...October 3, 2024 Weber LLC 's operating performance is improving but remains weak, and its capital structure remains unsustainable. The company's S&P Global Ratings adjusted EBITDA turned positive in 2024 following two years of negative EBITDA generation. In addition, the company's last-12- month (LTM) revenue ended June 30, 2024, has grown by 11.4%, compared to the steep double digits decline in the two previous years. As such, we believe the worst of the post-COVID-19 demand shock for Weber is largely behind it. However, operating performance remains very weak, we expect EBITDA interest coverage ratio will remain below 1x and free operating cash flow (FOCF) generation to continue to be negative over the next 12 months. The company's revolver will become current on Oct. 30, which may pressure its liquidity. The company has approximately $70 million of borrowing outstanding under its revolving credit facility as the end of its third quarter ended June 30, 2024. If the revolver becomes current,...
