Supernus Pharmaceuticals Inc (SUPN) Q1 2025 Earnings Call Highlights: Strong Revenue Growth ...
Combined net sales of legacy products Trokendi XR and Oxtellar XR were down 46% in the first quarter, with further erosion expected throughout 2025.
The company is advancing its CNS pipeline with plans to initiate a Phase 2b trial for SPN-820 in major depressive disorders, indicating a commitment to R&D and future growth.
Qelbree prescriptions grew by 22% and net sales increased by 44% in the first quarter, with a record high of 75,277 monthly prescriptions in March.
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Q & A Highlights
Q: Could you please remind us of the key growth drivers for Qelbree in 2025? Is it more about volume or price? Also, could you provide more color on your decision to move forward with SPN-820 in major depressive disorder (MDD)? A: The growth for Qelbree will be driven by both volume and a small price increase. We are optimistic about Qelbree's performance, with prescriptions reaching an all-time high in March. Regarding SPN-820, we expect a placebo-adjusted efficacy delta of five to eight points in MDD, which is clinically significant. We aim to start the study by year-end, with data expected in about a year and a half, depending on recruitment speed.
Q: How did normal seasonality impact Qelbree's net pricing in Q1, and what should we expect for the rest of the year? Also, can you comment on the infrastructure for ONAPGO and the timing from start forms to patient prescriptions? A: Q1 typically sees pressure on gross-to-net, with gross-to-net in the early 50s. We expect improvement in Q2 and Q3 unless unforeseen issues arise. We are comfortable with the consensus of $290 million for Qelbree. For ONAPGO, the infrastructure is well-established, and we are optimistic about processing patient enrollment forms efficiently, with conversion rates better than industry average.
Q: Could you provide more details on reimbursement discussions for ONAPGO and its differentiation from competitors like the [Habsiz Pump]? A: We expect a high percentage of enrollment forms to be fulfilled, supported by our established infrastructure. ONAPGO offers continuous infusion of apomorphine, a potent dopamine agonist, providing a clear differentiation from Levodopa/Carbidopa pumps. It can be used as an add-on, unlike other pumps, which is a potential advantage.
Q: What are you hearing about competitive dynamics for ONAPGO versus [ALIV] and [ABBIE] products? Also, could SPN-443 be used for sleep-wake disorders like narcolepsy? A: Initial feedback for ONAPGO is positive, with strong receptivity from physicians. The differentiation lies in its use of apomorphine, which can be an add-on to existing treatments. For SPN-443, we are considering it for ADHD with potential schedule four classification, but other indications, including sleep-wake disorders, are also being evaluated.
Q: Do you have a sense of the proportion of naive patients starting Qelbree for ADHD, and has the combination use in adults changed? A: About 32-33% of Qelbree patients are naive, with the rest being switches, mainly from stimulants. Combination use in adults remains around 35-40%, and we are monitoring if this changes as more data becomes available.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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Dole plc Reports Second Quarter 2025 Financial Results
DUBLIN--(BUSINESS WIRE)--Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three and six months ended June 30, 2025. We are very pleased to report a strong result for the second quarter of 2025. Group revenue increased 14.3% and Adjusted EBITDA increased 9.3% compared to the prior year, with good growth across all of our Continuing Operations Share Highlights for the three months ended June 30, 2025: Very strong performance for the second quarter, with growth across all Continuing Operations 1 segments Revenue of $2.4 billion, an increase of 14.3% (an increase of 12.1% on a like-for-like basis 2) Net Income decreased to $18.0 million, primarily due to a loss in the Fresh Vegetables division Adjusted EBITDA 3 of $137.1 million, an increase of 9.3% (an increase of 7.2% on a like-for-like basis) Adjusted Net Income 3 increased 13.0% to $53.2 million and Adjusted Diluted EPS 3 increased 12.2% to $0.55 Post quarter end, successfully completed sale of Fresh Vegetables division to Arable Capital Partners for approximately $140.0 million Commenting on the results, Carl McCann, Executive Chairman, said: 'We are very pleased to report a strong result for the second quarter of 2025. Group revenue increased 14.3% and Adjusted EBITDA increased 9.3% compared to the prior year, with good growth across all of our Continuing Operations. Post quarter end, we completed the sale of the Fresh Vegetables Division to Arable Capital Partners. The completion of this sale represents an important strategic milestone for the Group and will enable us to further concentrate our efforts and investments on our core business activities. For the current financial year, although the macroeconomic environment remains complex, we are pleased to announce an upward revision of our guidance and are now targeting full year Adjusted EBITDA in the range of $380.0 million to $390.0 million.' ___________________________________ 1 Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our condensed consolidated statements of operations, its assets and liabilities are separately presented in our condensed consolidated balance sheets, and its cash flows are presented separately in our condensed consolidated statements of cash flows for all periods presented. Unless otherwise noted, our discussion of our results included herein, outlook and all supplementary tables, including non-GAAP financial measures, are presented on a continuing operations basis. 2 Like-for-like basis refers to the measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. Refer to the Appendix and "Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results" for further detail on these impacts and the calculation of like-for-like basis variances. 3 Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). See full GAAP financial results in the appendix. Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Net Debt, Net Leverage and Free Cash Flow from Continuing Operations are non-GAAP financial measures. Refer to the appendix of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP financial measures. Expand Group Results - Second Quarter Revenue increased 14.3%, or $304.3 million, primarily due to positive operational performance across all segments and a favorable impact from foreign currency translation of $57.2 million, offset partially by a net negative impact from acquisitions and divestitures of $9.6 million. On a like-for-like basis, revenue increased 12.1%, or $256.7 million. Net Income decreased 79.6%, or $70.1 million, to $18.0 million. This decrease was due to a loss of $35.0 million in discontinued operations (Fresh Vegetables) compared to income of $32.0 million in the prior year primarily due to an incremental non-cash held for sale fair value loss of $50.7 million ($37.8 million, net of tax), which adjusted the carrying value of the Fresh Vegetables division to its estimated fair value. There was also a decrease of other income of $25.1 million, primarily related to unrealized foreign currency losses which are offset by gains in other comprehensive income. These decreases were partially offset by a higher gain on asset sales in the current year. Adjusted EBITDA increased 9.3%, or $11.7 million, primarily due to positive operational performance across all segments and a favorable impact of foreign currency translation of $2.2 million. On a like-for-like basis, Adjusted EBITDA increased 7.2%, or $9.0 million. Adjusted Net Income increased 13.0%, or $6.1 million, predominantly due to the increases in Adjusted EBITDA noted above and lower interest expense, partially offset by higher depreciation expense. Adjusted Diluted EPS for the three months ended June 30, 2025 was $0.55 compared to $0.49 in the prior year. Revenue increased 14.2%, or $121.1 million, primarily due to higher worldwide volumes of bananas and pineapples sold, as well as higher worldwide pricing of bananas, pineapples and plantains, partially offset by lower worldwide volumes of plantains sold. Adjusted EBITDA increased 3.0%, or $2.1 million, primarily driven by an improved performance in pineapples on a worldwide basis as well as strong growth in banana volumes. These improvements were partially offset by higher fruit costs following Tropical Storm Sara that impacted Honduras in November 2024, as well as higher shipping costs due to an operational disruption for one of our vessels servicing the North American market that has since been resolved. Diversified Fresh Produce – EMEA Revenue increased 16.5%, or $155.9 million, primarily due to strong performance in the U.K., Spain, Scandinavia and the Netherlands, as well as a favorable impact from foreign currency translation of $57.7 million, as a result of the strengthening of the British pound, Swedish krona and Euro against the U.S. Dollar. These increases were partially offset by a net negative impact from acquisitions and divestitures of $9.6 million. On a like-for-like basis, revenue increased 11.4%, or $107.8 million. Adjusted EBITDA increased 14.7%, or $6.3 million, primarily driven by increases in earnings in the U.K., Spain and the Netherlands, as well as a favorable impact from foreign currency translation of $2.5 million. These increases were partially offset by lower earnings in South Africa. On a like-for-like basis, Adjusted EBITDA increased 8.7%, or $3.7 million. Diversified Fresh Produce – Americas & ROW Revenue increased 8.5%, or $30.3 million, primarily due to revenue growth in most commodities sold in the North American market, primarily due to volume growth, as well as higher revenues in apples exported from South America. Adjusted EBITDA increased 27.0%, or $3.3 million, primarily driven by strong performance in the southern hemisphere export business, particularly in apples and citrus, as well as continued good performance in the North American market in kiwis, citrus and avocados. Capital Expenditures Cash capital expenditures from continuing operations for the six months ended June 30, 2025 were $72.2 million, including the buyout of two vessel finance leases of $36.1 million that were already reflected within Net Debt as of December 31, 2024. Other expenditures included investments in warehouse and logistics assets, particularly in Northern Europe, vessel dry dockings, farming investments and ongoing investments in IT assets. Additions through finance leases from continuing operations were $14.2 million for the six months ended June 30, 2025. Free Cash Flow from Continuing Operations and Net Debt Free cash flow from continuing operations was an outflow of $132.6 million for the six months ended June 30, 2025. Free cash flow was primarily driven by normal seasonal impacts. There were outflows from receivables based on higher revenue and timing of collections. Net Debt and Net Leverage as of June 30, 2025 was $788.8 million and 2.0x, respectively. Debt Refinancing On May 1, 2025, we completed the refinancing of our corporate credit facilities. The new credit facilities consist of a $600.0 million multicurrency five-year Revolving Credit Facility ('RCF'), a $250.0 million five-year Term Loan A ('TLA') and a $350.0 million seven-year Farm Credit term loan. These new credit facilities replace an existing RCF, TLA and a senior secured Term Loan B. Sale of Fresh Vegetables On August 5, 2025, we completed the sale of our Fresh Vegetables division to Arable Capital Partners for total consideration of $140.0 million, comprising $90.0 million in cash and a $50.0 million seller note as well as a $10.0 million potential earn-out. Dole is retaining its facilities in Huron, California and Yuma, Arizona. Outlook for Fiscal Year 2025 (forward-looking statement) We are pleased with our strong result for the second quarter of 2025, continuing our positive momentum and putting the Group in a good position to achieve our full year targets, in what continues to be a dynamic macroeconomic environment. Short-term issues may persist, however we remain confident in the resilience of our diversified business model and the international fresh produce industry. While forecasting in this dynamic environment remains complex, we are pleased to once more revise our guidance upward and are now targeting full year Adjusted EBITDA in the range of $380.0 million to $390.0 million. For fiscal year 2025, we are maintaining our guidance for maintenance capital expenditure of approximately $100.0 million, broadly in line with our expected annual depreciation expense. We also anticipate some increased capital expenditure over the remainder of the year related to our reinvestments in Honduras following Tropical Storm Sara, albeit significantly supported by insurance proceeds. We were pleased to announce the completion of the sale of the Fresh Vegetables Division on August 5, 2025. This was a key strategic priority for the Group and its completion provides us with enhanced strategic clarity as we look towards the future. We are focused on exploring a range of development opportunities through both internal and external investment, which we believe can further strengthen our business and drive growth for the years ahead. Under the assumption that base rates will remain broadly stable for the remainder of 2025 and having factored in the benefit of the additional Fresh Vegetables sale proceeds, we now expect interest expense to be approximately $67.0 million. Dividend On August 8, 2025, the Board of Directors of Dole plc declared a cash dividend for the second quarter of 2025 of $0.085 per share, payable on October 6, 2025 to shareholders of record on September 15, 2025. A cash dividend of $0.085 per share was paid on July 7, 2025 for the first quarter of 2025. About Dole plc A global leader in fresh produce, Dole plc produces, markets, and distributes an extensive variety of fresh fruits and vegetables sourced locally and from around the world. Dedicated and passionate in exceeding our customers' requirements in over 85 countries, our goal is to make the world a healthier and a more sustainable place. Webcast and Conference Call Information Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the second quarter 2025 financial results. The webcast can be accessed at or directly at The conference call can be accessed by registering at Forward-looking information Certain statements made in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management's beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. The words 'believe,' 'may,' 'could,' 'will,' 'should,' 'would,' 'anticipate,' 'estimate,' 'expect,' 'intend,' 'objective,' 'seek,' 'strive,' 'target' or similar words, or the negative of these words, identify forward-looking statements. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws. Category: Financial Appendix Income (loss) per share - diluted: Continuing operations $ 0.46 $ 0.50 $ 0.87 $ 1.30 Discontinued operations (0.36 ) 0.34 (0.36 ) 0.27 Net income per share attributable to Dole plc - diluted $ 0.10 $ 0.84 $ 0.51 $ 1.57 Weighted-average shares: Expand Condensed Consolidated Statements of Cash Flows - Unaudited Six Months Ended June 30, 2025 June 30, 2024 Operating Activities (U.S. Dollars in thousands) Net income $ 62,148 $ 153,501 Loss (income) from discontinued operations, net of taxes 34,920 (25,967 ) Income from continuing operations 97,068 127,534 Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities - continuing operations: Depreciation and amortization 54,777 48,395 Impairment of goodwill — 36,684 Impairment and asset write-downs of property, plant and equipment 182 1,277 Net gain on sale of assets (13,124 ) (328 ) Net gain on sale of businesses (409 ) (75,945 ) Net loss (gain) on financial instruments 26,036 (7,096 ) Stock-based compensation expense 3,185 4,133 Equity method earnings (16,793 ) (6,408 ) Noncash debt refinancing expenses 1,921 — Amortization of debt discounts and debt issuance costs 2,654 4,780 Deferred tax benefit (2,831 ) (12,704 ) Pension and other postretirement benefit plan expense 2,868 1,088 Dividends received from equity method investments 6,268 4,193 Gain on insurance proceeds (3,869 ) (527 ) Other (1,565 ) 417 Changes in operating assets and liabilities: Receivables, net of allowances (211,944 ) (127,190 ) Inventories 25,736 (3,772 ) Prepaids, other current assets and other assets (12,816 ) (7,282 ) Accounts payable, accrued liabilities and other liabilities (17,790 ) 18,009 Net cash (used in) provided by operating activities - continuing operations (60,446 ) 5,258 Investing activities Sales of assets 10,076 1,898 Capital expenditures (72,196 ) (35,693 ) Proceeds from sale of businesses, net of transaction costs 409 115,845 Insurance proceeds 18,971 527 Purchases of investments (1 ) (260 ) Purchases of unconsolidated affiliates (1,589 ) (388 ) Acquisitions, net of cash acquired (1,882 ) (685 ) Other (13 ) (1,894 ) Net cash (used in) provided by investing activities - continuing operations (46,225 ) 79,350 Financing activities Proceeds from borrowings and overdrafts 1,151,108 908,034 Repayments on borrowings and overdrafts and payment of debt refinancing fees (1,002,113 ) (1,021,795 ) Dividends paid to shareholders (15,934 ) (15,189 ) Dividends paid to noncontrolling interests (7,962 ) (19,445 ) Payment of contingent consideration (919 ) (996 ) Net cash provided by (used in) financing activities - continuing operations 124,180 (149,391 ) Effect of foreign exchange rate changes on cash 18,859 (8,079 ) Net cash (used in) provided by operating activities - discontinued operations (23,870 ) 18,464 Net cash used in investing activities - discontinued operations (4,850 ) (1,720 ) Cash (used in) provided by discontinued operations, net (28,720 ) 16,744 Increase (decrease) in cash and cash equivalents 7,648 (56,118 ) Cash and cash equivalents at beginning of period, including discontinued operations 331,719 277,005 Cash and cash equivalents at end of period, including discontinued operations $ 339,367 $ 220,887 Supplemental cash flow information: Income tax payments, net of refunds $ (53,567 ) $ (56,096 ) Interest payments on borrowings $ (32,119 ) $ (33,832 ) Expand Condensed Consolidated Balance Sheets - Unaudited June 30, 2025 December 31, 2024 ASSETS (U.S. Dollars and shares in thousands) Cash and cash equivalents $ 316,911 $ 330,017 Short-term investments 6,216 6,019 Trade receivables, net of allowances for credit losses of $21,313 and $19,493, respectively 657,055 473,511 Grower advance receivables, net of allowances for credit losses of $34,004 and $29,304, respectively 107,943 104,956 Other receivables, net of allowances for credit losses of $14,804 and $15,248, respectively 136,724 125,412 Inventories, net of allowances of $4,325 and $4,178, respectively 415,773 430,090 Prepaid expenses 69,717 66,136 Other current assets 16,662 15,111 Fresh Vegetables current assets held for sale 351,177 332,042 Other assets held for sale 2,491 1,419 Total current assets 2,080,669 1,884,713 Long-term investments 14,294 14,630 Investments in unconsolidated affiliates 138,128 129,322 Actively marketed property 45,391 45,778 Property, plant and equipment, net of accumulated depreciation of $573,635 and $498,895, respectively 1,099,285 1,082,056 Operating lease right-of-use assets 357,685 337,468 Goodwill 448,798 429,590 DOLE brand 306,280 306,280 Other intangible assets, net of accumulated amortization of $131,007 and $118,956, respectively 22,378 25,238 Other assets 116,538 108,804 Deferred tax assets, net 83,836 82,484 Total assets $ 4,713,282 $ 4,446,363 LIABILITIES AND EQUITY Accounts payable $ 727,335 $ 648,586 Income taxes payable 47,052 42,753 Accrued liabilities 429,844 437,017 Bank overdrafts 25,404 11,443 Current portion of long-term debt, net 73,639 80,097 Current maturities of operating leases 68,144 62,896 Payroll and other tax 32,499 28,056 Contingent consideration 4,745 3,399 Pension and other postretirement benefits 18,116 18,491 Fresh Vegetables current liabilities held for sale 195,737 244,669 Dividends payable and other current liabilities 22,934 14,696 Total current liabilities 1,645,449 1,592,103 Long-term debt, net 998,876 866,075 Operating leases, less current maturities 293,669 280,836 Deferred tax liabilities, net 68,568 79,598 Income taxes payable, less current portion — 6,210 Contingent consideration, less current portion 1,195 4,007 Pension and other postretirement benefits, less current portion 130,944 129,870 Other long-term liabilities 50,821 52,746 Total liabilities $ 3,189,522 $ 3,011,445 Redeemable noncontrolling interests 35,398 35,554 Stockholders' equity: Common stock — $0.01 par value; 300,000 shares authorized; 95,163 and 95,041 shares outstanding as of June 30, 2025 and December 31, 2024, respectively 952 950 Additional paid-in capital 798,457 801,099 Retained earnings 690,355 657,430 Accumulated other comprehensive loss (113,372 ) (166,180 ) Total equity attributable to Dole plc 1,376,392 1,293,299 Equity attributable to noncontrolling interests 111,970 106,065 Total equity 1,488,362 1,399,364 Total liabilities, redeemable noncontrolling interests and equity $ 4,713,282 $ 4,446,363 Expand Reconciliation from Net Income to Adjusted EBITDA - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. ___________________________________ 4 For the three months ended June 30, 2025, other items is primarily comprised of $3.2 million of net debt refinancing expenses. For the three months ended June 30, 2024, other items is primarily comprised of various immaterial items. 5 For the six months ended June 30, 2025, other items is primarily comprised of $3.2 million of net debt refinancing expenses. For the six months ended June 30, 2024, other items is primarily comprised of various immaterial items. Expand Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Refer to the following pages for supplementary reconciliations on these items. Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Loss (income) from discontinued operations, net of income taxes 34,950 (32,018 ) 34,920 (25,967 ) Income from continuing operations attributable to Dole plc 44,916 48,099 83,798 124,293 Adjustments: Amortization of intangible assets 1,737 1,886 3,468 4,159 Mark to market losses (gains) 17,153 (2,214 ) 23,069 (5,084 ) (Gain) loss on asset sales (8,737 ) — (11,178 ) 31 Gain on disposal of businesses (48 ) (1,995 ) (409 ) (75,945 ) Impairment of goodwill — — — 36,684 Asset write-downs, net of insurance proceeds (3,617 ) 147 (3,617 ) (1,699 ) Other items 6,7 3,190 (73 ) 3,284 (27 ) Adjustments from equity method investments 12 720 (7,432 ) 1,251 Income tax on items above and discrete tax items (190 ) 788 (2,131 ) 15,107 NCI impact of items above (1,260 ) (326 ) (2,620 ) (11,187 ) Adjusted Net Income for Adjusted EPS calculation (Non-GAAP) $ 53,156 $ 47,032 $ 86,232 $ 87,583 Adjusted earnings per share – basic (Non-GAAP) $ 0.56 $ 0.50 $ 0.91 $ 0.92 Adjusted earnings per share – diluted (Non-GAAP) $ 0.55 $ 0.49 $ 0.90 $ 0.92 Weighted average shares outstanding – basic 95,145 94,930 95,127 94,930 Weighted average shares outstanding – diluted 95,850 95,340 95,763 95,285 Expand ___________________________________ 6 For the three months ended June 30, 2025, other items is primarily comprised of $3.2 million of net debt refinancing expenses. For the three months ended June 30, 2024, other items is primarily comprised of various immaterial items. 7 For the six months ended June 30, 2025, other items is primarily comprised of $3.2 million of net debt refinancing expenses. For the six months ended June 30, 2024, other items is primarily comprised of various immaterial items. Expand Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Three Months Ended June 30, 2025 (U.S. Dollars in thousands) Loss (income) from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 1,737 — 1,737 Mark to market losses (gains) — 2,057 2,057 — — 2,057 (Gain) loss on asset sales — — — — (8,737 ) (8,737 ) Gain on disposal of businesses — — — — (48 ) (48 ) Asset write-downs, net of insurance proceeds — (3,617 ) (3,617 ) — — (3,617 ) Other items — — — 8 — 8 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact of items above — — — — — — Adjusted (Non-GAAP) $ 2,428,427 (2,211,687 ) 216,740 8.9 % (122,563 ) 442 $ 94,619 Expand Three Months Ended June 30, 2024 (U.S. Dollars in thousands) Revenues, net Cost of sales Gross profit Gross Margin % Selling, marketing, general and administrative expenses Other operating items 9 Operating Income Loss (income) from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 1,886 — 1,886 Mark to market losses (gains) — — — — — — (Gain) loss on asset sales — — — — — — Gain on disposal of businesses — — — — (1,995 ) (1,995 ) Impairment of goodwill — — — — — — Asset write-downs, net of insurance proceeds — 147 147 — — 147 Other items — 10 10 — — 10 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact of items above — — — — — — Adjusted (Non-GAAP) $ 2,124,091 (1,923,348 ) 200,743 9.5 % (114,718 ) (89 ) $ 85,936 Expand ___________________________________ 8 Other operating items for the three months ended June 30, 2025 is primarily comprised of a gain of asset sales of $9.3 million, offset partially by $0.1 million of asset write-downs and impairment charges on property, plant and equipment, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations. 9 Other operating charges for the three months ended June 30, 2024 is primarily comprised of a gain on disposal of businesses of $2.0 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations. Expand Three Months Ended June 30, 2025 (U.S. Dollars in thousands) Loss (income) from discontinued operations, net of income taxes — — — — — — 34,950 Amortization of intangible assets — — — — — 1,737 — Mark to market losses (gains) 15,096 — — — — 17,153 — (Gain) loss on asset sales — — — — — (8,737 ) — Gain on disposal of businesses — — — — — (48 ) — Asset write-downs, net of insurance proceeds — — — — — (3,617 ) — Other items 3,182 — — — — 3,190 — Adjustments from equity method investments — — — — 12 12 — Income tax on items above and discrete tax items — — — (949 ) 759 (190 ) — NCI impact of items above — — — — — — — Adjusted (Non-GAAP) $ (438 ) 2,955 (17,516 ) (26,453 ) 9,272 62,439 $ — Expand Three Months Ended June 30, 2024 (U.S. Dollars in thousands) Other (expense) income, net Interest income Interest expense Income tax expense Equity method earnings Income from continuing operations (Loss) income from discontinued operations, net of income taxes Loss (income) from discontinued operations, net of income taxes — — — — — — (32,018 ) Amortization of intangible assets — — — — — 1,886 — Mark to market losses (gains) (2,214 ) — — — — (2,214 ) — (Gain) loss on asset sales — — — — — — — Gain on disposal of businesses — — — — — (1,995 ) — Impairment of goodwill — — — — — — — Asset write-downs, net of insurance proceeds — — — — — 147 — Other items (83 ) — — — — (73 ) — Adjustments from equity method investments — — — — 720 720 — Income tax on items above and discrete tax items — — — 888 (100 ) 788 — NCI impact of items above — — — — — — — Adjusted (Non-GAAP) $ 4,080 2,624 (18,788 ) (24,572 ) 6,026 55,306 $ — Expand Three Months Ended June 30, 2025 U.S. Dollars and shares in thousands, except per share amounts Net income Net income attributable to noncontrolling Net income Net income attributable to Dole plc Diluted net income per share Loss (income) from discontinued operations, net of income taxes 34,950 — 34,950 Amortization of intangible assets 1,737 — 1,737 Mark to market losses (gains) 17,153 — 17,153 (Gain) loss on asset sales (8,737 ) — (8,737 ) Gain on disposal of businesses (48 ) — (48 ) Asset write-downs, net of insurance proceeds (3,617 ) — (3,617 ) Other items 3,190 — 3,190 Adjustments from equity method investments 12 — 12 Income tax on items above and discrete tax items (190 ) — (190 ) NCI impact of items above — (1,260 ) (1,260 ) Adjusted (Non-GAAP) $ 62,439 $ (9,283 ) $ 53,156 $ 0.55 Weighted average shares outstanding – diluted 95,850 Expand Three Months Ended June 30, 2024 U.S. Dollars and shares in thousands, except per share amounts Net income Net income attributable to noncontrolling interests Net income attributable to Dole plc Diluted net income per share Loss (income) from discontinued operations, net of income taxes (32,018 ) — (32,018 ) Amortization of intangible assets 1,886 — 1,886 Mark to market losses (gains) (2,214 ) — (2,214 ) (Gain) loss on asset sales — — — Gain on disposal of businesses (1,995 ) — (1,995 ) Impairment of goodwill — — — Asset write-downs, net of insurance proceeds 147 — 147 Other items (73 ) — (73 ) Adjustments from equity method investments 720 — 720 Income tax on items above and discrete tax items 788 — 788 NCI impact of items above — (326 ) (326 ) Adjusted (Non-GAAP) $ 55,306 $ (8,274 ) $ 47,032 $ 0.49 Weighted average shares outstanding – diluted 95,340 Expand Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Six Months Ended June 30, 2024 (U.S. Dollars in thousands) Reported (GAAP) $ 4,245,465 (3,850,202 ) 395,263 9.3 % (235,554 ) 38,312 $ 198,021 Loss (income) from discontinued operations, net of income taxes — — — — — — Amortization of intangible assets — — — 4,159 — 4,159 Mark to market losses (gains) — (120 ) (120 ) — — (120 ) (Gain) loss on asset sales — — — — 31 31 Gain on disposal of businesses — — — — (75,945 ) (75,945 ) Impairment of goodwill — — — — 36,684 36,684 Asset write-downs, net of insurance proceeds — (1,699 ) (1,699 ) — — (1,699 ) Other items — 56 56 — — 56 Adjustments from equity method investments — — — — — — Income tax on items above and discrete tax items — — — — — — NCI impact of items above — — — — — — Adjusted (Non-GAAP) $ 4,245,465 (3,851,965 ) 393,500 9.3 % (231,395 ) (918 ) $ 161,187 Expand ___________________________________ 10 Other operating items for the six months ended June 30, 2025 is primarily comprised of a gain on disposal of businesses of $0.4 million and gain of asset sales of $13.1 million, offset partially by $0.1 million of asset write-downs and impairment charges on property, plant and equipment, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations. 11 Other operating charges for the six months ended June 30, 2024 is primarily comprised of a gain on disposal of business of $75.9 million, offset by a goodwill impairment charge of $36.7 million and asset write-downs and impairment charges on property, plant and equipment of $1.3 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations. Expand Six Months Ended June 30, 2025 (U.S. Dollars in thousands) Loss (income) from discontinued operations, net of income taxes — — — — — — 34,920 Amortization of intangible assets — — — — — 3,468 — Mark to market losses (gains) 20,812 — — — — 23,069 — (Gain) loss on asset sales — — — — — (11,178 ) — Gain on disposal of businesses — — — — — (409 ) — Asset write-downs, net of insurance proceeds — — — — — (3,617 ) — Other items 3,182 — — — — 3,284 — Adjustments from equity method investments — — — — (7,432 ) (7,432 ) — Income tax on items above and discrete tax items — — — (2,818 ) 687 (2,131 ) — NCI impact of items above — — — — — — — Adjusted (Non-GAAP) $ 4,930 5,995 (34,698 ) (45,900 ) 10,048 102,122 $ — Expand Six Months Ended June 30, 2024 (U.S. Dollars in thousands) Other (expense) income, net Interest income Interest expense Income tax expense Equity method earnings Income from continuing operations (Loss) income from discontinued operations, net of income taxes Loss (income) from discontinued operations, net of income taxes — — — — — — (25,967 ) Amortization of intangible assets — — — — — 4,159 — Mark to market losses (gains) (4,964 ) — — — — (5,084 ) — (Gain) loss on asset sales — — — — — 31 — Gain on disposal of businesses — — — — — (75,945 ) — Impairment of goodwill — — — — — 36,684 — Asset write-downs, net of insurance proceeds — — — — — (1,699 ) — Other items (83 ) — — — — (27 ) — Adjustments from equity method investments — — — — 1,251 1,251 — Income tax on items above and discrete tax items — — — 15,307 (200 ) 15,107 — NCI impact of items above — — — — — — — Adjusted (Non-GAAP) $ 8,952 5,703 (36,736 ) (44,554 ) 7,459 102,011 $ — Expand Six Months Ended June 30, 2025 U.S. Dollars and shares in thousands, except per share amounts Net income Net income attributable to noncontrolling interests Net income attributable to Dole plc Diluted net income per share Loss (income) from discontinued operations, net of income taxes 34,920 — 34,920 Amortization of intangible assets 3,468 — 3,468 Mark to market losses (gains) 23,069 — 23,069 (Gain) loss on asset sales (11,178 ) — (11,178 ) Gain on disposal of businesses (409 ) — (409 ) Asset write-downs, net of insurance proceeds (3,617 ) — (3,617 ) Other items 3,284 — 3,284 Adjustments from equity method investments (7,432 ) — (7,432 ) Income tax on items above and discrete tax items (2,131 ) — (2,131 ) NCI impact of items above — (2,620 ) (2,620 ) Adjusted (Non-GAAP) $ 102,122 $ (15,890 ) $ 86,232 $ 0.90 Weighted average shares outstanding – diluted 95,763 Expand Six Months Ended June 30, 2024 U.S. Dollars and shares in thousands, except per share amounts Net income Net income attributable to noncontrolling interests Net income attributable to Dole plc Diluted net income per share Loss (income) from discontinued operations, net of income taxes (25,967 ) — (25,967 ) Amortization of intangible assets 4,159 — 4,159 Mark to market losses (gains) (5,084 ) — (5,084 ) (Gain) loss on asset sales 31 — 31 Gain on disposal of businesses (75,945 ) — (75,945 ) Impairment of goodwill 36,684 — 36,684 Asset write-downs, net of insurance proceeds (1,699 ) — (1,699 ) Other items (27 ) — (27 ) Adjustments from equity method investments 1,251 — 1,251 Income tax on items above and discrete tax items 15,107 — 15,107 NCI impact of items above — (11,187 ) (11,187 ) Adjusted (Non-GAAP $ 102,011 $ (14,428 ) $ 87,583 $ 0.92 Weighted average shares outstanding – diluted 95,285 Expand Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited Revenue for the Three Months Ended June 30, 2024 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) June 30, 2025 (U.S. Dollars in thousands) Fresh Fruit $ 851,451 $ 348 $ — $ 120,792 $ 972,591 Diversified Fresh Produce - EMEA 944,851 57,707 (9,558 ) 107,797 1,100,797 Diversified Fresh Produce - Americas & ROW 356,057 (882 ) — 31,173 386,348 Intersegment (28,268 ) — — (3,041 ) (31,309 ) Total $ 2,124,091 $ 57,173 $ (9,558 ) $ 256,721 $ 2,428,427 Expand Adjusted EBITDA for the Three Months Ended June 30, 2024 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) June 30, 2025 (U.S. Dollars in thousands) Fresh Fruit $ 70,619 $ (210 ) $ 262 $ 2,085 $ 72,756 Diversified Fresh Produce - EMEA 42,695 2,544 11 3,734 48,984 Diversified Fresh Produce - Americas & ROW 12,107 (124 ) 180 3,215 15,378 Total $ 125,421 $ 2,210 $ 453 $ 9,034 $ 137,118 Expand Revenue for the Six Months Ended June 30, 2024 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) June 30, 2025 (U.S. Dollars in thousands) Fresh Fruit $ 1,675,680 $ 311 $ — $ 174,745 $ 1,850,736 Diversified Fresh Produce - EMEA 1,798,449 38,261 (20,046 ) 176,220 1,992,884 Diversified Fresh Produce - Americas & ROW 832,939 (2,413 ) (79,307 ) (1,458 ) 749,761 Intersegment (61,603 ) — — (3,947 ) (65,550 ) Total $ 4,245,465 $ 36,159 $ (99,353 ) $ 345,560 $ 4,527,831 Expand Adjusted EBITDA for the Six Months Ended June 30, 2024 Impact of Foreign Currency Translation Impact of Acquisitions and Divestitures Like-for-like Increase (Decrease) June 30, 2025 (U.S. Dollars in thousands) Fresh Fruit $ 140,054 $ (95 ) $ 210 $ (4,082 ) $ 136,087 Diversified Fresh Produce - EMEA 68,654 1,799 6 6,185 76,644 Diversified Fresh Produce - Americas & ROW 26,812 (232 ) (2,118 ) 4,747 29,209 Total $ 235,520 $ 1,472 $ (1,902 ) $ 6,850 $ 241,940 Expand Net Debt and Net Leverage Reconciliation – Unaudited Net Debt is the primary measure used by management to analyze the Company's capital structure. Net Debt is a non- GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. Net Leverage is calculated as total Net Debt divided by Last Twelve Months ("LTM") Adjusted EBITDA as of the period end. The calculation of Net Debt and Net Leverage as of June 30, 2025 is presented below. Net Debt as of June 30, 2025 was $788.8 million and Net Leverage was 2.0x. June 30, 2025 December 31, 2024 (U.S. Dollars in thousands) Cash and cash equivalents (Reported GAAP) $ 316,911 $ 330,017 Debt (Reported GAAP): Long-term debt, net (998,876 ) (866,075 ) Current maturities (73,639 ) (80,097 ) Bank overdrafts (25,404 ) (11,443 ) Total debt, net (1,097,919 ) (957,615 ) Add: Debt discounts and debt issuance costs (Reported GAAP) (7,815 ) (9,531 ) Total gross debt (1,105,734 ) (967,146 ) Net Debt (Non-GAAP) $ (788,823 ) $ (637,129 ) LTM Adjusted EBITDA (Non-GAAP) 398,623 392,203 Net Leverage (Non-GAAP) 2.0 x 1.6 x Last Twelve Months ("LTM") Adjusted EBITDA FY'24 Adjusted EBITDA 392,203 392,203 Less: Q2'24 YTD Adjusted EBITDA (235,520 ) Plus: Q2'25 YTD Adjusted EBITDA 241,940 LTM Adjusted EBITDA $ 398,623 $ 392,203 Expand Free Cash Flow from Continuing Operations Reconciliation – Unaudited June 30, 2025 June 30, 2024 (U.S. Dollars in thousands) Net cash provided by operating activities - continuing operations (Reported GAAP) $ (60,446 ) $ 5,258 Less: Capital expenditures (Reported GAAP) 12 (72,196 ) (35,693 ) Free cash flow from continuing operations (Non-GAAP) $ (132,642 ) $ (30,435 ) Expand ___________________________________ 12 Capital expenditures do not include amounts attributable to discontinued operations. Expand Non-GAAP Financial Measures Dole plc's results are determined in accordance with U.S. GAAP. In addition to its results under U.S. GAAP, in this Press Release, we also present Dole plc's Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing Operations, Net Debt and Net Leverage, which are supplemental measures of financial performance that are not required by, or presented in accordance with, U.S. GAAP (collectively, the "non-GAAP financial measures"). We present these non-GAAP financial measures, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our operating results, cash flows or any other measure prescribed by U.S. GAAP. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items or that any projections and estimates will be realized in their entirety or at all. In addition, adjustment items that are excluded from non-GAAP results can have a material impact on equivalent GAAP earnings, financial measures and cash flows. Adjusted EBIT is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2025 and June 30, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property or sales-type leases, adding restructuring charges and costs for legal matters not in the ordinary course of business, and adding debt refinancing expenses; and (6) the Company's share of these items from equity method investments. Adjusted EBITDA is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2025 and June 30, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property or sales-type leases, adding restructuring charges and costs for legal matters not in the ordinary course of business, and adding debt refinancing expenses; and (8) the Company's share of these items from equity method investments. Last Twelve Months ("LTM") Adjusted EBITDA is calculated as Adjusted EBITDA, as defined above, for the last twelve months as of the period end, which for the six months ended June 30, 2025, is calculated as subtracting the Adjusted EBITDA for the six months ended June 30, 2024 from the Adjusted EBITDA for the year ended December 31, 2024 and then adding Adjusted EBITDA for the six months ended June 30, 2025. LTM Adjusted EBITDA for the year ended December 31, 2024 is the same as Adjusted EBITDA for the year ended December 31, 2024. Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2025 and June 30, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property or sales-type leases, adding restructuring charges and costs for legal matters not in the ordinary course of business, and adding debt refinancing expenses; (5) the Company's share of these items from equity method investments; (6) excluding the tax effect of these items and discrete tax adjustments; and (7) excluding the effect of these items attributable to non-controlling interests. Adjusted Earnings per Share is calculated from Adjusted Net Income divided by diluted weighted average number of shares in the applicable period. Net Debt is a non-GAAP financial measure, calculated as GAAP cash and cash equivalents, less GAAP current and long-term debt. It also excludes GAAP unamortized debt discounts and debt issuance costs. Net Leverage is a non-GAAP financial measure, calculated as Net Debt divided by LTM Adjusted EBITDA, both of which are defined above. Free cash flow from continuing operations is calculated from GAAP net cash used in or provided by operating activities for continuing operations less GAAP capital expenditures. Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. The impact of foreign currency translation represents an estimate of the effect of translating the results of operations denominated in a foreign currency to U.S. Dollar at prior year average rates, as compared to current year average rates. Dole is not able to provide a reconciliation for projected FY'25 results without taking unreasonable efforts.
Business Insider
15 hours ago
- Business Insider
TipRanks' AI Analyst Stays Neutral on Archer Aviation Stock Ahead of Q2 Earnings
Archer Aviation (ACHR) is scheduled to report for Q2 2025 tomorrow, on August 11. The hype is gradually growing, and expectations are rising. But how does our AI Analyst see Archer's prospects ahead of the company's earnings call? Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Let's explore what it has to say: TipRanks' AI Analyst Take on Archer The bottom line is that TipRanks' AI Analyst keeps its rating at Neutral, with a score of 49, reflecting real progress alongside the financial strain of a company still in its pre-revenue phase. Archer has yet to book sales. Like other eVTOL developers before launch, it runs on financing. In Q1, it logged $144 million in GAAP operating expenses and an adjusted EBITDA loss of $109 million, showing the steep cost of scaling and certification prep. However, the cash position tells a different story. Archer ended Q1 with $1.03 billion on hand, plus $400 million from Stellantis (STLA) and $300 million from an equity raise earlier this year. That liquidity puts it among the best-funded early-stage aerospace names, giving it breathing room to hit key milestones. And milestones are coming thick and fast. Test flights in Abu Dhabi drew UAE regulators and investors, with the Midnight aircraft holding up under extreme heat. Piloted testing is next, though minor delays have been linked to new flight instrumentation. Partnerships add another layer. Archer is working with Anduril on defense aviation and with Palantir (PLTR) on AI-driven aviation software, giving it a path to markets beyond passenger air service. What's the Plan, Stan? Still, the AI Analyst notes risks. Equity dilutes shareholders. Certification, execution, and supply chain issues could push timelines. Competition in the eVTOL space is also heating up, as Joby Aviation (JOBY) is moving rapidly toward commercial flight. The plan now is to scale to two aircraft a month by late 2025, launch in the UAE by year-end, and begin U.S. service in early 2026. For now, the Neutral rating says the opportunity is real but matched by the challenges. Investors will be watching tomorrow's earnings call for signs that Archer can keep momentum without losing altitude. Is Archer Aviation Stock a Good Buy? Despite the stock's speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a 'Moderate Buy' consensus with an average 12-month price target of $11.92. This implies a 22.63% upside from the current price.
Yahoo
2 days ago
- Yahoo
Victory Capital Holdings Inc (VCTR) Q2 2025 Earnings Call Highlights: Record Asset Growth and ...
Total Client Assets: Increased by 76% quarter-over-quarter, reaching over $300 billion. Quarterly Gross Long-Term Flows: $15.4 billion. Net Outflows: $660 million. Adjusted EBITDA: $179 million, with a margin of 50.8%. Adjusted Net Income with Tax Benefit: $133 million or $1.57 per diluted share. Net Expense Synergies Achieved: $70 million on a run rate basis. Revenue: Increased to $351.2 million, up 60% from the first quarter. Average Assets: $285 billion, 64% higher quarter-over-quarter. Realized Fee Rate: 49.4 basis points. GAAP Operating Margin: 26.8%. Share Repurchase Plan: Increased from $200 million to $500 million. Cash at End of Quarter: $108 million. Net Leverage Ratio: Improved to 1.2 times. Gross Sales: $15.4 billion, representing more than 20% of AUM on an annualized basis. GAAP Expenses: Increased by $125 million. Effective Tax Rate: 32.5% for the quarter, with a normal rate of approximately 25% going forward. Adjusted Net Income Per Diluted Share: Increased to $1.57 from $1.36. Debt-to-Equity Ratio: Improved to 0.39. Interest Coverage Ratio: Nearly 14 times in the period. Warning! GuruFocus has detected 4 Warning Sign with TEM. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Total client assets increased by 76% quarter-over-quarter, reaching a record high of over $300 billion. Adjusted EBITDA was $179 million with a margin of 50.8%, slightly higher than anticipated. Successful acquisition and integration of Amundi US business, enhancing size, scale, and diversification. Launch of new ETFs, including the VictoryShares Pioneer Asset-based income ETF, expanding product range. Board authorized an increase in the share repurchase plan to $500 million, the largest in company history. Negative Points Net outflows were $660 million, despite improvements in long-term flows. GAAP results included $53 million of acquisition-related restructuring and integration costs. Realized fee rate decreased to 49.4 basis points, with expectations to further decrease to 46-47 basis points. Closure of NewBridge, Sofas, and THB investment franchises, managing less than $1 billion of AUM. Ongoing integration costs and noncash compensation expenses related to the Amundi transaction. Q & A Highlights Q: Can you provide more details on the nonrecurring expenses and how they will impact future quarters? A: Michael Policarpo, President, CFO, and CAO, explained that in Q2, $53 million of acquisition-related costs were incurred, with $26 million being onetime deal-related expenses. Additionally, $14 million was spent on extracting synergies, with a total of $30 million expected. A $13 million noncash compensation expense related to a deferred comp plan will run off over the next few years. These costs will decline over the next several quarters. Q: How is the fixed income product set performing given current market conditions? A: David Brown, Chairman and CEO, expressed confidence in their fixed income asset class, highlighting their diverse product offerings across active ETFs, UCITS, and institutional accounts. He emphasized the strong performance of their two franchises, Victory Income Investors and Pioneer Investments, and sees fixed income as a key growth area. Q: What are the expectations for non-US distribution through the Amundi partnership? A: David Brown noted that the partnership with Amundi allows Victory Capital to sell products across Europe and Asia. Pioneer Investments' products are already in Amundi's distribution system, and Victory's institutional products are available globally. They are working on launching registered products outside the US, with significant growth expected as they globalize their business. Q: What is the outlook for organic growth and flows? A: David Brown stated that Victory Capital aims for consistent organic growth, noting improvements in gross flows and investments in distribution. They are expanding their US intermediary and institutional sales efforts and expect to leverage international opportunities through the Amundi partnership to drive future growth. Q: Can you clarify the impact of the onetime revenue realization on margins? A: Michael Policarpo explained that the revenue realization was due to accounting for certain products, including fulcrum fees and annual fees. The impact on margins was minimal due to their variable cost structure, which offsets changes in revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
