Latest news with #MD&A
Hamilton Spectator
5 days ago
- Business
- Hamilton Spectator
Colabor Group Reports Results for the Second Quarter 2025
SAINT-BRUNO-DE-MONTARVILLE, Quebec, July 24, 2025 (GLOBE NEWSWIRE) — Colabor Group Inc. (TSX: GCL) ('Colabor' or the 'Company') reports its results for the second quarter ended June 14, 2025. Second Quarter 2025 Financial Highlights: Recent Event: On July 21, 2025, the Company announced that it identified a cybersecurity incident on July 20, 2025 that has impacted its internal IT systems. Refer to section 2.1 in MD&A for more information. Table of Second Quarter 2025 Financial Highlights: (1) Non-IFRS measure. Refer to the table Reconciliation of Net (Loss) Earnings to adjusted EBITDA in MD&A section 6 'Non-IFRS Performance Measures'. Adjusted EBITDA corresponds to net operating (loss) earnings before costs not related to current operations, depreciation and amortization and expenses for stock-based compensation plan. (2) Non-IFRS measure. Refer to MD&A section 6 'Non-IFRS Performance Measures'. Net debt corresponds to bank indebtedness, current portion of long-term debt and long-term debt, net of cash. (3) Financial leverage ratio is an indicator of the Company's ability to service its long-term debt. It is defined as net debt / adjusted EBITDA and pro forma adjustments related to the recent Acquisition, less lease liability payments and interests on lease obligations for the last four quarters. Refer to MD&A section 6 'Non-IFRS Performance Measures'. 'The closing of the Acquisition of Alimplus' distribution activities was an important milestone during the second quarter. Once integrated, the Acquisition will allow us to significantly accelerate our growth plan and reinforces us as a Quebec leader in food distribution. This Acquisition includes the signing of a six-year distribution agreement to serve the four stores of Groupe Mayrand Alimentation inc. It is highly strategic and allows us to gain a customer base in coveted territories, create significant synergies and offer cross-selling opportunities, particularly with our private brand and Tout-Prêt, Lauzon and Norref's products,' said Mr. Frenette. 'Mainly due to the acquisition and the growth of major accounts in the second quarter, we were able to generate revenue growth and partially offset the impact of ongoing macroeconomic headwinds affecting the restaurant industry, as well as the renewal of a major contract in December 2024, at less favorable market conditions. The latter had a significant impact on our profitability during the period, and we aim to gradually improve our margins by focusing on a more favorable product and customer mix in the upcoming quarters,' added Mr. Frenette. Results for the Second Quarter of 2025 Consolidated sales for the second quarter were $169.5 million, an increase of 5.1% compared to $161.3 million during the corresponding quarter of 2024. Sales from the distribution activities increased by 7.5% as a result of the recent Acquisition which contributed $8.8 million, the organic sales volume growth with major account clients and the effect of inflation. This growth was mitigated by the renewal of a supply agreement with an institutional customer at economic conditions significantly lower to the margins in effect in 2024, as well as the current economic uncertainties affecting the restaurant industry. Sales from the wholesale activities have decreased by 1.8% mainly as a result of the restaurant industry slowdown during the second quarter of 2025. Adjusted EBITDA(1) from continuing operations was $5.4 million or 3.2% of sales from continuing operations compared to $9.7 million or 6.0% during 2024. These variations result from the decrease in gross margin related to the supply agreement renewed in December 2024, as previously explained. Net loss from continuing operations and net loss were $2.3 million, down from net earnings from continuing operations and net earnings of $1.7 million for the corresponding quarter of the previous year, resulting essentially from a decrease of the adjusted EBITDA(1) and an increase in depreciation and costs not related to current operations, mitigated by higher income taxes recovery. Results for 24-week period of 2025 Consolidated sales for the 24-week period were $301.2 million, compared to $292.5 million for the corresponding period of 2024. Sales from the distribution activities grew by 4.9% and the wholesale sales declined by 2.8%. Adjusted EBITDA(1) from continuing operations was $7.6 million or 2.5% of sales from continuing operations compared to $14.6 million or 5.0% in 2024. These variations result from a decrease in gross margin related to the supply agreement renewed in December 2024. Net loss from continuing operations and net loss were $6.3 million, down from $0.1 million in the previous fiscal year. This variation is explained by the elements previously mentioned. Cash Flow and Financial Position Cash flows from operating activities were $4.5 million and $10.7 million for the 12 and 24-week periods of 2025, respectively, compared to $5.0 million and $16.7 million for the corresponding period of 2024. This decrease is mainly due to the decrease in adjusted EBITDA(1) mitigated by a lower utilization of working capital(4). The lower utilization of working capital(4) is explained by the timing of supplier payments. As at June 14, 2025, the Company's working capital(4) was $48.3 million, down from $50.3 million at the end of the fiscal year 2024. This decrease reflects improved management of accounts payable, mitigated by the recent Acquisition. As at June 14, 2025, the Company's net debt(2) was increased to $97.3 million, compared to $47.8 million at the end of the fiscal year 2024, resulting from an increase in the amended and restated credit facility of $34.3 million and a new highly subordinated debt of $15.0 million to finance the Acquisition. (4) Working capital is a non-IFRS performance measure. Working capital is an indicator of the Company's ability to hedge its current liabilities with its current assets. Refer to MD&A section 3.2 'Financial Position' for detailed calculation. Outlook 'The recent Acquisition positions us well to differentiate ourselves in a competitive market. In the second half of the year, we plan to focus on optimizing our activities in order to generate further efficiencies through an expanded customer base, allowing us to continue our momentum in targeted territories and industries. Improving our profitability and prioritizing debt reduction will remain key areas of focus, as they have been in recent years,' concluded Mr. Frenette. Non-IFRS Performance Measures The information provided in this release includes non-IFRS performance measures, notably adjusted earnings before financial expenses, depreciation and amortization and income taxes ('Adjusted EBITDA')(1). As these concepts are not defined by IFRS, they may not be comparable to those of other companies. Refer to Section 6 'Non-IFRS Performance Measures' in the Management's Discussion and Analysis. Additional Information The Management's Discussion and Analysis and the consolidated financial statements of the Company are available on SEDAR+ ( ). Additional information, including the annual information form, about Colabor Group Inc. can also be found on SEDAR+ and on the Company's website at . Forward-Looking Statements This press release contains certain forward-looking statements as defined under applicable securities law. Forward-looking information may relate to Colabor's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as 'may'; 'will'; 'should'; 'expect'; 'plan'; 'anticipate'; 'believe'; 'intend'; 'estimate'; 'predict'; 'potential'; 'continue'; 'foresee'; 'ensure' or other similar expressions concerning matters that are not historical facts. Particularly, statements regarding the Company's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Colabor believes are reasonable as of the current date. Assumptions such as synergies objective are based on a preliminary analysis of the organizational structure and the current level of spending across the Company. Our synergies objective assumes that we will be able to establish and maintain an effective process for sharing best practices, and is also based on our ability to integrate the acquired business. An important change in these facts and assumptions could significantly impact our synergies estimate as well as the timing of the implementation of our various initiatives. Refer in particular to section 2.2 'Development Strategies and Outlook' of the Company's MD&A. While Management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Colabor currently expects. For more exhaustive information on these risks and uncertainties, the reader should refer to section 7 'Risks and Uncertainties' of the Company's MD&A. These factors, which include risks related to the repercussions of any cyber security incident and any negotiations for financial relief, are not intended to represent a complete list of the factors that could affect Colabor and future events and results may vary significantly from what Management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release, information representing Colabor's expectations as of the date of this press release (or as of the date they are otherwise stated to be made), which are subject to change after such date. While Management may elect to do so, the Company is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law. Conference Call Colabor will hold a conference call to discuss these results on Friday, July 25, 2025, beginning at 9:30 a.m. Eastern time. Interested parties can join the call by dialing 1-800-990-4777 (from anywhere in North America) or 1-289-819-1299 (Toronto) or 1-514-400-3794 (Montreal). If you are unable to participate, you can listen to a recording by dialing 1-888-660-6345 or 1-289-819-1450 and entering the code 34320# on your telephone keypad. The recording will be available from 1:30 p.m. on Friday, July 25, 2025, until 11:59 p.m. on August 1, 2025. Note that the recording will be available offline on our website at the following address: You can also use the QuickConnect link: . This new link allows any participant to access the conference call by clicking on the URL link and enter their name and phone number. About Colabor Colabor is a distributor and wholesaler of food and related products serving the hotel, restaurant and institutional markets or 'HRI' in Quebec and in the Atlantic provinces, as well as the retail market. Within its two operating activities, Colabor offers specialty food products such as meat, fish and seafood, as well as food and related products through its Broadline activities. Further information:
Yahoo
6 days ago
- Business
- Yahoo
HEADWATER EXPLORATION INC. ANNOUNCES SECOND QUARTER OPERATING AND FINANCIAL RESULTS AND DECLARES QUARTERLY DIVIDEND
CALGARY, AB, July 23, 2025 /CNW/ - Headwater Exploration Inc. (the "Company" or "Headwater") (TSX: HWX) is pleased to announce its operating and financial results for the three and six months ended June 30, 2025. Selected financial and operational information is outlined below and should be read in conjunction with the unaudited condensed interim financial statements and the related management's discussion and analysis ("MD&A"). These filings will be available at and the Company's website at Financial and Operating Highlights Three months ended June 30, PercentChange Six months ended June 30, PercentChange2025 2024 2025 2024 Financial (thousands of dollars except share data) Total sales, net of blending expense (1) (4) 138,808 157,057 (12) 301,996 284,423 6 Adjusted funds flow from operations (2) 74,218 88,023 (16) 166,577 164,469 1 Per share - basic 0.31 0.37 (16) 0.70 0.70 - - diluted 0.31 0.37 (16) 0.70 0.69 1 Cash flow provided by operating activities 68,673 90,402 (24) 138,608 145,449 (5) Per share - basic 0.29 0.38 (24) 0.58 0.62 (6) - diluted 0.29 0.38 (24) 0.58 0.61 (5) Net income 38,023 53,868 (29) 88,027 91,487 (4) Per share - basic 0.16 0.23 (30) 0.37 0.39 (5) - diluted 0.16 0.22 (27) 0.37 0.38 (3) Capital expenditures (1) 50,704 50,717 - 113,551 115,984 (2) Adjusted working capital (2)58,472 62,381 (6) Shareholders' equity735,055 658,448 12 Dividends declared 26,155 23,765 10 52,310 47,494 10 Per share 0.11 0.10 10 0.22 0.20 10 Weighted average shares (thousands) Basic 237,763 237,275 - 237,767 236,096 1 Diluted 239,471 239,452 - 239,469 238,026 1 Shares outstanding, end of period (thousands) Basic237,763 237,654 - Diluted (5)237,763 241,075 (1) Operating (6:1 boe conversion) Average daily production Heavy crude oil (bbls/d) 20,249 18,825 8 19,882 18,168 9 Natural gas (mmcf/d) 10.8 5.5 96 12.6 8.5 48 Natural gas liquids (bbl/d) 185 67 176 164 77 113 Barrels of oil equivalent (9) (boe/d) 22,235 19,805 12 22,151 19,661 13Average daily sales (6) (boe/d) 22,123 19,754 12 22,071 19,607 13Netbacks ($/boe) (7) Operating Sales, net of blending (4) 68.95 87.37 (21) 75.61 79.70 (5) Royalties (12.84) (16.49) (22) (13.65) (14.43) (5) Transportation (5.65) (5.54) 2 (5.53) (5.44) 2 Production (7.44) (7.24) 3 (7.68) (7.14) 8 Operating netback (3) 43.02 58.10 (26) 48.75 52.69 (7) Realized gains (losses) on financial derivatives (0.36) (0.44) (18) (0.97) 1.49 (165) Operating netback, including financial derivatives (3) 42.66 57.66 (26) 47.78 54.18 (12) General and administrative expense (1.44) (1.50) (4) (1.44) (1.49) (3) Interest income and other expense (8) 0.45 0.81 (44) 0.51 0.89 (43) Current income tax expense (4.81) (8.01) (40) (5.12) (7.46) (31) Settlement of decommissioning liability - - - (0.03) (0.03) - Adjusted funds flow netback (3) 36.86 48.96 (25) 41.70 46.09 (10) (1) Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (2) Capital management measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (3) Non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures" within this press release. (4) Heavy oil sales are netted with blending expense to compare the realized price to benchmark pricing while transportation expense is shown separately. In the interim financial statements blending expense is recorded within blending and transportation expense. (5) Performance share units and restricted share units are cash settled. (6) Includes sales of unblended heavy crude oil, natural gas and natural gas liquids. The Company's heavy crude oil sales volumes and production volumes differ due to changes in inventory. (7) Netbacks are calculated using average sales volumes. For the three months ended June 30, 2025, sales volumes comprised of 20,136 bbs/d of heavy oil, 10.8 mmcf/d of natural gas and 185 bbls/d of natural gas liquids (three months ended June 30, 2024 – 18,774 bbls/d heavy oil, 5.5 mmcf/d natural gas and 67 bbls/d natural gas liquids). For the six months ended June 30, 2025, sales volumes comprised of 19,802 bbls/d of heavy oil, 12.6 mmcf/d of natural gas and 164 bbls/d of natural gas liquids (six months ended June 30, 2024 – 18,114 bbls/d heavy oil, 8.5 mmcf/d natural gas and 77 bbls/d natural gas liquids). (8) Excludes unrealized foreign exchange gains/losses, accretion on decommissioning liabilities, interest on lease liability and interest on repayable contribution. (9) See '"Barrels of Oil and Cubic Feet of Natural Gas Equivalent." SECOND QUARTER 2025 HIGHLIGHTS Achieved record production of 22,235 boe/d representing an increase of 12% from the second quarter of 2024. Realized adjusted funds flow from operations (1) of $74.2 million ($0.31 per share basic (2)), cash flows from operations of $68.7 million ($0.29 per share basic) and free cash flow (3) of $23.5 million. Achieved an operating netback, including financial derivatives (2) of $42.66/boe and an adjusted funds flow netback (2) of $36.86/boe. Achieved net income of $38.0 million ($0.16 per share basic) equating to $18.89/boe. Exceptional results from our exploration program with new pool discoveries in the Grand Rapids formation in West Marten Hills and the Wabiskaw formation in Greater Pelican. Executed a $50.7 million capital expenditure (3) program inclusive of development, exploration and secondary recovery implementation. Declared a cash dividend of $26.2 million, or $0.11 per common share. To date, Headwater has paid out a cumulative dividend of $265.2 million to shareholders ($1.12 per common share). As at June 30, 2025, Headwater had adjusted working capital (1) of $58.5 million, working capital of $64.8 million, and no outstanding bank debt. (1) Capital management measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. (2) Non-GAAP ratio. Refer to "Non-GAAP and Other Financial Measures" within this press release. (3) Non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" within this press release. OPERATIONS UPDATE New Pool Discoveries Grand Rapids Formation in Marten Hills West The Company is excited to report a new pool discovery in the Grand Rapids formation within the heart of Marten Hills West. Our discovery well 07/04-18-075-01W5, a 6-leg multi-lateral well achieved a 60-day initial production rate of 345 bbls/d of 19.5 API oil. The well continues to produce at rates in excess of 300 bbls/d and is on track to achieve its first payout by the end of August. This exceptional result has setup further drilling on a pool estimated to be approximately 15 sections in size. In addition, the oil quality and reservoir characteristics of this zone are highly favorable for secondary recovery development. Headwater will follow up this discovery well with 3 - 4 additional wells and 2 secondary recovery pilots in the second half of 2025. Wabiskaw Formation in Greater Pelican The Greater Pelican discovery well, an 8-leg multi-lateral drilled at 04/04-19-079-22W4 in the Wabiskaw formation was brought on production late April and has achieved a 90-day initial production rate of 475 bbls/d of 16.5 API oil. Inflow remains strong with current producing rates in excess of 500 bbls/d. The oil quality and exceptional inflow characteristics have greatly exceeded our expectations, and we are excited to continue delineation drilling and evaluation of secondary recovery implementation. During the balance of 2025 we intend to drill two follow up delineation wells in addition to procuring equipment to implement a polymer flood pilot in early 2026. Marten Hills West Development Headwater's other second quarter activity was focused in Marten Hills West with continued drilling along the southeastern edges of the Clearwater sandstone, further step out drilling on the Clearwater E formation, in addition to further implementation of secondary recovery across both formations. Throughout the second quarter, Headwater continued to delineate the southeastern edges of the Clearwater sandstone with exceptional results. Seven wells were drilled and placed on production providing average 30-day initial production rates exceeding 225 bbls/d. Results from the seven wells have expanded the southeastern Clearwater sandstone pool boundaries and provided confirmation that the southeastern area is ideal for implementation of secondary recovery. To date, in the Clearwater sandstone we have implemented secondary recovery across two sections with stabilized oil volumes from the initial secondary recovery efforts now exceeding 1,100 bbls/d. We have recently commissioned a third full section and by year end, plan to have a total of 5 sections under secondary recovery. With the planned development, Headwater anticipates having approximately 2,500 bbls/d of oil production in the Clearwater sandstone supported by year-end. As we look to 2026 and beyond, Headwater will continue secondary recovery development in the Clearwater sandstone. It is currently estimated that an additional 25-30 sections in the Clearwater sandstone are amenable to secondary recovery. Pool boundary expansion of the Clearwater E was a focus in the second quarter with step out tests to the northwest at 00/15-23-075-02W5 and 06/16-27-075-02W5. The 00/15-23-075-02W5 well achieved a 60-day initial production rate of 184 bbls/d of 23.5 API oil and the 06/16-27-075-02W5 achieved a 30-day initial production rate of 99 bbls/d of 22.5 API oil. During the balance of 2025 Headwater has eight additional wells planned for drilling in the Clearwater E formation including three step out tests on our most northern acreage in Marten Hills West. We recently commissioned our first full section of Clearwater E secondary recovery with encouraging initial results and have plans to commission a second section of secondary recovery prior to year end. Our two original injection pilots have now been on injection for 10 months, with oil rates from these pilots stabilized at approximately 300 bbls/d for 5 months. To date we have identified 15-20 sections of Clearwater E that are amenable to secondary recovery with full scale implementation to continue in 2026 and beyond. By year end 2025 it is anticipated that approximately 25% of Marten Hills West oil volumes and 50% of Headwater's corporate oil production will be supported by secondary recovery. Marten Hills Core The core area remains our flagship commercial secondary recovery asset demonstrating the value proposition of lower declines and increasing recovery factors. Production has been flat at approximately 7,000 bbls/d for more than 18 months, which has reduced our corporate decline rate by more than 5%. Handel Saskatchewan Headwater recently started drilling our 5 well stratigraphic exploration program. The exploration program is designed to evaluate numerous conventional Mannville heavy oil prospects in addition to zones prospective for steam assisted gravity drainage. THIRD QUARTER DIVIDEND The Board of Directors of Headwater has declared a quarterly cash dividend to shareholders of $0.11 per common share payable on October 15, 2025, to shareholders of record at the close of business on September 29, 2025. This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada). AUTOMATIC SHARE PURCHASE PLAN In connection with the previously announced normal course issuer bid ("NCIB"), the Company has established an automatic securities purchase plan with a designated broker whereby the Company's common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan and before entering into a self-imposed blackout period, the Company may, but is not required to, request that the designated broker make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by the Company prior to the blackout periods. Outside of the blackout periods, purchases are made at the discretion of the Company's management. The automatic securities purchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been accepted by the Toronto Stock Exchange. BOARD OF DIRECTORS Headwater would like to welcome Cheree Stephenson and Karen Nielsen as new members of Headwater's Board of Directors. Ms. Stephenson was elected at Headwater's annual meeting of shareholders held on May 8, 2025. Cheree is currently Vice President Finance & Chief Financial Officer at Topaz Energy Corp. Ms. Nielsen was appointed to Headwater's Board of Directors effective today. Karen was previously the Executive Vice President and Chief Commercial Officer at ATCO EnPower. OUTLOOK Positive working capital in conjunction with a highly flexible capital budget allows timely capital allocation adjustments to appropriately align with market conditions. Headwater remains focused on maximizing total shareholder returns through organic expansion, enhanced oil recovery, dividends and strategic buy backs under its ongoing normal course issuer bid. Additional corporate information can be found in the Company's corporate presentation and on Headwater's website at FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. The use of any of the words "guidance", "initial, "anticipate", "scheduled", "can", "will", "prior to", "estimate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein, include, without limitation: that the Marten Hills West discovery well will achieve its first payout and the timing thereof; the estimated size of certain of the Company's pools; the expectation to follow up the Grand Rapids discovery well with 3 - 4 additional wells and 2 secondary recovery pilots in the second half of 2025; the expectation to drill two follow up delineation wells in Greater Pelican in addition to procuring equipment to implement a polymer flood pilot in early 2026; that Headwater anticipates having a total of 5 sections under secondary recovery and approximately 2,500 bbls/d of oil production in the Clearwater sandstone supported by year-end and expectations and timing of further secondary recovery plans; the expectation to drill eight wells in the Clearwater E formation; the planned implementation of a second section of secondary recovery in the Clearwater E formation before year end and full scale implementation to occur in 2026 and beyond; the expectation that by year end 2025 it is anticipated that approximately 25% of Marten Hills West oil volumes and 50% of Headwater's corporate oil production will be supported by secondary recovery; well results in Handel; and the anticipated terms of the Company's quarterly dividend, including its expectation that it will be designated as an "eligible dividend". The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation, receipt of required regulatory approvals, the success of future drilling, development and secondary recovery activities, the performance of existing wells, the performance of new wells, Headwater's growth strategy, general economic conditions, availability of required equipment and services, prevailing equipment and services costs, prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; risks associated with wildfires in areas in which the Company operates including safety of personnel, asset integrity and potential disruption of operations which could affect the Company's results, business, financial conditions or liquidity; the impact of tariffs and other trade retaliatory measure imposed by the United States, Canada and other countries; disruptions to the Canadian and global economy resulting from major public health events, the Russian-Ukrainian war and the conflict in the Middle-East and the impact on the global economy and commodity prices; the impacts of inflation and supply chain issues and steps taken by central banks to curb inflation; pandemics, war, terrorist events, political upheavals and other similar events; events impacting the supply and demand for oil and gas including actions taken by the OPEC + group; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks); commodity price and exchange rate fluctuations; changes in legislation affecting the oil and gas industry; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures and the risk that the Company's pools may be smaller than anticipated. Refer to Headwater's most recent Annual Information Form dated March 13, 2025, on SEDAR+ at and the risk factors contained therein. DIVIDEND POLICY: The amount of future cash dividends paid by the Company, if any, will be subject to the discretion of the Board and may vary depending on a variety of factors and conditions existing from time to time, including, among other things, adjusted funds flow from operations, fluctuations in commodity prices, production levels, capital expenditure requirements, acquisitions, debt service requirements and debt levels, operating costs, royalty burdens, foreign exchange rates and the satisfaction of the liquidity and solvency tests imposed by applicable corporate law for the declaration and payment of dividends. Depending on these and various other factors, many of which will be beyond the control of the Company, the Board will adjust the Company's dividend policy from time to time and, as a result, future cash dividends could be reduced or suspended entirely. BARRELS OF OIL AND CUBIC FEET OF NATURAL GAS EQUIVALENT: The term "boe" (or barrels of oil equivalent) and "Mcf" (or thousand cubic feet of natural gas equivalent) may be misleading, particularly if used in isolation. A boe and Mcf conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value. INITIAL PRODUCTION RATES: References in this press release to initial production ("IP") rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. All IP rates presented herein represent the results from wells after all "load" fluids (used in well completion stimulation) have been recovered. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Accordingly, the Company cautions that the test results should be considered to be preliminary. NON-GAAP AND OTHER FINANCIAL MEASURES:In this press release, we use various non-GAAP and other financial measures to analyze operating performance and financial position. These non-GAAP and other financial measures do not have standardized meanings prescribed under IFRS and therefore may not be comparable to similar measures presented by other issuers. The term cash flow in this press release is equivalent to adjusted funds flow from operations. Non-GAAP Financial Measures Free cash flow Management utilizes free cash flow to assess the amount of funds available for future capital allocation decisions. It is calculated as adjusted funds flow from operations net of capital expenditures. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Adjusted funds flow from operations 74,218 88,023 166,577 164,469 Capital expenditures (50,704) (50,717) (113,551) (115,984) Free cash flow 23,514 37,306 53,026 48,485 Total sales, net of blending expense Management utilizes total sales, net of blending expense to compare realized pricing to benchmark pricing. It is calculated by deducting the Company's blending expense from total sales. In the interim financial statements blending expense is recorded within blending and transportation expense. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Total sales 144,944 164,281 315,099 298,315 Blending expense (6,136) (7,224) (13,103) (13,892) Total sales, net of blending expense 138,808 157,057 301,996 284,423 Capital expenditures Management utilizes capital expenditures to measure total cash capital expenditures incurred in the period. Capital expenditures represents capital expenditures – exploration and evaluation and capital expenditures – property, plant and equipment in the statement of cash flows in the Company's interim financial statements. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Cash flows used in investing activities 40,781 66,204 103,884 117,784 Proceeds from government grant - 177 - 354 Change in non-cash working capital 9,923 (15,664) 9,667 (2,154) Capital expenditures 50,704 50,717 113,551 115,984 Capital Management Measures Adjusted Funds Flow from Operations Management considers adjusted funds flow from operations to be a key measure to assess the Company's management of capital. In addition to being a capital management measure, adjusted funds flow from operations is used by management to assess the performance of the Company's oil and gas properties. Adjusted funds flow from operations is an indicator of operating performance as it varies in response to production levels and management of production and transportation costs. Management believes that by eliminating changes in non-cash working capital and restricted cash and adjusting for current income taxes in the period, adjusted funds flow from operations is a useful measure of operating performance. Three months ended June 30, Six months ended June 30,2025 2024 2025 2024(thousands of dollars) (thousands of dollars) Cash flows provided by operating activities 68,673 90,402 138,608 145,449 Changes in non–cash working capital 4,122 1,786 11,010 (6,414) Current income taxes (9,683) (14,392) (20,453) (26,625) Current income taxes paid 9,106 10,227 35,412 39,231 Change in restricted cash 2,000 - 2,000 - Adjusted funds flow from operations 74,218 88,023 166,577 164,469 Adjusted Working Capital Adjusted working capital is a capital management measure which management uses to assess the Company's liquidity. Financial derivative receivable/liability have been excluded as these contracts are subject to a high degree of volatility prior to settlement and relate to future production periods. Financial derivative receivable/liability are included in adjusted funds flow from operations when the contracts are ultimately realized. Management has included the effects of the repayable contribution to provide a better indication of Headwater's net financing obligations. As at June 30, 2025 As at December 31, 2024(thousands of dollars) Working capital 64,836 78,735 Repayable contribution (6,937) (10,916) Financial derivative receivable (975) (3,088) Financial derivative liability 1,548 2,847 Adjusted working capital 58,472 67,578 Non-GAAP Ratios Adjusted funds flow netback, operating netback and operating netback, including financial derivatives Adjusted funds flow netback, operating netback and operating netback, including financial derivatives are non-GAAP ratios and are used by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow netback is defined as adjusted funds flow from operations divided by sales volumes in the period. Operating netback is defined as sales less royalties, transportation and blending costs and production expense divided by sales volumes in the period. Sales volumes exclude the impact of purchased condensate and butane. Operating netback, including financial derivatives is defined as operating netback plus realized gains (losses) on financial derivatives. Adjusted funds flow from operations per share Adjusted funds flow from operations per share is a non-GAAP ratio and is used by management to better analyze the Company's performance against prior periods on a more comparable basis. Adjusted funds flow per share is calculated as adjusted funds flow from operations divided by weighted average shares outstanding on a basic or diluted basis. Supplementary Financial Measures Per boe numbers This press release represents various results on a per boe basis including Headwater's net of blending expense, realized gains (losses) on financial derivatives per boe, general and administrative expenses per boe, interest income and other expense per boe, current income tax expense per boe and settlement of decommissioning liability expense per boe. These figures are calculated using sales volumes. SOURCE Headwater Exploration Inc. View original content:
Yahoo
09-07-2025
- Business
- Yahoo
Theratechnologies Reports Financial Results for the Second Quarter 2025
Q2 2025 total revenue of $17.7 million, and $36.8 million for the first six months of Fiscal 2025 Positive Adjusted EBITDA1 for the fifth straight quarter Subsequent to quarter end, Theratechnologies entered into a definitive agreement to be acquired by an affiliate of Future Pak MONTREAL, July 09, 2025 (GLOBE NEWSWIRE) -- Theratechnologies Inc. ('Theratechnologies' or the 'Company') (TSX: TH) (NASDAQ: THTX), a commercial-stage biopharmaceutical company, today reported business highlights and financial results for the second quarter 2025, ended May 31, 2025. All figures are in U.S. dollars unless otherwise stated. 'Demand for EGRIFTA SV® remains very strong and we are witnessing record high patient enrollments. During the first half of our fiscal year, we achieved close to $37 million in revenue despite an estimated negative impact of $10-$12 million from the EGRIFTA SV® shortage in the first quarter, which was subsequently resolved. Unique patients are back to normal levels, and new patient enrollments, another key metric, are at record highs. This, along with Trogarzo® net sales which have now stabilized as expected, indicates a return to our growth trajectory for the top and bottom lines in the coming quarters,' said Paul Lévesque, President and Chief Executive Officer. 'We are on track to bring EGRIFTA WRTM, a new and improved version of this important medication for people with HIV, to the market in the third quarter, capitalizing on the momentum created in the last 12 months.' __________1 This is a non-IFRS measure that is forward looking. The amount indicated diverges significantly from amounts achieved historically. See 'Non-IFRS and Non-US GAAP Measure' below for such historical amounts and a reconciliation thereof to the most directly comparable IFRS measure. Fiscal 2025 Revenue and Adjusted EBITDA GuidanceIn light of the previously announced agreement to be acquired by an affiliate of Future Pak, the Company is withdrawing its Fiscal 2025 revenue and Adjusted EBITDA guidance and will not be providing updated guidance. Summary of Financial ResultsThe financial results presented in this press release are taken from the Company's Management's Discussion and Analysis ('MD&A'), and interim consolidated financial statements ('Interim Financial Statements') for the three- and six- month periods ended May 31, 2025, which have been prepared in accordance with International Financial Reporting Standards ('IFRS'), as issued by the International Accounting Standards Board ('IASB'). The MD&A and the Interim Financial Statements can be found on SEDAR+ at on EDGAR at and at Unless specified otherwise, all capitalized terms have the meaning ascribed thereto in our MD&A. Revenue Summary for Second Quarter and First Half Fiscal 2025 Three monthsended May 31 % change Six monthsended May 31 %change 2025 2024 2025 2024 EGRIFTA SV® net sales 11,131 16,200 (31.3%) 25,011 25,786 (3.0%) Trogarzo® net sales 6,598 5,817 13.4% 11,765 12,478 (5.7%) Revenue 17,729 22,017 (19.5%) 36,776 38,264 (3.9%) RevenueFor the three- and six-month periods ended May 31, 2025, consolidated revenue was $17,729,000 and $36,776,000, compared to $22,017,000 and $38,264,000 for the same periods ended May 31, 2024, representing year-over-year decreases of 19.5% for the second quarter and 3.9% for the first half of Fiscal 2025 versus Fiscal 2024. For the second quarter of Fiscal 2025, net sales of EGRIFTA SV® were $11,131,000 compared to $16,200,000 in the second quarter of fiscal 2024, representing a decrease of 31.3% year-over-year. Lower sales of EGRIFTA SV® were mostly the result of lower unit sales (-24.9%), as a result of the supply disruption announced by the company in late 2024, and higher government chargebacks, rebates and others (-11.4%), mostly related to the Inflation Reduction Act ('IRA'), which includes new rebates enacted in late 2024 related to patients in the Medicare program. The decrease in sales was offset by a higher selling price (+5.0%). Net sales for the six-month period ended May 31, 2025, amounted to $25,011,000 compared to $25,786,000 in the same period in 2024, representing a decrease of 3.0%. Lower sales of EGRIFTA SV® were mostly the result of lower unit sales (-6.2%), as a result of the supply disruption announced by the Company in late 2024, and higher government chargebacks, rebates and others (-2.4%), mostly related to the Inflation Reduction Act ('IRA'), which includes new rebates enacted in late 2024 related to patients in the Medicare program. The decrease in sales was offset by a higher average selling price (+5.6%). Trogarzo® net sales in the second quarter of Fiscal 2025 amounted to $6,598,000 compared to $5,817,000 for the same quarter of 2024, representing an increase of 13.4% year-over-year. Higher sales of Trogarzo® in the quarter were mostly due to higher unit sales (+11.0%) and a higher selling price (+3.0%). Government rebates, chargebacks and others were stable in the quarter compared to Fiscal 2024. For the six-month period ended May 31, 2025, Trogarzo® net sales were $11,765,000 compared to $12,478,000 in the same period in 2024, or a decrease of 5.7%. Lower sales of Trogarzo® in the period were mostly due to lower unit sales (-4.1%) and higher government rebates, chargebacks (-4.7%), which were offset by a higher average selling price (+3.1%). Cost of Goods SoldFor the three- and six-months ended May 31, 2025, cost of goods sold was $4,699,000 and $8,182,000 compared to $4,547,000 and $9,831,000 for the same periods in fiscal 2024. Three monthsended May 31 Six monthsended May 31 2025 2024 2025 2024 ($000s) % ofRevenue ($000s) % ofRevenue ($000s) % ofRevenue ($000s) % ofRevenue EGRIFTA SV® 1,290 11.6% 1,549 9.6% 2,098 8.4% 3,436 9.6% Trogarzo® 3,409 51.7% 2,998 51.5% 6,084 51.7% 6,395 51.5% Total 4,699 26.5% 4,547 20.7% 8,182 22.2% 9,831 20.7% For the six-month period ended May 31, 2025, EGRIFTA SV® cost of goods sold was reduced by the reversal of an inventory provision in the first quarter of 2025 ($713,000), which was recorded in the fourth quarter of 2024, related to the manufacturing of batches of F8 Formulation recorded prior to approval of the F8 Formulation by the FDA. In the six-month period ended May 31, 2024, EGRIFTA SV® cost of goods sold was increased by this inventory provision ($1,088,000). For the three- and six-month periods ended May 31, 2025, the percentage of revenue for the cost of goods sold of EGRIFTA SV® excluding these provision changes has increased, mainly due to higher raw materials prices. Trogarzo® cost of sales is contractually established at 52% of net sales, subject to periodic adjustment for returns or other factors. R&D Expenses R&D expenses in the three- and six-month periods ended May 31, 2025, amounted to $2,614,000 and $5,583,000 compared to $4,725,000 and $8,477,000 in the comparable periods of fiscal 2024. R&D expenses in the three-month period ended May 31, 2024 include the accelerated depreciation ($766,000) of equipment used as part of the preclinical oncology research activities, following the decision to cease early-stage R&D activities. For the three- and six-month periods ended May 31, 2025, the decrease in R&D expenses is mainly explained by the reduction of spending in our oncology program, as well as lower spending on the F8 Formulation, which was approved in March 2025. R&D expenses(in thousands of dollars) Three monthsended May 31 Six monthsended May 31 2025 2024 %change 2025 2024 %change Oncology Laboratory research and personnel 31 1,033* -97% 63 1,366* -95% Pharmaceutical product development 13 44 -70% 61 157 -61% Phase 1 clinical trial 68 588 -88% 153 977 -84% Medical projects and education 242 278 -13% 448 504 -11% Salaries, benefits and expenses 1,284 1,271 1% 2,726 2,614 4% Regulatory activities 417 376 11% 874 807 8% Trogarzo® IM formulation - 6 -100% - 26 -100% Tesamorelin formulation development 260 448 -42% 832 1,052 -21% F8 human factor studies 5 5 -% (5) 7 -171% European activities 46 50 -8% 57 52 10% Travel, consultants, patents, options, others 343 308 11% 663 579 15% Restructuring costs - 318 -100% - 336 -100% Tax Credits (95) (33) 187% (289) (65) 344% Total 2,614 4,725 -45% 5,583 8,477 -34% * Including accelerated depreciation ($766,000) of equipment used in the oncology program, following the decision to cease R&D activities related to the oncology program Selling Expenses Selling expenses increased to $6,840,000 and $13,310,000 for the three- and six-month periods ended May 31, 2025, compared to $6,367,000 and $12,068,000 for the same periods last year. The increase in selling expenses Fiscal 2025, is due in large part to higher compensation expense, due to lower vacancies and hiring related to market preparation for the Ionis in-licensed products. The amortization of the intangible asset value for the EGRIFTA SV® and Trogarzo® commercialization rights is also included in selling expenses. As such, we recorded amortization expense of $361,000 and $722,000 for the three- and six-month periods ended May 31, 2025 compared to $360,000 and $720,000 in the same periods of Fiscal 2024. General and Administrative Expenses General and administrative expenses in the three- and six-month periods ended May 31, 2025, amounted to $5,480,000 and $9,710,000 compared to $3,090,000 and $6,846,000 reported in the comparable periods of fiscal 2024. The increase in General and Administrative expenses in the second quarter of 2025 is largely due to professional fees ($1,359,000) incurred with respect to the sale process announced by the Company on April 15, 2025. The increases for the three- and six- month periods ended May 31, 2025 are also due to higher professional fees and higher stock-based compensation. Adjusted EBITDAAdjusted EBITDA was $906,000 for the second quarter of fiscal 2025 and $3,227,000 for the six-month period ended May 31, 2025, compared to $5,459,000 and $5,212,000 for the same periods of Fiscal 2024. The decrease is mainly explained by higher spending detailed above, and lower revenues attributable to the supply shortage of EGRIFTA SV® which occurred in the first quarter of Fiscal 2025. See 'Non-IFRS and Non-US-GAAP Measure' below and 'Reconciliation of Adjusted EBITDA' below for a reconciliation to Net Loss for the relevant periods. Net Finance Costs Net finance costs for the three- and six-month periods ended May 31, 2025, were $2,312,000 and $3,783,000 compared to $2,183,000 and $4,308,000 for the comparable periods of Fiscal 2024. Net finance costs in the second quarter of Fiscal 2025 included interest of $995,000, versus $2,313,000 in the second quarter of Fiscal 2024 and a $1,074,000 loss on financial instruments carried at fair value. Net finance costs in the six-month period ended May 31, 2025 included interest of $2,001,000 versus $4,587,000 in the six-month period of Fiscal 2024 and a $1,524,000 loss on financial instruments carried at fair value. The decrease in interest expense is the result of the lower interest rates and lower long-term debt outstanding on the Company's new credit facilities. For the three-month and six-month periods ended May 31, 2025, the decrease in interest expense was offset by lower interest income as a result of our overall lower cash balances and by a loss on financial instruments carried at fair value. Net finance costs for the three- and six-month periods ended May 31, 2025, also included accretion expense of $112,000 and $231,000, compared to $382,000 and $756,000 for the comparable periods in 2024. Income Tax Expense Income tax expense amounted to $246,000 and $553,000 in the three- and six-month periods ended May 31, 2025, versus $118,000 and $228,000 in the same periods last year. The increase in the three- and six month periods ended May 31, 2025 over the same periods of 2024 is attributable to the higher net fiscal income generated by our operations. The Company recorded $95,000 in Canadian federal non-refundable tax credits in the three-month period ended May 31, 2025 against research and development expenses, and $289,000 in the six-month period ended May 31, 2025, which largely offsets the Canadian federal income tax payable. Net Loss (Profit) Net loss for the second quarter ended May 31, 2025, amounted to $4,462,000 compared to a net profit of $987,000 in Fiscal 2024. For the six-month periods ended May 31, 2025 and 2024 the Company recorded net losses of $4,345,000 and $3,494,000, respectively. Financial Position, Liquidity and Capital Resources Liquidity and future operations As part of the preparation of the Interim Financial Statements, management is responsible for identifying any event or situation that may cast doubt on the Company's ability to continue as a going concern. As of the issuance date of the Interim Financial Statements, the Company expects that its existing cash and cash equivalents as of May 31, 2025, together with cash generated from its existing operations will be sufficient to fund its operating expenses and debt obligations requirements for at least the next 12 months from the issuance date of these interim financial statements. Considering the recent actions of the Company, material uncertainty that raised substantial doubt about the Company's ability to continue as a going concern was alleviated effective from the first quarter interim financial statements. For the six-month period ended May 31, 2025, the Company generated a net loss of $4,345,000 (2024- $3,494,000) and had positive cash flows from operating activities of $2,659,000 (2024- $(1,998,000)). As at May 31, 2025, cash amounted to $9,459,000 and the accumulated deficit was $421,196,000. The Company's ability to continue as a going concern requires the Company to continue to achieve positive cash flows through revenues generation and managing expenses and meet the covenants of the TD Credit Agreement and the IQ Credit Agreement at all times, which require testing on a quarterly basis. On January 9, 2025, the Company announced a temporary supply disruption for EGRIFTA SV® caused by an unexpected voluntary shutdown of the Company's contract manufacturer's facility in the third quarter of 2024 following an inspection by the US Food and Drug Administration. The manufacturer has resumed manufacturing of EGRIFTA SV®, in November 2024. In order to resume distribution of EGRIFTA SV®, the Company was required to file a Prior Approval Supplement ('PAS') with the FDA describing the changes made by its manufacturer. The Company filed the PAS on December 18, 2024. On April 7, 2025, the FDA approved the PAS, allowing the Company to continue releasing EGRIFTA SV® to the market without further authorization from the FDA. The Company's ability to continue as a going concern for a period of at least, but not limited to, 12 months from May 31, 2025 involves significant judgement and is dependent on continued generation of revenues including a successful transition from EGRIFTA SV® to EGRIFTA WR™ in order to be able to meet the Adjusted EBITDA covenants. The Interim Financial Statements have been prepared assuming the Company will continue as a going concern, which assumes the Company will continue its operations in the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. Analysis of cash flows We ended the second quarter of Fiscal 2025 with $10,139,000 in cash, bonds and money market funds. Available cash is invested in highly liquid fixed income instruments including governmental and municipal bonds, and money market funds. For the three-month period ended May 31, 2025, cash used by operating activities before changes in operating assets and liabilities was $1,679,000, compared to cash generated of $2,616,000 in the comparable period of Fiscal 2024. In the second quarter of Fiscal 2025, changes in operating assets and liabilities had a positive impact on cash flow of $14,082,000 (2024-negative impact of $2,906,000). These changes included positive impacts from a decrease in accounts receivable ($10,989,000), an increase in accounts payable ($2,700,000), and higher provisions ($1,013,000). Higher inventories had a negative impact on cash flow of $755,000. During the second quarter of Fiscal 2025, cash used by financing activities totalled $6,885,000 in cash, mostly related to the reimbursement of capital on the TD Bank Credit Facility ($6,786,000), which includes $5,000,000 drawn on the Revolving Credit Facility during the first quarter of 2025. Reconciliation of Adjusted EBITDA(In thousands of dollars) Three-month periods endedMay 31 Six-month periods endedMay 31 2025 2024 2025 2024 Net income (loss) (4,462 ) 987 (4,345 ) (3,494 ) Add : Depreciation and amortization2 473 1,262 964 1,779 Net Finance costs3 2,312 2,183 3,783 4,308 Income taxes 246 118 553 228 Share-based compensation 978 340 1,626 967 Inventory provision4 - 251 (713 ) 1,088 Transaction costs 1,359 - 1,359 - Restructuring costs - 318 - 336 Adjusted EBITDA 906 5,459 3,227 5,212 __________2 Includes depreciation of property and equipment, amortization of intangible, other assets and right-of-use assets.3 Includes all finance income and finance costs consisting of: Foreign exchange, interest income, accretion expense and amortization of deferred financing costs, interest expense, bank charges, gain or loss on financial instruments carried at fair value and loss on debt modification and gain on lease termination. 4 Inventory provision pending marketing approval of the F8 Formulation. About Theratechnologies Theratechnologies (TSX: TH) (NASDAQ: THTX) is a specialty biopharmaceutical company focused on the commercialization of innovative therapies that have the potential to redefine standards of care. Further information about Theratechnologies is available on the Company's website at on SEDAR+ at and on EDGAR at Follow Theratechnologies on Linkedin and X. Non-IFRS and Non-US GAAP The information presented in this press release includes a measure that is not determined in accordance with IFRS or U.S. generally accepted accounting principles ('U.S. GAAP'), being the term 'Adjusted EBITDA'. 'Adjusted EBITDA' is used by the Company as an indicator of financial performance and is obtained by adding to net profit or loss, finance income and costs, depreciation and amortization, impairment loss on intangible assets, income taxes, share-based compensation from stock options, certain transaction costs new this period), certain restructuring costs and certain write-downs (or related reversals) of inventories. 'Adjusted EBITDA' excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions rather than the results of day-to-day operations. The Company believes that this measure can be a useful indicator of its operational performance from one period to another. The Company uses this non-IFRS measure to make financial, strategic and operating decisions. 'Adjusted EBITDA' is not a standardized financial measure under the financial reporting framework used to prepare the financial statements of the Company to which the measure relates and might not be comparable to similar financial measures disclosed by other issuers. A quantitative reconciliation of Adjusted EBITDA is presented above under the table titled 'Reconciliation of Adjusted EBITDA'. Forward-Looking Information This press release contains forward-looking statements and forward-looking information (collectively, 'Forward-Looking Statements'), within the meaning of applicable securities laws, that are based on our management's beliefs and assumptions and on information currently available to our management. You can identify Forward-Looking Statements by terms such as "may", "will", "should", "could", 'would', "outlook", "believe", "plan", "envisage", "anticipate", "expect" and "estimate", or the negatives of these terms, or variations of them. The Forward-Looking Statements contained in this press release include, but are not limited to, statements regarding: (i) our expectations regarding tsales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo®; and (ii) our ability and capacity to launch EGRIFTA WRTM successfully in the United States in the third quarter of 2025. Although the Forward-Looking Statements contained in this press release are based upon what the Company believes are reasonable assumptions in light of the information currently available, investors are cautioned against placing undue reliance on these statements since actual results may vary from the Forward-Looking Statements. Certain assumptions made in preparing the Forward-Looking Statements include that (i) sales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo® will grow over time; (ii) we will be successful in obtaining the reimbursement of EGRIFTA WRTM by public and private payors; (iii) we will have the ability to deliver EGRIFTA WRTM to pharmacies in the third quarter of 2025; (iv) our suppliers of EGRIFTA SV® and EGRIFTA WRTM will be able to manufacture these drugs and will be able meet market demands for these products; (v) the announcement of the acquisition of the Company by an affiliate of Future Pack will close (vi) the Company will not be involved in any material litigation; and (vii) we will be in compliance with the covenants, obligations and undertakings contained in the TD Credit Agreement and the IQ Credit Agreement. Forward-Looking Statements assumptions are subject to a number of risks and uncertainties, many of which are beyond Theratechnologies' control that could cause actual results to differ materially from those that are disclosed in or implied by such Forward-Looking Statements. These risks and uncertainties include, but are not limited to: (i) the Company's ability and capacity to grow the sales of EGRIFTA SV®, EGRIFTA WRTM and Trogarzo® successfully in the United States; (ii) the Company's capacity to meet supply and demand for its products; (iii) the market acceptance of EGRIFTA WRTM in the United States; (iv) the Company's ability and capacity to provide pharmacies with EGRIFTA WRTM in the third quarter of 2025; (v) the Company's ability to obtain reimbursement coverage for EGRIFTA WRTM; (vi) the continuation of the Company's collaborations and other significant agreements with its existing commercial partners and third-party suppliers and its ability to establish and maintain additional collaboration agreements; (vii) the Company's success in continuing to seek and maintain reimbursements for EGRIFTA SV® and Trogarzo® by third-party payors in the United States; (viii) the success and pricing of other competing drugs or therapies that are or may become available in the marketplace; (ix) the discovery of a cure for HIV; (x) the Company's failure to meet the terms and conditions set forth in the TD Credit Agreement and the IQ Credit Agreement resulting in an event of default and entitling the lenders to foreclose on all of our assets resulting in a material adverse effect on the Company and impeding the closing of its acquisition by an affiliate of Future Pack under the arrangement agreement; (xi) unknown safety or efficacy issues with our approved drug products causing a decrease in demand for those products or a recall; and (xii) the failure to close the transaction with an affiliate of Future Pack. We refer current and potential investors to the risk factors described under Item 3.D of our annual information form filed under Form 20-F dated February 26, 2025 available on SEDAR+ at and on EDGAR at under Theratechnologies' public filings for additional risks related to the Company. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on Forward-Looking Statements. Forward-Looking Statements reflect current expectations regarding future events and speak only as of the date of this press release and represent our expectations as of that date. We undertake no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise, except as may be required by applicable law. Contacts: Investor inquiries:Investor inquiries:Philippe DubucSenior Vice President and Chief Financial Officerpdubuc@ Media inquiries:Julie SchneidermanSenior Director, Communications & Corporate Affairscommunications@
Wall Street Journal
16-06-2025
- Business
- Wall Street Journal
Quarterly Reports Are Written for AI
Every quarter, public companies publish a section of their financial report called Management Discussion and Analysis, or MD&A. It's where management explains the financial results in plain language—what happened, why it happened and what might come next. The annual report's version is the most detailed, often written or approved by the board itself. But something has changed. These reports are no longer written only for investors. They are now crafted with algorithms in mind.
Cision Canada
16-06-2025
- Business
- Cision Canada
Primaris REIT Announces $416 Million Acquisition of Lime Ridge Mall and Concurrent Secondary Offering of REIT Units
The base shelf prospectus is accessible, and the shelf prospectus supplement will be accessible within two business days through SEDAR+ TORONTO, June 16, 2025 /CNW/ - Primaris Real Estate Investment Trust ("Primaris" or the "REIT" or the "Trust") (TSX: announced today that it has agreed to acquire a 100% interest in Lime Ridge Mall ("Lime Ridge Mall") in Hamilton, Ontario from an entity managed by Cadillac Fairview (the "Vendor") for aggregate consideration of $416.0 million, to be satisfied by a combination of cash and equity, subject to certain conditions (the "Acquisition"). The Acquisition continues to build upon Primaris' track record of successfully executing on its well defined growth strategy focused on market leading shopping centres in growing Canadian markets. Transaction Highlights of Acquisition Aggregate consideration of $416.0 million is comprised of: $235.0 million of cash; $81.0 million of series A units of the Trust ("REIT Units") at an issue price of $21.40 per REIT Unit (the "Issue Price"), being the NAV** per REIT Unit disclosed in the Trust's most recently published Management's Discussion and Analysis ("MD&A"); and $100.0 million of 6.00% exchangeable preferred units (the "Preferred LP Units") in a new subsidiary limited partnership, which Preferred LP Units shall be exchangeable into REIT Units at an exchange price equal to the Issue Price per REIT Unit, subject to customary adjustments. Lime Ridge Mall is unencumbered; and Closing is expected on June 17, 2025, subject to the satisfaction of customary closing conditions. "Lime Ridge Mall is a market leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy. The mall produces over $251 million in annual sales, $841 in sales per square foot, and is located in a large and growing market, with access to mass transit," said Patrick Sullivan, President and Chief Operating Officer. "There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space." Rags Davloor, Chief Financial Officer added, "Acquiring this high quality asset, while maintaining industry leading credit metrics, is a testament to the strategic advantages provided by Primaris' differentiated financial model. Our commitment to maintain an extremely well capitalized balance sheet positions Primaris as a highly credible transaction counterparty, enabling continued growth." "With the acquisition of Lime Ridge Mall, Primaris' 2025 acquisitions total $1 billion of leading enclosed shopping centres, exceeding our three-year target," said Alex Avery, Chief Executive Officer. "We are improving the overall quality of our enclosed shopping centre portfolio, driving the portfolio's annual same store sales productivity from $768 per square foot as at March 31, 2025 to $774 per square foot, on a proforma basis. The concurrent equity offering will increase Primaris' public float and enhance the trading liquidity of Primaris' units, to the benefit of all unitholders." Proforma Primaris Portfolio The composition of the consideration payable for the Acquisition allows Primaris to maintain its best-in-class capital structure and financial leverage metrics within the Trust's previously disclosed target range. Upon closing of the Acquisition, Lime Ridge Mall will become Primaris' 4th largest shopping centre measured by all store sales volume. Primaris anticipates the below proforma metrics: Based on the REIT's 3.0% to 4.0% 2025 Same Property Cash NOI** growth guidance provided in the MD&A, and assuming a June 17, 2025 closing, Cash NOI** for the 2025 fiscal year is anticipated to be in the range of $331 million to $337 million (Cash NOI** for the year ended December 31, 2024 was $280 million); On a net basis, the Acquisition is expected to be modestly accretive to FFO** per average diluted unit; and Average Net Debt** to Adjusted EBITDA** is anticipated to remain within target range of 4.0x to 6.0x. 1 Commercial retail unit ("CRU") tenants that lease units up to 15,000 square feet and include food court and kiosk tenants. For the rolling twelve-month period ended February 28, 2025 for Primaris and for the rolling twelve-month period ended December 31, 2024 for Lime Ridge Mall. Supplementary financial measure, see "Use of Operating Metrics" below. 2 For the rolling twelve-month period ended February 28, 2025 for Primaris and for the rolling twelve-month period ended December 31, 2024 for Lime Ridge Mall. 3 As at March 31, 2025. Please see the presentation titled "Lime Ridge Mall" on the investor relations page of Primaris' website for additional details regarding the Acquisition. Potential NOI** Growth Similar to the Trust's existing portfolio, the Acquisition offers potential NOI** growth over the next few years, as operating and financial performance normalizes, and as Primaris' full-service management platform integrates and operates the properties. Opportunities to increase operating income include: Redemise and lease approximately 266,200 square feet of former anchor box space to strong covenant, high-quality national retailers; Lease approximately 53,000 square feet of temporary tenanted or vacant CRU space to strong tenants at market rents; and Leverage Primaris' scalable management platform to deploy its cost management strategy. Lime Ridge Mall Highlights Leading regional enclosed shopping centre in Canada's ninth largest population centre, Hamilton, Ontario; Located along the Lincoln M. Alexander Parkway and in proximity to the QEW and Highway 403; New Lime Ridge Mall transit terminal to commence redesign and expansion in 2025; 793,000 square foot mall located on 65 acres of land, for an approximate 30% site coverage; $841 per square foot same store sales productivity and total CRU sales volume of $251 million for the twelve month period ending December 31, 2024; 58.5% long-term in-place occupancy, 61.3% in-place occupancy, and 62.3% committed occupancy; Weighted average lease term of 5 years; Approximately $20 million in capital improvements completed since 2015 including upgrades to roofing, electrical systems, HVAC, elevators, parking lot paving and several tenant units; BOMA BEST Platinum Certified; Large format tenants include Sport Chek, H&M, Urban Planet; and Notable CRU tenants include Aritzia, Sephora, Lululemon, Shoppers, Browns, and JD Sports. Secondary Offering Primaris also announced today that it and an affiliate of the Vendor (the "Selling Unitholder") have entered into an agreement with a syndicate of underwriters bookrun by RBC Capital Markets and TD Securities Inc., and co-led by Desjardins Capital Markets (the "Underwriters"), pursuant to which the Underwriters will purchase, on a bought-deal basis, an aggregate of 8,457,944 REIT Units from the Selling Unitholder at a price of $14.70 per REIT Unit (the "Offering") for gross proceeds of approximately $124.3 million. Following the Offering, the Selling Unitholder will not hold any REIT Units. The Offering is expected to close on or about June 20, 2025, and is subject to customary closing conditions. The closing of the Offering is conditional on the closing of the Acquisition. The REIT Units being offered through the Offering are all of the REIT Units to be issued in connection with the Acquisition, including the REIT Units to be issued on the exchange of the Preferred LP Units by the Selling Unitholder. The REIT Units will be offered in all provinces and territories of Canada pursuant to Primaris' base shelf prospectus, dated August 6, 2024, as supplemented by a prospectus supplement to be filed with the Canadian securities regulators in all of the provinces and territories of Canada. Access to the shelf prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents is provided in accordance with securities legislation relating to procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment to the documents. The base shelf prospectus is accessible, and the shelf prospectus supplement will be accessible within two business days, through SEDAR+ at An electronic or paper copy of the shelf prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from: RBC Dominion Securities Inc., 180 Wellington Street West, 8th Floor, Toronto, Ontario M5J 0C2, Attention: Distribution Centre, by e-mail at [email protected]; or TD Securities Inc. at 1625 Tech Avenue, Mississauga, Ontario, L4W 5P5, Attention: Symcor, NPM, or by telephone at (289) 360-2009 or by email at [email protected]; by providing the contact with an email address or address, as applicable. The base shelf prospectus and prospectus supplement will contain important detailed information about the Trust and the Offering. Prospective investors should read the shelf prospectus and prospectus supplement (when filed) and the other documents the Trust has filed on SEDAR+ before making an investment decision. The REIT Units have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities law and may not be offered or sold in the United States and, accordingly, may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the REIT Units in any jurisdiction in which such offer, solicitation or sale would be unlawful. About Primaris Real Estate Investment Trust Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.0 million square feet, valued at approximately $4.9 billion at Primaris' share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape. Forward-Looking Statements and Financial Outlook Certain statements included in this news release constitute ''forward-looking information'' or "forward-looking statements" within the meaning of applicable securities laws. The words "will", "expects", "plans", "estimates", "intends" and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements made or implied in this news release include but are not limited to statements regarding: Primaris' future results, performance, prospects and opportunities, including with respect to the closing, costs and benefits of the proposed Acquisition, the timing and completion of the Acquisition, the strategy, plans and the intentions of management with respect to the Acquisition, management's expectations regarding the Trust's leverage and portfolio quality, management's expectations regarding the potential for growth from the continued normalization of operating and financial performance and the opportunities to increase operating income at Lime Ridge Mall, the Offering, the date of closing of the Offering, the exchange by the Selling Unitholder of its Preferred LP Units for REIT Units and the enhancement to the float and liquidity of Primaris' units. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on estimates and assumptions that are inherently subject to risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, actual results, performance or achievements of Primaris may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include: the risk of the Acquisition not completing on the terms as agreed and on the expected timeline, if at all, including satisfaction of all applicable closing conditions to the Acquisition which will need to be met or waived; the failure of the Acquisition to be as successful to the REIT as described herein, including the failure of the Acquisition to be accretive to the REIT's FFO** per average diluted unit and the failure of the REIT to maintain its capital structure and financial leverage metrics within its previously disclosed target range and to realize on the opportunities for growth with respect to the Acquisition; and those set out in the Trust's management's discussion and analysis for the year ended December 31, 2024 (the "Annual MD&A"), which is available on SEDAR+, and in Primaris' other materials filed with the Canadian securities regulatory authorities from time to time. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, Primaris undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. Readers are cautioned that there is a significant risk that actual results will vary from the financial outlook statements provided in this news release and that such variations may be material. Certain forward-looking information included in this news release may also be considered "financial outlook" for purposes of applicable securities laws (collectively, "FOFI"). FOFI about the Trust's prospective results of operations is subject to the same assumptions, risk factors, limitations and qualifications as set out above and in the Annual MD&A, and in Primaris' other materials filed with the Canadian securities regulatory authorities from time to time. The Trust and management believe that such FOFI have been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. FOFI contained in this news release was made as of the date of this news release and was provided for the purpose of providing further information about the Trust's prospective results of operations. Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein. Readers are also urged to examine the Trust's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of Primaris to differ materially from the forward-looking statements contained in this news release. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as the date of this news release and Primaris, except as required by applicable securities laws, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances. Non-GAAP Measures The Trust's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). However, Primaris also uses a number of measures which do not have a standardized meaning prescribed under generally accepted accounting principles ("GAAP") in accordance with IFRS. These non-GAAP measures, which are denoted in this news release by the suffix "**" include non-GAAP financial measures and non-GAAP ratios, each as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). None of these non-GAAP measures should be construed as an alternative to financial measures calculated in accordance with GAAP. Furthermore, these non-GAAP measures may not be comparable to similar measures presented by other real estate entities and should not be construed as an alternative to financial measures determined in accordance with IFRS. Additional information regarding these non-GAAP measures, including definitions and reconciliations to the most directly comparable GAAP figure, where applicable, can be found in the MD&A which is available on the Trust's profile on SEDAR+ at See Section 12, "Non-GAAP Measures" of the MD&A for the descriptions of each non-GAAP measure used in this news release and to find a quantitative reconciliation to the most directly comparable GAAP measure applicable; Section 12, "Non-GAAP Measures" and the related quantitative reconciliations are incorporated by reference herein. Use of Operating Metrics Primaris uses certain operating metrics to monitor and measure the operational performance of its portfolio. Operating metrics in this news release include in-place occupancy, committed occupancy, annual mall traffic, weighted average lease term, all store sales volume, CRU sales volume and same store sales productivity. Certain of these operating metrics, including all store sales volume, CRU sales volume and same store sales productivity, may constitute supplementary financial measures as defined in NI 52-112. These supplementary measures are not derived from directly comparable measures contained in the Trust's financial statements but may be used by management and disclosed on a periodic basis to depict the historical or future expected financial performance, financial position or cash flow of the Trust. For an explanation of the composition of all store sales volume, CRU sales volume and same store sales productivity, see "Section 8, "Operational Performance" – "Tenant Sales" in the MD&A, which is available on SEDAR+ at and which section is incorporated by reference herein.
