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Business Wire
7 hours ago
- Business
- Business Wire
NeoGenomics Reports Second Quarter 2025 Results
FORT MYERS, Fla.--(BUSINESS WIRE)-- NeoGenomics, Inc. (NASDAQ: NEO) (the ' Company '), a leading provider of oncology diagnostic solutions that enable precision medicine, today announced its second-quarter results for the period ended June 30, 2025. 'In the second quarter clinical revenue increased by 16% driven by sequential improvement in AUP, a record quarter for volumes, and NGS growth of 23%,' said Tony Zook, CEO of NeoGenomics. 'Strength in our Clinical business was largely offset by continuing pressure in pharma revenue that was beyond our initial assumptions, and a delay in our commercial launch of PanTracer™ Liquid Biopsy that impacted our expected NGS revenue.' 'Looking ahead, we believe Neo will continue to perform as a double-digit revenue growth company, poised to capture additional market share,' continued Mr. Zook. 'We are enhancing our R&D efforts to develop new therapy selection and next-gen MRD products. We are also preparing for the commercial launch of PanTracer Liquid Biopsy, continuing to grow our sales team, increasing efficiencies, and pursuing partnerships through business development efforts that will enhance our portfolio and strengthen our community channel. We are confident that Neo will deliver long-term value for our customers, patients, and shareholders.' Second-Quarter Results Consolidated revenue for the second quarter of 2025 was $181 million, an increase of 10% over the same period in 2024 primarily due to higher volume partially offset by lower non-clinical revenue. Average revenue per clinical test ('revenue per test') increased by 2% to $465. This increase reflects higher value tests, including NGS, and strategic reimbursement initiatives. Consolidated gross profit for the second quarter of 2025 was $77 million, an increase of 7% compared to the second quarter of 2024. This increase was primarily due to an increase in revenue partially offset by higher compensation and benefit costs and an increase in supplies expense. Consolidated gross profit margin, including amortization of acquired intangible assets and stock-based compensation expense, was 43%. Adjusted Gross Profit Margin (1), excluding amortization of acquired intangible assets and stock-based compensation expense, was 45%. Operating expenses for the second quarter of 2025 were $125 million, an increase of $30 million, or 32%, compared to the second quarter of 2024. The increase in operating expenses primarily reflect $20.0 million of impairment charges from impairment of assets held for sale related to the planned sale of Trapelo and the InVisionFirst®-Lung intangible asset impairments, as well as $4.4 million in higher compensation and benefit costs. These increases were partially offset by a decrease in restructuring activities due to the completion of restructuring activities in the fourth quarter of 2024. Net loss for the quarter increased $26 million, or 142%, to $45 million compared to net loss of $19 million for the second quarter of 2024. Adjusted EBITDA (1) for the second quarter of 2025 remained relatively flat at positive $10.7 million, compared to positive $10.9 million in the second quarter of 2024. Adjusted Net Loss (1) was $3.6 million compared to Adjusted Net Loss (1) of $4 million in the second quarter of 2024. Cash and cash equivalents and marketable securities totaled $164 million at quarter end. Pathline, LLC Acquisition On April 4, 2025, the Company completed the acquisition of a 100% ownership interest in Pathline, LLC ('Pathline'), a CLIA/CAP/NYS-certified laboratory based in New Jersey. The purchase price consisted of (i) initial cash consideration of $8.0 million, subject to working capital and other adjustments, and (ii) contingent consideration of $1.0 million. The Pathline acquisition aligns with the Company's strategic objective of expanding its presence, capabilities, and offerings in the Northeastern United States. 2025 Financial Guidance (2) The Company again revised its full-year 2025 guidance (2), as previously revised on April 29, 2025. ____________________ Expand (1) The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled 'Use of Non-GAAP Financial Measures.' See also the tables reconciling such measures to their closest GAAP equivalent. (2) The Company reserves the right to adjust this guidance at any time. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company's securities and are reminded that the foregoing estimates should not be construed as guarantees of future performance. Expand Conference Call The Company has scheduled a webcast and conference call to discuss its second quarter 2025 results on Tuesday, July 29, 2025 at 8:30 a.m. Eastern Time. To access the live call via telephone, interested investors should dial (888) 506-0062 (domestic) or (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 859170. The live webcast may be accessed by visiting the Investor Relations section of our website at A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company's website. About NeoGenomics, Inc. NeoGenomics, Inc. is a premier cancer diagnostics company specializing in cancer genetics testing and information services. We offer one of the most comprehensive oncology-focused testing menus across the cancer continuum, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms with innovative diagnostic and predictive testing to help them diagnose and treat cancer. Headquartered in Fort Myers, FL, NeoGenomics operates a network of CAP-accredited and CLIA-certified laboratories for full-service sample processing and analysis services throughout the US and a CAP-accredited full-service sample-processing laboratory in Cambridge, United Kingdom. We routinely post information that may be important to investors on our website at Forward Looking Statements This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as 'anticipate,' 'expect,' 'plan,' 'could,' 'would,' 'may,' 'will,' 'believe,' 'estimate,' 'forecast,' 'goal,' 'project,' 'guidance,' 'plan,' 'potential' and other words of similar meaning, although not all forward-looking statements include these words. These forward-looking statements address various matters, including statements regarding 2025 financial guidance, seasonality impacts, and long-range strategic objectives and initiatives set forth in the Company's long-range plans.. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to assemble and maintain an effective executive team, to continue gaining new customers, offer new types of tests, integrate its acquisitions, manage the effects of seasonality, execute on its long-range strategic priorities, and otherwise implement its business plans, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and filed with the SEC on February 18, 2025, as well as subsequently filed Quarterly Reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission. We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at and on our website at for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. NeoGenomics, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, COST OF REVENUE 104,072 92,008 198,861 182,779 GROSS PROFIT 77,258 72,494 150,504 137,963 Operating expenses: General and administrative 71,747 63,328 139,954 129,125 Research and development 9,023 7,886 19,204 15,506 Sales and marketing 24,075 21,677 46,758 41,898 Restructuring charges — 1,544 — 3,942 Impairment charges 20,041 — 20,041 — Total operating expenses 124,886 94,435 225,957 190,471 LOSS FROM OPERATIONS (47,628 ) (21,941 ) (75,453 ) (52,508 ) Interest income (2,263 ) (4,592 ) (5,984 ) (9,426 ) Interest expense 933 1,666 2,551 3,351 Other (income) expense, net (482 ) 2 (547 ) 265 Loss before taxes (45,816 ) (19,017 ) (71,473 ) (46,698 ) Income tax benefit (724 ) (375 ) (458 ) (995 ) NET LOSS $ (45,092 ) $ (18,642 ) $ (71,015 ) $ (45,703 ) NET LOSS PER SHARE Basic $ (0.35 ) $ (0.15 ) $ (0.56 ) $ (0.36 ) Diluted $ (0.35 ) $ (0.15 ) $ (0.56 ) $ (0.36 ) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 127,949 126,405 127,664 126,257 Diluted 127,949 126,405 127,664 126,257 Expand NeoGenomics, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (71,015 ) $ (45,703 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 18,506 19,651 Amortization of intangibles 16,486 16,723 Stock-based compensation 22,968 16,615 Non-cash operating lease expense 3,353 4,793 Amortization of convertible debt discount and debt issue costs 1,233 1,452 Impairment charges 20,041 — Other impairment charges — 333 Other adjustments (340 ) 159 Changes in assets and liabilities, net (16,229 ) (26,046 ) Net cash used in operating activities (4,997 ) (12,023 ) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of marketable securities 11,060 40,501 Purchases of property and equipment (10,823 ) (18,663 ) Business acquisition, net of cash acquired (5,991 ) — Net cash (used in) provided by investing activities (5,754 ) 21,838 CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock, net (234 ) 2,782 Repayment of convertible debt (201,250 ) — Net cash (used in) provided by financing activities (201,484 ) 2,782 Net change in cash and cash equivalents, including cash classified within current assets held for sale (212,235 ) 12,597 Less: net change in cash classified within current assets held for sale (54 ) — Net change in cash and cash equivalents (212,289 ) 12,597 Cash and cash equivalents, beginning of period 367,012 342,488 Cash and cash equivalents, end of period $ 154,723 $ 355,085 Expand Use of Non-GAAP Financial Measures In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company's core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company's core test-level operating results across reporting periods. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies. Definitions of Non-GAAP Measures Non-GAAP Adjusted EBITDA 'Adjusted EBITDA' is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) CEO transition costs, (vii) restructuring charges, (viii) impairment charges, (ix) intellectual property ('IP') litigation costs, and (x) other significant or non-operating (income) or expenses, net. Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin 'Adjusted cost of revenue' is defined by NeoGenomics as cost of revenue before: (i) amortization of acquired intangible assets, and, if applicable in a reporting period, (ii) stock-based compensation expense. 'Adjusted gross profit' is defined by NeoGenomics as total revenue less adjusted cost of revenue. 'Adjusted gross profit margin' is defined by NeoGenomics as adjusted cost of revenue divided by total revenue. Non-GAAP Adjusted Net (Loss) Income 'Adjusted net (loss) income' is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) amortization of intangible assets, (ii) stock-based compensation expense, and, if applicable in a reporting period, (iii) CEO transition costs, (iv) restructuring charges, (v) impairment charges, (vi) IP litigation costs, and (vii) other significant or non-operating (income) or expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method. Non-GAAP Adjusted Diluted EPS 'Adjusted diluted EPS' is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. ____________________ Expand (1) For the three months ended June 30, 2025, CEO transition costs include executive retention costs. For the six months ended June 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and six months ended June 30, 2024. (2) For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs. (3) For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the three and six months ended June 30, 2024. (4) For the three and six months ended June 30, 2025 and June 30, 2024, IP litigation costs include legal fees. (5) For the three and six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and six months ended June 30, 2025. Expand ____________________ Expand (1) Cost of revenue adjustments for the three months ended June 30, 2025, includes $4.8 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue adjustments for the six months ended June 30, 2025, includes $9.7 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation. Cost of revenue adjustments for the three months ended June 30, 2024, includes $4.9 million of amortization of acquired intangible assets and $0.3 million of stock-based compensation. Cost of revenue adjustments for the six months ended June 30, 2024, includes $9.8 million of amortization of acquired intangible assets and $0.7 million of stock-based compensation. Expand Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss and GAAP EPS to Non-GAAP Adjusted EPS (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss (GAAP) $ (45,092 ) $ (18,642 ) $ (71,015 ) $ (45,703 ) Adjustments to net loss, net of tax: Amortization of intangibles 8,124 8,361 16,486 16,723 CEO transition costs (1) 637 — 2,831 — Acquisition and integration related expenses (2) 3,204 — 4,376 — Stock-based compensation expense 12,215 8,841 22,968 16,615 Restructuring charges — 1,544 — 3,942 Impairment charges (2) 20,041 — 20,041 — IP litigation costs (3) 4,460 1,962 7,443 6,243 Other significant expenses, net (4) — 2,358 — 3,960 Adjusted net income $ 3,589 $ 4,424 $ 3,130 $ 1,780 Net loss per common share (GAAP) Diluted EPS $ (0.35 ) $ (0.15 ) $ (0.56 ) $ (0.36 ) Adjustments to diluted loss income per share: Amortization of intangibles 0.06 0.07 0.13 0.13 CEO transition costs (1) — — 0.02 — Acquisition and integration related expenses (2) 0.03 — 0.03 — Stock-based compensation expense 0.10 0.07 0.18 0.13 Restructuring charges — 0.01 — 0.03 Impairment charges (3) 0.16 — 0.16 — IP litigation costs (4) 0.03 0.02 0.06 0.05 Other significant expenses, net (5) — 0.02 — 0.03 Rounding and impact of diluted shares in adjusted diluted shares (6) — (0.01 ) — — Adjusted diluted EPS (non-GAAP) $ 0.03 $ 0.03 $ 0.02 $ 0.01 Weighted average shares used in computation of adjusted diluted EPS: Diluted common shares (GAAP) 127,949 126,405 127,664 126,257 Dilutive effect of options, restricted stock, and converted shares (7)(8) — — — — Expand ____________________ Expand (1) For the three months ended June 30, 2025, CEO transition costs include executive retention costs. For the six months ended June 30, 2025, CEO transition costs include severance costs, executive retention costs, and executive search costs. There were no such costs for the three and six months ended June 30, 2024. (2) For the three and six months ended June 30, 2025, acquisition and integration related expenses include consulting and legal fees, severance costs, and employee retention costs. (3) For the three and six months ended June 30, 2025, impairment charges include losses from InVisionFirst®-Lung intangible asset impairment and inventory write-off, and impairment of disposal groups held for sale. There were no such costs for the three and six months ended June 30, 2024. (4) For the three and six months ended June 30, 2025 and June 30, 2024, IP litigation costs include legal fees. (5) For the three and six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. There were no such costs for the three and six months ended June 30, 2025. (6) This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. (7) In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. (8) In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. Expand Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures (in thousands, except per share amounts) (unaudited) GAAP net loss in 2025 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, and (iii) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share The following table reconciles the Company's 2025 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS: ____________________ Expand (1) This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. (2) For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. Expand Supplemental Information Clinical Tests Performed and Revenue (unaudited) ____________________ Expand (1) Excludes tests and revenue related to Pathline and non-clinical activity. (2) Excludes tests and revenue related to non-clinical activity. Expand
Business Wire
5 days ago
- Business
- Business Wire
FIBRA Macquarie México Reports Second Quarter 2025 Results
MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the second quarter ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS Total Industrial portfolio leasing activity comprised 1.3 million square feet of GLA, including early renewals of 424 thousand square feet Solid tenant retention rates of approximately 80% across Industrial and Retail portfolios Consolidated 2Q25 NOI up 18.1% YoY in Peso terms Consolidated 2Q25 AFFO up 23.3% YoY in Peso terms 'We are proud to report another quarter of strong performance, highlighted by record results across multiple metrics, including AFFO per certificate that was up 8.6% in underlying US dollar terms, to US$30.3 million,' said Simon Hanna, FIBRA Macquarie's chief executive officer. 'Our industrial portfolio continues to demonstrate remarkable strength, achieving record leasing renewal spreads of 27.7%, and the continued demand for space in our markets is reflected in our solid retention and rental rate growth across both our industrial and retail portfolios. On the growth capex front, we are particularly excited about our expanded development program in Tijuana, which represents an attractive opportunity with plans for four Class A buildings totaling approximately 750 thousand square feet. This strategic investment aligns with our long-term vision for sustainable growth in key markets.' Mr. Hanna continued, 'Through our prudent financial management, we have maintained our strong balance sheet position, with ample liquidity and prudent leverage. While we remain mindful of broader economic uncertainties, Mexico maintains a key strategic position within North American supply chains. We continue to successfully navigate the current market conditions, while pursuing selective growth opportunities and maintaining our commitment to disciplined capital allocation. With our reaffirmed full-year US dollar AFFO and distribution per CBFI guidance, we are confident in our ability to deliver sustained value for our certificate holders.' CAPITAL ALLOCATION FIBRAMQ continues to pursue a strategy of investing in and developing Class A industrial assets in core markets that demonstrate strong performance and a positive economic outlook. Industrial Portfolio Growth Capex Program FIBRAMQ has approximately 600 thousand square feet of GLA in stabilization. No new building construction starts were commenced during the quarter. The forecast 2025 cash investment for the industrial development program continues to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ remains disciplined in its capital deployment as it stabilizes recent deliveries and maintains an attractive future growth pipeline. FIBRAMQ continues to target a NOI development yield on cost between 9.0% and 11.0%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers. Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings ( Industrial Development Projects in Process Guadalajara, Jalisco FIBRAMQ continues to make progress in pre-development works including obtaining initial permits, licenses and commencement of initial infrastructure works for the first building comprising 330 thousand square feet of GLA FIBRAMQ anticipates developing two Class A buildings in this park over time, with a total GLA of approximately 460 thousand square feet Apodaca, Nuevo León FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24 Tijuana, Baja California FIBRAMQ is marketing for lease a 385 thousand square foot property that was delivered during 2Q25 FIBRAMQ has entered into a 50-50 joint venture to develop an industrial park in the prime Pacifico/Libramiento submarket of Tijuana. The project will feature up to four Class A industrial buildings, totaling approximately 750 thousand square feet of GLA with pre-development works, including obtaining initial permits and licenses, and commencement of initial infrastructure works underway FINANCIAL AND OPERATING RESULTS Consolidated Portfolio FIBRAMQ's consolidated 2Q25 results were as follows: Industrial Portfolio The following table summarizes 2Q25 results for FIBRAMQ's industrial portfolio: FIBRAMQ's industrial portfolio performance remains robust, with growing average rental rates and sustained retention. For the quarter ended June 30, 2025, FIBRAMQ's industrial portfolio delivered NOI of US$51.1 million, a 6.0% increase YoY. Total leasing activity comprised 1.3 million square feet, including 120 thousand square feet of new leases. Renewal leases comprised 14 contracts across 1.1 million square feet, driving a retention rate of 93.2% for the quarter and 80.1% over the last 12 months. For the remainder of the year, FIBRAMQ's industrial portfolio scheduled lease expirations, including expired leases in regularization, total 4.8% of annualized base rents. Retail Portfolio The following table summarizes the proportionally combined 2Q25 results for FIBRAMQ's retail portfolio: FIBRAMQ signed 54 new and renewal leases during the quarter totaling 11.5 thousand square meters of GLA, across a diverse range of tenants. The retail portfolio has a retention of 77.8% over the last twelve months. Of note, retail portfolio occupancy of 93.4% represents a post-pandemic record. Lease Rental Rate Summary Based on annualized base rents, leases in FIBRAMQ's consolidated portfolio is now 71.2% linked to either Mexican or US CPI, representing an increase of 525 bps over the last twelve months. In the Industrial portfolio, FIBRAMQ achieved a weighted average positive releasing spread of 27.7% in respect of 2Q25. During the prior 12-month period, FIBRAMQ achieved a weighted average lease spread of 22.0% in respect of commercially negotiated lease renewals generating US$33.2 million of annualized base rent. For further details about FIBRA Macquarie's Second Quarter 2025 results, please refer to the Supplementary Information materials located at BMV Filings ( Replacement of Trustee As previously announced, FIBRAMQ replaced CIBanco, S.A., Institución de Banca Múltiple ('CIBanco') with HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, as FIBRA trustee effective July 18, 2025. BALANCE SHEET At June 30, 2025, FIBRAMQ had US$1,230.2 million of debt outstanding and total liquidity of US$420.9 million comprising US$228.8 million available on its undrawn committed revolving credit facilities as well as US$192.1 million of unrestricted cash on hand. FIBRAMQ's indebtedness is 85.0% fixed rate, with 3.0 years of weighted average tenor remaining. As of June 30, 2025, FIBRAMQ's CNBV regulatory debt to total asset ratio was 33.7% and debt service coverage ratio was 6.3x. CERTIFICATE REPURCHASE PROGRAM FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2026. No certificates were repurchased during the quarter. SUSTAINABILITY At June 30, 2025, FIBRA Macquarie's green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 481bps YoY. The sustainability and green financing linked portion of drawn debt stands at 68.3% DISTRIBUTION FIBRAMQ declared a cash distribution of Ps. 0.6125 per certificate for the quarter ended June 30, 2025. The distribution is expected to be paid on or about September 26, 2025, to holders of record on September 25, 2025. FIBRAMQ's certificates are expected to commence trading ex-distribution on September 25, 2025. FY25 GUIDANCE AFFO FIBRA Macquarie is reaffirming its FY25 AFFO guidance in underlying US dollar terms to a range of US$115.0 million to US$119.0 million, representing an annual increase of between 1.0% and 5.0%. FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico's key trading relationships. This guidance assumes: an average exchange rate of Ps. 18.50 per US dollar for the remainder of 2025; no new acquisitions or divestments; no issuances or repurchases of certificates; no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners Following the recent appreciation of the Peso relative to the US dollar, FIBRAMQ is updating its FY25 AFFO per certificate guidance to a range of Ps. 2.80 to Ps. 2.85. Cash Distribution FIBRAMQ is reaffirming guidance for cash distributions in FY25 of Ps. 2.45 per certificate, paid in equal quarterly instalments of Ps. 0.6125 per certificate. The FY25 per certificate cash distribution guidance equates to an annual increase of 16.7% in Peso terms, with an expected FY25 AFFO payout ratio of approximately 87.0%, based on the AFFO guidance midpoint. In underlying USD terms, the FY25 cash distribution guidance equates to approximately US$101 million, representing an annual increase of 10.8%. The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ's capital position. Outstanding certificates FIBRA Macquarie had 797,311,397 outstanding certificates as of June 30, 2025. WEBCAST AND CONFERENCE CALL FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 25, 2025, at 11:00 a.m. CT / 13:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Second Quarter 2025 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie's financial information for the second quarter 2025 will also be available on FIBRAMQ's website, About FIBRA Macquarie FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie's portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of June 30, 2025. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit Cautionary Note Regarding Forward-looking Statements This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements. Other than Macquarie Bank Limited ABN 46 008 583 542 ('Macquarie Bank'), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment. THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
Business Recorder
18-07-2025
- Business
- Business Recorder
India's Reliance quarterly profit surges 78%, tops view
Indian billionaire Mukesh Ambani's Reliance Industries beat estimates for quarterly profit on Friday, powered by strong growth in its energy, retail and digital services businesses. India needs to boost its petrochemical output to counter China's dominance, Reliance says Consolidated profit soared 78.3% to 269.94 billion rupees ($3.14 billion)for the quarter ended June 30, beating analysts' average estimate of 198.59 billion rupees, according to data compiled by LSEG.
Yahoo
24-06-2025
- Business
- Yahoo
TD SYNNEX Reports Fiscal 2025 Second Quarter Results
Revenue of $14.9 billion, an increase of 7.2% year over year and above the high end of our outlook. On a constant currency(1) basis, revenue increased by 6.3% year over year. Non-GAAP gross billings(1) of $21.6 billion, an increase of 12.1% year over year and above the high end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by 11.3% year over year. Diluted earnings per share ("EPS") of $2.21 and non-GAAP diluted EPS(1) of $2.99, above the high end of our outlook. Cash provided by operations of $573 million and free cash flow(1) of $543 million. Returned $186 million to stockholders in the form of $149 million of share repurchases and $37 million in dividends. Announced a quarterly cash dividend of $0.44 per common share, up 10% year over year. FREMONT, Calif. & CLEARWATER, Fla., June 24, 2025--(BUSINESS WIRE)--TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal second quarter ended May 31, 2025. "Our Q2 results demonstrate the continued strength of the IT Distribution and Hyperscaler markets, meanwhile, our strategy and the execution of our team are enabling us to grow ahead of market," said Patrick Zammit, CEO of TD SYNNEX. "Gross billings grew double digits and non-GAAP diluted EPS exceeded the high end of our guidance with all regions and major technologies contributing." Consolidated Financial Highlights for the Fiscal 2025 Second Quarter: GAAP ($ in millions, except earnings per share) Q2 FY25 Q2 FY24 Net Change from Q2 FY24 Revenue $ 14,946.3 $ 13,947.9 7.2 % Gross profit $ 1,046.4 $ 973.5 7.5 % Gross margin 7.00 % 6.98 % 2 bps Operating income $ 328.1 $ 263.9 24.3 % Operating margin 2.20 % 1.89 % 31 bps Net income $ 184.9 $ 143.6 28.8 % Diluted EPS $ 2.21 $ 1.66 33.1 % Non-GAAP ($ in millions, except earnings per share) Q2 FY25 Q2 FY24 Net Change from Q2 FY24 Gross billings(1) $ 21,647.5 $ 19,304.6 12.1 % Gross to net %(1) (31.0 )% (27.7 )% (330) bps Revenue $ 14,946.3 $ 13,947.9 7.2 % Gross profit $ 1,046.4 $ 973.5 7.5 % Gross margin 7.00 % 6.98 % 2 bps Operating income(1) $ 414.0 $ 388.0 6.7 % Operating margin(1) 2.77 % 2.78 % (1) bps Net income(1) $ 250.5 $ 236.9 5.8 % Diluted EPS(1) $ 2.99 $ 2.73 9.5 % Consolidated Fiscal 2025 Second Quarter versus Fiscal 2024 Second Quarter Highlights Revenue was $14.9 billion, compared to $13.9 billion, representing an increase of 7.2% and above the high end of our outlook. On a constant currency(1) basis, revenue increased by 6.3%, driven by growth in both our Endpoint Solutions and Advanced Solutions portfolios. A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately 5%. Non-GAAP gross billings(1) were $21.6 billion, compared to $19.3 billion, representing an increase of 12.1% and above the high end of our outlook. On a constant currency(1) basis, non-GAAP gross billings(1) increased by 11.3%. Gross profit was $1,046 million, compared to $974 million. Gross margin was 7.0% in both periods. The presentation of additional revenues on a net basis due to the mix of products sold positively impacted our gross margin by approximately 31 basis points. Operating income was $328 million, compared to $264 million. Non-GAAP operating income(1) was $414 million, compared to $388 million. Operating margin was 2.2%, compared to 1.9%. Non-GAAP operating margin(1) was 2.8% in both periods. Diluted EPS was $2.21, compared to $1.66. Non-GAAP diluted EPS(1) was $2.99, compared to $2.73. Cash provided by operations of $573 million, compared to cash used in operations of $115 million, and free cash flow(1) of $543 million, compared to negative free cash flow(1) of $153 million. We returned $186 million to stockholders in the form of share repurchases and dividends, compared to $288 million. Regional Fiscal 2025 Second Quarter versus Fiscal 2024 Second Quarter Highlights Americas: Revenue was $9.0 billion, compared to $8.6 billion, representing an increase of 5.3%. On a constant currency(1) basis, revenue increased by 5.7%. A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately 4%. Non-GAAP gross billings(1) were $13.3 billion, compared to $12.2 billion, representing an increase of 9.0%. On a constant currency(1) basis, non-GAAP gross billings(1) increased by 9.4%. Operating income was $253 million, compared to $209 million. Non-GAAP operating income(1) was $301 million, compared to $285 million. Operating margin was 2.8%, compared to 2.4%. Non-GAAP operating margin(1) was 3.3% in both periods. Europe: Revenue was $4.9 billion, compared to $4.4 billion, representing an increase of 10.5%. On a constant currency(1) basis, revenue increased by 7.3%. A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately 6%. Non-GAAP gross billings(1) were $6.8 billion, compared to $5.9 billion, representing an increase of 16.7%. On a constant currency(1) basis, non-GAAP gross billings(1) increased by 13.3%. Operating income was $50 million, compared to $34 million. Non-GAAP operating income(1) was $86 million, compared to $81 million. Operating margin was 1.0%, compared to 0.8%. Non-GAAP operating margin(1) was 1.8% in both periods. Asia-Pacific and Japan ("APJ"): Revenue was $1.0 billion, compared to $964 million, representing an increase of 8.7%. On a constant currency(1) basis, revenue increased by 7.6%. A greater percentage of our sales were presented on a net basis due to the mix of products sold, which negatively impacted our revenue compared to the prior fiscal second quarter by approximately 13%. Non-GAAP gross billings(1) were $1.5 billion, compared to $1.2 billion, representing an increase of 22.0%. On a constant currency(1) basis, non-GAAP gross billings(1) increased by 21.1%. Operating income was $25 million, compared to $20 million. Non-GAAP operating income(1) was $27 million, compared to $22 million. Operating margin was 2.4%, compared to 2.1%. Non-GAAP operating margin(1) was 2.6%, compared to 2.3%. Fiscal 2025 Third Quarter Outlook The following statements are based on TD SYNNEX's current expectations for the fiscal 2025 third quarter. These statements are forward-looking and actual results may differ materially. Non-GAAP gross billings(1) include the impact of costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts, and the remaining non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, and the related tax effects thereon. Q3 2025 Outlook Revenue $14.7 - $15.5 billion Non-GAAP gross billings(1) $21.0 - $22.0 billion Net income $159 - $200 million Non-GAAP net income(1) $227 - $268 million Diluted earnings per share $1.93 - $2.43 Non-GAAP diluted earnings per share(1) $2.75 - $3.25 Estimated outstanding diluted weighted average shares 81.8 million Dividend TD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.44 per common share. The dividend is payable on July 25, 2025 to stockholders of record as of the close of business on July 11, 2025. Conference Call and Webcast TD SYNNEX will host a conference call today to discuss the 2025 fiscal second quarter results at 6:00 AM (PT)/9:00 AM (ET). A live audio webcast of the earnings call will be accessible at and a replay of the webcast will be available following the call. About TD SYNNEX TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. We are an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, deliver business outcomes and unlock growth opportunities while helping optimize their operating model. Headquartered in Clearwater, Florida and Fremont, California, TD SYNNEX's 23,000 co-workers are dedicated to uniting compelling IT products, services and solutions from approximately 2,500 best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility and everything as a service. TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem. For more information, visit follow our newsroom or find us on LinkedIn, Facebook and Instagram. (1)Use of Non-GAAP Financial Information In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to: Non-GAAP gross billings, which are the amounts billed to the customer prior to any presentation adjustment under ASC Topic 606 for those arrangements where the Company does not act as the principal. Non-GAAP gross billings are a useful non-GAAP metric in understanding the volume of our business activity and serve as an important performance metric in internally managing our operations. Revenue and non-GAAP gross billings in constant currency, which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods' currency conversion rate. "Gross to net %" refers to the percentage of adjustments made to non-GAAP gross billings for costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts. Adjusted selling, general and administrative expenses, which excludes acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also uses adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings, which is a useful metric in considering our selling, general and administrative expenses without the impact of gross to net revenue adjustments to gross billings. Furthermore, TD SYNNEX uses adjusted selling, general and administrative expenses as a percentage of gross profit, which is a useful metric in considering the portion of gross profit retained after selling, general and administrative expenses. Non-GAAP operating income and non-GAAP operating margin, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. Earnings before interest, taxes, depreciation and amortization ("EBITDA"), which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, and amortization of intangibles. TD SYNNEX also uses adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, amortization of intangibles, other income (expense), net, acquisition, integration and restructuring costs, and share-based compensation expense. Non-GAAP net income and non-GAAP diluted earnings per share, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, and the related tax effects thereon. Free cash flow, which is cash flow from operating activities reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because although it is similar to cash flows from operating activities, TD SYNNEX believes free cash flow is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX's liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows. Trailing fiscal four quarters return on invested capital ("ROIC"), which is defined as the last four quarters' tax effected operating income divided by the average of the last five quarterly balances of borrowings and equity, net of cash. Adjusted ROIC is calculated by excluding the tax effected impact of non-GAAP adjustments from operating income and by excluding the cumulative tax effected impact of current and prior period non-GAAP adjustments on equity. In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures. Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture. TD SYNNEX's acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company's Statements of Operations. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company's products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company's Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period. TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX's operational results and trends that more readily enable investors to analyze TD SYNNEX's base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX's Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX's GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release. Safe Harbor Statement Statements in this news release regarding TD SYNNEX that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of factors. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements about our strategy, demand, plans and positioning, capital allocation, as well as guidance related to the third quarter of 2025. Such forward-looking statements are based upon management's current expectations and include known and unknown risks, uncertainties and other factors, many of which TD SYNNEX is unable to predict or control, that may cause TD SYNNEX actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic and political conditions; weakness in information technology spending; seasonality; risks related to the buying patterns of our customers, concentration of sales to large customers; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; the timing and amount of returns to our stockholders via repurchases of our common stock and dividends; changes in foreign currency exchange rates and interest rates; increased inflation; uncertainty over global trade policies and the impacts of related tariffs; dependence upon and trends in capital spending budgets in the IT industry; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our supplier finance programs; credit exposure to our reseller customers and negative trends in their businesses; any incidents of theft; the declaration, timing and payment of dividends, and the Board's reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2024 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release unless otherwise required by law. Copyright 2025 TD SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of TD SYNNEX Corporation. Other names and marks are the property of their respective owners. TD SYNNEX Corporation Consolidated Balance Sheets (Currency and share amounts in thousands, except par value) (Amounts may not add or compute due to rounding) (Unaudited) May 31, 2025 November 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 767,099 $ 1,059,378 Accounts receivable, net 10,127,960 10,341,625 Receivables from vendors, net 987,901 958,105 Inventories 8,655,741 8,287,048 Other current assets 954,078 678,540 Total current assets 21,492,779 21,324,696 Property and equipment, net 482,912 457,024 Goodwill 3,997,641 3,895,077 Intangible assets, net 3,893,177 3,912,267 Other assets, net 642,673 685,415 Total assets $ 30,509,182 $ 30,274,479 LIABILITIES AND EQUITY Current liabilities: Borrowings, current $ 382,425 $ 171,092 Accounts payable 14,542,575 15,084,107 Other accrued liabilities 2,197,402 1,966,036 Total current liabilities 17,122,402 17,221,235 Long-term borrowings 3,723,280 3,736,399 Other long-term liabilities 487,227 468,648 Deferred tax liabilities 833,906 812,763 Total liabilities 22,166,815 22,239,045 Stockholders' equity: Common stock, $0.001 par value, 200,000 shares authorized, 99,012 shares issued as of both May 31, 2025 and November 30, 2024 99 99 Additional paid-in capital 7,448,114 7,437,688 Treasury stock, 17,092 and 15,289 shares as of May 31, 2025 and November 30, 2024, respectively (1,737,413 ) (1,513,017 ) Accumulated other comprehensive loss (402,554 ) (645,117 ) Retained earnings 3,034,121 2,755,781 Total stockholders' equity 8,342,367 8,035,434 Total liabilities and equity $ 30,509,182 $ 30,274,479 TD SYNNEX Corporation Consolidated Statements of Operations (Currency and share amounts in thousands, except per share amounts) (Amounts may not add or compute due to rounding) (Unaudited) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Revenue $ 14,946,315 $ 13,947,908 $ 29,478,022 $ 27,923,161 Cost of revenue (13,899,942 ) (12,974,361 ) (27,433,643 ) (25,943,848 ) Gross profit 1,046,373 973,547 2,044,379 1,979,313 Selling, general and administrative expenses (717,570 ) (671,714 ) (1,410,055 ) (1,343,259 ) Acquisition, integration and restructuring costs (664 ) (37,885 ) (1,726 ) (69,534 ) Operating income 328,139 263,948 632,598 566,520 Interest expense and finance charges, net (89,982 ) (76,701 ) (177,862 ) (152,592 ) Other expense, net (79 ) (3,091 ) (1,775 ) (5,975 ) Income before income taxes 238,078 184,156 452,961 407,953 Provision for income taxes (53,157 ) (40,551 ) (100,503 ) (92,220 ) Net income $ 184,921 $ 143,605 $ 352,458 $ 315,733 Earnings per common share: Basic $ 2.22 $ 1.67 $ 4.20 $ 3.61 Diluted $ 2.21 $ 1.66 $ 4.19 $ 3.60 Weighted-average common shares outstanding: Basic 82,626 85,453 83,115 86,655 Diluted 82,935 85,869 83,447 87,019 TD SYNNEX Corporation Consolidated Statements of Cash Flows (Currency amounts in thousands) (Amounts may not add or compute due to rounding) (Unaudited) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Cash flows from operating activities: Net income $ 184,921 $ 143,605 $ 352,458 $ 315,733 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 103,595 106,287 203,305 206,906 Share-based compensation 11,950 13,430 33,811 30,920 Provision for doubtful accounts 4,576 (6,272 ) 10,942 4,922 Other 1,579 4,469 5,952 5,639 Changes in operating assets and liabilities, net of acquisition of businesses: Accounts receivable, net (393,970 ) 42,175 460,250 1,385,250 Receivables from vendors, net 9,599 82,541 (7,041 ) 128,921 Inventories (111,776 ) (17,340 ) (214,637 ) 24,836 Accounts payable 1,099,965 (219,135 ) (870,147 ) (1,145,971 ) Other operating assets and liabilities (337,257 ) (264,468 ) (149,708 ) (687,155 ) Net cash provided by (used in) operating activities 573,182 (114,708 ) (174,815 ) 270,001 Cash flows from investing activities: Purchases of property and equipment (30,243 ) (37,822 ) (71,768 ) (78,910 ) Acquisition of businesses, net of cash acquired (666 ) 2,205 (4,459 ) (26,238 ) Other 4,363 2,730 5,149 4,351 Net cash used in investing activities (26,546 ) (32,887 ) (71,078 ) (100,797 ) Cash flows from financing activities: Dividends paid (36,898 ) (34,191 ) (74,118 ) (69,843 ) Proceeds from reissuance of treasury stock 2,732 2,780 12,513 5,507 Repurchases of common stock (148,818 ) (254,150 ) (249,328 ) (453,375 ) Repurchases of common stock for tax withholdings on equity awards (4,582 ) (1,489 ) (8,832 ) (6,287 ) Net (repayments) borrowings on revolving credit loans (212,714 ) 10,622 208,708 (45,433 ) Principal payments on long-term debt (14,914 ) (766,510 ) (15,541 ) (784,714 ) Borrowings on long-term debt — 1,349,376 — 1,349,376 Cash paid for debt issuance costs — (12,715 ) — (12,715 ) Net cash (used in) provided by financing activities (415,194 ) 293,723 (126,598 ) (17,484 ) Effect of exchange rate changes on cash and cash equivalents 93,794 (3,426 ) 80,212 (11,848 ) Net increase (decrease) in cash and cash equivalents 225,236 142,702 (292,279 ) 139,872 Cash and cash equivalents at beginning of period 541,863 1,030,946 1,059,378 1,033,776 Cash and cash equivalents at end of period $ 767,099 $ 1,173,648 $ 767,099 $ 1,173,648 TD SYNNEX Corporation Regional Financial Highlights - Fiscal 2025 Second Quarter (Currency in millions) (Amounts may not add or compute due to rounding) Q2 FY25 Q2 FY24 Net Change from Q2 FY24 Americas Revenue $ 9,009.2 $ 8,557.6 5.3 % Non-GAAP gross billings(1) $ 13,345.6 $ 12,247.2 9.0 % Operating income $ 252.6 $ 209.3 20.7 % Non-GAAP operating income(1) $ 301.3 $ 285.1 5.7 % Operating margin 2.80 % 2.45 % 35 bps Non-GAAP operating margin(1) 3.34 % 3.33 % 1 bps Europe Revenue $ 4,890.0 $ 4,426.8 10.5 % Non-GAAP gross billings(1) $ 6,843.0 $ 5,861.9 16.7 % Operating income $ 50.3 $ 34.4 46.4 % Non-GAAP operating income(1) $ 85.8 $ 80.8 6.1 % Operating margin 1.03 % 0.78 % 25 bps Non-GAAP operating margin(1) 1.75 % 1.83 % (8) bps APJ Revenue $ 1,047.1 $ 963.6 8.7 % Non-GAAP gross billings(1) $ 1,458.9 $ 1,195.5 22.0 % Operating income $ 25.2 $ 20.3 24.0 % Non-GAAP operating income(1) $ 26.9 $ 22.1 22.0 % Operating margin 2.40 % 2.11 % 29 bps Non-GAAP operating margin(1) 2.57 % 2.29 % 28 bps (1) A reconciliation of TD SYNNEX's GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release. TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Revenue in constant currency Consolidated Revenue $ 14,946,315 $ 13,947,908 $ 29,478,022 $ 27,923,161 Impact of changes in foreign currencies (114,574 ) — 169,122 — Revenue in constant currency $ 14,831,741 $ 13,947,908 $ 29,647,144 $ 27,923,161 Americas Revenue $ 9,009,195 $ 8,557,573 $ 17,398,533 $ 16,460,669 Impact of changes in foreign currencies 38,184 — 104,423 — Revenue in constant currency $ 9,047,379 $ 8,557,573 $ 17,502,956 $ 16,460,669 Europe Revenue $ 4,889,997 $ 4,426,775 $ 10,027,762 $ 9,544,027 Impact of changes in foreign currencies (142,261 ) — 56,417 — Revenue in constant currency $ 4,747,736 $ 4,426,775 $ 10,084,179 $ 9,544,027 APJ Revenue $ 1,047,123 $ 963,560 $ 2,051,727 $ 1,918,465 Impact of changes in foreign currencies (10,497 ) — 8,282 — Revenue in constant currency $ 1,036,626 $ 963,560 $ 2,060,009 $ 1,918,465 TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP gross billings Consolidated Revenue $ 14,946,315 $ 13,947,908 $ 29,478,022 $ 27,923,161 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 6,701,215 5,356,701 12,887,704 10,648,181 Non-GAAP gross billings $ 21,647,530 $ 19,304,609 $ 42,365,726 $ 38,571,342 Impact of changes in foreign currencies (153,712 ) — 227,642 — Non-GAAP gross billings in constant currency $ 21,493,818 $ 19,304,609 $ 42,593,368 $ 38,571,342 Americas Revenue $ 9,009,195 $ 8,557,573 $ 17,398,533 $ 16,460,669 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 4,336,436 3,689,627 8,392,915 7,292,874 Non-GAAP gross billings $ 13,345,631 $ 12,247,200 $ 25,791,448 $ 23,753,543 Impact of changes in foreign currencies 58,669 — 164,813 — Non-GAAP gross billings in constant currency $ 13,404,300 $ 12,247,200 $ 25,956,261 $ 23,753,543 Europe Revenue $ 4,889,997 $ 4,426,775 $ 10,027,762 $ 9,544,027 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 1,953,011 1,435,171 3,702,424 2,919,298 Non-GAAP gross billings $ 6,843,008 $ 5,861,946 $ 13,730,186 $ 12,463,325 Impact of changes in foreign currencies (201,688 ) — 49,943 — Non-GAAP gross billings in constant currency $ 6,641,320 $ 5,861,946 $ 13,780,129 $ 12,463,325 APJ Revenue $ 1,047,123 $ 963,560 $ 2,051,727 $ 1,918,465 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 411,768 231,903 792,365 436,009 Non-GAAP gross billings $ 1,458,891 $ 1,195,463 $ 2,844,092 $ 2,354,474 Impact of changes in foreign currencies (10,693 ) — 12,886 — Non-GAAP gross billings in constant currency $ 1,448,198 $ 1,195,463 $ 2,856,978 $ 2,354,474 TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Adjusted selling, general and administrative expenses Revenue $ 14,946,315 $ 13,947,908 $ 29,478,022 $ 27,923,161 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 6,701,215 5,356,701 12,887,704 10,648,181 Non-GAAP gross billings $ 21,647,530 $ 19,304,609 $ 42,365,726 $ 38,571,342 Gross profit $ 1,046,373 $ 973,547 $ 2,044,379 $ 1,979,313 Selling, general and administrative expenses(1) $ 717,570 $ 671,714 $ 1,410,055 $ 1,343,259 Amortization of intangibles (73,282 ) (72,759 ) (144,689 ) (145,636 ) Share-based compensation (11,950 ) (13,430 ) (33,811 ) (30,920 ) Adjusted selling, general and administrative expenses $ 632,338 $ 585,525 $ 1,231,555 $ 1,166,703 Selling, general and administrative expenses(1) as a percentage of revenue 4.80 % 4.82 % 4.78 % 4.81 % Adjusted selling, general and administrative expenses as a percentage of non-GAAP gross billings 2.92 % 3.03 % 2.91 % 3.02 % Selling, general and administrative expenses(1) as a percentage of gross profit 68.6 % 69.0 % 69.0 % 67.9 % Adjusted selling, general and administrative expenses as a percentage of gross profit 60.4 % 60.1 % 60.2 % 58.9 % (1) Excludes acquisition, integration and restructuring costs, which are presented separately on the Consolidated Statements of Operations. TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP operating income & non-GAAP operating margin - Consolidated Revenue $ 14,946,315 $ 13,947,908 $ 29,478,022 $ 27,923,161 Operating income $ 328,139 $ 263,948 $ 632,598 $ 566,520 Acquisition, integration and restructuring costs 664 37,885 1,726 69,534 Amortization of intangibles 73,282 72,759 144,689 145,636 Share-based compensation 11,950 13,430 33,811 30,920 Non-GAAP operating income $ 414,035 $ 388,022 $ 812,824 $ 812,610 Operating margin 2.20 % 1.89 % 2.15 % 2.03 % Non-GAAP operating margin 2.77 % 2.78 % 2.76 % 2.91 % Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP operating income & non-GAAP operating margin - Americas Revenue $ 9,009,195 $ 8,557,573 $ 17,398,533 $ 16,460,669 Operating income $ 252,646 $ 209,284 $ 446,368 $ 368,966 Acquisition, integration and restructuring costs 58 25,395 382 52,767 Amortization of intangibles 40,488 41,518 80,905 82,971 Share-based compensation 8,133 8,925 21,784 20,723 Non-GAAP operating income $ 301,325 $ 285,122 $ 549,439 $ 525,427 Operating margin 2.80 % 2.45 % 2.57 % 2.24 % Non-GAAP operating margin 3.34 % 3.33 % 3.16 % 3.19 % Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP operating income & non-GAAP operating margin - Europe Revenue $ 4,889,997 $ 4,426,775 $ 10,027,762 $ 9,544,027 Operating income $ 50,312 $ 34,360 $ 136,204 $ 142,685 Acquisition, integration and restructuring costs 499 12,049 1,125 16,001 Amortization of intangibles 31,988 30,621 62,177 61,423 Share-based compensation 2,999 3,811 9,859 8,574 Non-GAAP operating income $ 85,798 $ 80,841 $ 209,365 $ 228,683 Operating margin 1.03 % 0.78 % 1.36 % 1.50 % Non-GAAP operating margin 1.75 % 1.83 % 2.09 % 2.40 % TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP operating income & non-GAAP operating margin - APJ Revenue $ 1,047,123 $ 963,560 $ 2,051,727 $ 1,918,465 Operating income $ 25,181 $ 20,304 $ 50,026 $ 54,869 Acquisition, integration and restructuring costs 107 441 219 766 Amortization of intangibles 806 620 1,607 1,242 Share-based compensation 818 694 2,168 1,623 Non-GAAP operating income $ 26,912 $ 22,059 $ 54,020 $ 58,500 Operating margin 2.40 % 2.11 % 2.44 % 2.86 % Non-GAAP operating margin 2.57 % 2.29 % 2.63 % 3.05 % Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 EBITDA & adjusted EBITDA Net income $ 184,921 $ 143,605 $ 352,458 $ 315,733 Interest expense and finance charges, net 89,982 76,701 177,862 152,592 Provision for income taxes 53,157 40,551 100,503 92,220 Depreciation(1) 30,313 33,528 58,616 61,270 Amortization of intangibles 73,282 72,759 144,689 145,636 EBITDA $ 431,655 $ 367,144 $ 834,128 $ 767,451 Other expense, net 79 3,091 1,775 5,975 Acquisition, integration and restructuring costs 664 32,794 1,726 64,048 Share-based compensation 11,950 13,430 33,811 30,920 Adjusted EBITDA $ 444,348 $ 416,459 $ 871,440 $ 868,394 (1) Includes depreciation recorded in acquisition, integration, and restructuring costs. TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Currency in thousands, except per share amounts) (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Non-GAAP net income & non-GAAP diluted EPS(1) Net income $ 184,921 $ 143,605 $ 352,458 $ 315,733 Acquisition, integration and restructuring costs 664 37,885 1,726 69,534 Amortization of intangibles 73,282 72,759 144,689 145,636 Share-based compensation 11,950 13,430 33,811 30,920 Income taxes related to the above (20,300 ) (30,818 ) (44,796 ) (58,739 ) Non-GAAP net income $ 250,517 $ 236,861 $ 487,888 $ 503,084 Diluted EPS(1) $ 2.21 $ 1.66 $ 4.19 $ 3.60 Acquisition, integration and restructuring costs 0.01 0.44 0.02 0.79 Amortization of intangibles 0.87 0.84 1.71 1.66 Share-based compensation 0.14 0.15 0.40 0.35 Income taxes related to the above (0.24 ) (0.36 ) (0.53 ) (0.67 ) Non-GAAP Diluted EPS(1) $ 2.99 $ 2.73 $ 5.79 $ 5.73 (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. For purposes of calculating Diluted EPS, net income allocated to participating securities was approximately 0.9% of net income for all periods presented. TD SYNNEX Corporation Reconciliation of GAAP to Non-GAAP financial measures (Amounts may not add or compute due to rounding) Three Months Ended Six Months Ended (Currency in thousands) May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Free cash flow Net cash provided by (used in) operating activities $ 573,182 $ (114,708 ) $ (174,815 ) $ 270,001 Purchases of property and equipment (30,243 ) (37,822 ) (71,768 ) (78,910 ) Free cash flow $ 542,939 $ (152,530 ) $ (246,583 ) $ 191,091 Forecast Three Months Ending (Currency in millions, except per share amounts) August 31, 2025 Non-GAAP net income and non-GAAP Diluted EPS Low High Net income $ 159 $ 200 Amortization of intangibles 75 75 Share-based compensation 13 13 Income taxes related to the above (20 ) (20 ) Non-GAAP net income $ 227 $ 268 Diluted EPS(1) $ 1.93 $ 2.43 Amortization of intangibles 0.91 0.91 Share-based compensation 0.15 0.15 Income taxes related to the above (0.24 ) (0.24 ) Non-GAAP Diluted EPS(1) $ 2.75 $ 3.25 (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities. Net income allocable to participating securities is estimated to be approximately 0.9% of the forecast net income for the three months ending August 31, 2025. Forecast Three Months Ending (Currency in billions) August 31, 2025 Non-GAAP gross billings Low High Revenue $ 14.7 $ 15.5 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 6.3 6.5 Non-GAAP gross billings $ 21.0 $ 22.0 TD SYNNEX Corporation Calculation of Financial Metrics Return on Invested Capital ("ROIC") (Currency in thousands) (Amounts may not add or compute due to rounding) May 31, 2025 May 31, 2024 ROIC Operating income (trailing fiscal four quarters) $ 1,260,289 $ 1,093,507 Income taxes on operating income(1) (256,291 ) (220,648 ) Operating income after taxes $ 1,003,998 $ 872,859 Total invested capital comprising equity and borrowings, less cash (last five quarters average) $ 11,427,978 $ 11,281,778 ROIC 8.8 % 7.7 % Adjusted ROIC Non-GAAP operating income (trailing fiscal four quarters) $ 1,627,244 $ 1,635,994 Income taxes on non-GAAP operating income(1) (358,374 ) (365,917 ) Non-GAAP operating income after taxes $ 1,268,870 $ 1,270,077 Total invested capital comprising equity and borrowings, less cash (last five quarters average) $ 11,427,978 $ 11,281,778 Tax effected impact of cumulative non-GAAP adjustments (last five quarters average) 1,602,973 1,272,871 Total non-GAAP invested capital (last five quarters average) $ 13,030,951 $ 12,554,649 Adjusted ROIC 9.7 % 10.1 % (1) Income taxes on GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. Income taxes on non-GAAP operating income was calculated by excluding the tax effect of taxable and deductible non-GAAP adjustments using the effective year-to-date tax rate during the respective periods. TD SYNNEX Corporation Calculation of Financial Metrics Cash Conversion Cycle (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended May 31, 2025 May 31, 2024 Days sales outstanding Revenue (a) $ 14,946,315 $ 13,947,908 Accounts receivable, net (b) 10,127,960 8,852,525 Days sales outstanding (c) = ((b)/(a))*the number of days during the period 62 59 Days inventory outstanding Cost of revenue (d) $ 13,899,942 $ 12,974,361 Inventories (e) 8,655,741 7,098,247 Days inventory outstanding (f) = ((e)/(d))*the number of days during the period 57 50 Days payable outstanding Cost of revenue (g) $ 13,899,942 $ 12,974,361 Accounts payable (h) 14,542,575 12,134,581 Days payable outstanding (i) = ((h)/(g))*the number of days during the period 96 86 Cash conversion cycle (j) = (c)+(f)-(i) 23 23 View source version on Contacts David JordanInvestor Relations510-668-8436IR@ Bobby EagleGlobal Corporate
Yahoo
17-06-2025
- Business
- Yahoo
La-Z-Boy Incorporated Reports Strong Fourth Quarter and Full Year Results; Sales Growth Across All Segments for the Year and Strong Operating Cash Flow Performance
Fiscal 2025 Fourth Quarter Highlights: Consolidated delivered sales of $571 million Up 3% versus prior year Retail segment delivered sales increased 8% Company-owned La-Z-Boy Furniture Galleries® network grew by a total of six stores; 203 company-owned store base now represents 55% of total network Wholesale segment delivered sales increased 2% GAAP operating margin of 5.2%; adjusted(1) operating margin of 9.4%, flat versus the year ago period GAAP diluted EPS of $0.36 and adjusted(1) diluted EPS of $0.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items Delivered sales exceeded high end of guidance range and adjusted(1) operating margin at high end of guidance range Generated $62 million in operating cash flow for the quarter, up 17% versus prior year Fiscal 2025 Highlights: Consolidated delivered sales of $2.1 billion Up 3% versus prior year Retail segment delivered sales increased 5% Added 11 newly opened stores, one of the largest yearly expansions in company history, and acquired seven independent La-Z-Boy Furniture Galleries® stores Wholesale segment delivered sales increased 2% Joybird delivered sales increased 5% GAAP operating margin of 6.4%; adjusted(1) operating margin of 7.6%, down 20 basis points versus a year ago GAAP diluted EPS of $2.35 and adjusted(1) diluted EPS of $2.92, both of which include a $0.10 impact from unfavorable foreign tax discrete items Generated $187 million in operating cash flow for the year, up 18% versus prior year Returned $113 million to shareholders through share repurchases and dividends Increased quarterly dividend by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase MONROE, Mich., June 17, 2025 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in the retail and manufacture of residential furniture, today reported strong fourth quarter results for the period ended April 26, 2025. For the quarter, sales totaled $571 million, growing 3% against the prior year comparable period. Operating margin was 5.2% for the quarter on a GAAP basis and 9.4% on an adjusted(1) basis. Diluted earnings per share totaled $0.36 on a GAAP basis and $0.92 on an adjusted(1) basis, both of which include a $0.10 impact from unfavorable foreign tax discrete items. The company returned $113 million to shareholders for the year, up over 30% versus the prior year. Fourth quarter total written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries®) grew 3% versus a year ago and written same-store sales (which exclude the impact of newly opened stores and newly acquired stores) were down 5% versus a year ago. Continued challenges in the housing market with stubbornly high mortgage rates and increased volatility in the global economy negatively influenced consumer sentiment and had an adverse impact on industry trends. Industry data for the quarter was mixed with public company peers noting same-store sales of relatively flat to declines in the mid-teen range, while the broader industry data as reported by the U.S. Census Bureau indicated an increase in the mid-single digits. Melinda D. Whittington, Board Chair, President and Chief Executive Officer of La-Z-Boy Incorporated, said, 'Our fourth quarter results reflect the ongoing strengthening of our brand and operations under our Century Vision strategy. We executed well throughout the year with sales growth across all of our segments and four consecutive quarters of top line growth, even as the industry contends with depressed housing fundamentals and growing macro uncertainty. We are controlling what we can control with distinct strategies and initiatives across each of our businesses. In Retail, we continue to grow our direct-to-consumer business, own the entire end-to-end consumer experience, and develop more value-added consumer insights. Through opening net new stores and also acquiring existing independent La-Z-Boy Furniture Galleries®, we reached a new milestone in the quarter, growing our company-owned store footprint to over 200 stores, nearly doubling our store count over the last 10 years, and now owning 55% of the total network. In Wholesale, we continue to expand our brand reach with compatible strategic partners to serve more consumers. Additionally, we are successfully driving scale and efficiencies in our supply chain. This is highlighted by our core North America La-Z-Boy wholesale business achieving sales growth and margin expansion for four consecutive quarters during fiscal 2025, and continuing to strengthen as we initiate our multi-year distribution and delivery redesign.' Whittington added, 'Even as we expect global economic uncertainty to continue challenging consumers in the near term, we are confident in the strength of our business model to outperform our peers and deliver strong financial performance. La-Z-Boy is an iconic brand in a highly fragmented market. We have successfully navigated challenging times throughout our 98-year history by delivering comfort and quality to our consumers. A strong balance sheet combined with an agile supply chain provides us a position of strength in the industry. We will continue to execute our playbook to mitigate an ever changing environment and drive long-term profitable growth and returns for all stakeholders.' First Quarter Outlook:Taylor Luebke, SVP and Chief Financial Officer of La-Z-Boy Incorporated, said, 'We delivered growth and strong financial results in what was another challenging year for the industry. We continue to control what we can control and are executing against our Century Vision strategy, which will enable growth through our centennial and beyond. I am pleased with our progress, and our ability to deliver results at or above the high end of our sales and margin expectations for the fourth quarter, even in light of considerable volatility during the quarter. Given higher levels of uncertainty in the broader economic climate, we expect the industry outlook to continue to be volatile and we are planning prudently to navigate the year ahead. We expect to continue to outperform the industry, driven by growth in our company-owned Retail segment and core North America La-Z-Boy wholesale business. Assuming no significant changes in external factors, we expect fiscal first quarter sales to be in the range of $490-$510 million, reflecting modest growth in a challenged consumer environment. We expect adjusted operating margin(2) to be in the range of 5.5-7.0%, including the impact of transitory pressure from our UK and Joybird businesses, as well as investment in our distribution network and home delivery redesign project. Also, as a reminder, our first quarter is generally the lowest sales and margin quarter in the fiscal year due to seasonally lower industry sales and our annual week-long plant shutdown.' Key Results: Quarter Ended Year Ended 4/26/2025 4/27/2024 Change 4/26/2025 4/27/2024 Change Sales $ 570,871 $ 553,535 3% $ 2,109,207 $ 2,047,027 3% GAAP operating income 29,527 50,097 (41)% 135,837 150,796 (10)% Adjusted operating income 53,611 52,114 3% 160,826 159,398 1% GAAP operating margin 5.2% 9.1% (390) bps 6.4% 7.4% (100) bps Adjusted operating margin 9.4% 9.4% 0 bps 7.6% 7.8% (20) bps GAAP net income attributable to La-Z-Boy Incorporated 14,931 39,308 (62)% 99,556 122,626 (19)% Adjusted net income attributable to La-Z-Boy Incorporated 38,392 40,811 (6)% 123,745 129,131 (4)% Diluted weighted average common shares 41,942 42,974 42,345 43,280 GAAP diluted earnings per share $ 0.36 $ 0.91 (60)% $ 2.35 $ 2.83 (17)% Adjusted diluted earnings per share $ 0.92 $ 0.95 (3)% $ 2.92 $ 2.98 (2)% Liquidity Measures: Year Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Free Cash Flow Cash Returns to Shareholders Operating cash flow $ 187,271 $ 158,127 Share repurchases $ 77,930 $ 52,773 Capital expenditures (74,280 ) (53,551 ) Dividends 34,955 32,665 Free cash flow $ 112,991 $ 104,576 Cash returns to shareholders $ 112,885 $ 85,438 4/26/2025 4/27/2024 Cash and cash equivalents $ 328,449 $ 341,098 Fiscal 2025 Fourth Quarter Results versus Fiscal 2024 Fourth Quarter: Consolidated sales in the fourth quarter of fiscal 2025 increased 3% to $571 million versus last year, primarily driven by acquisitions and new stores in the Retail segment, and continued momentum in our core North America La-Z-Boy wholesale business Consolidated GAAP operating margin was 5.2% versus 9.1% Consolidated adjusted(1) operating margin was flat at 9.4% versus the year ago period, as lower input costs (reduced commodity prices and improved sourcing) and leverage on marketing investments were offset by the impact of a significant customer transition in our international wholesale business as well as acceleration of tariff expenses in the quarter GAAP diluted EPS was $0.36 versus $0.91, and adjusted(1) diluted EPS totaled $0.92 versus $0.95 last year in the comparable period. GAAP and adjusted(1) diluted EPS for fiscal 2025 both include a $0.10 impact from unfavorable foreign tax discrete items Retail Segment: Sales: Written sales for the Retail segment (company-owned La-Z-Boy Furniture Galleries® stores) increased 3% compared to the year ago period driven primarily by new and acquired stores Written same-store sales decreased 5%, as continued weakness in industry traffic was partially offset by higher average ticket and design sales Delivered sales increased 8% to $247 million versus last year, primarily due to growth from acquired and new stores and positive delivered same-store sales growth Operating Margin: GAAP operating margin and GAAP operating income were 13.1% and $32 million, versus 14.1% and $32 million in the prior period, respectively Adjusted(1) operating margin and adjusted(1) operating income were 13.1% and $32 million, down 110 basis points, and flat, respectively, due to investment in new stores Wholesale Segment: Sales: Sales increased 2% to $402 million, driven by growth in our core North America La-Z-Boy wholesale business partially offset by the continued impact of a significant customer transition in our international wholesale business Operating Margin: GAAP operating margin decreased to 2.5% versus 8.1% Adjusted(1) operating margin was 8.5%, flat versus the year ago as gross margin and SG&A as a percent of sales were largely unchanged. Continued margin expansion in our core North America La-Z-Boy wholesale business was offset by the margin impact of a significant customer transition in the international wholesale business as well as incremental tariff expenses in the quarter Corporate & Other: Joybird written sales decreased 21% as recent economic and industry trends disproportionately impacted the Joybird online consumer Delivered sales decreased 2% to $36 million as positive growth within existing stores was offset by declines in the online business Joybird adjusted(1) operating margin was positive in the fourth quarter, relatively flat versus prior year Balance Sheet and Cash Flow, Fiscal 2025: Ended the quarter with $328 million in cash(3) and no external debt Generated $187 million in cash from operating activities (up 18% from the prior year) including $62 million in the fourth quarter (up 17% from the prior year comparable period), versus $158 million in Fiscal 2024 and $53 million in last year's fourth quarter Invested $74 million in capital expenditures, primarily related to La-Z-Boy Furniture Galleries® (new stores and remodels) Returned approximately $113 million to shareholders, including $78 million in share repurchases and $35 million in dividends, which was raised by 10% to $0.22 in third quarter, the fourth consecutive annual dividend increase Conference Call:La-Z-Boy will hold a conference call with the investment community on Wednesday, June 18, 2025, at 8:30 a.m. ET. The toll-free dial-in number is (888) 506-0062; international callers may use (973) 528-0011. Enter Participant Access Code: 546047. The call will be webcast live, with corresponding slides, and archived on the internet. It will be available at A telephone replay will be available for a week following the call. This replay will be accessible to callers from the U.S. and Canada at (877) 481-4010 and to international callers at (919) 882-2331. Enter Replay Passcode: 52510. The webcast replay will be available for one year. Investor Relations Contact:Mark Becks, CFA, (734) Media Contact:Cara Klaer, (734) About La-Z-Boy:La-Z-Boy Incorporated brings the transformational power of comfort to people, homes, and communities around the world - a mission that began when its founders invented the iconic recliner in 1927. Today, the company operates as a vertically integrated furniture retailer and manufacturer, committed to uncompromising quality and compassion for its consumers. The Retail segment consists of over 200 company-owned La-Z-Boy Furniture Galleries® stores and is part of a broader network of nearly 370 La-Z-Boy Furniture Galleries® that, with serve customers nationwide. Joybird®, an e-commerce retailer and manufacturer of modern upholstered furniture, has 12 stores in the U.S. In the Wholesale segment, La-Z-Boy manufactures comfortable, custom furniture for Furniture Galleries® and a variety of retail channels, England Furniture Co. offers custom upholstered furniture, and casegoods brands Kincaid®, American Drew®, and Hammary® provide pieces that make every room feel like home. To learn more, please visit: Notes:(1)Beginning in FY2025 Q4, the company renamed all of its Non-GAAP financial measures to adjusted financial measures; for example, Non-GAAP diluted EPS has been renamed to adjusted diluted EPS. The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged. Please refer to the accompanying 'Reconciliation of GAAP to Adjusted Financial Measures' and 'Reconciliation of GAAP to Adjusted Financial Measures: Segment Information' for detailed information.a $20.6 million pre-tax, or $0.49 per diluted share, charge related to the goodwill impairment in our United Kingdom ("UK") wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business. a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or less than $0.01 per diluted share, all included in operating incomea $1.7 million pre-tax, or less than $0.03 per diluted share, charge related to our Mexico supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $0.3 million pre-tax, or $0.01 per diluted share, all included in operating incomea $20.6 million pre-tax, or $0.48 per diluted share, charge related to the goodwill impairment in our UK wholesale and manufacturing businesses, which were acquired in fiscal years 2017 and 2022, respectively. Based on a quantitative goodwill assessment, a decline in the financial performance of the UK businesses, primarily resulting from a significant customer transition, resulted in the impairment of the full value of the UK goodwill. We continue to execute on this customer transition and remain focused on growth opportunities for this business. a $3.2 million pre-tax, or $0.07 per share, charge related to UK supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax, or $0.02 per diluted share, all included in operating incomea $7.5 million pre-tax, or $0.13 per diluted share, charge related to our Mexico supply chain optimization actions purchase accounting charges related to acquisitions completed in prior periods totaling $1.2 million pre-tax. or $0.02 per share, with $1.1 million included in operating income and $0.1 million included in interest expense (2)This reference to for a future period is an adjusted financial measure. We have not provided a reconciliation of adjusted operating margin for future periods in this press release because such reconciliation cannot be provided without unreasonable efforts. Please refer to the accompanying 'Reconciliation of GAAP to adjusted Financial Measures' and 'Reconciliation of GAAP to adjusted Financial Measures: Segment Information' for detailed information on calculating the adjusted financial measures used in this press release and a reconciliation to the most directly comparable GAAP measure. (3)includes cash and cash equivalents. Cautionary Note Regarding Forward-Looking Statements:This news release contains 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Generally, forward-looking statements include information concerning expectations, projections or trends relating to our results of operations, financial results, financial condition, strategic initiatives and plans, expenses, dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, future economic performance, and our business and industry. The forward-looking statements in this press release are based on certain assumptions and currently available information and are subject to various risks and uncertainties, many of which are unforeseeable and beyond our control. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties discussed in our Fiscal 2025 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the 'SEC'), available on the SEC's website at Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. Adjusted Financial Measures:In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States ('GAAP'), this press release also includes adjusted financial measures. Management uses these adjusted financial measures when assessing our ongoing performance. This press release contains references to adjusted operating income (on a consolidated basis and by segment), adjusted operating margin (on a consolidated basis and by segment), and adjusted net income attributable to La-Z-Boy Incorporated per diluted share, adjusted diluted earnings per share (and components thereof, including adjusted income before income taxes and adjusted net income attributable to La-Z-Boy Incorporated), each of which may exclude, as applicable, supply chain optimization charges, goodwill impairment charges, and purchase accounting charges. The supply chain optimization charges in fiscal 2025 include asset impairment costs and severance costs related to our United Kingdom wholesale businesses. The supply chain optimization charges in fiscal 2024 include asset impairment costs, accelerated depreciation expense, lease termination gains, severance costs, and employee relocation costs related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The purchase accounting charges include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, and fair value adjustments of future cash payments recorded as interest expense. These adjusted financial measures are not meant to be considered superior to or a substitute for La-Z-Boy Incorporated's results of operations prepared in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of such adjusted financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. Management believes that presenting certain adjusted financial measures will help investors understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. Management excludes purchase accounting charges because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions consummated and the success with which we operate the businesses acquired. While the company has a history of acquisition activity, it does not acquire businesses on a predictable cycle, and the impact of purchase accounting charges is unique to each acquisition and can vary significantly from acquisition to acquisition. Similarly, supply chain optimization charges are dependent on the timing, size, number and nature of the operations being closed, consolidated or centralized, and the charges may not be incurred on a predictable cycle. Management believes that exclusion of these items facilitates more consistent comparisons of the company's operating results over time. Where applicable, the accompanying 'Reconciliation of GAAP to Adjusted Financial Measures' tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented. LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF INCOME Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Sales $ 570,871 $ 553,535 $ 2,109,207 $ 2,047,027 Cost of sales 319,809 313,452 1,182,789 1,165,357 Gross profit 251,062 240,083 926,418 881,670 Selling, general and administrative expense 200,954 189,986 770,000 730,874 Goodwill impairment 20,581 — 20,581 — Operating income 29,527 50,097 135,837 150,796 Interest expense (134 ) (126 ) (545 ) (455 ) Interest income 3,258 4,260 14,877 15,482 Other income (expense), net (635 ) (92 ) (3,035 ) (71 ) Income before income taxes 32,016 54,139 147,134 165,752 Income tax expense 16,666 13,807 46,182 41,116 Net income 15,350 40,332 100,952 124,636 Net (income) loss attributable to noncontrolling interests (419 ) (1,024 ) (1,396 ) (2,010 ) Net income attributable to La-Z-Boy Incorporated $ 14,931 $ 39,308 $ 99,556 $ 122,626 Basic weighted average common shares 41,208 42,499 41,601 42,878 Basic net income attributable to La-Z-Boy Incorporated per share $ 0.36 $ 0.92 $ 2.39 $ 2.86 Diluted weighted average common shares 41,942 42,974 42,345 43,280 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.36 $ 0.91 $ 2.35 $ 2.83 LA-Z-BOY INCORPORATEDCONSOLIDATED BALANCE SHEET 4/26/2025 4/27/2024 Current assets Cash and equivalents $ 328,449 $ 341,098 Receivables, net of allowance of $5,042 at 4/26/2025 and $5,076 at 4/27/2024 139,533 139,213 Inventories, net 255,285 263,237 Other current assets 82,421 93,260 Total current assets 805,688 836,808 Property, plant and equipment, net 339,212 298,224 Goodwill 205,590 214,453 Other intangible assets, net 51,161 47,251 Deferred income taxes – long-term 7,349 10,283 Right of use lease asset 452,848 446,466 Other long-term assets, net 60,314 59,957 Total assets $ 1,922,162 $ 1,913,442 Current liabilities Accounts payable $ 95,984 $ 96,486 Lease liabilities, short-term 80,592 77,027 Accrued expenses and other current liabilities 244,215 263,768 Total current liabilities 420,791 437,281 Lease liability, long-term 410,265 404,724 Other long-term liabilities 59,130 58,077 Shareholders' Equity Preferred shares – 5,000 authorized; none issued — — Common shares, $1.00 par value – 150,000 authorized; 41,164 outstanding at 4/26/2025 and 42,440 outstanding at 4/27/2024 41,164 42,440 Capital in excess of par value 385,601 368,485 Retained earnings 597,432 598,009 Accumulated other comprehensive loss (3,574 ) (5,870 ) Total La-Z-Boy Incorporated shareholders' equity 1,020,623 1,003,064 Noncontrolling interests 11,353 10,296 Total equity 1,031,976 1,013,360 Total liabilities and equity $ 1,922,162 $ 1,913,442 LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF CASH FLOWS Year Ended 4/26/2025 4/27/2024 Cash flows from operating activities Net income $ 100,952 $ 124,636 Adjustments to reconcile net income to cash provided by operating activities (Gain)/loss on disposal and impairment of assets 1,998 1,101 (Gain)/loss on sale of investments (235 ) (1,199 ) Provision for doubtful accounts 851 511 Depreciation and amortization 46,667 48,552 Amortization of right-of-use lease assets 76,964 76,133 Lease impairment/(settlement) — (1,175 ) Equity-based compensation expense 17,400 14,426 Goodwill impairment 20,581 — Change in deferred taxes 5,116 (3,268 ) Change in receivables (1,906 ) (16,811 ) Change in inventories 12,792 19,877 Change in other assets 8,701 10,303 Change in payables (2,066 ) (8,606 ) Change in lease liabilities (78,609 ) (76,766 ) Change in other liabilities (21,935 ) (29,587 ) Net cash provided by operating activities 187,271 158,127 Cash flows from investing activities Proceeds from disposals of assets 412 4,972 Capital expenditures (74,280 ) (53,551 ) Purchases of investments (6,990 ) (18,351 ) Proceeds from sales of investments 11,994 24,816 Acquisitions (29,525 ) (39,440 ) Net cash used for investing activities (98,389 ) (81,554 ) Cash flows from financing activities Payments on finance lease liabilities (663 ) (489 ) Holdback payments for acquisitions — (5,000 ) Stock issued for stock and employee benefit plans, net of shares withheld for taxes 12,350 10,872 Repurchases of common stock (77,930 ) (52,773 ) Dividends paid to shareholders (34,955 ) (32,665 ) Dividends paid to minority interest joint venture partners (1) (1,414 ) (1,172 ) Net cash used for financing activities (102,612 ) (81,227 ) Effect of exchange rate changes on cash and equivalents 1,081 (926 ) Change in cash, cash equivalents and restricted cash (12,649 ) (5,580 ) Cash, cash equivalents and restricted cash at beginning of period 341,098 346,678 Cash, cash equivalents and restricted cash at end of period $ 328,449 $ 341,098 Supplemental disclosure of non-cash investing activities Capital expenditures included in payables $ 7,234 $ 5,952 (1 ) Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested. LA-Z-BOY INCORPORATEDSEGMENT INFORMATION Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 Sales Wholesale segment: Sales to external customers $ 286,883 $ 287,900 $ 1,056,914 $ 1,048,431 Intersegment sales 115,141 104,561 422,905 398,847 Wholesale segment sales 402,024 392,461 1,479,819 1,447,278 Retail segment sales 246,769 227,878 898,370 855,126 Corporate and Other: Sales to external customers 37,219 37,757 153,923 143,470 Intersegment sales 1,799 1,587 6,552 10,299 Corporate and Other sales 39,018 39,344 160,475 153,769 Eliminations (116,940 ) (106,148 ) (429,457 ) (409,146 ) Consolidated sales $ 570,871 $ 553,535 $ 2,109,207 $ 2,047,027 Operating Income (Loss) Wholesale segment $ 10,120 $ 31,709 $ 82,213 $ 99,373 Retail segment 32,414 32,170 105,417 111,682 Corporate and Other (13,007 ) (13,782 ) (51,793 ) (60,259 ) Consolidated operating income $ 29,527 $ 50,097 $ 135,837 $ 150,796 LA-Z-BOY INCORPORATEDUNAUDITED QUARTERLY FINANCIALDATA Fiscal2025 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks) 7/27/2024 10/26/2024 1/25/2025 4/26/2025 Sales $ 495,532 $ 521,027 $ 521,777 $ 570,871 Cost of sales 282,189 290,379 290,412 319,809 Gross profit 213,343 230,648 231,365 251,062 Selling, general and administrative expense 180,973 191,876 196,197 200,954 Goodwill impairment — — — 20,581 Operating income 32,370 38,772 35,168 29,527 Interest expense (210 ) (99 ) (102 ) (134 ) Interest income 4,424 3,730 3,465 3,258 Other income (expense), net (618 ) (1,879 ) 97 (635 ) Income before income taxes 35,966 40,524 38,628 32,016 Income tax expense 9,162 10,671 9,683 16,666 Net income 26,804 29,853 28,945 15,350 Net (income) loss attributable to noncontrolling interests (645 ) 184 (516 ) (419 ) Net income attributable to La-Z-Boy Incorporated $ 26,159 $ 30,037 $ 28,429 $ 14,931 Diluted weighted average common shares 42,564 42,154 42,103 41,942 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.61 $ 0.71 $ 0.68 $ 0.36 Fiscal2024 Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks) 7/29/2023 10/28/2023 1/27/2024 4/27/2024 Sales $ 481,651 $ 511,435 $ 500,406 $ 553,535 Cost of sales 275,923 288,830 287,152 313,452 Gross profit 205,728 222,605 213,254 240,083 Selling, general and administrative expense 171,202 188,993 180,693 189,986 Operating income 34,526 33,612 32,561 50,097 Interest expense (122 ) (101 ) (106 ) (126 ) Interest income 3,056 4,042 4,124 4,260 Other income (expense), net 556 104 (639 ) (92 ) Income before income taxes 38,016 37,657 35,940 54,139 Income tax expense 10,090 9,963 7,256 13,807 Net income 27,926 27,694 28,684 40,332 Net income attributable to noncontrolling interests (447 ) (495 ) (44 ) (1,024 ) Net income attributable to La-Z-Boy Incorporated $ 27,479 $ 27,199 $ 28,640 $ 39,308 Diluted weighted average common shares 43,333 43,401 43,195 42,974 Diluted net income attributable to La-Z-Boy Incorporated per share $ 0.63 $ 0.63 $ 0.66 $ 0.91 LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURES Quarter Ended Year Ended 4/26/2025 4/27/2024 4/26/2025 4/27/2024 GAAP gross profit $ 251,062 $ 240,083 $ 926,418 $ 881,670 Purchase accounting charges (1) — 89 140 89 Supply chain optimization charges (2) 1,123 502 1,123 4,468 Adjusted gross profit $ 252,185 $ 240,674 $ 927,681 $ 886,227 GAAP SG&A $ 200,954 $ 189,986 $ 770,000 $ 730,874 Purchase accounting charges (3) (256 ) (254 ) (1,021 ) (1,016 ) Supply chain optimization charges (4) (2,124 ) (1,172 ) (2,124 ) (3,029 ) Adjusted SG&A $ 198,574 $ 188,560 $ 766,855 $ 726,829 GAAP operating income $ 29,527 $ 50,097 $ 135,837 $ 150,796 Purchase accounting charges 256 343 1,161 1,105 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted operating income $ 53,611 $ 52,114 $ 160,826 $ 159,398 GAAP income before income taxes $ 32,016 $ 54,139 $ 147,134 $ 165,752 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Supply chain optimization charges 3,247 1,674 3,247 7,497 Goodwill impairment 20,581 — 20,581 — Adjusted income before income taxes $ 56,100 $ 56,156 $ 172,123 $ 174,402 GAAP net income attributable to La-Z-Boy Incorporated $ 14,931 $ 39,308 $ 99,556 $ 122,626 Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense 256 343 1,161 1,153 Tax effect of purchase accounting (79 ) (87 ) (317 ) (286 ) Supply chain optimization charges 3,247 1,674 3,247 7,497 Tax effect of supply chain optimization (545 ) (427 ) (483 ) (1,859 ) Goodwill impairment 20,581 — 20,581 — Adjusted net income attributable to La-Z-Boy Incorporated $ 38,392 $ 40,811 $ 123,745 $ 129,131 GAAP net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $ 0.36 $ 0.91 $ 2.35 $ 2.83 Purchase accounting charges, net of tax, per share — 0.01 0.02 0.02 Supply chain optimization charges, net of tax, per share 0.07 0.03 0.07 0.13 Goodwill impairment, net of tax, per share 0.49 — 0.48 — Adjusted net income attributable to La-Z-Boy Incorporated per diluted share ("Diluted EPS") $ 0.92 $ 0.95 $ 2.92 $ 2.98 (1 ) Includes incremental expense upon the sale of inventory acquired at fair value. (2 ) Fiscal 2025 includes severance charges relating to manufacturing optimization actions in the United Kingdom. Fiscal 2024 includes severance charges related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. (3 ) Includes amortization of intangible assets. (4 ) Fiscal 2025 includes the impairment of fixed assets and our customer relationship intangible asset in the United Kingdom. The first nine months of fiscal 2024 includes $3.0 million of accelerated depreciation of fixed assets related to shifting upholstery production from our Ramos, Mexico operations to other upholstery plants and relocating our cut and sew operations back to Ramos, Mexico, resulting in the permanent closure of our leased cut and sew facility in Parras, Mexico. The first nine months of fiscal 2024 also includes a $1.2 million gain related to the settlement of the Torreón, Mexico lease obligation on previously impaired assets. LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO ADJUSTED FINANCIAL MEASURESSEGMENT INFORMATION Quarter Ended Year Ended 4/26/2025 % of sales 4/27/2024 % of sales 4/26/2025 % of sales 4/27/2024 % of sales GAAP operating income (loss) Wholesale segment $ 10,120 2.5% $ 31,709 8.1% $ 82,213 5.6% $ 99,373 6.9% Retail segment 32,414 13.1% 32,170 14.1% 105,417 11.7% 111,682 13.1% Corporate and Other (13,007 ) N/M (13,782 ) N/M (51,793 ) N/M (60,259 ) N/M Consolidated GAAP operating income $ 29,527 5.2% $ 50,097 9.1% $ 135,837 6.4% $ 150,796 7.4% Adjusted items affecting operating income Wholesale segment $ 23,885 $ 1,729 $ 24,052 $ 7,715 Retail segment — 89 140 89 Corporate and Other 199 199 797 798 Consolidated adjusted items affecting operating income $ 24,084 $ 2,017 $ 24,989 $ 8,602 Adjusted operating income (loss) Wholesale segment $ 34,005 8.5% $ 33,438 8.5% $ 106,265 7.2% $ 107,088 7.4% Retail segment 32,414 13.1% 32,259 14.2% 105,557 11.7% 111,771 13.1% Corporate and Other (12,808 ) N/M (13,583 ) N/M (50,996 ) N/M (59,461 ) N/M Consolidated adjusted operating income $ 53,611 9.4% $ 52,114 9.4% $ 160,826 7.6% $ 159,398 7.8% N/M - Not Meaningful Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. 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