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Yahoo
2 days ago
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Stingray Reports Fourth Quarter and Full-Year Results for Fiscal 2025
Sustained Momentum with a Third Year of Diversified Growth and Solid Financial Strength Fourth Quarter Highlights Organic growth of 16.1% year-over-year in Broadcast and Recurring Commercial Music Revenues; Revenues increased 14.8% to $96.0 million in the fourth quarter of 2025 from $83.7 million in the fourth quarter of 2024; Net income totaled $7.7 million, or $0.11 per share, in the fourth quarter of 2025 compared to a Net loss of $46.3 million, or $0.67 per share, in the same period in 2024; Adjusted EBITDA(1) grew 19.0% to $35.0 million in the fourth quarter of 2025 from $29.4 million in the fourth quarter of 2024. Adjusted EBITDA(1) by segment was $28.1 million, or 43.6% of revenues for Broadcasting and Commercial Music, $8.6 million or 27.3% of revenues for Radio, and $(1.7) million for Corporate; Adjusted Net income(1) improved to $18.6 million, or $0.27 per share, in the fourth quarter of 2025 from $15.4 million, or $0.22 per share, in the same period in 2024; Cash flow from operating activities decreased 10.3% to $39.7 million, or $0.58 per share(1), in the fourth quarter of 2025 from $44.3 million, or $0.64 per share(1), in the fourth quarter of 2024; Adjusted free cash flow(1) rose 17.8% to $18.4 million, or $0.27 per share, in the fourth quarter of 2025 from $15.6 million, or $0.23 per share, in the same period in 2024; Net debt to Pro Forma Adjusted EBITDA(1) ratio decreased to 2.28x compared to 2.76x last year; and Repurchased and cancelled 275,000 shares for a total of $2.3 million in the fourth quarter of 2025 compared to 57,600 shares for a total of $0.4 million in the same period in 2024. Full Year Highlights Organic growth of 12.3% year-over-year in Broadcast and Recurring Commercial Music Revenues; Revenues increased 12.0% to $386.9 million in 2025 from $345.4 million in 2024; Net income totaled $36.4 million, or $0.53 per share, in 2025 compared to a Net loss of $13.7 million, or $0.20 per share, in the same period last year; Adjusted EBITDA(1) improved 13.0% to $142.2 million in 2025 from $125.9 million in 2024. Adjusted EBITDA(1) by segment was $107.6 million or 42.3% of revenues for Broadcasting and Commercial Music, $42.1 million or 31.8% of revenues for Radio, and $(7.5) million for Corporate; Adjusted Net income(1) increased to $72.7 million, or $1.05 per share, in 2025 compared to $60.3 million, or $0.87 per share, in the same period last year; Cash flow from operating activities decreased 11.4% to $105.0 million, or $1.53 per share(1), in 2025 from $118.5 million, or $1.72 per share(1), in 2024; Adjusted free cash flow(1) rose 3.5% to $83.6 million, or $1.21 per share, in 2025 from $80.8 million, or $1.17 per share, in the same period last year; and Repurchased and cancelled 1,186,800 shares for a total of $9.1 million in 2025 compared to 557,500 shares for a total of $2.9 million in 2024. MONTREAL, June 10, 2025 (GLOBE NEWSWIRE) -- Stingray Group Inc. (TSX: RAY.A; RAY.B) (the 'Corporation'; 'Stingray'), an industry leader in music and video content distribution, business services, and advertising solutions, announced today its financial results for the fourth quarter and fiscal year ended March 31, 2025. Financial Highlights(in thousands of Canadian dollars, except per share data) Three months endedMarch 31 Twelve months endedMarch 31 2025 2024 % 2025 2024 % Revenues 96,008 83,665 14.8 386,891 345,428 12.0 Adjusted EBITDA(1) 35,027 29,423 19.0 142,199 125,855 13.0 Net income (loss) 7,655 (46,318) — 36,440 (13,741) — Per share – diluted ($) 0.11 (0.67) — 0.53 (0.20) — Adjusted Net income(1) 18,568 15,382 20.7 72,654 60,312 20.5 Per share – diluted ($)(1) 0.27 0.22 22.7 1.05 0.87 20.7 Cash flow from operating activities 39,720 44,263 (10.3) 105,040 118,526 (11.4) Adjusted free cash flow(1) 18,411 15,624 17.8 83,611 80,794 3.5(1) This is a non-IFRS measure and is not a standardized financial measure. The Corporation's method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to 'Non-IFRS Measures' on page 5 of this news release for more information about each non-IFRS measure and refer to pages 6-7 for the reconciliations to the most directly comparable IFRS financial measures. Reporting on Stingray's fiscal 2025 and fourth quarter results, President, Co-Founder and CEO Eric Boyko stated: 'Fiscal 2025 was a highly successful year that checked many boxes in our profitable growth strategy. First, advertising revenues for our Broadcast and Recurring Commercial Music segment, which comprises our FAST channel and retail media advertising units, increased by more than 45% for a second consecutive year as advertisers increasingly relied on connected TVs to maximize their advertising dollars. Accordingly, we invested in our FAST channel platform in 2025, including the recent launch of channels like Cozy Café, Movie Music, Stargaze and Cityscapes, to position Stingray as the No. 1 supplier of musical and ambient channels for connected TVs. To take advantage of growing listening hours on FAST channels worldwide, we also introduced Stingray's Premium Connected TV Ad Inventory Network to enable alternative vendors to sell unsold inventory.' 'Second, our collaboration with IAB Canada and Leger to produce a breakthrough report about the evolution of in-store audio advertising in Canada has consolidated our standing as the de facto leader in this growing sector. We are true trailblazers in this market, evangelizing retailers about the untapped potential of in-store media ads, adding sales representatives and partners to increase inventory selling, and optimizing our pricing structure to improve monetization.' 'Third, double-digit organic growth for a second straight year reflects the judicious investment decisions Stingray has made to sustain revenue growth and drive profitability.' 'Finally, we reduced our net debt level by more than $27 million in 2025, closing the fiscal year with a Net Debt to Pro Forma Adjusted EBITDA ratio of 2.28 times and well within our target range.' 'In this encouraging context, Broadcasting and Commercial Music revenues increased 17.8% to $254.5 million in 2025, driven by higher FAST channel revenues, greater equipment and installation sales related to digital signage, and a positive foreign exchange impact,' Mr. Boyko added. 'Radio revenues improved 2.3% year-over-year to $132.3 million in 2025 mainly due to higher digital revenues. We are particularly pleased that our strategy to leverage the Radio sales team in Canada to sell in-store audio and video ads is beginning to deliver meaningful results. This latest facet of our plan helped to generate Radio revenue growth of nearly 4% in the fourth quarter despite a tight market environment.' 'Looking ahead to fiscal 2026, our capital allocation priorities are well-defined. We intend to sustain our momentum by re-investing in high-growth growth areas of our business; lowering our net debt level to a leverage ratio approaching 2.0 times; seeking acquisitions on an opportunistic basis; and continuing to reward shareholders with our well-established NCIB and dividend programs,' Mr. Boyko concluded. Fourth Quarter ResultsRevenues in the fourth quarter of 2025 increased $12.3 million, or 14.8%, to $96.0 million from $83.7 million in the fourth quarter of 2024. The growth was mainly due to an increase in FAST channel revenues and a positive foreign exchange impact. Revenues in Canada rose $1.2 million, or 2.7%, to $46.8 million from $45.6 million in the fourth quarter of 2024. The growth was mainly due to an increase in Radio revenue mostly driven by higher local sales. Revenues in the United States grew $11.8 million, or 45.0%, to $38.0 million from $26.2 million in the fourth quarter of 2024. The increase can be attributed to higher FAST channel revenues and a positive foreign exchange impact. Revenues in Other countries decreased $0.7 million, or 5.5%, to $11.2 million from $11.9 million in Q4 2024. The year-over-year decline was mainly due to lower in-store commercial revenues. Broadcasting and Commercial Music revenues in the fourth quarter of 2025 increased $11.2 million, or 20.9%, to $64.6 million from $53.4 million in the fourth quarter of 2024. The growth was primarily driven by higher FAST channel revenues and a positive foreign exchange impact. For the fourth quarter of 2025, Radio revenues improved $1.1 million, or 3.9%, to $31.4 million from $30.3 million in the same period of 2024. This increase was largely due to higher local revenues. Consolidated Adjusted EBITDA in the fourth quarter of 2025 increased $5.6 million, or 19.0%, to $35.0 million from $29.4 million in the fourth quarter of 2024. Adjusted EBITDA margin in the fourth quarter of 2025 rose to 36.5% from 35.2% in the same period last year. The increase in Adjusted EBITDA and Adjusted EBITDA margin was mainly due to higher revenues, partially offset by greater operating expenses related mainly to higher salaries. For the fourth quarter of 2025, net income totaled $7.7 million, or $0.11 per share, compared to a net loss of $46.3 million, or ($0.67) per share, in the fourth quarter of 2024. The variance was mainly due to a one-time impairment charge of $56.1 million on goodwill related to the Radio segment in the comparable period in 2024 and higher operating results in Q4 2025. These factors were partially offset by a foreign exchange loss and an unrealized loss on derivative financial instruments in the most recent quarter. Cash flow generated from operating activities amounted to $39.7 million in the fourth quarter of 2025 compared to $44.3 million in the fourth quarter of 2024. The decline was primarily due to a foreign exchange loss, higher income taxes paid, as well as greater acquisition, legal, restructuring and other costs. These factors were partially offset by improved operating results. Adjusted free cash flow generated in the fourth quarter of 2025 totaled $18.4 million compared to $15.6 million in the same period last year. The increase was mainly related to improved operating results, partially offset by higher income taxes paid. As of March 31, 2025, the Corporation had cash and cash equivalents of $14.0 million and credit facilities of $341.4 million. The credit facility consists of a $500 million revolving credit facility, of which $156.3 million was available. Full-Year ResultsFiscal 2025 revenues increased $41.5 million, or 12.0%, to $386.9 million from $345.4 million in 2024. The growth was largely due to higher FAST channel revenues, greater equipment and installation sales related to digital signage, and a positive foreign exchange impact. Adjusted EBITDA in fiscal 2025 improved by $16.3 million, or 13.0%, to $142.2 million from $125.9 million in 2024. Adjusted EBITDA margin in 2025 reached 36.8% compared to 36.4% in 2024. The increase in Adjusted EBITDA and Adjusted EBITDA margin was mainly driven by higher revenues, partially offset by greater operating expenses related mostly to higher salaries. Net income in fiscal 2025 totaled $36.4 million, or $0.53 per share, compared to a net loss of $13.7 million, or ($0.20) per share, in 2024. The variance was primarily due to a one-time impairment charge of $56.1 million on goodwill related to the Radio segment in the comparable period in 2024 and to higher operating results in 2025. These factors were partially offset by an unrealized loss on derivative financial instruments, a one-time settlement gain related to a trademark dispute in the comparable period in 2024, and a higher foreign exchange loss. Adjusted net income in fiscal 2025 amounted to $72.7 million, or $1.05 per share, compared to $60.3 million, or $0.87 per share, in 2024. The increase can mainly be attributed to higher operating results and lower interest expense, partially offset by a greater foreign exchange loss. Declaration of DividendThe Corporation declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share and multiple voting share on March 25, 2025. The dividend will be payable on or around June 13, 2025, to shareholders on record as of May 30, 2025. The Corporation's dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities and other factors that the Board of Directors may deem relevant. The dividends paid are designated as "eligible" dividends for the purposes of the Income Tax Act (Canada) and any corresponding provisions of provincial and territorial tax legislation. Business Highlights and Subsequent Events On April 15, 2025, the Corporation announce a partnership with Zoox, an autonomous mobility company. This collaboration enhances the rider experience in Zoox robotaxis with a diverse selection of curated music channels. On March 11, 2025, the Corporation announced the launch the launch of three of its popular FAST channels, Qello Concerts, Stingray Classica, and Movie Music, on Germany's largest TV platform for HD television. On February 5, 2025, the Corporation announced the launch of four new FAST (Free Ad-Supported Streaming TV) video channels. Cozy Café, Stargaze, and Movie Music have been selected by various platforms, including LG Channels, Samsung TV Plus, as part of their new channel offerings. On January 20, 2025, the Corporation announced the launch of five video channels on the ScreenHits TV in-car entertainment platform, available in Renault Grand Koleos, Nio and Porsche (Cayenne, Taycan, Panamera and 911) vehicles with upcoming plans for a worldwide release. On January 9, 2025, the Corporation announced that Samsung TV Karaoke, powered by the Stingray Karaoke app, has received the CES Innovation Award 2025 in the Content & Entertainment category. Conference CallThe Corporation will hold a conference call tomorrow, June 11, 2025, at 10:00 AM (ET) to review its financial results. Interested parties can join the call by dialing 289-514-5100 (Toronto) or 1-800-717-1738 (toll free). A rebroadcast of the conference call will be available until midnight, July 11, 2025, by dialing 289-819-1325 or 888-660-6264 and entering passcode 11999. About StingrayStingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of global music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, 97 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback. Stingray Advertising is North America's largest retail audio advertising network, delivering digital audio messaging to more than 30,000 major retail locations. Stingray has close to 1,000 employees worldwide and reaches 540 million consumers in 160 countries. For more information, visit Forward-Looking InformationThis news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray's goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray's control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form for the year ended March 31, 2025, which is available on SEDAR at Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray's business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law. Non-IFRS MeasuresThe Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted Net income and Adjusted Net income per share are important measures as it shows stable results from its operation which allows users of the financial statements to better assess the trend in the profitability of the business. The Corporation believes that Adjusted free cash flow and Adjusted free cash flow per share are important measures when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Pro Forma Adjusted EBITDA are important to analyse the company's debt repayment capacity on an annualized basis, taking into consideration the annualized adjusted EBITDA of acquisitions made during the last twelve months. Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. This method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows. Reconciliation of Net income to Adjusted EBITDA, Adjusted Net income, LTM Adjusted EBITDA and Pro Forma Adjusted EBITDA 3 months 12 months (in thousands of Canadian dollars) March 31,2025Q4 2025 March 31, 2024Q4 2024 March 31,2025Fiscal 2025 March 31, 2024Fiscal 2024 Net income (loss) 7,655 (46,318 ) 36,440 (13,741 ) Impairment on goodwill – 56,119 – 56,119 Net finance expense 9,516 3,736 42,416 28,883 Change in fair value of investments 2 (106 ) (54 ) 18 Income taxes 977 3,639 10,982 16,030 Depreciation and write-off of property and equipment 1,941 1,183 8,090 8,342 Depreciation of right-of-use assets 1,020 1,192 4,097 4,420 Amortization of intangible assets 5,115 4,124 18,583 17,371 Share-based compensation 111 93 409 435 Performance and deferred share unit expense 5,640 4,711 10,181 6,841 Share of results of investments in associates (210 ) (354 ) 3,381 1,166 Gain on disposal of an investment (845 ) – (845 ) – Other income (24 ) – (24 ) – Acquisition, legal, restructuring and other expenses 4,129 1,404 8,543 (29 ) Adjusted EBITDA 35,027 29,423 142,199 125,855 Adjusted EBITDA margin 36.5% 35.2% 36.8% 36.4% Net income (loss) 7,655 (46,318 ) 36,440 (13,741 ) Adjusted for: Impairment on goodwill – 56,119 – 56,119 Unrealized loss (gain) on derivative instruments 1,010 (2,252 ) 9,267 (1,431 ) Amortization of intangible assets 5,115 4,124 18,583 17,371 Change in fair value of investments 2 (106 ) (54 ) 18 Share-based compensation 111 93 409 435 Performance and deferred share unit expense 5,640 4,711 10,181 6,841 Share of results of investments in associates (210 ) (354 ) 3,381 1,166 Gain on disposal of an investment (845 ) – (845 ) – Other income (24 ) – (24 ) – Acquisition, legal, restructuring and other expenses 4,129 1,404 8,543 (29 ) Income taxes on above noted adjustments (4,015 ) (2,039 ) (13,227 ) (6,437 ) Adjusted Net income 18,568 15,382 72,654 60,312 Average number of shares outstanding (diluted) 68,807 68,811 68,871 69,104 Adjusted Net income per share (diluted) 0.27 0.22 1.05 0.87 (in thousands of Canadian dollars) March 31,2025Fiscal 2025 March 31,2024Fiscal 2024 LTM Adjusted EBITDA 142,199 125,855 Permanent cost-saving initiatives 1,046 2,758 Adjusted EBITDA for the months prior to the business acquisition of The Coda Collection which are not already reflected in the results 150 – Pro Forma Adjusted EBITDA 143,395 128,613 Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow 3 months 12 months (in thousands of Canadian dollars) March 31,2025Q4 2025 March 31, 2024Q4 2024 March 31,2025Fiscal 2025 March 31, 2024Fiscal 2024 Cash flow from operating activities 39,720 44,263 105,040 118,526 Add / Less : Acquisition of property and equipment (2,057 ) (2,351 ) (7,194 ) (7,812 ) Acquisition of intangible assets other than internally developed intangible assets (1,183 ) (355 ) (2,680 ) (1,231 ) Addition to internally developed intangible assets (1,371 ) (1,148 ) (5,184 ) (5,001 ) Interest paid (5,287 ) (6,641 ) (23,781 ) (25,927 ) Repayment of lease liabilities (954 ) (929 ) (4,295 ) (4,351 ) Net change in non-cash operating working capital items (17,094 ) (17,661 ) 6,663 5,983 Unrealized loss (gain) on foreign exchange 2,508 (958 ) 6,499 636 Acquisition, legal, restructuring and other expenses 4,129 1,404 8,543 (29 ) Adjusted free cash flow 18,411 15,624 83,611 80,794 Calculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA Ratio (in thousands of Canadian dollars) March 31, 2025 March 31, 2024 Credit facilities 341,365 338,712 Subordinated debt – 25,579 Cash and cash equivalents (13,984 ) (9,606 ) Net debt 327,381 354,685 Net debt to Pro Forma Adjusted EBITDA 2.28 2.76 Note to readers: Consolidated financial statements and Management's Discussion & Analysis of Operating Results and Financial Position are available on the Corporation's website at and on SEDAR at Contact InformationMathieu PéloquinSenior Vice-President, Marketing and CommunicationsStingray(514) 664-1244, ext. 2362mpeloquin@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Motorcar Parts of America Inc (MPAA) Q4 2025 Earnings Call Highlights: Record Sales and ...
Net Sales: Increased 5.5% to a record $757.4 million for fiscal 2025. Gross Profit: Increased 16.1% to a record $153.8 million for fiscal 2025. Cash from Operating Activities: Generated $45.5 million in fiscal 2025. Net Bank Debt: Reduced by $32.6 million to $81.4 million. Share Repurchase: Repurchased 542,134 shares for $4.8 million. Fourth Quarter Net Sales: Increased 1.9% to $193.1 million. Fourth Quarter Gross Profit: Increased 10.6% to $38.5 million. Fourth Quarter Gross Margin: 19.9%, up from 18.4% a year earlier. Operating Expenses: $22.2 million, compared to $22.6 million last year. Interest Expense: Decreased by $2.1 million to $12.5 million. Net Loss for Fourth Quarter: $722,000 or $0.04 per share. EBITDA for Fourth Quarter: $16.3 million, with adjustments leading to $24.6 million. Fiscal 2025 Net Loss: $19.5 million or $0.99 per share. Fiscal 2025 EBITDA: $50.3 million, adjusted to $92.8 million. Fiscal 2026 Outlook: Net sales expected between $780 million and $800 million; Operating income expected between $86 million and $91 million. Warning! GuruFocus has detected 8 Warning Signs with MPAA. Release Date: June 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net sales increased by 5.5% to a record $757 million, demonstrating strong revenue growth. Gross profit rose by 16.1% to a record $154 million, indicating improved profitability. The company generated solid cash flow from operating activities amounting to $45.5 million. Net bank debt was reduced by $32.6 million, reflecting effective debt management. The company repurchased 542,134 shares, enhancing shareholder value through buybacks. The company faced a net loss of $722,000 for the fiscal fourth quarter, impacted by tariff costs. Non-cash expenses, including foreign exchange losses, negatively affected financial results. Tariffs continue to cause uncertainty, impacting cash flow and financial planning. Gross margin was impacted by non-cash expenses and one-time cash expenses related to tariffs. The effective tax rate was affected by the inability to recognize the benefit of losses in certain jurisdictions. Q: Selwyn, you mentioned tariffs increasing strategic competitive advantage. Can you expand on how tariffs might help with market share? A: Selwyn Joffe, CEO: We've adjusted our footprint to be less dependent on China, with less than 25% of our products imported from there. We ship directly from our factories, paying tariffs only when products are sold, which is cash neutral once price increases are in place. Competitors holding inventory in the U.S. will face greater cash alignment challenges. Q: How will customer pricing impact gross margin, especially with tariffs? A: David Lee, CFO: Tariffs might slightly negatively impact gross margin, but our initiatives to expand margins should offset this. Fiscal '25 adjusted gross margin was around 22.5%, and we aim to grow from that in fiscal '26. Q: Is the tariff impact seen this quarter a good representation of future expectations? A: Selwyn Joffe, CEO: The timing impact of tariffs is unpredictable, but we expect it to diminish soon as price increases take effect. Exact guidance on tariffs is uncertain at this time. Q: Have the price increases you mentioned already been enacted? A: Selwyn Joffe, CEO: Yes, almost 100% of our price increases have been accepted. Q: Can you elaborate on the catalysts behind expected margin expansion in the next fiscal year? A: David Lee, CFO: We're focused on lowering cost per unit and increasing sales per unit. Our momentum is strong, with natural overhead absorption and several operating initiatives driving efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
ASTARTA Holding NV (WAR:AST) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue: Lower revenue volumes in the Agricultural segment compared to the previous year. EBITDA Margin: Increased due to lower selling and distribution costs, despite lower EBITDA. Operating Cash Flow: Reduced from EUR42 million to EUR35 million before working capital adjustments. Investment Cash Flow: Significant increase to EUR20 million for agricultural fleet replacement and soy protein concentrate project. Net Financial Debt: Positive cash position with low leverage ratios. Corn Sales Volume: Decreased to over 110,000 tons from 200,000 tons last year. Sunflower Seed Pricing: Positive pricing environment contributing to margin improvement. Sugar Sales Volume: Higher volumes offset lower average prices of EUR525 per unit. Sugar EBITDA Margin: Increased to 15% due to lower SG&A expenses. Soybean Processing Gross Margin: Decreased to 19% due to lower crush margins. Cattle Farming EBITDA: Negative EBITDA due to EUR8 million negative biological asset revaluation. Warning! GuruFocus has detected 6 Warning Signs with LPSIF. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ASTARTA Holding NV (WAR:AST) reported a higher EBITDA margin due to lower selling and distribution costs. The company maintains a positive cash position with low leverage ratios. There is a positive pricing environment for corn and sunflower seeds, which positively impacted margins. Sugar production saw higher sales volumes, offsetting lower prices, and half of the sales were exported. The company is investing significantly in expanding its operations, including a new soy protein concentrate plant and agricultural machinery. First quarter revenue volumes were lower due to the majority of produce being sold by year-end. EBITDA was lower despite a higher margin, indicating reduced profitability. Cattle farming faced negative biological asset revaluation, leading to a negative EBITDA for the segment. Soybean processing profitability decreased due to lower crush margins. The company faces uncertainty in the EU market due to trade regime changes, impacting sugar exports. Q: Why was the cattle value biological assets reduced by EUR8.1 million despite constant milk prices? A: Liliia Lymanska, CFO, explained that aside from quantity, price expectations and costs influenced the biological asset value. They expect lower prices and higher costs compared to the previous period. Q: How will the end of the EU agreement to free import from Ukraine impact Astarta's cash flow and earnings? A: Yuliya Bereshchenko, Investor Relations Director, stated that the company has operated under similar conditions before the war, serving global markets. Products like soybeans and corn were not impacted by quotas, and sugar is now sold to the Middle East. Q: Are there plans to increase the amount of land used for production in 2026? A: Yuliya Bereshchenko noted that the land bank remains stable with minor annual optimizations. They are open to opportunities for leases in neighboring areas to maintain stability. Q: What CapEx is planned for the rest of 2025 and in which areas? A: Liliia Lymanska highlighted that the main areas include the new SPC plant, agricultural machinery, farm reconstruction, and a new oilseed crusher. Q: How does the company plan to mitigate the impact of EU tariffs and trade restrictions, particularly on grain exports? A: Yuliya Bereshchenko explained that sugar is exported globally, mainly to the Middle East. For grains, there is no issue placing wheat in global markets, and corn supplies were not restricted. The reopening of Odesa ports provides access to different markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
03-06-2025
- Business
- Globe and Mail
IBN Technologies Positions Account Receivable Automation as Strategic Pillar for U.S. Finance Teams
"Accounts Receivable Automation [USA]" Explore how IBN Technologies is driving accounts receivable automation across U.S. finance teams. Learn how businesses are improving processing accuracy, unlocking Early Payment Discounts, and gaining better cash flow visibility through smart, AI-powered automation strategies Miami, Florida - 3 June, 2025 - A notable transformation is underway in corporate finance departments across the United States, as organizations continue to formalize the requirement for Accounts Receivable Automation within their operational frameworks. The adoption of automation in receivables is gaining momentum, with companies increasingly embedding these systems into their financial structures to enhance accuracy, visibility, and responsiveness. The focus is shifting toward integrated platforms that support real-time tracking, consistent reporting, and streamlined processes across departments. Analysts observe that this movement reflects a broader commitment to precision and performance within modern finance teams. As implementation expands, businesses are leveraging technology to Optimize Accounts Receivable, supporting sustainable growth, faster decision-making, and improved financial continuity in today's evolving business environment. Discover smarter receivables management. Book a free consultation: Escalating Challenges Without Automation As financial operations grow in scale and complexity, concerns surrounding manual accounts receivable management are intensifying. The absence of advanced automation services amplifies inefficiencies, delays cash conversion cycles, and obscures critical financial data. These factors contribute to operational friction that impedes accurate cash flow management and hinders strategic decision-making. Prolonged processing times are impacting liquidity Increased potential for errors and data discrepancies Lack of real-time access to receivables status Elevated Days Sales Outstanding (DSO) metrics Fragmented workflows causing redundancies, underscoring the need for comprehensive workflow automation services Addressing these challenges requires engagement with specialized providers who possess deep expertise in accounts receivable process automation. Organizations such as IBN Technologies deliver advanced, customized solutions that enhance financial clarity and operational agility, enabling businesses to align receivables processes with evolving market demands. Advanced Solutions Shape Demand As enterprises navigate increasing complexities in managing receivables, there is a pronounced shift toward deploying sophisticated automation solutions. These technologies enhance operational efficiency, mitigate errors, and deliver financial insights customized to meet evolving organizational requirements. Adherence to accounts receivable automation best practices has emerged as a critical factor for optimizing process accuracy and control. • Automated invoice generation and expedited distribution • Real-time visibility into outstanding receivables • Integrated payment processing with automated reconciliation • Workflow automation services to streamline interdepartmental collaboration • Robust analytics and reporting frameworks enabling data-driven decision-making Successful deployment of these solutions often involves collaboration with specialized providers experienced in accounts receivable process automation. Partnering with such experts enables organizations to implement customized strategies that align technological capabilities with business objectives, thereby enhancing cash flow optimization and reinforcing financial governance. As more enterprises look to modernize their finance functions, leadership voices are emphasizing the strategic importance of intelligent automation: 'AI and automation are redefining how businesses manage receivables. Account receivable automation is now central to building faster, smarter finance operations.' — Ajay Mehta, CEO, IBN Technologies Proven Results in AR Automation Organizations across sectors are reporting significant improvements through customized accounts receivable automation solutions. By adopting advanced automation, companies are enhancing receivables management, boosting processing accuracy, and increasing visibility into cash flow, demonstrating the tangible operational benefits in finance functions. A U.S.-based healthcare provider notably reduced invoice processing times to just four minutes per transaction, driving substantial efficiency gains across its high-volume receivables operations. The deployment of multi-channel invoice ingestion standardized data capture and improved invoice reconciliation consistency, strengthening control over the receivables ledger and overall financial governance. Future Prospects of Accounts Receivable Automation The future of accounts receivable automation is being shaped by rapid advancements in AI and automation, redefining how finance functions operate and scale. Intelligent systems are expected to drive greater accuracy, speed, and foresight across receivables workflows—from dynamic invoice generation to predictive payment modeling. As integration deepens across enterprise platforms, finance teams will gain real-time visibility, enabling sharper decision-making and more agile cash flow management. With AI enhancing pattern recognition and automation accelerating transaction cycles, accounts receivable is poised to evolve into a strategic engine for business growth and financial resilience. Related Services: Intelligent Process Automation: About IBN Technologies IBN Technologies LLC, an outsourcing specialist with 25 years of experience, serves clients across the United States, United Kingdom, Middle East, and India. Renowned for its expertise in RPA, Intelligent process automation includes AP Automation services like P2P, Q2C, and Record-to-Report. IBN Technologies provides solutions compliant with ISO 9001:2015, 27001:2022, CMMI-5, and GDPR standards. The company has established itself as a leading provider of IT, KPO, and BPO outsourcing services in finance and accounting, including CPAs, hedge funds, alternative investments, banking, travel, human resources, and retail industries. It offers customized solutions that drive AR efficiency and growth. Media Contact Company Name: IBN Technologies LLC Contact Person: Pradip Email: Send Email Phone: +1 844-644-8440 Address: 66, West Flagler Street Suite 900 City: Miami State: Florida 33130 Country: United States Website:
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16-05-2025
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Xero Ltd (XROLF) (FY 2025) Earnings Call Highlights: Strong Revenue Growth and Strategic Investments
Revenue: Increased by 23% to $2.103 billion year over year. Adjusted EBITDA: Rose by 22% to $641 million, up $114 million from the previous year. Rule of 40 Outcome: Achieved 44.3%, up 3.3 percentage points year over year. Subscriber Growth: Underlying growth of 10% after removing 160,000 long idle subscriptions. ARPU Growth: Increased by 11% on an underlying basis. Free Cash Flow Margin: Expanded to 24.1%. AMRR: Surpassed $2.3 billion, up 22% year over year. Churn Rate: Low at 1.03% for the year. Operating Expenses Ratio: Achieved 71.8% for fiscal '25. Cash and Liquidity: Total net cash addition of $683 million, with approximately $2.3 billion in available liquidity. Payment Revenue Growth: Increased by 65% year over year. Platform Revenue Growth: Accelerated to 29% year over year. Sales and Marketing Costs: Increased by 23%, maintaining a flat percentage of revenue at 31.6%. Warning! GuruFocus has detected 4 Warning Sign with XROLF. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xero Ltd (XROLF) reported a 23% increase in revenue, reaching $2.103 billion year on year. Adjusted EBITDA rose by 22% to $641 million, demonstrating strong financial performance. The company achieved a Rule of 40 outcome of 44.3%, indicating a balance between growth and profitability. Subscriber growth was robust, with a 10% increase in underlying subscribers and an 11% rise in ARPU. Xero Ltd (XROLF) expanded its payment offerings, resulting in a 65% increase in payment revenue year on year. The removal of long idle subscriptions impacted subscriber growth metrics. Subscriber growth in Canada was limited due to a subdued market backdrop. The company faces tougher revenue growth comparisons in the first half of fiscal '26 due to strong prior performance. There is a potential ARPU headwind in the UK due to the introduction of the lower-priced Xero Simple product. The North American market still requires significant investment to fully capture growth opportunities. Q: At the Investor Day, you targeted an improvement in the long-term OpEx to sales ratio. For FY27, will you target an improvement versus the 71.5% headline FY25 number or the 69% to 70% underlying FY25 number? A: Claire Bramley, CFO: We're pleased with our FY25 OpEx ratio performance and have set a 71.5% guidance for FY26. There are nonrecurring items included in this figure. Looking forward, we're focused on investing for growth, maintaining a disciplined approach to drive free cash flow margins and top-line growth, aiming for a Rule of 40 outcome. Q: Can you provide an update on the North American product roadmap and what's holding Xero back in terms of product gaps? A: Sukhinder Cassidy, CEO: We've improved product market fit with core accounting and are building a full stack of competitive products. We've released end-of-period reconciliation and improved bank feeds. We're also working on embedding payroll with Gusto. Incremental brand spend is planned, but significant investment will require a multiyear approach. Q: Regarding AI, where do you see incremental opportunities to broaden product capability and monetize it? A: Sukhinder Cassidy, CEO: We're pleased with JAX's progress, now in beta for all subscribers. We aim to expand its utility across all platform jobs, including bank reconciliation and analytics. Monetization is a long-term opportunity, but our current focus is on expanding product utility. Q: What are your first impressions and potential changes you might consider at Xero? A: Claire Bramley, CFO: I'm excited to join Xero, which has shown strong growth and profitability. We aim to balance operating leverage with growth investments, focusing on returns and customer value. Our capital management strategy remains focused on building, partnering, and buying, with a strong balance sheet providing optionality. Q: Can you discuss the US growth opportunity and the importance of partnerships like Gusto? A: Sukhinder Cassidy, CEO: We control retail pricing and aim to drive ARPU growth through partnerships. A full value proposition in the US is crucial for sustainable economics. We plan to invest significantly in brand awareness once we have a complete offering. Q: How do you view the balance between subscriber growth and ARPU growth, especially in ANZ? A: Sukhinder Cassidy, CEO: We're excited about opportunities in both ANZ and international markets. In ANZ, we see potential to deepen customer engagement and product capabilities. Internationally, we focus on underpenetrated markets, balancing subscriber growth with ARPU expansion. Q: Can you clarify if Xero is prepared to dip below the Rule of 40 for investment opportunities? A: Claire Bramley, CFO: The Rule of 40 is an aspiration, not a strict guidance. We aim to balance investments in growth with operating leverage and profitability. We'll continue to invest strategically to drive both revenue and profitability growth. Q: What are your expectations for subscriber interest related to Making Tax Digital in the UK? A: Sukhinder Cassidy, CEO: Historically, subscriber interest tends to pick up closer to the deadline rather than early. We expect similar behavior with the upcoming mandate, with Xero Simple for SPs launching this summer. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
