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Cision Canada
3 days ago
- Business
- Cision Canada
Aurora Cannabis Files Full Year Results and Announces Fiscal 2025 Fourth Quarter
NASDAQ| TSX: ACB Achieves Record Annual Global Medical Cannabis Net Revenue 1 of $244.4 million, representing 39% YoY growth Delivers Record Adjusted EBITDA 1 of $49.7 million, representing 261% YoY growth Generates Annual Positive Free Cash Flow 1 of $9.9 million Sustains Strong Balance Sheet with ~$185.3 million of Cash and Debt-Free Cannabis Business 2 EDMONTON, AB, June 18, 2025 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), a leading Canada-based global medical cannabis company, today announced its financial and operational results for the fourth quarter and fiscal year 2025 periods ending March 31, 2025. "We are pleased to report an exceptional year to our shareholders, highlighted by record annual global medical net revenue 1, adjusted EBITDA 1, and positive free cash flow 1. These achievements underscore the thoughtful execution of our strategic plan, set us further apart from competitors, and strengthen our foundation for sustained and profitable growth," said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin. "Specific to Q4 2025, we ended our banner fiscal year by further strengthening our business model. International revenue more than doubled, representing 61% of global medical cannabis net revenue 1. Plant propagation also increased significantly as we benefited from peak seasonality along with organic expansion. These top-line gains were complemented by a sharp year over year increase in adjusted EBITDA 1 profitability and the third quarter of positive free cash flow 1 generation." concluded Mr. Martin. _________________________________ 1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. 2 Aurora's only remaining debt is non-recourse debt of $61.7 million relating to Bevo Farms Ltd as detailed in the March 31, 2025 Financial Statements. Fourth Quarter 2025 Highlights (Unless otherwise stated, comparisons are made between fiscal Q4 2025, Q3 2025, and Q4 2024 results and are in Canadian dollars) Consolidated Revenue and Adjusted Gross Profit: Total net revenue 1 was $90.5 million, as compared to $67.4 million in the prior year period. The 34% increase from the prior year period was mainly due to 48% growth in our global medical cannabis business and 32% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business. Consolidated adjusted gross margin before fair value adjustments 1 was 62% in Q4 2025 and 50% in the prior year period. Adjusted gross profit before FV adjustments 1 was $54.2 million in Q4 2025 compared to $33.4 million in the prior year period, an increase of 62%. Medical Cannabis: Medical cannabis net revenue 1 was $67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora's Q4 2025 consolidated net revenue 1 and 88% of adjusted gross profit before fair value adjustments 1. The increase in medical cannabis net revenue 1 of $22.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients. Adjusted gross margin before fair value adjustments 1 on medical cannabis net revenue 1 reached 70% for the three months ended March 31, 2025, compared to 66% in the prior year period. The adjusted gross margins before fair value adjustments 1 improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada. Consumer Cannabis: Aurora's consumer cannabis net revenue 1 was $8.2 million a 20% decrease compared to $10.2 million in the prior year period. The decrease was due to our continued decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins. Adjusted gross margin before fair value adjustments 1 on consumer cannabis net revenue 1 was 27%, an increase from 16% compared to the prior year period. The increase from the prior year period is primarily due to cost improvements resulting from spend efficiencies. Plant Propagation: Plant propagation net revenue 1 was wholly comprised of the Bevo business, and contributed $13.8 million of net revenue 1, a 32% increase compared to $10.4 million in the prior year period. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity. Adjusted gross margin before fair value adjustments 1 on plant propagation revenue was 37% for Q4 2025 and 25% for the prior year period. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments 1 is due to product mix with higher margin sales. Adjusted Selling, General and Administrative ("Adjusted SG&A"): Adjusted SG&A 1 was $36.7 million in Q4 2025, which excludes $5.8 million of business transformation costs. The increase compared to the prior year period relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia. Net Income (Loss): Net loss from continuing operations for the three months ended March 31, 2025 was $17.2 million compared to a net loss of $20.3 million for the prior year period. The decrease in net loss of $3.0 million compared to the three months ended March 31, 2024 is comprised of a decrease in gross profit of $18.8 million and an increase in operating expenses of $3.0 million, offset with other income in the current period $10.5 million compared to other expenses of $18.7 million during the three months ended March 31, 2024. Adjusted EBITDA: Adjusted EBITDA 1 increased 619% to $16.7 million for the three months ended March 31, 2025 compared to $2.3 million for the prior year period. Fiscal Q1 2026 Expectations: Expect continued strong global cannabis revenue driven by improved performance in Canadian medical, comparable performance in consumer, offset by temporary declines in some of our international markets. Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve in later quarters due to increased distribution and further innovation. Seasonally higher revenues for plant propagation as they complete their peak quarter, in line with historical seasonal trends. Margins to hold strong and we expect positive adjusted EBITDA 1 to continue, with a decline versus Q4 FY25 due to lower revenue contributions from the higher margin international markets. Free cash flow 1 is projected to remain positive, due to continued strong performance and improved operating cash use. Historical Quarterly Results: In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company identified an error in inventory and cost of sales arising from intercompany profit eliminations, resulting in an overstatement of inventory and understatement of cost of sales. Additionally, the Company understated its lease liability during a period in which a rent concession was granted by the lessor. In respect of the Company's presentation of cash and cash equivalents and restricted cash, the Company determined that certain previously reported restricted cash held within its captives was accessible to the Company and therefore not restricted. The unrestricted portion has been reclassified to cash and cash equivalents. The Company has concluded that these errors are not material to any of the Company's previously-issued audited consolidated financial statements and unaudited condensed consolidated interim financial statements. Accordingly, the Company has concluded that an amendment to its previously-filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements is not required. The revisions will be reflected in the comparative period of the Company's prospective condensed consolidated interim financial statements filings. There is no impact to the annual consolidated financial statements, however the comparative periods have been revised accordingly. The core balances impacted in the consolidated financial position and cash flow are: cash and cash equivalents, restricted cash, inventory and property, plant and equipment. In the consolidated statement of income (loss) the core areas impacted are: cost of sales, gross profit and net income (loss). A summary of the impact to its previously filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements can be found in the historical quarterly results section of the FY25 Q4 MD&A, filed June 18, 2025 (the "MD&A"). Key Quarterly Financial Results ($ thousands, except Operational Results) Three months ended March 31, 2025 December 31, 2024 (4) $ Change % Change March 31, 2024 (3) $ Change % Change Financial Results Net revenue (1a) $90,538 $88,198 $2,340 3 % $67,411 $23,127 34 % Medical cannabis net revenue (1a) $67,776 $68,149 ($373) (1 %) $45,648 $22,128 48 % Consumer cannabis net revenue (1a) $8,166 $9,912 ($1,746) (18 %) $10,233 ($2,067) (20 %) Plant propagation revenue $13,770 $8,897 $4,873 55 % $10,416 $3,354 32 % Adjusted gross margin before FV adjustments on total net revenue (1b) 62 % 61 % N/A 1 % 50 % N/A 12 % Adjusted gross margin before FV adjustments on cannabis net revenue (1b) 65 % 63 % N/A 2 % 54 % N/A 11 % Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b) 70 % 69 % N/A 1 % 66 % N/A 4 % Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b) 27 % 26 % N/A 1 % 16 % N/A 11 % Adjusted gross margin before FV adjustments on plant propagation net revenue (1b) 37 % 40 % N/A (3 %) 25 % N/A 12 % Adjusted SG&A expense (1d) $36,687 $31,263 $5,424 17 % $31,351 $5,336 17 % Adjusted EBITDA (1c) $16,678 $19,393 ($2,715) (14 %) $2,319 $14,359 619 % Free cash flow (1e) $2,495 $27,364 ($24,869) (91 %) ($21,866) $24,361 111 % Balance Sheet Working capital (1f) $367,465 $338,741 $28,724 8 % $301,985 $65,480 22 % Cannabis inventory and biological assets (2) $193,980 $212,075 ($18,095) (9 %) $148,112 $45,868 31 % Total assets $852,666 $862,297 ($9,631) (1 %) $838,673 $13,993 2 % (1) These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure: a. Refer to the "Revenue" and "Cost of Sales and Gross Margin" section for a reconciliation of cannabis net revenue to the IFRS equivalent. b. Refer to the "Adjusted Gross Margin" section for reconciliation to the IFRS equivalent. c. Refer to the "Adjusted EBITDA" section for reconciliation to the IFRS equivalent. d. Refer to the "Operating Expenses" section for reconciliation to the IFRS equivalent. e. Refer to the "Liquidity and Capital Resources" section for a reconciliation to the IFRS equivalent. f. "Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. (2) Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. (3) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (4) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidat interim statements filed during the 2025 fiscal balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Conference Call Aurora will host a conference call today, Wednesday, June 18, 2025, to discuss these results. Miguel Martin, Chief Executive Officer, and Simona King, Chief Financial Officer, will host the call starting at 8:00 a.m. Eastern time | 6:00 a.m. Mountain Time. A question and answer session will follow management's presentation. About Aurora Cannabis Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched. Learn more at and follow us on X and LinkedIn. Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB". Forward Looking Statements This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law (" forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements regarding ethe Company's Q4 and full year FY2025 results, statements under the heading "Fiscal Q1 2026 Expectation", including, but not limited to those related to revenue growth and adjusted gross margins, revenue in the plant propagation segment, and expectations for positive adjusted EBITDA and positive free cash flow, statements regarding the Company's continued commitment to strategic growth, operational excellence, and long-term sustained profitability, as well as statements regarding the Company's conference call to discuss results. These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the magnitude and duration of potential new or increased tariffs imposed on goods imported from Canada into the United States, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations (with respect to the Transaction and more generally with respect to future acquisitions), management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information from dated June 17, 2025 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR+ at and filed with and available on the U.S Securities and Exchange Commision's EDGAR ("SEC")\ website at The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law. The Company's annual consolidated financial statements, the MD&A and AIF are available as part of the Company's Annual Report on Form 40-F filed with the SEC and available under the Company's profile on the SEC's website. These documents are also available on the Company's website, and shareholders may receive hard copies of such documents free of charge upon request. Non-GAAP Measures This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, these non-GAAP Measures are intended to provide additional information and to assist management and investors in assessing financial performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The information included under the heading "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" in the MD&A is incorporated by reference into this news release. The MD&A is available on the Company's issuer profiles on SEDAR+ at and on the SEC's EDGAR website at Net Revenue, Adjusted Gross Profit and Margin Net revenue, adjusted gross profit before FV adjustments, and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with revenue, gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows: (1) Net revenue is a Non-GAAP Measure and is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the "Cost of Sales and Gross Margin" section of this MD&A for a reconciliation to IFRS equivalent. (2) Certain previously reported amounts have been adjusted to exclude the results related to discontinued operations. Adjusted EBITDA The following is the Company's adjusted EBITDA: (1) Business transformation related charges include costs related to closed facilities, certain IT project costs, costs associated with the repurposing of Sky and Sun, severance and retention costs in connection with the business transformation plan, and costs associated with the retention of certain medical aggregators. Some prior period amounts have been adjusted for changes in presentation. (2) Out-of-period adjustments reflect adjustments to net loss for the financial impact of transactions recorded in the current period that relate to prior periods. Some prior period amounts have been adjusted for changes in presentation. (3) Non-recurring items includes one-time excise tax refunds, non-core adjusted wholesale bulk margins, inventory count adjustments resulting from facility shutdowns and inter-site transfers, litigation and non-recurring project costs. (4) Adjusted EBITDA is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A. Prior period comparatives were adjusted to include the adjustments for markets under development, business transformation costs and non-recurring charges related to non-core bulk cannabis wholesale to be comparable to the current period presentation. (5) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (6) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidated interim statements filed during the 2025 fiscal year. Certain balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Adjusted SG&A Adjusted SG&A is a Non-GAAP Measure and can be reconciled with sales and marketing and general and administrative expenses, the most directly comparable GAAP financial measure, as follows: (1) Adjusted SG&A is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. (2) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (3) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidated interim statements filed during the 2025 fiscal year. Certain balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Free Cash Flow The table below outlines free cash flow for the periods ended: (1) Maintenance capital expenditures are comprised of costs to sustain facilities, machinery and equipment in working order to support operations and excludes discretionary investments for revenue growth. (2) Free cash flow is a Non-GAAP Measure and is not a recognized, defined, or a standardized measure under IFRS. Refer to the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. (3) Certain previously reported amounts have been adjusted for a reclassification of restricted cash to cash and cash equivalents as at March 31, 2024, June, 30, 2024, September 30, 2024 and December 31, 2024. Refer to discussion under "Historical Quarterly Results" section of the MD&A for further detail. Working Capital Working capital is a Non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable GAAP financial measure, as follows: Three months ended ($ thousands) March 31, 2025 December 31, 2024 March 31, 2024 Total current assets 478,328 488,548 426,605 Total current liabilities (110,863) (149,807) (124,620) Working capital (1) 367,465 338,741 301,985 (1) Working capital for the three months ended December 31, 2024 has been adjusted. Refer to discussion under "Liquidity and Capital Resources" section of the MD&A. SOURCE Aurora Cannabis Inc.
Yahoo
3 days ago
- Business
- Yahoo
Aurora Cannabis Files Full Year Results and Announces Fiscal 2025 Fourth Quarter
NASDAQ | TSX: ACB Achieves Record Annual Global Medical Cannabis Net Revenue1 of $244.4 million, representing 39% YoY growth Delivers Record Adjusted EBITDA1 of $49.7 million, representing 261% YoY growth Generates Annual Positive Free Cash Flow1 of $9.9 million Sustains Strong Balance Sheet with ~$185.3 million of Cash and Debt-Free Cannabis Business2 EDMONTON, AB, June 18, 2025 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), a leading Canada-based global medical cannabis company, today announced its financial and operational results for the fourth quarter and fiscal year 2025 periods ending March 31, 2025. "We are pleased to report an exceptional year to our shareholders, highlighted by record annual global medical net revenue1, adjusted EBITDA1, and positive free cash flow1. These achievements underscore the thoughtful execution of our strategic plan, set us further apart from competitors, and strengthen our foundation for sustained and profitable growth," said Executive Chairman and Chief Executive Officer for Aurora, Miguel Martin. "Specific to Q4 2025, we ended our banner fiscal year by further strengthening our business model. International revenue more than doubled, representing 61% of global medical cannabis net revenue1. Plant propagation also increased significantly as we benefited from peak seasonality along with organic expansion. These top-line gains were complemented by a sharp year over year increase in adjusted EBITDA1 profitability and the third quarter of positive free cash flow1 generation." concluded Mr. Martin. _________________________________1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See "Non-GAAP Measures" below for reconciliations of non-GAAP financial measures to GAAP financial measures. 2 Aurora's only remaining debt is non-recourse debt of $61.7 million relating to Bevo Farms Ltd as detailed in the March 31, 2025 Financial Statements. Fourth Quarter 2025 Highlights (Unless otherwise stated, comparisons are made between fiscal Q4 2025, Q3 2025, and Q4 2024 results and are in Canadian dollars) Consolidated Revenue and Adjusted Gross Profit:Total net revenue1 was $90.5 million, as compared to $67.4 million in the prior year period. The 34% increase from the prior year period was mainly due to 48% growth in our global medical cannabis business and 32% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business. Consolidated adjusted gross margin before fair value adjustments1 was 62% in Q4 2025 and 50% in the prior year period. Adjusted gross profit before FV adjustments1 was $54.2 million in Q4 2025 compared to $33.4 million in the prior year period, an increase of 62%. Medical Cannabis:Medical cannabis net revenue1 was $67.8 million, a 48% increase from the prior year period, delivering 75% of Aurora's Q4 2025 consolidated net revenue1 and 88% of adjusted gross profit before fair value adjustments1. The increase in medical cannabis net revenue1 of $22.1 million was primarily due to higher sales to Australia, Germany, Poland, and the UK, as well as increased revenue in Canada to insurance covered and self-paying patients. Adjusted gross margin before fair value adjustments1 on medical cannabis net revenue1 reached 70% for the three months ended March 31, 2025, compared to 66% in the prior year period. The adjusted gross margins before fair value adjustments1 improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada. Consumer Cannabis:Aurora's consumer cannabis net revenue1 was $8.2 million a 20% decrease compared to $10.2 million in the prior year period. The decrease was due to our continued decision to prioritize the supply of our GMP manufactured products to our high margin global medical cannabis business rather than the consumer business, which offers lower margins. Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 27%, an increase from 16% compared to the prior year period. The increase from the prior year period is primarily due to cost improvements resulting from spend efficiencies. Plant Propagation:Plant propagation net revenue1 was wholly comprised of the Bevo business, and contributed $13.8 million of net revenue1, a 32% increase compared to $10.4 million in the prior year period. The increase was a result of organic growth and expanded product offerings, both arising from increased capacity. Adjusted gross margin before fair value adjustments1 on plant propagation revenue was 37% for Q4 2025 and 25% for the prior year period. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments1 is due to product mix with higher margin sales. Adjusted Selling, General and Administrative ("Adjusted SG&A"):Adjusted SG&A1 was $36.7 million in Q4 2025, which excludes $5.8 million of business transformation costs. The increase compared to the prior year period relates to higher freight and logistics costs, notably from sales to Europe with the increase in sourcing from Canada and incremental costs following the acquisition of MedReleaf Australia. Net Income (Loss):Net loss from continuing operations for the three months ended March 31, 2025 was $17.2 million compared to a net loss of $20.3 million for the prior year period. The decrease in net loss of $3.0 million compared to the three months ended March 31, 2024 is comprised of a decrease in gross profit of $18.8 million and an increase in operating expenses of $3.0 million, offset with other income in the current period $10.5 million compared to other expenses of $18.7 million during the three months ended March 31, 2024. Adjusted EBITDA:Adjusted EBITDA1 increased 619% to $16.7 million for the three months ended March 31, 2025 compared to $2.3 million for the prior year period. Fiscal Q1 2026 Expectations: Expect continued strong global cannabis revenue driven by improved performance in Canadian medical, comparable performance in consumer, offset by temporary declines in some of our international markets. Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve in later quarters due to increased distribution and further innovation. Seasonally higher revenues for plant propagation as they complete their peak quarter, in line with historical seasonal trends. Margins to hold strong and we expect positive adjusted EBITDA1 to continue, with a decline versus Q4 FY25 due to lower revenue contributions from the higher margin international markets. Free cash flow1 is projected to remain positive, due to continued strong performance and improved operating cash use. Historical Quarterly Results:In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company identified an error in inventory and cost of sales arising from intercompany profit eliminations, resulting in an overstatement of inventory and understatement of cost of sales. Additionally, the Company understated its lease liability during a period in which a rent concession was granted by the lessor. In respect of the Company's presentation of cash and cash equivalents and restricted cash, the Company determined that certain previously reported restricted cash held within its captives was accessible to the Company and therefore not restricted. The unrestricted portion has been reclassified to cash and cash equivalents. The Company has concluded that these errors are not material to any of the Company's previously-issued audited consolidated financial statements and unaudited condensed consolidated interim financial statements. Accordingly, the Company has concluded that an amendment to its previously-filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements is not required. The revisions will be reflected in the comparative period of the Company's prospective condensed consolidated interim financial statements filings. There is no impact to the annual consolidated financial statements, however the comparative periods have been revised accordingly. The core balances impacted in the consolidated financial position and cash flow are: cash and cash equivalents, restricted cash, inventory and property, plant and equipment. In the consolidated statement of income (loss) the core areas impacted are: cost of sales, gross profit and net income (loss). A summary of the impact to its previously filed audited consolidated financial statements and unaudited condensed consolidated interim financial statements can be found in the historical quarterly results section of the FY25 Q4 MD&A, filed June 18, 2025 (the "MD&A"). Key Quarterly Financial Results ($ thousands, except Operational Results) Three months ended March 31, 2025 December 31, 2024(4) $ Change % Change March 31, 2024(3) $ Change % Change Financial ResultsNet revenue (1a) $90,538 $88,198 $2,340 3 % $67,411 $23,127 34 % Medical cannabis net revenue (1a) $67,776 $68,149 ($373) (1 %) $45,648 $22,128 48 % Consumer cannabis net revenue (1a) $8,166 $9,912 ($1,746) (18 %) $10,233 ($2,067) (20 %) Plant propagation revenue $13,770 $8,897 $4,873 55 % $10,416 $3,354 32 % Adjusted gross margin before FV adjustments on total net revenue (1b) 62 % 61 % N/A 1 % 50 % N/A 12 % Adjusted gross margin before FV adjustments on cannabis net revenue (1b) 65 % 63 % N/A 2 % 54 % N/A 11 % Adjusted gross margin before FV adjustments on medical cannabis net revenue (1b) 70 % 69 % N/A 1 % 66 % N/A 4 % Adjusted gross margin before FV adjustments on consumer cannabis net revenue (1b) 27 % 26 % N/A 1 % 16 % N/A 11 % Adjusted gross margin before FV adjustments on plant propagation net revenue (1b) 37 % 40 % N/A (3 %) 25 % N/A 12 % Adjusted SG&A expense(1d) $36,687 $31,263 $5,424 17 % $31,351 $5,336 17 % Adjusted EBITDA (1c) $16,678 $19,393 ($2,715) (14 %) $2,319 $14,359 619 % Free cash flow (1e) $2,495 $27,364 ($24,869) (91 %) ($21,866) $24,361 111 % Balance SheetWorking capital (1f) $367,465 $338,741 $28,724 8 % $301,985 $65,480 22 % Cannabis inventory and biological assets (2) $193,980 $212,075 ($18,095) (9 %) $148,112 $45,868 31 % Total assets $852,666 $862,297 ($9,631) (1 %) $838,673 $13,993 2 % (1) These terms are defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the following sections for reconciliation of Non-GAAP Measures to the IFRS equivalent measure: a. Refer to the "Revenue" and "Cost of Sales and Gross Margin" section for a reconciliation of cannabis net revenue to the IFRS equivalent. b. Refer to the "Adjusted Gross Margin" section for reconciliation to the IFRS equivalent. c. Refer to the "Adjusted EBITDA" section for reconciliation to the IFRS equivalent. d. Refer to the "Operating Expenses" section for reconciliation to the IFRS equivalent. e. Refer to the "Liquidity and Capital Resources" section for a reconciliation to the IFRS equivalent. f. "Working capital" is defined as Current Assets less Current Liabilities as reported on the Company's Consolidated Statements of Financial Position. (2) Represents total biological assets and inventory, exclusive of merchandise, accessories, supplies, consumables and plant propagation biological assets. (3) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (4) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidat interim statements filed during the 2025 fiscal balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Conference Call Aurora will host a conference call today, Wednesday, June 18, 2025, to discuss these results. Miguel Martin, Chief Executive Officer, and Simona King, Chief Financial Officer, will host the call starting at 8:00 a.m. Eastern time | 6:00 a.m. Mountain Time. A question and answer session will follow management's presentation. DATE: Wednesday, June 18, 2025 TIME: 8:00 a.m. Eastern Time | 6:00 a.m. Mountain Time WEBCAST: Click Here About Aurora Cannabis Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and New Zealand. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Drift, San Rafael '71, Daily Special, Tasty's, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, wellness and adult recreational markets wherever they are launched. Learn more at and follow us on X and LinkedIn. Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB". Forward Looking Statements This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements regarding ethe Company's Q4 and full year FY2025 results, statements under the heading "Fiscal Q1 2026 Expectation", including, but not limited to those related to revenue growth and adjusted gross margins, revenue in the plant propagation segment, and expectations for positive adjusted EBITDA and positive free cash flow, statements regarding the Company's continued commitment to strategic growth, operational excellence, and long-term sustained profitability, as well as statements regarding the Company's conference call to discuss results. These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the magnitude and duration of potential new or increased tariffs imposed on goods imported from Canada into the United States, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations (with respect to the Transaction and more generally with respect to future acquisitions), management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information from dated June 17, 2025 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR+ at and filed with and available on the U.S Securities and Exchange Commision's EDGAR ("SEC")\ website at The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law. The Company's annual consolidated financial statements, the MD&A and AIF are available as part of the Company's Annual Report on Form 40-F filed with the SEC and available under the Company's profile on the SEC's website. These documents are also available on the Company's website, and shareholders may receive hard copies of such documents free of charge upon request. Non-GAAP Measures This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, these non-GAAP Measures are intended to provide additional information and to assist management and investors in assessing financial performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The information included under the heading "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" in the MD&A is incorporated by reference into this news release. The MD&A is available on the Company's issuer profiles on SEDAR+ at and on the SEC's EDGAR website at Net Revenue, Adjusted Gross Profit and Margin Net revenue, adjusted gross profit before FV adjustments, and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with revenue, gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows: ($ thousands) Three months ended Years ended March 31, 2025 December 31, 2024(2) March 31, 2024(2) March 31, 2025 March 31, 2024(3) Medical cannabis net revenue(1)Canadian medical cannabis net revenue 26,751 27,295 26,449 107,432 103,068 International medical cannabis net revenue 41,025 40,854 19,199 137,010 72,449 Total medical cannabis net revenue 67,776 68,149 45,648 244,442 175,517 Consumer cannabis net revenue(1)Consumer cannabis net revenue(1) 8,166 9,912 10,233 40,033 46,958 Wholesale bulk cannabis net revenue(1) 826 1,240 1,114 4,436 2,403 Total cannabis net revenue(1) 76,768 79,301 56,995 288,911 224,878— Plant propagation revenue 13,770 8,897 10,416 54,382 44,759 Total net revenue(1) 90,538 88,198 67,411 343,293 269,637 (1) Net revenue is a Non-GAAP Measure and is defined in the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. Refer to the "Cost of Sales and Gross Margin" section of this MD&A for a reconciliation to IFRS equivalent. (2) Certain previously reported amounts have been adjusted to exclude the results related to discontinued operations. Adjusted EBITDA The following is the Company's adjusted EBITDA: ($ thousands) Three months ended Twelve months ended March 31, 2025 December 31, 2024(6) March 31, 2024(5) March 31, 2025 March 31, 2024(5) Net income (loss) from continuing operations (17,232) 28,110 (20,267) 15,763 (57,083) Income tax expense (recovery) 3,693 (377) (711) 4,619 (554) Other income (expense) (10,490) 4,821 18,719 (15,434) 12,536 Share-based compensation 3,786 1,657 3,029 12,930 12,717 Depreciation and amortization 6,322 6,030 6,296 25,470 32,066 Acquisition costs 624 819 2,970 3,435 5,326 Inventory and biological assets fair value and impairment adjustments 22,225 (28,311) (16,940) (17,905) (25,540) Business transformation related charges (1) 5,983 4,780 7,539 18,996 25,189 Out-of-period adjustments (2) — — (185) — 1,236 Non-recurring items (3) 1,767 1,864 1,869 1,835 7,859 Adjusted EBITDA (4) 16,678 19,393 2,319 49,709 13,752 (1) Business transformation related charges include costs related to closed facilities, certain IT project costs, costs associated with the repurposing of Sky and Sun, severance and retention costs in connection with the business transformation plan, and costs associated with the retention of certain medical aggregators. Some prior period amounts have been adjusted for changes in presentation. (2) Out-of-period adjustments reflect adjustments to net loss for the financial impact of transactions recorded in the current period that relate to prior periods. Some prior period amounts have been adjusted for changes in presentation. (3) Non-recurring items includes one-time excise tax refunds, non-core adjusted wholesale bulk margins, inventory count adjustments resulting from facility shutdowns and inter-site transfers, litigation and non-recurring project costs. (4) Adjusted EBITDA is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of the MD&A. Prior period comparatives were adjusted to include the adjustments for markets under development, business transformation costs and non-recurring charges related to non-core bulk cannabis wholesale to be comparable to the current period presentation. (5) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (6) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidated interim statements filed during the 2025 fiscal year. Certain balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Adjusted SG&A Adjusted SG&A is a Non-GAAP Measure and can be reconciled with sales and marketing and general and administrative expenses, the most directly comparable GAAP financial measure, as follows:Three months ended Twelve months ended ($ thousands) March 31, 2025 December 31, 2024(3) March 31, 2024(2) March 31, 2025 March 31, 2024(2) General and administration 28,552 23,687 25,418 97,257 91,325 Sales and marketing 15,459 13,077 14,530 56,281 51,910 Business transformation costs (5,837) (5,128) (6,862) (20,326) (22,590) Out-of-period adjustments — — (642) — (1,236) Non-recurring costs (1,487) (373) (1,093) (2,144) (3,768) Adjusted SG&A (1) 36,687 31,263 31,351 131,068 115,641 (1) Adjusted SG&A is a Non-GAAP Measure and is not a recognized, defined, or standardized measure under IFRS. Refer to the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. (2) Certain previously reported amounts have been adjusted to exclude the results of discontinued operations. (3) In connection with the audit of the annual consolidated financial statements as at and for the year ended March 31, 2025, the Company noted that inventory and lease obligation were misstated, impacting the condensed consolidated interim statements filed during the 2025 fiscal year. Certain balances in the condensed consolidated interim financial statements as at and for the three months ended June 30, 2024, September 30, 2024 and December 31, 2024 were adjusted as a result and the amounts shown above reflect such adjustments. Refer to discussion under "Historical Quarterly Results" section of this MD&A for further detail. Free Cash Flow The table below outlines free cash flow for the periods ended:Three months ended Years ended ($ thousands) March 31, 2025 December 31, 2024(3) March 31, 2025 March 31, 2025 March 31, 2024(3) Cash provided by (used in) operating activities from continuing operations before changes in non-cash working capital (2,928) 9,513 (10,074) 7,996 (47,625) Changes in non-cash working capital 6,947 20,107 (10,335) 10,210 (15,541) Net cash provided by (used in) operating activities from continuing operations 4,019 29,620 (20,409) 18,206 (63,166) Less: maintenance capital expenditures(1) (1,524) (2,256) (1,457) (8,290) (6,582) Free cash flow(2) 2,495 27,364 (21,866) 9,916 (69,748) (1) Maintenance capital expenditures are comprised of costs to sustain facilities, machinery and equipment in working order to support operations and excludes discretionary investments for revenue growth. (2) Free cash flow is a Non-GAAP Measure and is not a recognized, defined, or a standardized measure under IFRS. Refer to the "Cautionary Statement Regarding Certain Non-GAAP Performance Measures" section of this MD&A. (3) Certain previously reported amounts have been adjusted for a reclassification of restricted cash to cash and cash equivalents as at March 31, 2024, June, 30, 2024, September 30, 2024 and December 31, 2024. Refer to discussion under "Historical Quarterly Results" section of the MD&A for further detail. Working Capital Working capital is a Non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable GAAP financial measure, as follows:Three months ended ($ thousands) March 31, 2025 December 31, 2024 March 31, 2024 Total current assets 478,328 488,548 426,605 Total current liabilities (110,863) (149,807) (124,620) Working capital(1) 367,465 338,741 301,985 (1) Working capital for the three months ended December 31, 2024 has been adjusted. Refer to discussion under "Liquidity and Capital Resources" section of the MD&A. View original content to download multimedia: SOURCE Aurora Cannabis Inc. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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La-Z-Boy Incorporated Reports Strong Fourth Quarter and Full Year Results; Sales Growth Across All Segments for the Year and Strong Operating Cash Flow Performance
Fiscal 2025 Fourth Quarter Highlights: Consolidated delivered sales of $571 million Up 3% versus prior year Retail segment delivered sales increased 8% Company-owned La-Z-Boy Furniture Galleries® network grew by a total of six stores; 203 company-owned store base now represents 55% of total network Wholesale segment delivered sales increased 2% GAAP operating margin of 5.2%; adjusted(1) operating margin of 9.4%, flat versus the year ago period GAAP diluted EPS of $0.36 and adjusted(1) diluted EPS of $0.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items Delivered sales exceeded high end of guidance range and adjusted(1) operating margin at high end of guidance range Generated $62 million in operating cash flow for the quarter, up 17% versus prior year Fiscal 2025 Highlights: Consolidated delivered sales of $2.1 billion Up 3% versus prior year Retail segment delivered sales increased 5% Added 11 newly opened stores, one of the largest yearly expansions in company history, and acquired seven independent La-Z-Boy Furniture Galleries® stores Wholesale segment delivered sales increased 2% Joybird delivered sales increased 5% GAAP operating margin of 6.4%; adjusted(1) operating margin of 7.6%, down 20 basis points versus a year ago GAAP diluted EPS of $2.35 and adjusted(1) diluted EPS of $2.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items Generated $187 million in operating cash flow for the year, up 18% versus prior year Returned $113 million to shareholders through share repurchases and dividends Increased quarterly dividend by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase MONROE, Mich., June 17, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong fourth quarter results for the period ended April 26, 2025. For the quarter, sales totaled $571 million, growing 3% against the prior year comparable period. Operating margin was 5.2% for the quarter on a GAAP basis and 9.4% on an adjusted(1) basis. Diluted earnings per share totaled $0.36 on a GAAP basis and $0.92 on an adjusted(1) basis, both of which include a $0.10 impact from unfavorable foreign tax discrete items. The company returned $113 million to shareholders for the year, up over 30% versus the prior year. Fourth quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) grew 3% versus a year ago and written same-store sales (which exclude the impact of newly opened stores and newly acquired stores) were down 5% versus a year ago. Continued challenges in the housing market with stubbornly high mortgage rates and increased volatility in the global economy negatively influenced consumer sentiment and had an adverse impact on industry trends. Industry data for the quarter was mixed with public company peers noting same-store sales of relatively flat to declines in the mid-teen range, while the broader industry data as reported by the U.S. Census Bureau indicated an increase in the mid-single digits. Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, 'Our fourth quarter results reflect the ongoing strengthening of our brand and operations under our Century Vision strategy. We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty. We are controlling what we can control with distinct strategies and initiatives across each of our businesses. In Retail, we continue to grow our direct-to-consumer business, own the entire end-to-end consumer experience, and develop more value-added consumer insights. Through opening net new stores and also acquiring existing independent La-Z-Boy Furniture Galleries®, we reached a new milestone in the quarter, growing our company-owned store footprint to over 200 stores, nearly doubling our store count over the last 10 years, and now owning 55% of the total network. In Wholesale, we continue to expand our brand reach with compatible strategic partners to serve more consumers. Additionally, we are successfully driving scale and efficiencies in our supply chain. This is highlighted by our core North America La-Z-Boy wholesale business achieving sales growth and margin expansion for four consecutive quarters during fiscal 2025, and continuing to strengthen as we initiate our multi-year distribution and delivery redesign.' Whittington added, 'Even as we expect global economic uncertainty to continue challenging consumers in the near term, we are confident in the strength of our business model to outperform our peers and deliver strong financial performance. La-Z-Boy is an iconic brand in a highly fragmented market. We have successfully navigated challenging times throughout our 98-year history by delivering comfort and quality to our consumers. A strong balance sheet combined with an agile supply chain provides us a position of strength in the industry. We will continue to execute our playbook to mitigate an ever changing environment and drive long-term profitable growth and returns for all stakeholders.' First Quarter Outlook:Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, 'We delivered growth and strong financial results in what was another challenging year for the industry. We continue to control what we can control and are executing against our Century Vision strategy, which will enable growth through our centennial and beyond. I am pleased with our progress, and our ability to deliver results at or above the high end of our sales and margin expectations for the fourth quarter, even in light of considerable volatility during the quarter. Given higher levels of uncertainty in the broader economic climate, we expect the industry outlook to continue to be volatile and we are planning prudently to navigate the year ahead. We expect to continue to outperform the industry, driven by growth in our company-owned Retail segment and core North America La-Z-Boy wholesale business. Assuming no significant changes in external factors, we expect fiscal first quarter sales to be in the range of $490-$510 million, reflecting modest growth in a challenged consumer environment. We expect adjusted operating margin(2) to be in the range of 5.5-7.0%, including the impact of transitory pressure from our UK and Joybird businesses, as well as investment in our distribution network and home delivery redesign project. Also, as a reminder, our first quarter is generally the lowest sales and margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown.' Key Results: Quarter Ended Year Ended 4/26/2025 4/27/2024 Change 4/26/2025 4/27/2024 Change Sales $ 570,871 $ 553,535 3% $ 2,109,207 $ 2,047,027 3% GAAP operating income 29,527 50,097 (41)% 135,837 150,796 (10)% Adjusted operating income 53,611 52,114 3% 160,826 159,398 1% GAAP operating margin 5.2% 9.1% (390) bps 6.4% 7.4% (100) bps Adjusted operating margin 9.4% 9.4% 0 bps 7.6% 7.8% (20) bps GAAP net income attributable to La-Z-Boy Incorporated 14,931 39,308 (62)% 99,556 122,626 (19)% Adjusted net income attributable to La-Z-Boy Incorporated 38,392 40,811 (6)% 123,745 129,131 (4)% Diluted weighted average common shares 41,942 42,974 42,345 43,280 GAAP diluted earnings per share $ 0.36 $ 0.91 (60)% $ 2.35 $ 2.83 (17)% Adjusted diluted earnings per share $ 0.92 $ 0.95 (3)% $ 2.92 $ 2.98 (2)% Liquidity Measures: Year Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Free Cash Flow Cash Returns to Shareholders Operating cash flow $ 187,271 $ 158,127 Share repurchases $ 77,930 $ 52,773 Capital expenditures (74,280 ) (53,551 ) Dividends 34,955 32,665 Free cash flow $ 112,991 $ 104,576 Cash returns to shareholders $ 112,885 $ 85,438 4/26/2025 4/27/2024 Cash and cash equivalents $ 328,449 $ 341,098 Fiscal 2025 Fourth Quarter Results versus Fiscal 2024 Fourth Quarter: Consolidated sales in the fourth quarter of fiscal 2025 increased 3% to $571 million versus last year, primarily driven by acquisitions and new stores in the Retail segment, and continued momentum in our core North America La-Z-Boy wholesale business Consolidated GAAP operating margin was 5.2% versus 9.1% Consolidated adjusted(1) operating margin was flat at 9.4% versus the year ago period, as lower input costs (reduced commodity prices and improved sourcing) and leverage on marketing investments were offset by the impact of a significant customer transition in our international wholesale business as well as acceleration of tariff expenses in the quarter GAAP diluted EPS was $0.36 versus $0.91, and adjusted(1) diluted EPS totaled $0.92 versus $0.95 last year in the comparable period. GAAP and adjusted(1) diluted EPS for fiscal 2025 both include a $0.10 impact from unfavorable foreign tax discrete items Retail Segment: Sales: Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 3% compared to the year ago period driven primarily by new and acquired stores Written same-store sales decreased 5%, as continued weakness in industry traffic was partially offset by higher average ticket and design sales Delivered sales increased 8% to $247 million versus last year, primarily due to growth from acquired and new stores and positive delivered same-store sales growth Operating Margin: GAAP operating margin and GAAP operating income were 13.1% and $32 million, versus 14.1% and $32 million in the prior period, respectively Adjusted(1) operating margin and adjusted(1) operating income were 13.1% and $32 million, down 110 basis points, and flat, respectively, due to investment in new stores Wholesale Segment: Sales: Sales increased 2% to $402 million, driven by growth in our core North America La-Z-Boy wholesale business partially offset by the continued impact of a significant customer transition in our international wholesale business Operating Margin: GAAP operating margin decreased to 2.5% versus 8.1% Adjusted(1) operating margin was 8.5%, flat versus the year ago as gross margin and SG&A as a percent of sales were largely unchanged. Continued margin expansion in our core North America La-Z-Boy wholesale business was offset by the margin impact of a significant customer transition in the international wholesale business as well as incremental tariff expenses in the quarter Corporate & Other: Joybird written sales decreased 21% as recent economic and industry trends disproportionately impacted the Joybird online consumer Delivered sales decreased 2% to $36 million as positive growth within existing stores was offset by declines in the online business Joybird adjusted(1) operating margin was positive in the fourth quarter, relatively flat versus prior year Balance Sheet and Cash Flow, Fiscal 2025: Ended the quarter with $328 million in cash(3) and no external debt Generated $187 million in cash from operating activities (up 18% from the prior year) including $62 million in the fourth quarter (up 17% from the prior year comparable period), versus $158 million in Fiscal 2024 and $53 million in last year's fourth quarter Invested $74 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels) Returned approximately $113 million to shareholders, including $78 million in share repurchases and $35 million in dividends, which was raised by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase Conference Call:La-Z-Boy will hold a conference call with the investment community on Wednesday, June 18, 2025, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 546047. The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 52510. The webcast replay will be available for one year. Investor Relations Contact:Mark Becks, CFA, (734) Media Contact:Cara Klaer, (734) About La-Z-Boy:La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers. The Retail segment consists of over 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: Notes:(1)Beginning in FY2025 Q4, the company renamed all of its Non-GAAP financial measures to adjusted financial measures; for example, Non-GAAP diluted EPS has been renamed to adjusted diluted EPS. The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged. Please refer to the accompanying 'Reconciliation of GAAP to Adjusted Financial Measures' and 'Reconciliation of GAAP to Adjusted Financial Measures: Segment Information' for detailed information.a $20.6 million pre-tax, or $0.49 per diluted share, charge related to the goodwill impairment in our United Kingdom ("UK") wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business. a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating incomea $1.7 million pre-tax, or less than $0.03 per diluted share, charge related to our Mexico supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or $0.01 per diluted share, all included in operating incomea $20.6 million pre-tax, or $0.48 per diluted share, charge related to the goodwill impairment in our UK wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business. a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax, or $0.02 per diluted share, all included in operating incomea $7.5 million pre-tax, or $0.13 per diluted share, charge related to our Mexico supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax. or $0.02 per share, with $1.1 million included in operating income and $0.1 million included in interest expense (2)This reference to for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts. Please refer to the accompanying 'Reconciliation of GAAP to adjusted Financial Measures' and 'Reconciliation of GAAP to adjusted Financial Measures: Segment Information' for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure. (3)includes cash and cash equivalents. Cautionary Note Regarding Forward-Looking Statements:This news release contains 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry. The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the 'SEC'), available on the SEC's website at Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. Adjusted Financial Measures:In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States ('GAAP'), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges, goodwill impairment charges, and purchase accounting charges. The supply chain optimization charges in fiscal 2025 include asset impairment costs and severance costs related to our United Kingdom wholesale businesses. The supply chain optimization charges in fiscal 2024 include asset impairment costs, accelerated depreciation expense, lease termination gains, severance costs, and employee relocation costs related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The purchase accounting charges include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, and fair value adjustments of future cash payments recorded as interest expense. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated's results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, supply chain optimization charges are dependent on the timing, size, number and nature of the operations being closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company's operating results over time. Where applicable, the accompanying 'Reconciliation of GAAP to Adjusted Financial Measures' tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented. LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF INCOME Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Sales $ 570,871 $ 553,535 $ 2,109,207 $ 2,047,027 Cost of sales 319,809 313,452 1,182,789 1,165,357 Gross profit 251,062 240,083 926,418 881,670 Selling, general and administrative expense 200,954 189,986 770,000 730,874 Goodwill impairment 20,581 — 20,581 — Operating income 29,527 50,097 135,837 150,796 Interest expense (134 ) (126 ) (545 ) (455 ) Interest income 3,258 4,260 14,877 15,482 Other income (expense), net (635 ) (92 ) (3,035 ) (71 ) Income before income taxes 32,016 54,139 147,134 165,752 Income tax expense 16,666 13,807 46,182 41,116 Net income 15,350 40,332 100,952 124,636 Net (income) loss attributable to noncontrolling interests (419 ) (1,024 ) (1,396 ) (2,010 ) Net income attributable to La-Z-Boy Incorporated $ 14,931 $ 39,308 $ 99,556 $ 122,626 Basic weighted average common shares 41,208 42,499 41,601 42,878 Basic net income attributable to La-Z-Boy Incorporated per share $ 0.36 $ 0.92 $ 2.39 $ 2.86 Diluted weighted average common shares 41,942 42,974 42,345 43,280 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.36 $ 0.91 $ 2.35 $ 2.83 LA-Z-BOY INCORPORATEDCONSOLIDATED BALANCE SHEET 4/26/2025 4/27/2024 Current assets Cash and equivalents $ 328,449 $ 341,098 Receivables, net of allowance of $5,042 at 4/26/2025 and $5,076 at 4/27/2024 139,533 139,213 Inventories, net 255,285 263,237 Other current assets 82,421 93,260 Total current assets 805,688 836,808 Property, plant and equipment, net 339,212 298,224 Goodwill 205,590 214,453 Other intangible assets, net 51,161 47,251 Deferred income taxes – long-term 7,349 10,283 Right of use lease asset 452,848 446,466 Other long-term assets, net 60,314 59,957 Total assets $ 1,922,162 $ 1,913,442 Current liabilities Accounts payable $ 95,984 $ 96,486 Lease liabilities, short-term 80,592 77,027 Accrued expenses and other current liabilities 244,215 263,768 Total current liabilities 420,791 437,281 Lease liability, long-term 410,265 404,724 Other long-term liabilities 59,130 58,077 Shareholders' Equity Preferred shares – 5,000 authorized; none issued — — Common shares, $1.00 par value – 150,000 authorized; 41,164 outstanding at 4/26/2025 and 42,440 outstanding at 4/27/2024 41,164 42,440 Capital in excess of par value 385,601 368,485 Retained earnings 597,432 598,009 Accumulated other comprehensive loss (3,574 ) (5,870 ) Total La-Z-Boy Incorporated shareholders' equity 1,020,623 1,003,064 Noncontrolling interests 11,353 10,296 Total equity 1,031,976 1,013,360 Total liabilities and equity $ 1,922,162 $ 1,913,442 LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF CASH FLOWS Year Ended 4/26/2025 4/27/2024 Cash flows from operating activities Net income $ 100,952 $ 124,636 Adjustments to reconcile net income to cash provided by operating activities (Gain)/loss on disposal and impairment of assets 1,998 1,101 (Gain)/loss on sale of investments (235 ) (1,199 ) Provision for doubtful accounts 851 511 Depreciation and amortization 46,667 48,552 Amortization of right-of-use lease assets 76,964 76,133 Lease impairment/(settlement) — (1,175 ) Equity-based compensation expense 17,400 14,426 Goodwill impairment 20,581 — Change in deferred taxes 5,116 (3,268 ) Change in receivables (1,906 ) (16,811 ) Change in inventories 12,792 19,877 Change in other assets 8,701 10,303 Change in payables (2,066 ) (8,606 ) Change in lease liabilities (78,609 ) (76,766 ) Change in other liabilities (21,935 ) (29,587 ) Net cash provided by operating activities 187,271 158,127 Cash flows from investing activities Proceeds from disposals of assets 412 4,972 Capital expenditures (74,280 ) (53,551 ) Purchases of investments (6,990 ) (18,351 ) Proceeds from sales of investments 11,994 24,816 Acquisitions (29,525 ) (39,440 ) Net cash used for investing activities (98,389 ) (81,554 ) Cash flows from financing activities Payments on finance lease liabilities (663 ) (489 ) Holdback payments for acquisitions — (5,000 ) Stock issued for stock and employee benefit plans, net of shares withheld for taxes 12,350 10,872 Repurchases of common stock (77,930 ) (52,773 ) Dividends paid to shareholders (34,955 ) (32,665 ) Dividends paid to minority interest joint venture partners (1) (1,414 ) (1,172 ) Net cash used for financing activities (102,612 ) (81,227 ) Effect of exchange rate changes on cash and equivalents 1,081 (926 ) Change in cash, cash equivalents and restricted cash (12,649 ) (5,580 ) Cash, cash equivalents and restricted cash at beginning of period 341,098 346,678 Cash, cash equivalents and restricted cash at end of period $ 328,449 $ 341,098 Supplemental disclosure of non-cash investing activities Capital expenditures included in payables $ 7,234 $ 5,952 (1 ) Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested. LA-Z-BOY INCORPORATEDSEGMENT INFORMATION Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Sales Wholesale segment: Sales to external customers $ 286,883 $ 287,900 $ 1,056,914 $ 1,048,431 Intersegment sales 115,141 104,561 422,905 398,847 Wholesale segment sales 402,024 392,461 1,479,819 1,447,278 Retail segment sales 246,769 227,878 898,370 855,126 Corporate and Other: Sales to external customers 37,219 37,757 153,923 143,470 Intersegment sales 1,799 1,587 6,552 10,299 Corporate and Other sales 39,018 39,344 160,475 153,769 Eliminations (116,940 ) (106,148 ) (429,457 ) (409,146 ) Consolidated sales $ 570,871 $ 553,535 $ 2,109,207 $ 2,047,027 Operating Income (Loss) Wholesale segment $ 10,120 $ 31,709 $ 82,213 $ 99,373 Retail segment 32,414 32,170 105,417 111,682 Corporate and Other (13,007 ) (13,782 ) (51,793 ) (60,259 ) Consolidated operating income $ 29,527 $ 50,097 $ 135,837 $ 150,796 LA-Z-BOY INCORPORATEDUNAUDITED QUARTERLY FINANCIALDATA Fiscal2025 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks) 7/27/2024 10/26/2024 1/25/2025 4/26/2025 Sales $ 495,532 $ 521,027 $ 521,777 $ 570,871 Cost of sales 282,189 290,379 290,412 319,809 Gross profit 213,343 230,648 231,365 251,062 Selling, general and administrative expense 180,973 191,876 196,197 200,954 Goodwill impairment — — — 20,581 Operating income 32,370 38,772 35,168 29,527 Interest expense (210 ) (99 ) (102 ) (134 ) Interest income 4,424 3,730 3,465 3,258 Other income (expense), net (618 ) (1,879 ) 97 (635 ) Income before income taxes 35,966 40,524 38,628 32,016 Income tax expense 9,162 10,671 9,683 16,666 Net income 26,804 29,853 28,945 15,350 Net (income) loss attributable to noncontrolling interests (645 ) 184 (516 ) (419 ) Net income attributable to La-Z-Boy Incorporated $ 26,159 $ 30,037 $ 28,429 $ 14,931 Diluted weighted average common shares 42,564 42,154 42,103 41,942 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.61 $ 0.71 $ 0.68 $ 0.36 Fiscal2024 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks) 7/29/2023 10/28/2023 1/27/2024 4/27/2024 Sales $ 481,651 $ 511,435 $ 500,406 $ 553,535 Cost of sales 275,923 288,830 287,152 313,452 Gross profit 205,728 222,605 213,254 240,083 Selling, general and administrative expense 171,202 188,993 180,693 189,986 Operating income 34,526 33,612 32,561 50,097 Interest expense (122 ) (101 ) (106 ) (126 ) Interest income 3,056 4,042 4,124 4,260 Other income (expense), net 556 104 (639 ) (92 ) Income before income taxes 38,016 37,657 35,940 54,139 Income tax expense 10,090 9,963 7,256 13,807 Net income 27,926 27,694 28,684 40,332 Net income attributable to noncontrolling interests (447 ) (495 ) (44 ) (1,024 ) Net income attributable to La-Z-Boy Incorporated $ 27,479 $ 27,199 $ 28,640 $ 39,308 Diluted weighted average common shares 43,333 43,401 43,195 42,974 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.63 $ 0.63 $ 0.66 $ 0.91 LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 GAAP gross profit $ 251,062 $ 240,083 $ 926,418 $ 881,670 Purchase accounting charges (1) — 89 140 89 Supply chain optimization charges (2) 1,123 502 1,123 4,468 Adjusted gross profit $ 252,185 $ 240,674 $ 927,681 $ 886,227 GAAP SG&A $ 200,954 $ 189,986 $ 770,000 $ 730,874 Purchase accounting charges (3) (256 ) (254 ) (1,021 ) (1,016 ) Supply chain optimization charges (4) (2,124 ) (1,172 ) (2,124 ) (3,029 ) Adjusted SG&A $ 198,574 $ 188,560 $ 766,855 $ 726,829 GAAP operating income $ 29,527 $ 50,097 $ 135,837 $ 150,796 Purchase accounting charges 256 343 1,161 1,105 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted operating income $ 53,611 $ 52,114 $ 160,826 $ 159,398 GAAP income before income taxes $ 32,016 $ 54,139 $ 147,134 $ 165,752 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted income before income taxes $ 56,100 $ 56,156 $ 172,123 $ 174,402 GAAP net income attributable to La-Z-Boy Incorporated $ 14,931 $ 39,308 $ 99,556 $ 122,626 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Tax effect of purchase accounting (79 ) (87 ) (317 ) (286 ) Supply chain optimization charges 3,247 1,674 3,247 7,497 Tax effect of supply chain optimization (545 ) (427 ) (483 ) (1,859 ) Goodwill impairment 20,581 — 20,581 — Adjusted net income attributable to La-Z-Boy Incorporated $ 38,392 $ 40,811 $ 123,745 $ 129,131 GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $ 0.36 $ 0.91 $ 2.35 $ 2.83 Purchase accounting charges, net of tax, per share — 0.01 0.02 0.02 Supply chain optimization charges, net of tax, per share 0.07 0.03 0.07 0.13 Goodwill impairment, net of tax, per share 0.49 — 0.48 — Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $ 0.92 $ 0.95 $ 2.92 $ 2.98 (1 ) Includes incremental expense upon the sale of inventory acquired at fair value. (2 ) Fiscal 2025 includes severance charges relating to manufacturing optimization actions in the United Kingdom. Fiscal 2024 includes severance charges related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. (3 ) Includes amortization of intangible assets. (4 ) Fiscal 2025 includes the impairment of fixed assets and our customer relationship intangible asset in the United Kingdom. The first nine months of fiscal 2024 includes $3.0 million of accelerated depreciation of fixed assets related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The first nine months of fiscal 2024 also includes a $1.2 million gain related to the settlement of the Torreón, Mexico lease obligation on previously impaired assets. LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURESSEGMENT INFORMATION Quarter Ended Year Ended 4/26/2025 % of sales 4/27/2024 % of sales 4/26/2025 % of sales 4/27/2024 % of sales GAAP operating income (loss) Wholesale segment $ 10,120 2.5% $ 31,709 8.1% $ 82,213 5.6% $ 99,373 6.9% Retail segment 32,414 13.1% 32,170 14.1% 105,417 11.7% 111,682 13.1% Corporate and Other (13,007 ) N/M (13,782 ) N/M (51,793 ) N/M (60,259 ) N/M Consolidated GAAP operating income $ 29,527 5.2% $ 50,097 9.1% $ 135,837 6.4% $ 150,796 7.4% Adjusted items affecting operating income Wholesale segment $ 23,885 $ 1,729 $ 24,052 $ 7,715 Retail segment — 89 140 89 Corporate and Other 199 199 797 798 Consolidated adjusted items affecting operating income $ 24,084 $ 2,017 $ 24,989 $ 8,602 Adjusted operating income (loss) Wholesale segment $ 34,005 8.5% $ 33,438 8.5% $ 106,265 7.2% $ 107,088 7.4% Retail segment 32,414 13.1% 32,259 14.2% 105,557 11.7% 111,771 13.1% Corporate and Other (12,808 ) N/M (13,583 ) N/M (50,996 ) N/M (59,461 ) N/M Consolidated adjusted operating income $ 53,611 9.4% $ 52,114 9.4% $ 160,826 7.6% $ 159,398 7.8% N/M - Not Meaningful Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. 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