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Globe and Mail
9 hours ago
- Business
- Globe and Mail
Boot Barn Holdings, Inc. Announces First Quarter Fiscal Year 2026 Financial Results
Boot Barn Holdings, Inc. (NYSE: BOOT) (the 'Company') today announced its financial results for the first fiscal quarter ended June 28, 2025. A Supplemental Financial Presentation is available at For the quarter ended June 28, 2025 compared to the quarter ended June 29, 2024: Net sales increased 19.1% over the prior-year period to $504.1 million. Same store sales increased 9.4%, with retail store same store sales increasing 9.5% and e-commerce same store sales increasing 9.3%. Net income was $53.4 million, or $1.74 per diluted share, compared to $38.9 million, or $1.26 per diluted share, in the prior-year period. The Company opened 14 new stores, bringing its total store count to 473 as of the quarter end. John Hazen, Chief Executive Officer, commented, 'We are pleased with our strong start to fiscal 2026, highlighted by high-single digit consolidated same-store sales growth and successful new store openings, which drove 19% overall revenue growth. Demand was broad-based, with strength across all major merchandise categories and geographies. At the same time, we improved gross profit 210 basis points, led by robust merchandise margin expansion which, along with solid expense control, fueled a 38% increase in earnings per diluted share. As a result of our better than expected first quarter performance and the continued strength we have seen as we moved into our second quarter, we are raising our full-year outlook while maintaining our prior guidance for the second half of the year. With our four strategic initiatives delivering consistent results and the opportunity we have to double our store count, we remain confident in our ability to continue generating value for our shareholders over the long term.' Operating Results for the First Quarter Ended June 28, 2025 Compared to the First Quarter Ended June 29, 2024 Net sales increased 19.1% to $504.1 million from $423.4 million in the prior-year period. Consolidated same store sales increased 9.4%, with retail store same store sales increasing 9.5% and e-commerce same store sales increasing 9.3%. The increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Gross profit was $197.2 million, or 39.1% of net sales, compared to $156.7 million, or 37.0% of net sales, in the prior-year period. The increase in gross profit was primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores. The 210 basis-point increase in gross profit rate was driven primarily by a 180 basis-point increase in merchandise margin rate and 30 basis points of leverage in buying, occupancy and distribution center costs. The increase in merchandise margin rate was primarily the result of better buying economies of scale, lower freight expense, and growth in exclusive brand penetration. The leverage in buying, occupancy and distribution center costs was driven by lower incentive-based compensation and lower distribution center labor costs in the current-year period partially offset by the occupancy costs of new stores. Selling, general and administrative expenses were $126.5 million, or 25.1% of net sales, compared to $106.5 million, or 25.2% of net sales, in the prior-year period. The increase in selling, general and administrative expenses compared to the prior-year period was primarily the result of higher store payroll and store-related expenses associated with operating more stores, marketing expenses, and corporate general and administrative expenses in the current-year period. Selling, general and administrative expenses as a percentage of net sales decreased by 10 basis points primarily as a result of lower incentive-based compensation in the current-year period partially offset by higher marketing expenses due to timing. Income from operations increased $20.5 million to $70.7 million, or 14.0% of net sales, compared to $50.2 million, or 11.9% of net sales, in the prior-year period, primarily due to the factors noted above. Income tax expense was $17.9 million, or a 25.1% effective tax rate, compared to $11.6 million, or a 22.9% effective tax rate, in the prior-year period. The increase in the effective tax rate was primarily due to a lower tax benefit from income tax accounting for stock-based compensation in the current-year period when compared to the prior-year period. Net income was $53.4 million, or $1.74 per diluted share, compared to $38.9 million, or $1.26 per diluted share, in the prior-year period. The increase in net income is primarily attributable to the factors noted above. The following table includes total net sales growth, same store sales ('SSS') growth/(decline) and e-commerce as a percentage of net sales for the periods indicated below. Balance Sheet Highlights as of June 28, 2025 Cash of $95 million. The Company repurchased 77,959 shares of its common stock for an aggregate purchase price of $12.5 million in the current-year period under its $200 million authorized repurchase program. Average inventory per store increased approximately 2.7% on a same-store basis compared to the quarter ended June 29, 2024. Zero drawn under the $250 million revolving credit facility. Fiscal Year 2026 Outlook The Company is providing updated guidance for the fiscal year ending March 28, 2026, which supersedes in its entirety the previous guidance issued in its fourth quarter and fiscal year 2025 earnings report on May 14, 2025. For the fiscal year ending March 28, 2026, the Company now expects: To open between 65 and 70 new stores. Total sales of $2.100 billion to $2.180 billion, representing growth of 10% to 14% over fiscal year 2025. Same store sales declines of (0.5)% to growth of 3.5%, with retail store same store sales declines of (1.0)% to growth of 3.0% and e-commerce same store sales growth of 3.5% to 8.5%. Merchandise margin between $1.048 billion and $1.096 billion, or approximately 49.9% to 50.3% of sales. Gross profit between $764 million and $812 million, or approximately 36.4% to 37.2% of sales. Selling, general and administrative expenses between $525 million and $535 million, or approximately 25.0% to 24.5% of sales. Income from operations between $239 million and $277 million, or approximately 11.4% to 12.7% of sales. Net income of $178.0 million to $205.8 million. Net income per diluted share of $5.80 to $6.70, based on 30.7 million weighted average diluted shares outstanding. Effective tax rate of 26.0% for the remaining nine months of the fiscal year. Capital expenditures between $115.0 million and $120.0 million, which is net of estimated landlord tenant allowances of $35.5 million. For the second fiscal quarter ending September 27, 2025, the Company expects: Total sales of $487 million to $495 million, representing growth of 14% to 16% over the prior-year period. Same store sales growth of 4.5% to 6.5%, with retail store same store sales growth of 4.0% to 6.0% and e-commerce same store sales growth of 8.0% to 10.0%. Merchandise margin between $245 million and $249 million, or approximately 50.3% of sales. Gross profit between $174 million and $178 million, or approximately 35.7% to 36.0% of sales. Selling, general and administrative expenses between $124 million and $125 million, or approximately 25.5% to 25.3% of sales. Income from operations between $50 million and $53 million, or approximately 10.3% to 10.7% of sales. Net income per diluted share of $1.19 to $1.27, based on 30.7 million weighted average diluted shares outstanding. Conference Call Information A conference call to discuss the financial results for the first fiscal quarter ended June 28, 2025, is scheduled for today, July 31, 2025, at 4:30 p.m. ET (1:30 p.m. PT). Investors and analysts interested in participating in the call are invited to dial (866) 652-5200. The conference call will also be available to interested parties through a live webcast at Please visit the website and select the 'Events and Presentations' link at least 15 minutes prior to the start of the call to register and download any necessary software. A Supplemental Financial Presentation is also available on the investor relations section of the Company's website. A telephone replay of the call will be available until August 29, 2025, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and entering the conference identification number: 10201689. Please note participants must enter the conference identification number in order to access the replay. About Boot Barn Boot Barn is the nation's leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. As of the date of this release, Boot Barn operates 475 stores in 49 states, in addition to an e-commerce channel The Company also operates the nation's leading pure play online western and work retailer and an e-commerce site selling to customers who live a country lifestyle. For more information, call 888-Boot-Barn or visit Forward Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements refer to the Company's current expectations and projections relating to, by way of example and without limitation, the Company's financial condition, liquidity, profitability, results of operations, margins, plans, objectives, strategies, future performance, business, and industry. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as 'anticipate', 'estimate', 'expect', 'project', 'plan', 'intend', 'believe', 'may', 'might', 'will', 'could', 'should', 'can have', 'likely', 'outlook', and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These forward-looking statements are based on assumptions that the Company's management has made in light of their industry experience and on their perceptions of historical trends, current conditions, expected future developments and other factors that they believe are appropriate under the circumstances. As you consider this press release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. These risks, uncertainties, and assumptions include, but are not limited to, the following: decreases in consumer spending due to declines in consumer confidence, local economic conditions, or changes in consumer preferences; the impact that import tariffs and other trade restrictions imposed by the U.S., China, or other countries have had, and may continue to have, on our product costs and changes to U.S. or other countries' trade policies and tariff and import/export regulations, including, without limitation, uncertainty with respect to the U.S. – China tariff deal; the Company's ability to effectively execute on its growth strategy; and the Company's failure to maintain and enhance its strong brand image, to compete effectively, to maintain good relationships with its key suppliers, and to improve and expand its exclusive product offerings. The Company discusses the foregoing risks and other risks in greater detail under the heading 'Risk factors' in the periodic reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect the Company's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. Because of these factors, the Company cautions that you should not place undue reliance on any of these forward-looking statements. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict those events or how they may affect the Company. Further, any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company does not intend to update or revise the forward-looking statements in this press release after the date of this press release. (In thousands, except per share data) (Unaudited) June 28, March 29, 2025 2025 Assets Current assets: Cash and cash equivalents $ 95,319 $ 69,770 Accounts receivable, net 8,530 10,263 Inventories 774,060 747,191 Prepaid expenses and other current assets 30,835 36,736 Total current assets 908,744 863,960 Property and equipment, net 430,391 422,079 Right-of-use assets, net 491,774 469,461 Goodwill 197,502 197,502 Intangible assets, net 58,677 58,677 Other assets 6,738 6,342 Total assets $ 2,093,826 $ 2,018,021 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 141,355 $ 134,450 Accrued expenses and other current liabilities 140,451 146,038 Short-term lease liabilities 76,848 72,861 Total current liabilities 358,654 353,349 Deferred taxes 38,584 39,317 Long-term lease liabilities 520,300 490,182 Other liabilities 4,882 4,116 Total liabilities 922,420 886,964 Stockholders' equity: Common stock, $0.0001 par value; June 28, 2025 - 100,000 shares authorized, 30,983 shares issued; March 29, 2025 - 100,000 shares authorized, 30,892 shares issued 3 3 Preferred stock, $0.0001 par value; 10,000 shares authorized, no shares issued or outstanding — — Additional paid-in capital 250,488 246,725 Retained earnings 957,376 903,968 Less: Common stock held in treasury, at cost, 405 and 298 shares at June 28, 2025 and March 29, 2025, respectively (36,461 ) (19,639 ) Total stockholders' equity 1,171,406 1,131,057 Total liabilities and stockholders' equity $ 2,093,826 $ 2,018,021 Boot Barn Holdings, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Thirteen Weeks Ended June 28, June 29, 2025 2024 Net sales $ 504,067 $ 423,386 Cost of goods sold 306,846 266,637 Gross profit 197,221 156,749 Selling, general and administrative expenses 126,501 106,527 Income from operations 70,720 50,222 Interest expense 343 351 Other income, net 911 596 Income before income taxes 71,288 50,467 Income tax expense 17,880 11,558 Net income $ 53,408 $ 38,909 Earnings per share: Basic $ 1.75 $ 1.28 Diluted $ 1.74 $ 1.26 Weighted average shares outstanding: Basic 30,596 30,433 Diluted 30,750 30,815 Boot Barn Holdings, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Thirteen Weeks Ended June 28, June 29, 2025 2024 Cash flows from operating activities Net income $ 53,408 $ 38,909 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 17,518 14,268 Stock-based compensation 3,676 5,764 Amortization of intangible assets — 12 Noncash lease expense 17,926 15,908 Amortization of debt issuance fees 27 27 Loss on disposal of assets 299 55 Deferred taxes (733 ) 78 Changes in operating assets and liabilities: Accounts receivable, net 1,751 2,059 Inventories (26,869 ) (27,988 ) Prepaid expenses and other current assets 5,874 6,909 Other assets (396 ) (251 ) Accounts payable 10,144 1,848 Accrued expenses and other current liabilities (3,618 ) (6,108 ) Other liabilities 766 231 Operating leases (5,923 ) (10,410 ) Net cash provided by operating activities $ 73,850 $ 41,311 Cash flows from investing activities Purchases of property and equipment (31,462 ) (27,066 ) Net cash used in investing activities $ (31,462 ) $ (27,066 ) Cash flows from financing activities Repayments on finance lease obligations (229 ) (211 ) Repurchases of common stock (12,502 ) — Tax withholding payments for net share settlement (4,195 ) (7,445 ) Proceeds from the exercise of stock options 87 951 Net cash used in financing activities $ (16,839 ) $ (6,705 ) Net increase in cash and cash equivalents 25,549 7,540 Cash and cash equivalents, beginning of period 69,770 75,847 Cash and cash equivalents, end of period $ 95,319 $ 83,387 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 592 $ 584 Cash paid for interest $ 312 $ 322 Supplemental disclosure of non-cash activities: Unpaid purchases of property and equipment $ 17,973 $ 23,197 Boot Barn Holdings, Inc. Store Count June 28, March 29, December 28, September 28, June 29, March 30, December 30, September 30, 2025 2025 2024 2024 2024 2024 2023 2023 Store Count (BOP) 459 438 425 411 400 382 371 361 Opened/Acquired 14 21 13 15 11 18 11 10 Closed — — — (1 ) — — — — Store Count (EOP) 473 459 438 425 411 400 382 371 Boot Barn Holdings, Inc. Selected Store Data Thirteen Weeks Ended 2025 2025 2024 2024 2024 2024 2023 2023 Selected Store Data: Same Store Sales growth/(decline) 9.4 % 6.0 % 8.6 % 4.9 % 1.4 % (5.9 )% (9.7 )% (4.8 )% Stores operating at end of period 473 459 438 425 411 400 382 371 Comparable stores open during period (1) 401 382 374 363 349 335 322 312 Total retail store selling square footage, end of period (in thousands) 5,307 5,133 4,877 4,720 4,547 4,371 4,153 4,027 Average retail store selling square footage, end of period 11,220 11,183 11,134 11,105 11,063 10,929 10,872 10,855 Average sales per comparable store (in thousands) (2) $ 1,031 $ 926 $ 1,301 $ 952 $ 980 $ 917 $ 1,256 $ 950 _____________________________________ (1) Comparable stores have been open at least 13 full fiscal months as of the end of the applicable reporting period. (2) Average sales per comparable store is calculated by dividing comparable store trailing three-month sales for the applicable period by the number of comparable stores operating during the period.
Yahoo
a day ago
- Business
- Yahoo
Connection (CNXN) Reports Second Quarter 2025 Results
SECOND QUARTER SUMMARY: Net sales: $759.7 million, up 3.2% y/y Gross profit: $137.8 million, up 0.9% y/y Gross margin: 18.1%, down 40 basis points y/y Net income: $24.8 million, down 5.2% y/y Diluted EPS: $0.97, compared to $0.99 y/y MERRIMACK, N.H., July 30, 2025--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the second quarter ended June 30, 2025. The Company also announced that its Board of Directors declared a quarterly dividend of $0.15 per share of the Company's common stock. Payment will be made on August 29, 2025, to shareholders of record on August 12, 2025. "Q2 2025 represents our fifth consecutive quarter of year-over-year net sales growth. Despite a dynamic economic environment, customers continued to invest in data center refresh initiatives and in the transition to Windows 11, which resulted in positive momentum in advanced technologies and end point devices. We remain committed to delivering outstanding value through integrated IT solutions and superior customer service," said Timothy McGrath, President and Chief Executive Officer. Second Quarter of 2025 Results: Net sales for the quarter ended June 30, 2025 increased by 3.2%, year over year. Gross profit increased by 0.9% to a record $137.8 million, compared to $136.5 million for the second quarter of 2024, while gross margin decreased 40 basis points to 18.1%, compared to the prior year quarter. Net income decreased by 5.2% to $24.8 million, or $0.97 per diluted share, compared to net income of $26.2 million, or $0.99 per diluted share, for the second quarter of 2024. Adjusted Diluted Earnings per Share1 was $0.97 for the quarter ended June 30, 2025, compared to $1.00 per share for the quarter ended June 30, 2024. Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense, severance expenses and non-routine legal settlements ("Adjusted EBITDA")1 decreased 2% to $122.5 million for the twelve months ended June 30, 2025, compared to $125.4 million for the twelve months ended June 30, 2024. ________________________________1 Adjusted Diluted Earnings per Share and Adjusted EBITDA are non-GAAP measures. See page 9 for definitions and reconciliations of these measures. Performance by Segment: Net sales for the Business Solutions segment increased by 5.4% to $293.2 million in the second quarter of 2025, compared to $278.2 million in the prior year quarter. Gross profit increased by 3.8% to $68.8 million, compared to $66.3 million in the prior year quarter. Gross margin decreased by 30 basis points to 23.5% for the second quarter of 2025. Net sales for the Public Sector Solutions segment decreased by 11.9% to $140.5 million in the second quarter of 2025, compared to $159.5 million in the prior year quarter. Gross profit decreased by 11.9% to $21.3 million, compared to $24.1 million in the prior year quarter. Gross margin remained flat year over year at 15.2%. Net sales for the Enterprise Solutions segment increased by 9.1% to $326.0 million in the second quarter of 2025, compared to $298.8 million in the prior year quarter. Gross profit increased by 3.4% to $47.6 million, compared to $46.1 million in the second quarter of 2024. Gross margin decreased by 80 basis points to 14.6% for the second quarter of 2025. Sales by Product Mix: Notebook/mobility and desktop sales increased by 6% year over year and accounted for 48% of net sales in the second quarter of 2025, compared to 47% of net sales in the second quarter of 2024. Software sales decreased by 1% year over year and accounted for 9% of net sales in the second quarter of both 2025 and 2024. Servers/storage sales increased by 12% year over year and accounted for 9% of net sales in the second quarter of both 2025 and 2024. Networking sales increased by 2% year over year and accounted for 7% of net sales in the second quarter of both 2025 and 2024. Accessories sales remained flat year over year and accounted for 10% of net sales in the second quarter of 2025, compared to 11% of net sales in the second quarter of 2024. Selling, general and administrative ("SG&A") expenses increased in the second quarter of 2025 to $106.9 million from $105.2 million in the prior year quarter. SG&A as a percentage of net sales decreased to 14.1%, compared to 14.3% in the prior year quarter. Interest income in the second quarter of 2025 was $3.2 million, compared to $4.7 million in the second quarter of 2024. Cash and cash equivalents and short-term investments were $346.1 million as of June 30, 2025, compared to $442.6 million as of December 31, 2024. During the second quarter of 2025, the Company repurchased 254,695 shares of stock at an aggregate purchase price of $15.5 million. Conference Call and Webcast Connection will host a conference call and live web cast today, July 30, 2025 at 4:30 p.m. EDT to discuss its second quarter financial results. For participants who would like to participate via telephone, please register here to receive the dial-in number along with a unique PIN number that is required to access the call. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection's website at For those unable to participate in the live call, a replay of the webcast will be available at approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company's operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Definitions for each Non-GAAP measure and a reconciliation to their most directly comparable GAAP measures are available in the tables at the end of this release. About Connection PC Connection, Inc. and its subsidiaries, dba Connection, ( NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 5,000 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at Connection–Enterprise Solutions (561.237.3300), provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team's engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle. Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at Cautionary Note Regarding Forward-Looking Statements This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and include statements concerning, among other things, our future financial results, business plans (including statements regarding new products and services we may offer and future expenditures, costs and investments), liabilities, impairment charges, competition and the expected impact of current macroeconomic conditions on our businesses and results of operations. You can generally identify forward-looking statements by words such as "believe," "expect," "intend," "plan," "estimate," "anticipate," "may," "should," "will," or similar statements or variations of such terms, although not all forward-looking statements include such terms. These statements reflect our current views and are based on assumptions as of the date of this report. Such assumptions are based upon internal estimates and other analysis of current market conditions and trends, management's expectations, plans and strategies, economic conditions and other factors. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. Such differences may result from actions taken by us, including expense reduction or strategic initiatives (including reductions in force, capital investments and new or expanded product offerings or services), the execution of our business plans (including our inventory management, cost structure and management and other personnel decisions) or other business decisions, as well as from developments beyond our control, including; macroeconomic factors facing the global economy, including disruptions in or increased volatility of the capital markets, changes in trade policy, which may include the imposition of tariffs or other trade barriers, economic sanctions and economic slowdowns or recessions, changes in tax policy, rising inflation and changing interest rates modifying our potential for investment income and the timing or reducing the level of investment our customers are willing to make in IT products; substantial competition reducing our market share; significant price competition reducing our profit margins; the loss of any of our major vendors adversely affecting the number or type of products we may offer; virtualization of information technology resources and applications, including networks, servers, applications, and data storage disrupting or altering our traditional distribution models; service interruptions at third party shippers negatively impacting our ability to deliver the products we offer to our customers; increases in shipping and postage costs reducing our margins and adversely affecting our results of operations; loss of key persons or the inability to attract, train and retain qualified personnel adversely affecting our ability to operate our business; and cyberattacks or the failure to safeguard personal information and our IT systems resulting in liability and harm to our reputation. Additional factors include those described in our Annual Report on Form 10-K for the year ended December 31, 2024, including under the captions "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," in our subsequent quarterly reports on Form 10-Q, including under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in the other subsequent filings we make with the Securities and Exchange Commission from time to time. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. You should not place undue reliance on the forward-looking statements included in this release. We assume no obligation to update any of these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated, to reflect circumstances or events that occur after the statements are made except as required by law. CONSOLIDATED SELECTED FINANCIAL INFORMATION At or for the Three Months Ended June 30, 2025 2024 % Change Operating Data: Net sales (in thousands) $ 759,693 $ 736,479 3 % Diluted earnings per share $ 0.97 $ 0.99 (2) % Gross margin 18.1 % 18.5 % Operating margin 4.1 % 4.2 % Inventory turns (1) 17 19 Days sales outstanding (2) 68 68 % of % of Product Mix: Net Sales Net Sales Notebooks/Mobility 34 % 35 % Desktops 14 12 Accessories 10 11 Displays and Sound 9 10 Software 9 9 Servers/Storage 9 9 Net/Com Products 7 7 Other Hardware/Services 8 7 Total Net Sales 100 % 100 % Stock Performance Indicators: Actual shares outstanding (in thousands) 25,396 26,332 Closing price $ 65.78 $ 64.20 Market capitalization (in thousands) $ 1,670,549 $ 1,690,514 Trailing price/earnings ratio 20.1 19.2 LTM Net Income (in thousands) $ 86,050 $ 88,691 LTM Adjusted EBITDA (3) (in thousands) $ 122,461 $ 125,416 (1) Represents the annualized cost of goods sold for the period divided by the average inventory for the prior four-month period. (2) Represents the trade receivable at the end of the period divided by average daily net sales for the same three-month period. (3) LTM Adjusted EBITDA is a non-GAAP measure defined as EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for stock-based compensation, severance expenses and non-routine legal settlements for the last twelve months. See page 9 for a reconciliation. REVENUE AND MARGIN INFORMATION For the Three Months Ended June 30, 2025 2024 Net Gross Net Gross (amounts in thousands) Sales Margin Sales Margin Enterprise Solutions $ 326,011 14.6 % $ 298,808 15.4 % Business Solutions 293,168 23.5 278,198 23.8 Public Sector Solutions 140,514 15.2 159,473 15.2 Total $ 759,693 18.1 % $ 736,479 18.5 % CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands, except per share data) 2025 2024 2025 2024 Net sales $ 759,693 $ 736,479 $ 1,460,739 $ 1,368,504 Cost of sales 621,927 599,937 1,195,662 1,113,890 Gross profit 137,766 136,542 265,077 254,614 Selling, general and administrative expenses 106,869 105,208 216,728 209,816 Severance expenses — 415 2,930 415 Income from operations 30,897 30,919 45,419 44,383 Interest income, net 3,216 4,649 7,116 9,216 Other income — — 76 — Income tax provision (9,324) (9,407) (14,341) (14,284) Net income $ 24,789 $ 26,161 $ 38,270 $ 39,315 Earnings per common share: Basic $ 0.98 $ 0.99 $ 1.49 $ 1.49 Diluted $ 0.97 $ 0.99 $ 1.48 $ 1.48 Shares used in the computation of earnings per common share: Basic 25,405 26,348 25,739 26,355 Diluted 25,520 26,520 25,860 26,522 CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, (amounts in thousands) 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 186,744 $ 178,318 Short-term investments 159,350 264,295 Accounts receivable, net 637,037 611,433 Inventories, net 133,487 95,054 Prepaid expenses and other current assets 22,449 17,750 Total current assets 1,139,067 1,166,850 Property and equipment, net 48,267 52,520 Right-of-use assets, net 2,219 3,077 Goodwill 73,602 73,602 Intangibles, net 1,599 2,209 Other assets 4,523 1,096 Total Assets $ 1,269,277 $ 1,299,354 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 303,756 $ 300,242 Accrued payroll 23,444 23,330 Accrued expenses and other liabilities 41,076 47,633 Total current liabilities 368,276 371,205 Deferred income taxes 15,031 15,091 Non-current operating lease liabilities 634 1,552 Other liabilities 516 516 Total Liabilities 384,457 388,364 Stockholders' Equity: Common stock 294 294 Additional paid-in capital 141,406 137,036 Retained earnings 868,016 837,466 Accumulated other comprehensive (loss) income (53) 174 Treasury stock, at cost (124,843) (63,980) Total Stockholders' Equity 884,820 910,990 Total Liabilities and Stockholders' Equity $ 1,269,277 $ 1,299,354 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands) 2025 2024 2025 2024 Cash Flows provided by (used in) Operating Activities: Net income $ 24,789 $ 26,161 $ 38,270 $ 39,315 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 2,866 3,273 5,965 6,539 Adjustments to credit losses reserve 663 141 1,058 410 Stock-based compensation expense 2,461 2,248 4,669 4,197 Deferred income taxes — 1,623 — 1,623 Amortization of discount on short-term investments, net (1,627) (3,269) (1,672) (5,593) Gain on sale of short-term investments — — (76) — Loss on disposal of fixed assets 4 15 20 36 Changes in assets and liabilities: Accounts receivable (33,716) (71,708) (26,662) 7,598 Inventories 18,305 (12,713) (38,433) (12,434) Prepaid expenses and other current assets (1,474) (6,019) (4,142) (5,823) Other non-current assets (1,713) 168 (1,629) 448 Accounts payable 30,326 98,299 3,368 53,172 Accrued expenses and other liabilities (14,626) 172 (6,865) 6,188 Net cash provided by (used in) operating activities 26,258 38,391 (26,129) 95,676 Cash Flows (used in) provided by Investing Activities: Purchases of short-term investments — (103,279) (52,358) (203,278) Proceeds from sale of short-term investments — — 108,763 — Maturities of short-term investments — 53,280 50,000 103,280 Purchases of property and equipment (1,620) (1,819) (3,331) (3,427) Net cash (used in) provided by investing activities (1,620) (51,818) 103,074 (103,425) Cash Flows used in Financing Activities: Proceeds from short-term borrowings — 2,211 732 10,560 Repayment of short-term borrowings — (2,211) (732) (10,560) Purchase of common stock for treasury shares (16,725) (3,427) (60,464) (3,613) Payments for excise tax on treasury purchases (36) — (36) — Dividend payments (3,810) (2,635) (7,720) (5,271) Issuance of stock under Employee Stock Purchase Plan 619 537 619 537 Payment of payroll taxes on stock-based compensation through shares withheld (399) (414) (918) (645) Net cash used in financing activities (20,351) (5,939) (68,519) (8,992) Increase (decrease) in cash and cash equivalents 4,287 (19,366) 8,426 (16,741) Cash and cash equivalents, beginning of period 182,457 147,579 178,318 144,954 Cash and cash equivalents, end of period $ 186,744 $ 128,213 $ 186,744 $ 128,213 Non-cash Investing and Financing Activities: Accrued purchases of property and equipment $ 346 $ 347 $ 346 $ 347 Accrued purchase of treasury shares $ 66 $ 211 $ 66 $ 211 Accrued excise tax on treasury purchases $ 572 $ 18 $ 572 $ 18 Supplemental Cash Flow Information: Income taxes paid $ 15,112 $ 17,311 $ 18,171 $ 17,946 Interest paid $ — $ 1 $ — $ 2 EBITDA AND ADJUSTED EBITDA A reconciliation of EBITDA and Adjusted EBITDA to Net Income is detailed below. Adjusted EBITDA is defined as EBITDA (defined as earnings before interest, taxes, depreciation and amortization) adjusted for stock-based compensation, severance expenses and non-routine legal settlements. Both EBITDA and Adjusted EBITDA are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either includes or excludes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that EBITDA and Adjusted EBITDA provide helpful information with respect to our operating performance including our ability to fund our future capital expenditures and working capital requirements. Adjusted EBITDA also provides helpful information as it is the primary measure used in certain financial covenants contained in our credit agreement. When analyzing our operating performance, investors should use EBITDA and Adjusted EBITDA in addition to, and not as alternatives for Net income or any other performance measure presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Three Months Ended June 30, LTM Ended June 30, (1) (amounts in thousands) 2025 2024 % Change 2025 2024 % Change Net income $ 24,789 $ 26,161 (5 ) % $ 86,050 $ 88,691 (3 ) % Depreciation and amortization 2,866 3,273 (12 ) 12,410 13,026 (5 ) Income tax expense 9,324 9,407 (1 ) 30,449 31,674 (4 ) Interest income (3,219 ) (4,656 ) (31 ) (16,790 ) (16,031 ) 5 Interest expense 3 7 (57 ) 165 14 1,079 EBITDA 33,763 34,192 (1 ) 112,284 117,374 (4 ) Severance expenses and other charges (2) — 415 (100 ) 2,930 459 538 Legal settlement (3) — — — (1,700 ) — 100 Stock-based compensation 2,461 2,248 9 8,947 7,583 18 Adjusted EBITDA $ 36,224 $ 36,855 (2 ) % $ 122,461 $ 125,416 (2 ) % (1) LTM: Last twelve months (2) Severance expenses in 2025 and 2024 consisted of severance and other charges related to internal restructuring activities. (3) The Company recorded $1.7 million of other income as a result of a legal settlement received. ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE A reconciliation of Adjusted Net Income to Net Income is detailed below. Adjusted Net Income is defined as Net Income plus severance expenses, net of tax plus or minus loss or income from non-routine legal settlements. A reconciliation of Adjusted Diluted Earnings per Share to Diluted Earnings per Share is detailed below. Adjusted Diluted Earnings per Share is defined as diluted earnings per share adjusted for severance expenses, net of tax. Adjusted Net Income and Adjusted Diluted Earnings Per Share are considered non-GAAP financial measures (see note above in EBITDA and Adjusted EBITDA for a description of non-GAAP financial measures). The Company believes that Adjusted Net Income and Adjusted Diluted Earnings per Share provide helpful information with respect to the Company's operating performance. When analyzing our operating performance, investors should use Adjusted Net Income and Adjusted Diluted Earnings per Share in addition to, and not as alternatives for Net income and Diluted Earnings per Share or any other performance measure presented in accordance with GAAP. Our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Three Months Ended June 30, Six Months Ended June 30, (amounts in thousands, except per share data) 2025 2024 % Change 2025 2024 % Change Net income $ 24,789 $ 26,161 (5 ) % $ 38,270 $ 39,315 (3 ) % Severance expenses (1) — 415 (100 ) 2,930 415 606 Tax benefit — (110 ) (100 ) (799 ) (111 ) 620 Adjusted Net Income 24,789 26,466 (6 ) 40,401 39,619 2 Diluted shares 25,520 26,520 25,860 26,522 Diluted Earnings per Share $ 0.97 $ 0.99 (2 ) % $ 1.48 $ 1.48 — % Adjusted Diluted Earnings per Share $ 0.97 $ 1.00 (3 ) % $ 1.56 $ 1.49 5 % (1) Severance expenses in 2025 and 2024 consisted of severance and other charges related to internal restructuring activities. View source version on Contacts Investor Relations Contact: Thomas Baker, 603.683.2505Senior Vice President, CFO, and Treasurertom@
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Vertiv Reports Strong Orders, Sales, and EPS Growth; Raises Full Year Guidance
Second quarter diluted EPS of $0.83 and adjusted diluted EPS(1) of $0.95, up 42% from second quarter 2024 Net sales up 35%, operating profit up 32% and adjusted operating profit(1) up 28%, each year-over-year Organic order growth of ~15% year-over-year and ~11% sequential improvement; trailing twelve-month (TTM) organic order growth of ~11% year-over-year Backlog strengthened to $8.5 billion, with robust orders driving a book-to-bill ratio of ~1.2x Raising full year 2025 guidance for adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow COLUMBUS, Ohio, July 30, 2025 /PRNewswire/ -- Vertiv Holdings Co (NYSE: VRT), a global leader in critical digital infrastructure, today reported financial results for its second quarter ended June 30, 2025. Vertiv delivered strong second quarter performance with net sales of $2,638 million, representing a 35% increase ($685 million) from the prior year period, driven by robust data center demand and continued market penetration. Orders momentum remained robust, with second quarter 2025 organic orders increasing approximately 15% year-over-year and 11% sequentially from first quarter 2025. Our TTM organic orders for the period ending June 30, 2025 grew approximately 11% compared to the prior year TTM period, reflecting sustained market demand. Our strong market position is evidenced by our growing backlog of $8.5 billion and a book-to-bill ratio of approximately 1.2x for the quarter. Second quarter 2025 operating profit increased $106 million to $442 million, up 32% from the prior year period, while adjusted operating profit grew $108 million to $489 million, representing a 28% increase. Adjusted operating margin was 18.5%, down 110 basis points compared to second quarter 2024, primarily reflecting ongoing tariff impacts. Compared to our prior guidance for second quarter and full year 2025, we have accelerated ER&D and growth fixed cost investments. In addition, two factors impacted our second quarter adjusted operating margin results: (1) higher than anticipated supply chain and manufacturing transition costs to mitigate tariffs and (2) operational inefficiencies and execution challenges stemming from stronger than anticipated growth acceleration. We have clear action plans in place and expect these temporary factors to be materially resolved by year end. "Vertiv's second quarter performance demonstrates the strength of our market position and our ability to execute at scale," said Giordano Albertazzi, Vertiv's Chief Executive Officer. "Our 35% sales growth and robust orders momentum reflect both strong market demand and our expanded capabilities to serve our customers' increasingly complex infrastructure needs. We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure. The announced agreement to acquire Great Lakes Data Racks & Cabinets further strengthens our position in the fast-growing data center market. As we progress on our strong growth trajectory, we are vigorously addressing some temporary margin challenges which we anticipate will be materially addressed by the end of 2025. Given our strong performance, backlog and positive outlook, we are raising our full-year adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow forecast, positioning Vertiv for even stronger performance in the quarters ahead." "What we're seeing in the data center industry today goes well beyond the next few years," added Dave Cote, Vertiv's Executive Chairman. "This is a technological transformation that we believe will drive sustained long-term growth. We plan to invest resolutely and rationally, both organically and through acquisitions, to strengthen our market leadership and capitalize on this latest significant development as the digital age progresses." Adjusted Free Cash Flow(1) and Liquidity Net cash generated by operating activities in the second quarter 2025 was $323 million and adjusted free cash flow was $277 million, each decreasing ~$59 million from second quarter 2024, primarily due to increased working capital investment to support growth and favorable timing of trade working capital elements in the second quarter last year. Higher adjusted operating profit and lower cash interest partially offset the working capital investments in the second quarter. Our adjusted free cash flow has increased 24% on a year-to-date basis. We continue to expect capital expenditures in the range of $250 - $300 million to support strong industry demand. Our financial position remains robust, with $2.5 billion in liquidity and net leverage of approximately 0.6x at the end of second quarter 2025. This strong balance sheet and cash flow generation enable us to pursue strategic growth opportunities, as demonstrated by our agreement to acquire Great Lakes Data Racks & Cabinets (the "Acquisition"), which we believe will strengthen our position in high-density white space solutions. Updated Full Year and Third Quarter 2025 Guidance The data center market continues to show robust momentum with sequential pipeline growth and substantial increases in AI-related activity driving strong demand. This momentum is reflected in our projected 2025 organic sales growth of 24%. To capitalize on these expanding opportunities, we are continuing to accelerate our growth investments, with significant ER&D investments in next-generation technologies and AI-optimized infrastructure solutions. Additionally, we are strategically expanding our global manufacturing capacity to meet strong customer demand while enhancing our ability to navigate geo-political complexities. We expect adjusted operating margins to strengthen sequentially throughout the remainder of this year. This improvement will be driven by our operational initiatives, tariff countermeasures, commercial actions, and strategic supply chain optimization efforts. Given our strong backlog and pipelines, we are raising our full-year 2025 guidance across most key metrics. We now expect organic sales growth of 24%, up from 18%, adjusted operating profit of $1,990 million, up from $1,935 million, adjusted diluted EPS of $3.80, up from $3.55 and adjusted free cash flow of $1.4 billion, up from $1.3 billion. Additionally, we are lowering our adjusted operating margin to 20.0%, down from 20.5%, given the factors described above. We anticipate meeting our long-term adjusted operating margin target of 25% by Quarter 2025 Guidance(2)(4) Net sales $2,510M - $2,590M Organic net sales growth(3) 20% - 24% Adjusted operating profit(1) $490M - $530M Adjusted operating margin(3) 19.75% - 20.25% Adjusted diluted EPS(1) $0.94 - $1.00 Full Year 2025 Guidance(2)(4) Net sales $9,925M - $10,075M Organic net sales growth(3) 23% - 25% Adjusted operating profit(1) $1,950M - $2,030M Adjusted operating margin(3) 19.7% - 20.3% Adjusted diluted EPS(1) $3.75 - $3.85 Adjusted free cash flow(3) $1,375M - $1,425M (1) This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP and non-GAAP Financial Measures." (2) For purposes of this presentation and accompanying earnings guidance information, tariff rates active on July 28, 2025, include (but are not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs (20% China; 25% Mexico / Canada; 0% USMCA); Section 232 Steel and Aluminum tariffs (50%); and Reciprocal tariffs (10% All Countries and certain exceptions for Mexico / Canada goods). Our guidance does not take into account those proposed tariffs that may become effective after July 28, 2025 as we await further clarification from relevant regulatory authorities. This tariff situation remains fluid and uncertain. Tariff costs incremental to current guidance are possible as the tariff perimeter is subject to ongoing changes. (3) This is a forward-looking non-GAAP financial measure that cannot be reconciled without unreasonable efforts for those reasons set forth under "Non-GAAP Financial Measures" of this release. (4) Guidance does not include any anticipated financial results for the Acquisition given that the transaction is still subject to closing conditions. Second Quarter 2025 Earnings Conference Call Vertiv's management team will discuss the Company's results during a conference call on Wednesday, July 30, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv's financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company's website at A slide presentation will be available before the call and will be posted to the website, also at A replay of the conference call will also be available for 30 days following the webcast. About Vertiv Holdings Co Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Category: Financial News Non-GAAP Financial Measures Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures. Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to third quarter and full-year 2025 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. See "Reconciliation of GAAP and Non-GAAP Financial Measures" in this release for Vertiv's reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures. Cautionary Note Concerning Forward-Looking Statements This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv's financial position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2025, as well as expected impacts from our pricing actions, and our guidance for third quarter and full year 2025 and statements regarding tariffs, global trade conflict and any actions we may take in response thereto. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports, including those set forth in the Vertiv 2024 Annual Report on Form 10-K filed with the SEC on February 18, 2025. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers' markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of our customer's orders or the markets; less favorable contractual terms with large customers; risks associated with governmental contracts; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; failure to properly manage supply chain, difficulties with third-party manufacturers and increases in costs of material, freight and/or labor, and changes in the costs of production; competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv's independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the U.S. and numerous foreign entities; the global scope of Vertiv's operations, especially in emerging markets; failure to benefit from future significant corporate transactions; risks associated with Vertiv's sales and operations in emerging markets including economic, political and production level risk; risks associated with future legislation and regulation of Vertiv's customers' markets both in the United States and abroad; our ability to comply with various laws and regulations including but not limited to, laws and regulations relating to data protection and data privacy; failure to properly address legal compliance issues, particularly those related to imports/exports, anti-corruption laws, and foreign operations; risks associated with foreign trade policy, including tariffs and global trade conflict and any actions we may take in response thereto; risks associated with litigation or claims against the Company, including the risk of adverse outcomes to any legal claims and proceedings; our ability to protect or enforce our proprietary rights on which our business depends; third party intellectual property infringement claims; liabilities associated with environmental, health and safety matters; failure to achieve environmental, social and governance goals; failure to realize the value of goodwill and intangible assets; exposure to fluctuations in foreign currency exchange rates; failure to remediate material weaknesses in our internal controls over financial reporting; our level of indebtedness and the ability to incur additional indebtedness; our ability to comply with the covenants and restrictions contained in our credit agreements, including restrictive covenants that restrict operational flexibility; our ability to comply with the covenants and restrictions contained in our credit agreements is not fully within our control; our ability to access funding through capital markets; resales of Vertiv securities may cause volatility in the market price of our securities; our organizational documents contain provisions that may discourage unsolicited takeover proposals; our certificate of incorporation includes a forum selection clause, which could discourage or limit stockholders' ability to make a claim against it; the ability of our subsidiaries to pay dividends; factors relating to the business, operations and financial performance of Vertiv and its subsidiaries, including: global economic weakness and uncertainty; our ability to attract, train and retain key members of our leadership team and other qualified personnel; the adequacy of our insurance coverage; fluctuations in interest rates materially affecting our financial results and increasing the risk our counterparties default in our interest rate hedges; our incurrence of significant costs and devotion of substantial management time as a result of operating as a public company; the timing and consummation of the Acquisition and the risk that the closing does not occur; expected expenses related to the Acquisition; the possible diversion of management time on issues related to the Acquisition; the ability of Vertiv to maintain relationships with customers and suppliers in connection with the Acquisition; and the ability of Vertiv to retain management and key employees of the Great Lakes companies; and other risks and uncertainties indicated in Vertiv's SEC reports or documents filed or to be filed with the SEC by Vertiv. Forward-looking statements included in this news release speak only as of the date of this news release or any earlier date specified for such statements. All subsequent written or oral forward-looking statements attributable to Vertiv or persons acting on Vertiv's behalf may be qualified in their entirety by this Cautionary Note Concerning Forward-Looking Statements. For investor inquiries, please contact:Lynne MaxeinerVice President, Global Treasury & Investor RelationsVertivE: For media inquiries, please contact:Antonia CaamañoRuder Finn for VertivE: UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) Vertiv Holdings Co (Dollars in millions except for per share data) Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024 Net salesNet sales - products $ 2,166.0$ 1,555.2$ 3,815.7$ 2,825.5 Net sales - services 472.1397.6858.4766.4 Net sales 2,638.11,952.84,674.13,591.9 Costs and expensesCost of sales - products 1,470.3963.02,582.41,809.3 Cost of sales - services 271.2248.6508.6475.0 Cost of sales 1,741.51,211.63,091.02,284.3 Operating expensesSelling, general and administrative expenses 395.6363.8741.9677.8 Amortization of intangibles 46.945.892.991.8 Restructuring costs 1.9(2.5)3.0(2.2) Foreign currency (gain) loss, net 2.30.24.93.4 Other operating expense (income) 7.5(2.1)7.3(1.8) Operating profit (loss) 442.4336.0733.1538.6 Interest expense, net 21.344.846.683.8 Loss on extinguishment of debt —1.1—1.1 Change in fair value of warrant liabilities —25.4—202.0 Income (loss) before income taxes 421.1264.7686.5251.7 Income tax expense 96.986.6197.879.5 Net income (loss) $ 324.2$ 178.1$ 488.7$ 172.2 Earnings (loss) per share:Basic $ 0.85$ 0.48$ 1.28$ 0.46 Diluted $ 0.83$ 0.46$ 1.25$ 0.44 Weighted-average shares outstanding:Basic 381,482,996374,734,093381,166,015376,934,638 Diluted 389,846,827384,488,069389,977,516387,001,428 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS Vertiv Holdings Co (Dollars in millions) June 30, 2025December 31, 2024 ASSETSCurrent assets:Cash and cash equivalents $ 1,640.8$ 1,227.6 Short-term investments 98.2— Accounts receivable, less allowances of $24.3 and $22.4, respectively 2,831.02,362.7 Inventories 1,413.31,244.4 Other current assets 318.7267.1 Total current assets 6,302.05,101.8 Property, plant and equipment, net 666.4625.1 Other assets:Goodwill 1,374.11,321.1 Other intangible assets, net 1,454.11,487.1 Deferred income taxes 291.5303.3 Right-of-use assets, net 244.9202.1 Other 73.292.0 Total other assets 3,437.83,405.6 Total assets $ 10,406.2$ 9,132.5 LIABILITIES AND EQUITYCurrent liabilities:Current portion of long-term debt $ 21.0$ 21.0 Accounts payable 1,605.11,316.4 Deferred revenue 1,257.31,063.3 Accrued expenses and other liabilities 578.5612.6 Income taxes 152.683.7 Total current liabilities 3,614.53,097.0 Long-term debt, net 2,900.52,907.2 Deferred income taxes 252.6240.3 Long-term lease liabilities 203.1171.4 Other long-term liabilities 310.1282.3 Total liabilities 7,280.86,698.2 EquityPreferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding —— Common stock, $0.0001 par value, 700,000,000 shares authorized, 381,803,828 and 380,703,974 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively —— Additional paid-in capital 2,858.22,821.4 Retained earnings 222.0(238.3) Accumulated other comprehensive (loss) income 45.2(148.8) Total equity 3,125.42,434.3 Total liabilities and equity $ 10,406.2$ 9,132.5 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Vertiv Holdings Co (Dollars in millions) Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024 Cash flows from operating activities:Net income (loss) $ 324.2$ 178.1$ 488.7$ 172.2 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:Depreciation 23.520.146.439.9 Amortization 49.848.398.597.2 Deferred income taxes (10.2)4.823.1(2.8) Amortization of debt discount and issuance costs 2.12.04.34.1 Change in fair value of warrant liabilities —25.4—202.0 Stock-based compensation 13.38.524.517.7 Changes in operating working capital (90.4)96.1(95.2)(3.6) Other 10.6(1.8)35.9(7.7) Net cash provided by (used for) operating activities 322.9381.5626.2519.0 Cash flows from investing activities:Capital expenditures (45.0)(34.1)(81.5)(69.9) Investments in capitalized software (0.9)(10.9)(3.2)(11.6) Purchase of short-term investments (98.1)—(98.1)— Net cash provided by (used for) investing activities (144.0)(45.0)(182.8)(81.5) Cash flows from financing activities:Borrowings from ABL revolving credit facility and short-term borrowings —80.0—270.0 Repayments of ABL revolving credit facility and short-term borrowings —(80.0)—(270.0) Repayment of long-term debt (5.2)(5.3)(10.5)(10.6) Dividend payment (14.2)(9.4)(28.4)(18.7) Repurchase of common stock ———(599.9) Exercise of employee stock options 11.79.213.023.6 Employee taxes paid from shares withheld (0.3)(18.1)(7.0)(21.1) Net cash provided by (used for) financing activities (8.0)(23.6)(32.9)(626.7) Effect of exchange rate changes on cash and cash equivalents 9.0(5.7)13.3(11.7) Increase (decrease) in cash, cash equivalents and restricted cash 179.9307.2423.8(200.9) Beginning cash, cash equivalents and restricted cash 1,476.1280.51,232.2788.6 Ending cash, cash equivalents and restricted cash $ 1,656.0$ 587.7$ 1,656.0$ 587.7 Changes in operating working capitalAccounts receivable $ (462.4)$ (125.0)$ (380.8)$ (115.1) Inventories (8.9)(117.6)(137.5)(224.1) Other current assets 5.60.8(23.9)(30.9) Accounts payable 183.0120.5269.5130.3 Deferred revenue 148.1154.7171.5254.7 Accrued expenses and other liabilities 36.360.1(43.3)(8.4) Income taxes 7.92.649.3(10.1) Total changes in operating working capital $ (90.4)$ 96.1$ (95.2)$ (3.6) Reconciliation of GAAP and non-GAAP Financial Measures To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Vertiv's non-GAAP financial measures include: Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles; Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales; Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate; Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software; and Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles and change in warranty liability. Regional Segment Results Three months ended June 30,Six months ended June 30,20252024ΔΔ%Organic Δ%(2)20252024ΔΔ%Organic Δ%(2) Net sales(1)AMER $ 1,602.3$ 1,121.1$ 481.242.9 %43.2 %$ 2,787.6$ 2,046.1$ 741.536.2 %36.7 % APAC 560.2409.1151.136.9 %36.8 %1,007.4741.4266.035.9 %36.6 % EMEA 475.6422.653.012.5 %7.0 %879.1804.474.79.3 %7.1 % Total $ 2,638.1$ 1,952.8$ 685.335.1 %34.0 %$ 4,674.1$ 3,591.9$ 1,082.230.1 %30.0 % Adjusted operating profit (loss)(3) AMER $ 384.6$ 285.1$ 99.534.9 %$ 644.3$ 472.9$ 171.436.2 % APAC 59.232.326.983.3 %104.962.742.267.3 % EMEA 104.2109.5(5.3)(4.8) %182.9179.83.11.7 % Corporate(4) (58.7)(45.1)(13.6)30.2 %(106.1)(85.0)(21.1)24.8 % Total $ 489.3$ 381.8$ 107.528.2 %$ 826.0$ 630.4$ 195.631.0 % Adjusted operating margins(5) AMER 24.0 %25.4 %(1.4) %23.1 %23.1 %— % APAC 10.6 %7.9 %2.7 %10.4 %8.5 %1.9 % EMEA 21.9 %25.9 %(4.0) %20.8 %22.4 %(1.6) % Vertiv 18.5 %19.6 %(1.1) %17.7 %17.6 %0.1 % (1) Segment net sales are presented excluding intercompany sales. (2) Organic basis is adjusted to exclude foreign currency exchange rate impact. (3) Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). (4) Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, Legal, and Human Resources. (5) Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. Sales by product and service offering Three months ended June 30,20252024ΔΔ% Americas:Products $ 1,320.8$ 892.1$ 428.748.1 % Services & spares 281.5229.052.522.9 %$ 1,602.3$ 1,121.1$ 481.242.9 % Asia Pacific:Products $ 424.0$ 293.1$ 130.944.7 % Services & spares 136.2116.020.217.4 %$ 560.2$ 409.1$ 151.136.9 % Europe, Middle East & Africa:Products $ 374.1$ 332.1$ 42.012.6 % Services & spares 101.590.511.012.2 %$ 475.6$ 422.6$ 53.012.5 % Total:Products $ 2,118.9$ 1,517.3$ 601.639.6 % Services & spares 519.2435.583.719.2 %$ 2,638.1$ 1,952.8$ 685.335.1 % Six months ended June 30,20252024ΔΔ% Americas:Products $ 2,279.1$ 1,608.2$ 670.941.7 % Services & spares 508.5437.970.616.1 %$ 2,787.6$ 2,046.1$ 741.536.2 % Asia Pacific:Products $ 757.8$ 517.1$ 240.746.5 % Services & spares 249.6224.325.311.3 %$ 1,007.4$ 741.4$ 266.035.9 % Europe, Middle East & Africa: Products $ 693.1$ 629.4$ 63.710.1 % Services & spares 186.0175.011.06.3 %$ 879.1$ 804.4$ 74.79.3 % Total:Products $ 3,730.0$ 2,754.7$ 975.335.4 % Services & spares 944.1837.2106.912.8 %$ 4,674.1$ 3,591.9$ 1,082.230.1 % Organic growth by product and service offering Three months ended June 30, 2025Net Sales ΔFX ΔOrganic growthOrganic Δ%(1) Americas:Products $ 428.7$ 2.4$ 431.148.3 % Services & spares 52.51.153.623.4 %$ 481.2$ 3.5$ 484.743.2 % Asia Pacific:Products $ 130.9$ (0.9)$ 130.044.4 % Services & spares 20.20.320.517.7 %$ 151.1$ (0.6)$ 150.536.8 % Europe, Middle East & Africa:Products $ 42.0$ (19.2)$ 22.86.9 % Services & spares 11.0(4.3)6.77.4 %$ 53.0$ (23.5)$ 29.57.0 % Total:Products $ 601.6$ (17.7)$ 583.938.5 % Services & spares 83.7(2.9)80.818.6 %$ 685.3$ (20.6)$ 664.734.0 % (1) Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended June 30, 2024. Six months ended June 30, 2025Net Sales ΔFX ΔOrganic growthOrganic Δ%(1) Americas:Products $ 670.9$ 6.2$ 677.142.1 % Services & spares 70.63.173.716.8 %$ 741.5$ 9.3$ 750.836.7 % Asia Pacific:Products $ 240.7$ 2.9$ 243.647.1 % Services & spares 25.32.527.812.4 %$ 266.0$ 5.4$ 271.436.6 % Europe, Middle East & Africa:Products $ 63.7$ (15.9)$ 47.87.6 % Services & spares 11.0(2.0)9.05.1 %$ 74.7$ (17.9)$ 56.87.1 % Total:Products $ 975.3$ (6.8)$ 968.535.2 % Services & spares 106.93.6110.513.2 %$ 1,082.2$ (3.2)$ 1,079.030.0 % (1) Organic growth percentage change is calculated as organic growth divided by net sales for the six months ended June 30, 2024. Segment operating profit (loss) Operating profit (loss) Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024 Americas $ 384.6$ 285.1$ 644.3$ 472.9 Asia Pacific 59.232.3104.962.7 Europe, Middle East & Africa 104.2109.5182.9179.8 Total reportable segments 548.0426.9932.1715.4 Foreign currency gain (loss) (2.3)(0.2)(4.9)(3.4) Corporate (56.4)(44.9)(101.2)(81.6) Total corporate and other (58.7)(45.1)(106.1)(85.0) Amortization of intangibles (46.9)(45.8)(92.9)(91.8) Operating profit (loss) $ 442.4$ 336.0$ 733.1$ 538.6 Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024 Net cash provided by (used for) operating activities $ 322.9$ 381.5$ 626.2$ 519.0 Capital expenditures (45.0)(34.1)(81.5)(69.9) Investments in capitalized software (0.9)(10.9)(3.2)(11.6) Adjusted free cash flow $ 277.0$ 336.5$ 541.5$ 437.5 Reconciliation from operating profit (loss) to adjusted operating profit (loss) Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024 Operating profit (loss) $ 442.4$ 336.0$ 733.1$ 538.6 Amortization of intangibles 46.945.892.991.8 Adjusted operating profit (loss) $ 489.3$ 381.8$ 826.0$ 630.4 Reconciliation from operating margin to adjusted operating margin Three months ended June 30, 2025Three months ended June 30, 2024ΔSix months ended June 30, 2025Six months ended June 30, 2024Δ Vertiv net sales $ 2,638.1$ 1,952.8$ 685.3$ 4,674.1$ 3,591.9$ 1,082.2 Vertiv operating profit (loss) 442.4336.0106.4733.1538.6194.5 Vertiv operating margin 16.8 %17.2 %(0.4) %15.7 %15.0 %0.7 % Amortization of intangibles $ 46.9$ 45.8$ 1.1$ 92.9$ 91.8$ 1.1 Vertiv adjusted operating profit (loss) 489.3381.8107.5826.0630.4195.6 Vertiv adjusted operating margin 18.5 %19.6 %(1.1) %17.7 %17.6 %0.1 % Reconciliation of Diluted EPS to Adjusted Diluted EPS Three months ended June 30, 2025Operating profit (loss)Interest expense, netIncome tax expense (benefit)Net income (loss)Diluted EPS(1) GAAP $ 442.4$ 21.3$ 96.9$ 324.2$ 0.83 Amortization of intangibles 46.9——46.90.12 Non-GAAP adjusted $ 489.3$ 21.3$ 96.9$ 371.1$ 0.95 Diluted shares (in millions) 389.8 (1) Diluted EPS and adjusted diluted EPS is calculated using 389.8 million shares (includes 381.5 million basic shares and 8.3 million potential dilutive equity awards). Three months ended June 30, 2024Operating profit (loss)Interest expense, netLoss on extinguishment of debtChange in warrant liabilityIncome tax expense (benefit)Net income (loss)Diluted EPS(1) GAAP $ 336.0$ 44.8$ 1.1$ 25.4$ 86.6$ 178.1$ 0.46 Amortization of intangibles 45.8————45.80.12 Change in warrant liability ———(25.4)(9.1)34.50.09 Non-GAAP adjusted $ 381.8$ 44.8$ 1.1$ —$ 77.5$ 258.4$ 0.67 Pro-forma diluted shares (in millions)384.5 (1) Diluted EPS and adjusted diluted EPS is calculated using 384.5 million shares (includes 374.7 million basic shares and 9.8 million potential dilutive stock options and restricted stock units). We believe that this adjusted version better reflects our actual performance because it removes the impact of warrant liability accounting and the associated impact on adjusted diluted EPS. Six months ended June 30, 2025Operating profit (loss)Interest expense, netIncome tax expense (benefit)Net income (loss)Diluted EPS(1) GAAP $ 733.1$ 46.6$ 197.8$ 488.7$ 1.25 Amortization of intangibles 92.9——92.90.24 Non-recurring tax adjustment, net(2) ——(39.5)39.50.10 Non-GAAP adjusted $ 826.0$ 46.6$ 158.3$ 621.1$ 1.59 Diluted shares (in millions) 390.0 (1) Diluted EPS and adjusted diluted EPS is calculated using 390.0 million shares (includes 381.2 million basic shares and 8.8 million potential dilutive equity awards). (2) Nonrecurring tax adjustment of $39.5 million due to recently issued guidance which changes our assessment of our realizability of certain deferred tax assets. Six months ended June 30, 2024Operating profit (loss)Interest expense, netLoss on extinguishment of debtChange in warrant liabilityIncome tax expense (benefit)Net income (loss)Diluted EPS(1) GAAP $ 538.6$ 83.8$ 1.1$ 202.0$ 79.5$ 172.2$ 0.44 Amortization of intangibles 91.8————91.80.24 Change in warrant liability ———(202.0)38.8163.20.42 Non-GAAP adjusted $ 630.4$ 83.8$ 1.1$ —$ 118.3$ 427.2$ 1.10 Diluted shares (in millions)387.0 (1) Diluted EPS and adjusted diluted EPS is calculated using 387.0 million shares (includes 376.9 million basic shares and 10.1 million potential dilutive stock options and restricted stock units). We believe that this adjusted version better reflects our actual performance because it removes the impact of warrant liability accounting and the associated impact on adjusted diluted EPS. Vertiv Holdings Co 2025 Adjusted Guidance Reconciliation of Diluted EPS to Adjusted Diluted EPS(1)(2) Third Quarter 2025Operating profit (loss)Interest expense, netIncome tax expense (benefit)Net income (loss)Diluted EPS(3) GAAP $ 463.8$ 20.0$ 111.0$ 332.8$ 0.85 Amortization of intangibles 46.2——46.20.12 Non-GAAP adjusted $ 510.0$ 20.0$ 111.0$ 379.0$ 0.97 Diluted shares (in millions) 390.0Full Year 2025Operating profit (loss)Interest expense, netIncome tax expense (benefit)Net income (loss)Diluted EPS(3) GAAP $ 1,807.7$ 87.0$ 461.5$ 1,259.2$ 3.23 Amortization of intangibles 182.3——182.30.47 Non-recurring tax adjustment, net(4) ——(39.5)39.50.10 Non-GAAP adjusted $ 1,990.0$ 87.0$ 422.0$ 1,481.0$ 3.80 Diluted shares (in millions) 390.0 (1) Our guidance reflects the currently expected impacts of the tariff rates active on July 28, 2025, including (but not limited to): existing Chapter 1-97 tariffs; Section 301 tariffs; IEEPA tariffs (20% China; 25% Mexico / Canada; 0% USMCA); Section 232 Steel and Aluminum tariffs (50%); and Reciprocal tariffs (10% All Countries and certain exceptions for Mexico / Canada goods). Our guidance does not take into account those proposed tariffs expected to become effective after July 28, 2025 as we await further clarification from relevant regulatory authorities. This tariff situation remains fluid and uncertain. Tariff costs incremental to current guidance are possible as the tariff perimeter is subject to ongoing changes. (2) Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2025 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. (3) Diluted EPS and adjusted diluted EPS based on 390.0 million shares (includes 381.2 million basic shares and 8.8 million potential dilutive equity awards). (4) Nonrecurring tax adjustment of $39.5 million due to recently issued guidance which changes our assessment of our realizability of certain deferred tax assets. View original content to download multimedia: SOURCE Vertiv Holdings Co
Globe and Mail
6 days ago
- Business
- Globe and Mail
Birks Group Inc. Reports Fiscal 2025 Results
Birks Group Inc. (the 'Company' or 'Birks Group') (NYSE American: BGI), today reported its financial results for the fiscal year ended March 29, 2025. Highlights All figures presented herein are in Canadian dollars. For the fiscal year ended March 29, 2025 ('fiscal 2025'), the Company reported net sales of $177.8 million, a decrease of $7.5 million or 4.0%, from the comparable fiscal year ended March 30, 2024 ('fiscal 2024'). Comparable store sales for fiscal 2025 decreased by 3.4% compared to the corresponding period in fiscal 2024. The decrease in net sales and comparable store sales is mainly due to lower sales of branded jewelry due to the exit of a jewelry brand from two stores. When excluding the third-party jewelry brand movement, the comparable store sales increased by 6.9%, mainly driven by timepiece sales. The Company reported gross profit of $66.3 million, or 37.3% of net sales, compared to $73.6 million, or 39.7% of net sales in fiscal 2024, due to lower sales volume resulting from the exit of a jewelry brand from two stores. Gross profit as a percentage of sales for fiscal 2025 was 37.3%, a decrease of 240 basis points from the gross profit as a percentage of sales of 39.7% for fiscal 2024 as a result of the sales mix with decreased sales from third-party branded jewelry, as well as a foreign exchange loss. Mr. Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: 'Although our net sales and comparable store sales for fiscal 2025 are lower than fiscal 2024, when excluding the effect of third-party jewelry brand movement, comparable store sales are positive year-over-year, as a result of a strong retail performance and product offering particularly in our third-party branded timepieces. In fiscal 2025, we opened two new stores under the TimeVallée and Birks brands and continued to benefit from the fiscal 2024 renovations in our Chinook and Laval locations. These initiatives along with our recent announcement of the acquisition of the watch and jewelry business of European Boutique will continue to generate greater sales and contribute to improve our results.' Mr. Bédos further commented: 'I would like to thank our teams for their tireless efforts. The results achieved in fiscal 2025 are a testament to our commitment to our customers and I am grateful for the unwavering efforts of all our employees and the implementation of various initiatives during this past year to enhance our product offering and customer experience.' Financial overview for the fiscal year ended March 29, 2025: Total net sales for fiscal 2025 were $177.8 million compared to $185.3 million in fiscal 2024, a decrease of $7.5 million, or 4.0%. The decrease in net sales in fiscal 2025 was primarily driven by the results of the Company's retail channel. Net retail sales in fiscal 2025 were $7.3 million lower than fiscal 2024, primarily due to the decrease in third-party branded jewelry sales, following the exit of a jewelry brand from two stores, partially offset by an increase in branded timepiece sales throughout the retail network; Comparable store sales decreased by 3.4% in fiscal 2025 compared to fiscal 2024 mainly due to lower third-party branded jewelry sales following the exit of a jewelry brand from two stores, partially offset by an increase in third-party branded timepiece sales and an increase in average sales transaction value. When excluding the third-party jewelry brand movement, the comparable store sales increased by 6.9%, mainly driven by timepiece sales; Total gross profit for fiscal 2025 was $66.3 million, or 37.3% of net sales, compared to $73.6 million, or 39.7% of net sales, in fiscal 2024. This decrease in gross profit was primarily due to the decreased sales volume experienced during fiscal 2025, due to third-party branded jewelry sales following the exit of a jewelry brand from two stores, and a foreign exchange loss due to the strengthening of the U.S. dollar, partially offset by the increased sales of third-party branded timepieces. The decrease of 240 basis points in gross margin percentage resulted primarily from the sales mix with decreased sales from third-party branded jewelry, as well as a foreign exchange loss, partially offset by an increase in branded timepiece sales; SG&A expenses in fiscal 2025 were $59.5 million, or 33.5% of net sales, compared to $65.7 million, or 35.5% of net sales, in fiscal 2024, a decrease of $6.2 million. The main drivers of the decrease in SG&A expenses in fiscal 2025 include lower occupancy costs ($2.7 million) mainly due to store closures and store lease modifications, lower marketing costs ($2.3 million) mainly due to lower brand development initiatives, lower compensation costs ($0.5 million) mainly due to lower sales volume and head count reductions, lower general operating costs ($0.4 million) and lower non-cash based compensation expense ($0.3 million) mainly due to fluctuations in the Company's stock price during the fiscal year. As a percentage of sales, SG&A expenses in fiscal 2025 decreased by 200 basis points as compared to fiscal 2024, reflecting the Company's focus on cost management and containment; The Company's adjusted EBITDA (1) for fiscal 2025 was $9.2 million, a decrease of $0.8 million, compared to adjusted EBITDA (1) of $10.0 million for fiscal 2024; The Company's reported operating loss for fiscal 2025 was $5.5 million, a decrease of $6.7 million, compared to a reported operating income of $1.2 million for fiscal 2024. The operating loss in fiscal 2025 includes an impairment of long-lived assets of $4.6 million related to the write-down of capitalized software costs associated with the delay in completing the implementation of the Company's ERP system; The Company's recognized interest and other financing costs were $9.7 million in fiscal 2025, an increase of $1.7 million, compared to recognized interest and other financing costs of $8.0 million in fiscal 2024. This increase is mainly due to an increase in the average amount outstanding on the amended credit facility, additional borrowings, and a foreign exchange loss of $1.0 million in fiscal 2025 versus a foreign exchange gain of $0.2 million in fiscal 2024 on our U.S. dollar denominated debt; The Company recognized a net loss for fiscal 2025 of $12.8 million, or $0.66 per share, compared to a net loss for fiscal 2024 of $4.6 million, or $0.24 per share. (1) This is a non-GAAP financial measure defined below under 'Non-GAAP Measures' and accompanied by a reconciliation to the most directly comparable GAAP financial measure. About Birks Group Inc. Birks Group is a leading designer of fine jewelry and an operator of luxury jewelry, timepieces and gifts retail stores in Canada. The Company operates 17 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Montreal under the Birks brand, one retail location in Montreal under the TimeVallée brand, one retail location in Calgary under the Brinkhaus brand, one retail location in Vancouver under the Graff brand, one retail location in Vancouver under the Patek Philippe brand, four retail locations in Laval, Ottawa and Toronto under the Breitling brand, four retail locations in Toronto under the European Boutique brand, one retail location in Toronto under the Omega brand and one retail location in Toronto under the Montblanc brand. Birks was founded in 1879 and has become Canada's premier designer and retailer of fine jewelry, timepieces and gifts. Additional information can be found on Birks' web site, NON-GAAP MEASURES The Company reports financial information in accordance with U.S. Generally Accepted Accounting Principles ('U.S. GAAP'). The Company's performance is monitored and evaluated using various sales and earnings measures that are adjusted to include or exclude amounts from the most directly comparable GAAP measure ('non-GAAP measures'). The Company presents such non-GAAP measures in reporting its financial results to assist in business decision-making and to provide key performance information to senior management. The Company believes that this additional information provided to investors and other external stakeholders will allow them to evaluate the Company's operating results using the same financial measures and metrics used by the Company in evaluating performance. The Company does not, nor does it suggest that investors and other external stakeholders should, consider non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies. In addition to our results determined in accordance with U.S. GAAP, we use non-GAAP measures including 'EBITDA' and 'Adjusted EBITDA'. EBITDA 'EBITDA' is defined as net income (loss) before interest expense and other financing costs, income taxes expense (recovery) and depreciation and amortization. For the fiscal year ended March 29, 2025 March 30, 2024 Net income (loss) (GAAP measure) $ (12,819 ) $ (4,631 ) as a % of net sales -7.2 % -2.5 % Add the impact of: Interest expense and other financing costs 9,712 8,007 Depreciation and amortization 7,733 6,639 EBITDA (non-GAAP measure) $ 4,626 $ 10,015 as a % of net sales 2.6 % 5.4 % Add the impact of: Impairment of long-lived assets (a) 4,592 — Adjusted EBITDA (non-GAAP measure) $ 9,218 $ 10,015 as a % of net sales 5.2 % 5.4 % (a) Non-cash impairment of long-lived assets in fiscal 2025 related to certain software costs associated with the delay in completing the implementation of the Company's ERP system. Forward Looking Statements This press release contains forward- looking statements which can be identified, for example, by their use of words such as 'plans,' 'expects,' 'believes,' 'will,' 'anticipates,' 'intends,' 'projects,' 'estimates,' 'could,' 'would,' 'may,' 'planned,' 'goal,' and other words of similar meaning. All statements that address expectations, possibilities or projections about the future, including without limitation, statements about anticipated economic conditions, generation of shareholder value, and our strategies for growth, performance drivers, expansion plans, sources or adequacy of capital, expenditures and financial results are forward-looking statements. Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward- looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. Accordingly, the reader should not place undue reliance on forward-looking statements. These risks and uncertainties include, but are not limited to the following: (i) a decline in consumer spending or deterioration in consumer financial position; (ii) economic, political and market conditions, including the economies of Canada and the U.S. and the influence of inflation on consumer spending, which could adversely affect the Company's business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the real estate markets, changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales as well as the recently imposed tariffs (and retaliatory measures), possible changes therefrom and other trade restrictions; (iii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company's costs and expenses; (iv) the Company's ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to source raw materials, to mitigate fluctuations in the availability and prices of the Company's merchandise, to compete with other jewelers, to succeed in its marketing initiatives (including with respect to Birks branded products), and to have a successful customer service program; (v) the Company's plan to evaluate the productivity of existing stores, close unproductive stores and open new stores in new prime retail locations, renovate existing stores and invest in its website and e-commerce platform; (vi) the Company's ability to execute its strategic vision; and (vii) the Company's ability to invest in and finance capital expenditures; (viii) the Company's ability to maintain its listing on the NYSE American exchange or to list its shares on another national securities exchange; and (ix) the Company's ability to continue as a going concern. Information concerning the above and other risk factors that could cause actual results to differ materially is set forth under the captions 'Risk Factors' and 'Operating and Financial Review and Prospects' and elsewhere in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 25, 2025 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. Fiscal Year Ended March 29, 2025 March 30, 2024 Net sales $ 177,807 $ 185,275 Cost of sales 111,499 111,720 Gross profit 66,308 73,555 Selling, general and administrative expenses 59,518 65,705 Depreciation and amortization 7,733 6,639 Impairment of long-lived assets 4,592 — Total operating expenses 71,843 72,344 Operating income (loss) (5,535 ) 1,211 Interest and other financial costs 9,712 8,007 Income (loss) before taxes and equity in earnings of joint venture (15,247 ) (6,796 ) Income taxes (benefits) — — Equity in earnings of joint venture, net of taxes of $0.9 million ($0.8 million in fiscal 2024) 2,428 2,165 Net (loss) income, net of tax $ (12,819 ) $ (4,631 ) Weighted average common shares outstanding: Basic 19,357 19,058 Diluted 19,357 19,058 Net (loss) income per common share: Basic $ (0.66 ) $ (0.24 ) Diluted (0.66 ) (0.24 ) BIRKS GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands) As of March 29, 2025 March 30, 2024 Assets Current Assets Cash and cash equivalents $ 1,509 $ 1,783 Accounts receivable and other receivables 6,608 8,455 Inventories 116,277 99,067 Prepaids and other current assets 2,072 2,913 Total current assets 126,466 112,218 Long-term receivables 1,084 1,571 Equity investment in joint venture 5,169 4,122 Property and equipment 25,380 25,717 Operating lease right-of-use asset 34,964 51,753 Intangible assets and other assets 3,017 7,887 Total non-current assets 69,614 91,050 Total assets $ 196,080 $ 203,268 Liabilities and Stockholders' Equity (Deficiency) Current liabilities Bank indebtedness $ 73,630 $ 63,372 Accounts payable 58,114 43,011 Accrued liabilities 6,053 6,112 Current portion of long-term debt 4,860 4,352 Current portion of operating lease liabilities 6,929 6,430 Total current liabilities 149,586 123,277 Long-term debt 21,374 22,587 Long-term portion of operating lease liabilities 38,629 59,881 Other long-term liabilities 4,502 2,672 Total long-term liabilities 64,505 85,140 Stockholders' equity (deficiency): Class A common stock – no par value, unlimited shares authorized, issued and outstanding 11,876,717 (11,447,999 as of March 30, 2024) 42,854 40,725 Class B common stock – no par value, unlimited shares authorized, issued and outstanding 7,717,970 57,755 57,755 Preferred stock – no par value, unlimited shares authorized, none issued — — Additional paid-in capital 19,719 21,825 Accumulated deficit (138,295 ) (125,476 )
National Post
6 days ago
- Business
- National Post
Birks Group Inc. Reports Fiscal 2025 Results
Article content MONTREAL — Birks Group Inc. (the 'Company' or 'Birks Group') (NYSE American: BGI), today reported its financial results for the fiscal year ended March 29, 2025. Article content All figures presented herein are in Canadian dollars. For the fiscal year ended March 29, 2025 ('fiscal 2025'), the Company reported net sales of $177.8 million, a decrease of $7.5 million or 4.0%, from the comparable fiscal year ended March 30, 2024 ('fiscal 2024'). Comparable store sales for fiscal 2025 decreased by 3.4% compared to the corresponding period in fiscal 2024. The decrease in net sales and comparable store sales is mainly due to lower sales of branded jewelry due to the exit of a jewelry brand from two stores. When excluding the third-party jewelry brand movement, the comparable store sales increased by 6.9%, mainly driven by timepiece sales. The Company reported gross profit of $66.3 million, or 37.3% of net sales, compared to $73.6 million, or 39.7% of net sales in fiscal 2024, due to lower sales volume resulting from the exit of a jewelry brand from two stores. Gross profit as a percentage of sales for fiscal 2025 was 37.3%, a decrease of 240 basis points from the gross profit as a percentage of sales of 39.7% for fiscal 2024 as a result of the sales mix with decreased sales from third-party branded jewelry, as well as a foreign exchange loss. Article content Mr. Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: 'Although our net sales and comparable store sales for fiscal 2025 are lower than fiscal 2024, when excluding the effect of third-party jewelry brand movement, comparable store sales are positive year-over-year, as a result of a strong retail performance and product offering particularly in our third-party branded timepieces. In fiscal 2025, we opened two new stores under the TimeVallée and Birks brands and continued to benefit from the fiscal 2024 renovations in our Chinook and Laval locations. These initiatives along with our recent announcement of the acquisition of the watch and jewelry business of European Boutique will continue to generate greater sales and contribute to improve our results.' Article content Mr. Bédos further commented: 'I would like to thank our teams for their tireless efforts. The results achieved in fiscal 2025 are a testament to our commitment to our customers and I am grateful for the unwavering efforts of all our employees and the implementation of various initiatives during this past year to enhance our product offering and customer experience.' Financial overview for the fiscal year ended March 29, 2025: Article content Total net sales for fiscal 2025 were $177.8 million compared to $185.3 million in fiscal 2024, a decrease of $7.5 million, or 4.0%. The decrease in net sales in fiscal 2025 was primarily driven by the results of the Company's retail channel. Net retail sales in fiscal 2025 were $7.3 million lower than fiscal 2024, primarily due to the decrease in third-party branded jewelry sales, following the exit of a jewelry brand from two stores, partially offset by an increase in branded timepiece sales throughout the retail network; Article content Comparable store sales decreased by 3.4% in fiscal 2025 compared to fiscal 2024 mainly due to lower third-party branded jewelry sales following the exit of a jewelry brand from two stores, partially offset by an increase in third-party branded timepiece sales and an increase in average sales transaction value. When excluding the third-party jewelry brand movement, the comparable store sales increased by 6.9%, mainly driven by timepiece sales; Article content Total gross profit for fiscal 2025 was $66.3 million, or 37.3% of net sales, compared to $73.6 million, or 39.7% of net sales, in fiscal 2024. This decrease in gross profit was primarily due to the decreased sales volume experienced during fiscal 2025, due to third-party branded jewelry sales following the exit of a jewelry brand from two stores, and a foreign exchange loss due to the strengthening of the U.S. dollar, partially offset by the increased sales of third-party branded timepieces. The decrease of 240 basis points in gross margin percentage resulted primarily from the sales mix with decreased sales from third-party branded jewelry, as well as a foreign exchange loss, partially offset by an increase in branded timepiece sales; Article content SG&A expenses in fiscal 2025 were $59.5 million, or 33.5% of net sales, compared to $65.7 million, or 35.5% of net sales, in fiscal 2024, a decrease of $6.2 million. The main drivers of the decrease in SG&A expenses in fiscal 2025 include lower occupancy costs ($2.7 million) mainly due to store closures and store lease modifications, lower marketing costs ($2.3 million) mainly due to lower brand development initiatives, lower compensation costs ($0.5 million) mainly due to lower sales volume and head count reductions, lower general operating costs ($0.4 million) and lower non-cash based compensation expense ($0.3 million) mainly due to fluctuations in the Company's stock price during the fiscal year. As a percentage of sales, SG&A expenses in fiscal 2025 decreased by 200 basis points as compared to fiscal 2024, reflecting the Company's focus on cost management and containment; Article content The Company's adjusted EBITDA (1) for fiscal 2025 was $9.2 million, a decrease of $0.8 million, compared to adjusted EBITDA (1) of $10.0 million for fiscal 2024; Article content The Company's reported operating loss for fiscal 2025 was $5.5 million, a decrease of $6.7 million, compared to a reported operating income of $1.2 million for fiscal 2024. The operating loss in fiscal 2025 includes an impairment of long-lived assets of $4.6 million related to the write-down of capitalized software costs associated with the delay in completing the implementation of the Company's ERP system; Article content The Company's recognized interest and other financing costs were $9.7 million in fiscal 2025, an increase of $1.7 million, compared to recognized interest and other financing costs of $8.0 million in fiscal 2024. This increase is mainly due to an increase in the average amount outstanding on the amended credit facility, additional borrowings, and a foreign exchange loss of $1.0 million in fiscal 2025 versus a foreign exchange gain of $0.2 million in fiscal 2024 on our U.S. dollar denominated debt; Article content The Company recognized a net loss for fiscal 2025 of $12.8 million, or $0.66 per share, compared to a net loss for fiscal 2024 of $4.6 million, or $0.24 per share. Article content (1) This is a non-GAAP financial measure defined below under 'Non-GAAP Measures' and accompanied by a reconciliation to the most directly comparable GAAP financial measure. Article content About Birks Group Inc. Article content Birks Group is a leading designer of fine jewelry and an operator of luxury jewelry, timepieces and gifts retail stores in Canada. The Company operates 17 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Montreal under the Birks brand, one retail location in Montreal under the TimeVallée brand, one retail location in Calgary under the Brinkhaus brand, one retail location in Vancouver under the Graff brand, one retail location in Vancouver under the Patek Philippe brand, four retail locations in Laval, Ottawa and Toronto under the Breitling brand, four retail locations in Toronto under the European Boutique brand, one retail location in Toronto under the Omega brand and one retail location in Toronto under the Montblanc brand. Birks was founded in 1879 and has become Canada's premier designer and retailer of fine jewelry, timepieces and gifts. Additional information can be found on Birks' web site, Article content NON-GAAP MEASURES Article content The Company reports financial information in accordance with U.S. Generally Accepted Accounting Principles ('U.S. GAAP'). The Company's performance is monitored and evaluated using various sales and earnings measures that are adjusted to include or exclude amounts from the most directly comparable GAAP measure ('non-GAAP measures'). The Company presents such non-GAAP measures in reporting its financial results to assist in business decision-making and to provide key performance information to senior management. The Company believes that this additional information provided to investors and other external stakeholders will allow them to evaluate the Company's operating results using the same financial measures and metrics used by the Company in evaluating performance. The Company does not, nor does it suggest that investors and other external stakeholders should, consider non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. These non-GAAP measures may not be comparable to similarly titled measures presented by other companies. In addition to our results determined in accordance with U.S. GAAP, we use non-GAAP measures including 'EBITDA' and 'Adjusted EBITDA'. Article content 'EBITDA' is defined as net income (loss) before interest expense and other financing costs, income taxes expense (recovery) and depreciation and amortization. Article content EBITDA & Adjusted EBITDA (in thousands) For the fiscal year ended March 29, 2025 March 30, 2024 Net income (loss) (GAAP measure) $ (12,819 ) $ (4,631 ) as a % of net sales -7.2 % -2.5 % Add the impact of: Interest expense and other financing costs 9,712 8,007 Depreciation and amortization 7,733 6,639 EBITDA (non-GAAP measure) $ 4,626 $ 10,015 as a % of net sales 2.6 % 5.4 % Add the impact of: Impairment of long-lived assets (a) 4,592 — Adjusted EBITDA (non-GAAP measure) $ 9,218 $ 10,015 as a % of net sales 5.2 % 5.4 % (a) Non-cash impairment of long-lived assets in fiscal 2025 related to certain software costs associated with the delay in completing the implementation of the Company's ERP system. Article content Forward Looking Statements Article content This press release contains forward- looking statements which can be identified, for example, by their use of words such as 'plans,' 'expects,' 'believes,' 'will,' 'anticipates,' 'intends,' 'projects,' 'estimates,' 'could,' 'would,' 'may,' 'planned,' 'goal,' and other words of similar meaning. All statements that address expectations, possibilities or projections about the future, including without limitation, statements about anticipated economic conditions, generation of shareholder value, and our strategies for growth, performance drivers, expansion plans, sources or adequacy of capital, expenditures and financial results are forward-looking statements. Article content Because such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward- looking statements and no assurance can be given that the Company will meet the results projected in the forward-looking statements. Accordingly, the reader should not place undue reliance on forward-looking risks and uncertainties include, but are not limited to the following: (i) a decline in consumer spending or deterioration in consumer financial position; (ii) economic, political and market conditions, including the economies of Canada and the U.S. and the influence of inflation on consumer spending, which could adversely affect the Company's business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the real estate markets, changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales as well as the recently imposed tariffs (and retaliatory measures), possible changes therefrom and other trade restrictions; (iii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company's costs and expenses; (iv) the Company's ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to source raw materials, to mitigate fluctuations in the availability and prices of the Company's merchandise, to compete with other jewelers, to succeed in its marketing initiatives (including with respect to Birks branded products), and to have a successful customer service program; (v) the Company's plan to evaluate the productivity of existing stores, close unproductive stores and open new stores in new prime retail locations, renovate existing stores and invest in its website and e-commerce platform; (vi) the Company's ability to execute its strategic vision; and (vii) the Company's ability to invest in and finance capital expenditures; (viii) the Company's ability to maintain its listing on the NYSE American exchange or to list its shares on another national securities exchange; and (ix) the Company's ability to continue as a going concern. Article content Information concerning the above and other risk factors that could cause actual results to differ materially is set forth under the captions 'Risk Factors' and 'Operating and Financial Review and Prospects' and elsewhere in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 25, 2025 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. Article content As of March 29, 2025 March 30, 2024 Assets Current Assets Cash and cash equivalents $ 1,509 $ 1,783 Accounts receivable and other receivables 6,608 8,455 Inventories 116,277 99,067 Prepaids and other current assets 2,072 2,913 Total current assets 126,466 112,218 Long-term receivables 1,084 1,571 Equity investment in joint venture 5,169 4,122 Property and equipment 25,380 25,717 Operating lease right-of-use asset 34,964 51,753 Intangible assets and other assets 3,017 7,887 Total non-current assets 69,614 91,050 Total assets $ 196,080 $ 203,268 Liabilities and Stockholders' Equity (Deficiency) Current liabilities Bank indebtedness $ 73,630 $ 63,372 Accounts payable 58,114 43,011 Accrued liabilities 6,053 6,112 Current portion of long-term debt 4,860 4,352 Current portion of operating lease liabilities 6,929 6,430 Total current liabilities 149,586 123,277 Long-term debt 21,374 22,587 Long-term portion of operating lease liabilities 38,629 59,881 Other long-term liabilities 4,502 2,672 Total long-term liabilities 64,505 85,140 Stockholders' equity (deficiency): Class A common stock – no par value, unlimited shares authorized, issued and outstanding 11,876,717 (11,447,999 as of March 30, 2024) 42,854 40,725 Class B common stock – no par value, unlimited shares authorized, issued and outstanding 7,717,970 57,755 57,755 Preferred stock – no par value, unlimited shares authorized, none issued — — Additional paid-in capital 19,719 21,825 Accumulated deficit (138,295 ) (125,476 ) Accumulated other comprehensive income (loss) (44 ) 22 Total stockholders' equity (deficiency) (18,011 ) (5,149 ) Total liabilities and stockholders' equity (deficiency) $ 196,080 $ 203,268 Article content Article content Article content Article content Contacts Article content Company Contact: Article content Article content Katia Fontana Article content Article content Vice President and Chief Financial Officer Article content
