11.5 million, with plans for 2025 expenditures of approximately$10 to $12 million [9] Strategic Initiatives - The company secured$45 million in new revenue wins in 2024 and aims to ramp up its sales and marketing efforts in 2025 [7] - Core Molding's strategy includes growing wallet share with existing customers, diversifying into new markets, and pursuing mergers and acquisitions [7] - The sales opportunity pipeline is currently valued at $275 million, indicating potential for future growth [7]