Yesterday, $PRM reported year-end results. This thread is going to focus on total year results and future forecasts due to Q4 being the “offseason” for fires. I found multiple very encouraging things in their results and earnings call.

The total number of acres burnt in 2021 decreased 30%, yet, Perimeter Solutions fire safety revenue increased 7% for the year. This shows their extreme pricing power and shows the potential growth during a strong fire season. Also, management talked about phosphate, a key input to flammable retardant, which has experienced significant inflation. Management

stated, “We expect to be able to recover all of our increased costs as well.” This is another example of their strong pricing power.

Management also gave very encouraging clarity around expected growth for 2022. “Assuming a roughly on-trend line 2022 fire season … we expect consolidated adjusted EBITDA growth consistent with, and perhaps above our long-term framework of mid-teens growth.”

In regards to oil additives “We’re encouraged by our initial findings in the oil additives segment and believe we’re likely to see some upside in 2022 relative to our expectation of flat revenue and adjusted EBITDA.” While the oil additives segment is much less important, it is still nice to see some upside. Overall, I thought it was a very positive report from management and I believe the long-term bull case has been strengthened.