FGI Industries reports Q2 adjusted EPS 1c vs. 10c last year

Reports Q2 revenue $29.2M vs. $47.8M last year. “While uneven demand trends and inventory headwinds pressured results, we maintained our focus on the long-term and made important progress on our growth and margin initiatives during Q2,” stated David Bruce, CEO. “We continued to execute on our recently announced growth initiatives and added several new awards and programs during the second quarter, including a new licensing agreement that should drive incremental growth in our sanitaryware business, as well as new sales programs that will allow us to expand our footprint into India and Eastern Europe in the coming quarters, all of which should put FGI in a strong position to return to organic growth as industry conditions normalize.” “Our strict financial discipline and focus on working capital management enabled us to maintain a strong financial position at the end of the second quarter despite the supply chain and inventory challenges of the past year,” stated Perry Lin, CFO. “We ended the second quarter with a cash balance of nearly $7.0M, which, combined with our borrowing capacity, resulted in total liquidity of $22.6M, providing us with the financial flexibility to support our organic growth initiatives and ability to pursue strategic M&A.” “We have successfully executed on our strategic growth initiatives during the first half of 2023, and I remain extremely confident in our longer-term positioning; however, the uneven market demand in our sales geographies and conservative inventory positioning from key customers is prolonging the de-stocking pressures and proving to be a more significant headwind than we anticipated at the start of the year,” continued Bruce. “As a result, we now expect full-year 2023 revenues of $120 million to $130 million, adjusted operating income of $3.5 million to $5.0 million and adjusted net income of $2.0 million to $3.0 million.”