During fiscal 2024, QEP completed several strategic divestments to streamline operations and concentrate resources on its core product lines in the North American market. These divestments included the sale of our North American hard surface flooring business, which consisted of the Harris®, Kraus®, Naturally Aged Flooring™ and Heritage Mills® brands, as well as a wood flooring manufacturing facility in
As of fiscal 2024, these divested operations have been classified as discontinued operations in our financial statements. Amounts for prior periods, including sales and operating income, have been reclassified to conform to this presentation.
QEP reported net sales of
The Company’s gross profit for fiscal 2024 increased
Operating expenses were
Interest expense declined in the latter part of fiscal 2024 as the Company’s significant repayment of debt offset higher interest rates during the earlier part of the fiscal year and during fiscal 2023.
The provision for income taxes as a percentage of income before taxes was 23.4% for fiscal 2024, as compared to 37.6% for fiscal 2023. Fiscal 2023 includes a full valuation allowance on operating losses generated by the Company’s Canadian operation.
Net loss for fiscal 2024 was
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for fiscal 2024 was
For the Year Ended | ||||||||
2024 | 2023 | |||||||
Net income from continuing operations | $ | 9,131 | $ | 4,485 | ||||
Add: | Interest expense, net | 1,386 | 2,087 | |||||
Provision for income taxes | 2,787 | 2,701 | ||||||
Depreciation and amortization | 1,364 | 1,357 | ||||||
EBITDA, as adjusted | $ | 14,668 | $ | 10,630 | ||||
Cash provided by operating activities during fiscal 2024 was
Working capital as of
The Company will not be hosting a conference call to discuss these results and welcomes inquiries from investors via email at ir@qep.com.
About QEP
Founded in 1979,
QEP is headquartered in
Forward-Looking Statements
All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding implementation of the Company’s strategies and increasing profitability and stockholder value. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties, including those listed in the Company’s annual report, as such risk factors may be amended, supplemented or superseded from time to time by other reports and disclosures made by the Company. Forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, manufacturing issues that may arise, patent positions and litigation, scarcity and rising cost for raw materials, shifts in global sourcing patterns, and general inflationary pressures, economic conditions, sales growth, price increases, maintaining and improving profitability, product development and marketing, operating expenses, cost savings, the successful completion of acquisitions and dispositions, acquisition integration, operational synergy realization, global sourcing, political uncertainty, cash flow, debt and currency exchange rates, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.
CONTACT:
Executive Vice President and
Chief Financial Officer
561-994-5550
-Financial Information Follows-
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(In thousands except per share data) | |||||||
For the Year Ended | |||||||
2024 | 2023 | ||||||
Net sales | $ | 251,986 | $ | 269,448 | |||
Cost of goods sold | 169,989 | 196,246 | |||||
Gross profit | 81,997 | 73,202 | |||||
Operating expenses: | |||||||
Shipping | 28,129 | 30,208 | |||||
General and administrative | 26,135 | 20,176 | |||||
Selling and marketing | 13,633 | 13,680 | |||||
Other (income) expense, net | 796 | (135 | ) | ||||
Total operating expenses | 68,693 | 63,929 | |||||
Operating income | 13,304 | 9,273 | |||||
Interest expense, net | (1,386 | ) | (2,087 | ) | |||
Income before provision for income taxes | 11,918 | 7,186 | |||||
Provision for income taxes | 2,787 | 2,701 | |||||
Net income from continuing operations | 9,131 | 4,485 | |||||
Loss from discontinued operations | (13,839 | ) | (4,548 | ) | |||
Net loss | $ | (4,708 | ) | $ | (63 | ) | |
Basic earnings (loss) per share: | |||||||
From continuing operations | 2.73 | 1.34 | |||||
From discontinued operations | (4.14 | ) | (1.36 | ) | |||
Basic earnings (loss) per share | (1.41 | ) | (0.02 | ) | |||
Diluted earnings (loss) per share: | |||||||
From continuing operations | 2.73 | 1.34 | |||||
From discontinued operations | (4.13 | ) | (1.36 | ) | |||
Diluted earnings (loss) per share | (1.40 | ) | (0.02 | ) | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 3,343 | 3,335 | |||||
Diluted | 3,350 | 3,343 | |||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except par values) | |||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Cash | $ | 22,369 | $ | 3,060 | |||
Accounts receivable, less allowance for credit losses of | |||||||
30,338 | 37,492 | ||||||
Inventories, net | 29,913 | 37,176 | |||||
Prepaid expenses and other current assets | 7,491 | 2,939 | |||||
Prepaid income taxes | 1,375 | - | |||||
Discontinued operations | 693 | 58,332 | |||||
Current assets | 92,179 | 138,999 | |||||
Property and equipment, net | 9,894 | 7,840 | |||||
Right of use operating lease assets | 19,852 | 24,155 | |||||
Deferred income taxes, net | 2,548 | 3,751 | |||||
Intangibles, net | 99 | 118 | |||||
Other assets | 1,276 | 2,256 | |||||
Discontinued operations | - | 19,271 | |||||
Total assets | $ | 125,848 | $ | 196,390 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Trade accounts payable | $ | 14,438 | $ | 8,147 | |||
Accrued liabilities | 13,352 | 12,555 | |||||
Current operating lease liabilities | 3,210 | 2,983 | |||||
Income taxes payable | - | 384 | |||||
Lines of credit | 601 | 21,718 | |||||
Current maturities of debt | 74 | 1,908 | |||||
Discontinued operations | 479 | 36,299 | |||||
Current liabilities | 32,154 | 83,994 | |||||
Long term debt | - | 5,513 | |||||
Non-current operating lease liabilities | 19,855 | 23,007 | |||||
Other long term liabilities | 1,209 | 2,240 | |||||
Discontinued operations | - | 3,796 | |||||
Total liabilities | 53,218 | 118,550 | |||||
Preferred stock, 2,500 shares authorized, | |||||||
issued and outstanding at | - | - | |||||
respectively | |||||||
Common stock, 20,000 shares authorized, | |||||||
4,005 shares issued: 3,286 and 3,293 shares outstanding at | |||||||
4 | 4 | ||||||
Additional paid-in capital | 11,901 | 11,449 | |||||
Retained earnings | 73,211 | 81,205 | |||||
and | (9,517 | ) | (9,410 | ) | |||
Accumulated other comprehensive income | (2,969 | ) | (5,408 | ) | |||
Shareholders' equity | 72,630 | 77,840 | |||||
Total liabilities and shareholders' equity | $ | 125,848 | $ | 196,390 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
For the Year Ended | |||||||
2024 | 2023 | ||||||
Operating activities: | |||||||
Net loss | $ | (4,708 | ) | $ | (63 | ) | |
Adjustments to reconcile net income to net cash | |||||||
provided by (used in) operating activities: | |||||||
Depreciation and amortization | 2,656 | 3,796 | |||||
Loss on disposal of businesses | 9,278 | 285 | |||||
Loss on sale of property | 34 | (14 | ) | ||||
Gain from insurance recoveries | (134 | ) | - | ||||
Proceeds from settlement of insurance claims | 537 | 911 | |||||
Impairment of right of use operating lease asset | 1,221 | - | |||||
Other non-cash adjustments | 317 | (71 | ) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 5,098 | 5,593 | |||||
Inventories | 21,295 | 14,469 | |||||
Prepaid expenses and other assets | 4,568 | 6,809 | |||||
Trade accounts payable and accrued liabilities | (10,682 | ) | (31,787 | ) | |||
Net cash provided by (used in) operating activities | 29,480 | (72 | ) | ||||
Investing activities: | |||||||
Capital expenditures | (3,808 | ) | (4,994 | ) | |||
Proceeds from sale of businesses | 32,842 | - | |||||
Proceeds from sale of property | 108 | 1,413 | |||||
Proceeds from sale of equity investment | - | 209 | |||||
Proceeds from settlement of insurance claims | 285 | - | |||||
Net cash provided by (used in) investing activities | 29,427 | (3,372 | ) | ||||
Financing activities: | |||||||
Net borrowings (repayments) under lines of credit | (30,549 | ) | 6,368 | ||||
Net repayments of term loan facilities | (7,250 | ) | (709 | ) | |||
Purchase of treasury stock | (227 | ) | (249 | ) | |||
Principal payments on finance leases | (108 | ) | (112 | ) | |||
Dividends paid | (3,286 | ) | - | ||||
Net cash provided by (used in) financing activities | (41,420 | ) | 5,298 | ||||
Effect of exchange rate changes on cash | (114 | ) | (61 | ) | |||
Net increase in cash | 17,373 | 1,793 | |||||
Cash at beginning of period | 3,060 | 1,055 | |||||
Cash at beginning of the period from discontinued operations | 1,936 | 2,148 | |||||
Cash at end of period | $ | 22,369 | $ | 4,996 | |||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
(In thousands, except shares data) | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Retained | Comprehensive | Shareholders' | |||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Income | Equity | ||||||||||||||||||||
Balance at | - | $ | - | 4,005,370 | $ | 4 | $ | 11,449 | $ | 81,268 | $ | (9,1 | ) | $ | (4,195 | ) | $ | 79,402 | ||||||||||
Net loss | (63 | ) | (63 | ) | ||||||||||||||||||||||||
Unrealized currency translation adjustments | (1,213 | ) | (1,213 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | (286 | ) | (286 | ) | ||||||||||||||||||||||||
Balance at | - | $ | - | 4,005,370 | $ | 4 | $ | 11,449 | $ | 81,205 | $ | (9,410 | ) | $ | (5,408 | ) | $ | 77,840 | ||||||||||
Net loss | (4,708 | ) | (4,708 | ) | ||||||||||||||||||||||||
Reclassification of currency translation adjustments to earnings | 2,376 | 2,376 | ||||||||||||||||||||||||||
Unrealized currency translation adjustments | 63 | 63 | ||||||||||||||||||||||||||
Purchase of treasury stock | (107 | ) | (107 | ) | ||||||||||||||||||||||||
Stock-based compensation expense | 452 | 452 | ||||||||||||||||||||||||||
Dividends paid | (3,286 | ) | (3,286 | ) | ||||||||||||||||||||||||
Balance at | - | $ | - | 4,005,370 | - | $ | 4 | $ | 11,901 | $ | 73,211 | $ | (9,517 | ) | $ | (2,969 | ) | $ | 72,630 | |||||||||
Source:
2024 GlobeNewswire, Inc., source