Shareholders Alert: Investigation Into BellRing Brands, Inc. (BRBR) - Contact Levi & Korsinsky to Protect Your Rights
On May 6, 2025, BellRing Brands during its second quarter of 2025 earnings call revealed that certain customers were now choosing to "optimize" their inventories by lowering "their weeks of supply on hand," which would slow sales growth in the third quarter to "low-single-digits."
Following this news, the price of BellRing Brands fell by nearly 19% on the same day. To obtain additional information, go to:
https://zlk.com/pslra-1/bellring-brands-inc-lawsuit-submission-form?prid=158919&wire=5&utm_campaign=62
or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212)363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
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National Post
2 minutes ago
- National Post
SunOpta Announces Second Quarter Fiscal 2025 Financial Results
Article content Article content Adjusted EBITDA from continuing operations increased 14% to $22.7 million Article content Adjusted EPS of $0.04 compared to $0.02 in the prior year Article content Reaffirms 2025 Adjusted EBITDA Outlook Article content MINNEAPOLIS — SunOpta Inc. ('SunOpta' or the 'Company') (Nasdaq: STKL) (TSX:SOY), a company that delivers customized supply chain solutions and innovation for top brands, retailers and foodservice providers across a broad portfolio of beverages, broths and better-for-you snacks today announced financial results for the second quarter ended June 28, 2025. Article content All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted. Article content Second Quarter 2025 highlights: Article content Revenues of $191.5 million increased 12.9% compared to $169.5 million in the prior year period, driven by 14.4% volume growth partially offset by a 1.4% price reduction for pass-through pricing for certain raw material cost savings Earnings from continuing operations of $4.4 million compared to a loss of $4.4 million in the prior year period Adjusted earnings¹ from continuing operations of $4.4 million compared to $2.2 million in the prior year period Adjusted earnings per share¹ from continuing operations of $0.04 compared to $0.02 in the prior year period Adjusted EBITDA¹ from continuing operations increased 13.9% to $22.7 million, or 11.9% of revenues, compared to $20.0 million, or 11.8% of revenues, in the prior year period Article content 'Second quarter results were outstanding, reflecting the strength of our competitive position and sharp execution by our team,' said Brian Kocher, Chief Executive Officer of SunOpta. 'Both revenue and Adjusted EBITDA growth continued their double-digits trajectory, driven by robust volume gains across the breadth of our diverse portfolio. Earnings growth was equally strong. We also made significant progress advancing our operational initiatives to improve margins, including unlocking capacity and improving yields, which we expect to gain additional traction over the balance of 2025.' Article content Kocher continued, 'Our new business pipeline has never been stronger and we are exceptionally well positioned to capitalize on these opportunities to drive sustainable growth and profitability. Across beverages and fruit snacks we can meet our growth requirements through 2026 with existing assets. Especially in the better-for-you fruit snack category, powerful tailwinds have significantly increased customer demand. Accordingly, we are announcing a new fruit snack manufacturing line at our Omak, Washington facility, that is already over-subscribed and is anticipated to come online in late 2026 to meet this demand for 2027 and beyond.' Article content Second Quarter 2025 Results Article content Revenues increased 12.9% to $191.5 million for the second quarter of 2025. The increase was driven by 14.4% volume growth partially offset by a 1.4% price reduction for pass-through pricing for certain raw material cost savings. Growth in volume/mix reflected volume growth for plant-based beverages, broth and fruit snacks as well as new product launches. Article content Gross profit increased $7.2 million, or 34.0%, to $28.4 million for the quarter ended June 28, 2025, compared with $21.2 million for the quarter ended June 29, 2024. Gross margin was 14.8% for the quarter ended June 28, 2025, compared with 12.5% for the quarter ended June 29, 2024, an increase of 230 basis points. Adjusted gross margin¹, was 15.2% for the quarter ended June 28, 2025, compared with 16.0% for the quarter ended June 29, 2024. The 80-basis point decrease in adjusted gross margin reflects the timing lag on the pass-through of incremental tariff costs, investments in labor and infrastructure to improve long-term margins and incremental depreciation related to assets recently placed in service. These factors were partially offset by higher sales and production volumes for beverages, broths and fruit snacks driving improved plant utilization. Article content Operating income increased by $8.5 million, to $10.5 million, compared to $2.0 million in the second quarter of 2024, reflecting higher gross profit and a favorable foreign exchange impact. Article content Earnings from continuing operations increased 198% to $4.4 million for the second quarter of 2025 compared with a loss of $4.4 million in the prior year period. Diluted earnings per share from continuing operations attributable to common shareholders (after dividends and accretion on preferred stock) was $0.03 for the second quarter compared with diluted loss per share of $0.04 in the prior year period. Article content Adjusted earnings¹ from continuing operations were $4.4 million or $0.04 per diluted share in the second quarter of 2025 compared to adjusted earnings from continuing operations of $2.2 million or $0.02 per diluted share in the second quarter of 2024. Article content Adjusted EBITDA¹ from continuing operations was $22.7 million in the second quarter of 2025 compared to $20.0 million in the second quarter of 2024 driven by strong volume growth. Article content Please refer to the discussion and table below under 'Non-GAAP Measures'. Article content Balance Sheet and Cash Flow Article content As of June 28, 2025, SunOpta had total assets of $704.9 million and total debt of $273.4 million compared to total assets of $668.5 million and total debt of $265.2 million at year end fiscal 2024. During the first two quarters of fiscal 2025, cash provided by operating activities of continuing operations was $17.8 million compared to $2.0 million during the first two quarters of fiscal 2024. The increase mainly reflected improved working capital efficiency, together with increased operating income, driven by revenue growth. Investing activities of continuing operations consumed $18.6 million of cash during the first two quarters of fiscal 2025 compared to $13.9 million in the first two quarters of fiscal 2024, reflecting higher capital expenditures together with non-recurring proceeds from the sale of the smoothie bowl product line. Net leverage 1 was 2.9x, compared to 3.0x at the end of fiscal 2024 and we continue to expect to achieve our 2.5x net leverage target by the end of this fiscal year. Article content During the second quarter, the Company repurchased 163,227 common shares at an average price per share of $6.04, for total consideration of $1.0 million. As at June 28, 2025, there was $24.0 million of the authorized amount remained available under the Share Repurchase Program. Article content Tariffs Article content Tariffs continue to be an evolving situation that we continue to monitor. While our employees, production facilities, and customers are predominately located in the U.S. (in 2024, 98% of revenue was to U.S.-based customers), we source a portion of our raw material ingredients and packaging globally, and a portion of our fruit snack products are imported into the U.S. from our Niagara, Ontario, facility that are not exempt under USMCA. In response to these tariffs, at the beginning of the year we started communications with our customers regarding our intention to pass-through substantially all the incremental costs to our customers, similar to our pass-through pricing of raw material cost increases. By the middle of July, we successfully implemented new pricing arrangements with all of our customers to mitigate the full amount of known tariff exposure at that time. Due to the timing lag in passing through the tariff pricing adjustments, gross profit was negatively impacted by $1.6 million, reducing gross margin by 90 basis points in the second quarter. We expect to have a similar fiscal third quarter timing lag impact as we recover the recently announced tariff changes on August 1, 2025. While our pass-through mechanisms may have a timing lag, we continue to expect to recover substantially all additional costs of tariffs. Article content 2025 Outlook 2 Article content For fiscal 2025, the Company is raising its revenue outlook reflecting both the strong performance in Q2 and the expected impact of pass-through tariff pricing, and is reaffirming its adjusted EBITDA outlook: Article content The revised outlook includes an increase of approximately $8 million in revenue and $10 million in cost of goods sold in the second half of 2025 simply due to the expected tariff expense, related pass-through pricing to our customers, and timing lag on implementing the pricing. Article content Conference Call Article content SunOpta plans to host a conference call at 5:30 P.M. Eastern time on Wednesday, August 6, 2025, to discuss the second quarter financial results. After prepared remarks, there will be a question and answer period. Investors interested in listening to the live webcast can access a link on SunOpta's website at under the 'Investor Relations' section or directly. A replay of the webcast will be archived and can be accessed for approximately 90 days on the Company's website. Article content This call may be accessed with the toll free dial-in number (800) 715-9871 or international dial-in number (646) 307-1963 using Conference ID: 8323651. Article content The quarterly earnings presentation, including the long-term grow algorithm and capital allocation priorities, can be accessed through the live webcast referenced above, and on SunOpta's website at under the 'Investor Relations' section or directly. Article content 2 Article content The Company has included certain forward-looking statements about the future financial performance that include non-GAAP financial measures, including Adjusted EBITDA. These non–GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. Historically, management has excluded the following items from certain of these non-GAAP measures, and such items may also be excluded in future periods and could be significant amounts. Article content Expenses related to the acquisition or divestiture of a business, including business development costs, impairment of assets, integration costs, severance, retention costs and transaction costs; Charges associated with restructuring and cost saving initiatives, including but not limited to asset impairments, accelerated depreciation, severance costs and lease abandonment charges; Asset impairment charges and facility closure costs; Legal settlements or awards; and The tax effect of the above items. Article content About SunOpta Article content SunOpta (Nasdaq: STKL) (TSX: SOY) delivers customized supply chain solutions and innovation for top brands, retailers and foodservice providers across a broad portfolio of beverages, broths and better-for-you snacks. With over 50 years of expertise, SunOpta fuels customers' growth with high-quality, sustainability-forward solutions distributed through retail, club, foodservice and e-commerce channels across North America. For more information, visit or follow us on LinkedIn. Article content Forward-Looking Statements Article content Certain statements included in this press release may be considered 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our intention to maintain our disciplined financial approach to deliver sustainable gross margin improvement and continue to generate significant free cash flow, our expectation to continue de-levering our balance sheet, achieve net leverage targets and drive increasing returns on invested capital, share repurchases, our expectations to recover tariff impacts through pass-through pricing, and our anticipated Revenue, Adjusted EBITDA, Revenue growth and Adjusted EBITDA growth for fiscal 2025. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as 'potential', 'expect', 'believe', 'anticipate', 'estimates', 'can', 'will', 'target', 'should', 'would', 'plans', 'continue', 'becoming', 'intend', 'confident', 'may', 'project', 'intention', 'might', 'predict', 'budget', 'forecast' or other similar terms and phrases intended to identify these forward-looking statements. Forward-looking statements are based on information available to the Company on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments including, but not limited to, the Company's actual financial results; uninterrupted operations and service levels to our customers; current customer demand for the Company's products; general economic conditions; continued consumer interest in health and wellness; the Company's ability to maintain product pricing levels; planned facility and operational expansions, closures and divestitures; cost rationalization and product development initiatives; alternative potential uses for the Company's capital resources; portfolio optimization and productivity efforts; the sustainability of the Company's sales pipeline; the Company's expectations regarding commodity pricing, margins and hedging results; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; labor cost reductions; and the terms of our insurance policies. Whether actual timing and results will agree with expectations and predictions of the Company is subject to many risks and uncertainties including, but not limited to, potential loss of suppliers and customers as well as the possibility of supply chain, logistics and other disruptions; unexpected issues or delays with the Company's structural improvements and automation investments; failure or inability to implement portfolio changes, process improvements, go-to-market improvements and process sustainability strategies in a timely manner; changes in the level of capital investment; local and global political and economic conditions; consumer spending patterns and changes in market trends; decreases in customer demand; delayed or unsuccessful product development efforts; potential product recalls; working capital management; availability and pricing of raw materials and supplies; potential covenant breaches under the Company's credit facilities; the impact of the imposition of tariffs, including increases in food prices and inflation, and any resulting negative impacts on the macro-economic environment; and other risks described from time to time under 'Risk Factors' in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at Consequently, all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this document, in other documents, or on its website to reflect future events or circumstances, except as may be required under applicable securities laws. Article content SunOpta Inc. Consolidated Statements of Operations For the quarters and two quarters ended June 28, 2025 and June 29, 2024 (Unaudited) (All dollar amounts expressed in thousands of U.S. dollars, except per share amounts) Quarter ended Two quarters ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 $ $ $ $ Revenues 191,489 169,541 393,117 353,963 Cost of goods sold 163,082 148,349 334,391 301,719 Gross profit 28,407 21,192 58,726 52,244 Selling, general and administrative expenses 17,727 17,784 36,923 40,118 Intangible asset amortization 526 446 972 892 Other income, net (131 ) (304 ) (56 ) (2,104 ) Foreign exchange loss (gain) (248 ) 1,310 (133 ) 1,259 Operating income 10,533 1,956 21,020 12,079 Interest expense, net 5,301 6,410 10,408 12,460 Other non-operating expense 537 – 959 – Earnings (loss) from continuing operations before income taxes 4,695 (4,454 ) 9,653 (381 ) Income tax expense (benefit) 344 (17 ) 491 260 Earnings (loss) from continuing operations 4,351 (4,437 ) 9,162 (641 ) Net loss from discontinued operations – (897 ) – (1,814 ) Net earnings (loss) 4,351 (5,334 ) 9,162 (2,455 ) Dividends and accretion on preferred stock (35 ) 169 (175 ) (264 ) Earnings (loss) attributable to common shareholders 4,316 (5,165 ) 8,987 (2,719 ) Basic earnings (loss) per share Earnings (loss) from continuing operations attributable to common shareholders 0.04 (0.04 ) 0.08 (0.01 ) Loss from discontinued operations – (0.01 ) – (0.02 ) Earnings (loss) attributable to common shareholders (1) 0.04 (0.04 ) 0.08 (0.02 ) Diluted earnings (loss) per share Earnings (loss) from continuing operations attributable to common shareholders 0.03 (0.04 ) 0.07 (0.01 ) Loss from discontinued operations – (0.01 ) – (0.02 ) Earnings (loss) attributable to common shareholders (1) 0.03 (0.04 ) 0.07 (0.02 ) Weighted-average common shares outstanding (000s) Basic 118,168 116,640 117,685 116,336 Diluted 124,676 116,640 124,700 116,336 (1) The sum of individual per share amounts may not add due to rounding. Article content SunOpta Inc. Consolidated Balance Sheets As at June 28, 2025 and December 28, 2024 (Unaudited) (All dollar amounts expressed in thousands of U.S. dollars) June 28, 2025 December 28, 2024 $ $ ASSETS Current assets Cash and cash equivalents 2,161 1,552 Accounts receivable 58,851 46,314 Inventories 109,945 92,798 Prepaid expenses and other current assets 12,346 14,680 Income taxes recoverable 780 4,114 Total current assets 184,083 159,458 Restricted cash 8,003 7,460 Property, plant and equipment, net 345,968 343,618 Operating lease right-of-use assets 112,138 105,692 Intangible assets, net 22,041 20,077 Goodwill 3,998 3,998 Other long-term assets 28,709 28,224 Total assets 704,940 668,527 LIABILITIES Current liabilities Accounts payable 109,560 93,362 Accrued liabilities 15,189 17,876 Income taxes payable 70 638 Notes payable 8,211 11,110 Short-term debt 10,115 – Current portion of long-term debt 30,176 29,393 Current portion of operating lease liabilities 17,491 17,055 Total current liabilities 190,812 169,434 Long-term debt 233,080 235,798 Operating lease liabilities 105,684 99,328 Deferred income taxes 325 325 Total liabilities 529,901 504,885 Series B-1 Preferred Stock 15,223 15,048 SHAREHOLDERS' EQUITY Common shares 478,064 471,792 Additional paid-in capital 27,070 30,775 Accumulated deficit (347,327 ) (355,982 ) Accumulated other comprehensive income 2,009 2,009 Total shareholders' equity 159,816 148,594 Total liabilities and shareholders' equity 704,940 668,527 Article content SunOpta Inc. Consolidated Statements of Cash Flows For the two quarters ended June 28, 2025 and June 29, 2024 (Unaudited) (All dollar amounts expressed in thousands of U.S. dollars) Two quarters ended June 28, 2025 June 29, 2024 $ $ CASH PROVIDED BY (USED IN) Operating activities Net earnings (loss) 9,162 (2,455 ) Net loss from discontinued operations – (1,814 ) Earnings (loss) from continuing operations 9,162 (641 ) Items not affecting cash: Depreciation and amortization 19,686 17,686 Amortization of debt issuance costs 477 457 Deferred income taxes – (368 ) Stock-based compensation 3,735 7,088 Gain on sale of smoothie bowls product line – (1,800 ) Gain on sale of property, plant and equipment (244 ) – Other (194 ) (193 ) Changes in operating assets and liabilities, net of divestitures (14,844 ) (20,216 ) Net cash provided by operating activities of continuing operations 17,778 2,013 Net cash used in operating activities of discontinued operations – (2,310 ) Net cash provided by (used in) operating activities 17,778 (297 ) Investing activities Additions to property, plant and equipment (17,438 ) (17,259 ) Proceeds from sale of property, plant and equipment 1,284 – Addition to intangible assets (2,419 ) – Proceeds from sale of smoothie bowls product line – 3,336 Net cash used in investing activities of continuing operations (18,573 ) (13,923 ) Net cash provided by investing activities of discontinued operations – 6,300 Net cash used in investing activities (18,573 ) (7,623 ) Financing activities Proceeds from notes payable 80,070 70,477 Repayment of notes payable (82,969 ) (71,709 ) Net increase in borrowings under revolving credit facilities 6,762 26,350 Borrowings of short-term and long-term debt 18,600 – Repayment of long-term debt (19,016 ) (12,320 ) Proceeds from the exercise of stock options and employee share purchases 1,880 749 Payment of withholding taxes on stock-based awards (2,389 ) (2,659 ) Repurchase of common shares (991 ) – Payment of cash dividends on preferred stock – (305 ) Net cash provided by financing activities of continuing operations 1,947 10,583 Increase in cash, cash equivalents and restricted cash in the period 1,152 2,663 Cash, cash equivalents and restricted cash, beginning of the period 9,012 8,754 Cash, cash equivalents and restricted cash, end of the period 10,164 11,417 Article content Non-GAAP Measures Article content Adjusted Gross Margin Article content Gross margin is a measure of gross profit (equal to revenues less cost of goods sold) as a percentage of revenues. The Company uses a measure of adjusted gross margin that excludes unusual items that are identified and evaluated on an individual basis, which due to their nature or size, the Company would not expect to occur as part of our normal business on a regular basis. The Company uses the measure of adjusted gross margin to evaluate the underlying profitability of our revenue-generating activities within each reporting period. The Company believes that disclosing this non-GAAP measure provides users with a meaningful, consistent comparison of its profitability measure for the periods presented. However, the non-GAAP measure of adjusted gross margin should not be considered in isolation or as a substitute for gross margin calculated based on gross profit determined in accordance with U.S. GAAP. The following tables present a reconciliation of adjusted gross margin from reported gross margin calculated in accordance with U.S. GAAP (all dollar amounts expressed in thousands of U.S. dollars). Article content Second Quarter Ended Revenues Cost of Goods Sold Gross Profit June 28, 2025 $ $ $ As reported 191,489 163,082 28,407 Adjusted for: Wastewater haul-off charges (a) – (752 ) 752 As adjusted 191,489 162,330 29,159 Reported gross margin 14.8 % Adjusted gross margin 15.2 % Second Quarter Ended Revenues Cost of Goods Sold Gross Profit June 29, 2024 $ $ $ As reported 169,541 148,349 21,192 Adjusted for: Wastewater haul-off charges (a) – (1,426 ) 1,426 Start-up costs (b) 61 (2,287 ) 2,348 Product withdrawal costs (c) – (2,145 ) 2,145 As adjusted 169,602 142,491 27,111 Reported gross margin 12.5 % Adjusted gross margin 16.0 % Article content First Two Quarters Ended Revenues Cost of Goods Sold Gross Profit June 28, 2025 $ $ $ As reported 393,117 334,391 58,726 Adjusted for: Wastewater haul-off charges (a) – (1,295 ) 1,295 As adjusted 393,117 333,096 60,021 Reported gross margin 14.9 % Adjusted gross margin 15.3 % First Two Quarters Ended Revenues Cost of Goods Sold Gross Profit June 29, 2024 $ $ $ As reported 353,963 301,719 52,244 Adjusted for: Wastewater haul-off charges (a) – (1,426 ) 1,426 Start-up costs (b) 61 (2,614 ) 2,675 Product withdrawal costs (c) – (2,145 ) 2,145 As adjusted 354,024 295,534 58,490 Reported gross margin 14.8 % Adjusted gross margin 16.5 % Article content Adjusted Earnings Article content When assessing financial performance, the Company uses an internal measure of adjusted earnings that excludes specific items recognized in other income or expense, and other unusual items that are identified and evaluated on an individual basis, which due to their nature or size, the Company would not expect to occur as part of its normal business on a regular basis. The Company believes that the identification of these excluded items enhances the analysis of the financial performance of its business when comparing those operating results between periods, as the Company does not consider these items to be reflective of normal business operations. The following tables present a reconciliation of adjusted earnings from earnings (loss) from continuing operations, which the Company considers to be the most directly comparable U.S. GAAP financial measure (all dollar amounts expressed in thousands of U.S. dollars, except per share amounts). Article content Second Quarter Ended June 28, 2025 June 29, 2024 Per Share Per Share $ $ $ $ Earnings (loss) from continuing operations 4,351 (4,437 ) Dividends and accretion on preferred stock (35 ) 169 Earnings (loss) from continuing operations attributable to common shareholders 4,316 0.03 (4,268 ) (0.04 ) Adjusted for: Wastewater haul-off charges (a) 752 1,426 Start-up costs (b) – 2,348 Product withdrawal costs (c) – 2,145 Unrealized foreign exchange loss (gain) on restricted cash (d) (562 ) 838 Other (e) (131 ) (304 ) Adjusted earnings from continuing operations 4,375 0.04 2,185 0.02 Article content First Two Quarters Ended June 28, 2025 June 29, 2024 Per Share Per Share $ $ $ $ Earnings (loss) from continuing operations 9,162 (641 ) Accretion on preferred stock (175 ) (264 ) Earnings (loss) from continuing operations attributable to common shareholders 8,987 0.07 (905 ) (0.01 ) Adjusted for: Wastewater haul-off charges (a) 1,295 1,426 Start-up costs (b) – 2,675 Product withdrawal costs (c) – 2,145 Unrealized foreign exchange loss (gain) on restricted cash (d) (543 ) 838 Other (e) (56 ) (304 ) Gain on sale of smoothie bowls product line (f) – (1,800 ) Adjusted earnings from continuing operations 9,683 0.08 4,075 0.03 Article content Adjusted EBITDA Article content The Company uses a measure of adjusted EBITDA from continuing operations when assessing the performance of its operations, which the Company believes is useful to users' understanding of the Company's operating profitability because it excludes non-operating expenses, such as interest, loss on sale of receivables, and income taxes, as well as non-cash expenses, such as depreciation, amortization, and stock-based compensation. In addition, the Company's measure of adjusted EBITDA excludes other unusual items that affect the comparability of its operating performance, as identified in the preceding determination of adjusted earnings from continuing operations. The Company also uses this measure of adjusted EBITDA to assess operating performance in connection with its employee incentive programs. The following tables present a reconciliation of adjusted EBITDA from continuing operations from earnings (loss) from continuing operations, which the Company considers to be the most directly comparable U.S. GAAP financial measure (all dollar amounts expressed in thousands of U.S. dollars). Article content Second Quarter Ended June 28, 2025 June 29, 2024 $ $ Earnings (loss) from continuing operations 4,351 (4,437 ) Interest expense, net 5,301 6,410 Loss on sale of receivables* 537 – Income tax expense (benefit) 344 (17 ) Depreciation and amortization 9,960 9,110 Stock-based compensation 2,192 2,443 Adjusted for: Wastewater haul-off charges (a) 752 1,426 Start-up costs (b) – 2,348 Product withdrawal costs (c) – 2,145 Unrealized foreign exchange loss (gain) on restricted cash (d) (562 ) 838 Other (e) (131 ) (304 ) Adjusted EBITDA from continuing operations 22,744 19,962 * Included in other non-operating expense. Article content First Two Quarters Ended June 28, 2025 June 29, 2024 $ $ Earnings (loss) from continuing operations 9,162 (641 ) Interest expense, net 10,408 12,460 Loss on sale of receivables* 959 – Income tax expense 491 260 Depreciation and amortization 19,686 17,686 Stock-based compensation 3,735 7,088 Adjusted for: Wastewater haul-off charges (a) 1,295 1,426 Start-up costs (b) – 2,675 Product withdrawal costs (c) – 2,145 Unrealized foreign exchange loss (gain) on restricted cash (d) (543 ) 838 Other (e) (56 ) (304 ) Gain on sale of smoothie bowls product line (f) – (1,800 ) Adjusted EBITDA from continuing operations 45,137 41,833 * Included in other non-operating expense. Article content Footnotes (a) Reflects temporary third-party haul-off charges for excess wastewater produced at our Midlothian, Texas, facility due to volume constraints within our current treatment system. (b) Start-up costs mainly reflect the scale-up of production over the course of fiscal 2024 at our plant-based beverage facility in Midlothian, Texas. (c) Reflects certain direct costs, net of expected insurance recoveries, related to the voluntary withdrawal from customers in the second quarter of 2024 of certain batches of aseptically-packaged products. (d) Reflects unrealized foreign exchange (gains) or losses associated with peso-denominated restricted cash held in Mexico. (e) For the second quarter and first two quarters of 2025, other mainly reflects a gain on sale of property, plant and equipment, partially offset by a legal settlement loss. For the second quarter and first two quarters of 2024, other mainly reflects legal settlement gains. These other amounts are recorded in other income or expense. (f) Reflects the pre-tax gain on sale of the smoothie bowls product line in the first quarter of 2024, which is recorded in other income. Article content Net Leverage Article content Net leverage is a non-GAAP financial measure that is calculated by dividing net debt (non-GAAP) by trailing four quarters adjusted EBITDA (non-GAAP). Net debt is defined by the Company as short-term debt plus current portion of long-term debt plus long-term debt less cash and cash equivalents. The Company uses net leverage as an assessment of its operating performance relative to its debt levels. The following tables present reconciliations of trailing four quarters adjusted EBITDA from continuing operations from loss from continuing operations and total debt to net debt, and the calculation of net leverage (all dollar amounts expressed in thousands of U.S. dollars). Article content Trailing Four Quarters Ended June 28, 2025 December 28, 2024 $ $ Loss from continuing operations (1,671 ) (11,474 ) Interest expense, net 22,856 24,908 Loss on sale of receivables* 1,645 686 Income tax expense 1,701 1,470 Depreciation and amortization 38,497 36,497 Stock-based compensation 7,837 11,190 Adjusted for: Wastewater haul-off charges 4,230 4,361 Start-up costs 16,474 19,149 Product withdrawal costs – 2,145 Unrealized foreign exchange loss on restricted cash 226 1,607 Other 215 (33 ) Gain on sale of smoothie bowls product line – (1,800 ) Adjusted EBITDA from continuing operations 92,010 88,706 * Included in other non-operating expense. Article content $ As at June 28, 2025 Short-term debt 10,115 Current portion of long-term debt 30,176 Long-term debt 233,080 Total debt 273,371 Cash and cash equivalents (2,161 ) Net debt 271,210 For the trailing four quarters ended June 28, 2025 Adjusted EBITDA 92,010 Net leverage 2.9x As at December 28, 2024 Current portion of long-term debt 29,393 Long-term debt 235,798 Total debt 265,191 Cash and cash equivalents (1,552 ) Net debt 263,639 For the trailing four quarters ended December 28, 2024 Adjusted EBITDA 88,706 Net leverage 3.0x Article content Article content Article content Article content Article content Contacts Article content
Globe and Mail
2 minutes ago
- Globe and Mail
XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP (XIFR) Class Action Lawsuit: Levi & Korsinsky Reminds Investors of September 8, 2025 Deadline
New York, New York--(Newsfile Corp. - August 6, 2025) - If you suffered a loss on your XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP (NYSE: XIFR) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information: or contact Joseph E. Levi, Esq. via email at jlevi@ or call (212) 363-7500 to speak to our team of experienced shareholder advocates. THE LAWSUIT: A class action securities lawsuit was filed against XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP that seeks to recover losses of shareholders who were adversely affected by alleged securities fraud between September 27, 2023 and January 27, 2025. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (i) XPLR was struggling to maintain its operations as a yieldco; (ii) defendants temporarily relieved this issue by entering into certain financing arrangements, described herein, while downplaying the attendant risks; (iii) XPLR could not resolve those financings before their maturity date without risking significant unitholder dilution; (iv) as a result, defendants planned to halt cash distributions to investors and instead redirect those funds to, inter alia, resolve those financings; (v) as a result of all the foregoing, XPLR's yieldco business model and distribution growth rate was unsustainable; and (vi) as a result, defendants' public statements were materially false and misleading at all relevant times. WHAT'S NEXT? If you suffered a loss in XPLR Infrastructure, LP f/k/a Nextera Energy Partners, LP stock during the relevant time frame - even if you still hold your shares - go to to learn about your rights to seek a recovery. There is no cost or obligation to participate. WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
Globe and Mail
2 minutes ago
- Globe and Mail
Innovative Industrial Properties Reports Second Quarter 2025 Results
Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company"), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced today results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Financial Results and Dividend Generated total revenues of $62.9 million and net income attributable to common stockholders of $25.1 million, or $0.86 per share ( all per share amounts in this press release are reported on a diluted basis unless otherwise noted). Recorded adjusted funds from operations ("AFFO") and normalized funds from operations ("Normalized FFO") of $48.4 million and $44.1 million, respectively. Paid a quarterly dividend of $1.90 per common share on July 15, 2025 to stockholders of record as of June 30, 2025. Since its inception, IIP has paid $1.0 billion in common stock dividends to its stockholders. Three Months Ended June 30, (per share) 2025 2024 $ Change % Change Net income attributable to common stockholders $ 0.86 $ 1.44 $ (0.58 ) (40 )% Normalized FFO $ 1.56 $ 2.06 $ (0.50 ) (24 )% AFFO $ 1.71 $ 2.29 $ (0.58 ) (25 )% __________________________________________________________________ Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Portfolio Update - General In April, leased 205,000 square feet to Berry Green at IIP's property in Warren, Michigan. In April, sold a property in Michigan for $9.0 million (excluding transaction costs) and provided an interest only, secured loan for $8.5 million to the buyer of the property. The Company also received a $1.0 million loan origination fee in connection with the transaction. In June, sold a property in Palm Springs, California for $1.8 million in net proceeds. Portfolio Update - Lease Defaults In March 2025, the Company launched a strategic initiative aimed at improving long-term financial performance by replacing certain underperforming tenants with more financially stable, long-term operators. As part of this effort, it declared several tenants, including 4Front Ventures, Gold Flora, and TILT Holdings, in default for nonpayment of rent and is pursuing its legal rights, which may include evictions. Additionally, PharmaCann previously defaulted on its eleven leases with the Company across multiple states where the Company has commenced legal proceedings to regain possession of the properties they continue to occupy and re-leased one property located in Warren, Michigan to Berry Green. The Company is actively working to recover amounts due from these tenants and to re-lease vacated properties. Balance Sheet Highlights (at June 30, 2025) 11% debt to total gross assets, with $2.6 billion in total gross assets Total liquidity was $192.4 million as of June 30, 2025, consisting of cash and cash equivalents and short-term investments (each as reported in IIP's consolidated balance sheet as of June 30, 2025) and availability under IIP's revolving credit facility. Debt service coverage ratio of 15.0x (calculated in accordance with IIP's 5.50% Unsecured Senior Notes due 2026). Financing Activity Issued 173,834 shares of Series A Preferred Stock under IIP's 'at-the-market' equity offering program for $4.0 million in net proceeds. Repurchased 366,952 shares of common stock under the Company's share repurchase program for $19.8 million at a weighted average price of $53.98 per share under the Company's $100 million share repurchase program, which expires March 2026. As of June 30, 2025, the Company had $79.9 million in common stock repurchases remaining available under the share repurchase program. Property Portfolio Statistics (as of June 30, 2025) Total property portfolio comprises 108 properties across 19 states, with 9.0 million rentable square feet "RSF" (including 588,000 RSF under development / redevelopment), consisting of: Operating portfolio: 105 properties, representing 8.5 million RSF. Under development / redevelopment portfolio consists of three properties expected to comprise 491,000 RSF at completion and is as follows: 236,000 square feet located at 63795 19th Avenue in Palm Springs, California (pre-leased) 192,000 square feet located at Inland Center Drive in San Bernardino, California 12-acre development site located at Leah Avenue in San Marcos, Texas Financial Results For the three months ended June 30, 2025, IIP generated total revenues of $62.9 million, compared to $79.8 million for the same period in 2024, a decrease of 21%. The decrease was primarily driven by tenant defaults totaling $15.8 million related to properties leased to PharmaCann, Gold Flora, TILT and 4Front. In addition, there was a decrease of $1.3 million related to properties vacated or sold, a $3.9 million decrease from a one-time disposition-contingent lease termination fee that was collected during the three months ended June 30, 2024 in connection with the sale of our property in California, and a $0.6 million decrease in tenant reimbursement revenue primarily due to tenant defaults. These decreases were partially offset by a $1.6 million increase from the two properties acquired in 2024 and one property acquired in 2025, a $1.5 million increase from new leases on five existing properties, and a $1.6 million increase from annual contractual rent escalations. For the three months ended June 30, 2025, IIP applied $18,000 of security deposits for payment of rent on one property leased to Emerald Growth, which was sold during the second quarter. For the three months ended June 30, 2024, IIP applied $0.6 million of security deposits for payment of rent on properties leased to two tenants. Dividend On June 13, 2025, the Board of Directors declared a second quarter 2025 dividend of $1.90 per common share, representing an annualized dividend of $7.60 per common share. The dividend was paid on July 15, 2025 to stockholders of record as of June 30, 2025. Supplemental Information Supplemental financial information is available in the Investor Relations section of IIP's website at Teleconference and Webcast Innovative Industrial Properties, Inc. will conduct a conference call and webcast at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Thursday, August 7, 2025 to discuss IIP's financial results and operations for the second quarter ended June 30, 2025. The call will be open to all interested investors through a live audio webcast at the Investor Relations section of IIP's website at or live by calling 1-877-328-5514 (domestic) or 1-412-902-6764 (international) and asking to be joined to the Innovative Industrial Properties, Inc. conference call. The complete webcast will be archived for 90 days on IIP's website. A telephone playback of the conference call will also be available from 12:00 p.m. Pacific Time on Thursday, August 7, 2025 until 12:00 p.m. Pacific Time on Thursday, August 14, 2025, by calling 1-877-344-7529 (domestic), 855-669-9658 (Canada) or 1-412-317-0088 (international) and using access code 9556330. About Innovative Industrial Properties Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Additional information is available at This press release contains statements that IIP believes to be 'forward-looking statements' within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward-looking statements. When used in this press release, words such as IIP 'expects,' 'intends,' 'plans,' 'estimates,' 'anticipates,' 'believes' or 'should' or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2024, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that the Company's expectations will be realized. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by federal securities laws. June 30, December 31, Assets 2025 2024 Real estate, at cost: Land $ 146,469 $ 146,772 Buildings and improvements 2,249,408 2,230,807 Construction in progress 57,487 62,393 Total real estate, at cost 2,453,364 2,439,972 Less accumulated depreciation (306,594 ) (271,190 ) Net real estate held for investment 2,146,770 2,168,782 Construction loan receivable 22,800 22,800 Cash and cash equivalents 99,666 146,245 Investments 5,258 5,000 Right of use office lease asset 731 946 In-place lease intangible assets, net 6,955 7,385 Other assets, net 22,875 26,889 Total assets $ 2,305,055 $ 2,378,047 Liabilities and stockholders' equity Liabilities: Notes due 2026, net $ 289,861 $ 297,865 Building improvements and construction funding payable 5,647 10,230 Accounts payable and accrued expenses 10,183 10,561 Dividends payable 54,661 54,817 Rent received in advance and tenant security deposits 51,647 57,176 Other liabilities 12,650 11,338 Total liabilities 424,649 441,987 Commitments and contingencies Stockholders' equity: Preferred stock, par value $0.001 per share, 50,000,000 shares authorized: 9.00% Series A cumulative redeemable preferred stock, liquidation preference of $25.00 per share, 1,561,654 and 1,002,673 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 36,843 23,632 Common stock, par value $0.001 per share, 50,000,000 shares authorized: 28,017,520 and 28,331,833 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 28 28 Additional paid-in capital 2,107,963 2,124,113 Dividends in excess of earnings (264,428 ) (211,713 ) Total stockholders' equity 1,880,406 1,936,060 Total liabilities and stockholders' equity $ 2,305,055 $ 2,378,047 INNOVATIVE INDUSTRIAL PROPERTIES, INC. For the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) (In thousands, except share and per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Rental (including tenant reimbursements) $ 62,866 $ 79,253 $ 134,563 $ 154,167 Other 25 540 50 1,080 Total revenues 62,891 79,793 134,613 155,247 Expenses: Property expenses 6,867 6,863 14,246 13,572 General and administrative expense 8,626 9,661 17,087 19,223 Depreciation and amortization expense 18,500 17,473 36,891 34,623 Impairment loss on real estate — — 3,527 — Total expenses 33,993 33,997 71,751 67,418 Gain (loss) on sale of real estate — (3,449 ) — (3,449 ) Income from operations 28,898 42,347 62,862 84,380 Interest income 1,570 3,966 3,183 5,750 Interest expense (4,444 ) (4,320 ) (8,944 ) (8,709 ) Net income 26,024 41,993 57,101 81,421 Preferred stock dividends (878 ) (338 ) (1,659 ) (676 ) Net income attributable to common stockholders $ 25,146 $ 41,655 $ 55,442 $ 80,745 Net income attributable to common stockholders per share Basic $ 0.87 $ 1.45 $ 1.92 $ 2.82 Diluted $ 0.86 $ 1.44 $ 1.90 $ 2.79 Weighted-average shares outstanding: Basic 27,924,092 28,250,843 28,098,850 28,197,930 INNOVATIVE INDUSTRIAL PROPERTIES, INC. FFO, NORMALIZED FFO AND AFFO For the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) (In thousands, except share and per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to common stockholders $ 25,146 $ 41,655 $ 55,442 $ 80,745 Real estate depreciation and amortization 18,500 17,473 36,891 34,623 Impairment loss on real estate — — 3,527 — Disposition-contingent lease termination fee, net of loss on sale of real estate (1) — (451 ) — (451 ) FFO attributable to common stockholders (basic) 43,646 58,677 95,860 114,917 Cash and non-cash interest expense on Exchangeable Senior Notes — — — 28 FFO attributable to common stockholders (diluted) 43,646 58,677 95,860 114,945 Litigation-related expense 413 164 819 310 Loss (gain) on partial repayment of Notes due 2026 — — (32 ) — Normalized FFO attributable to common stockholders (diluted) 44,059 58,841 96,647 115,255 Income on seller-financed notes (2) 1,164 403 1,317 806 Deferred lease payments received on sales-type leases (3) 5 1,462 25 2,918 Stock-based compensation 2,672 4,371 4,750 8,686 Non-cash interest expense 476 401 946 789 Above-market lease amortization 23 23 46 46 AFFO attributable to common stockholders (diluted) $ 48,399 $ 65,501 $ 103,731 $ 128,500 FFO per common share – diluted $ 1.54 $ 2.06 $ 3.37 $ 4.03 Normalized FFO per common share – diluted $ 1.56 $ 2.06 $ 3.40 $ 4.04 AFFO per common share – diluted $ 1.71 $ 2.29 $ 3.65 $ 4.50 Weighted average common shares outstanding – basic 27,924,092 28,250,843 28,098,850 28,197,930 Restricted stock and RSUs 393,601 300,582 353,261 289,736 PSUs — 20,713 — 20,713 Dilutive effect of Exchangeable Senior Notes — — — 19,040 Weighted average common shares outstanding – diluted 28,317,693 28,572,138 28,452,111 28,527,419 __________________________________________________________________ (1) Amount reflects the $3.9 million disposition-contingent lease termination fee received concurrently with the sale of IIP's property in Los Angeles, California, net of the loss on sale of the property of $3.4 million. (2) Amount reflects the non-refundable cash payments received on the two seller-financed notes issued to IIP by the buyers in connection with IIP's disposition of certain properties which are recognized as a deposit liability and is included in other liabilities in IIP's consolidated balance sheet as of June 30, 2025, as the transactions did not qualify for recognition as completed sales. (3) Amount reflects the non-refundable lease payments received on two sales-type leases which are recognized as a deposit liability starting on January 1, 2024, and is included in other liabilities in IIP's consolidated balance sheet as of June 30, 2025, as the transactions did not qualify for recognition as completed sales. Prior to the lease modifications on January 1, 2024, which extended the initial lease terms, the leases were classified as operating leases and the lease payments received were recognized as rental revenue and therefore, included in net income attributable to common stockholders. FFO and FFO per share are operating performance measures adopted by the National Association of Real Estate Investment Trusts, Inc. (NAREIT). NAREIT defines FFO as the most commonly accepted and reported measure of a REIT's operating performance equal to net income, computed in accordance with accounting principles generally accepted in the United States (GAAP), excluding gains (or losses) from sales of property, depreciation, amortization and impairment related to real estate properties, and after adjustments for unconsolidated partnerships and joint ventures. IIP also excludes from FFO any disposition-contingent lease termination fee received in connection with a property sale. Management believes that net income, as defined by GAAP, is the most appropriate earnings measurement. However, management believes FFO and FFO per share to be supplemental measures of a REIT's performance because they provide an understanding of the operating performance of IIP's properties without giving effect to certain significant non-cash items, primarily depreciation expense. Historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time. However, real estate values instead have historically risen or fallen with market conditions. IIP believes that by excluding the effect of depreciation, FFO and FFO per share can facilitate comparisons of operating performance between periods. IIP reports FFO and FFO per share because these measures are observed by management to also be the predominant measures used by the REIT industry and industry analysts to evaluate REITs and because FFO per share is consistently reported, discussed, and compared by research analysts in their notes and publications about REITs. For these reasons, management has deemed it appropriate to disclose and discuss FFO and FFO per share. IIP computes Normalized FFO by adjusting FFO to exclude certain GAAP income and expense amounts that management believes are infrequent and unusual in nature and/or not related to IIP's core real estate operations. Exclusion of these items from similar FFO-type metrics is common within the equity REIT industry, and management believes that presentation of Normalized FFO and Normalized FFO per share provides investors with a metric to assist in their evaluation of IIP's operating performance across multiple periods and in comparison to the operating performance of other companies, because it removes the effect of unusual items that are not expected to impact IIP's operating performance on an ongoing basis. Normalized FFO is used by management in evaluating the performance of its core business operations. Items included in calculating FFO that may be excluded in calculating Normalized FFO include certain transaction-related gains, losses, income or expense or other non-core amounts as they occur. Management believes that AFFO and AFFO per share are also appropriate supplemental measures of a REIT's operating performance. IIP calculates AFFO by adjusting Normalized FFO for certain cash and non-cash items. For the six months ended June 30, 2024, FFO (diluted), Normalized FFO and AFFO, and FFO, Normalized FFO and AFFO per diluted share include the dilutive impact of the assumed full exchange of the Exchangeable Senior Notes for shares of common stock as of the Exchangeable Senior Notes were exchanged at the beginning of the respective reporting period. The Exchangeable Senior Notes matured in February 2024. For the three and six months ended June 30, 2024, the performance share units ('PSUs') granted to certain employees were included in dilutive securities to the extent the performance thresholds for vesting of the PSUs were met as measured as of June 30, 2024. The PSUs expired on December 31, 2024. IIP's computation of FFO, Normalized FFO and AFFO may differ from the methodology for calculating FFO, Normalized FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such REITs. Further, FFO, Normalized FFO and AFFO do not represent cash flow available for management's discretionary use. FFO, Normalized FFO and AFFO should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of IIP's financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of IIP's liquidity, nor is it indicative of funds available to fund IIP's cash needs, including IIP's ability to pay dividends or make distributions. FFO, Normalized FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of IIP's operations.
