Latest news with #non-IFRS
Yahoo
2 days ago
- Business
- Yahoo
LevelJump Announces 2024 Financial Results
Toronto, Ontario--(Newsfile Corp. - June 20, 2025) - LevelJump Healthcare Corp. (TSXV: JUMP) ("LevelJump" or the "Company"), is pleased to announce its financial results for the year ended December 31, 2024. Financial and Operational Highlights Revenues were $17.7 million in 2024 compared to $12.6 million in revenues for 2023, a year over year revenue increase of 41%. Canadian Teleradiology Services, Inc., the Company's 100% owned subsidiary had EBITDA for 2024 of $3.35 million. 2024 Financial Results for fourth quarter and year Revenues of $4.8 million in Q4 2024 and $17.7 million for the year 2024 with a net profit of $1.95 million for Q4 2024 and a net profit of $1.2 million for the year 2024. EBITDA of $395,936 for Q4 2024 and $1,545,298 for the year 2024. Subsequent Events Subsequent to the year end, the Company entered an agreement to acquire two additional diagnostic imaging outpatient clinic locations in Calgary, Alberta. The transaction is expected to close towards the end of July 2025. See the Company's news release dated June 13, 2025. Management Comments "2024 was a transformative year for our Company, marked by significant growth, particularly within our clinic operations," said Mitch Geisler, CEO. "Our year-over-year revenue increased by more than 40%, and we achieved strong EBITDA performance. We are now interpreting imaging scans for approximately 200,000 patients annually across all operations. Our focus remains on driving organic growth and advancing our long-term vision for continued expansion." Non-IFRS Financial Measures This news release contains financial terms (such as adjusted EBITDA) that are not considered in IFRS. Such financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Company. The Company's determination of these non-IFRS measures may differ from other reporting issuers and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS. These financial measures are included because management uses this information to analyze operating performance and liquidity. For further details on the results, please refer to LevelJump's Management, Discussion and Analysis and Consolidated Financial Statements for the year ended December 31, 2024, which are available on the Company's website ( and under the Company's profile on SEDAR+ ( About LevelJump Healthcare LevelJump Healthcare Corp., (TSXV: JUMP) provides telehealth solutions to client hospitals and imaging centers through its Teleradiology division, as well as in person radiology services through its Diagnostic Centres. JUMP focuses primarily on critical care for urgent and emergency patients, establishing integral relationships in the communities we serve. ON BEHALF OF THE BOARD OF DIRECTORS OFLEVELJUMP HEALTHCARE CORP. Mitchell GeislerChief Executive Officerinfo@ CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company's business plans and the outlook of the Company's industry. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities laws. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, Canadian Teleradiology Services, Inc., their securities, or their respective financial or operating results (as applicable). Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction. To view the source version of this press release, please visit 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
Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
Diversified Royalty Corp. Announces Acquisition of US-Based Cheba Hut Franchising, Inc.'s Trademarks, a 10% Dividend Increase, and an Increase in Size of its Acquisition Facility
VANCOUVER, British Columbia, June 17, 2025 (GLOBE NEWSWIRE) — Diversified Royalty Corp. (TSX: DIV and (the 'Corporation' or 'DIV') is pleased to announce that it has acquired the trademarks and certain other intellectual property used by Cheba Hut Franchising, Inc. ('Cheba Hut') of Fort Collins, Colorado, adding a ninth royalty stream (and the second based in the United States) to DIV's portfolio. All dollar amounts in this news release, unless specifically denominated in U.S. dollars, are represented in Canadian dollars. Highlights 1. Pro-forma adjusted revenue is a non-IFRS financial measure and as such, does not have a standardized meaning under IFRS. For additional information, refer to 'Non-IFRS Measures' in this news release. Acquisition Overview DIV and its wholly-owned subsidiary Cheeb Royalties Limited Partnership ('Cheeb LP') entered into an acquisition agreement dated June 17, 2025 (the 'Acquisition Agreement') with Cheba Hut and an affiliate of Cheba Hut pursuant to which Cheeb LP acquired (the 'Acquisition') Cheba Hut's worldwide trademarks portfolio and certain other intellectual property rights utilized by Cheba Hut in its fast casual, toasted sub sandwich restaurants (the 'Cheba Rights') for a purchase price (the 'Purchase Price'), of US$36 million cash. The Purchase Price was funded with (i) approximately US$18 million drawn from DIV's amended acquisition facility (further details below) (the 'Acquisition Facility'), (ii) approximately US$8 million from DIV's cash on hand, (iii) US$5 million drawn from a new senior credit facility issued to Cheeb LP (the 'Cheeb Credit Facility'), and (iv) US$5 million drawn from a new senior term credit facility issued to DIV (the 'Additional Term Facility'). Immediately following the closing of the Acquisition, DIV licensed the Cheba Rights in the United States back to Cheba Hut for 50 years, in exchange for an initial royalty payment of US$4 million per annum (the 'Royalty' and together with the Acquisition, the 'Transaction'). The Royalty will be automatically increased at a rate equal to the greater of 3.5% and the U.S. CPI + 1.5% per year without any further consideration payable by DIV or Cheeb LP. Cheba Hut may also increase the annual royalty payable on April 1st of each year following the closing (each an 'Adjustment Date') subject to Cheba Hut satisfying certain royalty coverage tests. The amount of each royalty increase cannot be less than US$500,000 per annum and must, in respect of amounts over that threshold, be in increments of US$100,000 per annum. In consideration for a royalty increase on an Adjustment Date, Cheeb LP will pay an amount to Cheba Hut in cash, based on a multiple between 7 and 8 times (depending on certain conditions being met) the incremental annual royalty purchased, as additional consideration for the Cheba Rights. Payment of the Royalty will be secured by a general security agreement granted by Cheba Hut to Cheeb LP, and by secured corporate guarantees to be granted to Cheeb LP by several affiliates of Cheba Hut. The Acquisition is expected to increase DIV's tax pools by approximately $51 million to a total of approximately $424 million, which can be depreciated over time to reduce DIV's cash taxes. Amounts paid for incremental annual royalties will also increase DIV's tax pools. Founded in 1998, Cheba Hut has 77 fast casual, toasted sub sandwich restaurants in the US. All of Cheba Hut's locations are franchised, except for two corporate stores and substantially all future growth is currently expected to result from opening additional franchised locations. Cheba Hut had US$149 million of system sales2 and SSSG2 of 5% in 2024. Cheba Hut is forecasting over US$187 million in system sales2 in the fiscal year ended December 31, 2025. 2. System sales and same store sales growth (SSSG) are supplementary financial measures and as such, do not have standardized meanings under IFRS. For additional information, refer to 'Non-IFRS Measures' in this news release. Sean Morrison, Chief Executive Officer of DIV, stated, 'The Cheba Hut trademark acquisition and royalty agreement adds a ninth royalty stream to DIV's portfolio, representing approximately 7% of DIV's pro-forma adjusted revenue3 and is another step in our strategy of purchasing royalties from a diverse group of proven multi-location businesses and franchisors. We believe Cheba Hut's impressive track record of growth is a result of its strong store-level economics, quality of its franchisees and experience of its management team. Scott Jennings, the founder of Cheba Hut, and his management team represent a great partner for DIV, as they strongly believe in the continued success of Cheba Hut over the long term and therefore partnering with DIV was far superior to selling equity ownership. We look forward to working with Scott and Cheba Hut's management team to continue expanding the business across the U.S. DIV has worked to promote its royalty model in the U.S. market and now, with its second US-based royalty transaction, is building significant momentum in that market. Such continued momentum in the U.S. franchisor market will become significant to DIV as it scales its business going forward. Further, DIV's strong balance sheet (cash on hand, under-levered existing royalty LP's, an unused acquisition facility) enabled it to fund the Transaction without the need to raise equity. DIV's less than 100% payout ratio4, automated DRIP program and ability to refinance existing LP's will enable it to substantially pay down the acquisition facility within 12 months. This is a game-changer for DIV as all prior trademarks acquisitions have been funded concurrently, or shortly thereafter, with a sizeable equity raise.' Scott Jennings, stated, 'DIV understands and believes that leaving us in control of our company keeps us in the best position to sustain our controlled growth. In addition, we can continue to take care of our product, partners, crew, and most importantly our CUSTOMERS the way we have for the last 27 years. We thank DIV for believing in Cheba Hut and helping us stay in excellent position to keep our soul intact for the next 50 years and beyond!!!' 3. Pro-forma adjusted revenue is a non-IFRS financial measure, and as such, does not have a standardized meaning under IFRS. For additional information, refer to 'Non-IFRS Measures' in this news release. Amendment to Acquisition Facility DIV amended its Acquisition Facility to increase the size from $50 million to $70 million and extend the maturity date to May 30, 2027, and thereafter to June 17, 2028 (if certain conditions are met). DIV and Cheeb LP Credit Facilities Cheeb LP financed US$5 million of the Purchase Price with new bank debt having a term of three years from closing. The Cheeb Credit Facility is non-amortizing and has a floating interest rate equal to SOFR + 2.5% per annum; however, DIV will have 90 days following closing to effectively fix the interest rate on 75% of the amount borrowed under this facility through an interest rate swap. The Cheeb Credit Facility is secured by the Cheba Rights and the Royalty payable by Cheba Hut, and has covenants customary for this type of a credit facility. DIV financed approximately US$18 million of the Purchase Price from the Acquisition Facility as amended and described above. The approximately US$18 million drawn on the Acquisition Facility is interest-only for twelve months and thereafter amortizes over a 60-month period. In connection with the Transaction, DIV financed US$5 million of the Purchase Price from an Additional Term Facility of US$5 million with a term of approximately 18 months. The Additional Term Facility is non-amortizing and has a floating interest rate based on SOFR plus a spread based on prevailing market rates. The Additional Term Facility is secured by a general security interest over the assets of the Corporation and, if requested by the lender, may be secured by specific assignments of certain material agreements entered into by the Corporation from time to time, and has covenants customary for this type of credit facility. DIV intends to pay down the Acquisition Facility through a combination of cash flows, debt refinancings and/or capital markets transactions. Dividend Policy Increase DIV's board of directors has approved an increase in DIV's dividend policy to increase its annualized dividend from 25.0 cents per share to 27.5 cents per share effective July 1, 2025, an increase of 10%. DIV estimates its pro-forma payout ratio4 will be approximately 94.9% (pro-forma payout ratio, net of DRIP is approximately 83.0%)4. 4. Pro-forma payout ratio and pro-forma payout ratio, net of DRIP are non-IFRS ratios, and as such, do not have standardized meanings under IFRS. For additional information, refer to 'Non-IFRS Measures' in this news release. Investor Conference Call Management of DIV will host a conference call on Wednesday, June 18, 2025, at 7:00 am Pacific Time (10:00 am Eastern Time). To participate by telephone across Canada, call toll free at 1 (800) 717-1738 or 1 (289) 514-5100 (conference ID 02753). The presentation will be followed by a question-and-answer session. An archived telephone recording of the call will be available until Wednesday, September 17, 2025, by calling 1 (888) 660-6264 or 1 (289) 819-1325 (playback passcode: 02753 #). The management presentation for the conference call will be available on DIV's website prior to the call. Alternatively, the link to the webcast of the conference can be found below: About Diversified Royalty Corp. DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. DIV's objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. DIV currently owns the Mr. Lube + Tires, AIR MILES®, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, BarBurrito and Cheba Hut trademarks. Mr. Lube + Tires is the leading quick lube service business in Canada, with locations across Canada. AIR MILES® is Canada's largest coalition loyalty program. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is a home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is one of Canada's leading franchisee supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive janitorial, building cleaning, and office cleaning services primarily in the United States. BarBurrito is the largest quick service Mexican restaurant food chain in Canada. Cheba Hut is a fast casual toasted sub sandwich franchise with locations across 19 U.S. states. DIV's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. DIV intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows. Forward Looking Statements Certain statements contained in this news release may constitute 'forward-looking information' or 'financial outlook' within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. The use of any of the words 'anticipate', 'continue', 'estimate', 'expect', 'intend', 'may', 'will', 'project', 'should', 'believe', 'confident', 'plan' and 'intends' and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specifically, forward-looking information or financial outlook in this news release includes, but are not limited to, statements made in relation to: the increase in DIV's annual dividend; statements related to the expected tax implications of the Acquisition on DIV; substantially all future growth for Cheba Hut is currently expected to result from opening additional franchised locations; Cheba Hut's forecasted system sales in the fiscal year ended December 31, 2025; the expected financial impact of the Transaction on DIV, including on its pro-forma payout ratio, pro-forma payout ratio, net of DRIP and pro-forma adjusted revenue; DIV intends to pay down the Acquisition Facility through a combination of cash flows, debt refinancings and/or capital markets transactions; the continued expansion in the U.S. franchisor market and the expected effect on DIV and its business; DIV's intention to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time; and DIV's corporate objectives. The forward-looking information and financial outlook contained herein involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of DIV to differ materially from those anticipated or implied therein. DIV believes that the expectations reflected in the forward-looking information and financial-outlook are reasonable but no assurance can be given that these expectations will prove to be correct. In particular there can be no assurance that: DIV will realize the expected benefits of the Transaction, or that it will be accretive; the actual tax implications of the Acquisition and the Transaction on DIV will be consistent with the tax implications expected by DIV; Cheba Hut will pay the Royalty and otherwise comply with its obligations under the agreements governing the Transaction; Cheba Hut will not be adversely affected by the other risks facing its business; DIV may not complete any further royalty acquisitions; DIV may not increase its dividend in accordance with the currently expected timing or amounts; DIV will be able to make monthly dividend payments to the holders of the DIV common shares; or DIV will achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that forward-looking information and financial outlook included in this news release are not guarantees of future performance, and such forward-looking information and financial outlook should not be unduly relied upon. More information about the risks and uncertainties affecting DIV's business and the businesses of its royalty partners can be found in the 'Risk Factors' section of its Annual Information Form dated March 24, 2025 and the 'Risk Factors' section of its management's discussion and analysis for the three months ended March 31, 2025 that are available under DIV's profile on SEDAR+ at . In formulating the forward-looking statements contained herein, management has assumed that, among other things, Cheba Hut will be successful in meeting its stated corporate objectives, including its growth targets; DIV will realize the expected benefits of the Transaction; the Cheba Hut business will not suffer any material adverse effect; the actual tax implications of the Acquisition, the Transaction and the payment of the Royalty will be consistent with the tax implications expected by DIV; and the business and economic conditions affecting DIV and Cheba Hut will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity and regulations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect. To the extent any forward-looking information in this news release constitute a 'financial outlook' within the meaning of applicable securities laws, such information is being provided to assist investors in understanding the potential financial impact of the Transaction, the Cheeb Credit Facility, the Additional Term Facility and the dividend increase and may not appropriate for other purposes. All of the forward-looking information and financial outlook disclosed in this news release is qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments contemplated thereby will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, DIV contemplated by such forward-looking information and financial outlook contained herein. The forward-looking information and financial outlook included in this news release is made as of the date of this news release and DIV assumes no obligation to publicly update or revise such information to reflect new events or circumstances, except as may be required by applicable law. Non-IFRS Measures Management believes that disclosing certain non-IFRS financial measures, non-IFRS ratios and supplementary financial measures provides readers with important information regarding the Corporation's financial performance and its ability to pay dividends, the performance of its royalty partners and the financial impacts to DIV of the Transaction. By considering these measures in combination with the most closely comparable IFRS measure, management believes that investors are provided with additional and more useful information about the Corporation, its royalty partners and the Transaction than investors would have if they simply considered IFRS measures alone. The non-IFRS financial measures, non-IFRS ratios and supplementary financial measures used in this news release do not have standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as a substitute or an alternative to net income or cash flows from operating activities as determined in accordance with IFRS. The non-IFRS financial measure used in this news release is pro-forma adjusted revenue, which includes as components the following non-IFRS financial measures: DIV royalty entitlement, adjusted revenue and run-rate adjusted revenue. Run-rate adjusted revenue is calculated as the sum of DIV's adjusted revenue for each of the three months ended December 31, 2024 and March 31, 2025, multiplied by two for purposes of annualizing such amount, plus the amount of Mr. Lube's roll-in of royalties from 5 net new store locations on May 1, 2025. Pro-forma adjusted revenue is calculated as the run-rate adjusted revenue plus the amount of the initial adjusted revenue contribution payable by Cheba Hut. DIV management believes run-rate adjusted revenue provides useful information as it provides supplemental information regarding DIV's consolidated revenues, and pro-forma adjusted revenue provides useful information as it provides supplemental information regarding DIV's consolidated revenues after giving effect to the Transaction. For an explanation of the composition of DIV royalty entitlement and adjusted revenue, including a reconciliation to the most directly comparable IFRS measure, see the disclosure under the heading 'Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures' in DIV's management discussion and analysis for the three months and year ended December 31, 2024 and three months ended March 31, 2025, copies of which are available under DIV's profile on SEDAR+ at , which is incorporated by reference herein. The following table reconciles revenue for the three months ended December 31, 2024 and March 31, 2025 to pro-forma adjusted revenue and run-rate adjusted revenue: 1) Adjustment for Mr. Lube's roll-in of royalties from 5 net new store locations on May 1, 2025, assuming incremental annual net system sales (system sales is a non-IFRS supplementary measure and as such, does not have a standardized meaning under IFRS - see the disclosure under the heading 'Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures' in DIV's management discussion and analysis for the three months and year ended December 31, 2024 and three months ended March 31, 2025) of $8.4 million, multiplied by 7.95% royalty rate 2) Cheba Hut contribution is calculated as the initial adjusted revenue contribution of USD$4,000,000 payable by Cheba Hut, multiplied by a USD to CAD exchange rate of $1.4:1 The non-IFRS ratios used in this news release are pro-forma payout ratio and pro-forma payout ratio, net of DRIP, which include as components the following non-IFRS financial measures: EBITDA, normalized EBITDA, distributable cash, run-rate distributable cash, pro-forma distributable cash, pro-forma dividends declared and DIV royalty entitlement net of NND Royalties LP expenses. Run-rate distributable cash is calculated as the sum of DIV's distributable cash for each of the three months ended December 31, 2024 and March 31, 2025, multiplied by two for purposes of annualizing such amount, plus the after-tax amount of Mr. Lube's roll-in of royalties from 5 net new store locations on May 1, 2025, less adjustments for interest income and current tax. Pro-forma distributable cash is calculated as run-rate distributable cash plus the amount of the initial adjusted revenue contribution payable by Cheba Hut, less incremental operating expenses, interest expenses and taxes. DIV management believes run-rate distributable cash provides useful information as it provides supplemental information regarding DIV's ability to generate cash available for payment of dividends after adjusting for non-recurring expenses and pro-forma distributable cash provides useful information as it provides supplemental information regarding DIV's ability to generate cash available for payment of dividends after giving effect to the Transaction. Pro-forma dividends declared is calculated as DIV's new annualized dividend of $0.275 per share multiplied by the number of DIV common shares issued and outstanding as of March 31, 2025. Pro-forma dividends declared is used to calculate the pro-forma payout ratio, and thus management believes that it provides useful information as to DIV's expected future aggregate annualized dividend payments. Pro-forma payout ratio is calculated as pro-forma dividends declared divided by pro-forma distributable cash. Pro-forma payout ratio, net of DRIP is calculated as the difference of (X) pro-forma dividends declared less (Y) dividends paid by DIV in the form of DIV common shares issued under DIV's dividend reinvestment plan (' DRIP ') at an estimated participation rate of 12.5%, divided by pro-forma distributable cash. For an explanation of the composition of EBITDA, normalized EBITDA, distributable cash and DIV royalty entitlement net of NND Royalties LP expenses, including a reconciliation to the most directly comparable IFRS measure, see the disclosure under the heading 'Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures' in DIV's management discussion and analysis for the three months and year ended December 31, 2024 and three months ended March 31, 2025, copies of which are available under DIV's profile on SEDAR+ at , which is incorporated by reference herein. DIV management believes that (i) pro-forma payout ratio provides useful information as it provides supplemental information regarding DIV's ability to generate cash to pay dividends following the completion of the Transaction and the increase to the dividend, and (ii) pro-forma payout ratio, net of DRIP provides useful information as it provides supplemental information regarding DIV's ability to generate cash to pay dividends following the completion of the Transaction and the increase to the dividend after adjusting for dividends paid by DIV in the form of DIV common shares issued under the DRIP. The following table reconciles net income for the three months ended December 31, 2024 and March 31, 2025, to run-rate distributable cash and pro-forma distributable cash and illustrates the calculation of pro-forma payout ratio and pro-forma payout ratio, net of DRIP: 1) Adjustment for Mr. Lube's roll-in of royalties from 5 net new store locations on May 1, 2025, assuming incremental annual net system sales (system sales is a non-IFRS supplementary measure and as such, does not have a standardized meaning under IFRS - see the disclosure under the heading 'Description of Non-IFRS Financial Measures, Non-IFRS Ratios and Supplementary Financial Measures' in DIV's management discussion and analysis for the three months and year ended December 31, 2024 and three months ended March 31, 2025) of $8.4 million, multiplied by 7.95% royalty rate, less marginal income taxes assumed at 27% 2) Cheba Hut contribution is calculated as the initial adjusted revenue contribution of USD$4,000,000, multiplied by a USD to CAD exchange rate of $1.4:1, less incremental operating expenses of $50,000, interest expense of $1,890,000 and taxes of $586,000 3) Calculated as the number of DIV common shares issued and outstanding as of March 31, 2025 (167,567,468) multiplied by the new annualized dividend of $0.275 per share 4) Calculated as pro-forma dividends declared, multiplied by 1 minus the effective DRIP rate of 12.5% System Sales is a supplementary financial measure and is a reference to the top-line sales revenue reported to Cheba Hut by all Cheba Hut franchisees. System sales is a supplementary financial measure and does not have a standardized meaning prescribed by IFRS. The Corporation believes system sales is a useful measure as it provides investors with an indication of performance of the franchisees underlying Cheba Hut's business. Same store sales growth or SSSG is a supplementary financial measure and is a reference to the percentage increase in system sales over the prior comparable period for Cheba Hut locations that were in operation in both the current and prior periods, excluding stores that were permanently closed. The Corporation believes that SSSG is a useful measure as it provides investors with an indication of the change in year-over-year sales of Cheba Hut locations. Third Party Information This news release includes information obtained from third party reports and other publicly available sources as well as financial statements and other reports provided to DIV by its royalty partners and Cheba Hut. Although DIV believes these sources to be generally reliable, such information cannot be verified with complete certainty. Accordingly, the accuracy and completeness of this information is not guaranteed. DIV has not independently verified any of the information from third party sources referred to in this news release nor ascertained the underlying assumptions relied upon by such sources. THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE. Additional Information Additional information relating to the Corporation and other public filings, is available on SEDAR+ at . Contact: Sean Morrison, President and Chief Executive Officer Diversified Royalty Corp. (236) 521-8470 Greg Gutmanis, Chief Financial Officer and VP Acquisitions Diversified Royalty Corp. (236) 521-8471
Yahoo
13-06-2025
- Business
- Yahoo
Roots Reports Strong First Quarter Fiscal 2025 Results
TORONTO, June 13, 2025--(BUSINESS WIRE)--Roots ("Roots" or the "Company") (TSX: ROOT), a premium outdoor-lifestyle brand, announced today financial results for its first quarter ended May 3, 2025 ("Q1 2025"). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Measures and Industry Metrics" below. "Our first-quarter results, marking the third consecutive quarter of year-over-year growth in sales, gross margin, and adjusted EBITDA, speaks to the growing resonance of the Roots brand and the discipline with which we are executing our strategic priorities," said Meghan Roach, President and Chief Executive Officer. "From elevated marketing to improved product availability and AI-operational enhancements, we drove meaningful gains across key performance metrics. As we begin 2025, I am proud of how our team continues to innovate and deliver value, while navigating consumer preferences and the evolving retail landscape." Sales were $40.0 million, a 6.7% increase compared to $37.5 million in Q1 2024. DTC sales were $34.6 million, a 10.2% increase compared to $31.4 million in Q1 2024 DTC comparable sales growth was 14.1% Gross margin was 61.5%, up 250bps compared to 59.0% in Q1 2024 DTC gross margin of 62.9%, up 80bps compared to 62.1% in Q1 2024 Net loss totaled ($7.9) million, improving from ($8.9) million in Q1 2024 Excluding the impacts from cash settled instruments under our share-based compensation plan, net loss would have been ($7.4) million, improving 16.5% compared to ($8.9) million in Q1 2024 Adjusted EBITDA amounted to ($7.1) million, a 10.7% improvement from ($8.0) million in Q1 2024 Excluding the impacts from cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been ($6.6) million, improving 16.8% compared to ($8.0) million in Q1 2024 Net debt reduced 6.7% year-over-year to $29.6 million Repurchased 115,300 shares for $0.3 million under the normal course issue bid that launched in Q1 2025 SELECT FINANCIAL INFORMATION (in '000s of CAD$, except where noted) First quarter ended May 3, 2025 May 4, 2024 Change Total sales 39,980 37,461 +6.7% Direct-to-Consumer ("DTC") sales 34,608 31,405 +10.2% Partners & Other ("P&O") sales 5,372 6,056 (11.3%) Gross profit 24,572 22,101 +11.2% Gross margin 61.5% 59.0% +250 bps1 Selling, General and Administrative ("SG&A") expenses 33,289 31,982 +4.1% Net loss (7,911) (8,895) +11.1% Net loss per share ($0.20) ($0.22) +9.1% Adjusted EBITDA2 (7,106) (7,959) +10.7% Free Cash Flow3 (21,806) (14,613) (49.2%) Net Debt4 29,576 31,704 (6.7%) 1 Basis points ("bps"). 2 Adjusted EBITDA is a non-IFRS measure that adjusts for the impact of certain items that are non-recurring or unusual in nature to remove difficulty in comparing underlying financial performance between periods. See "Non-IFRS Measures and Industry Metrics". 3 Free cash flow is a supplementary financial measure that reflects cash flow generated from ongoing operations, calculated as our cash from operating activities less cash used in investing activities and the payment of principal on lease liabilities net of lease incentives. See "Non-IFRS Measures and Industry Metrics". 4 Net debt is a supplementary financial measure that reflects our liquidity, refer to the "Reconciliation of long-term debt to net debt and leverage ratio" table for the calculation. See "Non-IFRS Measures and Industry Metrics". "Our first quarter results reflect our ongoing commitment to balance top-line growth with cost discipline to improve long-term profitability and operating leverage," said Leon Wu, Chief Financial Officer. "With a strong balance sheet, we are well-positioned to opportunistically respond to shifting market conditions while sustaining our current momentum." FIRST QUARTER OVERVIEW Total sales were $40.0 million in Q1 2025, representing an increase of 6.7% from $37.5 million in the first quarter of fiscal 2024 ("Q1 2024"). DTC sales (corporate retail store and eCommerce sales) were $34.6 million, a 10.2% increase from $31.4 million in Q1 2024. DTC momentum carried into Q1, with comparable sales growth of 14.1%, driven by double-digit growth across both channels. This was led by conversion improvements through improved product curation, customer experience improvements, and better in-stock position. P&O sales (wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products) amounted to $5.4 million in Q1 2025 as compared to $6.1 million in Q1 2024. The decline in P&O sales is from lower wholesale sales as our international operating partner continues to optimize their inventory levels. This decline was partially offset by double digit growth from the remaining lines of business in the segment, including China Tmall eCommerce sales. Gross profit reached $24.6 million in Q1 2025 compared to $22.1 million in Q1 2024, representing a year-over-year increase of 11.2%. Gross margin was 61.5% in Q1 2025 compared to 59.0% in Q1 2024. DTC gross margin was 62.9% in Q1 2025, up 80 basis points from 62.1% in Q1 2024. The increase in DTC gross margin was driven by 270 bps of product margin expansion from improved costing and lower discount sales. This was partially offset by the unfavorable foreign exchange impact on U.S. dollar purchases and increased freight premiums. SG&A expenses totaled $33.3 million in Q1 2025 compared to $32.0 million in Q1 2024, representing a year-over-year increase of 4.1%. The increase was partially driven by $0.5 million of unfavourable revaluation of cash-settled instruments under our share-based compensation plan. Excluding this item, SG&A expenses increased 2.6%, primarily reflecting higher investments in marketing, with sales-driven variable costs largely offset by savings from store fleet optimization initiatives. Net loss totaled ($7.9) million, or ($0.20) per share, in Q1 2025, improving from a net loss of ($8.9) million, or ($0.22) per share, in Q1 2024. Adjusted EBITDA amounted to ($7.1) million in Q1 2025, improving from to ($8.0) million in Q1 2024. FINANCIAL POSITION Inventory was $40.5 million at the end of Q1 2025, as compared to $35.4 million at the end of Q1 2024, representing an increase of $5.1 million or 14.5%. The year-over-year increase in inventory was driven by an increase in certain core collections on-hand, addressing the shortages in these areas in Q1 2024, and higher in-transit inventory to support the upcoming season. Free cash flow was ($21.8) million in Q1 2025, as compared to ($14.6) million in Q1 2024. The change in free cash outflows was driven by increased inventory purchases and the timing of certain monthly occupancy cost payments. As at May 3, 2025, Roots had net debt of $29.6 million, improved from $31.7 million a year earlier. The Company's leverage ratio, defined as total net debt to trailing 12-months Adjusted EBITDA, was 1.3x as at Q1 2025. As at May 3, 2025, Roots had $40.6 million outstanding under its credit facilities and total liquidity of $65.9 million, including cash and borrowing capacity available under its revolving credit facility. NORMAL COURSE ISSUER BID Under its Normal Course Issuer Bid ("NCIB") program, Roots repurchased 115,300 common shares of the Company ("Shares") for a total consideration of $0.3 million in Q1 2025. The NCIB allows the Company to repurchase for cancellation up to 1,347,118 Shares during the 12-month period ending April 10, 2026. At the end of Q1 2025, 115,300 Shares had been purchased under the current NCIB program. AMENDMENT TO THE COMPANY'S CREDIT AGREEMENT On May 22, 2025, the Company amended its Credit Agreement to extend the current maturity date of September 6, 2026 to September 6, 2027. In addition, the amendment reduced the $60 million Revolver Credit Facility, which includes a swing loan of $10 million, down to $45 million, and increased the maximum annual excess cash flow sweep, as defined in the Credit Agreement, from $5 million to $7.5 million. The costs incurred by the Company associated with the amendment will be recorded as debt financing costs within long-term debt and will be recognized in interest expense over the remaining term of the loan. CONFERENCE CALL AND WEBCAST INFORMATION Roots will hold a conference call to review its first quarter 2025 results on June 13, 2025 at 8:00 a.m. ET. All interested parties can join the call by dialing 1-226-828-7575 or 1-833-950-0062 and using conference ID: 239625. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until June 20, 2025, at midnight, and can be accessed by dialing 1-226-828-7578 or 1-833-950-0062 and entering the replay passcode: 507584. A live audio webcast of the conference call will be available on the Events and Presentations section of the Company's investor website at or by following the link here. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available on the Company's website for one year. NON-IFRS MEASURES AND INDUSTRY METRICS This press release makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognized measures under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"), do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures are not intended to represent, and should not be considered as alternatives to net loss or other performance measures derived in accordance with IFRS as measures of operating performance or operating cash flows or as a measure of liquidity. In addition to our results determined in accordance with IFRS, we use non-IFRS measures including "EBITDA", "Adjusted EBITDA", "Net Debt"; and non-IFRS ratio: "leverage ratio". This press release also makes reference to "gross margin", "DTC gross margin", and "comparable sales", which are commonly used metrics in our industry but that may be calculated differently compared to other companies. Gross margin, DTC gross margin and comparable sales are considered supplementary financial measures under applicable securities laws. We believe these non-IFRS measures and industry metrics provide useful information to both management and investors in measuring our financial performance and condition and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. For further information regarding these non-IFRS measures, please refer to "Cautionary Note-Regarding Non-IFRS Measures and Industry Metrics" in our management's discussion and analysis for Q1 2025, which is incorporated by reference herein and is available on SEDAR+ at or the Company's Investor Relations website at The table below provides a reconciliation of net loss to EBITDA and Adjusted EBITDA for the periods presented: CAD $000s Q1 2025 Q1 2024 Net loss (7,911) (8,895) Add the impact of: Interest expense (a) 2,015 2,127 Income taxes recovery (a) (2,821) (3,113) Depreciation and amortization (a) 6,865 7,241 EBITDA (1,852) (2,640) Adjust for the impact of: SG&A: Rent expense excluded from net loss due to IFRS 16 (a) (5,379) (5,589) SG&A: Purchase accounting adjustments (b) (4) (6) SG&A: Stock option expense (c) 75 91 SG&A: Changes in key personnel (d) 54 189 SG&A: Non-recurring legal fees (e) – (4) Adjusted EBITDA(f) (7,106) (7,959) _______________ Notes: (a) The impact of IFRS 16 in Q1 2025 and Q1 2024 was: (i) a decrease to selling, general, and admin ("SG&A") expenses of $1,262 and $1,097, respectively, which comprised the impact of depreciation, and lease modifications on the right-of-use ("ROU") assets, net of the exclusion of rent payments from SG&A expenses, (ii) a decrease in interest expense of $1,292 and $1,291, respectively, arising from interest expense recorded on the lease liabilities in the period, and (iii) a deferred tax impact of $(8) and $(52), respectively, based on tax attributes on the ROU assets and lease liabilities balances recorded. (b) As a result of the Acquisition, the Company recognized an intangible asset for lease arrangements in the amount of $6,310, which when excluding the impacts of IFRS 16, is amortized over the life of the leases and included in SG&A expenses. (c) Represents non-cash share-based compensation expense in respect of our Legacy Equity Incentive Plan, Legacy Employee Option Plan, and Omnibus Equity Incentive Plan. (d) Represents expenses incurred in respect of the Company's efforts to recruit for vacancies in key management positions and severance costs associated with employee separations relating to such positions. (e) Represents non-recurring legal costs that are outside the scope of normal operations. (f) Adjusted EBITDA excludes the impact of IFRS 16. If the impact of IFRS 16 was included for Q1 2025 and Q1 2024, Adjusted EBITDA would have been $(1,723) and $(2,364), respectively. Reconciliation of long-term debt to net debt and leverage ratio: As at CAD $000s May 3, 2025 May 4, 2024 February 1, 2025 Long-term debt(1) $ 35,490 $ 44,119 $ 41,370 Less: cash (5,914) (12,414) (34,021) Net debt $ 29,576 $ 31,705 $ $7,349 Trailing 12-month Adjusted EBITDA 22,158 17,744 21,305 Leverage ratio 1.3x 1.8x 0.3x __________ Notes: (1) Total long-term debt of $35,490 at May 3, 2025, is net of $684 unamortized long-term debt financing costs. As at May 4, 2024, total long-term debt of $44,119 is net of $1,079 unamortized long-term debt financing costs. As at February 1, 2025, total long-term debt of $41,370 is net of $810 unamortized long-term debt financing costs. ABOUT ROOTS Established in 1973, Roots is a global lifestyle brand. Starting from a small cabin in northern Canada, Roots has become a global brand with over 100 corporate retail stores in Canada, two stores in the United States, and an eCommerce platform, We have more than 100 partner-operated stores in Asia, and we also operate a dedicated Roots-branded storefront on in China. We design, market, and sell a broad selection of products in different departments, including women's, men's, children's, and gender-free apparel, leather goods, footwear, and accessories. Our products are built with uncompromising comfort, quality, and style that allows you to feel At Home With NatureTM. We offer products designed to meet life's everyday adventures and provide you with the versatility to live your life to the fullest. We also wholesale through business-to-business channels and license the brand to a select group of licensees selling products to major retailers. Roots Corporation is a Canadian corporation doing business as "Roots". FORWARD-LOOKING INFORMATION Certain information in this press release contains forward-looking information. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and is made as of the date of this press release. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. See "Forward-Looking Information" and "Risk Factors" in the Company's current Annual Information Form for a discussion of the uncertainties, risks and assumptions associated with these statements. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. View source version on Contacts Roots Investor RelationsInvestors@ 1-844-762-2343 For media or partnership inquiries: Nicole LegateDirector of PRnlegate@ 647-828-5128
Business Wire
13-06-2025
- Business
- Business Wire
Roots Reports Strong First Quarter Fiscal 2025 Results
TORONTO--(BUSINESS WIRE)-- Roots ('Roots' or the 'Company') (TSX: ROOT), a premium outdoor-lifestyle brand, announced today financial results for its first quarter ended May 3, 2025 ('Q1 2025'). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See 'Non-IFRS Measures and Industry Metrics' below. "Our first-quarter results, marking the third consecutive quarter of year-over-year growth in sales, gross margin, and adjusted EBITDA, speaks to the growing resonance of the Roots brand and the discipline with which we are executing our strategic priorities,' said Meghan Roach, President and Chief Executive Officer. 'From elevated marketing to improved product availability and AI-operational enhancements, we drove meaningful gains across key performance metrics. As we begin 2025, I am proud of how our team continues to innovate and deliver value, while navigating consumer preferences and the evolving retail landscape." Sales were $40.0 million, a 6.7% increase compared to $37.5 million in Q1 2024. DTC sales were $34.6 million, a 10.2% increase compared to $31.4 million in Q1 2024 DTC comparable sales growth was 14.1% Gross margin was 61.5%, up 250bps compared to 59.0% in Q1 2024 DTC gross margin of 62.9%, up 80bps compared to 62.1% in Q1 2024 Net loss totaled ($7.9) million, improving from ($8.9) million in Q1 2024 Excluding the impacts from cash settled instruments under our share-based compensation plan, net loss would have been ($7.4) million, improving 16.5% compared to ($8.9) million in Q1 2024 Adjusted EBITDA amounted to ($7.1) million, a 10.7% improvement from ($8.0) million in Q1 2024 Excluding the impacts from cash settled instruments under our share-based compensation plan, Adjusted EBITDA would have been ($6.6) million, improving 16.8% compared to ($8.0) million in Q1 2024 Net debt reduced 6.7% year-over-year to $29.6 million Repurchased 115,300 shares for $0.3 million under the normal course issue bid that launched in Q1 2025 1 Basis points ('bps'). 2 Adjusted EBITDA is a non-IFRS measure that adjusts for the impact of certain items that are non-recurring or unusual in nature to remove difficulty in comparing underlying financial performance between periods. See 'Non-IFRS Measures and Industry Metrics'. 3 Free cash flow is a supplementary financial measure that reflects cash flow generated from ongoing operations, calculated as our cash from operating activities less cash used in investing activities and the payment of principal on lease liabilities net of lease incentives. See 'Non-IFRS Measures and Industry Metrics'. 4 Net debt is a supplementary financial measure that reflects our liquidity, refer to the 'Reconciliation of long-term debt to net debt and leverage ratio' table for the calculation. See 'Non-IFRS Measures and Industry Metrics'. Expand 'Our first quarter results reflect our ongoing commitment to balance top-line growth with cost discipline to improve long-term profitability and operating leverage,' said Leon Wu, Chief Financial Officer. 'With a strong balance sheet, we are well-positioned to opportunistically respond to shifting market conditions while sustaining our current momentum.' FIRST QUARTER OVERVIEW Total sales were $40.0 million in Q1 2025, representing an increase of 6.7% from $37.5 million in the first quarter of fiscal 2024 ('Q1 2024'). DTC sales (corporate retail store and eCommerce sales) were $34.6 million, a 10.2% increase from $31.4 million in Q1 2024. DTC momentum carried into Q1, with comparable sales growth of 14.1%, driven by double-digit growth across both channels. This was led by conversion improvements through improved product curation, customer experience improvements, and better in-stock position. P&O sales (wholesale Roots branded products, licensing to select manufacturing partners and the sale of certain custom products) amounted to $5.4 million in Q1 2025 as compared to $6.1 million in Q1 2024. The decline in P&O sales is from lower wholesale sales as our international operating partner continues to optimize their inventory levels. This decline was partially offset by double digit growth from the remaining lines of business in the segment, including China Tmall eCommerce sales. Gross profit reached $24.6 million in Q1 2025 compared to $22.1 million in Q1 2024, representing a year-over-year increase of 11.2%. Gross margin was 61.5% in Q1 2025 compared to 59.0% in Q1 2024. DTC gross margin was 62.9% in Q1 2025, up 80 basis points from 62.1% in Q1 2024. The increase in DTC gross margin was driven by 270 bps of product margin expansion from improved costing and lower discount sales. This was partially offset by the unfavorable foreign exchange impact on U.S. dollar purchases and increased freight premiums. SG&A expenses totaled $33.3 million in Q1 2025 compared to $32.0 million in Q1 2024, representing a year-over-year increase of 4.1%. The increase was partially driven by $0.5 million of unfavourable revaluation of cash-settled instruments under our share-based compensation plan. Excluding this item, SG&A expenses increased 2.6%, primarily reflecting higher investments in marketing, with sales-driven variable costs largely offset by savings from store fleet optimization initiatives. Net loss totaled ($7.9) million, or ($0.20) per share, in Q1 2025, improving from a net loss of ($8.9) million, or ($0.22) per share, in Q1 2024. Adjusted EBITDA amounted to ($7.1) million in Q1 2025, improving from to ($8.0) million in Q1 2024. FINANCIAL POSITION Inventory was $40.5 million at the end of Q1 2025, as compared to $35.4 million at the end of Q1 2024, representing an increase of $5.1 million or 14.5%. The year-over-year increase in inventory was driven by an increase in certain core collections on-hand, addressing the shortages in these areas in Q1 2024, and higher in-transit inventory to support the upcoming season. Free cash flow was ($21.8) million in Q1 2025, as compared to ($14.6) million in Q1 2024. The change in free cash outflows was driven by increased inventory purchases and the timing of certain monthly occupancy cost payments. As at May 3, 2025, Roots had net debt of $29.6 million, improved from $31.7 million a year earlier. The Company's leverage ratio, defined as total net debt to trailing 12-months Adjusted EBITDA, was 1.3x as at Q1 2025. As at May 3, 2025, Roots had $40.6 million outstanding under its credit facilities and total liquidity of $65.9 million, including cash and borrowing capacity available under its revolving credit facility. NORMAL COURSE ISSUER BID Under its Normal Course Issuer Bid ('NCIB') program, Roots repurchased 115,300 common shares of the Company ('Shares') for a total consideration of $0.3 million in Q1 2025. The NCIB allows the Company to repurchase for cancellation up to 1,347,118 Shares during the 12-month period ending April 10, 2026. At the end of Q1 2025, 115,300 Shares had been purchased under the current NCIB program. On May 22, 2025, the Company amended its Credit Agreement to extend the current maturity date of September 6, 2026 to September 6, 2027. In addition, the amendment reduced the $60 million Revolver Credit Facility, which includes a swing loan of $10 million, down to $45 million, and increased the maximum annual excess cash flow sweep, as defined in the Credit Agreement, from $5 million to $7.5 million. The costs incurred by the Company associated with the amendment will be recorded as debt financing costs within long-term debt and will be recognized in interest expense over the remaining term of the loan. CONFERENCE CALL AND WEBCAST INFORMATION Roots will hold a conference call to review its first quarter 2025 results on June 13, 2025 at 8:00 a.m. ET. All interested parties can join the call by dialing 1-226-828-7575 or 1-833-950-0062 and using conference ID: 239625. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until June 20, 2025, at midnight, and can be accessed by dialing 1-226-828-7578 or 1-833-950-0062 and entering the replay passcode: 507584. A live audio webcast of the conference call will be available on the Events and Presentations section of the Company's investor website at or by following the link here. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available on the Company's website for one year. NON-IFRS MEASURES AND INDUSTRY METRICS This press release makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognized measures under International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS'), do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures are not intended to represent, and should not be considered as alternatives to net loss or other performance measures derived in accordance with IFRS as measures of operating performance or operating cash flows or as a measure of liquidity. In addition to our results determined in accordance with IFRS, we use non-IFRS measures including 'EBITDA', 'Adjusted EBITDA', 'Net Debt'; and non-IFRS ratio: 'leverage ratio'. This press release also makes reference to 'gross margin', 'DTC gross margin', and 'comparable sales', which are commonly used metrics in our industry but that may be calculated differently compared to other companies. Gross margin, DTC gross margin and comparable sales are considered supplementary financial measures under applicable securities laws. We believe these non-IFRS measures and industry metrics provide useful information to both management and investors in measuring our financial performance and condition and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. For further information regarding these non-IFRS measures, please refer to 'Cautionary Note-Regarding Non-IFRS Measures and Industry Metrics' in our management's discussion and analysis for Q1 2025, which is incorporated by reference herein and is available on SEDAR+ at or the Company's Investor Relations website at _______________ Notes: (a) The impact of IFRS 16 in Q1 2025 and Q1 2024 was: (i) a decrease to selling, general, and admin (' SG&A ') expenses of $1,262 and $1,097, respectively, which comprised the impact of depreciation, and lease modifications on the right-of-use (' ROU ') assets, net of the exclusion of rent payments from SG&A expenses, (ii) a decrease in interest expense of $1,292 and $1,291, respectively, arising from interest expense recorded on the lease liabilities in the period, and (iii) a deferred tax impact of $(8) and $(52), respectively, based on tax attributes on the ROU assets and lease liabilities balances recorded. (b) As a result of the Acquisition, the Company recognized an intangible asset for lease arrangements in the amount of $6,310, which when excluding the impacts of IFRS 16, is amortized over the life of the leases and included in SG&A expenses. (c) Represents non-cash share-based compensation expense in respect of our Legacy Equity Incentive Plan, Legacy Employee Option Plan, and Omnibus Equity Incentive Plan. (d) Represents expenses incurred in respect of the Company's efforts to recruit for vacancies in key management positions and severance costs associated with employee separations relating to such positions. (e) Represents non-recurring legal costs that are outside the scope of normal operations. (f) Adjusted EBITDA excludes the impact of IFRS 16. If the impact of IFRS 16 was included for Q1 2025 and Q1 2024, Adjusted EBITDA would have been $(1,723) and $(2,364), respectively. Expand Reconciliation of long-term debt to net debt and leverage ratio: __________ Notes: (1) Total long-term debt of $35,490 at May 3, 2025, is net of $684 unamortized long-term debt financing costs. As at May 4, 2024, total long-term debt of $44,119 is net of $1,079 unamortized long-term debt financing costs. As at February 1, 2025, total long-term debt of $41,370 is net of $810 unamortized long-term debt financing costs. Expand ABOUT ROOTS Established in 1973, Roots is a global lifestyle brand. Starting from a small cabin in northern Canada, Roots has become a global brand with over 100 corporate retail stores in Canada, two stores in the United States, and an eCommerce platform, We have more than 100 partner-operated stores in Asia, and we also operate a dedicated Roots-branded storefront on in China. We design, market, and sell a broad selection of products in different departments, including women's, men's, children's, and gender-free apparel, leather goods, footwear, and accessories. Our products are built with uncompromising comfort, quality, and style that allows you to feel At Home With Nature TM. We offer products designed to meet life's everyday adventures and provide you with the versatility to live your life to the fullest. We also wholesale through business-to-business channels and license the brand to a select group of licensees selling products to major retailers. Roots Corporation is a Canadian corporation doing business as 'Roots'. FORWARD-LOOKING INFORMATION Certain information in this press release contains forward-looking information. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and is made as of the date of this press release. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. See 'Forward-Looking Information' and 'Risk Factors' in the Company's current Annual Information Form for a discussion of the uncertainties, risks and assumptions associated with these statements. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
Cision Canada
10-06-2025
- Business
- Cision Canada
ADF GROUP INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2025 Français
QUARTER HIGHLIGHT Revenues of $55.5 million, down from the same period last year, in line with the uncertainty related to the U.S. tariffs. Gross margin, as a percentage of revenue (1) stood at 22.0%, compared to 29.2% a year ago. Cash flow from operations of $25.3 million. Net income of $8.7 million, down compared to April 30, 2024. Order Backlog (1) at $330.4 million as at April 30, 2025, up compared with January 31, 2025. All amounts are in Canadian dollars unless otherwise noted. TERREBONNE, QC, June 10, 2025 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), a North American leader in the fabrication of steel superstructures, recorded revenues of $55.5 million for the first quarter ended April 30, 2025, compared to $107.4 million for the same period a year earlier. Gross margin, as a percentage of revenue (1) went from 29.2% for the three (3) months ended April 30, 2024, to 22.0% for the same period ended April 30, 2025. These variations are attributable to the direct and indirect impacts of the U.S. tariffs. Although the Corporation's order backlog (1) is more than adequate, exceeding $300 million as at April 30, 2025, the uncertainty surrounding the application and functioning of these tariffs has caused an unrecoverable delay in fabrication hours, mainly at ADF's plant in Terrebonne, Quebec. The decline in revenues forced the Corporation to take contingency measures and initiate a work-sharing program at its Terrebonne plant. This program has allowed the Corporation to mitigate the negative impacts of the decrease in fabrication hours, however not entirely. The tariffs also had an indirect negative impact on the Corporation's margins, which is caused by the increase in the price of steel sold by U.S. steel mills. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) (2) amounted to $10.4 million, or 18.7% of revenues, compared with $23.1 million or 21.5% of revenues on April 30, 2024. For the first quarter ended April 30, 2025, ADF recorded net income of $8.7 million ($0.30 per share basic and diluted) compared to net income of $15.3 million ($0.47 per share basic and diluted) for the same period a year earlier. As at April 30, 2025, the Corporation's order backlog (1) was $330.4 million, up compared with January 31, 2025, when the order backlog stood at $293.1 million. As at April 30, 2025, the Corporation had working capital (1) of $108.6 million while operating activities generated cash of $25.3 million during the three (3) month period ended April 30, 2025, closing the same quarter with cash and cash equivalents of $75.3 million. Financial Highlights (1) Adjusted EBITDA is a non-IFRS financial measure. Refer to the "Non-IFRS Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. U.S. Tariffs In recent months, the tariff measures put in place by the US authorities have been marked by frequent and sometimes unpredictable developments. In this context, and now that the official documents have been published and interpreted by the Corporation's customs experts, Management has a clearer view of the different impacts of these tariffs, including the impact of the announcements in the recent weeks. The products exported by ADF comply with the requirements of the Canada-United States-Mexico Agreement (USMCA). As a result, they are only subject to the specific steel tariffs, set at 25% by U.S. Government Proclamation 10896. These duties only apply if the raw materials used are not smelted and poured in the United States. However, ADF generally obtains steel from US-based mills and has done so for several years. Thus, when this condition is met, ADF's exports are exempt from these duties, allowing the Corporation to maintain its competitiveness in the U.S. market. At the same time, the Canadian government introduced countermeasures in the form of surtaxes on steel imports from the United States. However, these surcharges are recoverable upon exports. To facilitate the management of these costs for manufacturers, a remission order has been issued, allowing for immediate relief from these surtaxes at the time of import. Outlook "Given the circumstances, and more particularly the uncertainty related to U.S. tariffs, we are pleased with the results of the first quarter of our current fiscal year, which ended on April 30, 2025. We were able to generate cash, while continuing our normal course issuer bid program, which we have completed since the close of the first quarter" indicated Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer. " We closed our first quarter with an order backlog (1) of $330.4 million, allowing us to expect an increase in revenue and profitability for the second half of our fiscal year ending January 31, 2026" concluded Mr. Jean Paschini. Dividend On April 9, 2025, ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.02 per share, which was paid on May 15, 2025, to Shareholders of Record as at April 24, 2025. Conference Call with Investors A conference call with investors is scheduled today, April 10, 2025, at 10 a.m. (Montreal time) to discuss the results of the quarter ended April 30, 2025. To join the conference call without operator assistance, you can register with your phone number on to receive an instant automatic reminder. You can also join the conference call with operator assistance by dialing 1-800-990-4777 a few minutes prior to the conference call scheduled start time. A replay of this conference call will be available from 1:00 p.m. on June 10, 2025, until June 17, 2025, by dialing 1-888-660-6345, followed by access code 63247#. The conference call (audio) will also be available at the Members of the media are invited to join in listening mode. ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR ENDED JANUARY 31, 2025 ADF Group Inc.'s Annual Meeting of Shareholders will be held on: About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products. Forward-Looking Information | This press release contains forward-looking statements reflecting ADF's objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations. Non-IFRS Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with IFRS. In addition, readers should avoid comparing these non-IFRS financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measures issued by the International Accounting Standards Board ("IFRS Accounting Standards") is as follows: Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items: Net financial expenses; Income taxes expense ; Foreign exchange losses, and Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets. Net income is reconciled with adjusted EBITDA in the table below: Gross Margin as a Percentage of Revenues Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues. Order Backlog The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production. Working Capital The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. It is therefore equal to current assets, less current liabilities. SOURCE ADF Group Inc.
