Latest news with #adjustedEBITDA
Yahoo
03-06-2025
- Business
- Yahoo
Science Applications International Corp (SAIC) Q1 2026 Earnings Call Highlights: Navigating ...
Revenue: $1.877 billion, representing growth of approximately 2%. Adjusted EBITDA: $157 million, with an adjusted EBITDA margin of 8.4%. Adjusted Diluted Earnings Per Share: $1.92, flat year-over-year. Free Cash Flow: Negative $44 million, impacted by timing of receivables. Net Bookings: $2.4 billion, with a book-to-bill ratio of 1.3. Backlog: Approximately $20 billion. Revenue Guidance for FY26: $7.6 billion to $7.75 billion, representing organic growth of approximately 2.5% at the midpoint. Adjusted EBITDA Margin Guidance: 9.4% to 9.6% for the full year. Adjusted Diluted EPS Guidance: $9.10 to $9.30. Free Cash Flow Guidance: $510 million to $530 million. Share Repurchases: Approximately $125 million in the first quarter, targeting $350 million to $400 million annually. Warning! GuruFocus has detected 3 Warning Signs with CRLBF. Release Date: June 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SAIC reported revenue growth of approximately 2% in the first quarter, driven by the ramp-up of new and existing programs. The company secured net bookings of $2.4 billion, resulting in a book-to-bill ratio of 1.3, indicating strong business development efforts. SAIC was awarded a new cost-plus program role in Q1 as part of a $55 million contract with the Space Development Agency, highlighting its expertise in mission integration and digital engineering. The company has a robust pipeline with proposals totaling $7 billion submitted in the first quarter, and expects to reach $28 billion to $30 billion for the full year. SAIC's civilian segment, representing over 70% of total revenue, is well-supported by budget allocations, particularly in areas like the Department of Transportation and Department of Homeland Security. SAIC experienced procurement delays and award timelines moving to the right due to higher turnover rates among customers. Free cash flow was negative $44 million in the first quarter, impacted by the timing of receivables on two programs. Adjusted EBITDA margin was 8.4%, affected by seasonality of investments and higher costs on a fixed price program in the space business. The company faces potential challenges with the Army's budget outlook, which may be more constrained compared to other branches. SAIC's trailing 12-month book-to-bill ratio was 0.8, indicating a need for improvement to meet growth targets. Q: Can you provide an update on the current operating environment and budget priorities from the Department of Defense (DoD)? A: Toni Townes-Whitley, CEO, explained that while the operating environment has stabilized, there are still new directives from the DoD. The company has responded to audits and identified its mission-critical roles. There is significant turnover in acquisition personnel, which affects procurement processes. The DoD is focusing on lethality and mission-critical work, aligning with SAIC's strategic pivot towards enterprise mission IT solutions. Q: How competitive is the procurement environment, and how is SAIC positioned? A: Toni Townes-Whitley noted that the procurement environment is competitive, especially as SAIC focuses on mission enterprise IT. The company is selective with bids and maintains a strong submission pipeline. Prabu Natarajan, CFO, added that procurement remains best value-focused, with no significant shift towards lowest price technically acceptable (LPTA) trends. Q: What are the known headwinds for SAIC over the next 12 to 24 months? A: Toni Townes-Whitley mentioned the NASA program loss as a headwind, which will conclude in Q3. The decision to no-bid the Cloud One program also impacts revenue. However, there are no other significant recompete risks. The company is monitoring potential impacts from DoD budget priorities, particularly in the Army sector. Q: Can you discuss the cost overrun on the fixed price program in the space business? A: Toni Townes-Whitley explained that the cost overrun was due to challenges in the tech development phase of a unique fixed price program with the Space Development Agency. The company has addressed the additional costs and received option period extensions, which should improve financial performance as the program moves into the sustainment phase. Q: How does SAIC view the potential shift towards more outcomes-based and fixed price contracts? A: Toni Townes-Whitley stated that while there is discussion about outcomes-based contracts, SAIC has not seen a significant shift yet. The company is prepared for fixed price opportunities, particularly in enterprise IT, and has a track record of maintaining solid margins in such environments. SAIC views this as a potential tailwind for profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Yahoo
29-05-2025
- Business
- Yahoo
Nanalysis Scientific Corp (NSCIF) Q1 2025 Earnings Call Highlights: Navigating Revenue ...
Revenue: $10.6 million, a decrease of $570,000 or 5% from Q1 2024. Gross Margin on Product Sales: 66%, up from 47% in the prior year. Security Service Gross Margin: 6%, down from 8% in the prior year. Adjusted EBITDA: $180,000, compared to a loss of $104,000 in Q1 2024. Net Loss: $1.3 million, an improvement of $1.2 million over Q1 2024. Operating Cash Flow: $2.7 million positive. Warning! GuruFocus has detected 7 Warning Signs with NSCIF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nanalysis Scientific Corp (NSCIF) achieved a significant improvement in gross margin percentage for product sales, increasing from 47% to 66% year-over-year. The company reported a positive adjusted EBITDA of $180,000 for Q1 2025, compared to a loss of $104,000 in the same period last year. Net loss improved by $1.2 million year-over-year, attributed to better product sales margins and cost reduction measures. The company successfully launched its next-generation 60 megahertz technology, which has over twice the performance of the previous generation. Nanalysis Scientific Corp (NSCIF) negotiated a favorable renewal of its term loan, including a 12-month reduction in principal payments and company-friendly covenant testing. Consolidated revenue decreased by 5% compared to the same period in 2024, falling short of expectations. Security Service gross margin percentage declined from 8% to 6% due to higher service costs, including overtime wages. Revenue from third-party equipment sales remains a significant part of the company's revenue, indicating a reliance on selling other companies' technologies. The company experienced a softening of revenue in Q1 2025 due to macroeconomic uncertainties, particularly in the United States. Certain expected orders from major customers like the FDA and EPA were delayed, impacting revenue growth. Q: Can you speak to the labor dynamics affecting the Security Services side? Are there staffing challenges or are these one-off overtime situations? A: Randy McRae, CFO: It's a combination of factors, including overtime outlays in certain situations. Our focus has been on getting projects up and running and ensuring customer satisfaction. We are now working on improving efficiency and deploying our labor force effectively across contracts, expecting progress in the next few quarters. Q: Regarding tariffs and USMCA compliance, how are institutions' budget constraints affecting purchasing, and what does the pipeline look like given macroeconomic concerns? A: Sean Krakiwsky, CEO: Despite uncertainties, we haven't lost business, but some have stalled, like the FDA and EPA. We expect these to clear up before year-end. Our sales funnel remains strong, and we are confident in our 2025 outlook. Q: With Germany's increased defense spending, what are the implications for your detection business in Europe? A: Sean Krakiwsky, CEO: We see opportunities in Europe, particularly in France, due to increased defense spending. It's developing slowly but steadily and should be a tailwind for us in the future. Q: Any updates on the automated industrial analyzer for detecting illicit drugs? A: Sean Krakiwsky, CEO: Progress is steady across AI, database, and hardware components. We have traction with beta users, including a law enforcement customer in Germany. While I can't provide a full product launch timeline, development is progressing well. Q: How is the company managing the uncertainties stemming from the U.S. political environment? A: Sean Krakiwsky, CEO: We are managing well despite some revenue softening in Q1. We remain confident in our 2025 forecasts and expect to recover lost ground throughout the year, supported by a strong sales funnel and opportunities to grow our services business. 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
Yahoo
29-05-2025
- Business
- Yahoo
Rubicon Organics Inc (ROMJF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Net Revenue: $12.4 million, a 39% increase year over year. Adjusted EBITDA: $700,000, marking a $1.1 million improvement compared to the same period in 2024. Gross Profit: $3.8 million, a 72% improvement from Q1 of 2024. Gross Margin: Improved to 31%, up from 25% in the same quarter last year. Cash Position: Ended the quarter with $7.8 million in cash. Working Capital: $20.6 million. Credit Facilities: $10 million secured at an interest rate of 6.75%. Facility Acquisition: Agreement to acquire a new facility in Hope BC, expanding production capacity by over 40% to 15,500 kgs. Resin Vape Line: Expanded to 8 SKUs, capturing nearly 15% of the segment. Revenue Growth Drivers: Strong performance across Canada's four largest provinces and product innovation in the 1964 brand. Warning! GuruFocus has detected 1 Warning Sign with ROMJF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rubicon Organics Inc (ROMJF) reported a 39% increase in net revenue year-over-year, reaching $12.4 million in Q1 2025. The company achieved a positive adjusted EBITDA of $700,000, marking a $1.1 million improvement compared to the same period in 2024. Rubicon Organics Inc (ROMJF) received GACP certification for its Delta Facility, enabling its first international shipment to Poland. The acquisition of a new facility in Hope, BC, is expected to expand annual production capacity by over 40% to 15,500 kgs. The company's resin vape line captured nearly 15% of the segment, showing strong market acceptance and growth potential. The company experienced some share loss in the topical category due to competitors entering with lower-priced SKUs. Rubicon Organics Inc (ROMJF) anticipates significant startup operational expenses for the Hope Facility in 2025, with revenue not expected until 2026. There is a noted volatility in the capital markets, which could impact future financial strategies and growth plans. The company faces challenges in maintaining premium pricing amidst competition from lower-cost legacy markets. Gross margins showed fluctuations, with a slight decrease from Q4 2024, highlighting potential cost management challenges. Q: Can you provide more details on the 2,000 kilograms of contract-grown biomass expected this year? Is this incremental compared to last year? A: Yes, the 2,000 kilograms is entirely incremental. We did have some contract growth last year, but this is additional to that. (Margaret Brodie, CEO) Q: Once the Hope facility is operational, will you continue with contract grows, or will Hope replace them? A: We plan to continue with contract grows. We have long-term contracts with annual pricing discussions, and being a reliable partner is valuable in this market. (Margaret Brodie, CEO) Q: When do you anticipate receiving the license to start planting at the Hope facility? A: We expect to receive the license by the end of the summer, possibly by mid-July. We aim to have at least one harvest this year. (Margaret Brodie, CEO) Q: How should we think about gross margins on an annual basis, given quarterly fluctuations? A: Our production costs remain relatively flat annually. We aim for a gross margin around 35%, supported by pre-roll automation benefits. (Margaret Brodie, CEO) Q: Can you comment on the state of the premium cannabis segment and any impact of deflation on revenue growth? A: The premium segment remains stable, with some price increases since Q4 '24. We haven't experienced deflation impacting our revenue growth, as our genetics and brand strength continue to drive consumer demand. (Margaret Brodie, CEO) Q: What is your strategy for selling the new capacity from the Hope facility? A: We have strong unmet demand for larger format products and consistent high-quality products for international markets. We are confident in selling all of the new capacity. (Margaret Brodie, CEO) Q: Are you planning to expand beyond live resin vapes in your product offerings? A: Currently, we are focused on FSC resin and all-in-one vapes. We are not pursuing distillate products at this stage, as we see it as a race to the bottom on price. (Margaret Brodie, CEO) Q: What are the supply-demand dynamics in international markets, particularly for premium products? A: There is a short-term parity in mainstream supply, but premium supply remains limited. We expect demand to outpace supply as new markets develop. (Margaret Brodie, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Reservoir Media Inc (RSVR) Q4 2025 Earnings Call Highlights: Strong Fiscal Year Performance ...
Revenue (Q4): $41.4 million, a 6% increase year-over-year. Revenue (FY 2025): $158.7 million, a 10% increase year-over-year. Adjusted EBITDA (Q4): $18.2 million, a 14% increase year-over-year. Adjusted EBITDA (FY 2025): $65.7 million, an 18% increase year-over-year. Net Income (Q4): $2.7 million, compared to $2.9 million in Q4 FY 2024. Net Income (FY 2025): $7.7 million, compared to $800,000 in FY 2024. Diluted EPS (Q4): $0.04, unchanged from the prior year period. Diluted EPS (FY 2025): $0.12, compared to $0.01 in FY 2024. Music Publishing Revenue (Q4): $27.9 million, a 6% increase year-over-year. Recorded Music Revenue (Q4): $12 million, a 7% increase year-over-year. Interest Expense (Q4): $6.1 million, compared to $5.2 million in the prior year. Total Debt (FY 2025): $388.1 million, net of deferred financing costs. Liquidity (FY 2025): $79.6 million, including $21.4 million cash on hand. Warning! GuruFocus has detected 4 Warning Signs with RSVR. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Reservoir Media Inc (NASDAQ:RSVR) exceeded both guidance and expectations for fiscal 2025 with a 10% annual revenue growth and an 18% improvement in adjusted EBITDA. The company deployed over $115 million towards acquisitions and advances, including notable publishing deals with artists like Snoop Dogg and K.D. Lang. Reservoir Media Inc (NASDAQ:RSVR) expanded its international presence with the launch of PopIndia and the acquisition of Omar Kamal's catalog, highlighting growth in emerging markets. The recorded music segment showed continued growth, with a 7% increase in revenue in the fourth quarter, driven by digital revenue growth. The company achieved a top 10 US market share in the last four quarters according to Billboard's publishers quarterly, with contributions to chart-topping records by various artists. Interest expense increased to $21.9 million for the full year, up from $21.1 million last year, due to increased debt from acquisitions and higher interest rates. Net income for the fourth quarter decreased slightly to $2.7 million from $2.9 million in the same period last year. Performance revenue in the music publishing segment decreased by 13% in the fourth quarter. Physical revenue in the recorded music segment decreased by 26% due to a lighter planned release schedule. The company faces challenges in projecting future hits, which affects revenue guidance and may appear conservative. Q: Adding the India operation brings sort of the question to, are you seeing markedly better ROIs in international geographies? Or is it still pretty one-off deals that are driving sort of where you're making your investments? A: Golnar Khosrowshahi, CEO: We certainly see better opportunities along with volume in the emerging markets, and that does definitely lead to better ROIs and less competition. So we see that in India as well as in the Middle East. Q: How do you look at sort of revenue seasonality in 2026? Does it sort of get back to your regular cadence, most likely? A: Jim Heindlmeyer, CFO: We expect to get back to the second and fourth quarters potentially being slightly higher than the first and third quarters based on the timing of certain things. We're doing our best with the accruals to try and reflect revenue accurately by quarter in the quarter that it's earned. Q: Could you talk a little bit about sort of where you're hedged and what your strategy is on that in the sort of near to intermediate term? A: Jim Heindlmeyer, CFO: We're still sitting at $150 million hedged, which is where we've been for a while. As our debt has increased with ongoing M&A activity, we are constantly evaluating whether we should put on an additional hedge. We haven't seen compelling data to pull the trigger on that yet, but it's something we constantly evaluate. Q: Can you talk a little bit more about sort of how much capital you're targeting to deploy in '26? Is there any sort of expected split between the publishing side versus the recorded side? A: Golnar Khosrowshahi, CEO: We generally have to be opportunistic around deal flow. While we may have desires around how much recorded or publishing assets we want to acquire, we are at the whim of what is in front of us and what we have a high likelihood to execute on. Q: Could you elaborate on the revenue guide for 2026, considering the amount of additions you had coming into fiscal '26? A: Jim Heindlmeyer, CFO: We don't project for hits like Espresso that generated significant revenue in fiscal '25. We are conservative in our guidance and will update it as we move through the year. We have consistently outperformed in our time as a public company and look forward to continuing to do so. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Yahoo
28-05-2025
- Business
- Yahoo
Datatec Ltd (DTTLF) Full Year 2025 Earnings Call Highlights: Strong Growth in Profitability and ...
Gross Invoiced Income: Increased by $114 million to $7.74 billion. Gross Profit: Rose by $48 million, a 5.6% increase. Adjusted EBITDA: Increased by $54 million, a rise of 28%. Underlying Earnings Per Share: Increased by approximately 80%. Dividend Payout Ratio: Increased from 3:1 to 2:1, a 114% increase in total dividend paid. Net Debt: Reduced by $59 million, ending at $30 million. Recurring Gross Invoiced Income: Rose by 14% to approximately $3.5 billion. Westcon EBITDA: Increased by 25%. Logicalis Gross Margin: Increased to 30%. Logicalis Adjusted EBITDA Margin: Expanded to 8%. Logicalis LatAm Adjusted EBITDA: Grew by over 50%. Logicalis LatAm EBITDA: Increased by approximately 70%. Warning! GuruFocus has detected 12 Warning Signs with DTTLF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Datatec Ltd (DTTLF) reported a significant increase in gross invoiced income, rising by $114 million to $7.74 billion. The company achieved a substantial rise in adjusted EBITDA by 28%, reflecting improved operational efficiency. Underlying earnings per share saw an impressive increase of approximately 80% compared to the previous year. The company decided to increase its dividend payout ratio from 3:1 to 2:1, resulting in a 114% increase in total dividends paid. Strong growth in cybersecurity and networking for enterprises, driven by AI adoption, contributed to improved performance across divisions. Net finance costs increased due to higher interest rates and greater utilization of facilities. The change in accounting policy for revenue recognition, particularly in the Westcon business, led to reported revenue reductions. Hardware sales continue to decline as the company pivots towards more software and services. The Middle East and Africa regions did not experience top-line growth, unlike other regions. The restructuring in Europe and the rising valuation of the business increased the IFRS 2 charge for the employee share incentive program. Q: How is the recent rally in the share price impacting management thinking about share buybacks moving forward? A: Jens Montanana, Chief Executive Officer, stated that Datatec Ltd is continuing with its pre-defined share repurchase program but did not provide specific details or parameters. Q: Net debt reduced significantly by the end of FY25. How sustainable is this low level of debt? A: Ivan Dittrich, Chief Financial Officer, explained that while net debt reduced significantly, average utilization of facilities was higher throughout the year. With a shift towards more software and services, working capital utilization is expected to decrease, leading to a general trend of reducing overall debt. Q: Could you talk through the trend for gross invoice income through the year by division? How did you exit FY25? A: Jens Montanana noted that gross invoice income, representing top-line sales, is expected to grow at low-single digits across all divisions. However, gross profit is anticipated to grow faster due to the ongoing mix change and increase in services and software, providing leverage further down the income statement. Q: What are the main drivers behind the new definition for IFRS revenue? A: Jens Montanana highlighted that the pivot to more software, services, and recurring revenue is the main driver behind the new IFRS revenue definition, aligning with industry trends and peer reporting. Q: How is AI adoption impacting Datatec's business strategy? A: Jens Montanana emphasized that AI adoption is driving demand for enterprise and data center AI infrastructure, leading to a monumental retooling of the IT landscape. This shift is expected to boost IT infrastructure and cybersecurity, positioning Datatec well in the market. 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
