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solo stove(DTC) - 2024 Q4 - Earnings Call Transcript
DTCsolo stove(DTC)2025-03-12 19:13
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Financial Data and Key Metrics Changes - Total net sales for 2024 were 455million,down8455 million, down 8% from the prior year [13] - Adjusted gross profit margin improved to 61.7% [13] - Adjusted EBITDA for the year was 32.6 million, representing 7.2% of net sales [19] - Fourth quarter net sales were 143.5million,down13.2143.5 million, down 13.2% year-over-year [14] - Reported gross profit margin for the fourth quarter was 61.1%, up 280 basis points from the previous year [16] - GAAP net loss for 2024 was 180.2 million, an improvement from a net loss of 195.3millionin2023[19]BusinessLineDataandKeyMetricsChanges−Declinesinretailanddirect−to−consumerchannelswithintheSoloStovesegmentwerenoted,partiallyoffsetbyincreasedsalesintheChubbiessegment[14]−Selling,generalandadministrativeexpensesdecreasedto195.3 million in 2023 [19] Business Line Data and Key Metrics Changes - Declines in retail and direct-to-consumer channels within the Solo Stove segment were noted, partially offset by increased sales in the Chubbies segment [14] - Selling, general and administrative expenses decreased to 81.8 million in the fourth quarter from 84.3millionintheprioryear[16]−Adjustednetincomefortheyearwas84.3 million in the prior year [16] - Adjusted net income for the year was 11.4 million, with an adjusted EPS of 0.12[19]MarketDataandKeyMetricsChanges−Thecompanyendedthequarterwith0.12 [19] Market Data and Key Metrics Changes - The company ended the quarter with 12 million in cash and cash equivalents [25] - Inventories were reported at 108.6million,downfromayearago[25]−Cashprovidedbyoperatingactivitiesfortheyearwas108.6 million, down from a year ago [25] - Cash provided by operating activities for the year was 10.5 million [26] Company Strategy and Development Direction - The company is focused on an aggressive turnaround plan for 2025, with over 30 value-accretive initiatives [7][10] - Key initiatives include resetting the cost structure, focusing on profitability by channel and product, and revamping the marketing approach [31][32] - A new water sports division was created by consolidating ISLE paddle boards and Oru Kayaks to enhance profitability [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges ahead but expressed confidence in the company's foundation, including strong brands and loyal customers [11] - The company is pausing financial guidance due to an uneven consumer environment and uncertainty with tariffs [23] - Management expects performance improvements to be more visible in the latter half of the year as initiatives ramp up [40] Other Important Information - The company is actively addressing tariff impacts by shifting production to alternative countries [24] - A disciplined capital allocation strategy is being maintained, with no M&A planned for 2025 [26] - The company is evaluating strategies to refinance existing debt and improve liquidity [28] Q&A Session Summary - No questions were taken after the prepared remarks, as management aimed to address most inquiries during the presentation [12]