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Cision Canada
19 minutes ago
- Business
- Cision Canada
International Tower Hill Mines Files 2025 Second Quarter Financial Results
VANCOUVER, BC, Aug. 8, 2025 /CNW/ - International Tower Hill Mines Ltd. (the "Company") - (TSX: ITH) (NYSE American: THM) today announced that it has filed its unaudited second quarter Financial Statements and associated Management Discussion and Analysis and Quarterly Report on Form 10-Q for the three- and six-month period ended June 30, 2025. Shareholders can obtain copies of the Company's unaudited second quarter Financial Statements and associated Management Discussion and Analysis and Form 10-Q on SEDAR+ at: EDGAR at and on the Company's website at: The Company will also provide hard copies of these documents, free of charge, to shareholders who request a copy directly from the Company. About International Tower Hill Mines Ltd. International Tower Hill Mines Ltd. has a 100% interest in its Livengood Gold Project located along the paved Elliott Highway, 70 miles north of Fairbanks, Alaska. On behalf of International Tower Hill Mines Ltd. (signed) Karl L. Hanneman Chief Executive Officer SOURCE International Tower Hill Mines Ltd.
Business Wire
a day ago
- Business
- Business Wire
RioCan Announces Strong Second Quarter Results - Continued Operational Excellence and Strategic Capital Recycling Advancements
TORONTO--(BUSINESS WIRE)--RioCan Real Estate Investment Trust ('RioCan' or the 'Trust') (TSX: announced today its financial results for the three and six months ended June 30, 2025. 9.3% growth of FFO per unit to $0.47 Capitalizing on mark-to-market opportunities, generated new leasing spreads of 51.5%; blended leasing spreads of 20.6% Closed four previously announced firm sales of RioCan Living ™ assets, bringing total RioCan Living asset dispositions to five; total year-to-date closed dispositions of $230 million at an average capitalization rate of 4.3% 'RioCan delivered another quarter of strong results and sustained leasing momentum, highlighted by exceptional leasing spreads and a high retention rate. The continued demand from high-quality retailers underscores the strength of the RioCan portfolio and reinforces our position as the landlord of choice,' said Jonathan Gitlin, President and CEO of RioCan. 'We continue to simplify our business, progress our capital recycling initiatives, and successfully execute our de-leveraging plan. These initiatives sharpen the operational focus of the Trust and enhance our financial flexibility to drive sustained growth.' FFO per unit increased to $0.47, up $0.04 or 9.3% from the same period last year. This growth was driven by strong operating performance, reduced G&A expenses, accretion from unit buybacks in the current year and higher residential inventory gains. Higher interest expense partially offset these increases in FFO. Net income per unit of $0.49 was $0.08 per unit higher than the same period last year, reflecting greater fair value gains of $15.9 million on investment properties, compared to $5.9 million in the prior year quarter, in addition to the items noted for FFO above. Adjusted Debt to Adjusted EBITDA 1 improved to 8.88x, ratio of unsecured to secured debt reached 61% to 39% and the FFO Payout Ratio 1 was 60.5%. RioCan's strong balance sheet, reinforced by $1.3 billion of Liquidity 1 and $9.0 billion in Unencumbered Assets 1, enables flexibility and optimization of capital allocation. 1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. Expand Outlook Our outlook remains aligned with the guidance provided in Q1 2025: (i) Refer to the Outlook section of the Management Discussion and Analysis for the three and six months ended June 30, 2025 for further details. 1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. Expand (i) Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments. (ii) Information presented as at respective periods then ended. (iii) At RioCan's Proportionate Share. Expand Leasing Progress: 1.3 million square feet were leased in the Second Quarter, including 1.2 million square feet of renewals. Leasing Spreads: In the Second Quarter, RioCan achieved a blended leasing spread of 20.6% with a new leasing spread of 51.5% and a renewal leasing spread of 17.4%, marking three consecutive quarters of leasing spreads at least in the high-teens. RioCan continued to capitalize on mark-to-market opportunities, achieving an average blended leasing spread of 23.5% on market deals. 72% of renewals were at market rates, while retaining high-quality essential retailers, including the renewal of eight grocery anchors in the quarter. The retention ratio of 91.6% reflects an effective balance between upgrading tenant quality and preserving strong tenancies, with elevated leasing spreads confirming the success of this strategy. Same Property NOI: Commercial Same Property NOI 1 growth was 2.0% in the Second Quarter. Excluding the impact of higher legal and CAM/property tax settlements and a provision reversal in the prior year, Commercial Same Property NOI growth is 4.0%. Full year guidance for SPNOI is unchanged at ~3.5%. Occupancy: RioCan's committed occupancy and retail committed occupancy were strong at 97.5% and 98.2%. Committed occupancy benefited from strong, more resilient retailers replacing transitional tenants who were paying under-market rents and offset the impact of recently vacated HBC units at Georgian Mall, Oakville Place and Tanger Ottawa. Our leasing team is actively working toward backfilling these units. Market Demographics: Average population and household income within a five-kilometre radius of RioCan's portfolio increased by 1% and 5% to 277,000 and $155,000, respectively from the previous year. RioCan Living - Residential Rental: Residential rental operations generated $9.0 million of NOI, an increase of $1.8 million or 25.0% over the same period last year. As of June 30, 2025, there are 14 buildings in operation with a total fair value of $1.1 billion. RioCan continues to execute on its strategy of unlocking the value in its residential portfolio. Refer to the Capital Recycling section in this News Release for further details. RioCan Living - Residential Condominium: The construction loan for U.C. Tower 2 & 3 was fully repaid in the Second Quarter. The outstanding balance on the 11YV construction loan was reduced to $3.6 million reflecting payments made through to August 7, 2025. As a result, as of August 7, 2025, RioCan's debt decreased by $124.2 million, and its outstanding guarantees related to 11YV declined by $298.0 million compared to Q1 2025. Full repayment of the remaining 11YV construction loan balance is expected in Q3 2025. Interim closings have commenced at Queen & Ashbridge and U.C. Tower 3. Adjusted G&A Expense as a percentage of rental revenue 1: Improved to 3.7% on a YTD basis, down from 4.1% from net G&A savings from the 2024 restructuring. Capital Recycling: As of August 7, 2025, closed dispositions totalled $230.4 million, aligning with IFRS values. For the six months ended June 30, 2025, we completed $53.0 million of lower-growth asset dispositions including the sale of a Cineplex-anchored property, a single-tenant property and part of an open-air retail site in Quebec. Subsequent to quarter end, RioCan closed four previously announced firm sales of its 50% interest in RioCan Living properties. Including Strada, which closed in 2024, five RioCan Living properties have been sold. RioCan has also entered into a conditional agreement for the sale of an additional RioCan Living asset. Normal Course Issuer Bid (NCIB): The Trust believes that the market price of its units does not fully reflect the underlying value and future prospects of its business, making purchasing its own units an attractive investment opportunity. During the six months ended June 30, 2025, the Trust acquired and cancelled 5.6 million Units at a weighted average price of $17.99 per unit for a cost of $100.1 million. Purchases were funded through proceeds from mortgages and other loan receivables repayments of $66.6 million received by the Trust during the Second Quarter, and the sale of two low-growth assets: RioCan Centre Vaughan, which closed in Q4 2024, and the aforementioned Cineplex-anchored property, which closed in Q1 2025. Investing: On April 1, 2025, RioCan acquired, upon stabilization, a 90% interest in Phase Two and Three of Market in Montreal, Quebec for the purchase price of $125.3 million. This acquisition was pursuant to a forward purchase agreement previously announced during the purchase of Phase One of the project in 2022. Balance Sheet and Liquidity: As of June 30, 2025, the Trust's Adjusted Debt to Adjusted EBITDA ratio improved to 8.88x from 8.98x at the end of 2024, in line with its target range of 8.0x - 9.0x. The Adjusted Spot Debt to Adjusted EBITDA ratio improved to 9.02x from 9.12x at the end of 2024, and we expect this metric to be well within the 8.0x - 9.0x range next quarter. The Trust has $1.3 billion of Liquidity to meet its financial obligations, including a $1.1 billion from its revolving unsecured operating line of credit. On June 23, 2025, the Trust enhanced its liquidity position by closing on a $200.0 million 5.3-year non-revolving unsecured credit facility, with a floating interest rate of 4.49%, which was negotiated on terms and pricing that is consistent with our revolving unsecured operating line of credit. On June 25, 2025, the maturity date of the revolving unsecured operating line of credit was extended to May 31, 2030 and certain covenants were amended to provide the Trust with additional operational and financial flexibility. The Trust's unencumbered asset pool increased to $9.0 billion at the end of the Second Quarter from $8.2 billion at the end of 2024 as the Trust progressed towards its target Ratio of Unsecured Debt to Total Contractual Debt 1. As of June 30, 2025, the Ratio of Unsecured Debt to Total Contractual Debt increased to 61% from 56% and the weighted average term to maturity of its debt portfolio was extended to 3.81 years from 3.72 years, both compared to the end of 2024 and on a proportionate share basis. The Trust continues to improve its mix of unsecured debt to total debt, growing its unencumbered asset pool. After factoring in the closed RioCan Living sales and repayment of maturing mortgages payable and construction lines subsequent to quarter end, RioCan's pro forma metrics on a proportionate share basis are as follows: 1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. Expand RC-HBC LP On June 3, 2025, RC-HBC LP ("RC-HBC LP" or "the LP") was transitioned into a court-approved receivership (the "Receivership Proceedings"), which was a process requested by RioCan. RioCan is working with the receiver and other stakeholders to swiftly advance and execute solutions for the LP's properties to benefit the limited partners and its stakeholders. RioCan's net investment in the LP as at June 30, 2025 was $40.2 million or 0.5% of total RioCan's equity. Changes to the Board of Trustees Effective June 30, 2025, Richard Dansereau resigned from his position as a Trustee on RioCan's Board of Trustees. Mr. Dansereau's resignation follows his recent appointment to an executive role at Desjardins Global Asset Management, the terms of which do not permit him to serve on outside public Boards. 'On behalf of the entire Board, I want to extend our sincere gratitude to Richard for his years of dedicated service,' said Ed Sonshine, Chairman of the Board. 'Richard was deeply committed and brought expertise, thoughtful perspective and integrity to the Board. We wish him all the best in his future endeavors.' As a result of this resignation, RioCan's Board of Trustees is now comprised of nine members. Conference Call and Webcast Interested parties are invited to participate in a conference call with management on Friday, August 8, 2025 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating. To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 830267. For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 781825. To access the simultaneous webcast, visit RioCan's website at Events and Presentations and click on the link for the webcast. About RioCan RioCan meets the everyday shopping needs of Canadians through the ownership, management and development of necessity-based and mixed-use properties in densely populated communities. As at June 30, 2025, our portfolio is comprised of 178 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan's interest). To learn more about us, please visit Basis of Presentation and Non-GAAP Measures All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan's unaudited interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2025, which are available on RioCan's website at and on SEDAR+ at Consistent with RioCan's management framework, management uses certain financial measures to assess RioCan's financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations ('FFO'), FFO per unit, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI ("Commercial SPNOI"), FFO Payout Ratio, Adjusted G&A Expense as a percentage of rental revenue, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, Adjusted Debt to Adjusted EBITDA, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust's underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan's performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the " Non-GAAP Measures ' section in RioCan's MD&A for the three and six months ended June 30, 2025. The reconciliations for non-GAAP measures included in this News Release are outlined as follows: The following table reconciles the consolidated balance sheets from IFRS to RioCan's proportionate share basis as at June 30, 2025 and December 31, 2024: The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three and six months ended June 30, 2025 and 2024: Six months ended June 30 2025 2024 (in thousands) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Revenue Rental revenue $ 587,995 $ (8,177) $ 579,818 $ 564,243 $ 16,262 $ 580,505 Residential inventory sales 121,275 57,093 178,368 23,334 77,931 101,265 Property management and other service fees 8,215 (779) 7,436 8,008 (597) 7,411 717,485 48,137 765,622 595,585 93,596 689,181 Operating costs Rental operating costs Recoverable under tenant leases 211,929 1,770 213,699 202,220 1,731 203,951 Non-recoverable costs 21,296 5,066 26,362 16,640 1,343 17,983 Residential inventory cost of sales 81,981 48,372 130,353 14,622 62,934 77,556 315,206 55,208 370,414 233,482 66,008 299,490 Operating income (loss) 402,279 (7,071) 395,208 362,103 27,588 389,691 Other income (loss) Interest income 21,073 595 21,668 19,786 1,075 20,861 Income (Loss) from equity-accounted investments (199,257) 199,257 — 18,821 (18,821) — Fair value gain (loss) on investment properties, net 1,151 (154,059) (152,908) 9,138 (2,202) 6,936 Investment and other income (loss), net 3,579 (34,384) (30,805) 3,639 (1,831) 1,808 (173,454) 11,409 (162,045) 51,384 (21,779) 29,605 Other expenses Interest costs, net 136,669 4,428 141,097 125,832 5,902 131,734 General and administrative 21,739 36 21,775 28,527 25 28,552 Internal leasing costs 6,498 — 6,498 6,685 — 6,685 Transaction and other costs 2,460 (126) 2,334 2,278 (118) 2,160 167,366 4,338 171,704 163,322 5,809 169,131 Income before income taxes $ 61,459 $ — $ 61,459 $ 250,165 $ — $ 250,165 Current income tax recovery — — — (794) — (794) Net income $ 61,459 $ — $ 61,459 $ 250,959 $ — $ 250,959 Expand NOI and Same Property NOI The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2025 and 2024: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Operating Income $ 200,200 $ 185,688 $ 402,279 $ 362,103 Adjusted for the following: Property management and other service fees (4,067) (3,469) (8,215) (8,008) Residential inventory gains (17,709) (5,266) (39,294) (8,712) Operational lease revenue from ROU assets, net (i) 2,317 1,783 4,656 3,478 NOI $ 180,741 $ 178,736 $ 359,426 $ 348,861 Expand (i) Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025. Expand Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Commercial Commercial Same Property NOI $ 152,491 $ 149,571 $ 299,510 $ 291,617 NOI from income producing properties: Acquired (i) 27 13 1,770 1,496 Disposed (i) 733 2,242 1,753 4,880 760 2,255 3,523 6,376 NOI from completed commercial developments 10,819 11,044 22,072 20,582 NOI from properties under de-leasing (ii) 4,752 4,873 9,883 9,575 Lease cancellation fees 117 1,600 2,324 1,711 Straight-line rent adjustment (iii) 2,783 2,179 5,619 5,426 NOI from commercial properties 171,722 171,522 342,931 335,287 Residential Residential Same Property NOI 5,320 5,476 10,414 10,586 NOI from income producing properties: Acquired (i) 1,676 522 2,155 864 Disposed (i) 11 174 — 320 1,687 696 2,155 1,184 NOI from completed residential developments 2,012 1,042 3,926 1,804 NOI from residential rental 9,019 7,214 16,495 13,574 NOI $ 180,741 $ 178,736 $ 359,426 $ 348,861 Expand (i) Includes properties acquired or disposed of during the periods being compared. (ii) NOI from limited number of properties undergoing significant de-leasing in preparation for redevelopment or intensification. (iii) Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025. Expand Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Commercial Same Property NOI $ 152,491 $ 149,571 $ 299,510 $ 291,617 Residential Same Property NOI 5,320 5,476 10,414 10,586 Same Property NOI $ 157,811 $ 155,047 $ 309,924 $ 302,203 Expand FFO The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2025 and 2024: Three months ended June 30 Six months ended June 30 (thousands of dollars, except where otherwise noted) 2025 2024 2025 2024 Net income attributable to Unitholders $ 145,615 $ 122,363 $ 61,459 $ 250,959 Add back (deduct): Fair value (gains), net (15,929) (5,887) (1,151) (9,138) Fair value losses included in equity-accounted investments 1,570 1,810 154,059 2,202 Other RC-HBC LP Valuation Losses 154 — 56,450 — Internal leasing costs 3,242 3,092 6,498 6,685 Transaction losses on investment properties, net (i) 714 1,508 281 1,457 Transaction gains on equity-accounted investments — — — (31) Transaction costs on sale of investment properties 614 73 1,045 947 ERP implementation costs — 1,874 — 4,410 ERP amortization (434) (409) (868) (409) Change in unrealized fair value on marketable securities — 142 — 1,260 Current income tax recovery — — — (794) Operational lease revenue from ROU assets 1,914 1,427 3,821 2,772 Operational lease expenses from ROU assets in equity-accounted investments (18) (17) (36) (34) Capitalized interest related to equity-accounted investments (ii): Capitalized interest related to properties under development 53 117 92 249 Capitalized interest related to residential inventory 1,011 1,693 2,420 3,206 FFO $ 138,506 $ 127,786 $ 284,070 $ 263,741 Add back (deduct): Restructuring costs — — 255 646 FFO Adjusted $ 138,506 $ 127,786 $ 284,325 $ 264,387 FFO per unit - basic $ 0.47 $ 0.43 $ 0.96 $ 0.88 FFO per unit - diluted $ 0.47 $ 0.43 $ 0.96 $ 0.88 FFO Adjusted per unit - diluted $ 0.47 $ 0.43 $ 0.96 $ 0.88 Weighted average number of Units - basic (in thousands) 296,093 300,463 296,873 300,461 Weighted average number of Units - diluted (in thousands) 296,093 300,463 296,873 300,461 FFO for last four quarters $ 556,300 $ 532,053 Distributions paid for last four quarters $ 336,553 $ 327,471 FFO Payout Ratio 60.5% 61.5% Expand (i) Represents net transaction gains or losses connected to certain investment properties during the period. (ii) This amount represents the interest capitalized to RioCan's equity-accounted investment in WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, PR Bloor Street LP and RC Yorkville LP. This amount is not capitalized to development projects under IFRS but is allowed as an adjustment under REALPAC's definition of FFO. Expand Adjusted G&A Expense Adjusted G&A Expense for the three and six months ended June 30, 2025 and 2024 are as follows: Total Contractual Debt The following table reconciles total debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024: Unsecured and Secured Debt The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024: (i) Sales proceeds net of mortgages payable associated with assets held for sale assumed by purchaser. Expand Liquidity As at June 30, 2025, RioCan had approximately $1.3 billion of Liquidity as summarized in the following table: Adjusted EBITDA The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA: (i) The fair value gains and losses on marketable securities may include both the change in unrealized fair value and realized gains and losses on the sale of marketable securities. By adding back the change in unrealized fair value on marketable securities, RioCan effectively continues to include realized gains and losses on the sale of marketable securities in Adjusted EBITDA and excludes unrealized fair value gains and losses on marketable securities in Adjusted EBITDA. (ii) Includes transaction gains and losses realized on the disposition of investment properties. Expand Adjusted Debt to Adjusted EBITDA Ratio Adjusted Debt to Adjusted EBITDA is calculated as follows: (i) Adjusted EBITDA is reconciled in the immediately preceding table. Expand Adjusted Spot Debt to Adjusted EBITDA ratio is calculated as follows: (i) Adjusted EBITDA is on a rolling twelve-month basis. Expand Unencumbered Assets The tables below summarize RioCan's Unencumbered Assets as at June 30, 2025 and December 31, 2024: Forward-Looking Information This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan's objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as 'outlook', 'objective', 'may', 'will', 'would', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'should', 'plan', 'continue', or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan's current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the ' Risks and Uncertainties ' section in RioCan's MD&A for the three and six months ended June 30, 2025 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan's views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Cision Canada
2 days ago
- Business
- Cision Canada
Pason Reports Second Quarter 2025 Results and Declares Quarterly Dividend
CALGARY, AB, Aug. 6, 2025 /CNW/ - Pason Systems Inc. ("Pason" or the "Company") (TSX: PSI) (OTC: PSYTF) announced today its 2025 second quarter results and the declaration of a quarterly dividend. The following news release should be read in conjunction with the Company's Management Discussion and Analysis ("MD&A"), the unaudited Condensed Consolidated Interim Financial Statements and related notes for the three and six months ended June 30, 2025, as well as the Annual Information Form for the year ended December 31, 2024. All of these documents are available on SEDAR+ at Financial Highlights (1) Non-GAAP and supplementary financial measures are defined under Non-GAAP Financial Measures in this press release. (2) Includes additions to property, plant, and equipment and development costs, net of proceeds on disposal from Pason's Condensed Consolidated Interim Statements of Cash Flows Pason generated $96.4 million in consolidated revenue in the second quarter of 2025, representing an increase from the $95.9 million generated in the comparative period of 2024 and a result that continues to outpace underlying industry conditions. Despite industry activity decreasing 5% in North America in the second quarter when compared to the second quarter of 2024 the North American Drilling business unit generated $62.5 million of revenue in the second quarter of 2025, only a 2% decrease over the comparative period of 2024. Contributing to North American Drilling's outperformance during this time, Pason's Revenue per Industry Day increased 3% to $1,026 from the comparative 2024 period. While a stronger US dollar year over year negatively impacted US dollar sourced operating expenses in the second quarter of 2025, this increase was offset by lower levels of repairs. As a result, segment gross profit of $34.0 million during the second quarter of 2025 compared to $34.1 million in the comparative period of 2024, as a result of the aforementioned factors. The International Drilling business unit generated $13.6 million of revenue and $6.4 million in gross profit in the second quarter of 2025, both representing decreases over the comparative period of 2024. The International Drilling business has been impacted by lower levels of activity within the Company's Argentinian operations resulting from a change in a large customer's operational focus away from conventional wells toward more unconventional drilling, leading to a reduction in active rigs pending results from this shift. Industry conditions for completions activity in North America continued to be challenging in the second quarter of 2025 with active frac spreads in the US declining by 25% from the prior year comparative period. However, against this backdrop the Company's Completions segment generated $15.3 million in revenue representing a 12% increase from the prior year comparative period. During the second quarter of 2025, the business unit averaged 33 IWS Active Jobs, up from both 29 in the second quarter of 2024, and 32 in the first quarter of 2025. Revenue per IWS day of $5,069 decreased slightly from $5,103 in Q2 2024. Revenue per IWS Day will fluctuate depending on the mix of technology adopted amongst those existing customers. Segment gross profit of $1.2 million in the quarter compares to $1.4 million in the prior year comparative quarter, and includes $6.2 million of depreciation and amortization expense, of which $2.2 million relates to amortization expense on intangible assets acquired through the IWS Acquisition. Revenue generated by the Solar and Energy Storage business unit was $5.0 million, a 58% increase from the comparative period in 2024. Revenue grew year over year with an increased number of control systems delivered in the current quarter. With the increase in revenue, operating expenses were $5.5 million during the second quarter of 2025 which includes costs of goods sold on controls systems revenue. Resulting segment gross loss was $0.6 million for the second quarter of 2025 compared to $nil in the comparable period in 2024. Pason generated $31.6 million in Adjusted EBITDA, or 32.7% of revenue in the second quarter of 2025, compared to $33.1 million or 34.6% of revenue in the second quarter of 2024. While revenue grew year over year, a comparison of Adjusted EBITDA margins reflects higher levels of revenue generated by the Company's Completions and Solar and Energy Storage segments at lower margins given the investments made for the current stage of growth of those segments. The Company recorded net income attributable to Pason of $12.6 million ($0.16 per share) in the second quarter of 2025, compared to net income attributable to Pason of $10.9 million ($0.14 per share) recorded in the corresponding period in 2024, reflecting lower Adjusted EBITDA year over year more than offset by lower levels of stock based compensation expense. Sequentially, Q2 2025 consolidated revenue of $96.4 million was a 15% decrease from consolidated revenue of $113.2 million generated in the first quarter of 2025. Adjusted EBITDA of $31.6 million or 32.7% of revenue in the second quarter of 2025 also decreased from $45.2 million or 39.9% of revenue in the first quarter of 2025, driven primarily by decreased revenue within the Company's North American Drilling segment with seasonal slowdowns in Canadian drilling activity and declining US industry activity as well. Further, a review of sequential results highlights the weaker US dollar in the second quarter versus the first quarter, negatively affecting US dollar sourced revenue and Adjusted EBITDA. The International business unit reported revenue of $13.6 million in the second quarter of 2025, down from $14.0 million in the first quarter of 2025 due to lower levels of activity in its Argentinian subsidiary mentioned above. Despite the 6% decline in industry activity Pason's Completions segment generated $15.3 million of revenue in the second quarter of 2025, only a 4% decrease from the first quarter of 2025. As the majority of the Completions' segment's revenue is US dollar sourced, second quarter revenue was negatively affected by a weaker US dollar when compared to the first quarter. Further, the Solar and Energy Storage segment generated $5.0 million of revenue in the second quarter of 2025 compared to revenue of $7.4 million in the first quarter of 2025, with the decrease driven primarily by decreased control system sales. The Company recorded net income attributable to Pason in the second quarter of 2025 of $12.6 million ($0.16 per share) compared to net income attributable to Pason of $20.0 million ($0.25 per share) in the first quarter of 2025 where the decrease quarter over quarter reflects lower levels of Adjusted EBITDA. Pason's balance sheet remains strong, with no interest bearing debt, and $69.3 million in Total Cash as at June 30, 2025, compared to $80.8 million as at December 31, 2024. Pason generated cash from operating activities of $20.2 million in the second quarter of 2025, compared to $26.0 million in the second quarter of 2024, which reflects lower Adjusted EBITDA year over year and higher levels of working capital investments. During the three months ended June 30, 2025, Pason invested $15.0 million in net capital expenditures, a decrease from $17.9 million in the second quarter of 2024. Net capital expenditures in Q2 2025 includes investments associated with supporting the continued growth of the Company's pressure control automation technology offering for the completions segment, the ongoing refresh of Pason's drilling related technology platform and continued investments in the new Pason Mud Analyzer. Resulting Free Cash Flow in the second quarter of 2025 was $5.3 million, compared to $8.0 million in the same period in 2024. In the second quarter of 2025, Pason returned $20.2 million to shareholders through the Company's quarterly dividend of $10.2 million and $10.0 million in share repurchases. President's Message Pason's financial and operating results for the second quarter of 2025 reflected the strength of our competitive position in the face of slowing industry conditions. Consolidated revenue increased 1% to $96.4 million from the second quarter of 2024, despite lower levels of industry activity in both drilling and completions. Our North American drilling segment delivered revenue of $62.5 million in the quarter, down 2% from the prior year despite a 5% decrease in industry activity, driven by 3% year-over-year growth in Revenue per Industry Day to $1,026. International drilling revenue decreased 11% from 2024 levels in the quarter, primarily due to lower activity levels in Argentina as a result of a change in a large customer's operational focus away from conventional wells to more unconventional drilling. While we anticipate this transition to result in lower levels of activity in the short term, we expect to benefit from higher levels of product adoption on unconventional drilling programs over time. Completions segment revenue increased 12% from the prior year in the second quarter, significantly outpacing a 25% decline in the number of active frac spreads in the US in the period. The average number of IWS jobs increased 14% year over year, while Revenue per IWS Day was relatively unchanged from the prior year at $5,069 in the quarter. In our Solar and Energy Storage segment, second quarter revenue of $5.0 million was up 58% from the comparative period of 2024, driven by increased deliveries of control systems. Quarterly revenue for the Solar and Energy Storage segment will fluctuate with the timing of control system deliveries. Adjusted EBITDA for the quarter of $31.6 million was 5% lower than the second quarter of 2024, with margins declining slightly as a result of a greater contribution of revenue from our Completions and Solar and Energy Storage segments, where segment margins are lower owing to their current stage of growth and development. For the first six months of 2025, net capital expenditures totaled $31.7 million, down 15% from the same period of 2024. Free cash flow totaled $28.5 million in the first half of 2025, up 44% from the first half of 2024. Net income attributable to Pason for the six month period totaled $32.7 million. Over the same period, we returned $36.5 million to shareholders, including $20.5 million through our regular dividend and $16.0 million through share repurchases. Our capital allocation priorities remain unchanged. Our highest expected returns on capital come from the investments we are making to generate additional free cash flow in our existing businesses. Our experience through previous cycles has been that maintaining investments focused on service quality and technology development through periods of uncertainty provides the greatest opportunity to expand competitive gaps. We see opportunities for greater adoption of data-driven technologies over time in both drilling and completions, and we intend to ensure our product and service offerings continue to evolve to ensure we can capitalize on those opportunities. With industry activity slowing in 2025, we anticipate capital expenditures will be lower than the $65 million originally planned and we currently expect our 2025 capital program to total between $55 and $60 million for the year. In the current environment of uncertainty and market volatility, we favour maintaining flexibility in our shareholder returns. This involves maintaining our regular quarterly dividend at $0.13 per share and deploying additional capital beyond the requirements of our organic investments and regular dividends to share repurchases. Macroeconomic factors continue to dominate the outlook for industry activity through the remainder of 2025. Ongoing negotiations of international trade deals, geopolitical conflicts, and the unwinding of voluntary production cuts by OPEC+ oil producers are contributing to significant uncertainty in economic forecasts. In light of this uncertainty, while commodity prices have been relatively steady, oil and gas producers have lowered their well construction activity while looking for greater clarity on the outlook. Technology continues to play an important role in helping customers achieve greater efficiencies in drilling and completions operations, and Pason is well positioned to provide the data, technologies and services to support those efforts. Our priorities in navigating the current environment of uncertainty are centered on expanding our service and technology advantages, maintaining a strong balance sheet, and returning capital to shareholders in a disciplined manner. Quarterly Dividend Pason announced today that the Board of Directors have declared a quarterly dividend of thirteen cents (C$0.13) per share on the company's common shares. The dividend will be paid on September 29, 2025 to shareholders of record at the close of business on September 15, 2025. Second Quarter Conference Call Pason will be conducting a conference call for interested analysts, brokers, investors, and media representatives to review its 2025 second quarter results at 9:00 a.m. (MT) on Thursday, August 7, 2025. The conference call dial-in numbers are 1-888-510-2154 or 1-437-900-0527, and the call will be simultaneously audio webcast via: You can access the fourteen-day replay by dialing 1-888-660-6345 or 1-289-819-1450, using password 57062#. An archived audio webcast of the conference call will also be available on Pason's website at Non-GAAP Financial Measures A non-GAAP financial measure has the definition set out in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure". The following non-GAAP measures may not be comparable to measures used by other companies. Management believes these non-GAAP measures provide readers with additional information regarding the Company's operating performance, and ability to generate funds to finance its operations, fund its research and development and capital expenditure program, and return capital to shareholders through dividends or share repurchases. EBITDA and Adjusted EBITDA EBITDA is defined as net income before interest income and expense, income taxes, stock-based compensation expense, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA, adjusted for foreign exchange, impairment of property, plant, and equipment, restructuring costs, net monetary adjustments, government wage assistance, revaluation of put obligation, gain on previously held equity interest and other items, which the Company does not consider to be in the normal course of continuing operations. Management believes that EBITDA and Adjusted EBITDA are useful supplemental measures as they provide an indication of the results generated by the Company's principal business activities prior to the consideration of how these results are taxed in multiple jurisdictions, how the results are impacted by foreign exchange or how the results are impacted by the Company's accounting policies for equity-based compensation plans. Reconcile Net Income to EBITDA Reconcile EBITDA to Adjusted EBITDA Three Months Ended Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 (000s) ($) ($) ($) ($) ($) ($) ($) ($) EBITDA 42,967 22,169 91,510 33,345 42,604 36,030 44,424 31,479 Add: Foreign exchange loss (gain) 681 14,247 714 (1,202) (1,245) 5,574 (170) (1,174) Put option revaluation — (149) — — — (1,413) — — Net monetary loss (1,477) — — — — — — — Gain on previously held equity interest — — (50,830) — — — — — Other 110 2,621 1,031 992 2,789 1,928 958 1,269 Adjusted EBITDA 42,281 38,888 42,425 33,135 44,148 42,119 45,212 31,574 Free cash flow Free cash flow is defined as cash from operating activities plus proceeds on disposal of property, plant, and equipment, less capital expenditures (including changes to non-cash working capital associated with capital expenditures), and deferred development costs. This metric provides a key measure on the Company's ability to generate cash from its principal business activities after funding capital expenditure programs, and provides an indication of the amount of cash available to finance, among other items, the Company's dividend and other investment opportunities. Three Months Ended Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 (000s) ($) ($) ($) ($) ($) ($) ($) ($) Cash from operating activities 31,698 27,412 31,014 25,976 30,375 35,825 39,942 20,231 Less: Net additions to property, plant and equipment (6,474) (7,720) (17,834) (16,695) (12,444) (16,707) (15,268) (13,562) Deferred development costs (208) (375) (1,447) (1,250) (1,277) (1,472) (1,440) (1,393) Free cash flow 25,016 19,317 11,733 8,031 16,654 17,646 23,234 5,276 Supplementary Financial Measures A supplementary financial measure: (a) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company; (b) is not presented in the financial statements of the Company; (c) is not a non-GAAP financial measure; and (d) is not a non-GAAP ratio. Supplementary financial measures found within this press release are as follows: Revenue per Industry Day Revenue per Industry Day is defined as the total revenue generated from the North American Drilling segment over all active drilling rig days in the North American market. This metric provides a key measure of the North American Drilling segment's ability to evaluate and manage product adoption, pricing, and market share penetration. Drilling rig days are calculated by using accepted industry sources. IWS Active Jobs IWS Active Jobs represents the average number of jobs per day that IWS is generating revenue on through the rental of its technology offering to customers during the reporting period. This metric provides a key measure of IWS' market penetration. Revenue per IWS Day Revenue per IWS Day is defined as the total revenue generated by the Completions segment over all IWS active days during the quarter. IWS active days are calculated by using IWS Active Jobs in the reporting period. This metric provides a key measure of the IWS' ability to evaluate and manage product adoption and pricing. Adjusted EBITDA as a percentage of revenue Calculated as adjusted EBITDA divided by revenue. Total Cash Calculated as the sum of cash and cash equivalents, and short-term investments from the Company's Consolidated Balance Sheets. The Company's short term-investments are comprised of US dollar bonds. Forward Looking Information Certain statements contained herein constitute "forward-looking statements" and/or "forward-looking information" under applicable securities laws (collectively referred to as "forward-looking statements"). Forward- looking statements can generally be identified by the words "anticipate", "expect", "believe", "may", "could", "should", "will", "estimate", "project", "intend", "plan", "outlook", "forecast" or expressions of a similar nature suggesting a future outcome or outlook. Without limiting the foregoing, this document includes, but is not limited to, the following forward-looking statements: the Company's growth strategy and related schedules; divergence in activity levels between the geographic regions in which we operate; demand fluctuations for our products and services; the Company's ability to increase or maintain market share; projected future value, forecast operating and financial results; planned capital expenditures; expected product performance and adoption, including the timing, growth and profitability thereof; potential dividends and dividend growth strategy; future use and development of technology; our financial ability to meet long-term commitments not included in liabilities; the collectability of accounts receivable; the application of critical accounting estimates and judgements; treatment under governmental regulatory and taxation regimes; and projected increasing shareholder value. These forward-looking statements reflect the current views of Pason with respect to future events and operating performance as of the date of this document. They are subject to known and unknown risks, uncertainties, assumptions, and other factors that could cause actual results to be materially different from results that are expressed or implied by such forward-looking statements. Although we believe that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the state of the economy; volatility in industry activity levels and resulting customer expenditures on exploration and production activities; customer demand for existing and new products; the industry shift towards more efficient drilling and completions activity and technology to assist in that efficiency; the impact of competition; the loss of key customers; the loss of key personnel; cybersecurity risks; reliance on proprietary technology and ability to protect the Company's proprietary technologies; changes to government regulations (including those related to safety, environmental, or taxation); the impact of extreme weather events and seasonality on our suppliers and on customer operations; and war, terrorism, pandemics, social or political unrest that disrupts global markets. These risks, uncertainties and assumptions include but are not limited to those discussed in Pason's Annual Information Form for the year ended December 31, 2024 under the heading, "Risk and Uncertainty," in our management's discussion and analysis for the year ended December 31, 2024, and in our other filings with Canadian securities regulators. These documents are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( or through Pason's website ( Forward-looking statements contained in this document are expressly qualified by this cautionary statement. Except to the extent required by applicable law, Pason assumes no obligation to publicly update or revise any forward-looking statements made in this document or otherwise, whether as a result of new information, future events or otherwise. Pason Systems Inc. Pason is a leading global provider of specialized data management systems for drilling rigs. Our solutions, which include data acquisition, wellsite reporting, remote communications, web-based information management, and analytics, enable collaboration between the rig and the office. Through Intelligent Wellhead Systems Inc. ("IWS"), we also provide engineered controls, data acquisition, and software, to automate workflows and processes for oil and gas well completions operations, improving wellsite safety and efficiency. Through Energy Toolbase Software, Inc. ("ETB"), we also provide products and services for the solar power and energy storage industry. ETB's solutions enable project developers to model, control and monitor economics and performance of solar energy and storage projects. Pason's common shares trade on the Toronto Stock Exchange and OTC Markets Group under the symbol PSI and PSYTF, respectively. For more information about Pason Systems Inc., visit the company's website at or contact [email protected]. Additional information on risks and uncertainties and other factors that could affect Pason's operations or financial results are included in Pason's reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( or through Pason's website (
Toronto Star
2 days ago
- Business
- Toronto Star
Andrew Peller Limited Reports Financial Results for First Quarter of Fiscal 2026
GRIMSBY, Ontario, Aug. 06, 2025 (GLOBE NEWSWIRE) — Andrew Peller Limited (TSX: ADW.A / ADW.B) ('APL' or the 'Company') announced today results for the three months ended June 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. FIRST QUARTER 2026 HIGHLIGHTS: Revenue was $99.2 million, compared with revenue of $99.5 million in Q1 2025; Gross margin of 42.4%, compared with 38.4% in the prior year; EBITA of $16.1 million, up from $12.9 million in Q1 2025; Net income improved to $4.6 million ($0.11 per Class A Share), compared to a loss of $0.4 million (loss of $0.01 per Class A Share) in Q1 2025; and Dividends of $0.0615 per Class A Share and $0.535 per Class B Share. 'Our first quarter results were highlighted by a 25% year-over-year increase in EBITA as we continue to navigate a dynamic retail environment,' said Paul Dubkowski, Chief Executive Officer. 'Our strong performance in the quarter was due to ongoing improvements in our margins, profitability, and free cash flow, while lowering debt and further strengthening our balance sheet. Margins continue to expand due to the success of our cost savings programs and are further supported by the Ontario Government's recent policy changes, which reflect its ongoing commitment to a strong and competitive industry. The business is on a strong foundation as we look to generate sustained long-term value through above-category sales performance, EBITA growth, and leveraging our asset base.' Financial Highlights (Financial Statements and the Company's Management Discussion and Analysis for the period can be obtained on the Company's web site at ARTICLE CONTINUES BELOW (1) Please refer to the Company's MD&A concerning 'Non-IFRS Measures' Financial Review Revenue for the three months ended June 30, 2025 remained consistent with the prior year's first quarter results. Several of the Company's well-established trade channels performed well, particularly sales in western Canada due to the success of our BC replacement program, as well as sales to big box stores and at the Company estates. This was offset by expected softness in sales at the Company's stand-alone retail stores due to the evolving Ontario market, as well as sales from the Company's personal wine making business. Gross margin as a percentage of revenue for the three months ended June 30, 2025 increased to 42.4% from 38.4%. The increase was driven by lower costs for glass bottles and inbound freight, resulting from the Company's cost savings program. The improvement also reflects the benefit of the Ontario Government Support Program of $2.1 million, which was recognized in the first quarter of fiscal 2026 but was not in effect during the comparable period in fiscal 2025. As a percentage of revenue, selling and administrative expenses increased to 26.1% from 25.5% for the three months ended June 30, 2025 primarily due to timing of professional services and advertising and promotional expenditures. The increase is partially offset by a reduction in compensation expense resulting from the realization of cost savings associated with the Company's restructuring efforts. Earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes ('EBITA') (see 'Non-IFRS Measures' section of the Company's MD&A) was $16.1 million in the first quarter of fiscal 2026, compared to $12.9 million in the first quarter of prior year, an increase of 25.4%. Interest expense for the three months ended June 30, 2025 has decreased by 14.8% compared to the prior year due to lower average debt levels and lower interest rates compared to prior year. The Company recorded a nominal net unrealized non-cash loss in the first quarter of fiscal 2026 related to mark-to-market adjustments on interest rate swaps and foreign exchange contracts compared to a loss of $0.2 million in the first quarter of fiscal 2025. The Company has elected not to apply hedge accounting and accordingly the change in fair value of these financial instruments is reflected in the Company's consolidated statement of earnings (loss) each reporting period. These instruments are considered to be effective economic hedges and are expected to mitigate the short-term volatility of changing foreign exchange and interest rates. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The Company generated net earnings of $4.6 million ($0.11 per Class A share) for the first quarter of fiscal 2026 compared to a net loss of $0.4 million (loss of $0.01 per Class A share) in the first quarter of the prior year. As part of its strategy to recognize value from non-core assets, during the first quarter of fiscal 2026, the Company initiated proceedings to sell land, vineyard, and building assets in Kaleden, British Columbia with a net book value of $1.0 million which were classified as assets held for sale on June 30, 2025. The sale was completed on July 15, 2025 for proceeds of $1.3 million. Investor Conference Call The Company will hold a conference call to discuss the results on Thursday, August 7, 2025 at 10:00 a.m. ET. Paul Dubkowski, CEO, Renee Cauchi, CFO and Patrick O'Brien, President and CCO, will host the call, with a question and answer period following management's presentation. About Andrew Peller Limited Andrew Peller Limited is one of Canada's leading producers and marketers of quality wines and craft beverage alcohol products. The Company's award-winning premium and ultra-premium Vintners' Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction. Complementing these premium brands are a number of popularly priced varietal offerings, wine-based liqueurs, craft ciders, and craft spirits. The Company owns and operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. The Company also operates Andrew Peller Import Agency and The Small Winemaker's Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, the Company produces and markets premium personal winemaking products through its wholly owned subsidiary, Global Vintners Inc., the recognized leader in personal winemaking products. More information about the Company can be found at The Company utilizes EBITA (defined as earnings before interest, amortization, net unrealized gains and losses on derivative financial instruments, other (income) expenses, and income taxes) to measure its financial performance. EBITA is not a recognized measure under IFRS. Management believes that EBITA is a useful supplemental measure to net earnings (loss), as it provides readers with an indication of earnings available for investment prior to debt service, capital expenditures, and income taxes, as well as provides an indication of recurring earnings compared to prior periods. Readers are cautioned that EBITA should not be construed as an alternative to net earnings determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating, investing, and financing activities as a measure of liquidity and cash flows. The Company also utilizes gross margin (defined as sales less cost of goods sold, excluding amortization). The Company's method of calculating EBITA and gross margin may differ from the methods used by other companies and, accordingly, may not be comparable to measures used by other companies. Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B). ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW FORWARD-LOOKING INFORMATION Certain statements in this news release may contain 'forward-looking statements' within the meaning of applicable securities laws including the 'safe harbour provisions' of the Securities Act (Ontario) with respect to APL and its subsidiaries. Such statements include, but are not limited to, statements about the growth of the business; its launch of new premium wines and craft beverage alcohol products; sales trends in foreign markets; its supply of domestically grown grapes; and current economic conditions. These statements are subject to certain risks, assumptions, and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. The words 'believe', 'plan', 'intend', 'estimate', 'expect', or 'anticipate', and similar expressions, as well as future or conditional verbs such as 'will', 'should', 'would', 'could', and similar verbs often identify forward-looking statements. We have based these forward-looking statements on our current views with respect to future events and financial performance. With respect to forward-looking statements contained in this news release, the Company has made assumptions and applied certain factors regarding, among other things: future grape, glass bottle, and wine and spirit prices; its ability to obtain grapes, imported wine, glass, and other raw materials; fluctuations in foreign currency exchange rates; its ability to market products successfully to its anticipated customers; the trade balance within the domestic Canadian and international wine markets; market trends; reliance on key personnel; protection of its intellectual property rights; the economic environment; the regulatory requirements regarding producing, marketing, advertising, and labelling of its products; the regulation of liquor distribution and retailing in Ontario; the application of federal and provincial environmental laws; and the impact of increasing competition. These forward-looking statements are also subject to the risks and uncertainties discussed in this news release, in the 'Risks and Uncertainties' section and elsewhere in the Company's MD&A and other risks detailed from time to time in the publicly filed disclosure documents of Andrew Peller Limited which are available at Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and assumptions which could cause actual results to differ materially from those conclusions, forecasts, or projections anticipated in these forward-looking statements. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. The Company's forward-looking statements are made only as of the date of this news release, and except as required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information, future events or circumstances or otherwise. For more information, please contact: Craig Armitage and Jennifer Smith ir@ Source: Andrew Peller Limited
Hamilton Spectator
31-07-2025
- Business
- Hamilton Spectator
Kelso Technologies Inc. Financial Results for the Three Months Ended June 30, 2025
WEST KELOWNA, British Columbia and BONHAM, Texas, July 30, 2025 (GLOBE NEWSWIRE) — Kelso Technologies Inc. ('Kelso' or the 'Company') (TSX: KLS) reports that the Company has released the unaudited interim consolidated financial statements and Management Discussion and Analysis for the three months ended June 30, 2025. The unaudited interim consolidated financial statements were prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB'). All amounts herein are expressed in United States dollars (the Company's functional currency) unless otherwise indicated. The Company's unaudited interim consolidated financial statements and MD&A for the three months ended June 30, 2025 were approved by the Board of Directors on July 30, 2025. HIGHLIGHTS: SUMMARY OF FINANCIAL PERFORMANCE (*) FY2024 numbers adjusted for discontinued operations. Refer to Note 16 of the Q2-2025 Financial Statements. Readers are cautioned that Adjusted EBITDA (Loss) should not be construed as an alternative to net income (loss) as determined under IFRS Accounting Standards; nor as an indicator of financial performance as determined by IFRS Accounting Standards; nor a calculation of cash flow from operating activities as determined under IFRS Accounting Standards; nor as a measure of liquidity and cash flow under IFRS Accounting Standards. The Company's method of calculating Adjusted EBITDA may differ from methods used by other issuers and, accordingly, the Company's Adjusted EBITDA may not be comparable to similar measures used by any other issuer. LIQUIDITY AND CAPITAL RESOURCES As at June 30, 2025 the Company had cash on deposit in the amount of $488,273, accounts receivable of $1,303,613 prepaid expenses of $46,765 and inventory of $2,674,352 compared to cash on deposit in the amount of $153,147, accounts receivable of $1,091,304 prepaid expenses of $30,876 and inventory of $3,042,749 as at December 31, 2024. The Company had income tax payable of $16,524 at June 30, 2025 compared to $68,024 at December 31, 2024. The working capital position of the Company as at June 30, 2025 was $2,682,405 compared to $2,125,386 as at December 31, 2024. The Company anticipates that its capital resources and operations will enable it to continue conducting business as planned for the foreseeable future. Total assets of the Company were $6,591,231 as at June 30, 2025 compared to $6,570,345 as at December 31, 2024. Net assets of the Company were $4,713,491 as at June 30, 2025 compared to $4,229,030 as at December 31, 2024. During the year ended December 31, 2024, the Company also obtained a line of credit of $500,000. During the three months ended June 30, 2025, the Company repaid in full the $250,000 previously drawn on its $500,000 line of credit in the first quarter. As a result, the Company now has access to the entire $500,000 available under its line of credit. Amounts drawn on the line of credit bear interest at the Wall Street Journal Prime Rate (WSJ Prime Rate) plus 1.00%. At June 30, 2025, the WSJ Prime Rate was 7.50%. The line of credit is secured by a general security agreement over the Company's assets. Management takes all necessary precautions to minimize risks, however additional risks could affect the future performance of the Company. Business risks are detailed in the Risks and Uncertainties section of this MD&A. OUTLOOK The company is emerging from a challenging financial landscape, influenced by macroeconomic headwinds in the first half of 2025. The improvements to operational efficiency and reduction of overhead costs undertaken by the new management team are beginning to bear fruit with positive earnings. Kelso Technologies Inc. anticipates sales growth to be flat to slightly positive, in the range of 0% to 5%, compared to fiscal year 2024. A primary emphasis for the fiscal year 2025 will be to uphold cost management as the company gears up for the expected rise in new tank car production anticipated to commence in the coming years. This strategic plan will enable the company to take advantage of the growing demand and enhance profitability. Kelso is currently seeking full approval from the Association of American Railroads (AAR) for its Bottom Outlet Valve (BOV) and Angle Valve (AV), both of which are progressing through their required service trial periods. These pending approvals are anticipated to create new revenue opportunities, particularly due to the increased value of comprehensive package offerings for both general purpose and pressure tank cars. The forecast for tank car deliveries has shown a slight improvement compared to recent trends. After averaging just over 8,700 cars annually from 2021 to 2023, actual deliveries for 2024 exceeded 10,000 cars, with FTR predicting a modest rise to 10,325 in 2025. This production level indicates a 15.8% increase over the average from 2021 to 2023, presenting an opportunity for better outcomes. Industry forecasts predict fewer than 10,000 new builds in 2026, rising to 13,000 units in 2027. Kelso's strategic emphasis on securing AAR approvals is in line with this anticipated market growth, positioning the company to take advantage of future demand increases. SUMMARY The Company is confident in its ability to generate new value and expects continued success in its established rail markets. With no long-term debt that accrues interest and optimistic sales outlooks from larger, more diverse markets, Kelso can focus on increasing its equity value through financial performance supported by a wider array of new proprietary products. About Kelso Technologies Kelso is a diverse product engineering company that specializes in the creation, production, sales and distribution of proprietary products used in rail and other transportation. The Company's rail equipment business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of commodities during transport. Kelso products are specifically designed to address the challenging issues of public safety, worker well-being and potential environmental harm while providing effective and efficient operational advantages to customers. Kelso's innovation objectives are to create products that diminish the potentially dangerous effects of human and technology error through the use of the Company's portfolio of proprietary products. For a more complete business and financial profile of the Company, please view the Company's website at and public documents posted under the Company's profile on SEDAR in Canada and on EDGAR in the United States. On behalf of the Board of Directors, Frank Busch, CEO Legal Notice Regarding Forward-Looking Statements: This news release contains 'forward-looking statements' within the meaning of applicable securities legislation. Forward-looking statements indicate expectations or intentions. Forward-looking statements in this news release include that our new rail products will sell once AAR approvals are secured; and that current working capital and anticipated sales activity are expected to protect the Company's ability to conduct ongoing business operations for the foreseeable future. Although Kelso believes the Company's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, they can give no assurance that such expectations will prove to be correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Kelso to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information, including without limitation that risks in the rail industry including tariffs, high interest rates, inflation and supply chain issues may reduce or delay business orders from customers; that the development of new products may proceed slower than expected, cost more or may not result in a saleable product; that tank car producers may produce or retrofit fewer than cars than expected and even if they meet expectations, that customers may not purchase the Company's products for their tank cars; that capital resources may not be adequate enough to fund future operations as intended; that the Company's products may not provide the intended economic or operational advantages to end users; that the Company's new rail products may not receive regulatory certification; that customer orders may not develop or be cancelled; that competitors may enter the market with new product offerings which could capture some of the Company's market share; that a new product idea under research and development may be dropped if ongoing product testing and market research reveal engineering and economic issues that render a new product concept infeasible; and that the Company's new equipment offerings may not capture market share as well as expected. Except as required by law, the Company does not intend to update the forward-looking information and forward-looking statements contained in this news release. For further information, please contact:
