Latest news with #Fiscal2025
Yahoo
09-07-2025
- Business
- Yahoo
Methode Electronics, Inc. Reports Fiscal 2025 Fourth Quarter and Full Year Financial Results; Board Approves Dividend
Record Power Product Sales for Data Centers for Quarter and Full Year Positive Free Cash Flow for Quarter; Highest Quarter Since Fiscal 2023 Total and Net Debt Reduced from Fiscal 2025 Third Quarter Fiscal 2026 EBITDA Expected to Improve Over 100% Corporate Actions Announced Board of Directors Declares Quarterly Dividend of $0.07 CHICAGO, July 09, 2025 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, today announced financial results for the fourth quarter and full year ended May 3, 2025. Fiscal Fourth Quarter 2025 Results Net sales were $257.1 million Record sales for power distribution products for data center applications Electric and hybrid vehicle applications were 20% of net sales Pre-tax loss was $30.4 million; adjusted pre-tax loss was $28.6 million Pre-tax loss included $15.2 million of unplanned inventory adjustments Net loss was $28.3 million, or a loss of $0.80 per diluted share Adjusted net loss was $27.4 million, or a loss of $0.77 per diluted share Net cash provided by operating activities was $35.4 million; free cash flow was $26.3 million Total debt of $317.6 million, down from $327.9 million in fiscal third quarter 2025 Net debt of $214.0 million, down from $224.1 million in fiscal third quarter 2025 Management CommentsPresident and Chief Executive Officer Jon DeGaynor said, 'The Methode transformation journey made further progress in the quarter, as we focused on improving execution to drive long-term value. We have built a new management team and set records for the quarter and the year in data center power product sales, with the year finishing at over $80 million. The year also provided a series of challenges both exogenous and endogenous. We experienced a significant ramp down in expected demand from one of our largest EV customers and delays with other EV customers. In fact, we finished the year with a challenging exercise to write down inventory primarily related to materials for reduced, delayed or canceled programs. While the team made clear strides in improving operational execution, the results were masked by factors that were either outside our immediate control or residual in nature which led to a larger than expected net loss for the quarter.' Mr. DeGaynor added, 'Despite the challenges, the business delivered strong free cash flow for the second quarter in a row resulting from a relentless drive to reduce working capital, and we in turn reduced our debt. We also had de minimis new tariffs in the quarter, have a plan in place to 100% mitigate the tariffs enacted this year, and have used the disruption to cement our teams' collaboration and to leverage our global footprint to our commercial advantage. Simply put, this team faced challenges and took significant operational actions in fiscal 2025 to rebuild the foundation of the company and position it for success in fiscal 2026. This also included corporate actions such as reducing our board size from ten to seven directors, relocating our headquarters to an existing owned facility, reducing our dividend, and continuing the review of our portfolio.' Mr. DeGaynor concluded, 'As we look to fiscal 2026, the company expects to double its EBITDA as a result of our operational improvements even in the face of an approximately $100 million decline in sales driven by lower EV demand, mainly with Stellantis. We still firmly believe in the EV megatrend. However, in the near term some of our EV assets and resources will be pivoted to leverage the growth opportunity that we have in data centers.' Consolidated Fiscal Fourth Quarter 2025 Financial ResultsMethode's net sales were $257.1 million, compared to $277.3 million in the same quarter of fiscal 2024. The decrease was mainly due to lower volume in the Automotive segment driven by previously disclosed program roll-offs, which was partially offset by higher volume in the Industrial segment driven by power products in data center applications. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Loss from operations was $23.6 million, compared to a loss of $61.5 million in the same quarter of fiscal 2024. The improvement was primarily due to a $49.4 million goodwill impairment in the prior-year quarter. The quarter included an increase in excess and obsolete inventory expense of $13.0 million, mainly in the Automotive segment, and a discrete inventory revaluation of $2.2 million, as compared to an increase in excess and obsolete inventory expense of $5.1 million and no similar discrete inventory revaluation in the prior year quarter. The loss in the quarter was also impacted by the lower sales volume, partially offset by a reduction of $4.2 million in selling and administrative expense from the prior year quarter. Adjusted loss from operations, a non-GAAP financial measure, was $21.6 million, compared to a loss of $9.8 million in the same quarter of fiscal 2024. The adjusted loss from operations excluded expenses of $2.0 million for restructuring costs and asset impairment charges. Net loss was $28.3 million or $0.80 per diluted share, compared to a loss of $57.3 million or $1.63 per diluted share in the same quarter of fiscal 2024. The lower net loss was mainly driven by the $49.4 million goodwill impairment in the prior year quarter. Adjusted net loss, a non-GAAP financial measure, was $27.4 million, or $0.77 per diluted share, compared to a loss of $7.9 million or $0.23 per diluted share in the same quarter of fiscal 2024. The adjusted net loss excluded $1.6 million for restructuring costs and asset impairment charges, a $0.5 million benefit for the valuation allowance on deferred tax assets, and a $0.2 million gain on the sale of non-core assets. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was negative $8.9 million, compared to negative $44.0 million in the same quarter of fiscal 2024. Adjusted EBITDA, a non-GAAP financial measure, was negative $7.1 million, compared to positive $5.3 million in the same quarter of fiscal 2024. The adjusted EBITDA excluded $2.0 million for restructuring costs and asset impairment charges and a $0.2 million gain on the sale of non-core assets. Debt was $317.6 million at the end of the quarter, down from $327.9 million at the end of the fiscal 2025 third quarter. Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $214.0 million, down from $224.1 million at the end of the fiscal 2025 third quarter. After the end of the quarter, the company entered into an amendment to its credit agreement. Following the amendment, the company was in compliance with all debt covenants for the fiscal fourth quarter. Net cash provided by operating activities was $35.4 million for the quarter, compared to $24.9 million in the same quarter of fiscal 2024. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was $26.3 million, the highest quarter since fiscal 2023, compared to $15.8 million in the same quarter of fiscal 2024. The increase in free cash flow was primarily due to improvements in working capital. Segment Fiscal Fourth Quarter 2025 Financial ResultsComparing the Automotive segment's quarter to the same quarter of fiscal 2024, Net sales were $112.9 million, down from $145.9 million. Net sales decreased by $33.0 million or 22.6% mainly due to lower volume in North America primarily related to a previously disclosed center console program roll-off and lower volume of exterior lighting products. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Loss from operations was $33.7 million, compared to a loss of $64.9 million in the prior year. The improvement was mainly driven by the $49.4 million goodwill impairment in the prior year quarter. The loss was primarily driven by the inventory adjustments and lower sales volume, which were partially offset a reduction in selling and administrative expense. Comparing the Industrial segment's quarter to the same quarter of fiscal 2024, Net sales were $132.6 million, up from $117.2 million. Net sales increased by $15.4 million or 13.1% driven primarily by higher demand for power distribution products for data centers, which was partially offset by lower demand for lighting products in the commercial vehicle market. Foreign currency translation was minimal as compared to the same quarter of fiscal 2024. Income from operations was $26.2 million, up from $20.0 million. Income from operations was 19.8% of net sales, up from 17.1%. The improvement was driven by higher gross profit primarily from the increased sales as well as lower selling and administrative expense. Comparing the Interface segment's quarter to the same quarter of fiscal 2024, Net sales were $11.6 million, down from $14.2 million. Income from operations was $1.5 million, unchanged from the prior year. Income from operations was 12.9% of net sales, up from 10.6%. Consolidated Fiscal 2025 Financial ResultsMethode's net sales in fiscal 2025 were $1,048.1 million, compared to $1,114.5 million in fiscal 2024. The decrease was mainly due to lower volume in the Automotive segment driven by previously disclosed program roll-offs, which was partially offset by record volume in the Industrial segment driven by power products in data center applications. Foreign currency translation was minimal as compared to fiscal 2024. Fiscal 2025 was a 53-week fiscal year, while fiscal 2024 was a 52-week fiscal year. Loss from operations was $23.9 million, compared to a loss of $112.0 million in fiscal 2024. The improvement was primarily due to a $105.9 million goodwill impairment in the prior year. The gross profit in the year included an increase in excess and obsolete inventory expense of $20.4 million and a discrete inventory revaluation of $2.2 million, as compared to an increase in excess and obsolete inventory expense of $10.4 million and no similar discrete inventory revaluation in the prior year. The loss in the year was also impacted by the lower sales volume. Adjusted loss from operations, a non-GAAP financial measure, was $12.5 million, as compared to a loss of $1.4 million in fiscal 2024. Net loss was $62.6 million or $1.77 per diluted share, compared to a loss of $123.3 million or $3.48 per diluted share in fiscal 2024. Adjusted net loss, a non-GAAP financial measure, was $39.7 million, or $1.12 per diluted share, compared to a loss of $15.0 million or $0.43 per diluted share in fiscal 2024. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $30.4 million, compared to negative $53.5 million in fiscal 2024. Adjusted EBITDA, a non-GAAP financial measure, was $42.5 million, compared to $55.3 million in fiscal 2024. Board Approves DividendThe Methode Electronics, Inc. board of directors has declared a quarterly dividend of $0.07 per share to be paid on August 1, 2025, to common stockholders of record at the close of business on July 21, 2025. GuidanceFor fiscal 2026, the company expects net sales to be in a range of $900 to $1,000 million and EBITDA to be in a range of $70 to $80 million with the second half of fiscal year expected to be higher than the first half. Fiscal 2025 was a 53-week fiscal year, while fiscal 2026 is a 52-week fiscal year. This guidance is based on the current market outlook based on third party forecasts and customer projections and the current U.S. tariff policy. The guidance is subject to change due to a variety of factors including tariffs, the successful launch of multiple new programs, the ultimate take rates on EV programs, success and timing of cost recovery actions, inflation, global economic instability, supply chain disruptions, transformation and restructuring efforts, potential impairments, any acquisitions or divestitures, and legal matters. Conference CallThe company will conduct a conference call and webcast tomorrow, July 10, 2025, at 10:00 a.m. CST to review financial and operational highlights led by its President and Chief Executive Officer, Jon DeGaynor, and Chief Financial Officer, Laura Kowalchik. To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed through the company's website, on the Investors page. A replay of the teleconference will be available shortly after the call through July 24, 2025, by dialing 877-481-4010 and providing passcode 52484. A webcast replay will also be available on the company's website, on the Investors page. About Methode Electronics, Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliances. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface. Non-GAAP Financial MeasuresTo supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States ('GAAP'), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Diluted Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance, (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company's performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as 'may,' 'might,' 'will,' 'should,' 'expects,' 'plans,' 'intends,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'projects,' 'potential,' 'outlook' or 'continue,' and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: Dependence on the automotive, commercial vehicle, and construction industries; Timing, quality and cost of new program launches; Changes in electric vehicle ('EV') demand; Investment in programs prior to the recognition of revenue; Impact from production delays or cancelled orders; Changes in global trade policies, including tariffs; Failure to attract and retain qualified personnel; Impact from inflation; Dependence on the availability and price of materials; Dependence on a small number of large customers; Dependence on our supply chain; Risks related to conducting global operations; Effects of potential catastrophic events or other business interruptions; Ability to withstand pricing pressures, including price reductions; Ability to compete effectively; Our lengthy sales cycle; Risks relating to our use of requirements contracts; Potential work stoppages; Ability to successfully benefit from acquisitions and divestitures; Ability to manage our debt levels; Ability to comply with restrictions and covenants under our credit agreement; Interest rate changes and variable rate instruments; Timing and magnitude of costs associated with restructuring activities; Recognition of goodwill and other intangible asset impairment charges; Risks associated with inventory; Ability to remediate a material weakness in our internal control over financial reporting; Currency fluctuations; Income tax rate fluctuations; Judgments related to accounting for tax positions; Risks associated with litigation and government inquiries; Risks associated with warranty claims; Impact of changing government regulations; Changing requirements by stakeholders on environmental or social matters; Effects of IT disruptions or cybersecurity incidents; Ability to innovate and keep pace with technological changes; and Ability to protect our intellectual property. Additional details and factors are discussed under the caption 'Risk Factors' in our periodic reports filed with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise. For Methode Electronics, K. CherryVice President, Investor Relationsrcherry@ METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)(in millions, except per-share data) Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) Net sales $ 257.1 $ 277.3 $ 1,048.1 $ 1,114.5 Cost of products sold 237.5 241.8 884.7 935.7 Gross profit 19.6 35.5 163.4 178.8 Selling and administrative expenses 37.4 41.6 163.9 160.9 Goodwill impairment — 49.4 — 105.9 Amortization of intangibles 5.8 6.0 23.4 24.0 Loss from operations (23.6 ) (61.5 ) (23.9 ) (112.0 ) Interest expense, net 5.5 4.5 22.0 16.7 Other expense (income), net 1.3 (2.9 ) 4.2 (0.6 ) Pre-tax loss (30.4 ) (63.1 ) (50.1 ) (128.1 ) Income tax expense (benefit) (2.1 ) (5.8 ) 12.5 (4.8 ) Net loss $ (28.3 ) $ (57.3 ) $ (62.6 ) $ (123.3 ) Loss per share: Basic $ (0.80 ) $ (1.63 ) $ (1.77 ) $ (3.48 ) Diluted $ (0.80 ) $ (1.63 ) $ (1.77 ) $ (3.48 ) Cash dividends per share $ 0.14 $ 0.14 $ 0.56 $ 0.56 METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (in millions, except share and per-share data) May 3, 2025 April 27, 2024 ASSETS Current assets: Cash and cash equivalents $ 103.6 $ 161.5 Accounts receivable, net 241.0 262.6 Inventories 194.1 186.2 Income tax receivable 4.1 4.0 Prepaid expenses and other current assets 17.1 18.7 Assets held for sale — 4.7 Total current assets 559.9 637.7 Long-term assets: Property, plant and equipment, net 221.6 212.1 Goodwill 172.7 169.9 Other intangible assets, net 238.4 256.7 Operating lease right-of-use assets, net 23.7 26.7 Deferred tax assets 37.8 34.7 Pre-production costs 31.7 44.1 Other long-term assets 20.0 21.6 Total long-term assets 745.9 765.8 Total assets $ 1,305.8 $ 1,403.5 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 125.9 $ 132.4 Accrued employee liabilities 32.0 38.0 Other accrued liabilities 50.2 46.0 Short-term operating lease liabilities 7.4 6.7 Short-term debt 0.2 0.2 Income tax payable 17.5 8.1 Total current liabilities 233.2 231.4 Long-term liabilities: Long-term debt 317.4 330.7 Long-term operating lease liabilities 18.2 20.6 Long-term income tax payable — 9.3 Other long-term liabilities 16.9 16.8 Deferred tax liabilities 26.8 28.7 Total long-term liabilities 379.3 406.1 Total liabilities 612.5 637.5 Shareholders' equity: Common stock, $0.50 par value, 100,000,000 shares authorized, 37,151,365 shares and 36,650,909 shares issued as of May 3, 2025 and April 27, 2024, respectively 18.6 18.3 Additional paid-in capital 191.8 183.6 Accumulated other comprehensive loss (29.8 ) (36.7 ) Treasury stock, 1,346,624 shares as of May 3, 2025 and April 27, 2024 (11.5 ) (11.5 ) Retained earnings 524.2 612.3 Total shareholders' equity 693.3 766.0 Total liabilities and shareholders' equity $ 1,305.8 $ 1,403.5 METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions) Fiscal Year Ended May 3, 2025 April 27, 2024 (53 Weeks) (52 Weeks) Operating activities: Net loss $ (62.6 ) $ (123.3 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 58.5 57.9 Stock-based compensation expense 7.4 3.6 Amortization of debt issuance costs 1.1 0.8 Partial write-off of unamortized debt issuance costs 1.2 — (Gain) loss on sale of assets (0.5 ) (1.9 ) Impairment of long-lived assets 1.1 2.3 Inventory obsolescence 20.4 10.4 Goodwill impairment — 105.9 Change in deferred income taxes (5.8 ) (20.8 ) Other 1.9 (0.8 ) Changes in operating assets and liabilities: Accounts receivable 22.7 48.0 Inventories (25.7 ) (41.1 ) Prepaid expenses and other assets 17.3 6.9 Accounts payable (5.4 ) (4.7 ) Other liabilities (5.2 ) 4.3 Net cash provided by operating activities 26.4 47.5 Investing activities: Purchases of property, plant and equipment (41.6 ) (50.2 ) Proceeds from settlement of net investment hedge 3.1 0.6 Proceeds from disposition of assets 5.6 21.3 Proceeds from redemption of life insurance — 10.8 Net cash used in investing activities (32.9 ) (17.5 ) Financing activities: Taxes paid related to net share settlement of equity awards (4.3 ) (3.8 ) Repayments of finance leases (0.2 ) (0.2 ) Debt issuance costs (1.8 ) (1.1 ) Purchases of common stock (1.6 ) (13.7 ) Cash dividends (20.4 ) (19.9 ) Purchase of redeemable noncontrolling interest — (10.9 ) Proceeds from borrowings 138.0 237.9 Repayments of borrowings (168.6 ) (207.2 ) Net cash used in financing activities (58.9 ) (18.9 ) Effect of foreign currency exchange rate changes on cash and cash equivalents 7.5 (6.6 ) (Decrease) increase in cash and cash equivalents (57.9 ) 4.5 Cash and cash equivalents at beginning of the period 161.5 157.0 Cash and cash equivalents at end of the period $ 103.6 $ 161.5 Supplemental cash flow information: Cash paid during the period for: Interest $ 23.4 $ 17.0 Income taxes, net of refunds $ 22.3 $ 15.0 Operating lease obligations $ 9.3 $ 9.6 METHODE ELECTRONICS, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES (unaudited)(in millions) Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) EBITDA: Net loss $ (28.3 ) $ (57.3 ) $ (62.6 ) $ (123.3 ) Income tax expense (benefit) (2.1 ) (5.8 ) 12.5 (4.8 ) Interest expense, net 5.5 4.5 22.0 16.7 Amortization of intangibles 5.8 6.0 23.4 24.0 Depreciation 10.2 8.6 35.1 33.9 EBITDA (8.9 ) (44.0 ) 30.4 (53.5 ) Goodwill impairment — 49.4 — 105.9 Acquisition costs — — — 0.5 Acquisition-related costs - purchase accounting adjustments related to inventory — — — 0.5 Transformation costs * — — 8.7 — Partial write-off of unamortized debt issuance costs — — 1.2 — Restructuring costs and asset impairment charges 2.0 2.3 2.7 3.7 Net gain on sale of non-core assets (0.2 ) (2.4 ) (0.5 ) (1.8 ) Adjusted EBITDA $ (7.1 ) $ 5.3 $ 42.5 $ 55.3 * Represents professional fees related to the Company's cost reduction initiative. Three Months Ended Fiscal Year Ended May 3, 2025 April 27, 2024 May 3, 2025 April 27, 2024 (13 Weeks) (13 Weeks) (53 Weeks) (52 Weeks) Free Cash Flow: Net cash provided by operating activities $ 35.4 $ 24.9 $ 26.4 $ 47.5 Purchases of property, plant and equipment (9.1 ) (9.1 ) (41.6 ) (50.2 ) Free cash flow $ 26.3 $ 15.8 $ (15.2 ) $ (2.7 ) May 3, 2025 February 1, 2025 April 27, 2024 Net Debt: Short-term debt $ 0.2 $ 0.2 $ 0.2 Long-term debt 317.4 327.7 330.7 Total debt 317.6 327.9 330.9 Less: cash and cash equivalents (103.6 ) (103.8 ) (161.5 ) Net debt $ 214.0 $ 224.1 $ 169.4 METHODE ELECTRONICS, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES (unaudited)(in millions, except per share data) Three Months Ended May 3, 2025 (13 Weeks) April 27, 2024 (13 Weeks) Loss from operations Pre-tax loss Net loss Diluted (loss) income per share Loss from operations Pre-tax loss Net loss Diluted (loss) income per share U.S. GAAP (as reported) $ (23.6 ) $ (30.4 ) $ (28.3 ) $ (0.80 ) $ (61.5 ) $ (63.1 ) $ (57.3 ) $ (1.63 ) Goodwill impairment — — — $ — 49.4 49.4 49.4 $ 1.40 Acquisition-related costs - purchase accounting adjustments related to inventory — — — $ — — — — $ — Transformation costs — — — $ — — — — $ — Restructuring costs and asset impairment charges 2.0 2.0 1.6 $ 0.05 2.3 2.3 1.9 $ 0.05 Net gain on sale of non-core assets — (0.2 ) (0.2 ) $ (0.01 ) — (2.4 ) (1.9 ) $ (0.05 ) Valuation allowance on deferred tax assets — — (0.5 ) $ (0.01 ) — — — $ — Non-U.S. GAAP (adjusted) $ (21.6 ) $ (28.6 ) $ (27.4 ) $ (0.77 ) $ (9.8 ) $ (13.8 ) $ (7.9 ) $ (0.23 ) Fiscal Year Ended May 3, 2025 (53 Weeks) April 27, 2024 (52 Weeks) Loss from operations Pre-tax loss Net loss Diluted (loss) income per share Loss from operations Pre-tax loss Net loss Diluted (loss) income per share U.S. GAAP (as reported) $ (23.9 ) $ (50.1 ) $ (62.6 ) $ (1.77 ) $ (112.0 ) $ (128.1 ) $ (123.3 ) $ (3.48 ) Goodwill impairment — — — $ — 105.9 105.9 105.9 $ 2.99 Acquisition costs — — — $ — 0.5 0.5 0.4 $ 0.01 Acquisition-related costs - purchase accounting adjustments related to inventory — — — $ — 0.5 0.5 0.4 $ 0.01 Transformation costs 8.7 8.7 6.7 $ 0.19 — — — $ — Partial write-off of unamortized debt issuance costs — 1.2 0.9 $ 0.03 — — — $ — Restructuring costs and asset impairment charges 2.7 2.7 2.2 $ 0.06 3.7 3.7 3.0 $ 0.08 Net gain on sale of non-core assets — (0.5 ) (0.4 ) $ (0.01 ) — (1.8 ) (1.4 ) $ (0.04 ) Valuation allowance on deferred tax assets — — 13.5 $ 0.38 — — — $ — Non-U.S. GAAP (adjusted) $ (12.5 ) $ (38.0 ) $ (39.7 ) $ (1.12 ) $ (1.4 ) $ (19.3 ) $ (15.0 ) $ (0.43 ) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
08-07-2025
- Business
- Globe and Mail
Micron Q3 Gross Margin Hits 39% on Strong Pricing: More Upside Ahead?
Micron Technology MU posted a strong rebound in profitability in the third quarter of fiscal 2025. The company reported a gross margin of 39%. This represents an increase of 110 basis points from the previous quarter and 250 basis points above the midpoint of its prior guidance. This improvement was mainly driven by better pricing for DRAM and NAND, as well as continued cost discipline and volume growth. In its latest earnings call, Micron noted that better-than-expected pricing was the key factor behind the margin upside. Strong sequential growth in bit shipments, a favorable product mix, constrained supply of memory chips, such as D4 and LP4, and low inventory levels in the distribution channels also contributed to the gross margin expansion. Looking ahead, Micron guided for further margin expansion in the fourth quarter. The company expects gross margins of 42% (+/-100 basis points), indicating an improvement of 300 basis points on a quarter-over-quarter basis. Constructive demand environment, along with strong demand for DRAM, higher-value DRAM and higher-value NAND products, may help in the margin expansion. Moreover, management added that tighter inventory, particularly on leading-edge and DRAM, may help sustain pricing strength into the fourth quarter, further helping Micron to keep the gross margins up. For the calendar year 2025, Micron expects industry DRAM bit demand to grow in the high-teens percentage range, while the NAND bit demand is expected to grow in the low double-digit percentage range. While Micron's margins have rebounded sharply from last year's lows, the coming quarters will test whether tight supply and strong demand can continue supporting this uptrend. How Competitors Fare Against Micron There are no U.S. stock exchange-listed direct competitors for MU in the memory chip space; it competes with Western Digital Corporation WDC and Seagate Technology Holdings plc STX in the data storage market. Micron competes with Western Digital in the NAND market. Western Digital is a diversified storage company with a broader portfolio that includes both traditional hard disk drives (HDDs) and NAND-based solid-state drives (SSDs). Seagate is a major force in the HDD market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. Seagate is also developing its presence in the SSD market through portfolio expansion and partnerships. Micron's Price Performance, Valuation and Estimates Shares of MU have gained 42% year to date compared with the Zacks Computer - Integrated Systems industry's growth of 26.6%. MU YTD Price Performance From a valuation standpoint, Micron trades at a forward price-to-sales ratio of 2.91X, lower than the industry's average of 3.83X. MU Forward 12-Month P/S Ratio The Zacks Consensus Estimate for Micron's fiscal 2025 earnings implies year-over-year growth of 497.69%, while the 2026 earnings estimate implies growth of 57.36%. The earnings estimates for both fiscal 2025 and fiscal 2026 have been revised upward in the past 30 days, respectively. MU currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Digital Corporation (WDC): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report
Yahoo
04-07-2025
- Business
- Yahoo
LiveOne Inc (LVO) Q4 2025 Earnings Call Highlights: Strategic Partnerships and Podcast Growth ...
Consolidated Revenue (Q4 2025): $19.3 million Audio Division Revenue (Q4 2025): $18.2 million Adjusted EBITDA (Q4 2025): $1.1 million Net Loss (Q4 2025): $10.9 million or $0.07 per diluted share Full Year Consolidated Revenue (Fiscal 2025): $114.4 million Full Year Adjusted EBITDA (Fiscal 2025): $8.4 million Audio Division Full Year Revenue (Fiscal 2025): $108.9 million Audio Division Adjusted EBITDA (Fiscal 2025): $18.2 million Podcast Business Revenue (Fiscal 2025): Over $52 million, up from $38 million last year Podcast Business Revenue (Q4 2025): $14 million Podcast Business EBITDA (Q4 2025): Over $900,000 Guidance for Podcast Business Revenue: $55 million to $60 million Guidance for Podcast Business EBITDA: $3.5 million to $5 million Credit Facility: Replaced $7.5 million credit line with $27.5 million facility from JGB Cost Reductions: Eliminated over $10 million in short-term liabilities and cut a third of staff at Slacker Radio Subscriber and User Base: Over 1.5 million subscribers and ad-supported users New Partnerships: $16.5 million with Amazon and $25 million with a Fortune 50 company Stock Buyback: Over 350,000 shares of LiveOne and over a million shares of PODC Warning! GuruFocus has detected 3 Warning Signs with LVO. Release Date: July 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LiveOne Inc (NASDAQ:LVO) reported over $112 million in revenues, surpassing previous guidance. The podcast business achieved significant growth, with revenues increasing from $38 million to over $52 million year-over-year. The company has successfully converted over 1.3 million Tesla users, contributing to a total of 1.5 million subscribers and ad-supported users. LiveOne Inc (NASDAQ:LVO) has launched significant partnerships, including deals with Amazon worth $16.5 million and a Fortune 50 company worth over $25 million. The company has made strategic financial moves, such as replacing a $7.5 million credit line with a $27.5 million facility, enhancing its cash position. LiveOne Inc (NASDAQ:LVO) posted a consolidated net loss of $10.9 million for Q4 2025. The company has cut a third of its staff at Slacker Radio and over 70% of its cash at CPS, indicating significant restructuring. Despite growth, the company still faces challenges in converting ad-supported users to paid subscribers. The company's stock has been perceived as undervalued, prompting a buyback of over 350,000 shares. There is uncertainty regarding the financial impact of new initiatives, such as AI and Web3, as detailed guidance has not been provided. Q: Can you clarify what a fill rate of over 50% means from a financial standpoint? A: Robert Ellin, CEO, explained that the fill rate refers to the percentage of advertising inventory being utilized, which is now over 50%. This drives revenue and sets the stage for converting free users to paid subscribers, similar to Spotify's model. The goal is to increase this fill rate to 75% quickly. Q: Are your Web3 and crypto initiatives primarily focused on podcast content? A: Yes, Robert Ellin confirmed that the initial focus is on podcast content. LiveOne has launched a podcast network for Web3 and crypto, aiming to create and acquire content using AI. While not entering the mining business, they see opportunities in tokenization and leveraging their large audience. Q: When will the 10-K be filed? A: Ryan Carhart, CFO, stated that the 10-K is expected to be filed early next week, pending final documentation from auditors. Q: Can you discuss any new B2B deals or changes in deal types? A: Robert Ellin highlighted that LiveOne is experiencing significant momentum in B2B deals, similar to past successes with Tesla. They are in discussions with various industries, including carriers and streaming networks, and expect to announce a major partnership soon. Q: Is there any update on the Tesla relationship? A: Robert Ellin expressed pride in the Tesla partnership, noting that LiveOne's branding is now prominent in Tesla cars. They have converted 1.3 million out of 2 million Tesla users, and the focus is on increasing ARPU and building a valuable subscriber database. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
04-07-2025
- Business
- Yahoo
LiveOne Inc (LVO) Q4 2025 Earnings Call Highlights: Strategic Partnerships and Podcast Growth ...
Consolidated Revenue (Q4 2025): $19.3 million Audio Division Revenue (Q4 2025): $18.2 million Adjusted EBITDA (Q4 2025): $1.1 million Net Loss (Q4 2025): $10.9 million or $0.07 per diluted share Full Year Consolidated Revenue (Fiscal 2025): $114.4 million Full Year Adjusted EBITDA (Fiscal 2025): $8.4 million Audio Division Full Year Revenue (Fiscal 2025): $108.9 million Audio Division Adjusted EBITDA (Fiscal 2025): $18.2 million Podcast Business Revenue (Fiscal 2025): Over $52 million, up from $38 million last year Podcast Business Revenue (Q4 2025): $14 million Podcast Business EBITDA (Q4 2025): Over $900,000 Guidance for Podcast Business Revenue: $55 million to $60 million Guidance for Podcast Business EBITDA: $3.5 million to $5 million Credit Facility: Replaced $7.5 million credit line with $27.5 million facility from JGB Cost Reductions: Eliminated over $10 million in short-term liabilities and cut a third of staff at Slacker Radio Subscriber and User Base: Over 1.5 million subscribers and ad-supported users New Partnerships: $16.5 million with Amazon and $25 million with a Fortune 50 company Stock Buyback: Over 350,000 shares of LiveOne and over a million shares of PODC Warning! GuruFocus has detected 3 Warning Signs with LVO. Release Date: July 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LiveOne Inc (NASDAQ:LVO) reported over $112 million in revenues, surpassing previous guidance. The podcast business achieved significant growth, with revenues increasing from $38 million to over $52 million year-over-year. The company has successfully converted over 1.3 million Tesla users, contributing to a total of 1.5 million subscribers and ad-supported users. LiveOne Inc (NASDAQ:LVO) has launched significant partnerships, including deals with Amazon worth $16.5 million and a Fortune 50 company worth over $25 million. The company has made strategic financial moves, such as replacing a $7.5 million credit line with a $27.5 million facility, enhancing its cash position. LiveOne Inc (NASDAQ:LVO) posted a consolidated net loss of $10.9 million for Q4 2025. The company has cut a third of its staff at Slacker Radio and over 70% of its cash at CPS, indicating significant restructuring. Despite growth, the company still faces challenges in converting ad-supported users to paid subscribers. The company's stock has been perceived as undervalued, prompting a buyback of over 350,000 shares. There is uncertainty regarding the financial impact of new initiatives, such as AI and Web3, as detailed guidance has not been provided. Q: Can you clarify what a fill rate of over 50% means from a financial standpoint? A: Robert Ellin, CEO, explained that the fill rate refers to the percentage of advertising inventory being utilized, which is now over 50%. This drives revenue and sets the stage for converting free users to paid subscribers, similar to Spotify's model. The goal is to increase this fill rate to 75% quickly. Q: Are your Web3 and crypto initiatives primarily focused on podcast content? A: Yes, Robert Ellin confirmed that the initial focus is on podcast content. LiveOne has launched a podcast network for Web3 and crypto, aiming to create and acquire content using AI. While not entering the mining business, they see opportunities in tokenization and leveraging their large audience. Q: When will the 10-K be filed? A: Ryan Carhart, CFO, stated that the 10-K is expected to be filed early next week, pending final documentation from auditors. Q: Can you discuss any new B2B deals or changes in deal types? A: Robert Ellin highlighted that LiveOne is experiencing significant momentum in B2B deals, similar to past successes with Tesla. They are in discussions with various industries, including carriers and streaming networks, and expect to announce a major partnership soon. Q: Is there any update on the Tesla relationship? A: Robert Ellin expressed pride in the Tesla partnership, noting that LiveOne's branding is now prominent in Tesla cars. They have converted 1.3 million out of 2 million Tesla users, and the focus is on increasing ARPU and building a valuable subscriber database. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Shrink Reduction Drives Dollar General's Gross Margin to 31% in Q1
Dollar General Corporation 's DG first-quarter fiscal 2025 results witnessed a meaningful improvement in the gross margin, which reached 31% from 30.2% in the year-ago period. This 78-basis-point improvement was primarily driven by lower shrink and higher inventory markups. The company's shrink mitigation efforts contributed 61 basis points to margin expansion. This suggests that Dollar General's strategic focus on cutting inventory loss is gaining traction and translating into tangible benefits. Management remains confident that progress on shrink control will continue to support gross margin expansion through the remainder of fiscal 2025. The improvement reflects ongoing operational enhancements across stores, including a tighter control environment and the successful execution of initiatives such as inventory reduction, SKU rationalization, improved retail turnover and targeted shrink incentive programs. Stores that never had self-checkout installed have shown shrink improvements comparable to those where self-checkout was removed. While external pressures such as tariffs and cost inflation still loom, shrink no longer appears to be the margin drag it once was. The sustained improvement in shrink is a critical factor in Dollar General's ability to maintain and potentially expand its gross margin in the current dynamic retail landscape. We expect the gross margin to expand by 50 basis points in the second quarter, contributing to a projected 60-basis-point improvement for fiscal 2025. How DG's Shrink Progress Compares to TGT & ULTA Target Corporation 's TGT first-quarter fiscal 2025 gross margin rate of 28.2% was down 60 basis points year over year, but it could have been worse. Target reported about 120 basis points of gross margin benefit from reduced shrink — a notable reversal of the elevated losses seen during 2022 and 2023. Management conceded that the bulk of the shrink recovery may have now played out, and Target will need to rely on other levers, such as merchandising mix, cost efficiencies or pricing strategies, to maintain or expand margins. Ulta Beauty, Inc. ULTA is also leaning on shrink reduction to help protect margins in a tough retail environment. In the latest quarter, Ulta Beauty's gross margin dipped slightly to 39.1% from 39.2% a year ago, with lower shrink partially offsetting pressure from fixed costs and weaker other revenues. Ulta Beauty continues to prioritize shrink management, making it a key lever as the company works to stabilize profitability. Dollar General's Price Performance, Valuation and Estimates Dollar General stock has rallied 22.1% over the past three months compared with the industry 's growth of 2.8%. Dollar General's forward 12-month price-to-earnings ratio of 19.16 reflects a lower valuation compared to the industry's average of 32.34. DG carries a Value Score of B. The Zacks Consensus Estimate for Dollar General's current financial-year sales suggests year-over-year growth of 4.4%, while estimates for earnings per share imply a decline of 2.7%. Dollar General currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
