FGI Industries .(US:FGI)2022-08-14 07:00Financial Performance & Growth - FGI's second quarter revenues increased by 13% to $47.8 million, driven by growth in Sanitaryware and Other product categories[18] - Sanitaryware revenue increased 56% compared to the prior-year period[29] - Other revenue increased 36% to $7.9 million during 2Q22[31] - The company expects revenue between $182 million and $189 million for the full year 2022[32] Market & Strategy - FGI operates in a large addressable Kitchen & Bath market with over $150 billion of TAM (Total Addressable Market)[7] - The Repair & Remodel US market segment has experienced consistent above-GDP growth of approximately 3-5% per year[7] - The company is pursuing a "BPC" strategy focusing on Brands, Products, and Channels to drive organic growth[34] - FGI is implementing a "bolt-on" acquisition strategy, targeting companies that fit with FGI's core competencies and offer synergy opportunities[14] Challenges & Outlook - Operating income for the second quarter decreased to $1.7 million from $3.3 million due to supply chain disruptions, growth investments, and public company costs[18] - Gross margin was 17.6% during 2Q22, down from 21.6% in the prior-year period, but the company expects sequential improvement in the second half of 2022[20] - The company had $3.1 million in cash and $14.7 million in debt as of June 30, 2022[18]