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FGI INDUSTRIES ANNOUNCES SECOND QUARTER 2024 RESULTS

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FGI Industries (Nasdaq: FGI) reported its Q2 2024 results with total revenue of $29.4 million, up 0.6% year-over-year. Gross profit increased 11.9% to $9.0 million, with gross margin improving by 310 basis points to 30.5%. The company reported an operating loss of ($0.5) million and a net loss of ($0.0) million. Adjusted net income was $0.1 million or $0.01 per diluted share.

Shower Systems revenue grew 37% year-over-year, while Sanitaryware and Bath Furniture declined 8% and 16% respectively. The company ended Q2 with total available liquidity of $17.4 million. FGI reiterated its fiscal 2024 guidance, projecting total revenue between $115 million and $128 million, and adjusted net income between $1.2 million to $2.0 million.

FGI Industries (Nasdaq: FGI) ha riportato i risultati del Q2 2024 con un fatturato totale di 29,4 milioni di dollari, in aumento dello 0,6% rispetto all'anno precedente. Il profitto lordo è aumentato dell'11,9% raggiungendo i 9,0 milioni di dollari, con un margine lordo migliorato di 310 punti base al 30,5%. L'azienda ha registrato una perdita operativa di ($0,5) milioni e una perdita netta di ($0,0) milioni. L'utile netto rettificato è stato di 0,1 milioni di dollari, pari a 0,01 dollari per azione diluita.

I ricavi dei Sistemi Doccia sono cresciuti del 37% rispetto all'anno precedente, mentre il Sanitaryware e i Mobili da Bagno hanno registrato un calo rispettivamente dell'8% e del 16%. L'azienda ha concluso il Q2 con una liquidità totale disponibile di 17,4 milioni di dollari. FGI ha ribadito le sue previsioni per l'esercizio fiscale 2024, prevedendo un fatturato totale compreso tra 115 milioni e 128 milioni di dollari e un utile netto rettificato compreso tra 1,2 milioni e 2,0 milioni di dollari.

FGI Industries (Nasdaq: FGI) reportó sus resultados del Q2 2024 con ingresos totales de 29,4 millones de dólares, un aumento del 0,6% interanual. El beneficio bruto aumentó un 11,9% alcanzando los 9,0 millones de dólares, con un margen bruto mejorado en 310 puntos básicos hasta el 30,5%. La compañía reportó una pérdida operativa de ($0,5) millones y una pérdida neta de ($0,0) millones. El ingreso neto ajustado fue de 0,1 millones de dólares o 0,01 dólares por acción diluida.

Los ingresos de Sistemas de Ducha crecieron un 37% interanual, mientras que los productos sanitarios y los muebles de baño cayeron un 8% y un 16% respectivamente. La empresa terminó el Q2 con una liquidez total disponible de 17,4 millones de dólares. FGI reiteró su guía fiscal para 2024, proyectando ingresos totales entre 115 millones y 128 millones de dólares, y un ingreso neto ajustado entre 1,2 millones y 2,0 millones de dólares.

FGI Industries (Nasdaq: FGI)는 2024년 2분기 실적을 발표하며 총 수익 2,940만 달러를 기록했으며, 이는 전년 대비 0.6% 증가한 수치입니다. 총 이익은 11.9% 증가하여 900만 달러에 달하며, 총 마진은 310 베이시스 포인트 개선된 30.5%를 기록했습니다. 회사는 운영 손실이 ($0.5) 백만, 순손실이 ($0.0) 백만이라고 보고했습니다. 조정된 순이익은 10만 달러, 즉 희석 주당 0.01 달러였습니다.

샤워 시스템의 수익은 전년 대비 37% 증가했으며, 반면 위생 도기와 욕실 가구는 각각 8% 및 16% 감소했습니다. 회사는 2분기를 1,740만 달러의 가용 유동성으로 마감했습니다. FGI는 2024 회계연도 가이던스를 반복하며 총 수익은 1억 1천5백만 달러에서 1억 2천8백만 달러 사이, 조정된 순이익은 120만 달러에서 200만 달러 사이로 예상했습니다.

FGI Industries (Nasdaq: FGI) a annoncé ses résultats du 2ème trimestre 2024 avec un chiffre d'affaires total de 29,4 millions de dollars, en hausse de 0,6 % par rapport à l'année précédente. Le bénéfice brut a augmenté de 11,9 % pour atteindre 9,0 millions de dollars, avec une amélioration de la marge brute de 310 points de base à 30,5 %. L'entreprise a enregistré une perte d'exploitation de ($0,5) millions et une perte nette de ($0,0) millions. Le revenu net ajusté était de 0,1 millions de dollars ou 0,01 dollars par action diluée.

Les revenus des Systèmes de Douche ont augmenté de 37 % par rapport à l'année précédente, tandis que ceux des Sanitaires et des Meubles de Salle de Bain ont diminué respectivement de 8 % et de 16 %. L'entreprise a clôturé le 2ème trimestre avec une liquidité totale disponible de 17,4 millions de dollars. FGI a réitéré son orientation pour l'exercice 2024, prévoyant un chiffre d'affaires total compris entre 115 millions et 128 millions de dollars, et un revenu net ajusté compris entre 1,2 millions et 2,0 millions de dollars.

FGI Industries (Nasdaq: FGI) hat die Ergebnisse für das 2. Quartal 2024 mit einem Gesamterlös von 29,4 Millionen US-Dollar gemeldet, was einem Anstieg von 0,6% im Jahresvergleich entspricht. Der Bruttogewinn stieg um 11,9% auf 9,0 Millionen US-Dollar, während die Bruttomarge um 310 Basispunkte auf 30,5% verbessert wurde. Das Unternehmen berichtete von einem Betriebsverlust von ($0,5) Millionen und einem Nettoverlust von ($0,0) Millionen. Das bereinigte Nettoergebnis betrug 0,1 Millionen US-Dollar oder 0,01 US-Dollar pro verwässerter Aktie.

Die Einnahmen aus Duschsystemen wuchsen im Jahresvergleich um 37%, während die Umsätze von Sanitärprodukten und Badmöbeln um 8% und 16% zurück gingen. Das Unternehmen schloss das 2. Quartal mit einer verfügbaren Liquidität von 17,4 Millionen US-Dollar. FGI bekräftigte die Prognose für das Geschäftsjahr 2024 und erwartet einen Gesamterlös von 115 Millionen bis 128 Millionen US-Dollar sowie ein bereinigtes Nettoergebnis von 1,2 Millionen bis 2,0 Millionen US-Dollar.

Positive
  • Revenue increased 0.6% year-over-year to $29.4 million
  • Gross profit grew 11.9% to $9.0 million
  • Gross margin improved by 310 basis points to 30.5%
  • Shower Systems revenue increased by 37% year-over-year
  • Covered Bridge custom cabinet segment grew 66% year-over-year
  • Total available liquidity of $17.4 million at quarter-end
Negative
  • Operating loss of ($0.5) million compared to $0.6 million profit in prior year
  • Net loss of ($0.0) million versus net income of $0.1 million in prior year
  • Sanitaryware revenue declined 8% year-over-year
  • Bath Furniture revenue declined 16% year-over-year
  • Increased operating expenses due to investments and inflation

Insights

FGI Industries' Q2 2024 results present a mixed picture. While revenue grew marginally by 0.6% year-over-year to $29.4 million, the company saw a significant improvement in gross profit, up 11.9% to $9.0 million. The gross margin expansion of 310 basis points to 30.5% is particularly noteworthy, indicating improved operational efficiency.

However, the company reported an operating loss of $0.5 million and a net loss of $0.0 million, down from a profit in the same period last year. This decline was primarily due to increased operating expenses related to growth initiatives. The adjusted net income of $0.1 million ($0.01 per diluted share) shows that the core business remains profitable when excluding non-recurring expenses.

The company's liquidity position remains solid with $17.4 million in total available liquidity. The reiterated fiscal 2024 guidance suggests management's confidence in future performance, projecting revenue between $115 million and $128 million.

FGI's Q2 results reflect the current challenges and opportunities in the kitchen and bath products industry. The 37% year-over-year growth in Shower Systems revenue indicates a strong demand trend in this segment. Conversely, the declines in Sanitaryware (8%) and Bath Furniture (16%) revenues highlight ongoing market pressures and logistics challenges.

The company's expansion into India and investment in new product introductions demonstrate a proactive approach to growth. However, the flat industry outlook and minimal growth forecasts from customers suggest a cautious market environment. The 66% growth in the Covered Bridge custom cabinet segment is a bright spot, indicating potential in premium, customized offerings.

The impact of macro headwinds on the bath furniture market, leading to a trade-down to lower ticket products, is a trend to watch. This shift in consumer behavior could affect the company's product mix and margins going forward.

FGI's Q2 performance highlights significant supply chain challenges and opportunities. The transition to SAP enterprise software and overseas logistics issues led to delayed shipments, impacting revenue growth. These delays, expected to be resolved in H2, underscore the importance of robust supply chain management in the current global environment.

The company's ability to improve gross margins despite these challenges is commendable, suggesting effective cost management and potentially favorable raw material pricing. However, the increase in freight rates is a concern, as it contributes to higher operating expenses. FGI's proactive monitoring of freight costs indicates awareness of this critical factor.

The expansion into India could potentially diversify the supply chain and open new market opportunities. However, managing a more complex global supply network will require careful planning and execution to avoid further logistics challenges and capitalize on growth potential.

EAST HANOVER, N.J., Aug. 7, 2024 /PRNewswire/ -- FGI Industries Ltd. (Nasdaq: FGI) ("FGI" or the "Company"), a leading global supplier of kitchen and bath products, today announced results for the second quarter 2024.

SECOND QUARTER 2024 HIGHLIGHTS
(As compared to the second quarter of 2023)

  • Total revenue of $29.4 million, +0.6% y/y
  • Gross profit of $9.0 million, +11.9% y/y
  • Gross margin of 30.5%, +310 bps y/y
  • Operating loss of ($0.5) million and net loss of ($0.0) million
  • Adjusted operating loss of ($0.3) million
  • Adjusted net income of $0.1 million

MANAGEMENT COMMENTARY

Dave Bruce, President and CEO of FGI, stated, "FGI reported total revenue of $29.4 million in the quarter, representing a year-over-year increase of 0.6%. Gross profit was $9.0 million, reflecting growth of 11.9% compared to the prior year. The gross margin improved to 30.5%, an increase of 310 basis points compared to the second quarter of 2023. The industry outlook remains relatively flat overall with our customers forecasting minimal growth in 2024. FGI's second quarter revenue was largely unchanged compared to second quarter 2023 results due, in part, to our transition to SAP enterprise software and overseas logistics challenges. Our Sanitaryware and Bath Furniture revenue declined 8% and 16% year-over-year, respectively. We expect the delayed shipments to be completed in the second half of the year. Shower Systems revenue increased by 37% year-over-year as demand trends remain steady and sales of both existing and new products continue to drive organic growth. Our Covered Bridge custom cabinet segment showed strong growth, increasing 66% year over year." Bruce continued, "Geographically, we remain optimistic about India and opened an office in India during the quarter. We are excited about our new product introductions and continue to invest in our brands and our future growth initiatives."

Perry Lin, Chief Financial Officer of FGI, commented, "FGI ended the second quarter with total available liquidity of $17.4 million. Our operating expenses increased due to investing in future growth combined with the effects of inflation and an increase in freight rates. We expect operating expenses to decline sequentially in the second half of the year as certain expenses incurred in the first half will not recur in the second half of the year. We continue to carefully monitor freight costs. We believe the best use of our capital is for internal investment and this will remain our priority in the near term."

SECOND QUARTER 2024 RESULTS

Revenue totaled $29.4 million during the second quarter of 2024, an increase of 0.6% compared to the prior-year period, driven by increased volume in Shower systems and a normalization of inventory levels. 

  • Sanitaryware revenue was $17.3 million during the second quarter of 2024, down from $18.8 million in the prior-year period. The revenue decrease was impacted by the delayed shipments in the second quarter.
  • Bath Furniture revenue was $4.0 million during the second quarter of 2024, a decline from revenue of $4.8 million in the prior-year period. The bath furniture market continues to be impacted by macro headwinds and a trade-down to lower ticket products.
  • Shower Systems revenue was $5.9 million during the second quarter of 2024, up from $4.3 million last year. The revenue increase was driven by recently launched programs and orders from a broader customer base.
  • Other revenue, primarily from Kitchen Cabinets, was $2.1 million during the second quarter, up from $1.3 million in the prior year, driven by continued order momentum.

Gross profit was $9.0 million during the second quarter of 2024, an increase of 11.9% compared to last year, driven by growth in our higher margin products. Gross profit margin improved to 30.5% during the second quarter of 2024, up 310 basis points from the prior-year period. 

Operating loss was ($0.5) million during the second quarter of 2024, down from $0.6 million in the prior-year period.  Operating loss during the second quarter of 2024 included non-recurring expenses of $0.1 million for business expansion expense and accruals for non-recurring IPO- related stock-based compensation.  Excluding these items, adjusted operating loss was ($0.3) million during the second quarter.  The decline in operating income was a result of an increase in personnel costs, marketing and promotion expenses, warehouse expenses, and operating expenses tied to growth initiatives, as the Company continues to invest in its BPC growth strategy. As a result, adjusted operating margin was (1.1%) during the second quarter, down from 2.4% in the same period last year.

The Company reported GAAP net loss ($0.0) million, or ($0.00) per diluted share during the second quarter of 2024, versus net income of $0.1 million, or $0.01 per diluted share, in the same period last year.  Net loss for the second quarter of 2024 included after-tax expenses of $0.1 million related to business expansion expense and accruals for non-recurring IPO- related stock-based compensation. Net loss for the second quarter of 2023 included after-tax expense of $0.1 million related to business expansion expense and non-recurring IPO- related compensation. Excluding these items, adjusted net income for the second quarter of 2024 was $0.1 million, or $0.01 per diluted share, versus adjusted net income of $0.2 million, or $0.02 per diluted share, for the same period last year.   

FINANCIAL RESOURCES AND LIQUIDITY

As of June 30, 2024, the Company had $1.3 million of cash and cash equivalents, total debt of $9.7 million and $16.1 million of availability under its credit facilities net of letters of credit. Total liquidity was $17.4 million at June 30, 2024.

FINANCIAL GUIDANCE

The Company reiterates its fiscal 2024 guidance as follows:

  • Total Revenue between $115 million and $128 million
  • Total Adjusted Operating Income between $2.8 million and $3.8 million
  • Total Adjusted Net Income between $1.2 million to $2.0 million

Guidance for adjusted operating income and adjusted net income is presented on an adjusted basis and excludes non-recurring items.  All guidance is current as of the time provided and is subject to change.

SECOND QUARTER CONFERENCE CALL

FGI will conduct a conference call on Thursday, August 8 at 9:00 am Eastern Time to discuss the quarterly results.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company's corporate website at https://investor.fgi-industries.com.  To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register and download and install any necessary audio software.

To participate in the live teleconference:

Toll Free:  


1-800-717-1738

International Live:


1-646-307-1865

To listen to a replay of the teleconference, which will be available through August 22, 2024:

Domestic Replay:   


1-844-512-2921

International Replay:  


1-412-317-6671 13727517

Conference ID:


1181834

ABOUT FGI INDUSTRIES

FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores.

Non-GAAP Measures

In addition to the measures presented in our consolidated financial statements, we use the following non-GAAP measures to evaluate our business, measure our performance, identify trends affecting our business and assist us in making strategic decisions. Our non-GAAP measures are: Adjusted Operating Income, Adjusted Operating Margins and Adjusted Net Income. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). They are supplemental financial measures of our performance only, and should not be considered substitutes for net income, income from operations or any other measure derived in accordance with GAAP and may not be comparable to similarly titled measures reported by other entities. We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring expenses, including expenses related to COVID‑19 protocols, non-recurring compensation expenses related to our IPO, and one-time anti-dumping penalty expenses. We define Adjusted Net Income as GAAP net income excluding the tax-effected impact of certain non-recurring expenses and income such as expenses related to COVID‑19 protocols, unusual litigation fees and non-recurring compensation expenses related to our IPO. We define Adjusted Operating Margins as adjusted income from operations divided by revenue.

We use these non-GAAP measures, along with U.S. GAAP measures, to evaluate our business, measure our financial performance and profitability and our ability to manage expenses, after adjusting for certain one-time expenses, identify trends affecting our business and assist us in making strategic decisions. We believe these non-GAAP measures, when reviewed in conjunction with U.S. GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under U.S. GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance over time on a consistent basis. With respect to the Company's expectations of its future performance, the Company's reconciliations of full year 2024 Adjusted Operating Income and 2024 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipate," "expect," "could," "may," "intend," "plan", "see" and "believe," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI's guidance, the Company's growth strategies, outlook and potential acquisition activity, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the company's planned product launches and new customer partnerships, the effect of supply chain disruptions and freight costs and estimates of customer de-stock and timing of market recoveries.  These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI's periodic filings with the Securities & Exchange Commission including those described as "Risk Factors" in FGI's annual report on Form 10-K for the year ended December 31, 2023, and in quarterly reports on Form 10-Q filed thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

FGI INDUSTRIES LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS










As of


As of



June 30, 2024


December 31, 2023



USD


USD



(Unaudited)



ASSETS














CURRENT ASSETS







Cash


$

1,307,092


$

7,777,241

Accounts receivable, net



17,589,395



16,195,543

Inventories, net



12,804,781



9,923,852

Prepayments and other current assets



2,122,441



4,617,751

Prepayments and other receivables – related parties



13,681,107



7,600,283

Total current assets



47,504,816



46,114,670








PROPERTY AND EQUIPMENT, NET



2,897,079



1,910,491








OTHER ASSETS







Intangible assets



1,977,587



102,227

Operating lease right-of-use assets, net



13,974,220



15,203,576

Deferred tax assets, net



1,783,667



1,168,833

Other noncurrent assets



1,741,360



1,245,133

Total other assets



19,476,834



17,719,769

Total assets


$

69,878,729


$

65,744,930








LIABILITIES AND SHAREHOLDERS' EQUITY














CURRENT LIABILITIES







Short-term loans


$

9,692,200


$

6,959,175

Accounts payable



17,310,270



14,524,607

Accounts payable – related parties



1,016,263



735,308

Income tax payable





189,119

Operating lease liabilities – current



1,732,944



1,595,998

Accrued expenses and other current liabilities



4,254,152



4,039,499

Total current liabilities



34,005,829



28,043,706








OTHER LIABILITIES







Operating lease liabilities – noncurrent



12,526,869



13,674,452

Total liabilities



46,532,698



41,718,158








COMMITMENTS AND CONTINGENCIES














SHAREHOLDERS' EQUITY







Preference Shares ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as
of June 30, 2024 and December 31, 2023)





Ordinary shares ($0.0001 par value, 200,000,000 shares authorized, 9,563,914 and 9,547,607 shares issued
and outstanding as of June 30, 2024 and December 31, 2023, respectively)



956



955

Additional paid-in capital



21,205,922



20,877,832

Retained earnings



4,164,900



4,413,524

Accumulated other comprehensive loss



(1,559,057)



(1,111,499)

FGI Industries Ltd. shareholders' equity



23,812,721



24,180,812

Non-controlling interests



(466,690)



(154,040)

Total shareholders' equity



23,346,031



24,026,772

Total liabilities and shareholders' equity


$

69,878,729


$

65,744,930

 

 

FGI INDUSTRIES LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

















For the Three Months Ended


For the Six Months Ended




June 30, 


June 30, 




2024


2023


2024


2023




USD


USD


USD


USD


REVENUE


$

29,370,949


$

29,189,913


$

60,124,468


$

56,352,179
















COST OF REVENUE



20,407,647



21,179,511



42,747,683



41,139,619
















GROSS PROFIT



8,963,302



8,010,402



17,376,785



15,212,560
















OPERATING EXPENSES














Selling and distribution



6,260,847



4,800,518



12,391,733



9,511,607


General and administrative



2,622,020



2,252,503



4,904,878



4,394,748


Research and development



530,797



377,106



851,470



728,857


Total operating expenses



9,413,664



7,430,127



18,148,081



14,635,212
















(LOSS) INCOME FROM OPERATIONS



(450,362)



580,275



(771,296)



577,348
















OTHER INCOME (EXPENSES)














Interest income



4,113



4,047



4,667



5,422


Interest expense



(305,094)



(293,711)



(527,301)



(543,348)


Other income (expenses), net



429,513



(10,684)



456,530



(30,241)


Total other income (expenses), net



128,532



(300,348)



(66,104)



(568,167)
















(LOSS) INCOME BEFORE INCOME TAXES



(321,830)



279,927



(837,400)



9,181
















PROVISION FOR (BENEFIT OF) INCOME TAXES














Current



267,876



181,761



338,708



314,554


Deferred



(566,291)



9,685



(614,834)



(90,479)


Total provision for income taxes



(298,415)



191,446



(276,126)



224,075
















NET (LOSS) INCOME



(23,415)



88,481



(561,274)



(214,894)


Less: net loss attributable to non-controlling shareholders



(186,979)





(312,650)




Net income (loss) attributable to FGI Industries Ltd. shareholders



163,564



88,481



(248,624)



(214,894)
















OTHER COMPREHENSIVE (LOSS) INCOME














Foreign currency translation adjustment



(424,980)



4,897



(447,558)



24,996
















COMPREHENSIVE (LOSS) INCOME



(448,395)



93,378



(1,008,832)



(189,898)


Less: comprehensive loss attributable to non-controlling shareholders



(186,979)





(312,650)




Comprehensive (loss) income attributable to FGI Industries Ltd.
shareholders


$

(261,416)


$

93,378


$

(696,182)


$

(189,898)
















WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES














Basic



9,564,779



9,500,000



9,566,433



9,500,000


Diluted



9,699,561



9,692,500



9,566,433



9,500,000
















EARNINGS (LOSS) PER SHARE














Basic


$

0.02


$

0.01


$

(0.03)


$

(0.02)


Diluted


$

0.02


$

0.01


$

(0.03)


$

(0.02)


 

FGI INDUSTRIES LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS











For the Six Months Ended June 30, 




2024


2023




USD


USD


CASH FLOWS FROM OPERATING ACTIVITIES








Net loss


$

(561,274)


$

(214,894)


Adjustments to reconcile net loss to net cash used in operating activities








Depreciation



199,439



78,759


Amortization



1,265,425



766,856


Share-based compensation



328,090



272,556


Provision for credit losses



(6,523)



19,790


Provision for defective return



554,148



(316,132)


Foreign exchange transaction loss



(227,952)



23,214


Deferred income tax benefit



(614,835)



(90,261)


Changes in operating assets and liabilities








Accounts receivable



(1,941,477)



285,890


Inventories



(2,880,929)



3,458,238


Prepayments and other current assets



1,476,612



(1,084,906)


Prepayments and other receivables – related parties



(6,080,824)



(2,998,615)


Other noncurrent assets



(496,227)



262,563


Income taxes



(412,085)



109,111


Accounts payable



2,785,664



(1,912,180)


Accounts payable-related parties



280,955



1,218,657


Operating lease liabilities



(1,010,637)



(627,689)


Accrued expenses and other current liabilities



214,652



237,849


Net cash used in operating activities



(7,127,778)



(511,193)










CASH FLOWS FROM INVESTING ACTIVITIES








Purchase of property and equipment



(1,189,655)



(235,941)


Purchase of intangible assets



(669,764)



(496,262)


Net cash used in investing activities



(1,859,419)



(732,203)










CASH FLOWS FROM FINANCING ACTIVITIES








Net proceeds from (repayments of) revolving credit facility



2,733,024



(1,931,372)


Net cash provided by (used in) financing activities



2,733,024



(1,931,372)










EFFECT OF EXCHANGE RATE FLUCTUATION ON CASH



(215,976)



2,102










NET CHANGES IN CASH



(6,470,149)



(3,172,666)


CASH, BEGINNING OF PERIOD



7,777,241



10,067,428


CASH, END OF PERIOD


$

1,307,092


$

6,894,762










SUPPLEMENTAL CASH FLOW INFORMATION








Cash paid during the period for interest


$

(520,370)


$

(544,026)


Cash paid during the period for income taxes


$

(746,120)


$

(205,075)










NON-CASH INVESTING AND FINANCING ACTIVITIES








New addition on Right-of-use assets


$


$

(7,616,898)


Acquisition of intangible asset partially through prior period advanced payment


$

(1,241,664)


$


Non-GAAP Measures

The following table reconciles Loss from Operations to Adjusted Operating (Loss) Income and Adjusted Operating Margins, as well as Net Loss to Adjusted Net Loss for the periods presented.



















For the Three Months Ended



For the Six Months Ended





June 30, 



June 30, 





2024


2023



2024


2023



(Loss) income from operations


$

(450,362)


$

580,275



$

(771,296)


$

577,348



Adjustments:
















Non-recurring IPO-related stock-based
compensation



59,719



59,719




119,438



119,438



IPO and arbitration legal fee










50,000



Business expansion expense



61,770



61,768




123,540



123,540



Adjusted (loss) income from operations



(328,873)



701,762




(528,318)



870,326



Revenue


$

29,370,949


$

29,189,913



$

60,124,468


$

56,352,179



Adjusted operating margins



(1.1)

%


2.4

%



(0.9)

%


1.5

%


















For the Three Months Ended


For the Six Months Ended




June 30, 


June 30, 




2024


2023


2024


2023


Net (loss) income


$

(23,415)


$

88,481


$

(561,274)


$

(214,894)


Adjustments:














Non-recurring IPO-related stock-based compensation



59,719



59,719



119,438



119,438


IPO and arbitration legal fee









50,000


Business expansion expense



61,770



61,768



123,540



123,540


Total



98,074



209,968



(318,296)



78,084


Tax impact of adjustment at 18.9% effective rate



(22,961)



(22,961)



(45,923)



(55,373)


Adjusted net income (loss)


$

75,113


$

187,007


$

(364,219)


$

22,711


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/fgi-industries-announces-second-quarter-2024-results-302217065.html

SOURCE FGI Industries Ltd.

FAQ

What was FGI Industries' (FGI) revenue for Q2 2024?

FGI Industries reported total revenue of $29.4 million for Q2 2024, representing a 0.6% increase year-over-year.

How did FGI's gross margin change in Q2 2024 compared to Q2 2023?

FGI's gross margin improved to 30.5% in Q2 2024, an increase of 310 basis points compared to Q2 2023.

What was FGI's (FGI) net income/loss for Q2 2024?

FGI reported a net loss of ($0.0) million for Q2 2024, compared to a net income of $0.1 million in the same period last year.

Which segment showed the strongest growth for FGI Industries (FGI) in Q2 2024?

FGI's Shower Systems segment showed the strongest growth, with revenue increasing by 37% year-over-year in Q2 2024.

What is FGI Industries' (FGI) revenue guidance for fiscal year 2024?

FGI Industries reiterated its fiscal 2024 guidance, projecting total revenue between $115 million and $128 million.

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Furnishings, Fixtures & Appliances
Heating Equip, Except Elec & Warm Air; & Plumbing Fixtures
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United States of America
EAST HANOVER