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Symbotic 8-K/A Report, Financial Results (Nov 27, 2024)

Reports
Earnings & Results·Financial Events·Exhibits & Filings
Filing Date
Filed November 27, 2024
Period End
November 18, 2024
Security
SYM
In the record · 2021–202610-K510-Q238-K51

SYM filed 5 annual reports (10-K), 23 quarterly reports (10-Q) and 51 current reports (8-K) between 2021 and 2026.

  1. Restatement8-K · Nov ’21Nov ’21
  2. Leadership change8-K · Nov ’22Nov ’22
  3. Leadership change8-K · Mar ’24Mar ’24
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K/A filed November 27, 2024. Cited figures are marked; the original filing is the authoritative source.

Symbotic Inc. (Nasdaq: SYM) filed an amended Form 8-K/A on November 27, 2024 to disclose that its fourth quarter and fiscal year 2024 results, issued November 18, 2024, should no longer be relied upon.

The company is restating its previously issued unaudited interim financial statements for the first, second and third quarters of fiscal 2024, which were filed in Forms 10-Q on February 8, 2024, May 7, 2024 and July 31, 2024. The restatement stems from goods and services, primarily tied to specific milestone achievements, being expensed before the corresponding milestones were achieved. Because revenue is recognized on a percentage of completion basis, this accelerated recognition of both cost of revenue and revenue.

A further error was identified on November 25, 2024 involving revenue recognition on cost overruns on certain deployments that will not be billable, which also affected system revenue, income (loss) before income tax, net income (loss) and gross margin in the second, third and fourth quarters of fiscal 2024. The company estimates that correcting these errors will lower system revenue, system gross profit, income (loss) before income tax, and adjusted EBITDA by $30 million to $40 milliona for fiscal 2024 compared with the November 18, 2024 results. Symbotic also revised its first quarter of fiscal 2025 outlook to revenue of $480 million to $500 million and adjusted EBITDA of $12 million to $16 million.

The company delayed its Form 10-K for fiscal 2024 by filing a Notification of Late Filing on Form 12b-25 and expects to file the 10-K and amended 10-Qs within the fifteen-calendar-day extension period. Management has identified certain material weaknesses in its preliminary assessment of internal control over financial reporting for fiscal 2024 and is implementing remediation measures. The Audit Committee discussed these matters with Grant Thornton LLP, the company's independent registered public accounting firm, before making its recommendation.

02—Key points

Key Highlights

  1. Fiscal 2024 fourth quarter and full-year results released November 18, 2024 can no longer be relied upon, and the company will correct them in its Form 10-K.
  2. Restatement of unaudited interim financial statements for Q1, Q2 and Q3 of fiscal 2024, previously filed in Forms 10-Q on February 8, May 7 and July 31, 2024.
  3. Root cause of the first error: goods and services, primarily tied to specific milestones, were expensed before milestones were achieved, accelerating cost of revenue and, under percentage-of-completion accounting, revenue.
  4. Second error identified November 25, 2024: revenue recognition on cost overruns on certain deployments that will not be billable, affecting Q2 through Q4 of fiscal 2024.
  5. Estimated reduction of $30 million to $40 million to fiscal 2024 system revenue, system gross profit, income (loss) before income tax, and adjusted EBITDA versus the November 18, 2024 results.
  6. First quarter fiscal 2025 outlook revised to revenue of $480 million to $500 million and adjusted EBITDA of $12 million to $16 million.
  7. Form 10-K for fiscal 2024 delayed; management identified material weaknesses in internal control over financial reporting and is implementing remediation.

03—Questions

Frequently Asked Questions

  1. Why are Symbotic's fiscal 2024 results no longer reliable?

    The company identified that goods and services, primarily tied to specific milestone achievements, were expensed before the milestones were achieved. Because it recognizes revenue on a percentage of completion basis, this accelerated both cost of revenue and revenue. A later error involving cost overruns on certain non-billable deployments further affected system revenue, income (loss) before income tax, net income (loss) and gross margin for fiscal 2024 quarters two through four.

  2. How large are the corrections to fiscal 2024 financial results?

    The company estimates that correcting the errors will lower system revenue, system gross profit, income (loss) before income tax, and adjusted EBITDA by $30 million to $40 million for fiscal 2024 compared with the results released on November 18, 2024.

  3. What is the updated outlook for the first quarter of fiscal 2025?

    Symbotic now expects first quarter fiscal 2025 revenue of $480 million to $500 million and adjusted EBITDA of $12 million to $16 million, reflecting its analysis of the affected deployments.

  4. When will the company file its delayed reports, and what internal control issues were identified?

    Symbotic filed a Notification of Late Filing on Form 12b-25 for its fiscal 2024 Form 10-K and expects to file the 10-K and amended interim 10-Qs on or before the expiration of the fifteen-calendar-day extension period. Management has identified certain material weaknesses in internal control over financial reporting in its preliminary assessment and is implementing measures to remediate them.

04—Continue

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