Perimeter Solutions SOLBERG SPARTAN™ Perimeter Solutions announced SOLBERG SPARTAN™ 1% Fluorine-Free Class A/B Foam Concentrate at FDIC International today. This foam technology was designed to give firefighters a tactical advantage to achieve total fire suppression on structure, wildland, vehicle, gasoline, and dumpster fires. Perimeter Solutions SOLBERG SPARTAN™ Perimeter Solutions' SOLBERG SPARTAN™ is compatible with conventional firefighting equipment. With similar viscosity to Class A foam, it i ...

Company Overview - Perimeter Solutions, SA (PRM) shares increased by 10% to close at $10.02, following a significant trading volume compared to typical sessions [1] - The stock had previously experienced a 10.5% decline over the past four weeks [1] - UBS analysts upgraded PRM from "Neutral" to "Buy" with a price target of $14 [1] Earnings Expectations - PRM is projected to report a quarterly loss of $0.09 per share, reflecting a year-over-year improvement of 52.6% [2] - Expected revenues for the upcoming quarter are $63.38 million, which is a 7.4% increase from the same quarter last year [2] - The consensus EPS estimate for PRM has remained unchanged over the last 30 days, indicating a lack of earnings estimate revisions [3] Industry Context - Perimeter Solutions, SA operates within the Zacks Chemical - Specialty industry [3] - PPG Industries, another company in the same industry, saw a slight increase of 0.2% to $111.93, but has returned -2.3% over the past month [3] - PPG's consensus EPS estimate has decreased by 0.2% to $1.62, representing a 12.9% decline from the previous year [4]

Core Insights - Perimeter Solutions is launching the Industrial Foam School, a two-day training program aimed at industrial firefighters, hazmat teams, and municipal firefighters to enhance their skills in using advanced fluorine-free firefighting foams [1][2]. Training Program Details - The first session of the Industrial Foam School will be held on May 28-29, 2025, at the Delaware State Fire Academy in Dover, DE, with additional sessions planned for October 2025 in Ontario, Canada, and Jacksonville, Florida [1][2][3]. - The training will cover application techniques and incident preplanning using fluorine-free firefighting foam, with hands-on training using real foam where permitted [2][3]. Attendance and Costs - The cost for attending the Industrial Foam School is set at $599 per participant, with a maximum capacity of 30 attendees per session [3]. - The company plans to add more sessions across the U.S. and Canada in 2025 and 2026 [3]. Company Overview - Perimeter Solutions, headquartered in St. Louis, Missouri, is a global provider of firefighting products and lubricant additives, known for brands like PHOS-CHEK® and FIRE-TROL® [5]. - The company emphasizes the importance of its products in critical life-saving situations, branding them as "Trusted Solutions that Save" [5].

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA approximately doubled from $141 million in 2021 to $280 million in 2024, representing a three-year adjusted EBITDA CAGR of 26% [13] - Consolidated adjusted EBITDA margin expanded approximately 1,100 basis points over the three-year period, or approximately 360 basis points per year [14] - Consolidated sales increased 45% to $86.2 million in Q4 and expanded 74% to $561 million for the full year [32] Business Line Data and Key Metrics Changes - Fire Safety segment Q4 revenue increased 72% to $60.7 million, with full year revenue growing 93% to $436.3 million [29] - Fire Safety Q4 adjusted EBITDA rose 289% to $27.2 million, contributing to a full year figure of $240.1 million, an increase of 215% [30] - Specialty Products segment Q4 sales increased 6% to $25.5 million, driving full year sales growth of 29% to $124.7 million [31] Market Data and Key Metrics Changes - 2024 U.S. acres burned (excluding Alaska) were 8.2 million, with a significant portion attributed to the Smokehouse Creek fire, indicating a deviation from the normalized fire season [35] - The normalized U.S. fire season is estimated to fall in the range of 6 million to 7 million acres burned, based on historical averages [34] Company Strategy and Development Direction - The company aims to provide quality products and exceptional service while delivering private equity-like returns with public market liquidity [8] - Focus on capital allocation and management of capital structure to maximize equity value creation [9] - The acquisition of Intelligent Manufacturing Solutions (IMS) for approximately $33 million aligns with the company's strategy to drive post-acquisition value through operational improvements [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the sustainability of the 2024 results, anticipating continued normalized demand in the future [37] - The recent wildfires in Southern California are expected to catalyze increased focus and resources towards wildfire preparedness and response, benefiting the company's operations [70] Other Important Information - The company generated free cash flow of $172.9 million in 2024, validating its operational strategy and creating financing capacity for M&A [46] - The company has a strong liquidity position with cash and cash equivalents of approximately $198.5 million and an undrawn $100 million revolving credit facility [48] Q&A Session Summary Question: Insights on the PCB market and its fit in Perimeter's strategy - Management highlighted the strategic fit of PCBs with their operational value driver strategy, emphasizing the potential for significant value creation through acquisitions and licensing [52][54] Question: Drivers of increased CapEx spending - The increase in CapEx is primarily driven by investments in the fire safety platform, aimed at fulfilling customer missions and improving products and services [57] Question: Implications of California wildfires on business - While the immediate financial impact of the LA fires was modest, management anticipates long-term benefits from increased focus on wildfire response and preparedness [67][70] Question: Impact of new administration policies on supply chain and business - Management believes there will be negligible impact from tariffs or new governmental policies on the supply chain, maintaining a resilient system with multiple redundancies [76] Question: Target leverage ratio and M&A strategy - The company aims to increase its leverage ratio to around 3.5 times, with M&A being a key driver for achieving this target [90]

Financial Performance - Net sales increased by $238.9 million for the year ended December 31, 2024, reaching $560.97 million, a 74% increase compared to 2023[235]. - Gross profit for the year ended December 31, 2024, was $317.09 million, reflecting a 147% increase from $128.30 million in 2023[235]. - The company reported a net loss of $5.91 million for the year ended December 31, 2024, compared to a net income of $67.49 million in 2023[235]. - Operating loss for 2024 was $(3.767) million, a decline from an operating income of $94.450 million in 2023[337]. - Total operating expenses surged to $320.85 million, an increase of 848% compared to $33.85 million in the previous year[235]. Segment Performance - Fire Safety segment net sales rose by $210.7 million, driven by a $198.4 million increase in fire retardant sales and a $12.3 million increase in fire suppressant sales[235]. - Net sales for the Fire Safety segment increased to $436.3 million in 2024 from $225.6 million in 2023, while Segment Adjusted EBITDA rose by $163.9 million to $240.1 million[244]. - The Specialty Products segment saw a $28.2 million increase in net sales, with $22.1 million from the Americas and $6.1 million from Europe[235]. - Specialty Products segment net sales increased to $124.7 million in 2024 from $96.6 million in 2023, with Segment Adjusted EBITDA rising by $19.6 million to $40.2 million[245]. Cash Flow and Liquidity - Cash provided by operating activities for the year ended December 31, 2024, was $188.4 million, a significant increase from $0.2 million in 2023[268]. - Cash and cash equivalents increased significantly to $198,456,000 in 2024 from $47,276,000 in 2023, marking a growth of over 319%[334]. - The company had $198.5 million in cash and cash equivalents as of December 31, 2024, with no significant default risk identified[403]. - Cash used in investing activities was $42.9 million for 2024, which included a business purchase for $32.8 million[270]. Acquisitions and Investments - The company completed an acquisition of IMS DE Holdings, LLC for a total purchase price of $32.8 million, recording intangible assets valued at $6.0 million for customer relationships and $7.1 million for technology[314]. - The Company plans to continue investing in the expansion of its fire safety business through acquisitions to grow its global customer base[231]. Debt and Financing - The Revolving Credit Facility provides for a senior secured revolving credit facility of up to $100.0 million, maturing on November 9, 2026, with no outstanding borrowings as of December 31, 2024[251][253]. - The Company assumed $675.0 million principal amount of 5.00% senior secured notes due October 30, 2029, with interest payable semi-annually[254]. - For the year ended December 31, 2024, the company reported net cash provided by financing activities of $8,349,000, a significant improvement compared to a net cash used of $(64,453,000) in 2023[343]. Tax and Foreign Currency - Income tax benefit increased by $35.1 million for the year ended December 31, 2024, primarily due to the Redomiciliation Transaction[243]. - The Company reported a foreign currency loss of $2.4 million for the year ended December 31, 2024, compared to a foreign currency gain of $1.7 million in 2023[242]. - The company is exposed to foreign currency exchange risks, particularly with the Euro, Canadian dollar, Norwegian krone, and Australian dollar[295]. Shareholder Equity and Stock - The Company repurchased 2,988,291 shares in 2024, with an approximate dollar value of shares that may yet be repurchased under the Share Repurchase Plan at $97.2 million as of December 31, 2024[259]. - The Company issued 10 million 6.50% Redeemable Preferred Shares valued at $100.0 million, with a preferred annual cumulative dividend of 6.50%[297]. - The EverArc Founder Entity is entitled to receive a Fixed Annual Advisory Amount of 2,357,061 shares of Common Stock, representing 1.5% of the total shares outstanding, until December 31, 2027[289]. Assets and Liabilities - The company reported total assets of $2,416,394,000 as of December 31, 2024, an increase from $2,315,422,000 in 2023, representing a growth of approximately 4.4%[334]. - Total liabilities increased to $1,259,124,000 in 2024 from $1,163,127,000 in 2023, reflecting a rise of approximately 8.2%[334]. - The company's accumulated deficit stood at $586,723,000 as of December 31, 2024, compared to $580,818,000 in 2023, showing a slight increase in losses[334]. Goodwill and Intangible Assets - There was no impairment of goodwill during the years ended December 31, 2024, 2023, or 2022, reflecting stable asset valuations[366]. - Goodwill balance as of December 31, 2024, is $1,034,543, a decrease from $1,036,279 as of December 31, 2023, primarily due to foreign currency translation adjustments[415]. - Total definite lived intangible assets as of December 31, 2024, amount to $898,417, compared to $945,007 as of December 31, 2023, reflecting a decrease in net book value[416]. Regulatory and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the audit opinion[318]. - The Company accounts for income taxes under the asset-and-liability method, recognizing deferred tax assets and liabilities for future tax consequences[379]. - The Company adopted ASU No. 2023-07, requiring enhanced disclosures about significant segment expenses, effective for fiscal years beginning after December 15, 2023[412].

Core Viewpoint - Perimeter Solutions, SA reported quarterly earnings of $0.13 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.10 per share, marking an earnings surprise of 230% [1] - The company also posted revenues of $86.23 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 32.97% [2] Financial Performance - The earnings report shows a year-over-year improvement from a loss of $0.09 per share [1] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] Stock Performance - Perimeter Solutions, SA shares have declined approximately 8% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $63.38 million, while the estimate for the current fiscal year is $0.71 on revenues of $530 million [7] Industry Outlook - The Chemical - Specialty industry, to which Perimeter Solutions belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of stocks in this industry can be significantly influenced by the overall industry outlook [8]

Financial Performance - Full year net sales increased 74% to $561.0 million, compared to $322.1 million in the prior year[6] - Fire Safety net sales rose 93% to $436.3 million, while Specialty Products net sales increased 29% to $124.7 million[6] - Full year adjusted EBITDA increased 190% to $280.3 million, compared to $96.8 million in the prior year[6] - Fourth quarter net sales increased 45% to $86.2 million, compared to $59.5 million in the prior-year quarter[6] - Fourth quarter net income was $144.2 million, or $0.90 per diluted share, compared to a net loss of $13.2 million, or $0.09 loss per diluted share in the prior year quarter[6] - Full year non-GAAP adjusted earnings per share was $1.11[6] - Specialty Products adjusted EBITDA increased 95% to $40.2 million for the full year, compared to $20.6 million in the prior year[6] Acquisitions and Investments - The company acquired IMS for $32.8 million, expanding into printed circuit board products[5] Assets and Liabilities - Total assets increased to $2,416,394 thousand as of December 31, 2024, up from $2,315,422 thousand in 2023, representing a growth of 4.4%[16] - Total liabilities rose to $1,259,124 thousand in 2024, up from $1,163,127 thousand in 2023, an increase of 8.2%[16] - The total shareholders' equity increased to $1,157,270 thousand in 2024 from $1,152,295 thousand in 2023, a slight increase of 0.4%[16] Cash Flow and Shareholder Activity - Cash and cash equivalents rose significantly to $198,456 thousand in 2024, compared to $47,276 thousand in 2023, marking an increase of 319.5%[18] - The company experienced a cash flow from operating activities of $188,388 thousand in 2024, a decrease from $193 thousand in 2023[18] - The company repurchased ordinary shares worth $14,420 thousand in 2024, compared to $64,066 thousand in 2023, indicating a decrease in share buyback activity[18] Net Income and Loss - The company reported a full year net loss of $5.9 million, or $0.04 loss per diluted share, compared to net income of $67.5 million, or $0.41 earnings per diluted share in the prior year[6] - The company reported a net loss of $5,905 thousand for the year ended December 31, 2024, a decline from a net income of $67,486 thousand in 2023[18] - For the year ended December 31, 2024, the GAAP net loss was $(5,905), with an adjusted net income of $163,390, leading to an adjusted EPS of $1.11[26] Advisory Fees and Expenses - Founders advisory fees related party increased to $198,308 thousand in 2024 from a negative $108,481 thousand in 2023, reflecting a significant change in expense recognition[22] - The company incurred $54,789 in founders advisory fees for the three months ended December 31, 2024, and $198,308 for the year ended December 31, 2024[26] - The company recognized $4.4 million in non-recurring expenses related to the Redomiciliation Transaction for the three months ended December 31, 2024[26] Inventory and Other Financial Metrics - Inventories decreased to $116,347 thousand in 2024 from $145,652 thousand in 2023, a reduction of 20.2%[16] - The shares used in computing adjusted EPS (diluted) for the year ended December 31, 2024, were 147,209,802[26] - The total tax impact of non-GAAP adjustments for the year ended December 31, 2024, was $(106,715)[26] - The company reported a foreign currency loss of $2,280 for the three months ended December 31, 2024[26] Quarterly Performance - For the three months ended December 31, 2024, the GAAP net income was $144,170, while the adjusted net income was $19,048, resulting in an adjusted EPS of $0.13[26] - For the three months ended September 30, 2024, the adjusted net income was $110,619, with an adjusted EPS of $0.75[27] - The GAAP net loss for the three months ended March 31, 2024, was $(82,558), with an adjusted net loss of $(2,070)[32] - Fire Safety adjusted EBITDA increased 289% to $27.2 million in the fourth quarter, compared to $7.0 million in the prior year quarter[6]

Core Insights - Perimeter Solutions reported a net loss of $5.9 million for the full year 2024, with an adjusted earnings per diluted share of $1.11, indicating a significant operational transformation despite the loss [1][4][24] - The company achieved a 74% increase in full-year net sales, reaching $561 million, driven primarily by a 93% increase in Fire Safety net sales [4][9] - Adjusted EBITDA for the full year increased by 190% to $280.3 million, showcasing strong operational performance [4][19] Financial Performance - Fourth quarter net sales rose by 45% to $86.2 million compared to $59.5 million in the prior year quarter [3][9] - Full-year net sales for Fire Safety increased by 93% to $436.3 million, while Specialty Products net sales grew by 29% to $124.7 million [4][10] - The company reported a fourth quarter net income of $144.2 million, or $0.90 per diluted share, a significant turnaround from a net loss of $13.2 million in the prior year quarter [9][14] Operational Developments - Perimeter Solutions acquired IMS DE Holdings, LLC for $32.8 million, expanding its product offerings into printed circuit boards [5] - The company’s operational value drivers have transformed, with adjusted EBITDA approximately doubling over three years with minimal end-market contribution [1][4] Segment Performance - Fire Safety Adjusted EBITDA increased by 215% to $240.1 million for the full year, while Specialty Products Adjusted EBITDA rose by 95% to $40.2 million [4][23] - In the fourth quarter, Fire Safety net sales increased by 72% to $60.7 million, while Specialty Products net sales saw a 6% increase to $25.5 million [9][10] Cash Flow and Capital Allocation - The company ended the year with cash and cash equivalents of $198.5 million, a significant increase from $47.3 million at the end of the previous year [15][18] - Net cash provided by operating activities for the year was $188.4 million, reflecting strong operational cash flow generation [17]

Core Viewpoint - Perimeter Solutions will release its financial results for the fourth quarter of 2024 on February 20, 2025, before the market opens [1] Group 1: Earnings Call Details - The company will host a conference call to discuss the financial results at 8:30 AM ET on the same day [2] - The call will be led by CEO Haitham Khouri, CFO Kyle Sable, and Head of Investor Relations Seth Barker [2] - A live webcast of the call will be available on Perimeter's investor relations website [2] Group 2: Company Overview - Perimeter Solutions is headquartered in St. Louis, Missouri, and is a leading global provider in the Fire Safety and Specialty Products industries [3] - The company develops products that address critical life safety issues, emphasizing the importance of reliability in their solutions [3] - Major brands produced by Perimeter include PHOS-CHEK®, FIRE-TROL®, AUXQUIMIA®, SOLBERG®, and BIOGEMA® [3]

Company Overview - Perimeter Solutions, SA (PRM) shares increased by 5.4% to close at $12.63, following a period of 7.1% loss over the past four weeks, indicating a significant recovery in trading volume [1] - The company's Specialty Products segment is experiencing strong growth due to recovery from de-stocking activities and increased purchases from high-quality specialty chemicals customers [2] Financial Performance - PRM is expected to report a quarterly loss of $0.10 per share, reflecting an 11.1% year-over-year decline, while revenues are projected to be $64.85 million, representing a 9.1% increase from the previous year [3] - The consensus EPS estimate for PRM has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4] Industry Context - Perimeter Solutions is part of the Zacks Chemical - Specialty industry, which is currently seeing favorable trends that are expected to drive demand for fire retardant products [2] - In comparison, Axalta Coating Systems (AXTA), another company in the same industry, has seen a 1.6% decline in its stock price and a 12.2% loss over the past month, with a consensus EPS estimate change of -4.3% [4][5]