Latest news with #VLN
Business Insider
18-07-2025
- Business
- Business Insider
22nd Century reports expanded state authorization progress for product sales
22nd Century (XXII) Group announced a 'significant' increase in state authorizations for the sale of its portfolio of both proprietary and contract manufactured products. The increase in state authorizations enables new sales activity and new product launches for 22nd Century's proprietary VLN reduced nicotine content cigarettes, a growing list of partner VLN brands, an expanded range of Smoker Friendly products and a growing number of Pinnacle products sold at a top 5 C-Store chain in the U.S. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Business Upturn
17-07-2025
- Business
- Business Upturn
VLN Commercial Launches Confirm Viability of the FDA's Proposed Reduced Nicotine Mandate
Multiple Tobacco Brands Partnering with 22nd Century to Expand Availability and Awareness of VLN Based Reduced Nicotine Content Products Manufactured in the USA, VLN Products from 22nd Century Provide Clinically Proven Solution to Reduce the Rate and Harms of Smoking MOCKSVILLE, N.C., July 16, 2025 (GLOBE NEWSWIRE) — 22nd Century Group, Inc. (Nasdaq: XXII), the only tobacco products company that has for 27 years led and continues to lead the fight against the harms of smoking driven by nicotine addiction is creating a new pathway to reducing the rate of smoking and related health harms through increasing adoption of its VLN® reduced nicotine content cigarette products by additional brands. Our products incorporate proprietary and patented tobacco having 95% less nicotine than tobacco used in highly addictive conventional cigarettes. Decades of peer reviewed studies have shown that the level of nicotine content in 22nd Century's products can reduce both the rate of smoking and the health harms of smoking. The recently announced partner VLN® initiatives, such as Smoker Friendly VLN®, Pinnacle VLN®, reflect a growing commitment by tobacco brands to accelerate compliance with the U.S. Food and Drug Administration's proposed new Tobacco Product Standard for Nicotine Yield of Cigarettes and Certain Other Combusted Tobacco Products, which is intended to curb the harms of smoking. 'The FDA recognizes that nicotine is a highly addictive substance and that to achieve true tobacco harm reduction, nicotine consumption must be addressed. The FDA's new product standard proposed in January is one of many factors that are driving early commercial interest in our VLN reduced nicotine content tobacco products. We are excited to see our customer's brands adding VLN cigarettes to their lineup. This will enhance market availability of VLN cigarettes and offer customers a Tobacco Harm Reduction product that will give the smoker a choice to control their nicotine consumption,' said Larry Firestone, Chief Executive Officer of 22nd Century Group. 'These commercial launches and our readiness once we receive state approval to scale availability to all 50 states for the entire U.S. cigarette market continues to demonstrate that there need not be any commercial barriers to adopting this FDA policy, which could be the most impactful health decision in a generation.' Formally announced in January 2025, the proposed standard sets a maximum nicotine content of 0.7 mg of nicotine per gram of tobacco in cigarettes and certain other combusted tobacco products, taking effect two years from final approval. VLN® based products from 22nd Century are the only combustible cigarette products authorized by the FDA to meet the standard, at an average of 0.5 mg per gram, and the only product that offers consumers a choice about their nicotine consumption. On implementation of the FDA proposal, people who are addicted and wish to alter their dependency or even quit could have the ability to do so more easily, significantly reducing the morbidity and mortality caused by smoking. Based on FDA's population health model, by the year 2100, in the United States, approximately 48 million youth and young adults who would have otherwise initiated smoking would not start as a result of the proposed product standard. 22nd Century is monitoring comment submissions under the proposed rule and intends to make its own submission before the comment period closes. This activity follows the 2018 rule making process, which ultimately incorporated many of the suggestions, independent clinical research studies and feasibility data from 22nd Century's comment letter at that time, including: A proposed standard of not more than 0.7mg/g of nicotine content, based on 22nd Century's recommendation of an average of 0.5mg/g, The fact that our patented low nicotine content tobacco leaf contained in our VLN Products that already meets the standard can be readily sourced in enough quantity to meet demand for reduced nicotine content cigarette products, and The fact the reduced nicotine content tobacco is an effective way to reduce the rate and harms of smoking, as documented by dozens of peer reviewed and published independent clinical studies using research cigarettes manufactured by 22nd Century The FDA's January 15, 2025 press release announcing the rule includes the following statement from the former FDA Commissioner Robert M. Califf, M.D.: 'Today's proposal envisions a future where it would be less likely for young people to use cigarettes and more individuals who currently smoke could quit or switch to less harmful products. This action, if finalized, could save many lives and dramatically reduce the burden of severe illness and disability, while also saving huge amounts of money. I hope we can all agree that significantly reducing the leading cause of preventable death and disease in the U.S. is an admirable goal we should all work toward.' About 22nd Century Group, Inc. 22nd Century Group is the pioneering nicotine harm reduction company in the tobacco industry enabling smokers to take control of their nicotine consumption. We created our flagship product, the VLN® cigarette, to give traditional cigarette smokers an authentic and familiar alternative that helps them take control of their nicotine consumption . VLN® cigarettes have 95% less nicotine than the traditional cigarette and have been proven to allow consumers to greatly reduce their nicotine consumption. Instead of offering new ways of delivering nicotine to addicted smokers, we offer smokers the option to take control of their nicotine consumption and make informed and more productive choices, including the choice to avoid addictive levels of nicotine altogether. Our proprietary reduced nicotine tobacco blends are made possible by comprehensive and patented technologies and tobacco plants that regulate nicotine biosynthesis activities in the tobacco plant, resulting in full flavor and high yield with 95% less nicotine. Our extensive patent portfolio has been developed to ensure we have the only low nicotine combustible cigarette in the United States and critical international markets. VLN® is a registered trademark of 22nd Century Limited LLC. Learn more at on X (formerly Twitter), on LinkedIn, and on YouTube. Learn more about VLN® at Cautionary Note Regarding Forward-Looking Statements Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as 'anticipate,' 'believe,' 'consider,' 'continue,' 'could,' 'estimate,' 'expect,' 'explore,' 'foresee,' 'goal,' 'guidance,' 'intend,' 'likely,' 'may,' 'plan,' 'potential,' 'predict,' 'preliminary,' 'probable,' 'project,' 'promising,' 'seek,' 'should,' 'will,' 'would,' and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our cost reduction initiatives, (ii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, (iii) our financial and operating performance and (iv) our expectations for our business interruption insurance claim. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in 'Risk Factors' in the Company's Annual Report on Form 10-K filed on March 20, 2025, and in the Company's Quarterly Reports filed on May 13, 2025. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law. Investor Relations & Media ContactMatt KrepsInvestor Relations22nd Century Group [email protected] 214-597-8200
Yahoo
13-07-2025
- Business
- Yahoo
Velan Inc. Reports Solid First Quarter Results for Fiscal 2026
18.6% sales growth and higher gross profit margin Net income from continuing operations of $17.8 million, consolidated net income including closing of the transactions of $77.2 million Strong financial position with available cash on hand of $59.1 million, highest in five years Significant increase in quarterly dividend payment to CA$0.10 per common share MONTREAL, July 10, 2025 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) ('Velan' or the 'Company'), a world-leading manufacturer of industrial valves, announced today financial results for its first quarter ended May 31, 2025. All amounts are expressed in U.S. dollars unless indicated otherwise. FIRST-QUARTER HIGHLIGHTS FROM CONTINUING OPERATIONS IFRS MEASURES INCLUDING SIGNIFICANT TRANSACTIONS (see below) Sales of $72.2 million, up $11.3 million or 18.6% compared to the same period last year. Solid increase in gross profit to $20.6 million or 28.6% of sales, from $16.8 million or 27.6% of sales last year. Net income1 of $17.8 million, or $0.83 per share, versus a net loss of $2.2 million last year. Strong financial position with cash and cash equivalents of $59.1 million as at May 31, 2025, versus $34.9 million at the beginning of the fiscal year. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES Backlog2 of $286.1 million, up 4.1% from $274.9 million at the end of the previous quarter. Bookings2 of $78.2 million, versus $83.0 million last year, representing a current book-to-bill ratio of 1.08. Adjusted net income2 of $0.1 million, versus adjusted net income of $0.2 million last year Adjusted EBITDA2 of $4.0 million, compared to $2.8 million last year, reflecting higher gross profit. 'Velan delivered a solid performance in the first quarter, achieving sales growth from continuing operations of 18.6% and gross profit margin improvement,' said James A. Mannebach, Chairman of the Board and CEO of Velan. 'Booking activity remained robust with another sequential improvement in new orders leading to a 4.1% increase in our backlog at the end of the quarter. Our maintenance, repair and overhaul (MRO) activities generated strong bookings, many of which were quickly converted to sales during the reporting period. Over the longer term, Velan is well-positioned to benefit from rising momentum in its key markets, while our strong financial position allows us to invest in the future, including strategic acquisitions, to broaden our reach and sustain profitable growth.' 'We closed the first quarter with cash and cash equivalents of $59.1 million, our highest level in five years, as we completed the divestiture of asbestos-related liabilities and the sale of our French assets during the period,' added Rishi Sharma, Chief Financial and Administrative Officer of Velan. 'Based on the strength of our financial position, new $35-million credit facilities and reduced balance sheet risk, we are reassessing our capital allocation strategy to optimize the balance between supporting our growth objectives and maximizing returns to shareholders. Supporting the latter, the significant increase in our quarterly dividend payment reflects our growing backlog, greater confidence in our future performance, and our ability to sustain a strong cash flow generation.' FINANCIAL RESULTS(From continuing operations, in '000s of U.S. dollars, excluding per share amounts) Three-month periods ended May 31, 2025 May 31, 2024 Sales $72,229 $60,898 Gross profit $20,626 $16,828 Gross margin 28.6% 27.6% Restructuring expenses 5,374 2,340 Net income (loss) $17,826 ($2,187 ) per share - basic and diluted $0.83 ($0.10 ) Weighted average share outstanding ('000s) 21,586 21,586 NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES(From continuing operations, in '000s of U.S. dollars, excluding per share amounts) Three-month periods ended May 31, 2025 May 31, 2024 Adjusted EBITDA $3,976 $2,846 Adjusted net income (loss) 90 $242 per share - basic and diluted $0.00 $0.01 UPDATE ON SIGNIFICANT TRANSACTIONS On March 31, 2025, the Company announced the closing sale of its French subsidiaries Velan S.A.S. and Segault S.A.S. for a total consideration of $208.2 million (€192.5 million) and net consideration of $183.1 million. Based on the net book value at the closing of the transaction and the related costs, a gain of $95.8 million was recorded in the first quarter of fiscal year 2026. The sale also triggered the recognition of a cumulative translation adjustment of $12.5 million. These amounts were recorded as part of the results from discontinued operations. Concurrently with the sale of its French subsidiaries, the Company entered into an agreement to sell its current and future exposure to Asbestos-related litigation in the United States. Part of the proceeds received from the sale of the French assets was used on April 3, 2025, to pay an amount of $143.0 million for this settlement. BACKLOG AND BOOKINGS BACKLOG As at ('000s of U.S. dollars) May 31, 2025 February 28, 2025 Backlog $286,088 $274,877 for delivery within the next 12 months $241,326 $225,662 BOOKINGS Three-month periods ended ('000s of U.S. dollars, excluding ratios) May 31, 2025 May 31, 2024 Bookings $78,234 $82,969 Book-to-bill ratio 1.08 1.36 As at May 31, 2025, the backlog from continuing operations stood at $286.1 million, up 4.1%, from $274.9 million as at February 28, 2025. Currency movements had a $7.1 million positive effect on the value of the backlog during the quarter mainly due to the strengthening of the euro versus the U.S. dollar. Excluding currency movements, the increase reflects bookings exceeding shipments in the first quarter of fiscal 2026. As at May 31, 2025, 84.4% of the backlog, representing orders of $241.3 million, is deliverable in the next 12 months, versus 90.5% of last year's backlog. This shift in the delivery schedule is driven by the securing of an increasing number of long-term larger contracts for the nuclear and defense sectors. Bookings from continuing operations amounted to $78.2 million in the first quarter of fiscal 2026, compared to $83.0 million in the first quarter of fiscal 2025. The decrease reflects lower bookings in Germany and North America due to large orders received in last year's first quarter. These factors were partially offset by higher bookings for Chinese and Portuguese operations, as well as higher MRO bookings. Currency movements had a negligible effect on the value of bookings for the quarter. FIRST QUARTER RESULTS Sales from continuing operations for the first quarter of fiscal 2026 totaled $72.2 million, an increase of $11.3 million or 18.6% compared to $60.9 million for the same period last year. The variation mainly reflects higher shipments from Italian operations for the oil & gas industry and higher business volume at our operations in China, India and Germany. These factors were partially offset by lower sales in other international markets. North American sales held relatively steady as lower shipments to the defense industry were offset by strong MRO activity. Currency movements had a negligible effect on sales for the period. In the first quarter of fiscal 2026, gross profit from continuing operations reached $20.6 million, up from $16.8 million last year. The variation reflects a higher business volume which improved the absorption of fixed production overhead costs, a more favorable product mix this year compared to last, lower material costs and lower provisions for aging inventory. Currency movements had no effect on gross profit for the period. As a percentage of sales, gross profit was 28.6%, compared to 27.6% last year. Administration costs from continuing operations amounted to $18.3 million, or 25.4% of sales, in the first quarter of fiscal 2026, compared to $15.4 million, or 25.2% of sales, in the first quarter of fiscal 2025. The variation reflects higher sales commissions and higher professional fees. In the first quarter of fiscal 2026, the Company incurred restructuring expenses of $5.4 million, including $6.1 million in transaction-related costs, partially offset by a $0.7 million reversal of asbestos-related costs. In the first quarter of fiscal 2025, restructuring expenses consisted of asbestos-related costs of $2.3 million. Excluding restructuring expenses, adjusted EBITDA from continuing operations for the first quarter of fiscal 2026 was $4.0 million, versus $2.8 million in the first quarter of fiscal 2025. The increase is primarily attributable to higher gross profit, partially offset by higher administration costs, as explained above. Net income from continuing operations was $17.8 million, or $0.83 per share, in the first quarter of fiscal 2026, compared to a net loss of $2.2 million, or a loss of $0.10 per share, in the first quarter of fiscal 2025. The variation mainly reflects a $23.1 million non-recurring tax recovery related to the disposal of the French subsidiaries. Net income from discontinued operations was $59.4 million, versus $1.1 million last year. As a result, net income for the first quarter of fiscal 2026 totaled $77.2 million, or $3.58 per share, compared with a net loss of $1.1 million, or $0.05 per share, last year. Excluding restructuring expenses and the non-recurring tax recovery, adjusted net income from continuing operations was $0.1 million, or $0.00 per share, in the first quarter of fiscal 2026, versus adjusted net income of $0.2 million, or net income of $0.01 per share, in the first quarter of fiscal 2025. FINANCIAL POSITION As at May 31, 2025, the Company held cash and cash equivalents of $59.1 million and short-term investments of $0.4 million. Bank indebtedness stood at $3.3 million, while long-term debt, including the current portion, amounted to $16.4 million. OUTLOOK As at May 31, 2025, orders amounting to $241.3 million, representing 84.4% of a total backlog of $286.1 million, are expected to be delivered in the next 12 months. Given these orders, and despite the current uncertainty related to tariffs, the Company expects to deliver another solid performance in fiscal 2026. DIVIDEND On July 10, 2025, the Board of Directors of Velan modified the Company's dividend policy by approving a significant increase in the Company's recurring quarterly dividend payment from CA$0.03 to CA$0.10 per common share. This increase reflects Velan's growing backlog and the Board's confidence in the Company's future financial performance, including generating strong cash flow. Reflecting this increase, the Board of Directors has declared a dividend of CA$0.10 per common share payable on August 29, 2025, to shareholders of record as at August 15, 2025. CONFERENCE CALL NOTICE Financial analysts, shareholders, and other interested individuals are invited to attend the first quarter conference call to be held on Friday, July 11, 2025, at 8:00 a.m. (EDT). The toll-free call-in number is 1-800-990-4777 or by RapidConnect URL: The material that will be referenced during the conference call will be made available shortly before the event on the company's website under the Investor Relations section ( A recording of this conference call will be available for seven days at 1-289-819-1450 or 1-888-660-6345 and entering the replay code 86319. ABOUT VELAN Founded in Montreal in 1950, Velan Inc. ( is one of the world's leading manufacturers of industrial valves, with sales from continuing operations of US$295.2 million in its last reported fiscal year. The Company employs 1,284 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN. SAFE HARBOUR STATEMENT This news release may include forward-looking statements, which generally contain words like 'should', 'believe', 'anticipate', 'plan', 'may', 'will', 'expect', 'intend', 'continue' or 'estimate' or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company's filings with the appropriate securities commissions. While these statements are based on management's assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES In this press release, the Company has presented measures of performance or financial condition which are not defined under IFRS ('non-IFRS measures') and are, therefore, unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company and are reconciled with the performance measures defined under IFRS. The Company has also presented supplementary financial measures which are defined at the end of this report. Reconciliation and definition can be found below. Adjusted net income (loss), Adjusted net income (loss) per share, Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA Three-month periods ended (in thousands, except per share amounts; certain totals may not add up due to rounding) May 31, 2025$ May 31, 2024$ Reconciliation of net income (loss) from continuing operations to adjusted net income (loss) from continuing operations and adjusted net income (loss) from continuing operations per share Net income (loss) from continuing operations 17,826 (2,187 ) Adjustments for: Asbestos-related costs (754 ) 2,340 Transaction-related costs 6,128 - Other restructuring costs - 89 Non-recurring tax recovery on France transaction (23,110 ) - Adjusted net income (loss) from continuing operations 90 242 per share – basic and diluted 0.00 0.01 Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA from continuing operations Net income (loss) from continuing operations 17,826 (2,187 ) Adjustments for: Depreciation of property, plant and equipment 1,573 1,349 Amortization of intangible assets and financing costs 771 623 Finance costs – net 390 194 Income tax expense (recovery) (21,958 ) 406 EBITDA (1,398 ) 385 Adjustments for: Asbestos-related costs (754 ) 2,340 Transaction-related costs 6,128 - Other restructuring costs - 121 Adjusted EBITDA 3,976 2,846 The term 'Adjusted net income (loss)' is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for costs related to restructuring and to the proposed transaction. The terms 'Adjusted net income (loss) per share' is obtained by dividing Adjusted net income (loss) by the total amount of subordinate and multiple voting shares. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The term 'EBITDA' is defined as adjusted net income plus depreciation of property, plant & equipment, plus amortization of intangible assets, plus net finance costs, plus income tax provision. The term 'Adjusted EBITDA' is defined as EBITDA plus adjustment for costs related to restructuring and to the proposed transaction. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Definitions of supplementary financial measures The term 'Net new orders' or 'bookings' is defined as firm orders, net of cancellations, recorded by the Company during a period. Bookings are impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the Company's sales operation performance for a given period as well as well as an expectation of future sales and cash flows to be achieved on these orders. The term 'backlog' is defined as the buildup of all outstanding bookings to be delivered by the Company. The Company's backlog is impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the future operational challenges of the Company as well as an expectation of future sales and cash flows to be achieved on these orders. The term 'book-to-bill' is obtained by dividing bookings by sales. The measure provides an indication of the Company's performance and outlook for a given period. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Contact: Rishi Sharma, Chief Financial and Administrative Officer Martin Goulet, CFA Velan Inc. MBC Capital Markets Advisors Tel: (438) 817-4430 Tel.: (514) 731-0000, ext. 2291 Net income or loss refer to net income or loss attributable to Subordinate and Multiple Voting Shares2 Non-IFRS and supplementary financial measures – more information at the end of this Statements of Financial Position (in thousands of U.S. dollars) As at May 31, February 28, 2025 2025 $ $ Assets Current assets Cash and cash equivalents 59,102 34,872 Short-term investments 399 358 Accounts receivable 61,849 62,612 Income taxes recoverable 6,114 5,617 Inventories 138,079 134,969 Deposits and prepaid expenses 3,829 3,689 Derivative assets 789 24 Assets held for sale - 176,762 270,161 418,903 Non-current assets Property, plant and equipment 52,259 51,349 Intangible assets and goodwill 6,468 5,893 Deferred income taxes 5,261 25,101 Other assets 777 720 64,765 83,063 Total assets 334,926 501,966 Liabilities Current liabilities Bank indebtedness 3,318 2,508 Accounts payable and accrued liabilities 85,392 78,776 Income taxes payable 1,826 1,818 Customer deposits 16,019 22,338 Provisions 9,739 153,957 Derivative liabilities 525 480 Current portion of long-term lease liabilities 1,514 1,437 Current portion of long-term debt 1,692 2,096 Liabilities held for sale - 110,883 120,025 374,293 Non-current liabilities Long-term lease liabilities 4,697 4,727 Long-term debt 14,704 14,107 Income taxes payable - 692 Deferred income taxes 1,255 737 Customer deposits 8,984 3,876 Other liabilities 4,999 4,796 34,639 28,935 Total liabilities 154,664 403,228 Total equity 180,262 98,738 Total liabilities and equity 334,926 501,966 Consolidated Statements of Loss (in thousands of U.S. dollars, excluding number of shares and per share amounts) Three-month periods ended May 31, May 31, 2025 2024 $ $ Sales 72,229 60,898 Cost of sales 51,603 44,070 Gross profit 20,626 16,828 Administration costs 18,313 15,368 Restructuring expenses 5,374 2,340 Other expenses 732 762 Operating loss (3,793 ) (1,642 ) Financing expenses (390 ) (195 ) Loss before income taxes (4,183 ) (1,837 ) Income tax expense (recovery) (21,958 ) 406 Net Income (loss) for the period from continuing operations 17,775 (2,243 ) Results from discontinued operations 59,379 1,083 77,154 (1,160 ) Net loss attributable to: Subordinate Voting Shares and Multiple Voting Shares 77,205 (1,104 ) Non-controlling interest (51 ) (56 ) Net Income (loss) for the period 77,154 (1,160 ) Net Income (loss) per Subordinate and Multiple Voting Share Basic and diluted from continuing operations 0.83 (0.10 ) Basic and diluted from discontinued operations 2.75 0.05 Basic and diluted all operations 3.58 (0.05 ) Dividends declared per Subordinate and Multiple 0.24 - Voting Share (CA$ 0.33 ) (CA$ - ) Total weighted average number of Subordinate and Multiple Voting Shares Basic and diluted 21,585,635 21,585,635 Consolidated Statements of Comprehensive Income (loss) (in thousands of U.S. dollars) Three-month periods ended May 31, May 31, 2025 2024 $ $ Comprehensive Income (loss) Net Income (loss) for the period 77,154 (1,160 ) Other comprehensive income (loss) Foreign currency translation of foreign subsidiaries (2,872 ) (91 ) Foreign currency translation of foreign subsidiaries from discontinued operations - 337 Reclassification of foreign currency translation from discontinued operations 12,456 - Comprehensive Income (loss) 86,738 (914 ) Comprehensive Income (loss) attributable to: Subordinate Voting Shares and Multiple Voting Shares 86,789 (858 ) Non-controlling interest (51 ) (56 ) Comprehensive Income (loss) 86,738 (914 ) Other comprehensive income (loss) is composed solely of items that may be reclassified subsequently to the consolidated statement of income (loss).Consolidated Statements of Changes in Equity (in thousands of U.S. dollars, excluding number of shares) Equity attributable to the Subordinate and Multiple Voting shareholders Share capital Contributedsurplus Accumulatedothercomprehensiveloss Retainedearnings Total Non-controllinginterest Total equity Balance - February 29, 2024 72,695 6,260 (38,692 ) 141,914 182,177 1,082 183,259 Net loss for the period - - - (1,104 ) (1,104 ) (56 ) (1,160 ) Other comprehensive loss - - 246 - 246 - 246 Comprehensive Income (loss) - - 246 (1,104 ) (858 ) (56 ) (914 ) Balance - May 31, 2024 72,695 6,260 (38,446 ) 140,810 181,319 1,026 182,345 Balance - February 28, 2025 72,695 6,355 (47,141 ) 65,952 97,861 877 98,738 Net income (loss) for the period - - - 77,205 77,205 (51 ) 77,154 Other comprehensive loss - - (2,872 ) - (2,872 ) - (2,872 ) Comprehensive income (loss) - - (2,872 ) 77,205 74,333 (51 ) 74,282 Reclassification of foreign currency translation to discontinued operations - - 12,456 - 12,456 - 12,456 Dividends Multiple Voting Shares - - - (3,770 ) (3,770 ) - (3,770 ) Subordinate Voting Shares - - - (1,444 ) (1,444 ) - (1,444 ) Balance - February 28, 2025 72,695 6,355 (37,557 ) 137,943 179,436 826 180,262 Consolidated Statements of Cash Flow (in thousands of U.S. dollars) Three-month periods ended May 31, May 31, 2025 2024 $ $ Cash flows from Operating activities Net income (loss) for the period 77,154 (1,160 ) Less: results from discontinued operations (59,379 ) (1,083 ) Net Income (loss) for the period for continued operations 17,775 (2,243 ) Adjustments to reconcile net loss to cash provided by operating activities (17,173 ) (833 ) Changes in non-cash working capital items (160,620 ) 14,994 Cash provided (used) by operating activities from continued operations (160,018 ) 11,918 Investing activities Short-term investments (32 ) (441 ) Additions to property, plant and equipment (1,953 ) (1,748 ) Additions to intangible assets - (804 ) Proceeds on disposal of property, plant and equipment 953 8 Net change in other assets 35 (52 ) Cash provided (used) by investing activities from continued operations (excluding proceeds on disposal of France assets) (997 ) (3,037 ) Proceeds on disposal of France assets 183,143 - Cash provided (used) by investing activities from continued operations 182,146 (3,037 ) Financing activities Increase in long-term debt 1,064 253 Repayment of long-term debt (871 ) (3,816 ) Repayment of long-term lease liabilities (399 ) (447 ) Cash provided (used) by financing activities from continued operations (206 ) (4,010 ) Effect of exchange rate differences on cash 1,498 (533 ) Net change in cash during the period from continued operations 23,420 4,338 Net change in cash during the period from discontinued operations 9,525 (6,762 ) Net change in cash during the period 32,945 (2,424 ) Net cash – Beginning of the period 32,364 27,283 Net cash – End of the period 55,784 31,621 Net cash is composed of: Cash and cash equivalents 59,102 33,400 Bank indebtedness (3,318 ) (1,779 ) Net cash – End of the period 55,784 31,621 Supplementary information Interest paid (239 ) (201 ) Income taxes paid (1,427 ) (850 )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
28-05-2025
- Business
- Yahoo
Is There An Opportunity With Valens Semiconductor Ltd.'s (NYSE:VLN) 24% Undervaluation?
Valens Semiconductor's estimated fair value is US$2.97 based on 2 Stage Free Cash Flow to Equity Valens Semiconductor's US$2.25 share price signals that it might be 24% undervalued Analyst price target for VLN is US$4.00, which is 35% above our fair value estimate Does the May share price for Valens Semiconductor Ltd. (NYSE:VLN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) -US$20.1m -US$15.5m -US$11.2m -US$10.1m US$19.9m US$30.6m US$42.4m US$54.3m US$65.3m US$75.3m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Analyst x1 Analyst x1 Est @ 53.87% Est @ 38.59% Est @ 27.89% Est @ 20.41% Est @ 15.17% Present Value ($, Millions) Discounted @ 13% -US$17.9 -US$12.3 -US$7.8 -US$6.3 US$11.0 US$15.0 US$18.5 US$21.0 US$22.5 US$23.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$67m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 13%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$75m× (1 + 2.9%) ÷ (13%– 2.9%) = US$802m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$802m÷ ( 1 + 13%)10= US$245m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$311m. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$2.3, the company appears a touch undervalued at a 24% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Valens Semiconductor as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 13%, which is based on a levered beta of 1.496. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Valens Semiconductor Strength Currently debt free. Weakness No major weaknesses identified for VLN. Opportunity Forecast to reduce losses next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat Not expected to become profitable over the next 3 years. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Valens Semiconductor, we've put together three fundamental items you should assess: Risks: Be aware that Valens Semiconductor is showing 1 warning sign in our investment analysis , you should know about... Future Earnings: How does VLN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-03-2025
- Business
- Yahoo
22nd Century Group Inc (XXII) Q4 2024 Earnings Call Highlights: Navigating Challenges and ...
Net Revenue: $4 million in Q4 2024, down from $5.9 million in Q3 2024. Gross Margin: Loss of $1.2 million in Q4 2024, compared to $588,000 in Q3 2024. Cartons Sold: 338,000 in Q4 2024, down from 439,000 in Q3 2024. Total Operating Expenses: $2.8 million in Q4 2024, flat from Q3 2024. Total Liabilities: Reduced by over $18 million year-over-year, ending at $17.7 million. Net Working Capital: Improved to a positive $1.6 million from a deficit of $8.8 million in the prior year. Convertible Senior Secured Credit Facility: Reduced by $3.1 million in Q1 2025, remaining principal balance at $4.6 million. Cash Interest Paid: Reduced to $722,000 in 2024 from $1.3 million in the prior year. Warning! GuruFocus has detected 4 Warning Signs with XXII. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. 22nd Century Group Inc (NASDAQ:XXII) successfully repositioned itself as a pure play tobacco company by divesting its GDP hemp cannabis business, reducing operating cash burn. The company restructured its Board of Directors and executive management, leading to significant reductions in R&D and G&A expenses. 22nd Century Group Inc (NASDAQ:XXII) repaid or settled approximately $18 million in total liabilities, improving its balance sheet. The company secured a long-term commitment from key accounts like Smoker Friendly, indicating strong customer relationships. The rebranded VLN product, the only FDA-authorized modified risk tobacco product, is set for a strategic relaunch, aiming to capture market share in the reduced nicotine content category. 22nd Century Group Inc (NASDAQ:XXII) is still experiencing cash burn and operating losses, indicating ongoing financial challenges. The company had to effect two reverse stock splits in 2024 to maintain its Nasdaq listing, reflecting instability in share price and market capitalization. There is a temporary decline in revenue and gross margin due to the repricing of CMO contracts, particularly with filtered cigar customers. The company is still reliant on outside investment support to fund its operations, highlighting a lack of free cash flow. The lawsuit against Dorchester Insurance Company for $9 million in damages remains unresolved, posing potential financial uncertainty. Q: Do you see a stabilization of CMO contract terminations in the first quarter of 2025, and are you still expecting to break even in the fourth quarter of 2025? A: Yes, the reshuffling of CMO contracts was primarily a 2024 story. We are now moving into new production under the new contracts, which are more favorable economically. We still expect to break even in Q4 2025. Q: How has the restructuring impacted the company's financials and operations? A: The restructuring has significantly reduced operating cash burn and liabilities, improved the balance sheet, and positioned the company for growth in 2025. We have also divested non-core businesses and focused on our core tobacco operations. Q: What are the plans for the VLN product line in 2025? A: We plan to relaunch the VLN product with new branding and expand its presence through partner VLN brands. The focus will be on driving sales and achieving regulatory approvals in all 50 states by July 2025. Q: Can you elaborate on the company's strategy for the branded business? A: Our branded business, centered around VLN products, is considered our growth engine. We aim to capture a portion of the $12.5 billion market available to non-Big Tobacco brands by introducing VLN and partner VLN products. Q: What are the financial expectations for 2025? A: We aim to achieve profitability in 2025, with revenue growth and margin improvement driven by CMO contracts and the expanded launch of VLN products. We have also reduced our debt and improved our cash position. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
