Latest news with #debtReduction
Yahoo
42 minutes ago
- Business
- Yahoo
Wolfspeed Takes Proactive Step to Strengthen Financial Foundation Anticipating Scalable, Profitable Growth
Proposed Pre-Packaged Plan of Reorganization Has Strong Support of Key Lenders Company Has ~$1.3B of Cash as of 3QFY25, Providing Sufficient Near-Term Liquidity to Support Customers and Pay Vendors Deal Summary – Expected Benefits: ~70% reduction in total debt; ~60% reduction in annual total cash interest expense Existing equity holders to receive 3% or 5% of new common equity Company expects to complete the restructuring process expeditiously by end of 3QCY25 Post-restructuring, Wolfspeed operations expected to be fully funded through cash flow generation Management team to focus on profitability and long-term growth as advisory team navigates restructuring process DURHAM, N.C., June 22, 2025--(BUSINESS WIRE)--Wolfspeed, Inc. (NYSE: WOLF) ("Wolfspeed" or the "Company") today announced that, as part of its efforts to proactively strengthen its capital structure, it entered into a Restructuring Support Agreement (the "RSA") with key lenders, including (i) holders of more than 97% of its senior secured notes, (ii) Renesas Electronics Corporation's wholly owned U.S. subsidiary and (iii) convertible debtholders holding more than 67% of the outstanding convertible notes. The transactions envisioned by the RSA are expected to reduce the Company's overall debt by approximately 70%, representing a reduction of approximately $4.6 billion, and reduce the Company's annual total cash interest payments by approximately 60%. By taking this proactive step, the Company expects to be better positioned to execute on its long-term growth strategy and accelerate its path to profitability. This marks the positive culmination of discussions between the Company and key lenders to restructure the Company's capital structure on an expedited basis and help to ensure Wolfspeed maintains its position as a leader in the silicon carbide market. "After evaluating potential options to strengthen our balance sheet and right-size our capital structure, we have decided to take this strategic step because we believe it will put Wolfspeed in the best position possible for the future," said Robert Feurle, Wolfspeed's Chief Executive Officer. "Wolfspeed has tremendous core strengths and great potential. We are a global leader in silicon carbide technology with an exceptional, purpose-built, fully automated 200mm manufacturing footprint, delivering cutting-edge products for our customers. A stronger financial foundation will enable us to focus acutely on innovation in rapidly scaling verticals undergoing electrification where quality, durability and efficiency matter most." Feurle continued, "As we move forward, we are grateful for the confidence and support of key lenders, who share our vision for the future and believe in our growth prospects. I also want to thank our incredibly talented team for their resilience and hard work, and our customers and partners for their ongoing support." Additional Information Regarding the RSA Key terms of the RSA are as follows: Pursuant to the transactions contemplated by the RSA, the Company will receive $275 million of new financing in the form of second lien convertible notes, fully backstopped by certain of its existing convertible debtholders. The RSA contemplates a paydown of its senior secured notes of $250 million at a rate of 109.875%, with certain modifications to reduce go-forward cash interest and minimum liquidity requirements. The RSA also contemplates an exchange of $5.2 billion of existing convertible notes and Renesas' existing loan for $500 million of new notes and 95% of the new common equity, subject to dilution from other equity issuances, with Renesas loan claims entitled to additional incremental consideration to the extent certain regulatory approvals are not obtained by an agreed upon deadline. Pursuant to the transactions, existing equity will be cancelled, and the existing equity holders will receive their pro rata share of 3% or 5% of new common equity, subject to dilution from other equity issuances and potential reduction from certain events. All other unsecured creditors are expected to be paid in the ordinary course of business. To implement the transactions envisioned by the RSA, the Company intends to solicit approval of the pre-packaged plan of reorganization and then file voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the near future. Wolfspeed expects to move through this process expeditiously and emerge by the end of third quarter calendar year 2025. Wolfspeed is continuing to operate and serve customers with leading silicon carbide materials and devices throughout the process. The Company plans to continue to pay vendors in the ordinary course of business for goods and services delivered throughout the restructuring process via an All-Trade Motion. Vendors are expected to be unimpaired in the process. Wolfspeed also intends to file customary motions with the Bankruptcy Court to support ordinary-course operations including, but not limited to, continuing employee compensation and benefits programs. Additional details regarding the RSA will be provided in the Company's Form 8-K to be filed with the U.S. Securities and Exchange Commission (the "SEC"). This press release does not constitute an offer to sell or purchase any securities, which would be made only pursuant to definitive documents and an applicable exemption from the Securities Act of 1933, as amended. This press release does not constitute a solicitation to vote on the bankruptcy plan. For additional information regarding the restructuring, please visit Wolfspeed's dedicated microsite at Advisors Latham & Watkins LLP and Hunton Andrews Kurth LLP are serving as legal counsel to Wolfspeed, Perella Weinberg Partners is serving as financial advisor and FTI Consulting is serving as restructuring advisor. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the senior secured noteholders and Moelis & Company is serving as the senior secured noteholders' financial advisor. Kirkland & Ellis LLP is serving as legal counsel to Renesas Electronics Corporation, PJT Partners is serving as its financial advisor, and BofA Securities is serving as its structuring advisor. Ropes & Gray LLP is serving as legal counsel to the convertible debtholders and Ducera Partners is serving as financial advisor to the convertible debtholders. About Wolfspeed, Inc. Wolfspeed (NYSE: WOLF) leads the market in the worldwide adoption of silicon carbide technologies that power the world's most disruptive innovations. As the pioneers of silicon carbide, and creators of the most advanced semiconductor technology on earth, we are committed to powering a better world for everyone. Through silicon carbide material, Power Modules, Discrete Power Devices and Power Die Products targeted for various applications, we will bring you The Power to Make It Learn more at Forward Looking Statements: This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed's actual results to differ materially from those indicated in the forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, including estimates, forecasts and projections about possible or assumed future results of Wolfspeed's business, financial condition, liquidity, results of operations, plans, objectives and Wolfspeed's industry and market growth. Words such as "could," "will," "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," "forward" or "continue" and similar expressions are used to identify forward-looking statements. All statements in this press release that are not historical are forward-looking statements, including statements regarding the timing and implementation of the transactions contemplated by the RSA, the intent to solicit approval of the pre-packaged plan of reorganization (the "Plan") to implement the transactions contemplated by the RSA and file voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the "Chapter 11 Cases"), Wolfspeed's ability to continue operating in the ordinary course, including continuing to serve customers and pay vendors in the ordinary course, the potential benefits of the transactions contemplated by the RSA and the potential effects of such transactions on Wolfspeed's financial position, profitability and growth. Actual results could differ materially due to a number of factors, including but not limited to, risks and uncertainties associated with the anticipated Chapter 11 Cases; the effects of the anticipated Chapter 11 Cases on Wolfspeed and Wolfspeed's relationship with its various stakeholders, including vendors and customers; Wolfspeed's ability to develop and implement the transactions contemplated by the RSA, whether the Plan will be approved by the Bankruptcy Court and the ultimate outcome of the anticipated Chapter 11 Cases in general; the length of time Wolfspeed will operate under the anticipated Chapter 11 Cases; the potential adverse effects of the anticipated Chapter 11 Cases on Wolfspeed's liquidity and results of operations; if the RSA is terminated, Wolfspeed's ability to confirm and consummate the Plan could be materially and adversely affected; the RSA is subject to significant conditions and milestones that may be difficult for Wolfspeed to satisfy; the timing or amount of any recovery, if any, to Wolfspeed's stakeholders; uncertainty regarding Wolfspeed's ability to retain key personnel; increased administrative and legal costs related to the anticipated Chapter 11 Cases; changes in Wolfspeed's ability to meet its financial obligations during the Chapter 11 Cases and to maintain contracts that are critical to its operations; the effectiveness of the overall restructuring activities pursuant to the anticipated Chapter 11 Cases and any additional strategies that Wolfspeed may employ to address its liquidity and capital resources and achieve its stated goals; the actions and decisions of equityholders, creditors, regulators and other third parties that have an interest in the anticipated Chapter 11 Cases, which may interfere with the ability to confirm and consummate the Plan and implement the transactions contemplated by the RSA; ongoing uncertainty in global economic and geopolitical conditions, such as the ongoing military conflict between Russia and Ukraine and the ongoing conflicts in the Middle East; changes in progress on infrastructure development or changes in customer or industrial demand that could negatively affect product demand, including as a result of an economic slowdown or recession, collectability of receivables and other related matters if consumers and businesses defer purchases or payments, or default on payments; risks associated with Wolfspeed's expansion plans, including design and construction delays, cost overruns, the timing and amount of government incentives actually received, including, among other things, any direct grants and tax credits, issues in installing and qualifying new equipment and ramping production, poor production process yields and quality control and potential increases to Wolfspeed's restructuring costs; Wolfspeed's ability to obtain additional funding, including, among other things, from government funding, public or private equity offerings or debt financings, on favorable terms and on a timely basis, if at all; Wolfspeed's ability to take certain actions with respect to its capital and debt structure; the risk that Wolfspeed does not meet its production commitments to those customers who provide Wolfspeed with capacity reservation deposits or similar payments; the risk that Wolfspeed may experience production difficulties that preclude it from shipping sufficient quantities to meet customer orders or that result in higher production costs, lower yields and lower margins; Wolfspeed's ability to lower costs; the risk that Wolfspeed's results will suffer if it is unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand or scaling back its manufacturing expenses or overhead costs quickly enough to correspond to lower than expected demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; product mix; risks associated with the ramp-up of production of Wolfspeed's new products, and Wolfspeed's entry into new business channels different from those in which it has historically operated; Wolfspeed's ability to convert customer design-ins to design-wins and sales of significant volume, and, if customer design-in activity does result in such sales, when such sales will ultimately occur and what the amount of such sales will be; the risk that the markets for Wolfspeed's products will not develop as it expects, including the adoption of Wolfspeed's products by electric vehicle manufacturers and the overall adoption of electric vehicles; the risk that the economic and political uncertainty caused by the tariffs imposed or announced by the United States on imported goods, and corresponding tariffs and other retaliatory measures imposed by other countries (including China) in response, may continue to negatively impact demand for Wolfspeed's products; the risk that Wolfspeed's or its channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, including production and product mix, which can result in increased inventory and reduced orders as Wolfspeed experiences wide fluctuations in supply and demand; risks related to international sales and purchases; risks resulting from the concentration of Wolfspeed's business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that Wolfspeed's investments may experience periods of significant market value and interest rate volatility causing it to recognize fair value losses on Wolfspeed's investment; the risk posed by managing an increasingly complex supply chain (including managing the impacts of supply constraints in the semiconductor industry and meeting purchase commitments under take-or-pay arrangements with certain suppliers) that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; risks relating to outbreaks of infectious diseases or similar public health events, including the risk of disruptions to Wolfspeed's operations, supply chain, including its contract manufacturers, or customer demand; the risk Wolfspeed may be required to record a significant charge to earnings if its remaining goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; Wolfspeed's ability to complete development and commercialization of products under development; the rapid development of new technology and competing products that may impair demand or render Wolfspeed's products obsolete; the potential lack of customer acceptance for Wolfspeed's products; risks associated with ongoing litigation; the risk that customers do not maintain their favorable perception of Wolfspeed's brand and products, resulting in lower demand for its products; the risk that Wolfspeed's products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs; risks associated with strategic transactions; the risk that Wolfspeed is not able to successfully execute or achieve the potential benefits of Wolfspeed's efforts to enhance its value; the substantial doubt about Wolfspeed's ability to continue as a going concern; and other factors discussed in Wolfspeed's filings with the SEC, including Wolfspeed's report on Form 10-K for the fiscal year ended June 30, 2024, and subsequent reports filed with the SEC. These forward-looking statements represent Wolfspeed's judgment as of the date of this press release. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Wolfspeed disclaims any intent or obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise. View source version on Contacts Investor Contact: Wolfspeed Investor Relationsinvestorrelations@ Media Contact: Rachel Chesley / Rose Templewolfspeedforward@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Prediction Occidental Petroleum Will Soar Over the Next 5 Years. Here's 1 Reason Why.
Occidental Petroleum has taken on a lot of debt to make acquisitions over the years. The oil company recently hit its near-term debt-reduction target. Achieving the company's next debt goal would transfer a lot of value from creditors to shareholders. 10 stocks we like better than Occidental Petroleum › Occidental Petroleum (NYSE: OXY) has a multitude of potential upside catalysts. From higher oil prices to Warren Buffett's buying to its non-oil growth drivers, the oil company has a lot of positives. However, I see one factor potentially playing a major role in driving up Occidental's stock price in the coming years -- deleveraging its balance sheet. Here's why I think it could give the oil stock the fuel to soar over the next five years. Debt has been an issue for Occidental Petroleum over the years. It borrowed a boatload of money in 2019 to buy Anadarko Petroleum, but that move backfired the next year when crude prices crashed. The company has been steadily reducing debt since then to shore up its financial position. However, it couldn't resist the opportunity to buy CrownRock last year. It spent $12 billion on the oil producer, $10.3 billion of which it funded with debt. Occidental has worked hard to reduce debt following that deal. It has repaid $6.8 billion since the third quarter of last year, exceeding its target of repaying $4.5 billion of debt principal within 12 months of closing the CrownRock deal well ahead of schedule. The company's next debt target is to reduce its principal balance below $15 billion. It ended the first quarter with over $25 billion of debt. Occidental plans to sell non-core assets and allocate excess free cash flow after funding capital projects and dividends to repay debt. This strategy will steadily shift value from creditors to equity holders. The company has a market cap of around $45 billion and more than $75 billion enterprise value, so a $10 billion shift in value from debt holders to equity investors could boost its value by over 20%. On top of the value shift, the debt reduction would reduce Occidental's interest expenses, boosting its earnings and free cash flow. Debt reduction is one of Occidental's many upside catalysts. I think it could be a key driver of the stock price in the coming year. Before you buy stock in Occidental Petroleum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Occidental Petroleum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy. Prediction Occidental Petroleum Will Soar Over the Next 5 Years. Here's 1 Reason Why. was originally published by The Motley Fool 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
Globe and Mail
5 days ago
- Business
- Globe and Mail
Where Will Energy Transfer Be in 5 Years?
Energy Transfer (NYSE: ET) has changed a lot over the past five years. In 2020, the master limited partnership's (MLP) financial profile had weakened to the point that it needed to slash its distribution by 50% to retain additional cash to fund its expansion projects and repay debt. Fast-forward five years, and the midstream giant is in the best financial shape in its history. It reduced debt and increased its earnings by more than 50%. Its improving financial flexibility has enabled it to raise its cash distribution well past its prior peak. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The MLP expects to continue growing over the next several years. Here's a look at where Energy Transfer is on track to be by 2030. The coming growth spurt Energy Transfer is currently investing heavily in expanding its energy midstream network. The company plans to invest $5 billion into capital projects this year, an increase from $3 billion last year. Fueling the higher spending level is a wave of expansion projects it has approved over the past few months. The biggest project is the Hugh Brinson Pipeline, which will transport natural gas from the Permian Basin to market hubs. The company has started work on the first phase of the 400-mile pipeline that will have the capacity to ship 1.5 billion cubic feet per day when it enters service at the end of next year. Energy Transfer is working on securing customers for phase two, which would increase its capacity to 2.2 billion cubic feet per day. The combined cost for both phases is $2.7 billion. Energy Transfer is also building more natural gas processing plants, expanding its Nederland Flexport terminal, and building another NGL fractionator. These and other projects have in-service dates from mid-2025 through the end of 2026. Given that time frame, "we continue to expect the majority of the earnings growth from these projects to significantly ramp up in 2026 and 2027," stated co-CEO Tom Long on the company's first-quarter earnings conference call. Because of that, Energy Transfer should have plenty of fuel to continue increasing its high-yielding distribution (currently over 7%) for at least the next several years. Multiple growth catalysts Energy Transfer's current backlog of expansion projects should all enter service by the end of next year. However, that doesn't mean the MLP is running low on fuel. It has a large pipeline of projects under development. The biggest is its long-delayed Lake Charles LNG export terminal. After encountering many roadblocks, Energy Transfer is getting close to finally making a final investment decision on this project. It has signed several commercial contracts backing the project. On top of that, it secured MidOcean Energy as a joint development partner (30% equity interest). Building Lake Charles LNG would enhance and extend Energy Transfer's growth outlook. It would earn incremental income from its retained stake in Lake Charles LNG. On top of that, it would benefit from increased volumes flowing through its natural gas pipeline network to Lake Charles, which would provide it with substantial incremental cash flows. Lake Charles is one of many expansion projects the company is currently developing. It sees three major catalysts fueling its growth over the next several years: Continued strong Permian Basin volume growth Increasing natural gas power demand Strong global demand for U.S. NGL production The company is seeing significant demand for natural gas from new and existing customers. It has requests to connect more than 60 power plants to its gas pipelines and over 200 data centers. It has already signed a contract to supply gas to CloudBurst's artificial intelligence (AI) data center in Texas. Energy Transfer is also exploring lower-carbon investment opportunities (carbon capture and sequestration and blue ammonia). In addition, the company has a long history of making accretive strategic acquisitions. It has made several deals over the past five years, including Enable Midstream (2021), Crestwood Equity Partners (2023), and WTG Midstream (2024). Given its financial strength, Energy Transfer has ample flexibility to continue making acquisitions over the next five years. A bigger company with an even higher distribution Energy Transfer will likely be a much bigger company in five years. It has several expansion projects under construction and more in development. It also has the financial flexibility to continue its strategy of consolidating the energy midstream sector. That growth should give the MLP more fuel to increase its high-yielding distribution. The MLP aims to raise its payout by 3% to 5% per year. Given what seems ahead, Energy Transfer will likely be a much bigger company with an even higher distribution payment in five years. That growth and income should give it the fuel to produce attractive total returns in the coming years, making it look like a compelling long-term investment opportunity. Should you invest $1,000 in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Zawya
6 days ago
- Business
- Zawya
Boeing executive says don't expect any more big assets sales at this time
Boeing is not planning any more big asset sales at this time, Chris Raymond, the head of its global services business, said at the Paris Airshow on Tuesday. Battling to recover from a series of crises, CEO Kelly Ortberg has been selling non-core assets to reduce Boeing's debt. In April, the U.S. planemaker struck a deal in April to sell parts of its Digital Aviation Solutions business, including navigation unit Jeppesen, to private equity firm Thoma Bravo for $10.55 billion. (Reporting by Tim Hepher. Editing by Mark Potter)
Yahoo
11-06-2025
- Business
- Yahoo
Pyxus International Inc (PYYX) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Debt ...
Revenue: Increased by 22% to $2.5 billion for fiscal year 2025. Gross Profit: Increased by 10% to $343 million for fiscal 2025. Operating Income: Increased by 12% to $153 million for the year. Net Income: Achieved $15 million compared to $3 million in the prior year. Adjusted EBITDA: Reached $208 million, up from $194 million in the prior year. Adjusted Free Cash Flow: Generated $152 million during the fiscal year. Debt Reduction: Reduced long-term debt by approximately 25% since March 2024. Fourth Quarter Revenue: Increased by 25% to $502 million. Fourth Quarter Gross Profit: Grew to $67 million from $58 million in the prior year. Fourth Quarter Operating Income: More than doubled to $14 million from $7 million last year. SG&A Expenses: Increased to $171 million from $161 million in the prior year. Interest Coverage Ratio: Improved to 1.6 times from 1.5 times in fiscal year 2024. Inventory: Total inventory at year-end was $762 million compared to $932 million last year. Warning! GuruFocus has detected 6 Warning Signs with PYYX. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pyxus International Inc (PYYX) reported a 22% increase in full-year sales, reaching $2.5 billion. The company achieved a 10% increase in annual gross profit, amounting to $343 million for fiscal 2025. Operating income rose by 12% to $153 million, and net income increased to $15 million from $3 million in the prior year. Pyxus International Inc (PYYX) successfully reduced long-term debt by approximately 25% since March 2024. The company reported a significant improvement in its credit profile, with leverage reduced from 4.8 times to 3.7 times, the lowest in over a decade. SG&A expenses increased to $171 million, driven by higher personnel costs and non-cash equity-based compensation expenses. Interest expense remained consistent with the prior year due to increased borrowings from seasonal lines of credit. The company anticipates sales for fiscal year 2026 to be weighted towards the second half, indicating potential volatility in cash flow. Despite debt reduction, the company still faces high-cost debt, with no immediate plans for refinancing. Inventory levels were low at the end of fiscal 2025, necessitating significant investment in inventory replenishment in fiscal 2026. Q: Could you provide more color on why you'd expect sales to be weighted towards the second half of the year? Also, do you expect EBITDA to be weighted to the second half of the year as well? A: As we ended the fiscal year with low inventories, we are replenishing these in the first half of the year. Shipments are expected to be more weighted to the second half as we purchase, commit, process, and then ship. Both volume and EBITDA are driven by these characteristics. - J. Pieter Sikkel, President, CEO Q: Your guidance is for revenue to be down slightly year over year at the midpoint, and EBITDA up mid-single digits. What does that assume for full-year volumes and the pricing environment? A: We anticipate larger crop sizes leading to reduced pricing. We are positioned to purchase tobacco according to quality and transfer those prices to customers. This results in increased volumes, higher gross margins, and reflects in our guidance. - J. Pieter Sikkel, President, CEO Q: Given your lower-than-normal inventory balance at the end of the year, what's your view on free cash flow? Can you sustain the lower net debt balance? A: We expect a more normalized purchasing pattern and will continue our disciplined working capital approach. We were cash generative before working capital changes, highlighting our focus on disciplined management and improved operating performance. - Dustin Styons, Interim CFO Q: Could you update us on what's happening with the Philip Morris International heat-not-burn product in the United States? A: We are involved in the supply chain for these products, which aligns with our strategy to meet reduced risk product requirements. We see this as positive for our business, but we don't have a specific launch date for the U.S. yet. - J. Pieter Sikkel, President, CEO Q: I noticed there was no entry for the share repurchase in your cash flow statement. Why is that? A: The repurchase is captured in the statement of stockholders' equity and is included in the cash flow, though not highlighted separately. It is clear on the shareholders' equity statement. - Dustin Styons, Interim CFO Q: With improved credit metrics, what are your thoughts on improving your capital structure or refinancing high-cost debt? A: We are continuing to evaluate our strategic options, but there are no key updates related to refinancing efforts at this time. - Dustin Styons, Interim CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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