Tue, Nov 12, 2:41 PM (249 days ago)
For the quarter ended September 30, 2024, Perimeter Solutions, SA (NYSE: PRM) reported a significant increase in net sales to $288,417,000, up 102% from $142,658,000 in the same period last year. The Fire Safety segment drove this growth, with sales rising by $133,600,000, supported by increased demand for fire retardants amid heightened wildfire activity. However, the company incurred a net loss of $89,167,000, influenced by a substantial increase in founders advisory fees related to share price appreciation, totaling $184,176,000. Operating expenses surged to $216,461,000, primarily due to the aforementioned advisory fees and increased selling, general, and administrative costs. Cash flow from operations improved dramatically to $194,375,000, contrasting with a cash outflow of $10,234,000 in the prior year. The company ended the quarter with $223,053,000 in cash and cash equivalents, indicating strong liquidity. Looking ahead, Perimeter Solutions acknowledges potential risks from inflationary pressures and fluctuating demand due to climate conditions. The company is also pursuing growth through strategic acquisitions and expanding its fire safety offerings. Overall, while the revenue growth is promising, the substantial losses and rising operational costs present challenges for future profitability.