Trillion Energy Announces Debt Settlements
In connection with the Debt Settlement, a total of 573,002 common shares of the Company are being issued for certain management services from an officer of the Company (the "Insider Settlement").
The Insider Settlement is considered a 'related-party transaction' within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101'). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the Debt Settlement based on that the fair market value of such insider participation does not exceed 25% of the Company's market capitalization.
About the Company
Trillion Energy International Inc is focused on oil and natural gas production for Europe and Türkiye with natural gas assets in Türkiye. The Company is 49% owner of the SASB natural gas field, a Black Sea natural gas development and a 19.6% (except three wells with 9.8%) interest in the Cendere oil field. More information may be found on www.sedarplus.ca, and our website.
Contact Sean Stofer, ChairmanBrian Park, VP of Finance1-778-819-1585E-mail: info@trillionenergy.comWebsite: www.trillionenergy.com
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company's ability to obtain regulatory approval of the executive officer and director appointments. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Trillion does not undertake to update any forward-looking information except in accordance with applicable securities laws.
These statements are no guarantee of future performance and are subject to certain risks, uncertainties, delay, change of strategy, and assumptions that are difficult to predict and which may change over time. Accordingly, actual results and strategies could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, changes in capital raising strategies, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may increase and be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company's filings on www.sedar.com, including the most recently filed Annual Report on Form 20-F and subsequent filings. For a full summary of our oil and gas reserves information for Turkey, please refer to our Forms F-1,2,3 51-101 filed on www.sedarplus.ca, and or request a copy of our reserves report effective December 31, 2023 and filed on April 25, 2024.
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25 minutes ago
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Empire Petroleum Reports Results for Second Quarter 2025 and Demonstrates Operational Momentum
TULSA, Okla.--(BUSINESS WIRE)-- Empire Petroleum (NYSE American: EP) ('Empire' or the 'Company'), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today reported operational and financial results for the second quarter 2025. SECOND QUARTER 2025 HIGHLIGHTS Produced Q2-2025 net production volumes of 2,357 barrels of oil equivalent per day ('Boe/d'), an increase of 15% compared to Q1-2025; Reported 1,493 barrels of oil per day ('Bbls/d'); Boe/d is comprised of 63% oil, 19% natural gas liquids ('NGLs'), and 18% natural gas; As part of Empire's Enhanced Oil Recovery ('EOR') efforts in the Starbuck Drilling Program ('Starbuck') in North Dakota, modified wellhead installations are underway and expected to be completed in Q3-2025, with advanced fabrication work progressing toward completion by year-end; While certain rare alloys and specialized materials for the EOR process remain in fabrication, production has continued to improve and operations are showing increased consistency; Installation of the modified rare alloys for the EOR units is expected to be completed and fully operational in Q4-2025; Empire expects to finalize the patented design specifications for its hydrocarbon vaporization technology by the end of Q4-2025, with the system leveraging elevated temperatures and pressure changes to enhance recovery efficiency; Empire made significant progress in preparing for its inaugural drilling campaign in Texas, completing its first drilling pad and preparing multiple locations for entry as part of its development plan; The Company also advanced critical pre-drill activities during Q2-2025, including surface land work, rig evaluation, and the permitting process, laying the groundwork for horizontal development across multiple prospective pay zones identified in the region; Empire expects drilling operations to commence in Q4-2025; Launched a subscription rights offering ('Rights Offering') with the intention to raise approximately $5.0 million in gross proceeds, including $2.5 million from the anticipated future exercise of the warrants issued as part of the Rights Offering, to provide shareholders the opportunity to increase their equity position; Each shareholder of record as of July 10, 2025, is entitled to purchase one unit at a subscription price equal to $0.07367 per unit, each unit consisting of 0.0139 shares of the Company's common stock and one rights warrant to purchase 0.0136 shares of the Company's common stock equal to $5.46 per whole share; Stockholders who fully exercise their subscription rights are entitled to oversubscribe for additional units, subject to availability and pro-rata allocation of units; As stated in previous filings, Phil E. Mulacek, Chairman of the Board and one of Empire's largest shareholders, has expressed his intent to fully subscribe to the units available through his subscription rights and to fully exercise his over-subscription rights to purchase his pro-rata share of any remaining unsubscribed securities at the offering's expiration; The Rights Offering is set to expire at 5:00 p.m., Eastern Time, on August 18, 2025, and proceeds are expected to be used for balance sheet optimization efforts and general corporate purposes; Reported Q2-2025 total product revenue of $8.7 million, a net loss of $5.1 million, or ($0.15) per diluted share, primarily driven by lower realized commodity prices, which included a 12% decrease in realized oil prices compared to Q1-2025 and a 23% decrease compared to Q2-2024; Despite a 15% increase in equivalent production compared to Q1-2025, the significant decline in realized commodity pricing drove lower financial results for the quarter; Adjusted EBITDA of ($1.2) million for Q2-2025. 2025 OUTLOOK 'While commodity prices were significantly under pressure (NYMEX oil prices down ~10% from Q1-2025 and down ~20% from Q2-2024) in the second quarter due to a mix of global market condition and seasonal factors, I believe this environment is temporary,' said Phil Mulacek, Chairman of the Board. 'Reported North American data shows that the oil well rig count is at post-COVID lows, compared to 2021 levels, while the hydraulic fracturing spread count is even lower at levels not seen since late 2020 through the end of 2021. These material market indicators should result in lower production going forward. Compounding this, U.S. production has already peaked and is approximately 250,000 barrels per day lower than the high earlier in 2025. This supports my strong belief that overall pricing is trending upward over the next four to six quarters. Over the next six to nine months, we anticipate a continued rebound that could increase our production levels. Empire is strategically positioned to benefit from this upswing with focused production increases. The Empire team continues to demonstrate disciplined planning and execution, placing the Company on a stronger path to lasting growth. My decision to fully subscribe and oversubscribe in the Rights Offering reflects my strong confidence in the Company's long-term potential.' Mike Morrisett, President and CEO, added, 'We were pleased to restore and maintain production across key assets during the second quarter, particularly in North Dakota. However, lower-than-expected commodity pricing impacted revenue and margins, offsetting our operational gains. We remain focused on executing our development plans and maintaining cost discipline as we position the Company to capitalize on a potential pricing recovery.' North Dakota – Williston Basin: Empire remains confident in the trajectory of its EOR program in the Starbuck region and expects to reach steady-state production levels by the end of Q4-2025, contingent on continued equipment reliability and seasonal operating stability; and With key infrastructure milestones nearing completion and EOR operations delivering steadily improving performance, the program is expected to support sustained production growth and improved asset performance over the long term. New Mexico – Permian Basin: After four years of expenditures, Empire anticipates receiving a ruling from the New Mexico Oil Conservation Commission ('NMOCD') in Q3-2025, regarding its applications to revoke four existing permits and deny five new applications for what the Company believes is the illegal disposal of wastewater into Eunice Monument South Unit's ('EMSU') Unitized Interval by the largest of the third-party Saltwater Disposal ('SWD') operators; Pending the NMOCD's decision, Empire plans to proceed with Motions to Revoke the existing permits granted to the remaining three SWD Companies disposing wastewater into the EMSU and Arrowhead Grayburg Unit ('AGU') Unitized Interval, while concurrently advancing litigation for trespass and damages; While litigation has limited the scope of development activity in the affected areas, production from the EMSU and AGU units has increased in recent months, reflecting ongoing optimization efforts; and The Company expects final resolution of this matter to result in a meaningful reduction in operating expenses and contribute to improved financial performance going forward. Texas – East Texas Basin: Empire remains on track to initiate drilling operations in Q4-2025, as part of its broader development strategy in the region; The upcoming program is designed to target multiple prospective pay zones identified during technical evaluation, with a focus on horizontal development opportunities that support long-term, capital-efficient production; The Company expects this activity to establish a foundation for scalable development throughout 2026 and beyond; As of the first week of August 2025, the first drilling pad has been completed, and the Company is actively securing materials, equipment, rigs, and other necessary resources to begin and conclude drilling operations on the initial wells in Q4-2025; and The production targets associated with these wells are expected to deliver the most significant impact to Empire's portfolio to date. SECOND QUARTER 2025 FINANCIAL AND OPERATIONAL RESULTS Net sales volumes for Q2-2025 were 2,357 Boe/d, including 1,493 barrels of oil per day; 430 barrels of NGLs per day, and 2,606 thousand cubic feet per day ('Mcf/d') or 434 Boe/d of natural gas. Oil sales volumes decreased approximately 15% compared to Q2-2024 primarily due to redrilling efforts in North Dakota and natural decline. Empire reported Q2-2025 total product revenue of $8.7 million versus $12.8 million in Q2-2024. Contributing to the decrease were lower oil sales volumes and lower realized oil and NGL prices. Realized oil and natural gas liquids prices decreased 23% and 14%, respectively, due to a general decline in overall market pricing. Lease operating expenses in Q2-2025 decreased to $6.4 million versus $7.5 million in Q2-2024 primarily due to lower workover costs. Q2-2025 workover expense decreased to $0.5 million versus $1.6 million in Q2-2024. Higher workover expense in 2024 was primarily in New Mexico as Empire continued work in the region to enhance and maintain production. Production and ad valorem taxes for Q2-2025 were $0.8 million versus $1.1 million in Q2-2024, as a result of lower product revenues. Depreciation, Depletion, and Amortization ('DD&A') and Accretion for Q2-2025 was $3.1 million versus $3.2 million for Q2-2024. The decrease in DD&A is primarily due to lower production volumes partially offset by the acquisition of additional working interest in New Mexico and the impact of the capitalized costs associated with the new drilling as part of Empire's Starbuck Drilling Program in North Dakota. Accretion increased slightly due to the new drilling activity and acquisition of working interest in New Mexico. General and administrative expenses, excluding share-based compensation expense, was $2.9 million, or $13.55 per Boe in Q1-2025 versus $2.4 million, or $9.80 per Boe in Q2-2024. The increase in expenses was primarily due to an increase in salaries and benefits associated with an increase in employee headcount. Interest expense for Q2-2025 slightly decreased, compared to Q2-2024, primarily due to certain non-cash interest expense in Q2-2024 from the convertible promissory note partially offset by a higher average outstanding balance on the Company's credit facility. Empire recorded a net loss of $5.1 million in Q2-2025, or ($0.15) per diluted share, versus a Q2-2024 net loss of $4.4 million, or ($0.15) per diluted share. Adjusted EBITDA was ($1.2) million for Q2-2025 compared to Adjusted EBITDA of $1.7 million in Q2-2024. CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY For the six months ended June 30, 2025, Empire invested approximately $3.3 million in total capital expenditures, primarily from finalizing drilling and completions activity related to the Starbuck Drilling Program in North Dakota and continued return-to-production efforts in Texas. As of June 30, 2025, Empire had approximately $2.3 million in cash on hand and approximately $4.0 million available on its credit facility. Empire is scheduled to complete a subscriptions rights offering in August 2025, which is expected to raise approximately $5.0 million of gross proceeds. UPDATED PRESENTATION An updated Company presentation will be posted to the Company's website under the Investor Relations section. ABOUT EMPIRE PETROLEUM Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with their existing portfolio of wells. More information about Empire can be found at SAFE HARBOR STATEMENT This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company's estimates, strategy, and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, future commodity prices, the Company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, including inflation, tariffs and interest rates, uncertainties associated with legal and regulatory matters, successful completion of the Rights Offering, including future exercise of the warrants issued as part of the Rights Offering, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise. EMPIRE PETROLEUM CORPORATION Condensed Operating Data (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 Net Sales Volumes: Oil (Bbl) 135,854 119,635 160,283 255,489 291,043 Natural gas (Mcf) 237,133 199,868 241,242 437,001 453,063 Natural gas liquids (Bbl) 39,091 31,453 39,612 70,544 74,397 Total (Boe) 214,467 184,400 240,102 398,867 440,951 Average daily equivalent sales (Boe/d) 2,357 2,049 2,638 2,204 2,423 Average Price per Unit: Oil ($/Bbl) $ 58.92 $ 67.28 $ 76.66 $ 62.84 $ 74.66 Natural gas ($/Mcf) $ 0.93 $ 2.74 $ (0.48 ) $ 1.76 $ 0.58 Natural gas liquids ($/Bbl) $ 13.33 $ 12.56 $ 15.58 $ 12.98 $ 13.89 Total ($/Boe) $ 40.78 $ 48.76 $ 53.26 $ 44.47 $ 52.21 Operating Costs and Expenses per Boe: Lease operating expense $ 29.78 $ 31.27 $ 31.42 $ 30.47 $ 33.86 Production and ad valorem taxes $ 3.58 $ 3.86 $ 4.44 $ 3.71 $ 4.31 Depreciation, depletion, amortization and accretion $ 14.50 $ 14.92 $ 13.20 $ 14.70 $ 11.67 General & administrative expense: General & administrative expense (excluding stock-based compensation) $ 13.55 $ 17.34 $ 9.80 $ 15.30 $ 11.87 Stock-based compensation $ 2.27 $ 2.88 $ 2.47 $ 2.55 $ 2.95 Total general & administrative expense $ 15.82 $ 20.22 $ 12.27 $ 17.85 $ 14.82 Expand EMPIRE PETROLEUM CORPORATION Condensed Consolidated Balance Sheets (in thousands, except share data) (Unaudited) June 30, December 31, 2025 2024 ASSETS Current Assets: Cash $ 2,293 $ 2,251 Accounts Receivable 10,167 8,155 Inventory 1,303 1,305 Prepaids 756 640 Total Current Assets 14,519 12,351 Property and Equipment: Oil and Natural Gas Properties, Successful Efforts 144,008 140,675 Less: Accumulated Depletion, Amortization and Impairment (36,583 ) (31,974 ) Total Oil and Gas Properties, Net 107,425 108,701 Other Property and Equipment, Net 1,484 1,391 Total Property and Equipment, Net 108,909 110,092 Other Noncurrent Assets 1,231 1,425 TOTAL ASSETS $ 124,659 $ 123,868 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 11,935 $ 10,452 Accrued Expenses 11,402 10,348 Current Portion of Lease Liability 300 400 Current Portion of Note Payable - Related Party 2,000 - Current Portion of Long-Term Debt 530 70 Total Current Liabilities 26,167 21,270 Long-Term Debt 14,627 11,266 Long-Term Lease Liability 39 144 Asset Retirement Obligations 29,321 28,423 Total Liabilities 70,154 61,103 Stockholders' Equity: Series A Preferred Stock - $0.001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively - - Common Stock - $0.001 Par Value, 190,000,000 Shares Authorized, 33,756,595 and 33,667,132 Shares Issued and Outstanding, Respectively 93 93 Additional Paid-in-Capital 144,506 143,489 Total Stockholders' Equity 54,505 62,765 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 124,659 $ 123,868 Expand EMPIRE PETROLEUM CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 Cash Flows from Operating Activities: Net Loss $ (5,056 ) $ (4,221 ) $ (4,390 ) (9,277 ) $ (8,364 ) Adjustments to Reconcile Net Loss to Net Cash (Used In) Provided By Operating Activities: Stock-Based Compensation 486 531 592 1,017 1,302 Amortization of Right-of-Use Assets 120 121 136 241 271 Depreciation, Depletion and Amortization 2,576 2,226 2,677 4,802 4,167 Accretion of Asset Retirement Obligations 534 526 492 1,060 977 Loss on Commodity Derivatives - - 1 - 859 Settlement on or Purchases of Derivative Instruments - - (253 ) - (263 ) Loss on Financial Derivatives - - 1,736 - 998 Amortization of Debt Discount on Convertible Notes - - 500 - 500 Gain on Extinguishment of Debt - - (17 ) - (17 ) Gain on Sale of Oil and Natural Gas Properties (175 ) - - (175 ) - Gain on Sale of Other Fixed Assets - (32 ) - (32 ) - Change in Operating Assets and Liabilities: Accounts Receivable (2,291 ) 279 (1,694 ) (2,012 ) (630 ) Inventory, Oil in Tanks 200 (199 ) 346 1 (18 ) Prepaids, Current 331 94 463 425 460 Accounts Payable (355 ) 1,676 (2,484 ) 1,321 1,855 Accrued Expenses 455 599 668 1,054 1,030 Other Long Term Assets and Liabilities 37 13 (574 ) 50 (1,021 ) Net Cash (Used In) Provided By Operating Activities (3,138 ) 1,613 (1,801 ) (1,525 ) 2,106 Cash Flows from Investing Activities: Disposal of Oil and Natural Gas Properties 175 - - 175 - Additions to Oil and Natural Gas Properties (491 ) (2,680 ) (13,202 ) (3,171 ) (30,143 ) Disposal of Other Fixed Assets - 49 - 49 - Purchase of Other Fixed Assets (23 ) (18 ) (89 ) (41 ) (120 ) Cash Paid for Right-of-Use Assets (111 ) (113 ) (125 ) (224 ) (251 ) Net Cash Used In Investing Activities (450 ) (2,762 ) (13,416 ) (3,212 ) (30,514 ) Cash Flows from Financing Activities: Borrowings on Credit Facility 3,000 - - 3,000 3,950 Proceeds from Promissory Note - Related Party 2,000 - - 2,000 5,000 Proceeds from Rights Offering, net of transaction costs - - 20,512 - 20,512 Principal Payments of Debt (200 ) (21 ) (157 ) (221 ) (218 ) Net Proceeds from Warrant Exercise - - 629 - 629 Net Cash Provided By (Used In) Financing Activities 4,800 (21 ) 20,984 4,779 29,873 Net Change in Cash 1,212 (1,170 ) 5,767 42 1,465 Cash - Beginning of Period 1,081 2,251 3,491 2,251 7,793 Expand Empire Petroleum Corporation Non-GAAP Information Certain financial information included in Empire's financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include 'Adjusted Net Loss', 'EBITDA' and 'Adjusted EBITDA'. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Adjusted net loss is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods. The Company defines adjusted EBITDA as net loss plus net interest expense, DD&A, accretion, amortization of right of use assets, income tax provision (benefit), and other adjustments. Company management believes this presentation is relevant and useful because it helps investors understand Empire's operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income (loss), as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, adjusted EBITDA does not represent funds available for discretionary use.


Business Wire
25 minutes ago
- Business Wire
Adagio Medical Reports Second Quarter 2025 Results
LAGUNA HILLS, Calif.--(BUSINESS WIRE)--Adagio Medical Holdings, Inc. (Nasdaq: ADGM) ('Adagio' or 'the Company'), a leading innovator in catheter ablation technologies for the treatment of cardiac arrhythmias, today announced financial results for the second quarter ended June 30, 2025. Recent Business Highlights: Surpassed 85% enrollment in the FULCRUM-VT pivotal study of the Company's vCLAS™ Cryoablation System. The study, which seeks to enroll 206 patients with either ischemic or non-ischemic drug-refractory, recurrent, sustained monomorphic ventricular tachycardia ('VT') at 20 U.S. and Canadian centers, is on track for completion of patient enrollment in the second half of 2025 First-in-human results from the PARALELL study, which evaluated the safety and effectiveness of Adagio's Pulsed Field Cryoablation ('PFCA'), a novel, dual-energy cardiac ablation modality combining Pulsed Field Ablation (PFA) with Adagio's proprietary Ultra-Low Temperature Cryoablation ('ULTC'), were published in the Journal of Cardiovascular Electrophysiology Reduced cash burn quarter-over-quarter as a result of the Company's corporate prioritization initiative, which streamlined operations and focused resources on highest-value programs 'In the second quarter we saw continued strong momentum in the enrollment of our FULCRUM-VT study, which we believe validates the market need for our purpose-built technology and brings us one step closer to offering our proprietary ULTC solutions to patients in the United States who suffer from ventricular tachycardia,' said Todd Usen, Chief Executive Officer of Adagio. 'The team also made meaningful progress in advancing our pipeline through the continued development of our next-generation product, which is designed to improve usability for physicians while further enhancing the capabilities of our differentiated ULTC platform.' Second Quarter 2025 Financial Results Cost of revenue was $0.3 million for the three months ended June 30, 2025, compared to $0.7 million for the three months ended June 30, 2024. Research and development expenses were $2.0 million for the three months ended June 30, 2025 compared to $2.9 million for the three months ended June 30, 2024 Selling, general and administrative expenses were $2.4 million for the three months ended June 30, 2025, compared to $3.4 million for the three months ended June 30, 2024. Net loss for the three months ended June 30, 2025, was $3.9 million, or $(0.26) per share (Basic), compared to a net loss of $5.7 million, or $(7.35) per share (Basic), for the three months ended June 30, 2024. Reported cash and cash equivalents of $8.2 million as of June 30, 2025. About Adagio Medical Holdings, Inc. Adagio is a medical device company focused on developing and commercializing products for the treatment of cardiac arrhythmias utilizing its novel, proprietary, catheter-based Ultra-Low Temperature Cryoablation (ULTC) technology. ULTC is designed to create large, durable lesions extending through the depth of both diseased and healthy cardiac tissue. The Company is currently focused on the treatment of ventricular tachycardia (VT) with its purpose-built vCLAS™ Cryoablation System, which is CE Marked and is currently under evaluation in the Company's FULCRUM-VT U.S. IDE Pivotal Study. About FULCRUM VT FULCRUM-VT (Feasibility of Ultra-Low Temperature Cryoablation in Recurring Monomorphic Ventricular Tachycardia) is a prospective, multi-center, open-label, single-arm study, enrolling 206 patients with structural heart disease of both ischemic and non-ischemic cardiomyopathy, indicated for catheter ablation of drug refractory VT in accordance with current treatment guidelines. The results of the study will be used to apply for FDA premarket approval (PMA) for Adagio's vCLAS™ Cryoablation System, potentially leading to the broadest industry indication for purely endocardial ablation of scar-mediated VT. Adagio's vCLAS™ Cryoablation System is commercially available for the treatment of monomorphic ventricular tachycardia in Europe and select other geographies but is limited to investigational use in the United States. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as 'anticipates,' 'believes,' 'expects,' 'intends,' 'projects,' 'plans,' and 'future' or similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning: the potential of Adagio's vCLAS™ Cryoablation System; Adagio's research, development and regulatory plans for its product candidates, including the timing of initiating additional trials and reporting data from its trials; the ability of Adagio to bring its proprietary ULTC solutions to patients in the United States who suffer from VT and their ability to improve usability for physicians; the potential for its product candidates to receive regulatory approval from the FDA or equivalent foreign regulatory agencies; and its current cash resources and the impacts of its corporate prioritization initiative and realignment of resources. Forward-looking statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding Adagio's business are described in detail in Adagio's Securities and Exchange Commission ('SEC') filings, including in its Annual Report on Form 10-K for the full-year ended December 31, 2024, which is available on the SEC's website at Additional information will be made available in other filings that Adagio makes from time to time with the SEC. These forward-looking statements speak only as of the date hereof, and Adagio disclaims any obligation to update these statements except as may be required by law.


Business Wire
25 minutes ago
- Business Wire
Kimball Electronics Reports Q4 Results With Solid Finish to the Fiscal Year; Company Provides Guidance for Fiscal 2026
JASPER, Ind.--(BUSINESS WIRE)--Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the fourth quarter and fiscal year ended June 30, 2025. Kimball Electronics reports Q4 results with solid finish to the fiscal year; company provides guidance for fiscal 2026. Share Three Months Ended Fiscal Year Ended June 30, June 30, (Amounts in Thousands, except EPS) 2025 2024 2025 2024 Net Sales $ 380,472 $ 430,158 $ 1,486,727 $ 1,714,510 Operating Income $ 16,474 $ 19,608 $ 45,535 $ 49,277 Adjusted Operating Income (non-GAAP) (1) $ 19,638 $ 22,694 $ 61,267 $ 81,496 Operating Income % 4.3 % 4.6 % 3.1 % 2.9 % Adjusted Operating Income (non-GAAP) % 5.2 % 5.3 % 4.1 % 4.8 % Net Income $ 6,581 $ 7,543 $ 16,984 $ 20,511 Adjusted Net Income (non-GAAP) (1) $ 8,438 $ 9,688 $ 28,156 $ 41,295 Diluted EPS $ 0.26 $ 0.30 $ 0.68 $ 0.81 Adjusted Diluted EPS (non-GAAP) (1) $ 0.34 $ 0.38 $ 1.12 $ 1.64 Expand (1) Beginning in the first quarter of fiscal year 2025, adjusted results exclude stock compensation expense. Prior reported periods have been revised accordingly. A reconciliation of GAAP and non-GAAP financial measures is included below. Expand Commenting on today's announcement, Richard D. Phillips, Chief Executive Officer, stated, 'I'm encouraged by the results for the fourth quarter and solid finish to the fiscal year. Q4 came in better than expected, as sales increased sequentially, margins improved, and working capital management drove our sixth consecutive quarter of positive cash flow which was used to pay down debt. Our balance sheet is now in a position of competitive strength with ample liquidity to weather an unpredictable environment, while providing dry powder for opportunistic investments.' Mr. Phillips continued, 'In total, fiscal 2025 was a year of 'controlling what we could control'. I'm proud of our team as we made significant progress positioning the Company for a return to profitable growth with a record number of wins for future business, adjusting the cost structure and aligning the portfolio to demand trends, and intensifying our focus as a medical CMO. We expect fiscal 2026 to be another step forward in the journey which will unfold over time.' The Company ended the fourth quarter of fiscal 2025 with cash and cash equivalents of $88.8 million and borrowing capacity of $291.7 million. The Company invested $3.0 million to repurchase 162,000 shares of common stock. Fiscal Year 2025 Highlights Net sales totaled $1,486.7 million, the third highest annual revenue total for the Company Operating income of $45.5 million, or 3.1% of net sales; adjusted operating income of $61.3 million, or 4.1% of net sales Inventory reduced $64.6 million, or 19%, in the fiscal year Debt paid down by $147.3 million, or 50%, year-over-year; the lowest level of debt in 3 years Cash generated from operating activities of $183.9 million, a record result for annual cash flow Invested $12.0 million to repurchase 653,000 shares of common stock Net Sales by Vertical Market for Q4 and Full Year Fiscal 2025: * As a percent of Total Net Sales (1) Sales from our Automation, Test, and Measurement business (AT&M), which was divested effective July 31, 2024, were previously included in the Industrial vertical ─ Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems ─ Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring ─ Industrial includes climate controls, automation controls, and public safety Expand 'Fiscal 2026 will be a year of transition. We expect modest top line growth in our medical and industrial businesses, but it will be offset by a decline in automotive, with a full year impact from the loss of the braking program in Reynosa. Margins are estimated to be in line with FY25, but it's important to note that when top line growth returns, enhancements to our cost structure should support margin improvement. Capital expenditures will be heavily weighted toward our new facility in Indianapolis, with the balance supporting growth, automation, and maintenance.' Jana T. Croom Chief Financial Officer Fiscal Year 2026 Guidance Net sales of $1,350 - $1,450 million, a 2% to 9% decrease compared to fiscal 2025 Adjusted operating income of 4.0% - 4.25% of net sales, compared to 4.1% of net sales in fiscal 2025 Capital expenditures of $50 - $60 million Forward-Looking Statements Certain statements contained within this release are considered forward-looking, including our guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as 'expect,' 'should,' 'goal,' 'predict,' 'will,' 'future,' 'optimistic,' 'confident,' and 'believe.' Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as the war in Ukraine, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2024. Non-GAAP Financial Measures This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, net sales excluding Automation, Test & Measurement, adjusted selling and administrative expenses, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company's core operations. The company's non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies. About Kimball Electronics, Inc. Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions to customers around the world. From our operations in the United States, China, Mexico, Poland, Romania, and Thailand, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana. To learn more about Kimball Electronics, visit Lasting relationships. Global success. Financial highlights for the fourth quarter and fiscal year ended June 30, 2025 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) June 30, 2025 June 30, 2024 Net Sales $ 380,472 100.0 % $ 430,158 100.0 % Cost of Sales 349,991 92.0 % 393,420 91.5 % Gross Profit 30,481 8.0 % 36,738 8.5 % Selling and Administrative Expenses 13,163 3.5 % 15,890 3.6 % Restructuring Expense 1,971 0.5 % 764 0.2 % Asset Impairment (Gain on Disposal) (1,127 ) (0.3 )% 476 0.1 % Operating Income 16,474 4.3 % 19,608 4.6 % Interest Income 196 0.1 % 155 — % Interest Expense (2,776 ) (0.7 )% (5,380 ) (1.3 )% Non-Operating Income (Expense), net (1,177 ) (0.4 )% (918 ) (0.2 )% Other Income (Expense), net (3,757 ) (1.0 )% (6,143 ) (1.5 )% Income Before Taxes on Income 12,717 3.3 % 13,465 3.1 % Provision for Income Taxes 6,136 1.6 % 5,922 1.3 % Net Income $ 6,581 1.7 % $ 7,543 1.8 % Earnings Per Share of Common Stock: Basic $ 0.27 $ 0.30 Diluted $ 0.26 $ 0.30 Average Number of Shares Outstanding: Basic 24,552 25,064 Diluted 24,840 25,246 Expand (Unaudited) Fiscal Year Ended (Amounts in Thousands, except Per Share Data) June 30, 2025 June 30, 2024 Net Sales $ 1,486,727 100.0 % $ 1,714,510 100.0 % Cost of Sales 1,382,323 93.0 % 1,574,253 91.8 % Gross Profit 104,404 7.0 % 140,257 8.2 % Selling and Administrative Expenses 50,270 3.4 % 66,626 4.0 % Other General Expense (Income) — — % (892 ) (0.1 )% Restructuring Expense 10,990 0.7 % 2,386 0.1 % Goodwill Impairment — — % 5,820 0.3 % Asset Impairment (Gain on Disposal) (2,391 ) (0.2 )% 17,040 1.0 % Operating Income 45,535 3.1 % 49,277 2.9 % Interest Income 771 0.1 % 638 — % Interest Expense (14,745 ) (1.0 )% (22,839 ) (1.3 )% Non-Operating Income (Expense), net (5,332 ) (0.4 )% (1,877 ) — % Other Income (Expense), net (19,306 ) (1.3 )% (24,078 ) (1.4 )% Income Before Taxes on Income 26,229 1.8 % 25,199 1.5 % Provision for Income Taxes 9,245 0.7 % 4,688 0.3 % Net Income $ 16,984 1.1 % $ 20,511 1.2 % Earnings Per Share of Common Stock: Basic $ 0.68 $ 0.82 Diluted $ 0.68 $ 0.81 Average Number of Shares Outstanding: Basic 24,782 25,079 Diluted 25,017 25,278 Expand Condensed Consolidated Statements of Cash Flows Fiscal Year Ended (Unaudited) June 30, (Amounts in Thousands) 2025 2024 Net Cash Flow provided by Operating Activities $ 183,937 $ 73,217 Net Cash Flow used for Investing Activities (14,700 ) (46,521 ) Net Cash Flow (used for) provided by Financing Activities (160,874 ) 8,974 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash 2,325 (755 ) Net Increase in Cash, Cash Equivalents, and Restricted Cash 10,688 34,915 Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 78,779 43,864 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 89,467 $ 78,779 Expand (Unaudited) Condensed Consolidated Balance Sheets June 30, 2025 June 30, 2024 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 88,781 $ 77,965 Receivables, net 222,623 282,336 Contract assets 71,812 76,320 Inventories 273,500 338,116 Prepaid expenses and other current assets 36,027 44,682 Assets held for sale 6,861 27,587 Property and Equipment, net 264,804 269,659 Goodwill 6,191 6,191 Other Intangible Assets, net 2,427 2,994 Other Assets, net 104,286 82,069 Total Assets $ 1,077,312 $ 1,207,919 LIABILITIES AND SHARE OWNERS ' EQUITY Current portion of long-term debt $ 17,400 $ 59,837 Accounts payable 218,805 213,551 Advances from customers 35,867 30,151 Accrued expenses 46,489 63,189 Liabilities held for sale — 8,594 Long-term debt, less current portion 129,650 235,000 Long-term income taxes payable — 3,255 Other long-term liabilities 59,217 53,881 Share Owners' Equity 569,884 540,461 Total Liabilities and Share Owners' Equity $ 1,077,312 $ 1,207,919 Expand Other Financial Metrics (Unaudited) (Amounts in Millions, except CCD) At or For the Three Months Ended June 30, March 31, June 30, 2025 2025 2024 Depreciation and Amortization $ 9.6 $ 9.2 $ 9.5 Cash Conversion Days (CCD) (1) 85 99 100 Open Orders (2) $ 702 $ 642 $ 714 Expand (1) Cash Conversion Days ('CCD') are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. (2) Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders. Expand Select Financial Results of Automation, Test and Measurement (Unaudited) (Amounts in Millions) Three Months Ended Fiscal Year Ended June 30, June 30, 2025 2024 2025 2024 Net Sales $ — $ 14.8 $ 2.1 $ 45.7 Operating Income (Loss) (1) $ 1.1 $ 2.0 $ 2.0 $ (22.2 ) Expand (1) Includes gain on sale of $1.1 million for the three months ended June 30, 2025 and $2.4 million for fiscal year 2025 following the close of the sale on July 31, 2024. Includes goodwill impairment of $5.8 million and asset impairment of $17.0 million for the year ended June 30, 2024. Each period also includes allocated corporate overhead expenses. Expand Reconciliation of Non-GAAP Financial Measures (Unaudited, Amounts in Thousands, except Per Share Data) Three Months Ended Fiscal Year Ended June 30, June 30, 2025 2024 2025 2024 Net Sales Growth (vs. same period in prior year) (12 )% (13 )% (13 )% (6 )% Foreign Currency Exchange Impact 1 % — % 1 % — % Constant Currency Growth (13 )% (13 )% (14 )% (6 )% Selling and Administrative Expenses, as reported $ 13,163 $ 15,890 $ 50,270 $ 66,626 Stock Compensation Expense (1,991 ) (1,750 ) (6,519 ) (7,185 ) SERP (329 ) (96 ) (614 ) (680 ) Adjusted Selling and Administrative Expenses $ 10,843 $ 14,044 $ 43,137 $ 58,761 Operating Income, as reported $ 16,474 $ 19,608 $ 45,535 $ 49,277 Stock Compensation Expense 1,991 1,750 6,519 7,185 SERP 329 96 614 680 Legal Settlements (Recovery) — — — (892 ) Restructuring Expense 1,971 764 10,990 2,386 Goodwill Impairment — — — 5,820 Asset Impairment (Gain on Disposal) (1,127 ) 476 (2,391 ) 17,040 Adjusted Operating Income $ 19,638 $ 22,694 $ 61,267 $ 81,496 Net Income, as reported $ 6,581 $ 7,543 $ 16,984 $ 20,511 Stock Compensation Expense, After-Tax 1,510 1,327 4,944 5,449 Legal Settlements (Recovery), After-Tax — — — (676 ) Restructuring Expense, After-Tax 1,474 580 8,314 1,810 Goodwill Impairment, After-Tax — — — 4,414 Asset Impairment (Gain on Disposal), After-Tax (1,127 ) 238 (2,086 ) 9,787 Adjusted Net Income $ 8,438 $ 9,688 $ 28,156 $ 41,295 Diluted Earnings per Share, as reported $ 0.26 $ 0.30 $ 0.68 $ 0.81 Stock Compensation Expense 0.06 0.05 0.19 0.22 Legal Settlements (Recovery) — — — (0.03 ) Restructuring Expense 0.06 0.02 0.33 0.07 Goodwill Impairment — — — 0.18 Asset Impairment (Gain on Disposal) (0.04 ) 0.01 (0.08 ) 0.39 Adjusted Diluted Earnings per Share $ 0.34 $ 0.38 $ 1.12 $ 1.64 Fiscal Year Ended June 30, 2025 2024 Operating Income $ 45,535 $ 49,277 Goodwill Impairment — 5,820 SERP 614 680 Restructuring Expense 10,990 2,386 Asset Impairment (Gain on Disposal) (2,391 ) 17,040 Legal Settlements (Recovery) — (892 ) Stock Compensation Expense 6,519 7,185 Adjusted Operating Income (non-GAAP) $ 61,267 $ 81,496 Tax Effect 24,508 17,297 After-tax Adjusted Operating Income $ 36,759 $ 64,199 Average Invested Capital (1) $ 693,144 $ 782,093 ROIC 5.3 % 8.2 % Expand (1) Average invested capital is computed using Share Owners' equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. 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