Latest news with #deleveraging
Globe and Mail
5 hours ago
- Business
- Globe and Mail
Can Agnico Eagle's Ultra-Low Leverage Fuel Bigger Growth?
Agnico Eagle Mines LimitedAEM has made further progress in strengthening its balance sheet, underscoring its commitment to financial discipline. The company remains focused on paying down debt using excess cash, with long-term debt reducing by $550 million sequentially to $595 million at the end of the second quarter. It ended the quarter with a significant net cash position of $963 million, driven by the increase in cash position and reduction of debt. AEM's long-term debt-to-capitalization is just around 2.8%, indicating lower financial risks. This sharp deleveraging, which would lead to reduced interest expenses, was driven by strong free cash flow generation. AEM has a robust liquidity position and generates substantial cash flows, which allow it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. It recorded second-quarter free cash flow of $1,305 million, more than doubling the prior-year quarter figure of $557 million. This was backed by the strength in gold prices and robust operational results. The company's aggressive deleveraging efforts have rendered enhanced financial flexibility, underpinning confidence in its capacity to fund growth and drive shareholder returns without over-reliance on external financing. Agnico Eagle's ultra-low debt profile also offers a competitive edge in addition to bolstering its ability to reinvest in exploration and development projects. Looking across the peer landscape, Kinross Gold Corporation KGC has also taken steps to improve its leverage profile, thanks to strong free cash flow generation. Kinross improved its net debt position to around $100 million at the end of the second quarter from $540 million in the prior quarter. Notably, Kinross' second-quarter free cash flow surged roughly 87% year over year and 74% from the preceding quarter. Newmont CorporationNEM is balancing deleveraging with post-Newcrest acquisition integration and asset streamlining through strategic non-core divestments. Newmont retired $372 million of debt during the second quarter. Newmont ended the second quarter with net debt of $1,422 million, down from $3,221 million at the end of the prior quarter. The Zacks Rundown for AEM Agnico Eagle's shares have rallied 72.9% year to date against the Zacks Mining – Gold industry's rise of 72.6%, driven by an upswing in gold prices. Image Source: Zacks Investment Research From a valuation standpoint, AEM is currently trading at a forward 12-month earnings multiple of 19.55, a roughly 45.2% premium to the industry average of 13.46X. It carries a Value Score of D. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AEM's 2025 and 2026 earnings implies a year-over-year rise of 64.1% and 0.8%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. Image Source: Zacks Investment Research AEM stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 days ago
- Business
- Yahoo
Occidental Unloads $950M in Assets--Debt Drop Could Signal Major Comeback
Occidental (NYSE:OXY) is quietly making big moves. Since April, the company has inked four separate deals to offload select Permian Basin assetspulling in around $950 million. That cash is earmarked for one thing: chopping down debt. Among the transactions, a $580 million sale to an affiliate of Enterprise Products Partners targets gas gathering assets in the Midland Basin. The deal is still pending regulatory green lights but could be finalized soon. The rest came from smaller, non-core and non-operated Permian assets no longer in the company's immediate plans. Warning! GuruFocus has detected 4 Warning Sign with OXY. This is all part of Occidental's broader post-CrownRock cleanup. Since July 2024, it has repaid roughly $7.5 billion in debta figure that could jump even higher once the $580 million sale closes. That brings total divestitures since the CrownRock acquisition to nearly $4 billion. The pace and scale of deleveraging suggest a company that's not just managing its balance sheetbut reshaping it entirely. CEO Vicki Hollub is playing a long game. She believes the current asset base is the strongest in Occidental's history and plans to keep trimming what's unnecessary. Her goal? A leaner, sharper portfolio that can generate sustainable value for shareholders. With core positions in the Permian, DJ Basin, and Gulf of Mexico still intact, Occidental could be positioning itself for stronger capital returns once the dust settles. 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
5 days ago
- Business
- Yahoo
Krispy Kreme Reports Second Quarter 2025 Financial Results and Announces Turnaround Plan
Turnaround plan to deleverage the balance sheet and drive sustainable, profitable growth CHARLOTTE, N.C., August 07, 2025--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme", "KKI", or the "Company") today reported financial results for the quarter ended June 29, 2025, and outlined a turnaround plan designed to deleverage the balance sheet and drive sustainable, profitable growth. Second Quarter Highlights (vs Q2 2024) Net revenue of $379.8 million Organic revenue declined 0.8% GAAP net loss of $441.1 million, including non-cash goodwill and other asset impairment charges totaling $406.9 million Adjusted EBITDA of $20.1 million Cash used for operating activities of $32.5 million Global Points of Access ("POA") increased 2,260, or 14.3%, to 18,113 which includes approximately 2,400 McDonald's doors that were closed subsequent to Q2 "Our results for the second quarter primarily reflect the impact of unsustainable operating costs relative to unit demand in the McDonald's USA partnership, which ended July 2, 2025. We are quickly removing our costs related to the McDonald's partnership and growing fresh delivery through profitable, high-volume doors with major customers. We expect to begin recouping profitability in the third quarter." "Looking ahead, we have implemented a comprehensive turnaround plan aimed at unlocking our two biggest opportunities: profitable U.S. expansion and capital-light international franchise growth. This plan is designed to reduce leverage and deliver sustainable, profitable growth through refranchising, improving returns on capital, expanding margins, and driving sustainable, profitable U.S. growth," said Krispy Kreme CEO Josh Charlesworth. Turnaround Plan The Company has implemented a comprehensive turnaround plan to deleverage the balance sheet and deliver sustainable, profitable growth through a focus on the following four components: Refranchising: Improve financial flexibility through refranchising international markets and restructuring the joint venture in the Western U.S. Driving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchisee development Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams Financial Highlights Quarter Ended $ in millions, except per share data June 29, 2025 June 30, 2024 Change GAAP: Net revenue $ 379.8 $ 438.8 (13.5 )% Operating (loss)/income $ (434.6 ) $ 6.9 nm Operating (loss)/income margin (114.4 )% 1.6 % nm Net loss $ (441.1 ) $ (4.9 ) nm Net loss attributable to KKI $ (435.3 ) $ (5.5 ) nm Diluted loss per share $ (2.55 ) $ (0.03 ) $ (2.52 ) Non-GAAP (1): Organic revenue $ 371.7 $ 374.6 (0.8 )% Adjusted net (loss)/income, diluted $ (25.3 ) $ 9.1 (377.9 )% Adjusted EBITDA $ 20.1 $ 54.7 (63.3 )% Adjusted EBITDA margin 5.3 % 12.5 % (720) bps Adjusted diluted (loss)/income per share $ (0.15 ) $ 0.05 $ (0.20 ) nm - not meaningful (1) Non-GAAP figures - please refer to "Non-GAAP Measures" and "Reconciliation of Non-GAAP Financial Measures." Key Operating Metrics Quarter Ended $ in millions June 29, 2025 June 30, 2024 Change Global Points of Access (1) 18,113 15,853 14.3 % Sales per Hub (U.S.) trailing four quarters $ 4.9 $ 5.0 (2.0 )% Sales per Hub (International) trailing four quarters $ 9.8 $ 9.9 (1.0 )% Digital Sales as a Percent of Doughnut Shop Sales 18.0 % 16.4 % 160 bps (1) Includes approximately 2,400 McDonald's doors as of June 29, 2025, which were exited in the third quarter of 2025 due to termination of the Agreement with McDonald's. Second Quarter 2025 Consolidated Results (vs Q2 2024) Krispy Kreme's results reflect the work needed to maximize U.S. expansion and wider adoption of the capital-light international franchise model. Net revenue was $379.8 million in the second quarter of 2025, a decline of approximately 13.5% or $59.0 million, primarily due to the $64.2 million reduction associated with the sale of a majority stake in Insomnia Cookies Holdings, LLC ("Insomnia Cookies") in the third quarter of fiscal 2024. The Company sold its remaining ownership stake in Insomnia Cookies during the second quarter of fiscal 2025. Organic revenue declined by $2.9 million, or approximately 0.8%, as growth in Global Points of Access and Delivered Fresh Daily ("DFD") revenues were more than offset by planned reduced discounting and expected consumer softness leading to a decline in doughnut shop transaction volume. GAAP Net Loss was $441.1 million, compared to the prior year net loss of $4.9 million, which included non-cash goodwill and other asset impairment charges totaling $406.9 million in the second quarter of fiscal 2025. GAAP diluted loss per share was $2.55, compared to a loss of $0.03 in the same quarter last year. Adjusted EBITDA declined to $20.1 million. Adjusted EBITDA Margin declined to 5.3% primarily driven by the impact of our now-ended McDonald's USA partnership, and lower transaction volumes affecting operating leverage. Adjusted Net Loss, diluted was $25.3 million for the quarter and Adjusted Diluted loss per share was $0.15. Second Quarter 2025 Segment Results (vs Q2 2024) U.S.: In the U.S. segment, net revenue declined by $59.2 million, or approximately 20.5%, primarily due to the $64.2 million reduction associated with the sale of a majority stake in Insomnia Cookies in the third quarter of fiscal 2024. Retail transaction declines related to expected consumer softness, in addition to strategic door closures, led to an organic revenue decline of $6.9 million, or approximately 3.1%. Average revenue per door per week ("APD") declined to $525, primarily driven by the impact of our now-ended McDonald's USA partnership, with Sales Per Hub of $4.9 million. U.S. Adjusted EBITDA decreased by $22.7 million, or 69.6%, primarily driven by the sale of a majority stake in Insomnia Cookies in the third quarter of fiscal 2024, the adverse impact of our now-ended McDonald's USA partnership and lower transaction volumes affecting operating leverage. International: In the International segment, organic revenue grew by $7.4 million, or approximately 5.9%, driven primarily by growth in Canada, Japan and Mexico. International net revenue grew by $7.5 million, or approximately 6.0%, with foreign currency translation impacts of $1.4 million. Points of Access declined by 3.3% due to strategic door closures in Japan and Mexico to optimize the DFD network. International segment Adjusted EBITDA declined by $3.4 million, or 15.9%, with a margin decline of 360 basis points to 13.7% as strength in Japan was offset by the ongoing turnaround in the U.K. Importantly, U.K. margin improved sequentially, and the Company looks forward to continued progress from the new leadership team in that market. Market Development: In the Market Development segment, net revenue declined by $7.3 million, or approximately 30.2%, reflecting a $3.9 million impact of franchise acquisitions. Market Development organic revenue declined by approximately 14.2%, as growth in markets such as France, Brazil, and the Middle East was more than offset by timing of product and equipment sales to franchisees. Market Development Adjusted EBITDA decreased by $3.9 million, or 30.5%, with margin of 52.9%, down 20 basis points. Balance Sheet and Capital Expenditures During the first half of 2025, the Company invested $54.1 million, or 7.2% of net revenue, in capital expenditures, primarily in the U.S. to support previously committed initiatives aimed at bringing doughnuts closer to our consumers through nationwide expansion. This includes a new production hub that will be the first Hot Light Theater Shop in Minneapolis, MN opening later this year. Aside from this strategic location, the Company has since reduced investment in new capacity in favor of leveraging existing excess capacity for growth. During the second quarter of 2025, the Company also amended its existing credit agreement to establish incremental term loan commitments in an aggregate principal amount of $125.0 million. The Company used the incremental capacity primarily to pay down its revolving credit facility. The amendment carries identical terms as the existing credit agreement regarding maturity date and interest rates. As of June 29, 2025, the Company has total available liquidity of $243.8 million, which includes $21.3 million of cash and cash equivalents as well as undrawn committed capacity of $222.5 million under its credit facilities. The Company was in compliance with all financial covenants as of June 29, 2025. Capital Allocation As previously announced, the Company halted the quarterly cash dividend to holders of the Company's common stock. In the second quarter of 2025 the Company also sold its remaining ownership stake in Insomnia Cookies, with aggregate cash proceeds of $75 million used to reduce debt. The Company is in active discussions to restructure its well-established joint venture with the WKS Restaurant Group ("WKS") in the Western U.S., and expects to reduce its ownership stake. As previously announced, the Company has initiated the process to refranchise certain markets including Australia and New Zealand, Japan, Mexico, and the U.K. and Ireland. These efforts will provide the Company with greater financial flexibility, enabling debt paydown and focus on profitable, high return growth. McDonald's USA Partnership On June 24, 2025, the Company announced that, after careful consideration, Krispy Kreme and McDonald's USA jointly decided to end their partnership and terminate their Business Relationship Agreement (the "Agreement"), effective July 2, 2025. The efforts to bring Krispy Kreme's operating costs in line with unit demand were unsuccessful. The Company is focused on growing fresh delivery with profitable, high-volume retail points of distribution. Goodwill and Other Asset Impairments During the second quarter of 2025, management identified impairment indicators that required a quantitative assessment of goodwill. These indicators included that during the first half of 2025, the Company experienced a decline in its stock price and market capitalization, which became significant and sustained during the second quarter. Additionally, current operating results and updates to management's internal forecasts were below previous forecasts. After completing its quantitative impairment test, management concluded that the estimated fair values of the U.S., U.K. and Ireland, and Australia and New Zealand reporting units had declined below their carrying values and management recognized a cumulative, non-cash partial goodwill impairment charge of $356.0 million (gross of income taxes) in the second quarter of 2025. Additionally, in response to management's updated forecasts and the termination of the Agreement with McDonald's USA during the second quarter of 2025, Krispy Kreme recorded long-lived asset non-cash impairment charges of $22.1 million and lease impairment and termination costs of $28.9 million. These impairment charges, along with the partial goodwill impairment, are included in Goodwill and other asset impairments in the Condensed Consolidated Statements of Operations. The Goodwill and other asset impairments do not have an impact on the Company's compliance with the financial covenants under the Company's debt arrangements. Definitions The following definitions apply to terms used throughout this press release: Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors (which includes DFD branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants ("QSR"), club memberships, and drug stores) and Cookie Bakeries (through the date of the Insomnia Cookies deconsolidation), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period. Hubs with Spokes: Reflects Hubs currently producing product for other Fresh Shops, Carts and Food Trucks, or DFD Doors, and excludes Hubs not currently producing product for other shops, Carts and Food Trucks, or DFD Doors. Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of each of the five most recent quarters. Fresh Revenues from Hubs with Spokes: Fresh Revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia cookies deconsolidation and Branded Sweet Treats exit, respectively). Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from Hubs with Spokes. Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference Call Krispy Kreme will host a public conference call and webcast at 8:30 AM Eastern Time today to discuss its results for the second quarter of 2025. To register for the conference call, please use this link. After registering, confirmation will be sent through email, including dial-in details and unique conference call codes for entry. To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at A replay of the webcast will be available on the website within 24 hours after the call. This earnings press release and related materials will also be available on the investor relations section of the Company's website. Category: Financial News Investor Relations and Media ICR for Krispy Kreme, About Krispy Kreme Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at or on one of its many social media channels, including and Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as "plan," "believe," "may," "continue," "guidance," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive," "look forward," or, in each case, the negatives of these words, comparable terminology, or similar references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which our forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from our 2024 cybersecurity incident or any other material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; changes in the cost of raw materials and other commodities, including due to import and export requirements (including tariffs), inflation, or foreign exchange rates; our ability to execute on our omni-channel business strategy; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 29, 2024, filed by us with the Securities and Exchange Commission (the "SEC") and in other filings we make from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law. Non-GAAP Measures This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBIT, Adjusted Net (Loss)/Income, Diluted, Adjusted EPS, Free Cash Flow, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub. These non-GAAP financial measures are not standardized, and it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC and not to rely on any single financial measure. See "Reconciliation of Non-GAAP Financial Measures" below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure. Krispy Kreme, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) Quarter Ended Two Quarters Ended June 29, 2025 (13 weeks) June 30, 2024 (13 weeks) June 29, 2025 (26 weeks) June 30, 2024 (26 weeks) Net revenues Product sales $ 371,377 $ 429,411 $ 737,856 $ 862,923 Royalties and other revenues 8,390 9,398 17,095 18,584 Total net revenues 379,767 438,809 754,951 881,507 Product and distribution costs 92,627 107,846 183,363 214,861 Operating expenses 210,712 212,504 409,555 417,699 Selling, general and administrative expense 62,920 64,466 122,325 136,040 Marketing expenses 12,185 12,416 22,424 24,531 Pre-opening costs 1,471 967 2,400 2,072 Goodwill and other asset impairments 406,932 201 407,094 448 Other income, net (8,311 ) (1,050 ) (7,073 ) (1,097 ) Depreciation and amortization expense 35,782 34,600 69,683 68,186 Operating (loss)/income (434,551 ) 6,859 (454,820 ) 18,767 Interest expense, net 16,696 14,452 32,892 28,188 Loss on divestiture of Insomnia Cookies 11,501 — 11,501 — Other non-operating (income)/expense, net (1,177 ) 949 (1,570 ) 1,522 Loss before income taxes (461,571 ) (8,542 ) (497,643 ) (10,943 ) Income tax (benefit)/expense (20,453 ) (3,611 ) (23,120 ) 651 Net loss (441,118 ) (4,931 ) (474,523 ) (11,594 ) Net (loss)/income attributable to noncontrolling interest (5,858 ) 560 (5,979 ) 2,431 Net loss attributable to Krispy Kreme, Inc. $ (435,260 ) $ (5,491 ) $ (468,544 ) $ (14,025 ) Net loss per share: Common stock — Basic $ (2.55 ) $ (0.03 ) $ (2.75 ) $ (0.08 ) Common stock — Diluted $ (2.55 ) $ (0.03 ) $ (2.75 ) $ (0.08 ) Weighted average shares outstanding: Basic 170,802 169,095 170,546 168,890 Diluted 170,802 169,095 170,546 168,890 Krispy Kreme, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share data) As of (Unaudited)June 29, 2025 December 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 21,264 $ 28,962 Restricted cash 559 353 Accounts receivable, net 57,252 67,722 Inventories 33,697 28,133 Taxes receivable 18,012 16,155 Prepaid expense and other current assets 23,774 31,615 Total current assets 154,558 172,940 Property and equipment, net 509,387 511,139 Goodwill, net 711,780 1,047,581 Other intangible assets, net 812,344 819,934 Operating lease right of use asset, net 418,602 409,869 Investments in unconsolidated entities 6,077 91,070 Other assets 17,726 19,497 Total assets $ 2,630,474 $ 3,072,030 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 67,603 $ 56,356 Current operating lease liabilities 46,979 46,620 Accounts payable 97,442 123,316 Accrued liabilities 110,866 124,212 Structured payables 134,721 135,668 Total current liabilities 457,611 486,172 Long-term debt, less current portion 889,442 844,547 Noncurrent operating lease liabilities 419,388 405,366 Deferred income taxes, net 99,774 130,745 Other long-term obligations and deferred credits 46,070 40,768 Total liabilities 1,912,285 1,907,598 Commitments and contingencies Shareholders' equity: Common stock, $0.01 par value; 300,000 shares authorized as of both June 29, 2025, and December 29, 2024; 170,964 and 170,060 shares issued and outstanding as of June 29, 2025, and December 29, 2024, respectively 1,710 1,701 Additional paid-in capital 1,472,845 1,466,508 Shareholder note receivable (1,785 ) (1,906 ) Accumulated other comprehensive loss, net of income tax (5,015 ) (32,128 ) Retained deficit (774,164 ) (299,638 ) Total shareholders' equity attributable to Krispy Kreme, Inc. 693,591 1,134,537 Noncontrolling interest 24,598 29,895 Total shareholders' equity 718,189 1,164,432 Total liabilities and shareholders' equity $ 2,630,474 $ 3,072,030 Krispy Kreme, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Two Quarters Ended June 29, 2025 (26 weeks) June 30, 2024 (26 weeks) CASH FLOWS (USED FOR)/PROVIDED BY OPERATING ACTIVITIES: Net loss $ (474,523 ) $ (11,594 ) Adjustments to reconcile net loss to net cash (used for)/provided by operating activities: Depreciation and amortization expense 69,683 68,186 Deferred and other income taxes (30,785 ) (5,338 ) Goodwill impairment 355,958 — Other asset impairments and lease termination charges 51,136 448 Loss/(gain) on disposal of property and equipment 403 (3 ) Loss on divestiture of Insomnia Cookies 11,501 — Gain on sale-leaseback (6,749 ) — Share-based compensation 7,237 14,634 Change in accounts and notes receivable allowances 986 327 Inventory write-off 1,495 1,038 Amortization related to settlement of interest rate swap derivatives — (5,910 ) Other 2,224 858 Change in operating assets and liabilities, excluding foreign currency translation adjustments (41,943 ) (47,121 ) Net cash (used for)/provided by operating activities (53,377 ) 15,525 CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES: Purchase of property and equipment (54,106 ) (60,735 ) Proceeds from sale-leaseback 10,882 — Purchase of equity method investment (2,140 ) (3,506 ) Net proceeds from divestiture of Insomnia Cookies 75,000 — Principal payments received from loans to franchisees 1,202 — Disbursement for loan receivable — (1,086 ) Other investing activities 99 166 Net cash provided by/(used for) investing activities 30,937 (65,161 ) CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: Proceeds from the issuance of debt 516,900 365,000 Repayment of long-term debt and lease obligations (485,894 ) (306,797 ) Payment of financing costs (825 ) — Proceeds from structured payables 198,052 190,162 Payments on structured payables (199,228 ) (190,811 ) Capital contribution by shareholders, net of loans issued — 919 Distribution to shareholders (11,934 ) (11,807 ) Payments for repurchase and retirement of common stock (787 ) (4,275 ) Distribution to noncontrolling interest (36 ) (2,146 ) Net cash provided by financing activities 16,248 40,245 Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,300 ) (115 ) Net decrease in cash, cash equivalents and restricted cash (7,492 ) (9,506 ) Cash, cash equivalents and restricted cash at beginning of period 29,315 38,614 Cash, cash equivalents and restricted cash at end of period $ 21,823 $ 29,108 Net cash (used for)/provided by operating activities $ (53,377 ) $ 15,525 Less: Purchase of property and equipment (54,106 ) (60,735 ) Free cash flow $ (107,483 ) $ (45,210 ) Krispy Kreme, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (in thousands, except per share amounts) We define "Adjusted EBITDA" as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. "Adjusted EBITDA margin" reflects Adjusted EBITDA as a percentage of net revenues. We define "Adjusted EBIT" as earnings before interest expense, net and income tax expense, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBIT is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. We define "Adjusted Net (Loss)/Income, Diluted" as net loss attributable to common shareholders, adjusted for share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. "Adjusted EPS" is Adjusted Net (Loss)/Income, Diluted converted to a per share amount. Adjusted EBITDA, Adjusted EBIT, Adjusted Net (Loss)/Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally. Quarter Ended Two Quarters Ended (in thousands) June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Net loss $ (441,118 ) $ (4,931 ) $ (474,523 ) $ (11,594 ) Interest expense, net 16,696 14,452 32,892 28,188 Income tax (benefit)/expense (20,453 ) (3,611 ) (23,120 ) 651 Share-based compensation 4,634 7,648 7,237 14,634 Employer payroll taxes related to share-based compensation 91 207 257 250 Loss on divestiture of Insomnia Cookies 11,501 — 11,501 — Goodwill impairment 355,958 — 355,958 — Other non-operating (income)/expense, net (1) (1,177 ) 949 (1,570 ) 1,522 Strategic initiatives (2) 22,867 4,187 25,220 9,008 Acquisition and integration expenses (3) (182 ) 851 (111 ) 1,099 New market penetration expenses (4) 245 572 320 1,038 Shop closure expenses, net (5) 35,723 628 35,995 767 Restructuring and severance expenses (6) 4,839 132 4,947 138 Gain on sale-leaseback (6,749 ) — (6,749 ) — Other (7) 1,454 (958 ) 6,154 (973 ) Amortization of acquisition related intangibles (8) 7,830 7,397 15,491 14,817 Adjusted EBIT $ (7,841 ) $ 27,523 $ (10,101 ) $ 59,545 Depreciation expense and amortization of right of use assets 27,952 27,203 54,192 53,369 Adjusted EBITDA $ 20,111 $ 54,726 $ 44,091 $ 112,914 Quarter Ended Two Quarters Ended (in thousands) June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Segment Adjusted EBITDA: U.S. $ 9,930 $ 32,668 $ 25,841 $ 75,284 International 18,221 21,655 33,118 42,191 Market Development 8,948 12,875 19,995 24,775 Corporate (16,988 ) (12,472 ) (34,863 ) (29,336 ) Total Adjusted EBITDA $ 20,111 $ 54,726 $ 44,091 $ 112,914 Quarter Ended Two Quarters Ended (in thousands, except per share amounts) June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Net loss $ (441,118 ) $ (4,931 ) $ (474,523 ) $ (11,594 ) Share-based compensation 4,634 7,648 7,237 14,634 Employer payroll taxes related to share-based compensation 91 207 257 250 Loss on divestiture of Insomnia Cookies 11,501 — 11,501 — Goodwill impairment 355,958 — 355,958 — Other non-operating (income)/expense, net (1) (1,177 ) 949 (1,570 ) 1,522 Strategic initiatives (2) 22,867 4,187 25,220 9,008 Acquisition and integration expenses (3) (182 ) 851 (111 ) 1,099 New market penetration expenses (4) 245 572 320 1,038 Shop closure expenses, net (5) 35,723 628 35,995 767 Restructuring and severance expenses (6) 4,839 132 4,947 138 Gain on sale-leaseback (6,749 ) — (6,749 ) — Other (7) 1,454 (958 ) 6,154 (973 ) Amortization of acquisition related intangibles (8) 7,830 7,397 15,491 14,817 Tax impact of adjustments (9) (27,081 ) (6,777 ) (20,251 ) (7,001 ) Tax specific adjustments (10) — (226 ) — (815 ) Net loss/(income) attributable to noncontrolling interest 5,858 (560 ) 5,979 (2,431 ) Adjusted net (loss)/income attributable to common shareholders - Basic $ (25,307 ) $ 9,119 $ (34,145 ) $ 20,459 Additional income attributed to noncontrolling interest due to subsidiary potential common shares — (11 ) — (30 ) Adjusted net (loss)/income attributable to common shareholders - Diluted $ (25,307 ) $ 9,108 $ (34,145 ) $ 20,429 Basic weighted average common shares outstanding 170,802 169,095 170,546 168,890 Dilutive effect of outstanding common stock options, RSUs, and PSUs — 2,397 — 2,442 Diluted weighted average common shares outstanding 170,802 171,492 170,546 171,332 Adjusted net (loss)/income per share attributable to common shareholders: Basic $ (0.15 ) $ 0.05 $ (0.20 ) $ 0.12 Diluted $ (0.15 ) $ 0.05 $ (0.20 ) $ 0.12 (1) Primarily foreign translation gains and losses in each period. The quarter and two quarters ended June 29, 2025 also consist of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024. (2) The quarter and two quarters ended June 29, 2025 consist primarily of costs associated with the U.S. national expansion, including exit costs associated with termination of the Business Relationship Agreement with McDonald's, and the evaluation of potential opportunities to refranchise certain equity markets. The quarter and two quarters ended June 30, 2024 consist primarily of costs associated with global transformation, exploring strategic alternatives for the Insomnia Cookies business, and preparing for the U.S. national expansion (including McDonald's). (3) Consists of acquisition and integration-related costs in connection with the Company's business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. (4) Consists of start-up costs associated with entry into new countries for which the Company's brands have not previously operated, including Brazil and Spain. (5) Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. (6) The quarter and two quarters ended June 29, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses. (7) The quarter and two quarters ended June 29, 2025 consist primarily of $0.9 million and $5.3 million, respectively, in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors. The quarter and two quarters ended June 30, 2024 consist primarily of a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. (8) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. (9) Tax impact of adjustments calculated applying the applicable statutory rates. The quarters and two quarters ended June 29, 2025 and June 30, 2024 also include the impact of disallowed executive compensation expense. (10) The quarter and two quarters ended June 30, 2024 consist of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, and the effect of various tax law changes on existing temporary differences. Krispy Kreme, Inc. Segment Reporting (Unaudited) (in thousands, except percentages or otherwise stated) Quarter Ended Two Quarters Ended June 29, 2025 June 30, 2024 June 29, 2025 June 30, 2024 Net revenues: U.S. $ 230,099 $ 289,304 $ 466,643 $ 585,239 International 132,755 125,269 252,390 250,019 Market Development 16,913 24,236 35,918 46,249 Total net revenues $ 379,767 $ 438,809 $ 754,951 $ 881,507 Organic revenue growth measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define "organic revenue growth" as the growth in revenues, excluding (i) acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of Insomnia Cookies, and (v) revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar. Q2 2025 Organic Revenue - QTD (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in second quarter of fiscal 2025 $ 230,099 $ 132,755 $ 16,913 $ 379,767 Total net revenues in second quarter of fiscal 2024 289,304 125,269 24,236 438,809 Total Net Revenues (Decline)/Growth (59,205 ) 7,486 (7,323 ) (59,042 ) Total Net Revenues (Decline)/Growth % -20.5 % 6.0 % -30.2 % -13.5 % Less: Impact of Insomnia Cookies divestiture (64,166 ) — — (64,166 ) Adjusted net revenues in second quarter of fiscal 2024 225,138 125,269 24,236 374,643 Adjusted net revenue growth/(decline) 4,961 7,486 (7,323 ) 5,124 Impact of acquisitions (11,877 ) (1,503 ) 3,880 (9,500 ) Impact of foreign currency translation — 1,441 — 1,441 Organic Revenue (Decline)/Growth $ (6,916 ) $ 7,424 $ (3,443 ) $ (2,935 ) Organic Revenue (Decline)/Growth % -3.1 % 5.9 % -14.2 % -0.8 % Q2 2025 Organic Revenue - YTD (in thousands, except percentages) U.S. International Market Development Total Company Total net revenues in first two quarters of fiscal 2025 $ 466,643 $ 252,390 $ 35,918 $ 754,951 Total net revenues in first two quarters of fiscal 2024 585,239 250,019 46,249 881,507 Total Net Revenues (Decline)/Growth (118,596 ) 2,371 (10,331 ) (126,556 ) Total Net Revenues (Decline)/Growth % -20.3 % 0.9 % -22.3 % -14.4 % Less: Impact of Insomnia Cookies divestiture (128,485 ) — — (128,485 ) Adjusted net revenues in first two quarters of fiscal 2024 456,754 250,019 46,249 753,022 Adjusted net revenue growth/(decline) 9,889 2,371 (10,331 ) 1,929 Impact of acquisitions (22,920 ) (2,868 ) 7,478 (18,310 ) Impact of foreign currency translation — 9,800 — 9,800 Organic Revenue (Decline)/Growth $ (13,031 ) $ 9,303 $ (2,853 ) $ (6,581 ) Organic Revenue (Decline)/Growth % -2.9 % 3.7 % -6.2 % -0.9 % Fresh Revenues from Hubs with Spokes and Sales per Hub are defined above. Trailing Four Quarters Ended Fiscal Year Ended (in thousands, unless otherwise stated) June 29, 2025 December 29, 2024 December 31, 2023 U.S.: Revenues $ 940,140 $ 1,058,736 $ 1,104,944 Non-Fresh Revenues (1) (2,877 ) (3,161 ) (9,416 ) Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) (180,139 ) (307,665 ) (399,061 ) Fresh Revenues from Hubs with Spokes 757,124 747,910 696,467 Sales per Hub (millions) 4.9 4.9 4.9 International: Fresh Revenues from Hubs with Spokes (3) $ 521,473 $ 519,102 $ 489,631 Sales per Hub (millions) (4) 9.8 9.9 9.7 (1) Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand. (2) Includes Insomnia Cookies revenues (through the date of the deconsolidation) and Fresh Revenues generated by Hubs without Spokes. (3) Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment. (4) International Sales per Hub comparative data has been restated in constant currency based on current exchange rates. Krispy Kreme, Inc. Global Points of Access (Unaudited) Global Points of Access Quarter Ended Fiscal Year Ended June 29, 2025 June 30, 2024 December 29, 2024 U.S.: Hot Light Theater Shops 239 229 237 Fresh Shops 68 70 70 Cookie Bakeries (1) — 286 — DFD Doors (2) 9,869 7,497 9,644 Total 10,176 8,082 9,951 International: Hot Light Theater Shops 50 46 49 Fresh Shops 524 502 519 Carts, Food Trucks, and Other (3) 17 18 17 DFD Doors 4,669 4,871 4,583 Total 5,260 5,437 5,168 Market Development: Hot Light Theater Shops 110 117 108 Fresh Shops 1,111 1,033 1,095 Carts, Food Trucks, and Other (3) 30 30 30 DFD Doors 1,426 1,154 1,205 Total 2,677 2,334 2,438 Total Global Points of Access (as defined) 18,113 15,853 17,557 Total Hot Light Theater Shops 399 392 394 Total Fresh Shops 1,703 1,605 1,684 Total Cookie Bakeries (1) — 286 — Total Shops 2,102 2,283 2,078 Total Carts, Food Trucks, and Other 47 48 47 Total DFD Doors (2) 15,964 13,522 15,432 Total Global Points of Access (as defined) 18,113 15,853 17,557 (1) Reflects the divestiture of Insomnia Cookies during fiscal 2024. (2) Includes approximately 2,400 McDonald's DFD Doors as of June 29, 2025, which were exited in the third quarter of fiscal 2025 due to termination of the Business Relationship Agreement with McDonald's. (3) Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports and train stations. Krispy Kreme, Inc. Global Hubs (Unaudited) Hubs Quarter Ended Fiscal Year Ended June 29, 2025 June 30, 2024 December 29, 2024 U.S.: Hot Light Theater Shops (1) 235 222 232 Doughnut Factories 6 5 6 Total 241 227 238 Hubs with Spokes 161 151 158 Hubs without Spokes 80 76 80 International: Hot Light Theater Shops (1) 41 37 40 Doughnut Factories 14 14 14 Total 55 51 54 Hubs with Spokes 55 51 54 Market Development: Hot Light Theater Shops (1) 108 115 106 Doughnut Factories 26 26 27 Total 134 141 133 Total Hubs 430 419 425 (1) Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. Krispy Kreme, Inc. Net Debt and Leverage (Unaudited) (in thousands, except leverage ratio) As of (Unaudited)June 29, 2025 December 29, 2024 Current portion of long-term debt $ 67,603 $ 56,356 Long-term debt, less current portion 889,442 844,547 Total long-term debt, including debt issuance costs 957,045 900,903 Add back: Debt issuance costs 3,574 3,322 Total long-term debt, excluding debt issuance costs 960,619 904,225 Less: Cash and cash equivalents (21,264 ) (28,962 ) Net debt $ 939,355 $ 875,263 Adjusted EBITDA - trailing four quarters 124,705 193,528 Net leverage ratio 7.5 x 4.5 x View source version on Contacts Investor Relations and Media ICR for Krispy Kreme, 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
07-07-2025
- Business
- Yahoo
Carnival Corporation & plc Announces Pricing of €1.0 Billion 4.125% Senior Unsecured Notes Offering
Proceeds from the offering of senior unsecured notes to be used to repay borrowings under the senior secured term loan facilities MIAMI, July 1, 2025 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) today announced that Carnival plc (the "Company") priced its private offering (the "Notes Offering") of €1.0 billion aggregate principal amount of 4.125% senior unsecured notes due 2031 (the "Notes"). The Company expects to use the proceeds from the Notes Offering to fully repay the borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2027 (the "2027 Term Loan Facility") and to repay a portion of the borrowings under Carnival Corporation's first-priority senior secured term loan facility maturing in 2028. In conjunction with the Company's prepayment of $450.0 million on June 27, 2025 towards the 2027 Term Loan Facility, this transaction builds on its continuing efforts to deleverage, reduce interest expense, simplify its capital structure and manage its maturity profile. The Notes Offering is expected to close on July 7, 2025, subject to customary closing conditions. The indenture that will govern the Notes will have investment grade-style covenants. The Notes will pay interest annually on July 15 of each year, beginning on July 15, 2026, at a rate of 4.125% per year. The Notes will be unsecured and will mature on July 15, 2031. The Notes will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival Corporation and initially certain of the Company's and Carnival Corporation's subsidiaries that also guarantee our first-priority secured indebtedness, certain of our other unsecured notes and our convertible notes. The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States, only to non-U.S. investors pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offering, solicitation or sale would be unlawful. About Carnival Corporation & plc Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines - AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Cautionary Note Concerning Forward-Looking Statements Certain statements in this press release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the financing transactions described herein, future results, operations, outlooks, plans, goals, reputation, cash flows and liquidity and other events which have not yet occurred. Forward-looking statements reflect management's current expectations and are subject to risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Factors that could affect our results include, among others, those discussed under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained by visiting the Investor Relations page of our website at or the SEC's website at Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. View original content: SOURCE Carnival Corporation & plc
Yahoo
30-06-2025
- Business
- Yahoo
Global Net Lease Successfully Closes Third and Final Phase of Multi-Tenant Portfolio Sale
— Sale of 12 Properties Generates Approximately $313 Million in Gross Proceeds — Portfolio Sale Completed; Accelerates Deleveraging Plan and Transforms GNL to Single-Tenant Net Lease REIT NEW YORK, June 23, 2025 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) ('GNL' or the 'Company') announced that it has completed the final phase of its multi-tenant portfolio sale to RCG Ventures, LLC on June 18, 2025, including 12 encumbered properties. This third phase generated approximately $313 million in gross proceeds1, bringing total gross proceeds from the portfolio sale to $1.8 billion2. GNL plans on using the incremental net proceeds from the third phase of the multi-tenant portfolio sale to further reduce leverage by paying down the outstanding balance on GNL's Revolving Credit Facility. The multi-tenant portfolio sale simplifies GNL's portfolio and sharpens its strategic focus by becoming a pure-play net lease owner and operator. This transition is expected to generate approximately $6.5 million in recurring annual G&A savings, along with additional cash savings from a substantial reduction in annual capital expenditures. GNL also believes the multi-tenant portfolio sale will create significant efficiencies in its operations by eliminating the complexities associated with managing multi-tenant retail properties. 'The completion of our multi-tenant portfolio sale marks the final step in our evolution into a pure-play single-tenant net lease company with streamlined operations and improved portfolio quality,' said Michael Weil, CEO of GNL. 'Divesting these multi-tenant assets has strengthened our balance sheet by accelerating our deleveraging efforts and improving liquidity. We remain focused on achieving an investment-grade credit rating, which we believe will lower our cost of capital and increase our financial stability. We are confident that this strengthened foundation will support continued growth and value creation for our shareholders.' About Global Net Lease, Inc. Global Net Lease, Inc. (NYSE: GNL) is a publicly traded internally managed real estate investment trust that focuses on acquiring and managing a global portfolio of income producing net lease assets across the U.S., and Western and Northern Europe. Additional information about GNL can be found on its website at Important Notice The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as 'may,' 'will,' 'seeks,' 'anticipates,' 'believes,' 'expects,' 'estimates,' 'projects,' 'potential,' 'predicts,' 'plans,' 'intends,' 'would,' 'could,' 'should' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company's actual results to differ materially from those presented in the Company's forward-looking statements are set forth in the 'Risk Factors' and 'Quantitative and Qualitative Disclosures about Market Risk' sections in the Company's Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Contacts:Investor RelationsEmail: investorrelations@ (332) 265-2020 Footnotes:1 Includes a $210 million mortgage that is being assumed by RCG Ventures, LLC.2 Includes $256 million and $210 million mortgages being assumed by RCG Ventures, LLC.
