Itafos Continues to Deliver Strong Operational and Financial Performance - Q2 2025 Operational and Financial Results
Chief Executive Officer David Delaney commented, 'we are pleased to report another highly successful quarter in which the Company maintained its exceptional safety performance and posted higher production volumes at both Conda and Arraias compared to the same period last year. We completed our annual planned turnaround at Conda on time and on budget and the plant was back to running at full capacity as we exited the quarter. At Arraias, the granulation circuit was successfully restarted and the Company delivered the initial volumes of its new granulated fertilizer product, SuperForte Gran to the local market.
Operating margins declined year-over-year for Q2, with higher revenues offset by higher input costs at Conda, particularly for sulfur and sulfuric acid. While reference phosphate prices increased significantly during the second quarter, due to the nature of the Company's monoammonium phosphate ('MAP') offtake contract, the full benefit of the increased prices will not be realized until the second half of the year.
The infrastructure build-out of our Husky 1 / North Dry Ridge ('H1/NDR') mines in Idaho is progressing as planned with first ore shipments to the Conda plant scheduled for later this year. Moreover, the Board of Directors recently approved a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant.
Phosphate prices increased steadily during second quarter and the positive supply and demand fundamentals suggest fertilizer prices are likely to remain at elevated levels, leaving us well positioned for the second half of the year.'
Q2 2025 Financial Highlights
For Q2 2025, the Company's financial highlights were as follows:
Revenues of $126.8 million in Q2 2025 compared to $105.1 million in Q2 2024;
Adjusted EBITDA 1 of $31.8 million in Q2 2025 compared to $32.8 million in Q2 2024;
Net income of $24.8 million in Q2 2025 compared to $16.2 million in Q2 2024;
Basic earnings of C$0.18/share in Q2 2025 compared to C$0.12/share in Q2 2024; and
Free cash flow 1 of $10.8 million in Q2 2024 compared to $42.5 million in Q2 2024.
The marginal decrease in the Company's Q2 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to higher sulfur and sulfuric acid costs at Conda and share-based based payment expense, partially offset by higher revenues.
The increase in the Company's Q2 2025 net income compared to Q2 2024 was primarily due to fair value gain on investments, lower finance expenses, and lower income tax expense.
The Company's total capex 1 spend in Q2 2025 was $28.8 million compared to $30.2 million in Q2 2024 with the decrease primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) at Conda and sulfuric acid plant turnaround in 2024 at Arraias, partially offset by an increase in growth capex 1.
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1 Adjusted EBITDA, free cash flow, total capex, and growth capex are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below. International Financial Reporting Standards ('IFRS').
H1 2025 Financial Highlights
For H1 2025, the Company's financial highlights were as follows:
Revenues of $262.5 million in H1 2025 compared to $233.1 million in H1 2024;
Adjusted EBITDA of $71.1 million in H1 2025 compared to $76.0 million in H1 2024;
Net income of $60.7 million in H1 2025 compared to $39.9 million in H1 2024;
Basic earnings of C$0.44/share in H1 2025 compared to C$0.28/share in H1 2024; and
Free cash flow of $42.1 million in H1 2025 compared to $60.2 million in H1 2024.
The decrease in the Company's H1 2025 adjusted EBITDA compared to H1 2024 was primarily due to higher sulfur and sulfuric acid costs at Conda, which were partially offset by higher revenues.
The increase in the Company's H1 2025 net income compared to H1 2024 was primarily due to the gain on the sale of the Araxá project, fair value gain on investment, and lower finance expenses, which were partially offset by withholding tax expenses related to the sale of the Araxá project.
The Company's total capex spend in H1 2025 was $38.7 million compared to $36.6 million in H1 2024 with the increase primarily due to development activities at Conda (H1/NDR and magnesium oxide reduction initiatives), and activities related to the Fertilizer Restart Program at Arraias (the 'Fertilizer Restart Program').
As of June 30, 2025, the Company's financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $154.6 million;
Net debt 2 of $(2.5) million; and
Net leverage ratio 2 of (0.0)x.
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2 Trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below.
FY 2025 Market and Financial Outlook
Market Outlook
Phosphate fertilizer prices increased significantly in Q2 2025 from the previous quarter due to lower than expected diammonium phosphate ('DAP') and MAP exports from China and continued high demand in key import markets, including India, Brazil and Ethiopia. In the US, the implementation of tariffs caused a slowdown in imports, resulting in higher US phosphate prices. Due to the nature of the Company's MAP offtake agreement, the full benefit of the higher pricing will be reflected in the second half of 2025.
Global grain and oilseed pricing remains soft, despite a very low stocks-to-use ratio outside of China. Low grain prices are challenging phosphate affordability globally, as overall affordability is now the weakest since the 2008 financial crash, though the phosphate market is supply limited and remains constructive. Inventories of grains and oilseeds outside of China are expected to decrease through the current crop year, resulting in a stock-to-use ratio that is projected to be comparable to those levels experienced during the food crises in 2007 and 2008. Despite those factors, crop prices have been limited in appreciation due to the large planted corn acreage in the US and uncertainty around tariffs and international demand for US grain.
The Company expects phosphate pricing to remain strong through the second half of 2025, supported by the following factors:
sustained global fertilizer demand, mainly from government-backed purchasing programs, and low global inventory levels;
ongoing export restrictions from China; and
limited imports into the US due to evolving tariff policies.
Financial Outlook
The Company maintained its guidance for 2025 as follows:
(in millions of US Dollars Projected
except as otherwise noted) FY 2025
Sales Volumes (thousands of tonnes P 2 O 5) 3 340-360
Corporate selling, general and administrative expenses 4 $17-20
Maintenance capex 4 $13-23
Growth capex 4 $63-83
Environmental and asset retirement obligations payments $5-7
Q2 and H1 2025 Market Highlights
MAP New Orleans ('NOLA') prices averaged $690/st in Q2 2025 compared to $558/st in Q2 2024, up 24% year-over-year, and averaged $643/st in H1 2025 compared to $591/st in H1 2024, up 9% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
weaker than expected Chinese exports of MAP;
continued strong global demand, particularly from Africa, India and Brazil; and
uncertainty surrounding US trade policy.
June 30, 2025, Highlights
As of June 30, 2025, the Company had trailing 12 months Adjusted EBITDA of $154.6 million compared to $159.5 million as of December 31, 2024 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA during Q2 2025 as compared to Q2 2024 described above.
As of June 30, 2025, the Company had net debt of $(2.5) million compared to $26.8 million as of December 31, 2024, with the reduction primarily due to higher cash and cash equivalents and lower debt. The Company's net debt as of June 30, 2025 was comprised of $98.1 million in cash and $95.6 million in debt (gross of deferred financing costs). As of June 30, 2025 and the end of 2024, the Company's net leverage ratio was (0.0)x and 0.2x, respectively.
As of June 30, 2025, the Company had liquidity 4 of $178.1 million comprised of $98.1 million in cash and $80.0 million in undrawn borrowing capacity under its $80.0 million asset-based revolving credit facility ('ABL Facility').
Operations Highlights and Mine Development
Environmental, Health, and Safety ('EHS')
For Q2 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated total recordable incident frequency rate ('TRIFR') of 0.47.
For H1 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated TRIFR of 0.47.
Conda
In Q2 2025, Conda
Produced 79,606 tonnes P 2 O 5 compared to 69,532 tonnes P 2 O 5 in Q2 2024 with the increase due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days);
Generated revenues of $116.6 million compared to $101.8 million in Q2 2024 with the increase primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and
Generated Adjusted EBITDA of $32.9 million compared to $37.2 million in Q2 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics.
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3 Sales volumes reflect quantity in P2O5 of Conda sales projections.
4 Corporate selling, general and administrative expenses, maintenance capex, growth capex and liquidity are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see 'Non-IFRS financial measures' below.
In H1 2025, Conda:
Produced 170,806 tonnes P 2 O 5 compared to 159,778 tonnes P 2 O 5 in H1 2024 with the increase primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) and a shift from MAP to SPA production, resulting in higher P 2 O 5 production from similar throughput;
Generated revenues of $244.9 million compared to $224.7 million in H1 2024 primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and
Generated Adjusted EBITDA of $73.8 million compared to $83.8 million in H1 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics.
MgO Reduction Project
In June 2025, the Company received authorization from the Board of Directors to proceed with a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant (the 'MgO Reduction Project').
Exploration and Appraisal Program at Conda
As capital work at H1/NDR continues with first ore shipments expected in 2H 2025, the Company is focused on identifying and pursuing opportunities to add additional resources and reserves to the project to extend mine life beyond the current NI 43-101 - Standards of Disclosures for Mineral Projects ('NI 43-101') estimate of mid-2037. To pursue this objective, the Company has commenced a multi-year, multi-lease exploration program, resource evaluation and permitting program at Conda with an expected annual cost of approximately $6-8 million.
The in-fill drilling program is focused on further delineating upside potential of the Husky 1 Lease through a targeted reserve delineation appraisal that will reduce drill spacing to 250ft on center versus current spacing at 500ft.
Construction of the main access road on the previously unexplored Dry Ridge Lease started in Q3 and is ahead of schedule, allowing for initial resource delineation drilling on the Dry Ridge Lease to begin in mid Q3 2025. The initial drill program will consist of drilling on 2,400ft centers to gain crucial geologic and metallurgical information that will be used to generate initial resource models that will drive future mine planning resource estimation and permitting studies.
Core drilling and geologic modeling of the Husky 3 and Husky 4 Leases is ahead of schedule with the Bureau of Land Management and US Forest Service issuing Approval of the Exploration Plan of Operations and Environmental Assessment in late July, paving the way for exploration core drilling to begin in September, ahead of the previously proposed plan. This initial drilling will identify the site geology and characterize the resource for future mine development along the current mine trend.
In addition to these activities, preliminary work has commenced on environmental baseline resource studies that will be required for future National Environmental Policy Act permitting and regulatory approvals. These geographically near-field opportunities have the potential to extend mine life beyond the current NI 43-101 estimate of mid-2037 in an efficient manner with the objective of utilizing the current infrastructure being built out at H1/NDR.
Arraias
In Q2 2025, Arraias:
Produced 36,349 tonnes of sulfuric acid compared to 16,652 tonnes in Q2 2024 with the increase due to higher customer demand and acid consumption with the start of Partially Acidulated Phosphate Rock ('PAPR') and Granulated Partially Acidulated Phosphate Rock ('G-PAPR') production. In addition, production volumes were lower in Q2 2024 due to planned 45-day sulfuric acid plant turnaround;
Produced 10,194 tonnes P 2 O 5, compared to 3,794 tonnes P 2 O 5 in Q2 2024, with the increase due to ramp up of Direct Application Phosphate Rock ('DAPR') and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and
Generated Adjusted EBITDA of $3.4 million compared to a loss of $(0.5) million in Q2 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales during Q2 2025.
In H1 2025, Arraias:
Produced 74,050 tonnes of sulfuric acid compared to 49,868 tonnes in H1 2024 driven by higher customer demand and avid consumption with the start of PAPR and G-PAPR production;
Produced 10,727 tonnes P 2 O 5 of DAPR and PAPR compared to 3,794 tonnes P 2 O 5 in H1 2024, with the increase due to the ramp up of DAPR and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and
Generated Adjusted EBITDA of $5.4 million compared to a loss of $(0.1) million in H1 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales in 2025.
Q2 2025 Financial Results and Business Update Webcast
An on-demand recorded webcast of management commentary that reviews the Q2 2025 financial results, provides an update on the business and addresses analysts' and investors' recent frequently asked questions will be available on Monday, August 11, 2025 at 4:30 p.m. ET. The webcast will be available on the Presentations & Events page of the Company's website www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
About Itafos
The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity:
approximately 550kt per year of MAP, MAP with micronutrients ('MAP+'), superphosphoric acid ('SPA'), merchant grade phosphoric acid ('MGA') and ammonium polyphosphate ('APP')
approximately 27kt per year of hydrofluorosilicic acid ('HFSA')
Arraias – a vertically integrated phosphate fertilizer business located in Tocantins,Brazil, with the following production capacity:
approximately 500kt per year of single superphosphate ('SSP') and SSP with micronutrients ('SSP+')
approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity)
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau; and
Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil
The Company is a Delaware corporation headquartered in Houston, Texas. The Company's shares trade on the TSX-V under the ticker
'IFOS'. The Company's shares also trade in the US on the OTCQX® Best Market ('OTCQX') under the ticker symbol 'ITFS'. The Company's principal shareholder is CL Fertilizers Holding LLC ('CLF'). CLF is an affiliate of global private investment firm Castlelake, L.P.
For more information, or to join the Company's mailing list, please visit www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect to: import and export tariffs; the Company's planned operations, strategies and projects, including the MgO Reduction Project; the timing for the commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life; and economic and market trends with respect to the global agriculture and phosphate fertilizer markets. All information other than information of historical fact is forward-looking information. Statements that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimates and/or assumptions in respect of the Company's financial and business outlook are forward-looking information. The use of any of the words 'intend', 'anticipate', 'plan', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'should', 'would', 'believe', 'predict' and 'potential' and similar expressions are intended to identify forward-looking information.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management, some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company's expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company's mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement obligations, general economic changes, including inflation and foreign exchange rates; the actions of the Company's competitors and counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive.
Although the Company has attempted to identify crucial factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Additional risks and uncertainties affecting the forward-looking information contained in this news release are described in greater detail in the Company's Annual Information Form and current Management's Discussion and Analysis available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.itafos.com. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The reader is cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable securities law. The forward-looking information included in this news release is expressly qualified by this cautionary statement and is made as of the date of this news release.
This news release contains future-oriented financial information and financial outlook information (together, 'FOFI') about the Company's prospective results of operations, including statements regarding expected Adjusted EBITDA, net income, basic earnings per share, corporate selling, general and administrative expenses, maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management's expectations regarding anticipated activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's reasonable estimates and judgements; however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook information speaks only as of the date on which it is made and the Company undertakes no obligation to publicly update or revise any financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contacts:
For Investor Relations:
Matthew O'Neill
Executive Vice President & Chief Financial Officer
investor@itafos.com
713-242-8446
For Media:
Alliance Advisors IR
Fatema Bhabrawala
Director, Media Relations
fbhabrawala@allianceadvisors.com
647-620-5002
Scientific and Technical Information
The scientific and technical information contained in this news release related to Mineral Resources for Conda has been reviewed and approved by Jerry DeWolfe, Professional Geologist (P.Geo.) with the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time employee of WSP Canada Inc. and is independent of the Company. The scientific and technical information contained in this news release related to Mineral Reserves for Conda has been reviewed and approved by Terry Kremmel, Professional Engineer (P.E.) licensed by the States of Missouri and North Carolina. Mr. Kremmel is a full-time employee of WSP USA, Inc. and is independent of the Company. The Company's latest technical report in respect of Conda is entitled, 'NI 43-101 Technical Report Itafos Conda Project, Idaho, USA,' with an effective date of July 1, 2023 and is available under the Company's website at www.itafos.com and under the Company's profile on SEDAR+ at www.sedarplus.ca.
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS measures that management considers to evaluate the Company's operational and financial performance. Non-IFRS measures are a numerical measure of a company's performance, that either include or exclude amounts that are not normally included or excluded from the most directly comparable IFRS measures. Management believes that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under IFRS and that the methodology applied by the Company in calculating such non-IFRS measures may differ among companies and analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are included below.
Non-IFRS measure Definition Most directly comparable IFRS measure Why the Company uses the measure
EBITDA Earnings before interest, taxes, depreciation, depletion and amortization Net income (loss) and operating income (loss) EBITDA is a valuable indicator of the Company's ability to generate operating income
Adjusted EBITDA EBITDA adjusted for non-cash, extraordinary, non-recurring
and other items unrelated to the Company's
core operating activities Net income (loss) and operating income (loss) Adjusted EBITDA is a valuable indicator of the Company's ability to generate operating income from its core operating activities normalized to remove the impact of non-cash, extraordinary and non-recurring items. The Company provides guidance on Adjusted EBITDA as useful supplemental information to investors, analysts, lenders, and others
Trailing 12 months Adjusted EBITDA Adjusted EBITDA for the current and preceding three quarters Net income (loss) and operating income (loss) for the current and preceding three quarters The Company uses the trailing 12 months Adjusted EBITDA in the calculation of the net leverage ratio (non-IFRS measure)
Total capex Additions to property, plant, and equipment and mineral properties adjusted for additions to asset retirement obligations, additions to right-of-use assets and capitalized interest Additions to property, plant and equipment and mineral properties The Company uses total capex in the calculation of total cash capex (non-IFRS measure)
Maintenance capex Portion of total capex relating to the maintenance of ongoing operations Additions to property, plant and equipment and mineral properties Maintenance capex is a valuable indicator of the Company's required capital expenditures to sustain operations at existing levels
Growth capex Portion of total capex relating to the development of growth opportunities Additions to property, plant and equipment and mineral properties Growth capex is a valuable indicator of the Company's capital expenditures related to growth opportunities.
Total cash capex Total capex less accrued capex Additions to property, plant and equipment and mineral properties The Company uses total cash capex in the calculation of cash growth capex (non-IFRS measure)
Cash maintenance capex Maintenance capex less accrued maintenance capex Additions to property, plant and equipment and mineral properties The Company uses cash maintenance capex in the calculation of cash growth capex (non-IFRS measure)
Cash growth capex Growth capex less accrued growth capex Additions to property, plant and equipment and mineral properties The Company uses cash growth capex in the calculation of free cash flow (non-IFRS measure).
Net debt Debt less cash and cash equivalents plus deferred financing costs (does not consider lease liabilities) Current debt, long-term debt and cash and cash equivalents Net debt is a valuable indicator of the Company's net debt position as it removes the impact of deferring financing costs.
Net leverage ratio Net debt divided by trailing 12 months Adjusted EBITDA Current debt, long-term debt and cash and cash equivalents; net income (loss) and operating income (loss) for the current and preceding three quarters The Company's net leverage ratio is a valuable indicator of its ability to service its debt from its core operating activities.
Liquidity Cash and cash equivalents plus undrawn committed borrowing capacity Cash and cash equivalents Liquidity is a valuable indicator of the Company's liquidity
Free cash flow Cash flows from operating activities, which excludes payment of interest expense, plus cash flows from investing activities Cash flows from operating activities and cash flows from investing activities Free cash flow is a valuable indicator of the Company's ability to generate cash flows from operations after giving effect to required capital expenditures to sustain operations at existing levels. Free cash flow is a valuable indicator of the Company's cash flow available for debt service or to fund growth opportunities. The Company provides guidance on free cash flow as useful supplemental information to investors, analysts, lenders, and others.
Corporate selling, general and administrative expenses Corporate selling, general and administrative less share-based payments expense. Selling, general and administrative expenses The Company uses corporate selling, general and administrative expenses to assess corporate performance.
For the three months ended June 30, 2025 and 2024
For the three months ended June 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Net income (loss) $ 20,698 $ 2,614 $ (418) $ 1,925 $ 24,819
Finance (income) expense, net 1,393 (138) — 1,162 2,417
Current and deferred income tax expense (recovery) 5,377 — — (4,451) 926
Depreciation and depletion 5,136 679 — 77 5,892
EBITDA $ 32,604 $ 3,155 $ (418) $ (1,287) $ 34,054
Unrealized foreign exchange loss — 113 104 — 217
Share-based payment expense — — — 1,380 1,380
Transaction costs — — — 12 12
Other (income) expense, net 278 170 — (4,284) (3,836)
Adjusted EBITDA $ 32,882 $ 3,438 $ (314) $ (4,179) $ 31,827
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Operating income (loss) $ 27,746 $ 2,759 $ (314) $ (5,384) $ 24,807
Depreciation and depletion 5,136 679 — 77 5,892
Realized foreign exchange gain — — — (264) (264)
Share-based payment expense — — — 1,380 1,380
Transaction costs — — — 12 12
Adjusted EBITDA $ 32,882 $ 3,438 $ (314) $ (4,179) $ 31,827
For the three months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Net income (loss) $ 22,471 $ (1,768) $ (35) $ (4,462) $ 16,206
Finance (income) expense, net 954 (206) — 2,435 3,183
Current and deferred income tax expense (recovery) 7,286 — — (2,062) 5,224
Depreciation and depletion 5,835 494 5 83 6,417
EBITDA $ 36,546 $ (1,480) $ (30) $ (4,006) 31,030
Unrealized foreign exchange (gain) loss — 1,039 (253) — 786
Share-based payment expense — — — 435 435
Other (income) expense, net 653 (57) 3 (40) 559
Adjusted EBITDA $ 37,199 $ (498) $ (280) $ (3,611) $ 32,810
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Operating income (loss) $ 31,372 $ (992) $ (285) $ (4,120) $ 25,975
Depreciation and depletion 5,835 494 5 83 6,417
Realized foreign exchange gain (8) — — (9) (17)
Share-based payment expense — — — 435 435
For the six months ended June 30, 2025 and 2024
For the six months ended June 30, 2025, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Net income (loss) $ 43,416 $ 4,480 $ (862) $ 13,656 $ 60,690
Finance (income) expense, net 2,470 (305) — 2,500 4,665
Current and deferred income tax expense 12,016 — — 1,953 13,969
Depreciation and depletion 15,374 1,293 — 154 16,821
EBITDA $ 73,276 $ 5,468 $ (862) $ 18,263 $ 96,145
Unrealized foreign exchange (gain) loss — (258) 264 — 6
Share-based payment expense — — — 3,877 3,877
Transaction costs — — — 104 104
Other (income) expense, net 511 212 — (29,749) (29,026)
Adjusted EBITDA $ 73,787 $ 5,422 $ (598) $ (7,505) $ 71,106
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Operating income (loss) $ 58,417 $ 4,129 $ (598) $ (11,356) $ 50,592
Depreciation and depletion 15,374 1,293 — 154 16,821
Realized foreign exchange loss (4) — — (284) (288)
Share-based payment expense — — — 3,877 3,877
Transaction costs — — — 104 104
Adjusted EBITDA $ 73,787 $ 5,422 $ (598) $ (7,505) $ 71,106
For the six months ended June 30, 2024, the Company had EBITDA and Adjusted EBITDA by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Net income (loss) $ 51,983 $ (1,491) $ (228) $ (10,341) $ 39,923
Finance (income) expense, net 2,387 (458) 1 4,822 6,752
Current and deferred income tax expense (recovery) 13,770 — — (4,392) 9,378
Depreciation and depletion 14,761 1,195 10 168 16,134
EBITDA $ 82,901 $ (754) $ (217) $ (9,743) 72,187
Unrealized foreign exchange (gain) loss — 1,650 (320) — 1,330
Share-based payment expense — — — 857 857
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Other (income) expense, net 864 (1,012) 4 (40) (184)
Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Operating income (loss) $ 69,009 $ (1,311) $ (543) $ (9,942) $ 57,213
Depreciation and depletion 14,761 1,195 10 168 16,134
Realized foreign exchange gain (5) — — (9) (14)
Share-based payment expense — — — 857 857
Transaction costs — — — 227 227
Non-recurring compensation expenses — — — 1,560 1,560
Adjusted EBITDA $ 83,765 $ (116) $ (533) $ (7,139) $ 75,977
As of June 30, 2025 and December 31, 2024
As of June 30, 2025, and December 31, 2024 the Company had trailing 12 months Adjusted EBITDA 5 as follows:
(unaudited in thousands of US Dollars) June 30,
2025 December 31,
2024
For the three months ended June 30, 2025 $ 31,827 $ —
For the three months ended March 31, 2025 39,279 —
For the three months ended December 31, 2024 45,473 45,473
For the three months ended September 30, 2024 38,011 38,011
For the three months ended June 30, 2024 — 32,810
For the three months ended March 31, 2024 — 43,167
Trailing 12 months Adjusted EBITDA $ 154,590 $ 159,461
TOTAL CAPEX
For the three months ended June 30, 2025 and 2024
For the three months ended June 30, 2025, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Additions to property, plant and equipment $ 36,024 $ 3,211 $ 6 $ — $ 39,241
Additions to mineral properties 510 — 400 — 910
Additions to property, plant and equipment related asset retirement obligations 2,098 (262) — — 1,836
Additions to right-of-use assets (11,710) (51) — — (11,761)
Capitalized interest in property, plant, and equipment and mineral properties (1,418) — — — (1,418)
Total capex $ 25,504 $ 2,898 $ 406 $ — $ 28,808
Accrued capex (4,034) — — — (4,034)
Total cash capex $ 21,470 $ 2,898 $ 406 $ — $ 24,774
Maintenance capex $ 11,877 $ 63 $ — $ — $ 11,940
Accrued maintenance capex (542) — — — (542)
Cash maintenance capex $ 11,335 $ 63 $ — $ — $ 11,398
Growth capex $ 13,627 $ 2,835 $ 406 $ — $ 16,868
Accrued growth capex (3,492) — — — (3,492)
Cash growth capex $ 10,135 $ 2,835 $ 406 $ — $ 13,376
________________________________
5 Please refer to the press releases issued by the Company relating to the filings for the March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024 periods for the quantitative reconciliation.
For the three months ended June 30, 2024, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Additions to property, plant and equipment $ 22,285 $ 1,906 $ (1) $ 3 $ 24,193
Additions to mineral properties 7,085 — 387 — 7,472
Additions to property, plant and equipment related asset retirement obligations (1,897) 589 — — (1,308)
Additions to right-of-use assets — (179) 1 — (178)
Total capex $ 27,473 $ 2,316 $ 387 $ 3 $ 30,179
Accrued capex (11,009) — — — (11,009)
Total cash capex $ 16,464 $ 2,316 $ 387 $ 3 $ 19,170
Maintenance capex $ 20,297 $ 1,965 $ — $ 3 $ 22,265
Accrued maintenance capex (9,467) — — — (9,467)
Cash maintenance capex $ 10,830 $ 1,965 $ — $ 3 $ 12,798
Growth capex $ 7,176 $ 351 $ 387 $ — $ 7,914
Accrued growth capex (1,542) — — — (1,542)
Cash growth capex $ 5,634 $ 351 $ 387 $ — $ 6,372
For the six months ended June 30, 2025 and 2024
For the six months ended June 30, 2025, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Additions to property, plant and equipment $ 40,683 $ 5,404 $ 21 $ — $ 46,108
Additions to mineral properties 8,497 225 414 — 9,136
Additions to asset retirement obligations (1,008) (632) — — (1,640)
Additions to right-of-use assets (11,710) (311) (15) — (12,036)
Capitalized interest in property, plant, and equipment and mineral properties (2,839) — — — (2,839)
Total capex $ 33,623 $ 4,686 $ 420 $ — $ 38,729
Accrued capex (5,912) — — — (5,912)
Total cash capex $ 27,711 $ 4,686 $ 420 $ — $ 32,817
Maintenance capex $ 12,324 $ 111 $ — $ — $ 12,435
Accrued maintenance capex (575) — — — (575)
Cash maintenance capex $ 11,749 $ 111 $ — $ — $ 11,860
Growth capex $ 21,299 $ 4,575 $ 420 $ — $ 26,294
Accrued growth capex (5,337) — — — (5,337)
Cash growth capex $ 15,962 $ 4,575 $ 420 $ — $ 20,957
For the six months ended June 30, 2024, the Company had capex by segment as follows:
(unaudited in thousands of US Dollars) Conda Arraias Development
and
exploration Corporate Total
Additions to property, plant and equipment $ 20,842 $ 3,015 $ (2) $ 3 $ 23,858
Additions to mineral properties 10,847 — 387 — 11,234
Additions to asset retirement obligations 1,090 766 — — 1,856
Additions to right-of-use assets — (341) 2 — (339)
Total capex $ 32,779 $ 3,440 $ 387 $ 3 $ 36,609
Accrued capex (13,063) — — — (13,063)
Total cash capex $ 19,716 $ 3,440 $ 387 $ 3 $ 23,546
Maintenance capex $ 20,716 $ 2,373 $ — $ 3 $ 23,092
Accrued maintenance capex (9,646) — — — (9,646)
Cash maintenance capex $ 11,070 $ 2,373 $ — $ 3 $ 13,446
Growth capex $ 12,063 $ 1,067 $ 387 $ — $ 13,517
Accrued growth capex (3,417) — — — (3,417)
Cash growth capex $ 8,646 $ 1,067 $ 387 $ — $ 10,100
NET DEBT AND NET LEVERAGE RATIO
As of June 30, 2025, and December 31, 2024 the Company had net debt and net leverage ratio as follows:
(unaudited in thousands of US Dollars June 30, December 31,
except as otherwise noted) 2025 2024
Current debt $ 11,011 $ 11,163
Long-term debt 82,142 86,804
Cash and cash equivalents (98,055) (74,372)
Deferred financing costs related to the Credit Facilities 2,400 3,207
Net debt $ (2,502) $ 26,802
Trailing 12 months Adjusted EBITDA $ 154,590 $ 159,461
Net leverage ratio (0.0)x 0.2x
LIQUIDITY
As of June 30, 2025, and December 31, 2024 the Company had liquidity as follows:
June 30, December 31,
(unaudited in thousands of US Dollars) 2025 2024
Cash and cash equivalents $ 98,055 $ 74,372
ABL Facility undrawn borrowing capacity 80,000 80,000
Liquidity $ 178,055 $ 154,372
FREE CASH FLOW
For the three and six months ended June 30, 2025 and 2024, the Company had free cash flow as follows:
CORPORATE SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
For the three and six months ended June 30, 2025 and 2024, the Company had corporate selling, general and administrative expenses as follows:
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National Post
13 minutes ago
- National Post
Dentalcorp Reports Second Quarter 2025 Results
Article content Revenue of $435.2 million, an increase of 8.9% from the second quarter of 2024, with Same Practice Revenue Growth ('SPRG') 1 of 3.3%. Adjusted EBITDA 1 of $81.2 million, an increase of 9.9% compared to the same period in 2024; Adjusted EBITDA Margin 1 of 18.7%, an increase of 20 basis points over the same period in 2024. Adjusted Free Cash Flow 1 and Adjusted Free Cash Flow per Share 1 of $45.6 million and $0.23, an increase of 12.0% and 9.5%, respectively, over the same period in 2024; Adjusted Net Income 1 of $30.7 million. Net debt / PF Adjusted EBITDA after rent Ratio 1 of 3.65x, a decrease of 0.46x compared to the same period in 2024. Acquired 8 new practice locations which are expected to generate $3.8 million in PF Adjusted EBITDA after rent 1 at 6.3x ($12.1 million and 7.1x, respectively, for the six months ended June 30, 2025) expanding Dentalcorp's national footprint to 575 locations. Achieved a 91.8% recurring patient visit rate 1, reflecting predictable and continued patient demand across the network. Article content Third Quarter 2025 Outlook Article content Revenue and SPRG 1 for the third quarter of 2025 are estimated to increase by 10.0% to 12.0% (to between $412.9M and $420.4M) and between 3.0% to 5.0%, from the third quarter of 2024, respectively. Adjusted EBITDA Margin 1 for the third quarter of 2025 is estimated to increase by 20 basis points from the third quarter of 2024, to 18.6%, and Adjusted EBITDA 1 is estimated to increase to between $76.8M and $78.2M. Subsequent to the quarter, closed $5.5 million of PF Adjusted EBITDA after rent 1 representing 7 practices, and when combined with signed LOIs and acquisitions completed as of June 30, 2025, is greater than our 2025 full-year acquisition target of $25 million of PF Adjusted EBITDA after rent 1. Article content (¹) Article content Non-IFRS financial measure, non-IFRS ratio, or supplementary financial measure. For comprehensive definitions and quantitative reconciliations, please refer to the 'Non-IFRS and Other Financial Measures' section within this news release. Article content TORONTO — dentalcorp Holdings Ltd. ('Dentalcorp' or the 'Company') (TSX: DNTL), Canada's largest and one of North America's fastest growing networks of dental practices, today announced its financial and operating results for the second quarter ended June 30, 2025, reaffirmed the full year 2025 guidance previously provided in the Company's news release dated March 21, 2025, and announced its outlook for the third quarter of 2025. All financial figures are in Canadian dollars unless otherwise indicated. Article content 'Our teams across the country delivered another quarter of strong results, with revenue and Adjusted EBITDA growth of approximately 9% and 10%, respectively, over the second quarter of 2024, and setting new highs for both metrics. We continued to realize operating leverage across the business, with second quarter Adjusted EBITDA Margin expanding 20 basis points over the second quarter of 2024 to 18.7%, marking our fifth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion,' said Graham Rosenberg, CEO and Chairman of Dentalcorp. Article content 'We generated a record $45.6 million in Adjusted Free Cash Flow in the second quarter of 2025, representing an increase of approximately 12% over the second quarter of 2024,' Rosenberg continued. 'This led to continued deleveraging, with our Net Debt / PF Adjusted EBITDA after rent Ratio decreasing to 3.65x, a reduction of 0.46x from the second quarter of 2024, marking our seventh consecutive quarter of deleveraging,' Rosenberg said. Article content 'Following a strong second quarter of 2025, we are carrying this momentum into the third quarter, anticipating SPRG of 3.0% to 5.0%, revenue growth of 10.0% to 12.0%, and Adjusted EBITDA Margin expansion of 20 basis points over the third quarter of 2024, to 18.6%,' said Nate Tchaplia, President and Chief Financial Officer. 'During the second quarter of 2025, we acquired 8 new practices that are expected to generate $3.8 million in PF Adjusted EBITDA after rent, at an average multiple of 6.3x. We are pleased to note that as of today, we have closed on, or signed LOIs for, acquisitions representing PF Adjusted EBITDA after rent in excess of our 2025 acquisition target of $25 million,' Tchaplia continued. Article content 'With regards to the federal government's Canadian Dental Care Plan ('CDCP'), we have treated over 125,000 CDCP patients with 95% of our practices currently accepting CDCP patients. Second quarter 2025 SPRG was impacted by visit deferrals, as the newly eligible 18-64 cohort began to receive treatment in July. Looking ahead, we anticipate minimal CDCP-related visit deferrals for the balance of the year as the program is now fully deployed,' Tchaplia concluded. Article content 'We remain on track to meet or exceed our full year 2025 guidance, where we expect to see SPRG of 3.0% to 5.0%, an accelerated pace of M&A with acquisitions representing $25 million+ of PF Adjusted EBITDA after rent, Pre-tax Adjusted Free Cash flow per Share growth of 15%+, and another year of Adjusted EBITDA Margin expansion of 20+ basis points,' said Rosenberg. Article content (a) Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See the 'Non-IFRS and Other Financial Measures and Ratios' section of this release for definitions and quantitative reconciliations. Article content Conference Call Notification Article content The Company will hold a conference call to provide a business update on Friday, August 8, 2025, at 8:30 a.m. ET. A question-and-answer session will follow the business update. Article content Non-IFRS and Other Financial Measures and Ratios Article content As appropriate, we supplement our results of operations determined in accordance with IFRS with certain non-IFRS and other financial measures and ratios as we believe these non-IFRS and other financial measures are useful to investors, lenders and others in assessing our performance and highlighting trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management also uses non-IFRS measures for purposes of comparing to prior periods; preparing annual operating budgets; developing future projections and earnings growth prospects; measuring the profitability of ongoing operations; analyzing our financial condition, business performance and trends, including the operating performance of the business after taking into consideration the acquisitions of dental practices; and determining components of employee compensation. As such, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management's perspective, including how we evaluate our financial performance and how we manage our capital structure. We also believe that securities analysts, investors and other interested parties frequently use these non-IFRS and other financial measures and industry metrics in the evaluation of issuers. Article content These non-IFRS and other financial measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, may include or exclude certain items as compared to similar IFRS measures and may not be comparable to similarly-titled measures reported by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For further information on non-IFRS and other financial measures and ratios, including the most directly comparable IFRS measures, composition of the measures, a description of how we use these measures, an explanation of how these measures are useful to investors and applicable reconciliations, refer to the 'Non-IFRS and Other Financial Measures', 'Non-IFRS Financial Measures', 'Non-IFRS Ratios' and 'Certain Supplementary Financial Measures' sections of management's discussion and analysis of operations for the three and six months ended June 30, 2025, which is available on the Company's profile on SEDAR+ at Article content 'EBITDA' means, for the applicable period, net income (loss) and comprehensive income (loss) plus (a) net finance costs, (b) income tax expense (recovery), and (c) depreciation and amortization. Management does not use EBITDA as a financial performance metric, but we present EBITDA to assist investors in understanding the mathematical development of Adjusted EBITDA and Same Practice EBITDA Growth. The most comparable IFRS measure to EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content Adjusted EBITDA Article content 'Adjusted EBITDA' is calculated by adding to EBITDA certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) net impact of unrealized foreign exchange gains or losses on non-cash balances; (b) share-based compensation; (c) external acquisition expenses; (d) change in fair value of financial instruments at fair value through profit or loss; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) post-employment benefits; and (k) short-term benefits. Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements to assess the financial performance of our business without regard to the effects of interest, depreciation and amortization costs, expenses that are not considered reflective of underlying business performance, and other expenses that are expected to be one-time or non-recurring. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents post-employment benefits provided to the Company's former President. (g) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content Adjusted Free Cash Flow Article content 'Adjusted free cash flow' is calculated by adding or subtracting from cash flow from operating activities: (a) external acquisition expenses; (b) other corporate costs; (c) post-employment benefits; (d) short-term benefits; (e) repayment of principal on leases; (f) maintenance capital expenditure; and (g) changes in working capital. We use Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Adjusted free cash flow is cash flow from operating activities, for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (c) Represents post-employment benefits provided to the Company's former President. (d) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. (e) Represents capital expenditures for general maintenance and safety compliance of dental practices for the reporting period. (f) Represents the change in non-cash working capital items for the reporting period. Article content 'Adjusted free cash flow per Share' means Adjusted free cash flow Article content divided Article content by the total number of Multiple Voting Shares and Subordinate Voting Shares on a fully diluted basis. Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Pre-tax Adjusted Free Cash Flow Article content 'Pre-tax Adjusted free cash flow' in respect of a period means Adjusted free cash flow less cash income tax (recovery) expense. We use Pre-tax Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Pre-tax Adjusted free cash flow is cash flow from operating activities. Article content divided by Article content the total number of Multiple Voting Shares and Subordinate Voting Shares Article content Article content on a fully diluted basis. Pre-tax Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Adjusted Net Income Article content 'Adjusted net income' is calculated by adding to Net income (loss) and comprehensive income (loss) certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) amortization of intangible assets; (b) share-based compensation; (c) change in fair value of financial instruments at fair value through profit or loss; (d) external acquisition expenses; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) loss on modification of borrowings; (k) post-employment benefits; (l) short-term benefits; and (m) the tax impact of the above. We use Adjusted net income to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted net income is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents the loss on modification of the Company's outstanding credit facilities upon entering into an amended and restated credit agreement. (g) Represents post-employment benefits provided to the Company's former President. (h) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content PF Adjusted EBITDA Article content 'PF Adjusted EBITDA' in respect of a period means Adjusted EBITDA for that period plus the Company's estimate of the additional Adjusted EBITDA that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period, calculated in accordance with the methodology described in the reconciliation table in 'Reconciliation of Non-IFRS Measures'. Both creditors and the Company use PF Adjusted EBITDA to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. We also use PF Adjusted EBITDA to determine components of employee compensation. The most comparable IFRS measure to PF Adjusted EBITDA is Net loss and comprehensive loss. Article content (a) Represents the additional Adjusted EBITDA that we estimate would have been recorded if the Company's dental practice acquisitions had occurred on the first day of the applicable reporting period. These estimates are based on the amount of Practice-Level EBITDA budgeted by us to be earned by the relevant practices at the time of their acquisition by us. There can be no assurance that if we had acquired these practices on the first day of the applicable reporting period, they would have actually generated such budgeted Practice-Level EBITDA, nor is this estimate indicative of future results. Article content PF Adjusted EBITDA after rent Article content 'PF Adjusted EBITDA after rent' in respect of a period means PF Adjusted EBITDA less interest and principal repayments on leases and lease interest and principal repayments on acquisitions. Both creditors and the Company use PF Adjusted EBITDA after rent to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. The most comparable IFRS measure to PF Adjusted EBITDA after rent is Net loss and comprehensive loss. Article content PF Revenue Article content 'PF Revenue' in respect of a period means revenue for that period plus the Company's estimate of the additional revenue that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period. Given the highly acquisitive nature of our business, management believes PF Revenue is more reflective of our operating performance. We use PF Revenue to determine components of employee compensation. Article content Article content The most comparable IFRS measure to PF Revenue is revenue. Article content Net debt / PF Adjusted EBITDA after rent Ratio Article content 'Net debt / PF Adjusted EBITDA after rent Ratio' means non-current borrowings divided by PF Adjusted EBITDA after rent. We use Net debt / PF Adjusted EBITDA after rent Ratio to assess our borrowing capacity. Article content Same Practice Revenue Growth Article content 'Same Practice Revenue Growth' in respect of a period means the percentage change in revenue derived from Established Practices in that period as compared to revenue from the same dental practices in the corresponding period in the immediately prior year. Article content About Forward-Looking Information Article content This release includes forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including the Article content Securities Act (Ontario) Article content . Forward-looking information includes, but is not limited to, statements about the Company's objectives, strategies to achieve those objectives, our financial outlook, and the Company's beliefs, plans, expectations, anticipations, estimates, or intentions. Forward-looking information includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions suggesting future outcomes or events. Article content Our forward-looking information includes, but is not limited to, statements regarding the declaration of future dividends; and the information and statements under 'Third Quarter 2025 Outlook' relating to our goals for the third quarter of 2025 for Revenue, Same Practice Revenue Growth, Adjusted EBITDA Margin, PF Adjusted EBITDA after rent attributable to practices acquired in 2025 and our medium-term expectations regarding Same Practice Revenue Growth and Net Debt / PF Adjusted EBITDA after rent Ratio. Such forward-looking information relating to these metrics are not projections; they are goals based on the Company's current strategies and may be considered forward-looking information under applicable securities laws and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management. Article content The purpose of disclosing such forward-looking information is to provide investors with more information concerning the financial results that the Company currently believes are achievable based on the assumptions below. Readers are cautioned that the information may not be appropriate for other purposes. While these targets are based on underlying assumptions that management believes are reasonable in the circumstances, readers are cautioned that actual results may vary materially from those described above. Article content Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be different or materially different from those projected in the forward-looking statements. Forward-looking information is based on many factors and assumptions including, but not limited to, the impact of, and the enrollment of patients in, the CDCP; expectations regarding the Company's business, operations and capital structure; that the Company's acquisition program continues as it has historically, including the Company maintaining its ability to continue to make and integrate acquisitions at attractive valuations including a reduction in acquisition purchase multiples as compared to prior periods; the prevailing business environment; the Company's financial and operating results and financial condition; the Company's need for funds to finance ongoing operations or growth conditions; the Company's ability to realize pricing increases, materially driven by Provincial fee guides; a continued increase in patient visit volumes through patient recall and insourcing initiatives that drive the expansion of service offerings and frequency of visits to contribute to optimal patient care; the impact of the investments the Company has made in its corporate infrastructure and teams, and the upgrades to its core information technology systems; the Company's ability to mitigate anticipated supply chain disruptions, geopolitical risks, inflationary pressures and labour shortages, and generate cash flow; no changes in the competitive environment or legal or regulatory developments affecting our business; and visits by patients to our Practices at or above the same rate as current visits. Article content Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of known and unknown risk factors, many of which are beyond the control of the Company, and could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, the Company's potential inability to successfully execute its growth strategy and complete additional acquisitions; its dependence on the integration and success of its acquired dental practices; its dependence on the parties with which the Company has contractual arrangements and obligations; changes in relevant laws, governmental regulations and policy and the costs incurred in the course of complying with such changes; risks relating to the current economic environment, including the impact of any tariffs and retaliatory tariffs on the economy; risk associated with disease outbreaks; competition in the dental industry; increases in operating costs; litigation and regulatory risk; and the risk of a failure in internal controls and other factors described under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024. Accordingly, we warn readers to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding the Company's future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. All of the forward-looking information in this release is qualified by the cautionary statements herein. Article content About Dentalcorp Article content Article content Article content Article content Article content Contacts Article content For investor inquiries, please contact: Article content Investor Relations Article content Article content Nick Xiang Article content Article content Vice President, Corporate Finance Article content Article content Article content Article content (416) 558-8338 x 866 Article content Media Article content Article content Sebastien Bouchard Article content Article content Article content
Globe and Mail
13 minutes ago
- Globe and Mail
American Strategic Investment Co. Announces Second Quarter 2025 Results
American Strategic Investment Co. (NYSE: NYC) ('ASIC' or the 'Company'), a company that owns a portfolio of commercial real estate located within the five boroughs of New York City, announced today its financial and operating results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Revenue was $12.2 million compared to $15.8 million in the second quarter of 2024, primarily related to the sale of 9 Times Square in the prior year Net loss attributable to common stockholders was $41.7 million, compared to $91.9 million in the second quarter of 2024 Cash net operating income ('NOI') was $4.2 million, compared to $7.4 million in the second quarter of 2024 Adjusted EBITDA was $0.4 million, compared to $4.5 million in the second quarter of 2024 Portfolio occupancy was flat at 82.0%, compared to the first quarter of 2025 Weighted-average remaining lease term (1) grew to 6.0 years from 5.4 years at the end of the first quarter due to two long-term lease extensions at 123 William and 1140 Avenue of the Americas 77% of annualized straight-line rent from top 10 tenants (2) is derived from investment grade or implied investment grade (3) rated tenants with a weighted-average remaining lease term of 7.5 years as of June 30, 2025 Portfolio comprised of fixed and variable rate debt at a 6.4% weighted-average interest rate CEO Comments Nicholas Schorsch, Jr., Chief Executive Officer of ASIC commented, 'We remain focused on operating and creating value at our current assets, with a focus on tenant retention, as demonstrated by our lease renewal progress during the quarter which extended our weighted-average remaining lease term. More broadly, we continue to prioritize our initiative to opportunistically divest certain of our Manhattan assets and recycle the proceeds into higher-yielding assets to enhance our long-term portfolio value.' Financial Results (1) All per share data based on 2,541,402 and 2,518,176 diluted weighted-average shares outstanding for the three months ended June 30, 2025 and 2024, respectively. Real Estate Portfolio The Company's portfolio consisted of six properties comprised of 1.0 million rentable square feet as of June 30, 2025. Portfolio metrics include: 82.0% leased 6.0 years remaining weighted-average lease term 77% of annualized straight-line rent (4) from top 10 tenants derived from investment grade or implied investment grade tenants with 7.5 years of weighted-average remaining lease term Diversified portfolio, comprised of 24% financial services tenants, 17% government and public administration tenants, 12% retail tenants, 11% non-profit and 42% all other industries, based on annualized straight-line rent Capital Structure and Liquidity Resources As of June 30, 2025, the Company had $5.3 million of cash and cash equivalents (5). The Company's net debt (6) to gross asset value (7) was 63.6%, with net debt of $344.7 million. All of the Company's debt was fixed-rate as of June 30, 2025. The Company's total combined debt had a weighted-average interest rate of 6.4% (8). Footnotes/Definitions (1) The weighted-average remaining lease term (years) is weighted by annualized straight-line rent as of June 30, 2025. (2) Top 10 tenants based on annualized straight-line rent as of June 30, 2025. (3) As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term 'parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of June 30, 2025. Based on annualized straight-line rent, top 10 tenants are 55% actual investment grade rated and 22% implied investment grade rated. (4) Annualized straight-line rent is calculated using the most recent available lease terms as of June 30, 2025. (5) Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash and cash equivalents and restricted cash) of $10.0 million. (6) Total debt of $350.0 million less cash and cash equivalents of $5.3 million as of June 30, 2025. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents. (7) Defined as the carrying value of total assets of $464.0 million plus accumulated depreciation and amortization of $78.1 million as of June 30, 2025. (8) Weighted based on the outstanding principal balance of the debt. Webcast and Conference Call ASIC will host a webcast and call on August 8, 2025 at 11:00 a.m. ET to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be accessed by all interested parties through the ASIC website, in the 'Investor Relations' section. Dial-in instructions for the conference call and the replay are outlined below. To listen to the live call, please go to ASIC's 'Investor Relations' section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the ASIC website at Live Call Dial-In (Toll Free): 1-877-269-7751 International Dial-In: 1-201-389-0908 Conference Replay* Domestic Dial-In (Toll Free): 1-844-512-2921 International Dial-In: 1-412-317-6671 Conference Number: 13754142 *Available from August 8, 2025 through September 19, 2025. About American Strategic Investment Co. American Strategic Investment Co. (NYSE: NYC) owns a portfolio of commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be found on its website at Supplemental Schedules The Company will file supplemental information packages with the Securities and Exchange Commission (the 'SEC') to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the 'Presentations' tab in the Investor Relations section of ASIC's website at and on the SEC website at Important Notice The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words 'may,' 'will,' 'seeks,' 'anticipates,' 'believes,' 'expects,' 'estimates,' 'projects,' 'plans,' 'intends,' 'should' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company's election to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due to the ongoing military conflicts between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company, the Company's tenants, and the global economy and financial markets, (d) inflationary conditions and higher interest rate environment, (e) economic uncertainties about the ultimate impact of tariffs imposed by, or imposed on, the United States and its trading relationships, (f) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all, and (g) that we may not be able to continue to meet the New York Stock Exchange's ('NYSE') continued listing requirements and rules, and the NYSE may delist the Company's common stock, which could negatively affect the Company, the price of the Company's common stock and shareholders' ability to sell the Company's common stock, as well as those risks and uncertainties set forth in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 19, 2025 with the United States Securities and Exchange Commission ('SEC') and all other filings with the SEC after that date, including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent report. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. June 30, 2025 December 31, 2024 ASSETS (Unaudited) Real estate investments, at cost: Land $ 114,099 $ 129,517 Buildings and improvements 318,272 341,314 Acquired intangible assets 7,761 19,063 Total real estate investments, at cost 440,132 489,894 Less accumulated depreciation and amortization (78,102 ) (91,135 ) Total real estate investments, net 362,030 398,759 Cash and cash equivalents 5,313 9,776 Restricted cash 7,525 9,159 Operating lease right-of-use asset 54,401 54,514 Prepaid expenses and other assets 5,868 5,233 Derivative asset, at fair value — — Straight-line rent receivable 22,592 23,060 Deferred leasing costs, net 6,265 6,565 Assets held for sale — — Total assets $ 463,994 $ 507,066 LIABILITIES AND STOCKHOLDERS' EQUITY Mortgage notes payable, net $ 348,223 $ 347,384 Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $53 and $317 at June 30, 2025 and December 31, 2024, respectively) 22,305 15,302 Notes payable to related parties — — Operating lease liability 54,555 54,592 Below-market lease liabilities, net 821 1,161 Deferred revenue 2,572 3,041 Distributions payable — — Total liabilities 428,476 421,480 Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at June 30, 2025 and December 31, 2024 — — Common stock, $0.01 par value, 300,000,000 shares authorized, 2,634,355 and 2,634,355 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 27 27 Additional paid-in capital 731,613 731,429 Accumulated other comprehensive income — — Distributions in excess of accumulated earnings (696,122 ) (645,870 ) Total stockholders' equity 35,518 85,586 Non-controlling interests — — Total equity 35,518 85,586 Total liabilities and equity $ 463,994 $ 507,066 American Strategic Investment Co. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, 2025 2024 Revenue from tenants $ 12,222 $ 15,754 Operating expenses: Asset and property management fees to related parties 1,682 1,927 Property operating 7,987 8,461 Impairments of real estate investments 30,558 84,724 Equity-based compensation 92 186 General and administrative 2,172 1,964 Depreciation and amortization 3,545 5,151 Total operating expenses 46,036 102,413 Operating loss (33,814 ) (86,659 ) Other income (expense): Interest expense (7,850 ) (5,201 ) Other income 4 9 Total other expense (7,846 ) (5,192 ) Net loss before income tax (41,660 ) (91,851 ) Income tax expense — — Net loss and Net loss attributable to common stockholders $ (41,660 ) $ (91,851 ) Net loss per share attributable to common stockholders — Basic and Diluted $ (16.39 ) $ (36.48 ) Weighted-average shares outstanding — Basic and Diluted 2,541,402 2,518,176 American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands) Three Months Ended June 30, 2025 June 30, 2024 Net loss and Net loss attributable to common stockholders $ (41,660 ) $ (91,851 ) Interest expense 7,850 5,151 Depreciation and amortization 3,545 5,201 EBITDA (30,265 ) (81,499 ) Impairment of real estate investments 30,558 84,724 Equity-based compensation 92 186 Other (income) loss (4 ) (9 ) Asset and property management fees paid in common stock to related parties in lieu of cash — 1,077 Adjusted EBITDA 381 4,479 Asset and property management fees to related parties payable in cash 1,682 850 General and administrative 2,172 1,964 NOI 4,235 7,293 Accretion of below- and amortization of above-market lease liabilities and assets, net (138 ) (57 ) Straight-line rent (revenue as a lessor) 102 153 Straight-line ground rent (expense as lessee) (3 ) 27 Cash NOI 4,196 7,416 Cash Paid for Interest: Interest expense 7,850 5,201 Amortization of deferred financing costs (76 ) (377 ) Total cash paid for interest $ 7,774 $ 4,824 Non-GAAP Financial Measures This release discusses the non-GAAP financial measures we use to evaluate our performance, including Earnings before Interest, Taxes, Depreciation and Amortization ('EBITDA'), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ('Adjusted EBITDA'), Net Operating Income ('NOI') and Cash Net Operating Income ('Cash NOI') and Cash Paid for Interest. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net loss, is provided above. In December 2022 we announced that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business and operations have not materially changed in the second quarter of 2025. Therefore, we did not change any of the non-GAAP metrics that we have historically used to evaluate performance. Caution on Use of Non-GAAP Measures EBITDA, Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP metrics. As a result, we believe that the use of these non-GAAP metrics, together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest. We believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for (i) impairment charges, (ii) interest income or other income or expense, (iii) gains or losses on debt extinguishment, (iv) equity-based compensation expense, (v) acquisition and transaction costs, (vi) gains or losses from the sale of real estate investments and (vii) expenses paid with issuances of common stock in lieu of cash is an appropriate measure of our ability to incur and service debt. We consider EBITDA and Adjusted EBITDA useful indicators of our performance. Because these metrics' calculations exclude such factors as depreciation and amortization of real estate assets, interest expense, and equity-based compensation (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), these metrics; presentations facilitate comparisons of operating performance between periods and between other companies that use these measures. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies. NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends. Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI. Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.
Globe and Mail
13 minutes ago
- Globe and Mail
Novo Nordisk Is Down 70%: Is the Price Too Low To Ignore?
In this video, I will review Novo Nordisk 's (NYSE: NVO) earnings report and explain why now could be a good time to start opening a position. Watch the short video to learn more, consider subscribing, and click the special offer link below. *Stock prices used were from the trading day of Aug. 6, 2025. The video was published on Aug. 6, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
