ACCO BRANDS Corp: Form 10-Q for the period ended Jun 30, 2024
Filed with the SEC on Aug 2, 2024 and accepted by EDGAR at Aug 2, 2024, 12:43 ET.
Management's discussion and analysis
As filed, 25,502 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Introduction
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three and six months ended June 30, 2024 and 2023 should be read in conjunction with the unaudited condensed consolidated financial statements of ACCO Brands Corporation and the accompanying notes contained therein.
Overview of the Company
ACCO Brands is a leading global consumer, technology and business branded products company, providing well-known brands and innovative product solutions used in schools, homes and at work. We have expanded into higher growth product categories, while increasing our sales mix to higher growth channels, including retail and mass merchants, e-tailers, and technology specialists. We have an experienced management team with a proven ability to grow brands, integrate acquisitions, manage seasonal businesses, run lean organizations and navigate challenging environments. Our products are sold primarily in the U.S., Europe, Australia, Canada, Brazil and Mexico.
Effective January 1, 2024, the Company reorganized its previously reported North America, EMEA and International operating segments into two operating segments, Americas and International. Americas includes the U.S., Canada, Brazil, Mexico and Chile and International includes EMEA, Australia, New Zealand and Asia. This change will simplify and delayer the Company's operating structure and reduce costs through headcount reductions, supply change optimization, global footprint rationalization, and better leverage of our sourcing capabilities. Prior period results have been reclassified to reflect this change in our operating segments. Each business segment designs, markets, sources, manufactures, and sells recognized consumer, technology and business branded products used in schools, homes and at work. Product designs are tailored to end-user preferences in each geographic region, and where possible, leverage common engineering, design, and sourcing.
Our product categories include gaming and computer accessories; storage and organization; notebooks; shredding; laminating and binding machines; stapling; punching; planners; dry erase boards; and do-it-yourself tools, among others. We distribute our products through a wide variety of channels to ensure that our products are readily and conveniently available for purchase by consumers and other end-users, wherever they prefer to shop. These channels include mass retailers, e-tailers, technology distributors, discount, drug/grocery and variety chains, warehouse clubs, hardware and specialty stores, independent office product dealers, office superstores, wholesalers, and contract stationers. We also sell directly through e-commerce sites and our direct sales organization.
Overview of Performance
The Company continues to be impacted by soft global demand, reflecting weak consumer and office spending due to inflationary pressures and high interest rates, overall changes in the workplace environment as return to office trends have stabilized, and geopolitical uncertainties. We expect these collective global trends to continue to impact our financial results through the remainder of the year.
During the second quarter, our net sales decreased $55.3 million, or 11.2 percent, compared to the prior year's second quarter. The decrease was due to reduced volumes from softer global business and consumer demand for our office products and gaming accessories, and from the exit of lower margin business in the U.S. and Canada. These declines were partially offset by growth in computer accessories. Gross margin increased 150 basis points compared to the prior-year period, primarily due to moderating product costs, improved product mix and the impact of cost reduction actions, partly offset by the impact of volume declines.
We reported an operating loss of $111.2 million in the second quarter, compared to operating income of $55.2 million in the prior year's second quarter. The decline in operating results was primarily due to non-cash impairment charges totaling $165.2 million related to goodwill and an indefinite-lived trade name within our Americas reporting unit. Operating results were also impacted by lower sales volumes, which more than offset moderating product costs, improved product mix and the impact of SG&A reduction initiatives.
Our operating cash flow for the first six months was cash provided of $2.6 million, compared to cash used of $39.3 million in the prior year, primarily reflecting reductions in working capital. Our operating cash flow continues to be seasonal with a historic pattern of strong inflows during the second half of the year.
Consolidated Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023
(in millions, except per share data)
| Three Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | Six Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $438.3 | $493.6 | $(55.3) | (11.2)% | $797.2 | $896.2 | $(99.0) | (11.0)% | ||
| Cost of products sold | 285.7 | 329.4 | (43.7) | (13.3)% | 534.2 | 612.7 | (78.5) | (12.8)% | ||
| Gross profit | 152.6 | 164.2 | (11.6) | (7.1)% | 263.0 | 283.5 | (20.5) | (7.2)% | ||
| Gross profit margin | 34.8 % | 33.3 % | 1.5 | pts | 33.0 % | 31.6 % | 1.4 | pts | ||
| Selling, general and administrative expenses | 88.0 | 98.0 | (10.0) | (10.2)% | 182.2 | 193.0 | (10.8) | (5.6)% | ||
| SG&A% to net sales | 20.1 % | 19.9 % | 0.2 | pts | 22.9 % | 21.5 % | 1.4 | pts | ||
| Amortization of intangibles | 10.9 | 11.0 | (0.1) | (0.9)% | 21.5 | 21.9 | (0.4) | (1.8)% | ||
| Restructuring | (0.3) | — | (0.3) | NM | (0.6) | 3.3 | (3.9) | NM | ||
| Impairment of goodwill and intangible assets | 165.2 | — | 165.2 | NM | 165.2 | — | 165.2 | NM | ||
| Operating (loss) income | (111.2) | 55.2 | (166.4) | NM | (105.3) | 65.3 | (170.6) | NM | ||
| Operating income margin | (25.4)% | 11.2 % | (36.6) | pts | (13.2)% | 7.3 % | (20.5) | pts | ||
| Interest expense | 13.8 | 15.5 | (1.7) | (11.0)% | 27.1 | 29.4 | (2.3) | (7.8)% | ||
| Interest income | (2.2) | (2.2) | — | — % | (4.1) | (4.6) | 0.5 | (10.9)% | ||
| Non-operating pension expense | 4.8 | 0.2 | 4.6 | NM | 5.2 | 0.3 | 4.9 | NM | ||
| Other (income) expense, net | (0.2) | (0.3) | 0.1 | (33.3)% | (0.8) | 1.5 | (2.3) | NM | ||
| (Loss) income before income tax | (127.4) | 42.0 | (169.4) | NM | (132.7) | 38.7 | (171.4) | NM | ||
| Income tax (benefit) expense | (2.2) | 15.6 | (17.8) | NM | (1.2) | 16.0 | (17.2) | NM | ||
| Effective tax rate | 1.7 % | 37.1 % | (35.4) | 0.9 % | 41.3 % | (40.4) | pts | |||
| Net (loss) income | (125.2) | 26.4 | (151.6) | NM | (131.5) | 22.7 | (154.2) | NM | ||
| Weighted average number of diluted shares outstanding: | 96.8 | 96.3 | 0.5 | 0.5 % | 96.3 | 96.7 | (0.4) | (0.4)% | ||
| Diluted (loss) income per share | $(1.29) | $0.27 | $(1.56) | NM | $(1.37) | $0.23 | $(1.60) | NM | ||
| Comparable sales (Non-GAAP)(1) | $443.0 | $493.6 | $(50.6) | (10.2)% | $800.2 | $896.2 | $(96.0) | (10.7)% |
(1) See reconciliation to GAAP contained in Part I, Item 2. "Supplemental Non-GAAP Financial Measure."
Net Sales
For the three months ended June 30, 2024, net sales decreased $55.3 million, or 11.2 percent, including $4.7 million, or 1.0 percent, from adverse foreign exchange. Comparable net sales decreased 10.2 percent. The sales declines were driven by lower volume, which was down 9.2 percent, primarily due to softer global business and consumer demand for our office products and gaming accessories, and from the exit of lower margin business, which accounted for approximately 4.0 percent of the decline. These declines were partially offset by growth in computer accessories.
For the six months ended June 30, 2024, net sales decreased $99.0 million, or 11.0 percent, including $3.0 million, or 0.3 percent, from adverse foreign exchange. Comparable net sales decreased 10.7 percent. The sales declines were driven by lower volume, which was down 10.5 percent, primarily due to softer global business and consumer demand for our office products and technology accessories, and from the exit of lower margin business, which accounted for approximately 3.0 percent of the decline.
Gross Profit
For the three months ended June 30, 2024, gross profit decreased $11.6 million, or 7.1 percent, primarily due to volume declines partly offset by moderating product costs and the impact of global cost reduction actions. Adverse foreign exchange reduced gross profit by $1.3 million, or 0.8 percent.
For the six months ended June 30, 2024, gross profit decreased $20.5 million, or 7.2 percent, primarily due to volume declines partly offset by moderating product costs and the impact of global cost reduction actions. Adverse foreign exchange reduced gross profit by $0.6 million, or 0.2 percent.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") include advertising, marketing, selling (including commissions), research and development, customer service, depreciation related to assets outside the manufacturing and distribution processes, and all other general and administrative expenses outside the manufacturing and distribution functions (e.g., finance, human resources, information technology).
For the three months ended June 30, 2024, SG&A decreased $10.0 million, or 10.2 percent, primarily due to the impact of cost reduction actions and lower incentive compensation expense, partly offset by people cost inflation. Favorable foreign exchange reduced SG&A by $0.8 million, or 0.8 percent.
For the six months ended June 30, 2024, SG&A decreased $10.8 million, or 5.6 percent, primarily due to the impact of cost reduction actions and lower incentive compensation expense, partly offset by people cost inflation. Favorable foreign exchange reduced SG&A by $0.3 million, or 0.2 percent.
Operating (Loss) Income
For the three months ended June 30, 2024, we reported an operating loss of $111.2 million, a decrease of $166.4 million, primarily due to non-cash impairment charges totaling $165.2 million within our Americas reporting unit. The impact of lower sales volume more than offset moderating product costs, improved product mix and lower SG&A expense.
For the six months ended June 30, 2024, we reported an operating loss of $105.3 million a decrease of $170.6 million primarily due to non-cash impairment charges of $165.2 million related to goodwill and an indefinite-lived trade name within our Americas reporting unit discussed above. The impact of lower sales volume more than offset moderating product costs and lower SG&A and restructuring expense.
Income Tax (Benefit) Expense
For the three months ended June 30, 2024, we recorded an income tax benefit of $2.2 million on a loss before taxes of $127.4 million. This compared with an income tax expense of $15.6 million on income before taxes of $42.0 million for the three months ended June 30, 2023.
For the six months ended June 30, 2024, we recorded an income tax benefit of $1.2 million on a loss before taxes of $132.7 million. This compared with an income tax expense of $16.0 million on income before taxes of $38.7 million for the six months ended June 30, 2023.
See "Note 10. Income Taxes" for more information.
Net (Loss) Income/Diluted (Loss) Income per Share
For the three months ended June 30, 2024, net loss was $125.2 million compared to a net income of $26.4 million in the prior year. The net loss was primarily due to the non-cash impairment charges related to goodwill and an indefinite-lived trade name noted above.
For the six months ended June 30, 2024, net loss was $131.5 million compared to a net income of $22.7 million in the prior year. The net loss was primarily due to the non-cash impairment charges related to goodwill and an indefinite-lived trade name noted above.
Segment Net Sales and Operating (Loss) Income for the Three and Six Months Ended June 30, 2024 and 2023
ACCO Brands Americas
(in millions)
| Three Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | Six Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $292.3 | $336.4 | $(44.1) | (13.1)% | $489.5 | $566.4 | $(76.9) | (13.6)% | ||
| Segment operating (loss) income⁽¹⁾ | (108.7) | 60.4 | (169.1) | NM | (102.6) | 72.7 | (175.3) | NM | ||
| Segment operating (loss) income margin | (37.2)% | 18.0 % | (55.2) | pts | (21.0)% | 12.8 % | (33.8) | pts | ||
| Comparable sales (Non-GAAP)⁽²⁾ | $293.8 | $336.4 | $(42.6) | (12.7)% | $488.6 | $566.4 | $(77.8) | (13.8)% |
(1) Segment operating (loss) income excludes corporate costs. See "Part I, Item 1. Note 16. Information on Business Segments" for a reconciliation of total "Segment operating (loss) income" to "(Loss) income before income tax."
(2) See reconciliation to GAAP contained in Part I, Item 2. "Supplemental Non-GAAP Financial Measure."
For the three months ended June 30, 2024, net sales decreased $44.1 million, or 13.1 percent, as a result of lower volume of $35.1 million, or 10.4 percent, and price decreases which reduced sales by $7.3 million, or 2.2 percent. The volume decline was primarily due to softer business and consumer demand for our office products and gaming accessories, and from the exit of lower margin business, which accounted for approximately 5.0 percent of the decline. These declines were partially offset by growth in computer accessories. Adverse foreign exchange reduced net sales $1.5 million or 0.4 percent.
For the six months ended June 30, 2024, net sales decreased $76.9 million, or 13.6 percent, as a result of lower volume of $68.7 million, or 12.1 percent, and price decreases which reduced sales by $9.1 million, or 1.6 percent. The volume decline was primarily due to softer business and consumer demand for our office products and technology accessories, and from the exit of lower margin business, which accounted for approximately 5.0 percent. Favorable foreign exchange increased net sales $0.9 million or 0.2 percent.
For the three months ended June 30, 2024, we reported an operating loss of $108.7 million, a decrease of $169.1 million, primarily due to non-cash impairment charges totaling $165.2 million. This includes an impairment charge to goodwill of $127.5 million and an impairment charge to an indefinite-lived trade name of $37.7 million. The impact of lower sales volume was partly offset by moderating product costs, improved product mix, and lower SG&A expense as a result of our cost reduction initiatives and reduced incentive compensation. Adverse foreign exchange reduced operating income $0.1 million or 0.2 percent.
For the six months ended June 30, 2024, we reported an operating loss of $102.6 million, a decrease of $175.3 million, primarily due to the non-cash impairment charges totaling $165.2 million related to goodwill and an indefinite-lived trade name noted above. The impact of lower sales volume was partly offset by moderating product costs and lower SG&A expense as a result of our cost reduction initiatives and reduced incentive compensation. Favorable foreign exchange increased operating income $0.4 million or 0.6 percent.
ACCO Brands International
(in millions)
| Three Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | Six Months Ended June 30, 2024 | 2023 | Amount of Change $%/pts | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $146.0 | $157.2 | $(11.2) | (7.1)% | $307.7 | $329.8 | $(22.1) | (6.7)% | ||
| Segment operating income⁽¹⁾ | 7.8 | 7.1 | 0.7 | 9.9% | 20.6 | 16.8 | 3.8 | 22.6% | ||
| Segment operating income margin | 5.3% | 4.5% | 0.8 | pts | 6.7% | 5.1% | 1.6 | pts | ||
| Comparable sales (Non-GAAP)⁽²⁾ | $149.2 | $157.2 | $(8.0) | (5.1)% | $311.6 | $329.8 | $(18.2) | (5.5)% |
(1) Segment operating (loss) income excludes corporate costs. See "Part I, Item 1. Note 16. Information on Business Segments" for a reconciliation of total "Segment operating (loss) Income" to "(Loss) income before income tax."
(2) See reconciliation to GAAP contained in Part I, Item 2. "Supplemental Non-GAAP Financial Measure."
For the three months ended June 30, 2024, net sales decreased $11.2 million, or 7.1 percent, primarily due to lower volume of $10.3 million, or 6.6 percent, partly offset by price increases which added $2.2 million, or 1.4 percent. The lower volume reflects reduced business and consumer demand for our office products, partially offset by growth in computer accessories. Adverse foreign exchange reduced net sales $3.2 million, or 2.0 percent.
For the six months ended June 30, 2024, net sales decreased $22.1 million, or 6.7 percent, primarily due to lower volume of $25.1 million, or 7.6 percent, partly offset by price increases which added $6.9 million, or 2.1 percent. The lower volume reflects reduced business and consumer demand for our office products and technology accessories. Adverse foreign exchange reduced net sales $3.9 million, or 1.2 percent.
For the three months ended June 30, 2024, operating income increased $0.7 million primarily due to moderating product costs and the cumulative benefit of pricing and cost reduction actions offsetting the impact of lower volume. Adverse foreign exchange reduced operating income $0.4 million, or 5.6 percent.
For the six months ended June 30, 2024, operating income increased $3.8 million primarily due to $3.7 million in lower restructuring charges. Adverse foreign exchange reduced operating income $0.7 million, or 4.2 percent.
Liquidity and Capital Resources
Our primary liquidity needs are to support our working capital requirements, service indebtedness and fund capital expenditures and dividends. Our principal sources of liquidity are cash flows from operating activities, cash and cash equivalents held, and seasonal borrowings under our $600 million multi-currency revolving credit facility (the "Revolving Facility"). As of June 30, 2024, there was $90.1 million in borrowings outstanding under the Revolving Facility ($17.4 million reported in "Current portion of long-term debt" and $72.7 million reported in "Long-term debt, net"), and the amount available for borrowings was $501.3 million (allowing for $8.6 million of letters of credit outstanding on that date). We had $112.7 million in cash on hand. We maintain adequate financing arrangements at market rates.
As of June 30, 2024, our Consolidated Leverage Ratio was approximately 3.70 to 1.00 versus our maximum covenant of 4.50 to 1.00. We have no debt maturities before March 2026.
Our priorities for cash flow use, after funding business operations, include debt reduction, dividends, share repurchases and funding strategic acquisitions.
The $410.5 million of debt outstanding as of June 30, 2024 under our senior secured credit facilities had a weighted average interest rate of 7.10 percent, and the $575.0 million outstanding principal amount of our senior unsecured notes due 2029 had a fixed interest rate of 4.25 percent.
Adequacy of Liquidity Sources
We believe that cash flow from operations, our current cash balance and other sources of liquidity, including borrowings available under our Revolving Facility, will be adequate to support our requirements for working capital and restructuring expenditures, and to service indebtedness for the foreseeable future.
Restructuring Activities
From time to time the Company may implement restructuring, realignment or cost-reduction plans and activities, including those related to integrating acquired businesses.
For additional details, see "Note 9. Restructuring" to the condensed consolidated financial statements contained in "Part I, Item 1. Financial Information" of this Quarterly Report on Form 10-Q.
Cash Flow for the Six Months Ended June 30, 2024 and 2023
During the six months ended June 30, 2024, our cash and cash equivalents increased $46.3 million, as compared to an increase of $20.2 million in the first six months of the prior year. The following table summarizes our cash flows for the periods presented:
(in millions)
| Net cash flow provided by (used in): | Six Months Ended June 30, 2024 | 2023 | Amount of Change |
|---|---|---|---|
| Operating activities | $2.6 | $(39.3) | $41.9 |
| Investing activities | (4.8) | (6.1) | 1.3 |
| Net (repayments) borrowings | 67.7 | 77.3 | (9.6) |
| Dividends paid | (14.3) | (14.2) | (0.1) |
| All other financing | (1.9) | (1.7) | (0.2) |
| Financing activities | 51.5 | 61.4 | (9.9) |
| Effect of foreign exchange rate changes on cash and cash equivalents | (3.0) | 4.2 | (7.2) |
| Net increase in cash and cash equivalents | $46.3 | $20.2 | $26.1 |
Cash Flow from Operating Activities
Cash provided by operating activities during the six months ended June 30, 2024, was driven by cash provided by trade working capital of $26.9 million, which includes accounts receivable, inventory and accounts payable. This was partially offset by cash payments for incentive compensation, interest and taxes.
Cash used by operating activities during the six months ended June 30, 2023, was driven by cash used by trade working capital of $78.4 million, which includes accounts receivable, inventory and accounts payable, as well as cash payments for incentive compensation, interest and taxes.
Cash Flow from Investing Activities
Cash used by investing activities during the six months ended June 30, 2024 and 2023 was primarily due to capital expenditures.
Cash Flow from Financing Activities
Cash provided by financing activities during the six months ended June 30, 2024 and 2023 was primarily due to cash inflows from a net increase in debt, partially offset by dividend payments.
Supplemental Non-GAAP Financial Measure
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the U.S. ("GAAP"), we provide investors with certain non-GAAP financial measures, including comparable sales. Comparable sales represent net sales excluding the impact of material acquisitions, if any, and with current-period foreign operation sales translated at prior-year currency rates. We sometimes refer to comparable sales as comparable net sales.
We use comparable sales both to explain our results to stockholders and the investment community and in the internal evaluation and management of our business. We believe comparable sales provide management and investors with a more complete understanding of our underlying operational results and trends, facilitate meaningful period-to-period comparisons and enhance an overall understanding of our past and future financial performance. Comparable sales should not be considered in isolation or as a substitute for, or superior to, GAAP net sales and should be read in connection with the Company's financial statements presented in accordance with GAAP.
The following tables provide a reconciliation of GAAP net sales as reported to non-GAAP comparable sales:
(in millions)
| Comparable Sales - Three Months Ended June 30, 2024 GAAP Net Sales | Non-GAAP Currency Translation | Comparable Sales | |
|---|---|---|---|
| ACCO Brands Americas | $292.3 | $(1.5) | $293.8 |
| ACCO Brands International | 146.0 | (3.2) | 149.2 |
| Total | $438.3 | $(4.7) | $443.0 |
(in millions)
| Amount of Change - Three Months Ended June 30, 2024 compared to the Three Months Ended June 30, 2023 $ Change - Net Sales GAAP Net Sales Change | Non-GAAP Currency Translation | Comparable Sales Change | |
|---|---|---|---|
| ACCO Brands Americas | $(44.1) | $(1.5) | $(42.6) |
| ACCO Brands International | (11.2) | (3.2) | (8.0) |
| Total | $(55.3) | $(4.7) | $(50.6) |
| % Change - Net Sales GAAP Net Sales Change | Non-GAAP Currency Translation | Comparable Sales Change | |
|---|---|---|---|
| ACCO Brands Americas | (13.1)% | (0.4)% | (12.7)% |
| ACCO Brands International | (7.1)% | (2.0)% | (5.1)% |
| Total | (11.2)% | (1.0)% | (10.2)% |
(in millions)
| Comparable Sales - Six Months Ended June 30, 2024 GAAP Net Sales | Non-GAAP Currency Translation | Comparable Sales | |
|---|---|---|---|
| ACCO Brands Americas | $489.5 | $0.9 | $488.6 |
| ACCO Brands International | 307.7 | (3.9) | 311.6 |
| Total | $797.2 | $(3.0) | $800.2 |
35
(in millions)
| Amount of Change - Six Months Ended June 30, 2024 compared to the Six Months Ended June 30, 2023 $ Change - Net Sales GAAP Net Sales Change | Non-GAAP Currency Translation | Comparable Sales | |
|---|---|---|---|
| ACCO Brands Americas | $(76.9) | $0.9 | $(77.8) |
| ACCO Brands International | (22.1) | (3.9) | (18.2) |
| Total | $(99.0) | $(3.0) | $(96.0) |
| % Change - Net Sales GAAP Net Sales Change | Non-GAAP Currency Translation | Comparable Sales | |
|---|---|---|---|
| ACCO Brands Americas | (13.6)% | 0.2% | (13.8)% |
| ACCO Brands International | (6.7)% | (1.2)% | (5.5)% |
| Total | (11.0)% | (0.3)% | (10.7)% |
Market risk
As filed, 342 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
See "Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk" of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to Foreign Exchange Risk Management or Interest Rate Risk Management in the quarter ended June 30, 2024 or through the date of this report.
Controls and procedures
As filed, 998 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
(a) Evaluation of Disclosure Controls and Procedures.
As of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation under the supervision of the Chief Executive Officer and the Chief Financial Officer, and with the participation of our Disclosure Committee, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of June 30, 2024.
(b) Changes in Internal Control over Financial Reporting.
There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
Risk factors
As filed, 183 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
There have been no material changes in our risk factors from those disclosed in "Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2024-06-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2024-04-01 to 2024-06-30 | $438.3m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months2024-01-01 to 2024-06-30 | $797.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months2024-04-01 to 2024-06-30 | $285.7m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months2024-01-01 to 2024-06-30 | $534.2m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months2024-04-01 to 2024-06-30 | $152.6m | us-gaap:GrossProfit |
| Gross profit | 6 months2024-01-01 to 2024-06-30 | $263.0m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months2024-04-01 to 2024-06-30 | $88.0m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months2024-01-01 to 2024-06-30 | $182.2m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months2024-04-01 to 2024-06-30 | −$111.2m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months2024-01-01 to 2024-06-30 | −$105.3m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months2024-04-01 to 2024-06-30 | $13.8m | us-gaap:InterestExpense |
| Interest expense | 6 months2024-01-01 to 2024-06-30 | $27.1m | us-gaap:InterestExpense |
| Income tax | 3 months2024-04-01 to 2024-06-30 | −$2.2m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months2024-01-01 to 2024-06-30 | −$1.2m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2024-04-01 to 2024-06-30 | −$125.2m | us-gaap:NetIncomeLoss |
| Net income | 6 months2024-01-01 to 2024-06-30 | −$131.5m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2024-04-01 to 2024-06-30 | −$1.29 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months2024-01-01 to 2024-06-30 | −$1.37 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2024-04-01 to 2024-06-30 | −$1.29 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months2024-01-01 to 2024-06-30 | −$1.37 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2024-04-01 to 2024-06-30 | 96,800,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months2024-01-01 to 2024-06-30 | 96,300,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months2024-01-01 to 2024-06-30 | $2.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Dividends paid | 6 months2024-01-01 to 2024-06-30 | $14.3m | us-gaap:PaymentsOfDividendsCommonStock |
| Current assets | At period end2024-06-30 | $858.4m | us-gaap:AssetsCurrent |
| Total assets | At period end2024-06-30 | $2.41bn | us-gaap:Assets |
| Current liabilities | At period end2024-06-30 | $484.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2024-06-30 | $1.80bn | us-gaap:Liabilities |
| Long-term debt | At period end2024-06-30 | $917.5m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | At period end2024-06-30 | $48.3m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | At period end2024-06-30 | $617.1m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0000950170-24-089733. Last ingested by Listed: Oct 30, 2026, 11:41 ET. Listed shows no prices and gives no investment advice.