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Yahoo
13-05-2025
- Business
- Yahoo
Q1 2025 Solo Brands Inc Earnings Call
Mark Anderson; Senior Director of Treasury & Investor Relations; Solo Brands Inc John Larson; Interim President and Chief Executive Officer; Solo Brands Inc Laura Coffey; Chief Financial Officer; Solo Brands Inc Operator Good morning, and welcome to the Solo Brands's fourth-quarter in fiscal year 2024 financial results conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mark Anderson, Senior Director, Treasury, and Investor Relations. Please go ahead. Mark Anderson Thank you, and good morning, everyone. We appreciate you joining us for the Solo Brand's conference call to review fourth-quarter and full year results for 2024. Joining me on the call today are the company's Interim President and Chief Executive Officer, John Larson; and Chief Financial Officer, Laura call is being webcast and can be accessed through the Investors portion of our website at investors@ Today's conference call will be recorded. Please be advised that any time sensitive information may no longer be accurate as of any replay or transcript reading date.I would also like to remind you that the statements in today's discussion that are not historical facts, including statements about expectations, future events, financial performance, turnaround efforts, strategic transformation goals, and future growth, are forward-looking statements and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of statements by their nature are uncertain and outside of the company's control. Actual results may differ materially from those expressed or implied. Please refer to today's earnings press release for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Brands assumes no obligation to publicly update or revise any forward-looking statements. Management will refer to non-GAAP measures and reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Finally, the earnings release has been furnished to the SEC on Form I'd like to turn the call over to John Larson. John Larson Good morning, and thank you all for joining us to review Solo Brand's strategic plan and financial results. During today's call, we intend to level set everyone on recent news, review our 2024 financial results, and share our turnaround work for the fourth quarter, the board and management team engaged in developing an aggressive turnaround plan for 2025. As part of our transformation plan, we hired external financial advisors to help us go through every line item of the business. They have been an integral part of helping to develop and quantify 30-plus value accretive most of you know, Chris Metz notified the Board in mid-February of his decision to resign. Given that the board and management team were closely involved in the 2025 turnaround plan, we felt it was critical not to lose momentum. I was immediately appointed as Interim CEO and in the office the following Monday stepping into the role, I along with the leadership team and board, have taken actions to accelerate and amplify the company's transformation plan. I plan to continue serving on the board and remain interim leader on site until the right person to lead solo brands is believed that we lost no time or momentum with the management change. We are now aggressively working through 30+ value creative initiatives to return solo brands to profitable and sustainable growth. Notwithstanding challenging results, we believe Solo Brands has a solid foundation for success, including great enthusiast brands, a pipeline of new products, and highly loyal customers. I am encouraged by what I see board and management team are fully aligned and taking thoughtful steps to improve the near-term and long-term business trajectory. We do not plan to take questions after our prepared remarks. This decision was not taken lightly, but I hope that Laura and I answer most, if not all, of your immediate questions during these prepared Laura walks through the financial results, I will come back to discuss in more detail the key strategic initiatives. Laura? Laura Coffey Thank you, John, and good morning, everyone. We finished 2024 with total net sales of $455 million down 8% from the prior year. We strengthened our adjusted gross profit margin to 61.7%, and we ended the year with an adjusted EBITDA of $32.6 million or 7.2% of net recognize the challenges ahead, and we are committed to transforming our business by stabilizing operations, optimizing efficiencies, and building scalable processes and platforms to drive sustainable growth. Turning to our fourth quarter results, net sales were $143.5 million, down 13.2% from a year ago. This was driven by declines in retail and direct-to-consumer channels within the Solo Stove segment, partially offset by increased net sales in the Chubbies are carefully evaluating the effectiveness and return of our marketing spend. Although the Snoop ads created good brand awareness last year, we are working to better position spend to be more efficient and tied to the outcomes that align closer to our goals. Our gross profit for the quarter was $87.8 million compared to $96.4 million in the prior reported gross profit margin grew to 61.1%, up 280 basis points compared to 58.3% in the year ago quarter. Selling general and administrative expenses for $81.8 million in the quarter, down from $84.3 million in the prior improvement in SG&A expenses were mainly due to the early termination of a legacy advertising agreement. The fourth quarter's net loss was $58.2 million and adjusted net income, excluding after-tax restructuring charges and other non-recurring or non-cash charges resulted in positive earnings of $2.3 million and adjusted EPS of $0.03 per EBITDA for the quarter was $6.3 million with a margin of 4.4%. Turning to the full year results, 2024 net sales were $454.6 million, down 8.1% from the prior year. Our reported gross profit margin for the year was 57.3%, and excluding inventory charges related to restructuring and consolidation and other non-cash items, our adjusted gross profit margin was 61.7%, up 30 basis points from the prior company reported a GAAP net loss of $180.2 million, an improvement versus a net loss of $195.3 million in 2023. Adjusted net income was $11.4 million or EPS of $0.12, and our adjusted EBITDA was $32.6 million or 7.2% of net sales for the full year in refer to our earnings release for reconciliation tables to the most comparable GAAP measures. In early 2025, we continued implementing corporate restructuring and cost optimization initiatives to re-baseline expenses and right size of the business based on expected sales this have examined the company's marketing effectiveness and have a multi-step plan to improve efficiencies and address spend, which John will discuss in a few moments. We have begun creating better performance management metrics and are evaluating talent at every level. I want to give you a few examples of actions that we have taken thus far after careful consolidated two distribution centers and are looking to sublease those facilities. We believe this is necessary to maintain operating leverage across our fulfillment network. We are continuing to evaluate and make strategic decisions to lower costs and respond to business successfully renegotiated freight contracts for the organization in mid-2024 and are currently exploring other opportunities to reduce our spend in this area. After the holiday period, we decided to take an action on a reduction in force primarily to streamline our Solo Stove segment marketing and operational also rationalize certain operations, reduced overhead costs, and re-baseline cost to better align with the sales going forward. We have decided to pause, our financial guidance based on the challenging and uneven consumer environment anticipated this year, and uncertainty with we are targeting improving profitability compared to a year ago, especially as we expect our major initiatives to ramp up in the second half of the year. Regarding tariffs, we are actively addressing the impact on our some instances, we have proactively shifted production to alternative countries to avoid China-specific impacts while exploring mitigation tactics to even further reduce tariff headwinds. Although there continues to be uncertainty regarding the operation and duration of tariffs, we are currently estimating the impact to be significant to our operations before planned mitigation to the company's balance sheet and cash flow position, we ended the quarter with $12 million in cash and cash equivalents. We continued to manage working capital closely, and we ended the quarter with inventories of $108.6 million, down from a year ago and up $1.8 million from September company's cash provided by operating activities was $10.5 million for the year, and the full year capital expenditures were $14.5 million. We are working to maintain a disciplined and conservative capital allocation strategy, which includes careful cash management, and we have no M&A plan for in product innovation is essential, but we will be judicious with our cash. As of September 31, 2024, revolver borrowings were $69 million. The term loan outstanding was $83 million and our borrowing capacity on the revolver was $350 of December 31, we were in compliance with all financial and operational covenants. Subsequent to the end of the year, we drew down $277.3 million on the revolver, which matures next year on May 12, 2026. More information will be available on our 10-K filed this morning, but due to uncertainty in the business and our expected level of indebtedness, without the application of successful mitigating strategies, we expect to experience difficulty remaining in compliance with the financial covenants in our credit 10-K also includes disclosures about the company's ability to continue as a going concern. We are evaluating strategies to refinance our existing debt, and our plans are focused on improving our results in liquidity as we are discussing that, I would like to turn it back to John. John Larson Thank you, Laura. As I mentioned in the opening, I am laser focused on accelerating and amplifying the restructuring plan that was already underway and ensuring the company maintains the momentum of these critical initiatives. My focus is 100% on optimizing the bottom line and preserving cash. We have implemented surge teams to focus on the key areas of most critical initiatives for our strategic turnaround plan include Number one, resetting the organization's cost structure in line with our sales and profit profile. We are working closely with our financial advisors to walk through every line item on our income statement and balance sheet, and have developed an extensive list of initiatives to drive bottom line results starting this focusing on profitability by channel, by product for each division to drive the business to where we believe, we can provide stronger margins. Three, resetting our marketing approach, our single biggest line item of you may know, Liz Vanzura recently joined Solo Brand's Board and has now agreed to serve as the company's Interim CMO. This is a former colleague and highly awarded marketing rock star. She has a successful track record as CMO and Head of Brand strategy for companies like Cadillac and Hummer, and has worked at agencies for many also earned the Ad Age's Marketer of the Year award and was inducted into the AAF Advertising Hall of Achievement. We are excited to leverage your strategic ability to lead our marketing efforts, identify the appropriate partners and leading edge AI tools, with the potential to increase efficiency dramatically and reignite our four, executing a complete review of our product lineup, simplifying our current product offerings, and strategically repricing our portfolio of offerings. We believe there are significant pricing opportunities to provide clarity for our consumers and to achieve stronger are fortunate to have a cohesive collection of premium brands with deep customer following, and we expect that being less promotional will help avoid channel conflicts between our directed consumer and retail five, accelerating and amplifying new product launches to drive further momentum in the latter half of the year and identifying new product opportunities. Our team of entrepreneurs already has an innovative mindset, and we know that Solo Stove and Chubbies are exceptionally positioned with strong brand recognition and loyal customers to these that we consolidated ISLE paddle boards and Oru Kayak into a new water sports division to create a more profitable, scalable platform. We are actively working on a product roadmap for outdoor lifestyle spaces designed to positively impact people's lives as they enjoy leisure time outdoors. Finally, we are creating a metric focused culture and reporting system to track performance in real believe that tying key performance indicators to our actions and providing simple dashboard reporting will allow our culture to align, engage, and succeed. Also developing repeatable processes that enhance operational efficiency and consistency is plan to track our wins, collect feedback, and analyze failures and successes. Our strategic transformation plan initiatives are tracked and reviewed weekly, and we expect that our quarterly financial results will be the measure of our accomplishments. Regarding tariffs, as we are seeing in similar industries, we now have the impact of tariff Laura mentioned, we are proactively managing this dynamic situation with a broad range of mitigation plans. To summarize, the company is resetting the organization's cost structure, identifying the key performance drivers in our portfolio, revamping our marketing approach, overhauling our pricing and promotion strategies, accelerating and amplifying our new product launches, and creating a metric-based culture to track performance in real line, we have great brands and products with best in class reviews. We have the foundation. We are resetting our business approach to deliver and improve results. And as we execute our value accretive initiatives this year, we expect the performance upside will be more visible in the back half of the you for your continued interest in the company. We look forward to providing updates when we report first quarter results in May. Have a great day. Operator The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Associated Press
06-02-2025
- Business
- Associated Press
Atkore Inc. Announces Participation at Upcoming Investor Conferences
Atkore Inc. (the 'Company') (NYSE: ATKR), a leading manufacturer of electrical products for commercial, industrial, data center, telecommunications, and solar applications, today announced that it will participate in the following upcoming conferences: Citi's Global Industrial Tech and Mobility Conference, February 18, 2025, Miami Beach – Bill Waltz, President and Chief Executive Officer, and John Deitzer, Chief Financial Officer, are scheduled to participate in a fireside chat and investor meetings. A webcast link of the live fireside chat, scheduled for 2:40pm eastern, will be available on the Investor Relations site of ( A replay of the webcast will be available on the same website until Wednesday, February 18, 2026. Barclays 42 nd Annual Industrial Select Conference, February 19, 2025, Miami Beach – John Deitzer and Matt Kline, Vice President of Treasury & Investor Relations, are scheduled to participate in investor meetings. J.P. Morgan Global High Yield & Leveraged Finance Conference, February 25, 2025, Miami Beach – John Deitzer and Matt Kline are scheduled to participate in investor meetings. Loop Capital Markets 6 th Annual Investor Conference, March 11, 2025, New York City – John Pregenzer, Chief Operating Officer and President – Electrical and Matt Kline are scheduled to participate in investor meetings. 37 th Annual ROTH Conference, March 17, 2025, Dana Point – Matt Kline is scheduled to participate in investor meetings. To learn more about Atkore Inc. please visit the company's website at About Atkore Inc. Atkore is a leading manufacturer of electrical products for commercial, industrial, data center, telecommunications, and solar applications. With 5,600 employees and $3.2B in sales in fiscal year 2024, we deliver sustainable solutions to meet the growing demands of electrification and digital transformation. To learn more, please visit Atkore intends to make future announcements regarding company developments and financial performance through its website, as well as through press releases, filings with the Securities and Exchange Commission, conference calls, media broadcasts, and webcasts. Lisa Winter Vice President - Communications 708-225-2453 [email protected] Contact: Matthew Kline Vice President - Treasury & Investor Relations 708-225-2116 [email protected] INDUSTRY KEYWORD: HARDWARE MACHINE TOOLS, METALWORKING & METALLURGY OTHER CONSTRUCTION & PROPERTY TECHNOLOGY SEMICONDUCTOR CONSTRUCTION & PROPERTY STEEL ENGINEERING CHEMICALS/PLASTICS BUILDING SYSTEMS MANUFACTURING TELECOMMUNICATIONS SOURCE: Atkore Inc. Copyright Business Wire 2025. PUB: 02/06/2025 05:00 PM/DISC: 02/06/2025 05:00 PM
