On November 9, 2023, Perimeter Solutions SA (PRM, Financial), a leader in firefighting products and specialty chemicals, disclosed its financial results for the third quarter ending September 30, 2023. The company experienced a downturn in both its Fire Safety and Specialty Products segments, leading to an overall decline in financial performance compared to the previous year.
Income Statement Highlights
Perimeter Solutions SA reported net sales of $142.7 million in Q3 2023, marking an 11% decrease from $160.5 million in the prior-year quarter. The Fire Safety segment's sales dipped by 3% to $118.3 million, while the Specialty Products segment faced a more pronounced decline of 37%, bringing in just $24.4 million. Net income saw a significant drop to $19.3 million, or $0.12 per diluted share, compared to $106.2 million, or $0.60 per diluted share, in Q3 2022. Adjusted EBITDA also decreased by 19% to $61.5 million.
Year-to-Date Financials
Year-to-date figures further underscore the challenges faced by Perimeter Solutions SA, with net sales falling 18% to $262.7 million. Net income for the year-to-date period was $80.7 million, a decrease of $71.4 million from the prior year. Adjusted EBITDA for the same period was down by 31% to $85.6 million.
Balance Sheet and Cash Flow Statement
The balance sheet as of September 30, 2023, showed total assets of $2.36 billion, with current assets including $71.8 million in cash and cash equivalents. Total liabilities stood at $1.18 billion, with long-term debt accounting for a significant portion at $666.2 million. Shareholders' equity was reported at $1.18 billion. The cash flow statement revealed net cash used in operating activities at $10.2 million for the nine months ended September 30, 2023.
Management Commentary
Perimeter Solutions SA's management has not provided direct commentary in the earnings release. However, the financial results reflect the impact of a greater than 40% year-to-date decline in U.S. acres burned, excluding Alaska, which has affected the Fire Safety segment. The Specialty Products segment continues to face inventory destocking pressures.
Conference Call and Webcast Details
The company will hold a conference call to discuss the Q3 2023 financial results, providing an opportunity for investors to gain further insights into the performance and strategies moving forward. Interested parties can access the call and accompanying slide presentation through the Investor Relations page on Perimeter's website.
Perimeter Solutions SA's Q3 2023 earnings report presents a challenging period for the company, with significant declines in sales and profitability. The results highlight the volatility inherent in industries dependent on external factors such as wildfire prevalence. Investors and stakeholders will be looking to the management's strategies to navigate these headwinds and drive future growth.
Explore the complete 8-K earnings release (here) from Perimeter Solutions SA for further details.
