RBGLY Investors Have Opportunity to Lead Reckitt Benckiser Group plc Securities Fraud Lawsuit with the Schall Law Firm
Investors who purchased the Company's securities between January 13, 2021 and July 28, 2024, inclusive (the 'Class Period'), are encouraged to contact the firm before August 4, 2025.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at bschall@schallfirm.com.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Reckitt failed to inform investors that preterm infants suffered an increased risk of developing necrotizing enterocolitis ('NEC') when consumed its Enfamil formula. The Company misled investors about its exposure to legal claims related to NEC. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Reckitt, investors suffered damages.
Join the case to recover your losses.
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Globe and Mail
16 minutes ago
- Globe and Mail
Itafos Continues to Deliver Strong Operational and Financial Performance - Q2 2025 Operational and Financial Results
HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the 'Company') today reported its Q2 2025 financial results and provided a corporate update. The Company's financial statements and management's discussion and analysis for the three and six months ended June 30, 2025 are available under the Company's profile at and on the Company's website at All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management's commentary reviewing the Q2 2025 financial results and an update on the business will be available on the Company's website on Monday, August 11, 2025 (see details below). 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. ________________________________ 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. ________________________________ 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. ________________________________ 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 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 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 and on the Company's website at 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@ 713-242-8446 For Media: Alliance Advisors IR Fatema Bhabrawala Director, Media Relations fbhabrawala@ 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 ( 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 and under the Company's profile on SEDAR+ at 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:
National Post
16 minutes ago
- National Post
DXP Enterprises, Inc. Reports Second Quarter 2025 Results
Article content Article content HOUSTON — DXP Enterprises, Inc. ('DXP' or the 'Company') (NASDAQ: DXPE) today announced financial results for the second quarter ended June 30, 2025. The following are results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and March 31, 2025, where appropriate. A reconciliation of the non-GAAP financial measures can be found in the back of this press release. Article content Second Quarter 2025 Financial Highlights: Article content Sales increased 11.9 percent to $498.7 million compared to $445.6 million for the second quarter of 2024 and increased 4.6 percent sequentially from $476.6 million for the first quarter of 2025. Net income increased 41.3 percent for the second quarter to $23.6 million, compared to $16.7 million for the second quarter of 2024 and $20.6 million for the first quarter of 2025. Earnings per diluted share for the second quarter was $1.43 based upon 16.5 million diluted shares, compared to $1.00 earnings per diluted share in the second quarter of 2024, based on 16.7 million diluted shares. Adjusted EBITDA for the second quarter was $57.3 million compared to $48.2 million for the second quarter of 2024 and $52.5 million for the first quarter of 2025. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margin, was 11.5 percent, 10.8 percent, and 11.0 percent, respectively. Cash flow from operating activities increased 26.5 percent for the second quarter to $18.6 million, compared to $14.7 million for the second quarter of 2024. Free Cash Flow (cash flow from operating activities less capital expenditures) for the second quarter was $8.3 million, compared to $5.9 million for second quarter of 2024. Article content Business segment financial highlights: Article content Service Centers' revenue for the second quarter was $339.7 million, an increase of 10.8 percent year-over-year, with a 14.8 percent operating income margin. Innovative Pumping Solutions' revenue for the second quarter was $93.5 million, an increase of 27.5 percent year-over-year, with a 19.9 percent operating income margin. Supply Chain Services' revenue for the second quarter was $65.4 million, a decrease of 0.4 percent year-over-year, with a 8.0 percent operating income margin. Article content David R. Little, Chairman and Chief Executive Officer commented, 'Second quarter results reflect the execution of our growth strategy and the resilience and durability of DXP's business. We are pleased with our sequential and year-over-year sales growth and strength in our gross profit margins. This resulted in operating leverage that produced earnings per share of $1.43. DXP's second quarter 2025 sales were $498.7 million, or a 4.6 percent increase over the first quarter of 2025 and 11.9 percent increase over 2024. Sequential organic sales for the quarter increased 12.3 percent or $51.9 million and acquisitions added another $24.6 million in sales during Q2. Adjusted EBITDA grew $4.8 million, or 9.2 percent over the first quarter of 2025. During the second quarter of 2025, sales were $339.7 million for Service Center, $93.5 million for Innovative Pumping Solutions, and $65.4 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company, and we are excited to enter the second half of 2025.' Article content Kent Yee, Chief Financial Officer and Senior Vice President, remarked, 'DXP achieved another high watermark quarter with a 4.6 percent sequential and 11.9 percent year-over-year sales increase to $498.7 million and 11.5 percent Adjusted EBITDA margins. We have closed two acquisitions through the second quarter, and one subsequent, and we anticipate closing at least three or four more acquisitions during the second half of 2025. This quarters financial results reflect continued execution of our strategic goals and the impact of our diversification efforts, an overall reduced energy industry exposure, and a strong balance sheet to support our key initiatives. Total debt outstanding as of June 30, 2025, was $626.8 million. DXP's secured leverage ratio or net debt to EBITDA ratio was 2.4:1.0 with a covenant EBITDA of $221.1 million for the last twelve months ending June 30, 2025.' Article content Conference Call Information Article content DXP Enterprises, Inc. management will host a conference call, August 7, 2025, at 10:30 a.m. Central Time, to discuss the Company's financial results. The conference call may be accessed by going to Article content Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company's results and key performance indicators will also be available on the Investor Relations section of the Company's website. Article content To learn more about DXP Enterprises, Inc., please visit the Company's website at Article content About DXP Enterprises, Inc. Article content DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout North America and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ('MROP') services that emphasize and utilize DXP's vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to Article content Non-GAAP Financial Measures Article content DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, and Free Cash Flow. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow and net debt referred to in this press release are included below under 'Unaudited Reconciliation of Non-GAAP Financial Information'. Article content The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company's financial covenants under its credit facilities. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors' understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation to its most directly comparable GAAP financial measure, the Company believes it is enhancing investors' understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Article content Information Related to Forward-Looking Statements Article content The Private Securities Litigation Reform Act of 1995 provides a 'safe-harbor' for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include, without limitation, those about the Company's expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company's business, the Company's future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to: the effectiveness of management's strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, 'may,' 'will,' 'should,' 'intend,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'goal,' or 'continue' or the negative of such terms or other comparable terminology. More information on these risks and other potential factors that could affect the Company's business and financial results is included in the Company's filings with the Securities and Exchange Commission, including in the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of the Company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales $ 498,682 $ 445,556 $ 975,251 $ 858,191 Cost of sales 340,869 307,763 667,173 596,516 Gross profit 157,813 137,793 308,078 261,675 Selling, general and administrative expenses 111,827 100,441 221,577 195,192 Income from operations 45,986 37,352 86,501 66,483 Interest expense 14,744 15,384 29,404 30,928 Other income, net (354 ) (1,035 ) (1,672 ) (3,004 ) Income before income taxes 31,596 23,003 58,769 38,559 Provision for income taxes 7,984 6,310 14,568 10,534 Net income 23,612 16,693 44,201 28,025 Preferred stock dividend 22 22 45 45 Net income attributable to common shareholders $ 23,590 $ 16,671 $ 44,156 $ 27,980 Net income $ 23,612 $ 16,693 $ 44,201 $ 28,025 Foreign currency translation adjustments 2,563 93 2,649 (521 ) Comprehensive income $ 26,175 $ 16,786 $ 46,850 $ 27,504 Earnings per share: Basic $ 1.50 $ 1.05 $ 2.81 $ 1.75 Diluted $ 1.43 $ 1.00 $ 2.67 $ 1.66 Weighted average common shares outstanding: Article content RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION Article content ($ thousands, unaudited) Article content We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization minus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations. Article content We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales. Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income before income taxes $ 31,596 $ 23,003 $ 58,769 $ 38,559 Plus: Interest expense 14,744 15,384 29,404 30,928 Plus: Depreciation and amortization 9,490 8,127 18,624 15,665 EBITDA $ 55,830 $ 46,514 $ 106,797 $ 85,152 Plus: other non-recurring items (1) — 500 235 1,342 Plus: stock compensation expense 1,483 1,212 2,800 2,076 Adjusted EBITDA $ 57,313 $ 48,226 $ 109,832 $ 88,570 Operating Income Margin 9.2 % 8.4 % 8.9 % 7.7 % Net Income Margin 4.7 % 3.7 % 4.5 % 3.3 % EBITDA Margin 11.2 % 10.4 % 11.0 % 9.9 % Adjusted EBITDA Margin 11.5 % 10.8 % 11.3 % 10.3 % (1) Other non-recurring items includes unique acquisition integration costs and other non-cash, non-recurring costs not related to continuing business operations. Article content We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. 'Acquisition Sales' are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales. Article content 'Business Days' are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days. Article content We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period. Article content We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period. Article content The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands): Article content We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. Article content Article content Article content Article content Article content Contacts Article content
Globe and Mail
16 minutes ago
- Globe and Mail
Why Scholar Rock Stock Wilted on Wednesday
Key Points The company posted a relatively steep bottom-line shortfall in its second quarter. This was tempered by a business update that featured more positive news. 10 stocks we like better than Scholar Rock › It didn't take a high-powered academic to figure out why Scholar Rock 's (NASDAQ: SRRK) share price swooned by more than 5% on Wednesday. That morning, the biotech published a quarterly earnings report and business update that fell short of expectations. That decline came on a day when the S&P 500 index rose by 0.7%. Second-quarter slide Scholar Rock's second quarter saw the relatively early-stage company post no revenue and a net loss of over $110 million, or $0.98 per share. This was far steeper than the nearly $59 deficit in the same period of 2024. On average, analysts tracking the stock were modeling a shortfall of only $0.66 per share. Significantly higher general and administrative expenses were the main culprit in the notably deeper loss. They nearly tripled over the one-year period, landing at almost $50 million from slightly over $17 million in 2024's Q2. Research and development spend, meanwhile, increased by 47% to a bit over $62 million. As for its financial resources, Scholar Rock had cash, equivalents, and marketable securities totaling $295 million at the end of the quarter. It said these should be sufficient to support its activities into 2027. Not all the news was bad As is common with biotech stocks, Scholar Rock also provided a business update within its earnings release. The company actually provided several reasons to be bullish on its future, one of which was that the U.S. Food and Drug Administration (FDA) accepted Scholar Rock's biologics license application (BLA) for its apitegromab (an investigational drug targeting spinal muscular atrophy). A decision could come soon, as the regulator has effectively set Sept. 22 as a deadline for delivering one. Should you invest $1,000 in Scholar Rock right now? Before you buy stock in Scholar Rock, 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 Scholar Rock 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 $619,036!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,092,648!* Now, it's worth noting Stock Advisor's total average return is 1,026% — a market-crushing outperformance compared to 180% 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 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
