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Shoals Technologies Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $102,165,000, a 24% decline from the same quarter in the previous year. This decrease is attributed primarily to lower sales volumes resulting from solar project delays and competitive dynamics.
Cost of revenue decreased by 36% to $76,789,000, leading to a gross profit of $25,376,000, which represents an increase in gross profit percentage to 24.8% compared to 10.5% in the previous year.
Operating expenses decreased by 16% to $20,852,000, with general and administrative expenses declining due to reduced equity-based compensation and lower bonus expenses.
Interest expense decreased by 48% to $3,088,000, attributed to reduced outstanding balances and lower borrowing rates following amendments to the Senior Secured Credit Agreement.
The company reported a net loss of $267,000 for the quarter, compared to a net loss of $9,828,000 in the previous year. The effective tax rate increased due to discrete items including RSU and PSU shortfalls.
As of September 30, 2024, Shoals had $11,106,000 in cash and cash equivalents, down from $22,707,000 at the end of 2023. The company also had $141,750,000 in outstanding borrowings under its Revolving Credit Facility.
Shoals Technologies Group announced a share repurchase program authorizing up to $150,000,000 in repurchases, with $25,000,000 already repurchased under an accelerated share repurchase agreement.
The company continues to face challenges related to the wire insulation shrinkback issue, with adjustments made to the estimated range of potential loss. Legal proceedings against the wire supplier are ongoing.
The filing also notes the impact of macroeconomic conditions, including inflation and interest rates, on the company's operations and financial results.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Shoals Technologies Group Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.