Latest news with #ScottRook
CTV News
18-05-2025
- Climate
- CTV News
No injuries after wind blows off metal debris from ByWard Market building
An object believed to have fallen off a building under construction during a thunderstorm in Ottawa. (Scott Rook/CTV News Ottawa)
CTV News
16-05-2025
- General
- CTV News
5 travel tips for seeing the tulips in Ottawa this weekend
The tulips are in bloom at Commissioners Park in Ottawa ahead of the opening of the Canadian Tulip Festival. (Scott Rook/CTV News Ottawa)
Yahoo
14-05-2025
- Business
- Yahoo
Chemtrade Logistics Income Fund (CGIFF) Q1 2025 Earnings Call Highlights: Strong Revenue and ...
Revenue Growth: Increased by 11.5% year over year. EBITDA Growth: Up 9.3% year over year. SWC Segment Revenue: Grew by 11.9% excluding foreign exchange impacts. SWC Segment EBITDA: Increased by 12.5% year over year, excluding foreign exchange impacts. EC Segment Revenue and EBITDA: Relatively flat compared to the prior year period, excluding foreign exchange impacts. MECU Netbacks: Increased by approximately $165 per unit year over year. Distributable Cash: Generated $62.1 million in Q1, or $0.53 per unit. Growth Capital Investment: $7.2 million invested in Q1, with a full-year plan of $40 million to $60 million. Monthly Distribution Increase: Raised by 5% to $0.0575 per month in January 2025. Unit Purchases: 3.9 million units purchased in Q1 under NCIB. Net Debt Ratio: Approximately 2 times at the end of Q1. Available Liquidity: $780 million at the end of Q1. Adjusted EBITDA Guidance: Raised to the higher end of $430 million to $460 million for 2025. New Acquisition: Purchased Thatcher Group's aluminum sulfate water treatment chemicals businesses for $30 million. Warning! GuruFocus has detected 2 Warning Signs with CGIFF. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chemtrade Logistics Income Fund (CGIFF) reported a strong start to 2025 with a revenue increase of 11.5% year over year and EBITDA up 9.3%. The SWC segment was a significant driver of growth, with revenue and EBITDA increasing by 11.9% and 12.5% respectively, due to higher pricing and volumes. Chemtrade's capital allocation strategy is robust, with $62.1 million of distributable cash generated in Q1, supporting growth investments and unit holder returns. The company raised its monthly distribution by 5% in January 2025, reflecting sustained growth in earnings and cash flow. Chemtrade's Vision 2030 targets an average annual EBITDA growth of 5% to 10%, aiming for $550 million to $600 million by 2030, driven by organic growth and strategic acquisitions. Higher input costs in the SWC segment, particularly for water chemicals and sulfuric acid, posed challenges despite being managed effectively. The EC segment's revenue and EBITDA were relatively flat year over year, with lower chlorine volumes and revenues from Brazil impacting growth. Chemtrade faces uncertain macroeconomic conditions, making it challenging to forecast sales for the remainder of 2025. The company anticipates a collective EBITDA impact of roughly $5 million due to maintenance turnarounds at several sulfuric acid plants. Potential volatility in global trade and tariff structures could impact Chemtrade's operations, although the direct financial impact has been limited so far. Q: Can you characterize the current cycle position for Chemtrade's SWC and Electrochem segments, and is this a mid-cycle earnings period for Chemtrade? A: Scott Rook, President and CEO, explained that the SWC segment is considered mid-cycle, with future growth expected from organic opportunities like ultra-pure sulfuric acid. The EC segment varies by product; caustic soda is mid-cycle with potential upside, chlorine is near the top of the cycle, and hydrochloric acid is tied to fracking activity, making it harder to predict. Q: Regarding the Vision 2030 plan, is the organic growth primarily from the Casa Grande, Arizona project, and is M&A focused on water chemicals? A: Scott Rook clarified that the Vision 2030 plan does not include the Casa Grande project, which is on hold. Organic growth will come from existing projects like Cairo, Ohio, and other ultra-pure acid locations. M&A will focus on small to moderate acquisitions, primarily in water chemicals. Q: Why choose to spend $30 million on a five-times EBITDA acquisition instead of buying back stock at a lower multiple? A: Rohit Bhardwaj, CFO, stated that Chemtrade's capital allocation strategy includes growing the business, returning capital to unit holders, and maintaining balance sheet strength. The acquisition is strategic and synergistic, particularly in the water business, and they plan to continue with share buybacks as well. Q: Can you provide details on the water treatment chemical acquisition, its impact on guidance, and whether the deal has closed? A: Scott Rook confirmed the acquisition has not closed yet and is expected to close later in May. It is not factored into the upper end of the guidance. The acquisition involves buying a customer list without acquiring new facilities, allowing Chemtrade to service customers from existing operations. Q: What is the outlook for future tuck-in acquisitions, especially in the water treatment sector? A: Scott Rook mentioned that Chemtrade has a pipeline of potential projects and is cautiously evaluating them. While not targeting a specific number of acquisitions per year, they prioritize accretive deals and maintain a focus on share buybacks and organic growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error 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
