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Yahoo
4 hours ago
- Business
- Yahoo
Genesco Inc. Reports Fiscal 2026 First Quarter Results
--Top and bottom-line results exceed expectations----Comparable sales increased 5%, led by Journeys with an 8% increase----Sales growth and meaningful expense leverage drives bottom line improvement compared to Q1 last year----Company reiterates full year EPS outlook including impact of current tariffs-- NASHVILLE, Tenn., June 04, 2025--(BUSINESS WIRE)--Genesco Inc. (NYSE: GCO) today reported first quarter results for the three months ended May 3, 2025. First Quarter Fiscal 2026 Financial Summary Net sales of $474 million increased 4% compared to Q1FY25 Comparable sales increased 5%, with stores up 5% and e-commerce up 7% E-commerce sales represented 23% of retail sales Selling and administrative expenses leveraged 170 basis points compared to last year GAAP EPS was ($2.02) and Non-GAAP EPS was ($2.05)1 versus GAAP EPS of ($2.22) and Non-GAAP EPS of ($2.10) last year Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, "Following the significant momentum in last year's back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we've done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income." Vaughn continued, "While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact. In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment." __________________________ 1Excludes charges for severance and asset impairments, net of tax effect in the first quarter of Fiscal 2026 ("Excluded Items"). A reconciliation of loss and loss per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the adjusted loss and loss per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of loss and loss per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Sandra Harris, Genesco's Senior Vice President Finance and Chief Financial Officer, added, "Our first quarter performance exceeded our expectations, and our adjusted EPS would have been $0.05 better had we not opportunistically bought back shares during the quarter. Today we are reiterating our full-year adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. Although there is ongoing external market uncertainty, we know our businesses are strong, and we are making investments in product, stores, and marketing across all brands to drive growth." First Quarter Review Net sales for the first quarter of Fiscal 2026 increased 4% to $474 million compared to $458 million in the first quarter of Fiscal 2025. The net sales increase reflects a 5% increase in comparable sales, including a 7% increase in e-commerce comparable sales and a 5% increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings. Comparable Sales Comparable Same Store and E-commerce Sales: 1QFY26 1QFY25 Journeys Group 8% (5)% Schuh Group 1% (7)% Johnston & Murphy Group (2)% (3)% Total Genesco Comparable Sales 5% (5)% Same Store Sales 5% (7)% Comparable E-commerce Sales 7% 3% The overall sales increase of 4% for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025 was driven by an increase of 5% at Journeys, an increase of 4% at Schuh and a 7% increase at Genesco Brands, partially offset by a decrease of 3% at Johnston & Murphy. On a constant currency basis, Schuh sales were up 1% for the first quarter this year. Gross margin for the first quarter this year was 46.7% compared to 47.3% last year. Adjusted gross margin for the first quarter this year of 46.7% decreased 90 basis points as a percentage of sales compared to 47.6% last year. The decrease as a percentage of sales compared to Fiscal 2025 is due primarily to changes in brand mix at Journeys and Schuh, promotional activity at Schuh and lower margins at Genesco Brands related to liquidation of product for sunsetting licenses. Selling and administrative expenses for the first quarter this year of 52.5% decreased 170 basis points as a percentage of sales compared with last year primarily reflecting decreased occupancy and performance-based compensation expenses as well as other cost savings initiatives. Genesco's GAAP operating loss for the first quarter was $28.1 million, or 5.9% of sales this year, compared with a loss of $32.1 million, or 7.0% of sales in the first quarter last year. Adjusted for the Excluded Items in the first quarters of both Fiscal 2026 and 2025, the operating loss for the first quarter was $27.9 million this year compared to a loss of $30.0 million last year. Adjusted operating margin was a loss of 5.9% of sales in the first quarter of Fiscal 2026 compared to a loss of 6.5% in the first quarter last year. The effective tax rate for the quarter was 28.5% in Fiscal 2026 compared to 26.7% in the first quarter last year. The adjusted tax rate, reflecting Excluded Items, was 26.7% in Fiscal 2026 compared to 26.0% in the first quarter last year. GAAP loss from continuing operations was $21.2 million in the first quarter of Fiscal 2026 compared to a loss of $24.3 million in the first quarter last year. Adjusted for the Excluded Items, the first quarter loss from continuing operations was $21.5 million, or $2.05 per share, in Fiscal 2026, compared to a loss of $22.9 million, or $2.10 per share, in the first quarter last year. Cash, Borrowings and Inventory Cash as of May 3, 2025, was $21.7 million, compared with $19.2 million as of May 4, 2024. Total debt at the end of the first quarter of Fiscal 2026 was $121.0 million compared with $59.4 million at the end of last year's first quarter, primarily reflecting increased inventories which were up 15% on a year-over-year basis to meet increased demand at Journeys. Capital Expenditures and Store Activity For the first quarter this year, capital expenditures were $19 million, related primarily to retail stores and other initiatives. Depreciation and amortization was $13 million. During the quarter, the Company opened four stores and closed 26 stores. The Company ended the quarter with 1,256 stores compared with 1,321 stores at the end of the first quarter last year, or a decrease of 5%. Square footage was down 3% on a year-over-year basis. Share Repurchases The Company repurchased 604,531 shares for $12.6 million, or $20.79 per share, during the first quarter of Fiscal 2026. The Company currently has $29.8 million remaining on its expanded share repurchase authorization announced in June 2023. Fiscal 2026 Outlook For Fiscal 2026, the Company: Continues to expect adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 2 , including the impact of tariffs currently in place Expects total sales to be up 1% to 2% compared to Fiscal 2025 versus prior expectation of flat to up 1% due to the impact of favorable foreign exchange, with comparable sales range narrowed to up 2% to 3% versus prior range of up 2% to 4% Guidance assumes no further share repurchases and a tax rate of 29% __________________________ 2A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to GAAP is included in Schedule B to this press release. Conference Call, Management Commentary and Investor Presentation The Company has posted detailed financial commentary and a supplemental financial presentation of first quarter results on its website, in the investor relations section. The Company's live conference call on June 4, 2025, at 7:30 a.m. (Central time), may be accessed through the Company's website, To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software. Safe Harbor Statement This release contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, cost reductions, and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as "intend," "expect," "feel," "should," "believe," "anticipate," "optimistic," "confident" and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; our ability to pass on price increases to our customers; restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company's ability to adequately staff and operate stores. Differences from expectations could also result from store closures and effects on the business as a result of the level and timing of promotional activity necessary to maintain inventories at appropriate levels; the Company's ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; civil disturbances; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company's ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company's ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company's business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company's ability to realize any anticipated tax benefits in both the amount and timeframe anticipated; and the cost and outcome of litigation, investigations, environmental matters and other disputes involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company's SEC filings, copies of which may be obtained from the SEC website, or by contacting the investor relations department of Genesco via the Company's website, Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements. About Genesco Inc. Genesco Inc. (NYSE: GCO) is a footwear focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities offering customers the footwear they desire in engaging shopping environments, including more than 1,250 retail stores and branded e-commerce websites. Its Journeys, Little Burgundy and Schuh brands serve teens, kids and young adults with on-trend fashion footwear that inspires youth culture in the U.S., Canada and the U.K. Johnston & Murphy serves the successful, affluent man and woman with premium footwear, apparel and accessories in the U.S. and Canada, and Genesco Brands Group sells branded lifestyle footwear to leading retailers under licensed brands including Levi's, Dockers, Starter and PONY. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit GENESCO INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) Quarter 1 Quarter 1 May 3, % of May 4, % of 2025 Net Sales 2024 Net Sales Net sales $ 473,973 100.0 % $ 457,597 100.0 % Cost of sales 252,792 53.3 % 241,316 52.7 % Gross margin(1) 221,181 46.7 % 216,281 47.3 % Selling and administrative expenses 249,035 52.5 % 247,831 54.2 % Asset impairments and other, net(2) 291 0.1 % 578 0.1 % Operating loss (28,145 ) -5.9 % (32,128 ) -7.0 % Other components of net periodic benefit cost 180 0.0 % 109 0.0 % Interest expense, net 1,339 0.3 % 890 0.2 % Loss from continuing operations before income taxes (29,664 ) -6.3 % (33,127 ) -7.2 % Income tax benefit (8,452 ) -1.8 % (8,839 ) -1.9 % Loss from continuing operations (21,212 ) -4.5 % (24,288 ) -5.3 % Loss from discontinued operations, net of tax (15 ) 0.0 % (59 ) 0.0 % Net Loss $ (21,227 ) -4.5 % $ (24,347 ) -5.3 % Basic loss per share: Before discontinued operations $ (2.02 ) $ (2.22 ) Net loss $ (2.02 ) $ (2.23 ) Diluted loss per share: Before discontinued operations $ (2.02 ) $ (2.22 ) Net loss $ (2.02 ) $ (2.23 ) Weighted-average shares outstanding: Basic 10,495 10,930 Diluted 10,495 10,930 (1) Includes a $1.6 million gross margin charge related to a distribution model transition in Genesco Brands Group in the first quarter of Fiscal 2025. (2) Includes a $0.3 million charge in the first quarter of Fiscal 2026 for severance. Includes a $0.6 million charge in the first quarter of Fiscal 2025 which includes $0.3 million for severance and $0.3 million for asset impairments. GENESCO INC. Sales/Earnings Summary by Segment (in thousands) (Unaudited) Quarter 1 Quarter 1 May 3, % of May 4, % of 2025 Net Sales 2024 Net Sales Sales: Journeys Group $ 272,634 57.5 % $ 259,445 56.7 % Schuh Group 95,915 20.2 % 92,349 20.2 % Johnston & Murphy Group 76,839 16.2 % 79,207 17.3 % Genesco Brands Group 28,585 6.0 % 26,596 5.8 % Net Sales $ 473,973 100.0 % $ 457,597 100.0 % Operating income (loss): Journeys Group $ (15,283 ) -5.6 % $ (18,822 ) -7.3 % Schuh Group (6,131 ) -6.4 % (5,896 ) -6.4 % Johnston & Murphy Group 500 0.7 % 2,355 3.0 % Genesco Brands Group(1) 698 2.4 % (986 ) -3.7 % Corporate and Other(2) (7,929 ) -1.7 % (8,779 ) -1.9 % Operating loss (28,145 ) -5.9 % (32,128 ) -7.0 % Other components of net periodic benefit cost 180 0.0 % 109 0.0 % Interest expense, net 1,339 0.3 % 890 0.2 % Loss from continuing operations before income taxes (29,664 ) -6.3 % (33,127 ) -7.2 % Income tax benefit (8,452 ) -1.8 % (8,839 ) -1.9 % Loss from continuing operations (21,212 ) -4.5 % (24,288 ) -5.3 % Loss from discontinued operations, net of tax (15 ) 0.0 % (59 ) 0.0 % Net Loss $ (21,227 ) -4.5 % $ (24,347 ) -5.3 % (1) Includes a $1.6 million gross margin charge related to a distribution model transition in Genesco Brands Group in the first quarter of Fiscal 2025. (2) Includes a $0.3 million charge in the first quarter of Fiscal 2026 for severance. Includes a $0.6 million charge in the first quarter of Fiscal 2025 which includes $0.3 million for severance and $0.3 million for asset impairments. GENESCO INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) May 3, 2025 May 4, 2024 Assets Cash $ 21,748 $ 19,247 Accounts receivable 52,815 50,119 Inventories 450,829 392,671 Other current assets(1) 107,922 46,003 Total current assets 633,314 508,040 Property and equipment 236,909 233,601 Operating lease right of use assets 472,091 420,133 Goodwill and other intangibles 36,857 36,331 Non-current prepaid income taxes - 57,441 Other non-current assets 25,420 51,871 Total Assets $ 1,404,591 $ 1,307,417 Liabilities and Equity Accounts payable $ 122,166 $ 108,847 Current portion long-term debt 7,299 - Current portion operating lease liabilities 126,954 125,450 Other current liabilities 74,504 73,888 Total current liabilities 330,923 308,185 Long-term debt 113,733 59,444 Long-term operating lease liabilities 389,384 345,670 Other long-term liabilities 48,319 45,665 Equity 522,232 548,453 Total Liabilities and Equity $ 1,404,591 $ 1,307,417 (1) Includes prepaid income taxes of $74.8 million at May 3, 2025 and $17.3 million at May 4, 2024. GENESCO INC. Store Count Activity Balance Balance Balance 02/03/24 Open Close 02/01/25 Open Close 05/03/25 Journeys Group 1,063 7 64 1,006 2 19 989 Schuh Group 122 4 2 124 0 3 121 Johnston & Murphy Group 156 1 9 148 2 4 146 Total Retail Stores 1,341 12 75 1,278 4 26 1,256 GENESCO INC. Comparable Sales Quarter 1 May 3, May 4, 2025 2024 Journeys Group 8% -5% Schuh Group 1% -7% Johnston & Murphy Group -2% -3% Total Comparable Sales 5% -5% Same Store Sales 5% -7% Comparable E-commerce Sales 7% 3% Schedule B Genesco Inc. Adjustments to Reported Loss from Continuing Operations Three Months Ended May 3, 2025 and May 4, 2024 The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Quarter 1 Quarter 1 May 3, 2025 May 4, 2024 Net of Per Share Net of Per Share In Thousands (except per share amounts) Pretax Tax Amounts Pretax Tax Amounts Loss from continuing operations, as reported $ (21,212 ) ($2.02 ) $ (24,288 ) ($2.22 ) Gross margin adjustment: Charges related to distribution model transition $ - - 0.00 $ 1,581 1,151 0.10 Asset impairments and other adjustments: Asset impairment charges $ 34 24 0.00 $ 244 178 0.02 Severance 257 185 0.02 334 243 0.02 Total asset impairments and other adjustments $ 291 209 0.02 $ 578 421 0.04 Income tax expense adjustments: Tax impact share based awards 139 0.01 130 0.01 Other tax items (666 ) (0.06 ) (345 ) (0.03 ) Total income tax expense adjustments (527 ) (0.05 ) (215 ) (0.02 ) Adjusted loss from continuing operations (1) and (2) $ (21,530 ) ($2.05 ) $ (22,931 ) ($2.10 ) (1) The adjusted tax rate for the first quarter of Fiscal 2026 and 2025 is 26.7% and 26.0%, respectively. (2) EPS reflects 10.5 million and 10.9 million share count for the first quarter of Fiscal 2026 and 2025, respectively, which excludes common stock equivalents in both periods due to the loss from continuing operations. Genesco Inc. Adjustments to Reported Operating Income (Loss) and Gross Margin Three Months Ended May 3, 2025 and May 4, 2024 Quarter 1 - May 3, 2025 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (15,283 ) $ - $ (15,283 ) Schuh Group (6,131 ) - (6,131 ) Johnston & Murphy Group 500 - 500 Genesco Brands Group 698 - 698 Corporate and Other (7,929 ) 291 (7,638 ) Total Operating Loss $ (28,145 ) $ 291 $ (27,854 ) % of sales -5.9 % -5.9 % Depreciation and amortization 13,393 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) $ (14,461 ) % of sales -3.1 % Quarter 1 - May 4, 2024 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (18,822 ) $ - $ (18,822 ) Schuh Group (5,896 ) - (5,896 ) Johnston & Murphy Group 2,355 - 2,355 Genesco Brands Group (986 ) 1,581 595 Corporate and Other (8,779 ) 578 (8,201 ) Total Operating Loss $ (32,128 ) $ 2,159 $ (29,969 ) % of sales -7.0 % -6.5 % Depreciation and amortization 13,237 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) $ (16,732 ) % of sales -3.7 % (1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations. Quarter 1 In Thousands May 3, 2025 May 4, 2024 Gross margin, as reported $ 221,181 $ 216,281 % of sales 46.7 % 47.3 % Charges related to distribution model transition - 1,581 Total adjustments - 1,581 Adjusted gross margin $ 221,181 $ 217,862 % of sales 46.7 % 47.6 % Schedule B Genesco Inc. Adjustments to Forecasted Earnings from Continuing Operations Fiscal Year Ending January 31, 2026 In millions (except per share amounts) High Guidance Low Guidance Fiscal 2026 Fiscal 2026 Net of Tax Per Share Net of Tax Per Share Forecasted earnings from continuing operations $ 17.0 $ 1.61 $ 12.5 $ 1.17 Asset impairments and other adjustments: Asset impairments and other matters 1.0 0.09 1.3 0.13 Total asset impairments and other adjustments (1) 1.0 0.09 1.3 0.13 Adjusted forecasted earnings from continuing operations (2) $ 18.0 $ 1.70 $ 13.8 $ 1.30 (1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2026 is approximately 29%. (2) EPS reflects 10.6 million share count for Fiscal 2026 which includes common stock equivalents. This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates. View source version on Contacts Genesco Financial Contact Sandra Harris, SVP Finance, Chief Financial Officer(615) 367-7578 / SHarris2@ Genesco Media Contact Claire S. McCall, Director, Corporate Relations(615) 367-8283 / cmccall@
Business Wire
4 hours ago
- Business
- Business Wire
Genesco Inc. Reports Fiscal 2026 First Quarter Results
NASHVILLE, Tenn.--(BUSINESS WIRE)--Genesco Inc. (NYSE: GCO) today reported first quarter results for the three months ended May 3, 2025. First Quarter Fiscal 2026 Financial Summary Net sales of $474 million increased 4% compared to Q1FY25 Comparable sales increased 5%, with stores up 5% and e-commerce up 7% E-commerce sales represented 23% of retail sales Selling and administrative expenses leveraged 170 basis points compared to last year GAAP EPS was ($2.02) and Non-GAAP EPS was ($2.05) 1 versus GAAP EPS of ($2.22) and Non-GAAP EPS of ($2.10) last year Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, 'Following the significant momentum in last year's back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we've done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income.' Vaughn continued, 'While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact. In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment.' __________________________ 1 Excludes charges for severance and asset impairments, net of tax effect in the first quarter of Fiscal 2026 ('Excluded Items'). A reconciliation of loss and loss per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ('GAAP') with the adjusted loss and loss per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of loss and loss per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Expand Sandra Harris, Genesco's Senior Vice President Finance and Chief Financial Officer, added, 'Our first quarter performance exceeded our expectations, and our adjusted EPS would have been $0.05 better had we not opportunistically bought back shares during the quarter. Today we are reiterating our full-year adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. Although there is ongoing external market uncertainty, we know our businesses are strong, and we are making investments in product, stores, and marketing across all brands to drive growth.' First Quarter Review Net sales for the first quarter of Fiscal 2026 increased 4% to $474 million compared to $458 million in the first quarter of Fiscal 2025. The net sales increase reflects a 5% increase in comparable sales, including a 7% increase in e-commerce comparable sales and a 5% increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings. The overall sales increase of 4% for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025 was driven by an increase of 5% at Journeys, an increase of 4% at Schuh and a 7% increase at Genesco Brands, partially offset by a decrease of 3% at Johnston & Murphy. On a constant currency basis, Schuh sales were up 1% for the first quarter this year. Gross margin for the first quarter this year was 46.7% compared to 47.3% last year. Adjusted gross margin for the first quarter this year of 46.7% decreased 90 basis points as a percentage of sales compared to 47.6% last year. The decrease as a percentage of sales compared to Fiscal 2025 is due primarily to changes in brand mix at Journeys and Schuh, promotional activity at Schuh and lower margins at Genesco Brands related to liquidation of product for sunsetting licenses. Selling and administrative expenses for the first quarter this year of 52.5% decreased 170 basis points as a percentage of sales compared with last year primarily reflecting decreased occupancy and performance-based compensation expenses as well as other cost savings initiatives. Genesco's GAAP operating loss for the first quarter was $28.1 million, or 5.9% of sales this year, compared with a loss of $32.1 million, or 7.0% of sales in the first quarter last year. Adjusted for the Excluded Items in the first quarters of both Fiscal 2026 and 2025, the operating loss for the first quarter was $27.9 million this year compared to a loss of $30.0 million last year. Adjusted operating margin was a loss of 5.9% of sales in the first quarter of Fiscal 2026 compared to a loss of 6.5% in the first quarter last year. The effective tax rate for the quarter was 28.5% in Fiscal 2026 compared to 26.7% in the first quarter last year. The adjusted tax rate, reflecting Excluded Items, was 26.7% in Fiscal 2026 compared to 26.0% in the first quarter last year. GAAP loss from continuing operations was $21.2 million in the first quarter of Fiscal 2026 compared to a loss of $24.3 million in the first quarter last year. Adjusted for the Excluded Items, the first quarter loss from continuing operations was $21.5 million, or $2.05 per share, in Fiscal 2026, compared to a loss of $22.9 million, or $2.10 per share, in the first quarter last year. Cash, Borrowings and Inventory Cash as of May 3, 2025, was $21.7 million, compared with $19.2 million as of May 4, 2024. Total debt at the end of the first quarter of Fiscal 2026 was $121.0 million compared with $59.4 million at the end of last year's first quarter, primarily reflecting increased inventories which were up 15% on a year-over-year basis to meet increased demand at Journeys. Capital Expenditures and Store Activity For the first quarter this year, capital expenditures were $19 million, related primarily to retail stores and other initiatives. Depreciation and amortization was $13 million. During the quarter, the Company opened four stores and closed 26 stores. The Company ended the quarter with 1,256 stores compared with 1,321 stores at the end of the first quarter last year, or a decrease of 5%. Square footage was down 3% on a year-over-year basis. Share Repurchases The Company repurchased 604,531 shares for $12.6 million, or $20.79 per share, during the first quarter of Fiscal 2026. The Company currently has $29.8 million remaining on its expanded share repurchase authorization announced in June 2023. Fiscal 2026 Outlook For Fiscal 2026, the Company: Continues to expect adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 2 , including the impact of tariffs currently in place Expects total sales to be up 1% to 2% compared to Fiscal 2025 versus prior expectation of flat to up 1% due to the impact of favorable foreign exchange, with comparable sales range narrowed to up 2% to 3% versus prior range of up 2% to 4% Guidance assumes no further share repurchases and a tax rate of 29% Conference Call, Management Commentary and Investor Presentation The Company has posted detailed financial commentary and a supplemental financial presentation of first quarter results on its website, in the investor relations section. The Company's live conference call on June 4, 2025, at 7:30 a.m. (Central time), may be accessed through the Company's website, To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software. Safe Harbor Statement This release contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, cost reductions, and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as 'intend,' 'expect,' 'feel,' 'should,' 'believe,' 'anticipate,' 'optimistic,' 'confident' and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; our ability to pass on price increases to our customers; restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company's ability to adequately staff and operate stores. Differences from expectations could also result from store closures and effects on the business as a result of the level and timing of promotional activity necessary to maintain inventories at appropriate levels; the Company's ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; civil disturbances; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company's ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company's ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company's business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company's ability to realize any anticipated tax benefits in both the amount and timeframe anticipated; and the cost and outcome of litigation, investigations, environmental matters and other disputes involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company's SEC filings, copies of which may be obtained from the SEC website, or by contacting the investor relations department of Genesco via the Company's website, Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements. About Genesco Inc. Genesco Inc. (NYSE: GCO) is a footwear focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities offering customers the footwear they desire in engaging shopping environments, including more than 1,250 retail stores and branded e-commerce websites. Its Journeys, Little Burgundy and Schuh brands serve teens, kids and young adults with on-trend fashion footwear that inspires youth culture in the U.S., Canada and the U.K. Johnston & Murphy serves the successful, affluent man and woman with premium footwear, apparel and accessories in the U.S. and Canada, and Genesco Brands Group sells branded lifestyle footwear to leading retailers under licensed brands including Levi's, Dockers, Starter and PONY. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit GENESCO INC. Sales/Earnings Summary by Segment (in thousands) (Unaudited) Quarter 1 Quarter 1 May 3, % of May 4, % of 2025 Net Sales 2024 Net Sales Sales: Journeys Group $ 272,634 57.5 % $ 259,445 56.7 % Schuh Group 95,915 20.2 % 92,349 20.2 % Johnston & Murphy Group 76,839 16.2 % 79,207 17.3 % Genesco Brands Group 28,585 6.0 % 26,596 5.8 % Net Sales $ 473,973 100.0 % $ 457,597 100.0 % Operating income (loss): Journeys Group $ (15,283 ) -5.6 % $ (18,822 ) -7.3 % Schuh Group (6,131 ) -6.4 % (5,896 ) -6.4 % Johnston & Murphy Group 500 0.7 % 2,355 3.0 % Genesco Brands Group (1) 698 2.4 % (986 ) -3.7 % Corporate and Other (2) (7,929 ) -1.7 % (8,779 ) -1.9 % Operating loss (28,145 ) -5.9 % (32,128 ) -7.0 % Other components of net periodic benefit cost 180 0.0 % 109 0.0 % Interest expense, net 1,339 0.3 % 890 0.2 % Loss from continuing operations before income taxes (29,664 ) -6.3 % (33,127 ) -7.2 % Income tax benefit (8,452 ) -1.8 % (8,839 ) -1.9 % Loss from continuing operations (21,212 ) -4.5 % (24,288 ) -5.3 % Loss from discontinued operations, net of tax (15 ) 0.0 % (59 ) 0.0 % Net Loss $ (21,227 ) -4.5 % $ (24,347 ) -5.3 % (1) Includes a $1.6 million gross margin charge related to a distribution model transition in Genesco Brands Group in the first quarter of Fiscal 2025. (2) Includes a $0.3 million charge in the first quarter of Fiscal 2026 for severance. Includes a $0.6 million charge in the first quarter of Fiscal 2025 which includes $0.3 million for severance and $0.3 million for asset impairments. Expand GENESCO INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) May 3, 2025 May 4, 2024 Assets Cash $ 21,748 $ 19,247 Accounts receivable 52,815 50,119 Inventories 450,829 392,671 Other current assets (1) 107,922 46,003 Total current assets 633,314 508,040 Property and equipment 236,909 233,601 Operating lease right of use assets 472,091 420,133 Goodwill and other intangibles 36,857 36,331 Non-current prepaid income taxes - 57,441 Other non-current assets 25,420 51,871 Total Assets $ 1,404,591 $ 1,307,417 Liabilities and Equity Accounts payable $ 122,166 $ 108,847 Current portion long-term debt 7,299 - Current portion operating lease liabilities 126,954 125,450 Other current liabilities 74,504 73,888 Total current liabilities 330,923 308,185 Long-term debt 113,733 59,444 Long-term operating lease liabilities 389,384 345,670 Other long-term liabilities 48,319 45,665 Equity 522,232 548,453 Total Liabilities and Equity $ 1,404,591 $ 1,307,417 (1) Includes prepaid income taxes of $74.8 million at May 3, 2025 and $17.3 million at May 4, 2024. Expand GENESCO INC. Store Count Activity Balance Balance Balance 02/03/24 Open Close 02/01/25 Open Close 05/03/25 Journeys Group 1,063 7 64 1,006 2 19 989 Schuh Group 122 4 2 124 0 3 121 Johnston & Murphy Group 156 1 9 148 2 4 146 Total Retail Stores 1,341 12 75 1,278 4 26 1,256 Expand GENESCO INC. Comparable Sales Quarter 1 May 3, May 4, 2025 2024 Journeys Group 8% -5% Schuh Group 1% -7% Johnston & Murphy Group -2% -3% Total Comparable Sales 5% -5% Same Store Sales 5% -7% Comparable E-commerce Sales 7% 3% Expand Schedule B Genesco Inc. Adjustments to Reported Loss from Continuing Operations Three Months Ended May 3, 2025 and May 4, 2024 The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Quarter 1 Quarter 1 May 4, 2024 Net of Per Share Net of Per Share In Thousands (except per share amounts) Pretax Tax Amounts Pretax Tax Amounts Loss from continuing operations, as reported $ (21,212 ) ($2.02 ) $ (24,288 ) ($2.22 ) Gross margin adjustment: Charges related to distribution model transition $ - - 0.00 $ 1,581 1,151 0.10 Asset impairments and other adjustments: Asset impairment charges $ 34 24 0.00 $ 244 178 0.02 Severance 257 185 0.02 334 243 0.02 Total asset impairments and other adjustments $ 291 209 0.02 $ 578 421 0.04 Income tax expense adjustments: Tax impact share based awards 139 0.01 130 0.01 Other tax items (666 ) (0.06 ) (345 ) (0.03 ) Total income tax expense adjustments (527 ) (0.05 ) (215 ) (0.02 ) Adjusted loss from continuing operations (1) and (2) $ (21,530 ) ($2.05 ) $ (22,931 ) ($2.10 ) (1) The adjusted tax rate for the first quarter of Fiscal 2026 and 2025 is 26.7% and 26.0%, respectively. (2) EPS reflects 10.5 million and 10.9 million share count for the first quarter of Fiscal 2026 and 2025, respectively, which excludes common stock equivalents in both periods due to the loss from continuing operations. Expand Genesco Inc. Adjustments to Reported Operating Income (Loss) and Gross Margin Three Months Ended May 3, 2025 and May 4, 2024 Quarter 1 - May 3, 2025 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (15,283 ) $ - $ (15,283 ) Schuh Group (6,131 ) - (6,131 ) Johnston & Murphy Group 500 - 500 Genesco Brands Group 698 - 698 Corporate and Other (7,929 ) 291 (7,638 ) Total Operating Loss $ (28,145 ) $ 291 $ (27,854 ) % of sales -5.9 % -5.9 % Depreciation and amortization 13,393 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA") (1) $ (14,461 ) % of sales -3.1 % Quarter 1 - May 4, 2024 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (18,822 ) $ - $ (18,822 ) Schuh Group (5,896 ) - (5,896 ) Johnston & Murphy Group 2,355 - 2,355 Genesco Brands Group (986 ) 1,581 595 Corporate and Other (8,779 ) 578 (8,201 ) Total Operating Loss $ (32,128 ) $ 2,159 $ (29,969 ) % of sales -7.0 % -6.5 % Depreciation and amortization 13,237 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA") (1) $ (16,732 ) % of sales -3.7 % (1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations. Expand Quarter 1 In Thousands May 3, 2025 May 4, 2024 Gross margin, as reported $ 221,181 $ 216,281 % of sales 46.7 % 47.3 % Charges related to distribution model transition - 1,581 Total adjustments - 1,581 Adjusted gross margin $ 221,181 $ 217,862 % of sales 46.7 % 47.6 % Expand Schedule B Genesco Inc. Adjustments to Forecasted Earnings from Continuing Operations Fiscal Year Ending January 31, 2026 In millions (except per share amounts) High Guidance Low Guidance Fiscal 2026 Fiscal 2026 Net of Tax Per Share Net of Tax Per Share Forecasted earnings from continuing operations $ 17.0 $ 1.61 $ 12.5 $ 1.17 Asset impairments and other adjustments: Asset impairments and other matters 1.0 0.09 1.3 0.13 Total asset impairments and other adjustments (1) 1.0 0.09 1.3 0.13 Adjusted forecasted earnings from continuing operations (2) $ 18.0 $ 1.70 $ 13.8 $ 1.30 (1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2026 is approximately 29%. (2) EPS reflects 10.6 million share count for Fiscal 2026 which includes common stock equivalents. This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates. Expand
Yahoo
14-05-2025
- Business
- Yahoo
Logistic Properties of the Americas Announces First Quarter 2025 Earnings Results
Growth Momentum Accelerates with 1Q25 Revenue Increasing 12.9% SAN JOSÉ, Costa Rica, May 14, 2025--(BUSINESS WIRE)--Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries, "LPA" or the "Company"), announced today its unaudited consolidated financial results for the first quarter ended March 31, 2025 ("first quarter 2025" or "1Q25"). The financial results are expressed in U.S. dollars and are presented in accordance with International Accounting Standard ("IAS") 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"), which differs in certain significant respects from the U.S. Generally Accepted Accounting Principles ("GAAP"). This information should be read in conjunction with, and is qualified in its entirety by reference to, the Company's condensed consolidated interim financial statements, including the notes thereto. All comparisons within this announcement are year-over-year ("YoY"), unless otherwise noted. LPA's financial results are stated in U.S. dollars unless otherwise noted. LPA is a leading developer, owner, acquirer and manager of logistics and industrial real estate of institutional quality in the Americas, and one of the few internally managed, vertically integrated, and institutional platforms operating across the region. 1Q25 Financial and Operating Highlights Revenue increased 12.9% to $11.8 million in the first quarter of 2025. The $1.4 million of additional revenue was primarily due to the stabilization of a building in Peru during the first quarter, as well as the stabilization of three buildings in 2024, two in Peru and one in Costa Rica. In addition, the Company had a $0.2 million increase in revenue from positive rental rate growth related to higher rental rates upon lease rollovers or contractual rent increases on existing leases, along with other revenues increasing approximately $0.1 million. Partially offsetting the revenue increase was a $0.2 million decrease related to currency translation effects of leases denominated in Colombian pesos. Net Operating Income ("NOI") increased 6.0% to $9.4 million, primarily due to the above-mentioned building stabilizations and higher rental rates. Same-Property Cash NOI decreased 4.3% to $8.6 million during the period, primarily due to a rent reduction from the prepayment of a financed tenant improvement in Costa Rica and a one-time maintenance expense in Colombia. Additionally, property taxes in Peru increased following a municipal asset revaluation and one-time charges from the municipality. The occupancy rate of LPA's operating portfolio was 98.0% at the end of the first quarter, a 0.3 p.p. decrease from year-end 2024 and a 1.3 p.p. increase from first-quarter 2024. During the first quarter of 2025, LPA signed a USD-denominated lease for 63,109 square feet ("sq. ft.") of space in Building 100 in its Parque Logístico Callao facility in Lima, Peru with a leading third-party logistics provider, replacing a prior lease with this tenant. LPA also signed a new lease for 71,580 sq. ft. of Gross Leasable Area ("GLA") at Building 400 in Parque Logistico Lima Sur with a long-standing regional tenant which is one of the world's leading logistics providers. General and Administrative expenses increased 112.1% to $3.6 million in 1Q25, primarily due to a $0.8 million increase in other professional services expenses and to $0.3 million in amortization expenses related to Director and Officer liability insurance expenses that have been incurred since LPA's business combination and related listing on the NYSE American on March 28, 2024. In addition, the Company incurred $0.4 million in total share-based payment compensation in the form of Restricted Stock Units issued to executives in connection with the business combination, as well as $0.1 million of trustee and director fees. Also, an increase in employee headcount during the first quarter increased personnel costs by $0.1 million versus last year's comparable quarter. During 1Q25, LPA repurchased an additional $0.8 million of its ordinary shares, bringing the total amount of repurchased shares to $2.1 million under its $10 million share repurchase program, which will expire on November 20, 2025. Subsequent Events On April 30, 2025, LPA announced its plan to expand the Parque Logístico Callao property with the construction of Building 200, a new 227,172 sq. ft. facility that will increase the Company's footprint in Peru's underpenetrated logistics real estate market. At the time of the announcement, this facility was more than 70% pre-leased to existing LPA clients, including Peru's largest consumer products company, which will lease 101,557 sq. ft., and to the country's largest pharmacy chain, which pre-leased 61,074 sq. ft. Both pre-leases are denominated in U.S. dollars. CEO Commentary The growth momentum of our multinational, vertically integrated real estate platform accelerated in the first quarter, as demand for institutional quality, strategically located facilities like ours remained strong. The bulk of that demand came from LPA's large and diverse customer base, comprised of both regional and global leaders in consumer goods, third-party logistics and retail. We continue growing with our customers and deepening our relationships with them, as they further expand their operations in response to growing domestic consumption in LPA's foundational markets: Costa Rica, Colombia and Peru. During the quarter, one of those customers, a leading global logistics company, signed an additional lease with us that brought LPA's operating GLA to a fully leased status, a significant milestone. The following month we also announced that we will increase the space of our other Peruvian park, Parque Logístico Callao, with the addition of a 227,172 sq. ft. building. Reflecting the scarcity of premium facilities like ours in key urban markets like Lima, this facility was more than 70% pre-leased. Securing land in such a strategic location represents a high barrier to entry typical of the markets where we have chosen to operate, due to the prevalence of highly fragmented land ownership, which our Company is uniquely able to capitalize on. The concessionaire of this land sought a strategic partner in the region with LPA's unique characteristics: a recognized institutional-level player with a strong, long-standing track record of developing and operating world-class logistics parks. Some of LPA's clients are also expanding in Mexico, and our deep relationships will enable us to grow with them in this market as well. Although there is considerable uncertainty surrounding nearshoring in Mexico currently, domestic consumption remains resilient and robust, driving demand for premium facilities that are strategically located in the country's key sub-markets. Mexico lengthens LPA's growth runway substantially, complementing the robust development opportunities we are seeing in our foundational markets. We will continue to work with local partners that have deep and extensive relationships in this far larger market, as well as complementary local market knowledge and on-the-ground expertise. We will also remain highly selective when investing, as we are when choosing our tenants. Our vision and ambition to substantially expand and scale LPA's unique real estate platform are backed by our team's extensive industry and market experience, a robust balance sheet, and strong underlying fundamentals such as high occupancy levels and dollar-based rents. As we look ahead, we believe LPA remains well positioned to create enduring value for our shareholders. Esteban Saldarriaga Chief Executive Officer Real Estate Portfolio As of and for the three months ended March 31, 2025 As of and for the year ended December 31, 2024 As of and for the three months ended March 31, 2024 Number of operating real estate properties 31 30 28 Operating GLA (sq. ft) 5,292,588 5,121,625 4,743,305 Leased GLA (sq. ft) 5,810,181 5,637,044 5,523,194 Number of tenants 57 57 52 Average rent per square foot $7.96 $7.79 $7.81 Weighted average remaining lease term 5.0 years 5.1 years 5.6 years Stabilized occupancy rate (% of GLA) 98.0 % 98.3 % 96.7 % Financial Performance Revenues For the three months ended March 31, 2025 2024 % Change Costa Rica $ 6,000,839 $ 5,655,817 6.1 % Colombia 2,400,284 2,339,372 2.6 % Peru 3,363,652 2,431,060 38.4 % Unallocated revenue 75,016 57,213 31.1 % Total revenues $ 11,839,791 $ 10,483,462 12.9 % Investment Property Operating Expenses For the three months ended March 31, 2025 2024 % Change Costa Rica $ 848,787 $ 836,113 1.5 % Colombia 458,526 242,525 89.1 % Peru 1,030,389 453,156 127.4 % Total investment property operating expense $ 2,337,702 $ 1,531,794 52.6 % Supplemental Information Please refer to LPA's quarterly Supplemental Information and Management Discussion and Analysis, both of which are available on the Company's Investor Relations website at 1Q25 Earnings Conference Call When: May 15, 2025, 9:00 a.m. Eastern Time / 8:00 a.m. Central Time Who: Mr. Esteban Saldarriaga, Chief Executive Officer, Mr. Paul Smith, Chief Financial Officer, and Mr. Camilo Ulloa, Investor Relations Dial-in: (800) 715-9871 (USA Toll-free), +1 (646) 307-1963 (USA/International) Passcode: 6436556 Pre-Register: You may pre-register at any time at: Callers will need to press # to be connected to an operator to access LPA's financial results conference call via telephone. Webcast: A call recording will also be available for replay on LPA's website for a limited time. About Logistic Properties of the Americas Logistic Properties of the Americas is a leading developer, owner, and manager of institutional quality industrial and logistics real estate in high-growth and high-barrier-to-entry markets in Central and South America. LPA's customers are multinational and regional e-commerce retailers, third-party logistic operators, business-to-business distributors, and retail distribution companies among others. LPA expects to continue its future growth with strong client relationships, and insight into and through the acquisition and development of high-quality, strategically located facilities in its target markets. As of March 31, 2025, LPA's operating and development portfolio was comprised of 33 logistics facilities in Costa Rica, Colombia and Peru totaling approximately 536,000 square meters (or approximately 5.8 million sq. ft.) of gross leasable area. For more information visit Forward-Looking Statements This press release contains certain forward-looking information, which may not be included in future public filings or investor guidance. The inclusion of forward-looking information in this press release should not be construed as a commitment by LPA to provide guidance on such information in the future. Certain statements in this press release may be considered forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements about future events or LPA's future financial or operating performance. These forward-looking statements regarding future events and the future results of LPA are based on current expectations, estimates, forecasts, and projections about the industry in which LPA operates, as well as the beliefs and assumptions of LPA's management. These forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other factors beyond LPA's control that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. They are neither statements of historical fact nor promises or guarantees of future performance. Therefore, LPA's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements and LPA therefore caution against relying on any of these forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LPA and its management, are inherently uncertain and are inherently subject to risks variability and contingencies, many of which are beyond LPA's control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the possibility of any economic slowdown or downturn in real estate asset values or leasing activity or in the geographic markets where LPA operates; (ii) LPA's ability to manage growth; (iii) LPA's ability to continue to comply with applicable listing standards of NYSE American; (iv) changes in applicable laws, regulations, political and economic developments; (v) the possibility that LPA may be adversely affected by other economic, business and/or competitive factors; (vi) LPA's estimates of expenses and profitability; (vii) the outcome of any legal proceedings that may be instituted against LPA and (viii) other risks and uncertainties set forth in the filings by LPA with the U.S. Securities and Exchange Commission. There may be additional risks that LPA does not presently know or that LPA currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Any forward-looking statements made by or on behalf of LPA speak only as of the date they are made. Except as otherwise required by applicable law, LPA disclaims any obligation to publicly update or revise any forward-looking statements to reflect any changes in their respective expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Accordingly, you should not place undue reliance on forward-looking statements due to their inherent uncertainty. Nothing within this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. View source version on Contacts Investor Relations ContactsCamilo UlloaLogistic Properties of the Americas+506 6293 9083camilo@ Barbara Cano/Ivan PeillInspIR Groupbarbara@ / ivan@ 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
Yahoo
14-05-2025
- Business
- Yahoo
Planet 13 Announces Q1 2025 Financial Results
Q1 2025 Revenue of $28.0 million Q1 2025 Net loss of $2.0 million Q1 2025 Adjusted EBITDA loss of $2.5 million All figures are reported in United States dollars ($) unless otherwise indicated LAS VEGAS, May 14, 2025 (GLOBE NEWSWIRE) -- Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) ('Planet 13' or the 'Company'), a leading vertically-integrated multi-state cannabis company, today announced its financial results for the three-month period ended March 31, 2025. Planet 13's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ('GAAP'). 'This was a challenging quarter, marked by persistent pricing pressure and softness in tourism and consumer spending. Despite the headwinds, our differentiated brands and focus on entertainment continue to drive relative outperformance, reinforcing the strength and resilience of our portfolio,' said Larry Scheffler, co-CEO of Planet 13. 'We are moving with urgency to align our cost base to the realities of today's market. These actions are focused on sharpening our operational efficiency, enhancing profitability, and prioritizing investments in our most strategic and high-performing assets. By concentrating on what we do best, we're positioning the company for stronger, more sustainable growth,' said Bob Groesbeck, co-CEO of Planet 13. Financial Highlights – Q1 – 2025 Operating Results All comparisons below are to the quarter ended March 31, 2024, unless otherwise noted Revenue was $28.0 million as compared to $22.9 million, an increase of 22.5%. The increase in sales was driven by the addition of Florida. Gross profit was $12.0 million or 42.8% as compared to $10.5 million or 45.8%. The lower gross margin was driven by industry wide pricing pressure. Total expenses were $18.6 million as compared to $14.1 million, a increase of 31.6%. Higher total expenses were driven by the addition of Florida operations. Net loss of $2.0 million as compared to a net loss of $5.9 million. Adjusted EBITDA loss of $2.5 million as compared to Adjusted EBITDA loss of $0.0 million. Adjusted EBITDA loss was driven by lower operating leverage. Balance Sheet All comparisons below are to December 31, 2024, unless otherwise noted Cash of $15.6 million as compared to $23.4 million Total assets of $203.8 million as compared to $206.7 million Total liabilities of $93.1 million as compared to $94.0 million Q1 Highlights and Recent Developments For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13's press releases. On March 3, 2025, Planet 13 announced a significant recovery of funds related to El Capitan. On March 27, 2025, Planet 13 announced the opening of its Port Richey dispensary in Tampa Bay region. On April 2, 2025, Planet 13 announced the opening of a new dispensary in Orange Park, Florida. On April 30, 2025, Planet 13 announced the opening of a new dispensary in Edgewater, Florida, just south of Daytona Beach. Results of Operations (Summary) The following tables set forth consolidated statements of financial information for the three-month periods ending March 31, 2025, and March 31, 2024. Financial Highlights Results of Operations (Figures in millions For the Three Months Ended and % change based March 31, March 31, on these figures) 2025 2024 change Total Revenue $ 28.0 $ 22.9 22.5 % Gross Profit $ 12.0 $ 10.5 14.5 % Gross Profit % 42.8 % 45.8 % -6.5 % Operating Expenses $ 16.8 $ 12.0 40.2 % Operating Expenses % 60.0 % 52.4 % 14.4 % Net Loss Before Provision for Income Taxes $ (1.8 ) $ (3.5 ) -48.6 % Net Loss $ (2.0 ) $ (5.9 ) -65.1 % Adjusted EBITDA $ (2.5 ) $ (0.0 ) 6180.9 % Adjusted EBITDA Margin % -9.0 % -0.2 % The Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, is available on the SEC's website at or at The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company's profile on SEDAR+ at and on its website at This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements. Conference Call Planet 13 will host a conference call on May 14, 2025 at 5:00 p.m. ET to discuss its first quarter financial results and provide investors with key business highlights, strategy, and outlook. The call will be chaired by Robert Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO. CONFERENCE CALL DETAILS Date: May 14, 2025 | Time: 5:00 p.m. EST Call registration link: Non-GAAP Financial Measures There are financial measures included in this press release that are not in accordance with GAAP and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. These non-GAAP financial measures should be considered as supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. The Company includes EBITDA and Adjusted EBITDA because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA is calculated as net income (loss) before interest, taxes, depreciation and amortization and Adjusted EBITDA is calculated as EBITDA before share-based compensation, the change in fair value of warrants and one-time non-recurring expenses. The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods presented: Reconciliation of Non-GAAP Adjusted EBITDA (Figures in millions For the Three Months Ended and % change based March 31, March 31, on these figures) 2025 2024 change Net Income (Loss) $ (2.0 ) $ (5.9 ) -65.1 % Add impact of: Interest (income)/expense, net $ 0.2 $ (0.0 ) -818.2 % Provision for income taxes $ 0.2 $ 2.3 -90.0 % Depreciation and amortization $ 1.8 $ 2.1 -14.9 % Depreciation included in cost of goods sold $ 1.3 $ 1.0 38.7 % EBITDA $ 1.4 $ (0.5 ) -369.2 % Share-based compensation and related premiums $ 0.1 $ 0.1 -42.2 % Gain on recovery of property in settlement $ (4.6 ) $ - 0.0 % Professional fees expensed related to M&A activities $ 0.2 $ 0.0 322.0 % Expenses related to El Capitan Matter $ 0.3 $ 0.3 -2.4 % Adjusted EBITDA $ (2.5 ) $ (0.0 ) 6180.9 % For more information on Planet 13, visit the investor website ( About Planet 13 Planet 13 ( is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations across its locations in California, Nevada, Illinois, and Florida. Home to the nation's largest dispensary, located just off The Strip in Las Vegas, Planet 13 continues to expand its footprint with the recent debut of its first consumption lounge in Las Vegas, DAZED!, the opening of its first Illinois dispensary in Waukegan, bringing unparalleled cannabis experiences to the Chicago metro area. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and innovative cannabis products. Licensed cannabis activity is legal in the states Planet 13 operates in but remains illegal under U.S. federal law. Planet 13's shares trade on the Canadian Securities Exchange (CSE) under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH. To learn more, visit and follow Planet 13 on Instagram @ news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements and are often, but not always, identified by phrases such as 'plans', 'expects', 'proposed', 'may', 'could', 'would', 'intends', 'anticipates', or 'believes', or variations of such words and phrases. In this news release, forward-looking statements relate to our strategic goals or future performance. Such forward-looking statements reflect what management of the Company believes, or believed at the time, to be reasonable assumptions and accordingly readers are cautioned not to place undue reliance upon such forward-looking statements and that actual results may vary from such forward-looking statements. These assumptions, risks and uncertainties which may cause actual results to differ include, among others: final regulatory and other approvals or consents needed to operate our business; fluctuations in general macroeconomic conditions; inflationary pressures; fluctuations in securities markets; expectations regarding the size of the cannabis market in the states in which we currently operate in or contemplate future operations and changing consumer habits in such states; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties including international conflict; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the states in which we currently operate in or contemplate future operations; employee relations and other risks and uncertainties discussed under the heading 'Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission at and on the Company's issuer profile on SEDAR+ at and in the Company's periodic reports subsequently filed with the U.S. Securities and Exchange Commission and on SEDAR+. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. For further inquiries, please contact: LodeRock Advisors Inc., Planet 13 Investor Robert Groesbeck or Larry SchefflerCo-Chief Executive Officersir@ PLANET 13 HOLDINGS Condensed Consolidated Balance Sheets(Unaudited, In United States Dollars) March 31, December 31, 2025 2024 ASSETS Current Assets: Cash $ 15,556,553 $ 23,384,493 Restricted Cash 2,050,584 2,050,584 Accounts Receivable 1,634,120 1,473,156 Inventory 24,199,619 22,821,994 Assets held for sale 4,570,227 - Prepaid Expenses and Other Current Assets 3,714,748 4,568,816 Total Current Assets 51,725,851 54,299,043 Property, Plant and Equipment 63,223,161 63,511,423 Intangible Assets and Goodwill 48,763,931 48,763,931 Right of Use Assets - Operating 37,720,488 38,229,399 Long-term Deposits and Other Assets 1,068,477 1,033,758 Deferred Tax Asset 1,283,906 896,525 TOTAL ASSETS $ 203,785,814 $ 206,734,079 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Current: Accounts Payable $ 5,940,241 $ 7,421,921 Accrued Expenses 7,372,088 7,285,415 Income Taxes Payable 1,211,082 139,480 Notes Payable - Current Portion 8,847,542 8,681,684 Operating Lease Liabilities 1,897,526 1,818,588 Total Current Liabilities 25,268,479 25,347,088 Long-Term Liabilities: Operating Lease Liabilities 46,006,886 46,448,666 Other Long-term Liabilities 1,230,037 1,220,722 Uncertain Tax Positions 19,321,475 19,321,475 Deferred Tax Liability 1,231,852 1,682,207 Total Liabilities 93,058,729 94,020,158 SHAREHOLDERS' EQUITY Common Stock, no par value, 1,500,000,000 shares authorized, 325,263,800 issued and outstanding at March 31, 2025 and 325,163,800 issued and outstanding at December 31, 2024 - - Preferred Stock, no par value, 50,000,000 shares authorized, 0 issued and outstanding at March 31, 2025 and 0 at December 31, 2024 - - Additional Paid-In Capital 368,881,670 368,821,339 Deficit (258,154,585 ) (256,107,418 ) Total Shareholders' Equity 110,727,085 112,713,921 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 203,785,814 $ 206,734,079 PLANET 13 HOLDINGS Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited, In United States Dollars) Three Months Ended March 31, March 31, 2025 2024 Revenues, net of discounts $ 28,031,807 $ 22,877,471 Cost of Goods Sold (16,024,302 ) (12,392,992 ) Gross Profit 12,007,505 10,484,479 Expenses: General and Administrative 14,016,688 10,024,787 Sales and Marketing 1,547,018 1,290,737 Lease Expense 1,304,893 774,946 Depreciation 1,751,430 2,059,023 Total Expenses 18,620,029 14,149,493 Loss From Operations (6,612,524 ) (3,665,014 ) Other Income (Expense): Interest income (expense), net (176,411 ) 24,562 Foreign exchange (loss) (2,889 ) (3,097 ) Other income, net 4,978,523 113,749 Total Other Income 4,799,223 135,214 Loss Before Provision for Income Taxes (1,813,301 ) (3,529,800 ) Provision For Income Taxes Current Tax Expense (1,071,602 ) (2,363,860 ) Deferred Tax Recovery 837,736 19,891 (233,866 ) (2,343,969 ) Net Loss and Comprehensive Loss $ (2,047,167 ) $ (5,873,769 ) Loss per Share Basic and diluted loss per share $ (0.01 ) $ (0.03 ) Weighted Average Number of Shares of Common Stock Basic and diluted 325,261,578 228,437,545 PLANET 13 HOLDINGS Condensed Consolidated Statements of Cash Flows(Unaudited, In United States Dollars) Three Months Ended March 31, March 31, 2025 2024 CASH USED IN OPERATING ACTIVITIES Net loss $ (2,047,167 ) $ (5,873,769 ) Adjustments for items not involving cash: Shared based compensation 60,331 104,338 Non-cash lease expense 506,530 235,980 Depreciation 3,081,283 3,017,720 Loss on disposal of fixed assets - 66,178 Recovery of property in legal settlement (4,570,227 ) - Amortization of note payable discount 126,725 - Lease incentive amortization 2,381 27,277 (2,840,144 ) (2,422,276 ) Net Changes in Non-cash Working Capital Items (1,986,054 ) 1,082,151 Repayment of lease liabilities (362,842 ) (90,826 ) Total Operating (5,189,040 ) (1,430,951 ) FINANCING ACTIVITIES Proceeds from public share issuance - 9,913,856 Repayment of Lafayette State Bank Note (2,947,632 ) - Bank of Nevada Revolving Line of Credit 3,000,000 - Total Financing 52,368 9,913,856 INVESTING ACTIVITIES Purchase of property and equipment (2,691,268 ) (2,947,190 ) Proceeds from sales of fixed assets - 4,594 Total Investing (2,691,268 ) (2,942,596 ) NET CHANGE IN CASH DURING THE PERIOD (7,827,940 ) 5,540,309 CASH Beginning of Period 25,435,077 17,281,592 End of Period $ 17,607,137 $ 22,821,901 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
Cision Canada
13-05-2025
- Business
- Cision Canada
Galaxy Announces First Quarter 2025 Financial Results
NEW YORK, May 13, 2025 /CNW/ - Galaxy Digital Inc. (TSX: GLXY) (the "Company" or "GDI") today released financial results for the three months ended March 31, 2025, for both itself and Galaxy Digital Holdings LP (the "Partnership" or "GDH LP"). In this press release, a reference to "Galaxy", "we", "our" and similar words refer to GDH LP, its subsidiaries and affiliates including GDI, or any one of them, as the context requires. — U.S. Listing and Reorganization Galaxy held a special meeting of shareholders on May 9, 2025 wherein shareholders voted in favor of the reorganization and domestication of Galaxy as a Delaware incorporated entity. As of May 13, 2025, the Company and GDH LP reorganized and domesticated to the United States. The Company intends to list on Nasdaq on May 16, 2025. Galaxy transitioned to reporting its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). — Financial Highlights Net loss of $295 million for the first quarter 2025, or a loss of $0.86 per diluted share, driven primarily by the depreciation of digital asset prices in the quarter and a one-time $57 million impairment charge and disposal costs related to the wind-down of mining operations at our Helios data center campus. Equity capital of $1.9 billion as of March 31, 2025, and holdings of approximately $1.1 billion in cash and net stablecoins. 1 As of May 12, 2025, second-quarter-to-date operating income was estimated between $160 million and $170 million, and as of the same date, equity capital was estimated at $2.2 billion. 2 — Corporate Updates Helios Data Center Campus: Subsequent to the end of the first quarter 2025, CoreWeave exercised its first option to access additional critical IT load for its artificial intelligence ("AI") and high-performance computing ("HPC") operations at Galaxy's Helios data center campus. Under the Phase II option agreement, Galaxy would deliver approximately 260 megawatts ("MW") of incremental critical IT load to CoreWeave, with deliveries expected to commence in 2027. This additional capacity would be structured on terms similar to those outlined in the previously announced 15-year, 133 MW lease agreement from March 28, 2025. With this expansion, CoreWeave's total committed capacity for AI and HPC operations at Helios would increase to approximately 393 MW of critical IT load. Note: Throughout this document, totals may not sum due to rounding. Percentage change calculations are based on unrounded results. (1) Includes $509M in Cash and Cash Equivalents, and $565M in Net Stablecoins. Net stablecoins includes all stablecoins categorized as assets, less all stablecoins categorized as liabilities on the statement of financial position. Net stablecoins is a non-GAAP measure. Refer to the reconciliation on page 10. (2) This preliminary, unaudited quarter-to-date financial information is as of May 12, 2025. Financial results exclude completion of the full quarterly valuation process of our investment portfolio and the performance of other quarter-end close procedures. This data is subject to change as management completes its quarterly close procedures. (3) Refer to page 5 of this release for a breakout of our balance sheet net digital assets exposure. (4) Abbreviation for "Not Meaningful". (5) Calculated as equity capital divided by outstanding Class A and Class B Units. — Segment Consolidation & GAAP Adoption In the first quarter 2025, Galaxy streamlined its financial reporting by consolidating its activities into two operating business segments, Digital Assets and Data Centers, along with a Treasury & Corporate segment. As part of Galaxy's successful domestication as a Delaware incorporated entity, effective May 13, 2025, we have transitioned from reporting our financial results under International Financial Reporting Standards ("IFRS") to reporting in accordance with U.S. GAAP. — Galaxy Financial Snapshot Gross revenues & gains/(losses) from operations was $12.9 billion for the first quarter, offset by $13.1 billion of gross transaction expenses. This reflects a quarter-over-quarter ("QoQ") decline of 21% driven by downward pressure of digital asset prices leading to softer client trading activity. GAAP requires the grossing up of purchases and sales of digital assets with clients and exchanges. Digital Assets generated adjusted gross profit 1 of $64.8 million in Q1 2025, a 36% decline QoQ, primarily due to the depreciation of digital asset prices, which led to reduced client trading activity and lower assets on platform. Despite these headwinds, the segment maintained positive operating income of $3.5 million for the quarter. Galaxy expects to begin generating Data Centers leasing revenue in the first half of 2026, when it starts delivering critical IT capacity to CoreWeave under Phase I of its lease agreement. Treasury & Corporate generated an operating loss of $392 million in Q1 2025, driven primarily by the depreciation of digital asset prices in the first quarter as well as a one-time $57 million impairment charge and disposal costs related to the wind-down of mining operations at Helios. GAAP Revenues and Transaction Expenses Q1 2025 Q4 2024 Q/Q % Change Gross Revenues & Gains/(Losses) from Operations $12,856M $16,352M (21) % Gross Transaction Expenses $13,059M $15,892M (18) % Segment Reporting Breakdown Q1 2025 Q4 2024 Q/Q % Change Digital Assets Adjusted Gross Profit 1 $64.8M $101M (36) % Global Markets 1,2 $43.2M $77.6M (44) % Asset Management & Infrastructure Solutions 1,3 $21.6M $23.4M (8) % Digital Assets Operating Income $3.5M $29.4M (88) % Data Centers Leasing Revenue - - - Data Centers Operating Income ($2.9M) ($2.1M) (35) % Treasury & Corporate Adjusted Gross Profit 1,4 ($268M) $360M N.M. Treasury & Corporate Operating Income ($392M) $102M N.M. Net Income ($295M) $118M N.M. (1) Adjusted Gross Profit is a non-GAAP financial measure. Please see Non-GAAP Financial Measures below for further information. (2) Includes Trading and Investment Banking; net of transaction expenses. (3) Includes Asset Management, Staking and GK8; net of transaction expenses. (4) Includes Bitcoin Mining; Treasury activities are net of transaction expenses. — Digital Assets Global Markets Global Markets adjusted gross profit 1 totaled $43.2 million in Q1 2025, declining 44% QoQ due to lower digital asset prices, which led to reduced market activity and client trading volumes. Digital asset trading volumes declined 20% QoQ. Average loan book size increased modestly to $874 million in Q1, driven by ongoing demand from new and existing clients for margin lending and increased interest in structured solutions. In Q1 2025, the Investment Banking team served as a co-manager on CoreWeave's Initial Public Offering. Global Markets Adjusted Gross Profit: Gross Profit from Galaxy trading activity, net of transaction expenses and fee revenue associated with the Investment Banking business. Loan Book Size (Average): Average market value of all open loans, excluding uncommitted credit facilities. Asset Management & Infrastructure Solutions Asset Management & Infrastructure Solutions generated $21.6 million of adjusted gross profit 1 in 1Q 2025, declining 8% from the prior quarter. The decrease was primarily driven by lower digital asset prices and reduced on-chain activity during the quarter. Galaxy ended the first quarter with approximately $7 billion in combined assets under management and assets under stake, down 29% QoQ as a result of declining digital asset prices. Galaxy continues to integrate its staking infrastructure with new digital asset custodians, who collectively manage hundreds of billions in assets, giving their clients access to our staking services through their custodial accounts. Assets on Platform: All figures are unaudited. Assets on Platform is inclusive of sub-advised funds, committed capital closed-end vehicles, seed investments by affiliates, affiliated and unaffiliated separately managed accounts, engagements to unwind portfolios, fund of fund products and the total notional value of assets bonded to Galaxy validators, based on prices as of the end of the specified period. This includes certain Galaxy balance sheet assets, Galaxy affiliate assets, and third-party assets. Changes in Assets on Platform are generally the result of performance, contributions, withdrawals, liquidations, and opportunistic mandate wins. Assets on Platform for committed capital closed-end vehicles that have completed their investment period is reported as Net Asset Value ("NAV") plus unfunded commitment. Assets on Platform for quarterly close vehicles is reported as of the most recent quarter available for the applicable period. Assets on Platform for affiliated separately managed accounts is reported as NAV as of the most recently available estimate for the applicable period. Total Assets on Platform for Q4 2024 was updated from what was previously reported as quarterly close vehicles are reported as of the most recent information available for the applicable period. Note: $26M of staked venture positions are captured within both Assets Under Stake and Alternatives. (1) Adjusted Gross Profit is a non-GAAP financial measure. Please see Non-GAAP Financial Measures below for further information. — Data Centers High-Performance Computing Helios Data Center Campus: Subsequent to the end of the first quarter 2025, CoreWeave exercised its first option to access additional critical IT load for its artificial intelligence ("AI") and high-performance compute ("HPC") operations at Galaxy's Helios data center campus. Under the Phase II option agreement, Galaxy would deliver approximately 260 MW of incremental critical IT load to CoreWeave, with deliveries expected to commence in 2027. This additional capacity would be structured on terms similar to those outlined in the previously announced 15-year, 133 MW lease agreement from March 28, 2025. With this expansion, CoreWeave's total committed capacity for AI and HPC operations at Helios would increase to approximately 393 MW of critical IT load, marking a major milestone in scaling Galaxy's AI and HPC infrastructure platform. (1) Approximately 200 MW of gross power capacity for Phase I and approximately 400 MW of gross capacity in Phase II. (2) Will be completed in phases, with the full capacity for Phase I expected to be delivered by the end of the first half of 2026 and Phase II in 2027. (3) Based on committed contractual terms, internal estimates for capital expenditures, and assumes full capacity utilization of the 393MW of critical IT load. Upon energization of the full 393 MW, we expect to generate more than $700 million in revenue in the first 12 months. Anticipated Average Annual Revenue over the 15-year term includes the impact of annual escalators. Actual results may differ materially due to business, economic and competitive uncertainties and contingencies, which are beyond the control of the Company and its management and subject to change. — Balance Sheet Net Digital Asset Exposure By Token The Company's balance sheet maintains exposure to bitcoin, ether, and other digital assets through a diversified allocation across spot positions, ETFs, private equity holdings and other non-current investments. Balance sheet net digital asset exposure as of March 31, 2025, is as follows: (1) Includes associated tokens such as wBTC. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, and Mt. Gox Investment Fund LP. (2) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds. (3) Includes $19.6 million net SOL and $21.7 million net TIA digital assets. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $53.9 million SOL and $17.4 million of AVAX) and Ripple Labs Inc. Note: Galaxy also held digital asset derivative positions not reflected in this chart. Earnings Conference Call An investor conference call will be held today, May 13, 2025, at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: The conference call can also be accessed by investors in the United States or Canada by dialing 1-800-445-7795, or 1-785-424-1699 (outside the U.S. and Canada). A replay of the webcast will be available and can be accessed in the same manner as the live webcast on the Company's Investor Relations website. Through June 13, 2025, the recording will also be available by dialing 1-844-512-2921, or 1-412-317-6671 (outside the U.S. and Canada) and using the passcode: 11158991. About Galaxy Digital Inc. (TSX: GLXY) Galaxy (TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we invest in and operate cutting-edge data center infrastructure to power AI and high-performance computing, meeting the growing demand for scalable energy and compute solutions in the U.S. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East and Asia. Additional information about Galaxy's businesses and products is available on Disclaimer The TSX has not approved or disapproved of the information contained herein. The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy. CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS This press release and the accompanying conference call may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and "forward-looking information" under Canadian securities laws (collectively, "forward-looking statements"). Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about Galaxy's intended Nasdaq listing, Galaxy's business plans and goals, including with respect to the lease with CoreWeave, and the parties, perspectives and expectations, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) the inability to meet and maintain listing standards following our expected listing on Nasdaq; (2) costs related to AI/HPC plans, the transactions, operations and strategy; (3) changes in applicable laws or regulations; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (5) changes or events that impact the cryptocurrency and AI/HPC industry, including potential regulation, that are out of our control; (6) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (7) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (8) the possibility that there is a disruption or change in power dynamics impacting our results or current or future load capacity; (9) any delay or failure to consummate the business mandates or achieve its pipeline goals (10) technological challenges, cyber incidents or exploits; (11) risks related to retrofitting our existing facility from mining to AI and HPC infrastructure, including the timing of construction and its impact on lease revenue; (12) any inability or difficulty in obtaining financing for the AI and HPC financing on acceptable terms or at all; (13) changes to the AI and HPC infrastructure needs and their impact on future plans at the Helios campus; (14) risks associated with the leasing business, including those associated with counterparties; and (15) those other risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 13, 2025 and available on Galaxy's profile at (our "Form 10-Q"). Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, financing and construction terms and conditions, a decline in the digital asset market or general economic conditions; the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of the stated addressable market; the failure or delay in the adoption of digital assets and the blockchain ecosystem; a delay or failure in developing infrastructure for our business or our businesses achieving our mandates; delays or other challenges in the mining and AI/HPC infrastructure business related to hosting, power or construction; any challenges faced with respect to exploits, considerations with respect to liquidity and capital planning; a delay or failure in our anticipated Nasdaq listing; and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. This press release contains certain pre-released second quarter 2025 financial information (the "pre-released financial information"). The pre-released financial information contained in this press release is preliminary and represents the most current information available to management. The Company's actual consolidated financial statements for such period may result in material changes to the prereleased financial information summarized in this press release (including by any one financial metric, or all of the financial metrics) as a result of the completion of normal quarter accounting procedures and adjustments or due to other risks contained in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Although the Company believes the expectations reflected in this press release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations. Non-GAAP Financial Measure In addition to our results determined in accordance with GAAP, this press release and the accompanying tables contain adjusted gross profit, which is a non-GAAP financial measure. Adjusted gross profit is unaudited, presented as supplemental disclosure and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Please see page 10 for a reconciliation of adjusted gross profit to revenues and gains / (losses) from operations (including for our individual segments) during the three months ended March 31, 2025 and three months ended December 31, 2024. It is important to note that the particular items we exclude from, or include in, adjusted gross profit may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise. Adjusted gross profit is a helpful measure to our management and investors because it eliminates the impact of the directly attributable transaction expenses. As such, it provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects, allows for greater transparency with respect to important metrics used by our management for financial, risk management and operational decision-making and provides an additional tool for investors to use to understand and compare our operating results across accounting periods. March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 509,438 $ 462,103 Digital intangible assets (includes $1,671.3 and $1,997.4 million measured at fair value) 2,123,860 2,547,581 Digital financial assets 514,479 359,665 Digital assets loan receivable, net of allowance 280,095 579,530 Investments 545,754 834,812 Assets posted as collateral 506,634 277,147 Derivative assets 128,353 207,653 Accounts receivable (includes $4.5 and $4.2 million due from related parties) 28,864 55,279 Digital assets receivable 17,674 53,608 Loans receivable 407,966 476,620 Prepaid expenses and other assets 29,884 26,892 Total current assets 5,093,001 5,880,890 Non-current assets Digital assets receivable 1,996 7,112 Investments (includes $669.6 and $745.5 million measured at fair value) 736,060 808,694 Digital intangible assets 15,030 20,979 Loans receivable, non-current 56,800 — Property and equipment, net 262,216 237,038 Other non-current assets 113,052 107,105 Goodwill 58,037 58,037 Total non-current assets 1,243,191 1,238,965 Total assets $ 6,336,192 $ 7,119,855 Liabilities and Equity Current liabilities Derivative liabilities 89,702 165,858 Accounts payable and accrued liabilities (includes $111.0 and $96.9 million due to related parties) 270,468 281,531 Digital assets borrowed 1,760,455 1,497,609 Payable to customers 19,288 19,520 Loans payable 345,249 510,718 Collateral payable 943,513 1,399,655 Other current liabilities 73,358 13,034 Total current liabilities 3,502,033 3,887,925 Non-current liabilities Notes payable 763,798 845,186 Digital assets borrowed - non-current 6,603 — Other non-current liabilities 162,114 192,392 Total non-current liabilities 932,515 1,037,578 Total liabilities 4,434,548 4,925,503 Commitments and contingencies (Note 17) Equity Unit holders' capital 1,901,644 2,194,352 Total equity 1,901,644 2,194,352 Total liabilities and equity $ 6,336,192 $ 7,119,855 Galaxy Digital Holdings LP's Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Revenues 12,976,206 9,335,372 Net gain / (loss) on digital assets (18,223) 346,393 Net gain / (loss) on investments (133,167) 63,018 Net gain / (loss) on derivatives trading 31,059 83,640 Revenues and gains / (losses) from operations 12,855,875 9,828,423 Operating expenses: Transaction expenses 13,059,439 9,313,616 Compensation and benefits 56,953 61,071 General and administrative 86,575 19,685 Technology 9,887 6,492 Professional fees 20,772 13,629 Notes interest expense 14,071 6,976 Total operating expenses 13,247,697 9,421,469 Other income / (expense): Unrealized gain / (loss) on notes payable - derivative 89,606 (9,713) Other income / (expense), net 672 213 Total other income / (expense) 90,278 (9,500) Net income / (loss) before taxes $ (301,544) $ 397,454 Income taxes expense / (benefit) (6,112) 9,327 Net income / (loss) $ (295,432) $ 388,127 Net income/ (loss) attributed to: Unit holders of the Company $ (295,432) $ 388,127 Net income per unit: Basic $ (0.86) $ 1.19 Diluted $ (0.86) $ 1.10 Weighted average units outstanding used to compute net income per unit: Basic 345,233,801 325,159,324 Diluted 345,233,801 352,999,694 Reconciliation of Revenue and Gains/(Losses) from Operations The following table reconciles Revenues and gains / (losses) from operations to adjusted gross profit for the three months ended March 31, 2025 and December 31, 2024: Reconciliation of Cash & Net Stablecoins The following table reconciles the Company's cash and net stablecoin position to the reported financial statements as of March 31, 2025 and December 31, 2024: All figures are in U.S. Dollars unless otherwise noted.
