FGI Industries .(FGI) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $36.1 million, representing a year-over-year increase of 20.6$9.3 million, an 18.9% increase compared to the prior year, with a gross margin of 25.8%, down 40 basis points year-over-year[1][6] - Operating loss was ($0.1) million, compared to an operating income of$0.5 million in Q3 2023, with adjusted operating income at $0.1 million[7][8] - Net loss attributable to shareholders was ($0.6) million, or ($0.06) per diluted share, compared to net income of$0.4 million, or $0.04 per diluted share, in the same period last year[8] - Revenue for Q3 2024 reached$36,099,179, a 20.5% increase from $29,932,612 in Q3 2023[21] - Net loss attributable to FGI Industries Ltd. shareholders for Q3 2024 was$(550,137), compared to a profit of $409,535 in Q3 2023[21] - For the nine months ended September 30, 2024, FGI Industries reported a net loss of$1,259,522 compared to a net income of $128,598 for the same period in 2023[22] - Adjusted net loss income for the nine months ended September 30, 2024, was$(280,227), compared to an adjusted net income of $836,562 for the same period in 2023[25] Revenue Breakdown - Sanitaryware revenue was$21.5 million, up from $20.7 million in the prior-year period, while Bath Furniture revenue increased to$4.2 million from $2.5 million[3][4] - Shower Systems revenue grew to$7.1 million, up from $4.9 million last year, driven by steady demand and new customer programs[5] - Revenue for the nine months ended September 30, 2024, was$96,223,647, compared to $86,284,791 for the same period in 2023, reflecting a growth of approximately 11$127-131 million, up from the previous estimate of $115-128 million[10] - Adjusted net income guidance for fiscal 2024 was revised to a range of ($1.0) to $0.0 million, down from the prior estimate of$1.2 to $2.0 million[10] - The company continues to invest in its brands and future growth initiatives, particularly in the kitchen cabinet business and distribution for the Canadian market[2][8] Liquidity and Assets - Total liquidity at the end of Q3 2024 was$16.3 million, consisting of $3.0 million in cash and cash equivalents and$13.3 million available under credit facilities[9] - Total current assets increased to $52,399,579 as of September 30, 2024, compared to$46,114,670 as of December 31, 2023, representing a 13.4% growth[20] - Total assets increased to $74,664,926 as of September 30, 2024, compared to$65,744,930 as of December 31, 2023, a growth of 13.8%[20] - Cash decreased to $3,044,662 as of September 30, 2024, down from$7,777,241 as of December 31, 2023, a decline of 60.9%[20] Expenses - Operating expenses for Q3 2024 totaled $9,374,048, a 27.6$7,347,597 in Q3 2023[21] - Research and development expenses for Q3 2024 were $451,975, slightly up from$423,697 in Q3 2023[21] - The company experienced a significant increase in depreciation, totaling $324,683 for the nine months ended September 30, 2024, up from$135,256 in the prior year[22] - The company reported a net cash used in investing activities of $2,044,264 for the nine months ended September 30, 2024, compared to$883,054 in the prior year[22] - The company incurred $1,374,500 in capital expenditures for property and equipment during the nine months ended September 30, 2024, compared to$274,971 in the previous year[22] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2024, was $8,042,745, a substantial increase from$1,986,964 in the same period of 2023[22] - FGI Industries had cash and cash equivalents of $3,044,662 at the end of the period, down from$5,369,947 at the end of September 30, 2023[22] - The net proceeds from the revolving credit facility amounted to $5,526,322 for the nine months ended September 30, 2024, compared to a net cash used of$(1,832,849) in the same period of 2023[22] Foreign Exchange - FGI Industries reported a foreign exchange transaction loss of $(225,317) for the nine months ended September 30, 2024, compared to a loss of$(23,875) in the prior year[22]