Latest news with #Silber
Business Insider
25-05-2025
- Business
- Business Insider
Analysts Offer Insights on Industrial Goods Companies: Verisk Analytics (VRSK), CTS Eventim AG & Co. KGaA (GB:0EEE) and GVS S.p.A (Frankfurt: DE:4YQ)
Analysts have been eager to weigh in on the Industrial Goods sector with new ratings on Verisk Analytics (VRSK – Research Report), CTS Eventim AG & Co. KGaA (GB:0EEE – Research Report) and GVS S.p.A (DE:4YQ – Research Report). Confident Investing Starts Here: Verisk Analytics (VRSK) In a report issued on May 8, Jeffrey Silber from BMO Capital reiterated a Hold rating on Verisk Analytics, with a price target of $317.00. The company's shares closed last Friday at $313.77. According to Silber is a 5-star analyst with an average return of 9.2% and a 60.2% success rate. Silber covers the Industrial Goods sector, focusing on stocks such as First Advantage, ManpowerGroup, and Robert Half. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Verisk Analytics with a $317.75 average price target, implying a 1.6% upside from current levels. In a report issued on May 8, Barclays also maintained a Hold rating on the stock with a $310.00 price target. CTS Eventim AG & Co. KGaA (GB:0EEE) In a report issued on May 22, Craig Abbott from Kepler Capital maintained a Buy rating on CTS Eventim AG & Co. KGaA, with a price target of EUR116.00. The company's shares closed last Friday at EUR106.60, close to its 52-week high of EUR107.35. According to Abbott is ranked #1461 out of 9562 analysts. The word on The Street in general, suggests a Strong Buy analyst consensus rating for CTS Eventim AG & Co. KGaA with an EUR115.90 average price target, which is a 10.3% upside from current levels. In a report issued on May 22, Jefferies also initiated coverage with a Buy rating on the stock with a EUR127.00 price target. Kepler Capital analyst Matteo Bonizzoni maintained a Buy rating on GVS S.p.A on May 22 and set a price target of EUR6.50. The company's shares closed last Friday at EUR4.17, close to its 52-week low of EUR3.72.
Yahoo
13-05-2025
- Science
- Yahoo
Sensors designed to detect nuclear detonations can help track space debris falling to Earth
When you buy through links on our articles, Future and its syndication partners may earn a commission. Scientists are studying how sensors designed to detect nuclear tests could help track space junk and meteorites crashing down in the world's most remote regions. Across the world, dozens of supersensitive detectors have been installed since the beginning of the Cold War era to detect infrasound waves created by nuclear tests thousands of miles away. Infrasound refers to sound waves far below the range of human hearing, similar to how the infrared range of light is far below the threshold of human eyesight. These detectors, part of the Comprehensive Nuclear-Test-Ban Treaty Organization (CTBTO) detection network, also pick up the rumble of a thunder or the ultrasonic booms generated by large pieces of space rocks or space debris disintegrating in Earth's atmosphere. Researchers are now studying how these sensors could help reconstruct trajectories of re-entering space debris, especially those that crash down in remote areas where the more commonly used optical cameras and telescopes are not available. According to one leading scientist in this field of study, these sensors can offer unique advantages over other methods of tracking objects falling from space. "The advantage of using the regional and global infrasound sensor network for studying trajectories of bolides and space debris is that it provides truly worldwide coverage operating continuously day and night and in all weather conditions," Elizabeth Silber, a scientist at Sandia National Laboratories in the U.S., told "Unlike optical observations, which require clear skies and darkness, or radar systems, which have limited range and are geographically constrained, infrasound waves can propagate thousands of kilometers with minimal loss of signal," said Silber, who is the lead author of a new study exploring the advantages and limitations of this detection method. These infrasound sensors can help determine falling space objects' trajectory using a method known as triangulation that compares signals received by two or more sensors to establish the location of the source. The researchers wanted to know how accurate such calculations can be depending on the angle at which the object enters the atmosphere. They found that while trajectories of space rocks and junk that fall into the atmosphere at steep angles of 60 degrees or more are easy to reconstruct from infrasound measurements, the same doesn't apply to objects flying through the atmosphere at shallower angles. "Steep-angle events deposit their energy along a relatively short, vertical segment of the atmosphere, making them behave almost like a point-source explosion," Silber said. "This compact geometry means the sound waves emitted travel along nearly identical paths, resulting in consistent arrival directions at distant infrasound sensors." On the other hand, pieces of space junk and meteorites that enter at shallow angles generate confusing data when measured by the infrasound sensors as they produce audible signals along a path of hundreds, even thousands of kilometers. "At distant observing stations, signals from different segments of that long trajectory can dominate, causing significant variability and uncertainty in the measured arrival directions," Silber explained. Images from cameras and telescopes, on the contrary, tend to do a good job reconstructing the trajectories of objects entering at shallow angles that streak across the sky like stunning shooting stars. Such instruments, however, are not available to monitor the skies above the remote regions of the world's oceans where most space junk and meteorites crash to Earth or burn up in the atmosphere. That's why scientists are trying to figure out whether combinations of different types of measurements could provide more accurate data. The limitations of infrasound measurements, for example, restrict the usability of such data in most cases of satellite re-entries, which are usually guided into the atmosphere gradually at shallow angles, Silber admitted. "Objects re-entering from low Earth orbit (LEO) generally do so at extremely shallow angles," Silber said. "This is because their orbits decay gradually due to atmospheric drag, causing them to spiral inward over time rather than plunging steeply." RELATED STORIES: — How much do SpaceX's reentering Starlink satellites pollute Earth's atmosphere? — Watch fiery SpaceX Starship Flight 8 debris rain down over The Bahamas (video) — SpaceX Falcon 9 rocket debris creates dramatic fireball over Europe, crashes in Poland (video) Most meteorites, too, enter at angles smaller than 60 degrees, with 45 degrees being the most common angle at which space rocks hit the atmosphere, Silber admitted. The researchers are trying to understand to what extent the infrasound sensors can help understand the trajectories of such objects and how the results could be improved. Although the sensors cannot provide advanced warnings about incoming pieces of space rock or junk, scientists are keen to use the data to learn more about these potentially dangerous events. "Although infrasound detection cannot deliver real-time warnings, it does play an essential role in characterizing events, assessing potential impacts and guiding response and recovery efforts," said Silber. The study was presented at the General Assembly of the European Geosciences Union in April.
Business Wire
22-04-2025
- Business
- Business Wire
Herc Holdings Reports First Quarter 2025 Results and Affirms 2025 Full Year Guidance
BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended March 31, 2025. 'As expected, the 2025 operating landscape continues to be a tale of two disparate economic trends,' said Larry Silber, president and chief executive officer. 'Our national account business is growing, fueled by federal and private funding for large construction projects like data centers, manufacturing onshoring and LNG facilities. At the same time, while facility maintenance, municipal, and infrastructure projects are supporting the local markets, other more interest-rate sensitive projects continue to be on hold, restricting overall local account growth. 'Against this uneven backdrop, Herc's diversified business model helps drive resiliency,' said Silber. 'With growth in mega project activity and incremental revenue benefits from last year's acquisitions, we delivered financial results that were in line with our expectations for the seasonally low first quarter. And we remain on pace to outperform the overall equipment rental market again this year as Team Herc continues to identify opportunities to deliver value for our customers, while managing our fleet and capital strategically and with discipline. 'As it relates to the H&E acquisition, with the closing date targeted for mid-year, our operators and salesforce remain focused on running the day-to-day business, and our integration team is actively preparing for the migration of Herc systems and processes. We are excited to bring together two strong cultures that focus on growth and share priorities for customer service and safety.' 2025 First Quarter Financial Results Total revenues increased 7% to $861 million compared to $804 million in the prior-year period. The year-over-year increase of $57 million related to an increase in equipment rental revenue of $20 million, reflecting uneven demand across end markets and incremental revenue from prior year greenfields and acquisitions. Sales of rental equipment increased by $36 million during the period. Dollar utilization decreased to 37.6% in the first quarter compared to 39.7% in the prior-year period. Direct operating expenses were $327 million, or 44.2% of equipment rental revenue, compared to $307 million, or 42.7% in the prior-year period. The increase as a percent of rental revenue related to lower fixed cost absorption due to the normal seasonality associated with the first quarter, particularly facilities costs due to greenfield and acquisition locations and higher insurance costs year-over-year. Depreciation of rental equipment increased 8% to $172 million due to higher year-over-year average fleet size. Non-rental depreciation and amortization increased 14% to $33 million primarily due to an increase in non-rental asset depreciation resulting from the growth of the business. Selling, general and administrative expenses were $118 million compared to $112 million in the prior-year period. As a percent of rental revenue, selling, general and administrative expenses were nearly flat year-over-year. Transaction expenses were $74 million compared to $3 million in the prior-year period. The increase related to costs incurred for the H&E acquisition, primarily a $64 million termination fee paid to United Rentals on behalf of H&E. Interest expense remained relatively flat at $62 million compared with $61 million in the prior-year period. Net loss was $18 million compared to net income of $65 million in the prior-year period. Adjusted net income decreased 45% to $37 million, or $1.30 per diluted share, compared to $67 million, or $2.36 per diluted share, in the prior-year period. The income tax provision in the first quarter was primarily driven by the non-deductible transaction costs related to the H&E acquisition. Adjusted EBITDA remained flat at $339 million and adjusted EBITDA margin was 39.4% compared to 42.2% in the prior-year period. Rental Fleet Net rental equipment capital expenditures were as follows (in millions): As of March 31, 2025, the Company's total fleet was approximately $6.9 billion at OEC. Average fleet at OEC in the first quarter increased 9% compared to the prior-year period. Average fleet age was 47 months as of March 31, 2025 and 2024. Disciplined Capital Management The Company opened 3 new greenfield locations during the three months ended March 31, 2025. Net debt was $4.0 billion as of March 31, 2025, with net leverage of 2.5x unchanged from the same prior-year period. Cash and cash equivalents and unused commitments under the ABL Credit Facility contributed to approximately $1.9 billion of liquidity as of March 31, 2025. The Company declared its quarterly dividend of $0.70, an increase of 5%, paid to shareholders of record as of February 18, 2025 on March 4, 2025. 2025 Outlook—Excluding Cinelease The Company is affirming its full year 2025 equipment rental revenue growth, adjusted EBITDA, and gross and net rental capital expenditures guidance ranges, excluding Cinelease studio entertainment and lighting and grip equipment rental business. The sale process for the Cinelease studio entertainment business is ongoing and a transaction is expected to be completed in 2025. As a leader in an industry where scale matters, the Company expects to continue to gain share by capturing an outsized position of the forecasted higher construction spending in 2025 by investing in its fleet, optimizing its existing fleet, capitalizing on strategic acquisitions and greenfield opportunities, and cross-selling a diversified product portfolio. Earnings Call and Webcast Information Herc Holdings' first quarter 2025 earnings webcast will be held today at 8:30 a.m. U.S. Eastern Time. Interested U.S. parties may call +1-800-715-9871 and international participants should call the country specific dial in numbers listed at using the access code: 9128891. Please dial in at least 10 minutes before the call start time to ensure that you are connected to the call and to register your name and company. Those who wish to listen to the live conference call and view the accompanying presentation slides should visit the Events and Presentations tab of the Investor Relations section of the Company's website at The press release and presentation slides for the call will be posted to this section of the website prior to the call. A replay of the conference call will be available via webcast on the Company website at where it will be archived for 12 months after the call. About Herc Holdings Inc. Founded in 1965, Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with 453 locations across North America, and 2024 total revenues were approximately $3.6 billion. We offer products and services aimed at helping customers work more efficiently, effectively, and safely. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. Our ProSolutions® offering includes industry-specific, solutions-based services in tandem with power generation, climate control, remediation and restoration, pumps, and trench shorting equipment as well as our ProContractor professional grade tools. We employ approximately 7,600 employees, who equip our customers and communities to build a brighter future. Learn more at and follow us on Instagram, Facebook and LinkedIn. Certain Additional Information In this release we refer to the following operating measures: Dollar utilization: calculated by dividing rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on the guidelines of the American Rental Association (ARA). OEC: original equipment cost based on the guidelines of the ARA, which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions; and (10) our significant indebtedness; and (11) our ability to complete the acquisition of H&E Equipment Services, Inc. and our ability to realize the anticipated benefits of the proposed transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Information Regarding Non-GAAP Financial Measures In addition to results calculated according to accounting principles generally accepted in the United States ('GAAP'), the Company has provided certain information in this release that is not calculated according to GAAP ('non-GAAP'), such as EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per diluted common share, free cash flow and certain results excluding the Cinelease studio entertainment business. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company's performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management's use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the supplemental schedules that accompany this release. (See Accompanying Tables) HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) March 31, 2025 December 31, 2024 ASSETS (unaudited) Cash and cash equivalents $ 48 $ 83 Receivables, net of allowances 554 589 Prepaid expenses 69 47 Other current assets 20 40 Current assets held for sale 18 17 Total current assets 709 776 Rental equipment, net 4,085 4,225 Property and equipment, net 567 554 Right-of-use lease assets 869 852 Intangible assets, net 564 572 Goodwill 682 670 Other long-term assets 8 8 Long-term assets held for sale 221 220 Total assets $ 7,705 $ 7,877 LIABILITIES AND EQUITY Current maturities of long-term debt and financing obligations $ 22 $ 21 Current maturities of operating lease liabilities 39 39 Accounts payable 161 248 Accrued liabilities 237 239 Current liabilities held for sale 15 15 Total current liabilities 474 562 Long-term debt, net 4,026 4,069 Financing obligations, net 99 101 Operating lease liabilities 862 842 Deferred tax liabilities 771 800 Other long-term liabilities 57 47 Long-term liabilities held for sale 58 60 Total liabilities 6,347 6,481 Total equity 1,358 1,396 Total liabilities and equity $ 7,705 $ 7,877 A - 2 Expand HERC HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In millions) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ (18 ) $ 65 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation of rental equipment 172 160 Depreciation of property and equipment 22 19 Amortization of intangible assets 11 10 Amortization of deferred debt and financing obligations costs 1 1 Stock-based compensation charges 6 5 Provision for receivables allowances 14 12 Deferred taxes (29 ) 9 Gain on sale of rental equipment (29 ) (23 ) Other — 3 Changes in assets and liabilities: Receivables 20 (7 ) Other assets (20 ) (6 ) Accounts payable (18 ) (2 ) Accrued liabilities and other long-term liabilities 39 (6 ) Net cash provided by operating activities 171 240 Cash flows from investing activities: Rental equipment expenditures (187 ) (181 ) Proceeds from disposal of rental equipment 94 61 Non-rental capital expenditures (33 ) (30 ) Proceeds from disposal of property and equipment 4 2 Acquisitions, net of cash acquired (11 ) (148 ) Net cash used in investing activities (133 ) (296 ) Cash flows from financing activities: Proceeds from revolving lines of credit and securitization 520 385 Repayments on revolving lines of credit and securitization (561 ) (302 ) Principal payments under finance lease and financing obligations (5 ) (5 ) Dividends paid (21 ) (20 ) Other financing activities, net (6 ) (10 ) Net cash provided by (used in) financing activities (73 ) 48 Effect of foreign exchange rate changes on cash and cash equivalents — — Net change in cash and cash equivalents during the period (35 ) (8 ) Cash and cash equivalents at beginning of period 83 71 Cash and cash equivalents at end of period $ 48 $ 63 A - 3 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES EBITDA AND ADJUSTED EBITDA RECONCILIATIONS Unaudited (In millions) EBITDA and adjusted EBITDA - EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction related costs, restructuring and restructuring related charges, spin-off costs, non-cash stock-based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on the disposal of a business and certain other items. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, neither measure purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments. Adjusted EBITDA Margin - Adjusted EBITDA Margin, calculated by dividing Adjusted EBITDA by Total Revenues, is a commonly used profitability ratio. Expand Three Months Ended March 31, 2025 2024 Net income (loss) $ (18 ) $ 65 Income tax provision 10 16 Interest expense, net 62 61 Depreciation of rental equipment 172 160 Non-rental depreciation and amortization 33 29 EBITDA 259 331 Non-cash stock-based compensation charges 6 5 Transaction related costs 74 3 Adjusted EBITDA $ 339 $ 339 Total revenues 861 804 Adjusted EBITDA $ 339 $ 339 Adjusted EBITDA margin 39.4 % 42.2 % A - 4 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES EXCLUDING STUDIO ENTERTAINMENT RECONCILIATIONS Unaudited (in millions) EBITDA, Adjusted EBITDA, REBITDA, Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through Excluding Studio Entertainment - Each metric below has been adjusted to exclude the studio entertainment business due to the intent to sell that business and provides the operating performance of the remaining business. Expand Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Herc Studio Ex-Studio Herc Studio Ex-Studio Equipment rental revenue $ 739 $ 15 $ 724 $ 719 $ 29 $ 690 Total revenues 861 17 844 804 30 774 Total expenses 869 17 852 723 21 702 Income (loss) before income taxes (8 ) — (8 ) 81 9 72 Income tax (provision) benefit (10 ) — (10 ) (16 ) (2 ) (14 ) Net income (loss) (18 ) — (18 ) 65 7 58 Income tax provision 10 — 10 16 2 14 Interest expense, net 62 — 62 61 — 61 Depreciation of rental equipment 172 — 172 160 — 160 Non-rental depreciation and amortization 33 — 33 29 — 29 EBITDA 259 — 259 331 9 322 Non-cash stock-based compensation charges 6 — 6 5 — 5 Transaction related costs 74 1 73 3 1 2 Adjusted EBITDA 339 1 338 339 10 329 Less: Gain (loss) on sales of rental equipment 29 1 28 23 — 23 Less: Gain (loss) on sales of new equipment, parts and supplies 3 — 3 3 1 2 Rental Adjusted EBITDA (REBITDA) $ 307 $ — $ 307 $ 313 $ 9 $ 304 Total revenues $ 861 $ 17 $ 844 $ 804 $ 30 $ 774 Adjusted EBITDA $ 339 $ 1 $ 338 $ 339 $ 10 $ 329 Adjusted EBITDA margin 39.4 % 5.9 % 40.0 % 42.2 % 33.3 % 42.5 % Total revenues $ 861 $ 17 $ 844 $ 804 $ 30 $ 774 Less: Sales of rental equipment 105 1 104 69 — 69 Less: Sales of new equipment, parts and supplies 11 1 10 9 1 8 Equipment rental, service and other revenues $ 745 $ 15 $ 730 $ 726 $ 29 $ 697 Equipment rental, service and other revenues $ 745 $ 15 $ 730 $ 726 $ 29 $ 697 Adjusted REBITDA $ 307 $ — $ 307 $ 313 $ 9 $ 304 Adjusted REBITDA margin 41.2 % — % 42.1 % 43.1 % 31.0 % 43.6 % A - 5 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER DILUTED SHARE Unaudited (In millions) Adjusted Net Income and Adjusted Earnings Per Diluted Share - Adjusted Net Income represents the sum of net income (loss), restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, transaction related costs, gain (loss) on the disposal of a business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings Per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. Expand Three Months Ended March 31, 2025 2024 Net income (loss) $ (18 ) $ 65 Transaction related costs 74 3 Tax impact of adjustments (1) (19 ) (1 ) Adjusted net income $ 37 $ 67 Diluted shares outstanding 28.5 28.4 Adjusted earnings per diluted share $ 1.30 $ 2.36 (1) The tax rate applied for adjustments is 25.5% and reflects the statutory rates in the applicable entities. A - 6 Expand HERC HOLDINGS INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES FREE CASH FLOW Unaudited (In millions) Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company's ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures. Expand
Forbes
20-03-2025
- Business
- Forbes
Edible Arrangements Can Now Get You High—On Edibles
Edible Brands, the parent company of the fruit basket outfit Edible Arrangements, is taking a bite of the cannabis industry. The Georgia-based company, which had $500 million in annual sales last year, launched this week, an e-commerce site that sells hemp-derived THC products made by some of the biggest brands in the marijuana industry, including Wana, Kiva and Cann. Edible Brands is not selling marijuana, which is federally illegal, but is focusing on THC products derived from hemp, marijuana's less potent and federally legal cannabis cousin. But these products are still strong enough to get customers stoned. 'This is a really natural fit for us,' Edible Brands CEO Somia Farid Silber tells Forbes. 'We're already called 'edible', right? We know that sometimes there's even a little bit of an expectation from a customer for [cannabis] products.' which the company acquired last year, will launch in Texas first but will soon expand to Georgia, Florida, North and South Carolina, and expects to go nationwide later this year. With its network of more than 700 Edible Arrangements stores, the company says customers can order online and get their cannabis products delivered to their door faster than an old school pot dealer. 'We have an incredible delivery network with our franchisees for fulfillment—we can reach 70% of U.S. households within an hour,' says Silber. Because marijuana is still illegal at the federal level but hemp has enough THC to get someone high, some of the weed industry's biggest players have started selling hemp products outside of dispensaries. The hemp and marijuana industry used to be at war, but over the last year some of the biggest cannabis companies, from Curaleaf and Trulieve to Kiva and Wana, have embraced the federal legality of hemp-derived cannabinoids, thanks to the 2018 Farm Bill, and started selling their own products. The hemp products industry is even bigger than the marijuana sector, which has been throttled by a punitive federal tax code for drug traffickers and overregulation on the state level. In 2023, hemp products sales hit $28 billion while marijuana sales topped $26 billion, according to Whitney Economics. Joe Hodas, the CEO of Wana, one of the country's best-selling edibles manufacturers, says he sees hemp as a way to expand to states that do not have recreational marijuana laws. Wana has also started selling its hemp-derived THC beverage line in Total Wine stores. This is not the first time Edible Brands dipped into the cannabis space. In 2019, Edible Arrangements launched its own CBD edibles line, which are not psychoactive. But this pivot to THC is even more bold. And it's a signal that cannabis products, especially edibles and beverages, have gone mainstream. In 1999, Pakistani immigrant Tariq Farid launched the first Edible Arrangements store in Connecticut. Now based in Georgia, the company has become the go-to fruit basket gifting company by selling chocolate covered strawberries, cookies and bouquets of cut fruit for birthdays, anniversaries, funerals and other life milestones. In addition to its franchised stores across the U.S., Edible Brands also owns and Roti, a fast-casual Mediterranean restaurant chain. Edible Brands is going headlong into the political battle over THC hemp products currently underway in Texas. Lt. Governor Dan Patrick is leading a push to shutter the industry, which is composed of more than 8,000 hemp shops across the state. On Wednesday, the Texas Senate passed a bill that would ban all products containing THC, including gummies, vapes, flower, and beverages. The bill has not become law as the House still needs to vote on its proposal, which would regulate, not eliminate, the state's hemp market. None of this is stopping Edible Brands. The company is also building a flagship Edibles store in downtown Atlanta. The company will own the first few hemp products stores under this concept but will eventually open the model up to franchisees. 'We're treating it like a bodega style [store],' says Thomas Winstanley, the executive vice president of 'We want to make it feel like it's a regular consumer experience that's elevated, that's premium, and doesn't feel like you're walking into a smoke shop, or a gas station.' When asked if Edible Brands is betting its future on cannabis, Silber, the founder's daughter, is clear. 'For us, this is just one of the pillars of our growth strategy,' she says. 'It's definitely not a make or break type of thing. We're going to continue to diversify and grow this brand, just as we are with [our] other brands.'
