FGI Industries .(FGI)2025-03-31 20:15Revenue Performance - Revenue increased by $14.6 million, or 12.4%, to $131.8 million for the year ended December 31, 2024, compared to $117.2 million in 2023[228] - Revenue from sanitaryware accounted for 61.5% of total revenue in 2024, with sales increasing by 7.4% to $81.1 million[230] - Revenue from shower systems increased by 27.6% to $25.5 million for the year ended December 31, 2024, representing 19.4% of total revenue[232] - Revenue generated in the United States increased by 10.5% to $82.4 million, accounting for 62.5% of total revenue in 2024[234] - The Company reported revenue of $131,818,073 for the year ended December 31, 2024, compared to $117,241,604 for the year ended December 31, 2023, reflecting an increase of approximately 12.5%[292] Profitability and Loss - The company reported a net loss of $1.7 million for the year ended December 31, 2024, compared to a net income of $579,564 in 2023, representing a decline of 399.2%[226] - Adjusted Operating Loss Income for the year ended December 31, 2024, was $(1,613,635), compared to an Adjusted Operating Income of $2,840,401 for the year ended December 31, 2023[292] - Adjusted Operating Margins decreased to -1.2% in 2024 from 2.4% in 2023, indicating a decline in operational efficiency[292] - The Company incurred a loss before income taxes of $(2,282,098) in 2024, compared to income before income taxes of $1,387,788 in 2023[292] - Adjusted Net Loss Income for the year ended December 31, 2024, was $(939,648), a significant decrease from Adjusted Net Income of $1,731,512 in 2023[292] Expenses - Selling and distribution expenses increased by $5.7 million, or 28.3%, to $25.6 million for the year ended December 31, 2024, driven by higher personnel costs and expanded marketing activities[238] - Research and development expenses increased by 23.4% to $1.7 million for the year ended December 31, 2024, reflecting continued investment in product innovation[226] - Total other expenses decreased by approximately $0.7 million or 80.1%, to $0.2 million for the year ended December 31, 2024, from $0.9 million for the year ended December 31, 2023[242] - Business expansion expenses were recorded at $247,080 in 2024, consistent with $247,082 in 2023, indicating stable investment in growth initiatives[292] Cash Flow and Liquidity - Total liquidity as of December 31, 2024, was $15.6 million, providing sufficient financial flexibility for organic growth strategies[224] - As of December 31, 2024, the company had cash and working capital of $4.6 million and $10.4 million, respectively[245] - Net cash used in operating activities was approximately $7.4 million for the year ended December 31, 2024, reflecting strategic investments and working capital fluctuations[259] - Net cash provided by financing activities was approximately $7.5 million for the year ended December 31, 2024, compared to net cash used of $2.8 million in 2023[262] Capital Expenditures and Debt - Capital expenditures amounted to approximately $2.9 million and $1.8 million for the years ended December 31, 2024 and 2023, respectively[263] - The outstanding balance of the East West Bank loan was $9.6 million as of December 31, 2024, compared to $7.0 million in 2023[251] - The interest rate on the East West Bank loan was 7.25% as of December 31, 2024, down from 8.25% in 2023[250] - FGI Canada Ltd. has a line of credit agreement with RBC allowing for borrowing up to CAD7.5 million (USD5.2 million) as of December 31, 2024[252] - The CTBC Credit Line was increased to $3.0 million on January 14, 2025, from $2.3 million[256] Strategic Initiatives - The company entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, expected to enhance product offerings[224] - The Company’s revenue recognition follows ASC 606, with revenue recognized upon transfer of control of goods or services to customers[274] - Payment terms for customers generally range from 15 to 60 days, impacting cash flow and revenue recognition timing[274] - The Company utilizes non-GAAP measures such as Adjusted Operating Income and Adjusted Net Income to provide additional insights into financial performance[288]