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IFF Declares Dividend for First Quarter 2025

IFF Declares Dividend for First Quarter 2025

NEW YORK–(BUSINESS WIRE)–
IFF (NYSE: IFF) announced that its Board of Directors has declared a regular quarterly cash dividend of $0.40 per share of its common stock, payable on April 11, 2025 to shareholders of record as of March 21, 2025.

Welcome to IFF

At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience.Learn more at iff.com, LinkedIn, Instagram and Facebook.

© 2025 by International Flavors & Fragrances Inc. IFF is a Registered Trademark. All Rights Reserved.

Media Relations:

Paulina Heinkel

332.877.5339

[email protected]

Investor Relations:

Michael Bender

212.708.7263

[email protected]

KEYWORDS: Europe United States North America New York

INDUSTRY KEYWORDS: Cosmetics Retail Chemicals/Plastics Home Goods Manufacturing Specialty Food/Beverage

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LivePerson Announces Fourth Quarter 2024 Financial Results

PR Newswire

— Total Revenue of $
73.2M, above the high-end of our guidance range —

— Adjusted EBITD
A above the high-end of our guidance range –


NEW YORK
, March 5, 2025 /PRNewswire/ — LivePerson, Inc. (NASDAQ: LPSN) (“LivePerson”, the “Company”, “we” or “us”), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced financial results for the fourth quarter ended December 31, 2024.

Fourth Quarter Highlights

Total revenue was $73.2 million for the fourth quarter of 2024, a decrease of 23.3% as compared to the same period last year driven by customer cancellations and downsells.

LivePerson signed 39 deals in total for the fourth quarter, consisting of 30 existing and 9 new customers. Trailing-twelve-months average revenue per enterprise and mid-market customer (ARPC) increased 2.5% for the fourth quarter to $625,000, up from approximately $610,000 for the comparable prior-year period. ARPC is calculated using recurring revenue which is consistent with the revenue base for calculating Net Revenue Retention.

“2024 was a transformative year for LivePerson, marked by strong progress against our strategy.  We have reinvigorated our go-to-market capabilities and continued to innovate on our product offerings, resulting in three consecutive quarters of bookings increases, strong adoption of our Generative AI features and the launch of our voice and digital strategy.  While our transformation is ongoing, I remain confident that the strong foundation we have built, combined with continued execution, position us for sustainable growth and profitability in the future.” said CEO John Sabino.

“We are seeing increasing demand for AI agents and AI orchestration, traction for LivePerson as a leading solution for large enterprises in regulated industries, and growing interest from partners as three key themes influencing our results and validating our strategy.  With three consecutive quarters of sequential bookings growth and improvement in other key commercial metrics, we expect to see continued improvement in the business in 2025,” said CFO and COO John Collins.

Customer Expansion

During the fourth quarter, the Company signed 39 total deals for the quarter, including 30 expansion & renewals and 9 new logo deals. Expansions & renewals included:

  • A U.S.- based financial services company;
  • A British retail bank; and
  • A leading British broadcast and communications company.

New logos included:

  • A multinational consulting company to deploy Generative AI for key enterprise clients;
  • A leading African insurance company, through a partnership; and
  • A leading luxury fashion brand, through a partnership.

Net Loss and Adjusted Operating Income (Loss)

Net loss for the fourth quarter of 2024 was $112.1 million or $1.27 per share, as compared to a net loss of $40.5 million or $0.48 per share for the fourth quarter of 2023.  Adjusted operating income, a non-GAAP financial metric, for the fourth quarter of 2024 was $1.0 million, as compared to a $4.0 million adjusted operating loss for the fourth quarter of 2023. Adjusted operating income (loss) excludes provision for income taxes, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net.

A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading “Non-GAAP Financial Measures.”

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP financial measure, for the fourth quarter of 2024 was $8.1 million as compared to an adjusted EBITDA of $3.7 million for the fourth quarter of 2023. Adjusted EBITDA excludes provision for income taxes, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net.

A reconciliation of non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading “Non-GAAP Financial Measures.”

Cash and Cash Equivalents

The Company’s cash balance was $183.2 million at December 31, 2024, as compared to $210.8 million at December 31, 2023.

Financial Expectations

The following forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially from these forward-looking measures. The Company does not present a quantitative reconciliation of the forward-looking non-GAAP financial measures, adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP financial measures (or otherwise present such forward-looking GAAP measures) because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized. In particular, these non-GAAP financial measures exclude certain items, including depreciation, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, provision for income taxes, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net,  which depend on future events that the Company is unable to predict. Depending on the size of these items, they could have a significant impact on the Company’s GAAP financial results.

For the first quarter of 2025, we expect total revenue to range from $63 million – $65 million or (26)% to (24)% year over year. We expect recurring revenue, formerly referred to as B2B Core recurring revenue, to represent 94% of total revenue. For the first quarter of 2025, we expect adjusted EBITDA to range from $(3) million to $(1) million, or a margin of (4.8)% to (1.5)%.

For the full year 2025, we expect total revenue to range from $240 million – $255 million or (23)% to (18)% year over year. In addition, we expect recurring revenue to represent 93% of total revenue. For the full year 2025, we expect adjusted EBITDA to range from $(14) million to $0 million, or a margin of (5.8)% to 0.0%.


First Quarter 2025


Guidance

Revenue (in millions)

$63 – $65

Revenue growth (year-over-year)

(26)% – (24)%

Adjusted EBITDA (in millions)

$(3) – $(1)

Adjusted EBITDA margin (%)

(4.8)% – (1.5)%


Full Year 2025


Guidance

Revenue (in millions)

$240 – $255

Revenue growth (year-over-year)

(23)% – (18)%

Adjusted EBITDA (in millions)

$(14) – $0

Adjusted EBITDA margin (%)

(5.8)% – 0.0%

Disaggregated Revenue

Included in the accompanying financial results are revenues disaggregated by revenue source, as follows:


Three Months Ended
December 31,


Year Ended
December 31,


2024


2023


2024


2023

(In thousands)

Revenue:

Hosted services (1)

$           60,216

$           78,600

$         261,682

$       332,971

Professional services

12,990

16,868

50,792

69,012

Total revenue

$           73,206

$           95,468

$         312,474

$       401,983

(1) On March 20, 2023, the Company completed the sale of Kasamba and therefore ceased recognizing revenue related to Kasamba effective on the transaction close date. Further, this sale eliminated the entire Consumer segment, as a result of which revenue is presented within a single consolidated segment. Hosted services included $7.1 million for the year ended December 31, 2023, relating to Kasamba.

Stock-Based Compensation

Included in the accompanying financial results are expenses related to stock-based compensation, as follows:


Three Months Ended


December 31,


Year Ended


December 31,


2024


2023


2024


2023

(In thousands)

Cost of revenue

$                 198

$                 577

$           1,080

$              1,456

Sales and marketing

903

2,925

7,394

10,354

General and administrative

948

364

6,789

(5,706)

Product development

1,107

3,508

6,726

5,750

  Total

$              3,156

$              7,374

$         21,989

$           11,854

Amortization of Purchased Intangibles and Finance Leases 

Included in the accompanying financial results are expenses related to the amortization of purchased intangibles and finance leases, as follows:


Three Months Ended


December 31,


Year Ended


December 31,


2024


2023


2024


2023

(In thousands)

Cost of revenue

$                   20

$              4,966

$            9,217

$           18,691

Amortization of purchased intangibles

357

861

2,745

3,505

  Total

$                 377

$              5,827

$         11,962

$           22,196

Supplemental Fourth Quarter 2024 Presentation

LivePerson will post a presentation providing supplemental information for the fourth quarter of 2024 on the investor relations section of the Company’s web site at www.ir.liveperson.com. 

Earnings Teleconference Information

The Company will discuss its fourth quarter of 2024 financial results during a teleconference today, March 5, 2025, at 5:00 PM ET. To participate via telephone, callers should dial in five to ten minutes prior to the 5:00 p.m. Eastern start time; domestic callers (U.S. and Canada) should dial 1-877-407-0784, while international callers should dial 1-201-689-8560, and both should reference the conference ID “13750778.”

The conference call will also be simulcast live on the Internet and can be accessed by logging onto the investor relations section of the Company’s web site at www.ir.liveperson.com. 

If you are unable to participate in the live call, the teleconference will be available for replay approximately two hours after the call until March 19, 2025. To access the replay, please call 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international). Please reference the conference ID “13750778.” A replay will also be available on the investor relations section of the Company’s web site at www.ir.liveperson.com. 

About LivePerson, Inc.

LivePerson (NASDAQ: LPSN) is a leader in digital customer conversation. The world’s leading brands — including HSBC, Virgin Media and Burberry — use our award-winning LivePerson platform to connect with millions of consumers. We power nearly a billion conversational interactions every month, providing uniquely rich data analytics and safety tools to unlock the power of conversational AI for better business outcomes. Fast Company named LivePerson the #1 Most Innovative AI Company in the world. Learn more at liveperson.com.

Non-GAAP Financial Measures

Investors are cautioned that the following financial measures used in this press release and on our earnings call are “non-GAAP financial measures”: (i) adjusted EBITDA, or net loss before depreciation, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, provision for income taxes, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net; (ii) adjusted EBITDA margin, or net loss before depreciation, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, provision for income taxes, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net, divided by revenue; (iii) adjusted operating income (loss), or net loss before provision for income taxes, other litigation, consulting and other employee costs, restructuring costs, amortization of purchased intangibles and finance leases, impairment of goodwill, impairment of intangibles and other assets, stock-based compensation expense, leadership transition costs, contingent earn out adjustments, working capital adjustment related to the Kasamba divestiture, IT transformation costs, acquisition and divestiture costs, gain on debt extinguishment, change in fair value of warrants, interest expense, interest income, loss (gain) on divestiture, and other expense (income), net, and (iv) free cash flow, or net cash used in operating activities less purchases of property and equipment, including capitalized software.

Non-GAAP financial information should not be construed as an alternative to any other measures of performance determined in accordance with GAAP, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities as there may be significant factors or trends that it fails to address. We present non-GAAP financial information because we believe that it is helpful to some investors as one measure of our operations.

Forward-Looking Statements

Statements in this press release and on our earnings call regarding LivePerson that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including but not limited to financial guidance, changes to our capital structure, our ability to execute on our transformation strategy, the effects of our cost-reduction efforts and the impact of our new hires, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. With respect to our financial guidance, we note that it is routine for our internal projections and expectations to change as the quarter and year progress, and therefore it should be clearly understood that the internal projections and beliefs upon which we base our expectations may change. Although these expectations may change, we are under no obligation to inform you if they do. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: strain on our personnel resources and infrastructure from supporting our customer base; our ability to retain existing customers and cause them to purchase additional services and to attract new customers; our ability to retain key personnel, attract new personnel and to manage staff attrition; our ability to successfully integrate acquisitions; our ability to refinance our substantial indebtedness before it becomes due or to secure necessary additional financing on commercially reasonable terms, or at all; lengthy sales cycles; delays in our implementation cycles; payment-related risks; potential fluctuations in our quarterly revenue and operating results; limitations on the effectiveness of our controls; non-payment or late payment of amounts due to us from a significant number of customers; volatility in the capital markets; recognition of revenue from subscriptions; customer retention and engagement; our ability to develop and maintain successful relationships with partners, service partners, social media and other third-party consumer messaging platforms and endpoints; our ability to effectively operate on mobile devices; the highly competitive markets in which we operate; general economic conditions; failures or security breaches in our services, those of our third-party service providers, or in the websites of our customers; regulation or possible misappropriation of personal information belonging to our customers’ Internet users; US and international laws and regulations regarding privacy data protection and AI and increased public scrutiny of privacy, security and AI issues that could result in increased government regulation and other legal obligations; ongoing litigation and legal matters; new regulatory or other legal requirements that could materially impact our business; governmental export controls and economic sanctions; industry-specific regulation and unfavorable industry-specific laws, regulations or interpretive positions; future regulation of the Internet or mobile devices; technology-related defects that could disrupt the LivePerson services; our ability to protect our intellectual property rights or potential infringement of the intellectual property rights of third parties; the use of AI in our product offerings or by our vendors; the presence of, and difficulty in correcting, errors, failures or “bugs” in our products; our ability to license necessary third-party software for use in our products and services, and our ability to successfully integrate third- party software; potential adverse impact due to foreign currency and cryptocurrency exchange rate fluctuations; additional regulatory requirements, tax liabilities, currency exchange rate fluctuations and other risks if and as we expand; risks related to our operations in Israel; potential failure to meeting service level commitments to certain customers; legal liability and/or negative publicity for the services provided to consumers via our technology platforms; technological or other defects that could disrupt or negatively impact our services; our ability to maintain our reputation; changes in accounting principles generally accepted in the United States; natural catastrophic events and interruption to our business by man-made problems; potential limitations on our ability to use net operating losses to offset future taxable income; and risks related to our common stock being traded on more than one securities exchange; and other factors described in the “Risk Factors” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 4, 2024 (as amended on April 29, 2024) and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, filed with the SEC on November 8, 2024. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking statements. Readers are referred to the Company’s reports and documents filed from time to time by us with the Securities and Exchange Commission for a discussion of these and other important factors that could cause actual results to differ from those discussed in forward-looking statements.


Three Months Ended


December 31,


Year Ended


December 31,


2024


2023


2024


2023

Revenue

$          73,206

$          95,468

$      312,474

$        401,983

Costs, expenses and other:

Cost of revenue

18,182

39,818

93,404

142,823

Sales and marketing

21,027

32,365

100,475

125,677

General and administrative

16,111

21,554

80,008

91,619

Product development

22,032

29,859

99,917

124,792

Impairment of goodwill

56,924

—

60,551

11,895

Impairment of intangibles and other assets

36,304

5,015

46,872

7,974

Restructuring costs

3,263

6,665

11,139

22,664

Loss (gain) on divestiture

—

—

558

(17,591)

Amortization of purchased intangible assets

357

861

2,745

3,505

Total costs, expenses and other

174,200

136,137

495,669

513,358

Loss from operations

(100,994)

(40,669)

(183,195)

(111,375)

Other (expense) income, net:

Interest expense

(6,286)

(793)

(14,486)

(4,882)

Interest income

1,312

2,457

5,860

9,551

Gain on debt extinguishment

—

—

73,083

7,200

Other (expense) income, net

(5,554)

1,043

(12,800)

3,234

Total other (expense) income, net

(10,528)

2,707

51,657

15,103

Loss before provision for income taxes

(111,522)

(37,962)

(131,538)

(96,272)

Provision for income taxes

606

2,563

2,735

4,163

Net loss

$      (112,128)

$        (40,525)

$    (134,273)

$      (100,435)

Net loss per share of common stock:

Basic

$             (1.27)

$             (0.48)

$          (1.51)

$             (1.28)

Diluted

$             (1.27)

$             (0.48)

$          (1.51)

$             (1.28)

Weighted-average shares used to compute net loss per share:

Basic

88,541,522

83,610,995

88,715,161

78,593,274

Diluted

88,541,522

83,610,995

88,715,161

78,593,274

 


Year Ended December 31,


2024


2023


OPERATING ACTIVITIES:

Net loss

$    (134,273)

$    (100,435)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense

21,989

11,854

Depreciation

30,310

32,557

Reduction of operating lease right-of-use assets

4,059

—

Amortization of purchased intangible assets and finance leases

11,962

22,196

Amortization of debt issuance costs and accretion of debt discount

4,513

4,043

Impairment of goodwill

60,551

11,895

Impairment of intangibles and other assets

46,872

7,974

Change in fair value of warrants

12,232

—

Change in fair value of contingent consideration

—

4,629

Gain on debt extinguishment

(73,083)

(7,200)

Allowance for credit losses

14,959

3,319

Loss (gain) on divestiture

558

(17,591)

Deferred income taxes

623

1,046

Equity loss in joint venture

—

2,264

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

37,548

1,457

Prepaid expenses and other current assets

7,300

(3,411)

Contract acquisition costs

3,331

4,992

Other assets

652

1,361

Accounts payable, accrued expenses and other current liabilities

(38,708)

10,773

Deferred revenue

(23,058)

(3,169)

Operating lease liabilities

(4,868)

(523)

Other liabilities

1,401

(7,796)

Net cash used in operating activities

(15,130)

(19,765)


INVESTING ACTIVITIES:

Purchases of property and equipment, including capitalized software

(25,142)

(28,657)

Proceeds from divestiture

—

13,819

Purchases of intangible assets

(3,074)

(4,004)

Net cash used in investing activities

(28,216)

(18,842)


FINANCING ACTIVITIES:

Proceeds from issuance of 2029 convertible senior notes

100,000

—

Payment for repurchase of 2024 convertible senior notes

(72,492)

(149,702)

Payment for repurchase of 2026 convertible senior notes

(4,901)

—

Payment of debt issuance costs

(7,584)

—

Principal payments for financing leases

(401)

(3,330)

Proceeds from issuance of common stock in connection with the exercise of options and ESPP

350

1,890

Net cash provided by (used in) financing activities

14,972

(151,142)

Effect of foreign exchange rate changes on cash and cash equivalents

(1,314)

465

Net decrease in cash, cash equivalents, and restricted cash

(29,688)

(189,284)

Cash classified within current assets held for sale

—

10,011

Cash, cash equivalents, and restricted cash – beginning of year

212,925

392,198

Cash, cash equivalents, and restricted cash – end of year

$      183,237

$      212,925

 


Three Months Ended

December 31,


Year Ended


December 31,


2024


2023


2024


2023


Reconciliation of Adjusted EBITDA:


GAAP net loss


$    (112,128)


$      (40,525)


$    (134,273)


$    (100,435)

Add/(less):

Depreciation

7,145

7,705

30,310

32,557

Other litigation, consulting and other employee costs (1)

2,029

5,553

16,976

32,266

Restructuring costs (2)

3,263

6,665

11,139

22,664

Amortization of purchased intangibles and finance leases

377

5,827

11,962

22,196

Impairment of goodwill

56,924

—

60,551

11,895

Impairment of intangibles and other assets

36,304

5,015

46,872

7,974

Stock-based compensation expense (3)

3,156

8,525

21,989

10,187

Leadership transition costs

(195)

1,418

2,998

8,384

Contingent earn out adjustments

—

(812)

—

4,629

Provision for income taxes

606

2,563

2,735

4,163

Working capital adjustment – Kasamba

—

—

1,776

—

IT transformation costs (4)

110

3,576

1,205

3,576

Acquisition and divestiture costs

—

96

920

3,131

Gain on debt extinguishment

—

—

(73,083)

—

(7,200)

Change in fair value of warrants

4,442

—

12,232

—

—

Interest expense

6,286

793

14,486

4,882

Interest income

(1,312)

(2,457)

(5,860)

(9,551)

Loss (gain) on divestiture

—

—

558

(17,591)

Other expense (income), net (5)

1,110

(231)

566

(7,863)


Adjusted EBITDA


$           8,117


$           3,711


$        24,059


$        25,864


Reconciliation of Adjusted Operating Income (Loss):


Loss before provision for income taxes


$    (111,522)


$      (37,962)


$    (131,538)


$      (96,272)

Add/(less):

Other litigation, consulting and other employee costs (1)

2,029

5,553

16,976

32,266

Restructuring costs (2)

3,263

6,665

11,139

22,664

Amortization of purchased intangibles and finance leases

377

5,827

11,962

22,196

Impairment of goodwill

56,924

—

60,551

11,895

Impairment of intangibles and other assets

36,304

5,015

46,872

7,974

Stock-based compensation expense (3)

3,156

8,525

21,989

10,187

Leadership transition costs

(195)

1,418

2,998

8,384

Contingent earn out adjustments

—

(812)

—

4,629

Working capital adjustment – Kasamba

—

—

1,776

—

IT transformation costs (4)

110

3,576

1,205

3,576

Acquisition and divestiture costs

—

96

920

3,131

Gain on debt extinguishment

—

—

(73,083)

(7,200)

Change in fair value of warrants

4,442

—

12,232

—

Interest expense

6,286

793

14,486

4,882

Interest income

(1,312)

(2,457)

(5,860)

(9,551)

Loss (gain) on divestiture

—

—

558

(17,591)

Other expense (income), net (5)

1,110

(231)

566

(7,863)


Adjusted operating income (loss)


$              972


$         (3,994)


$         (6,251)


$         (6,693)

——————————————

(1)

Includes litigation costs of $0.8 million and consulting fees and related costs of $1.2 for the three months ended December 31, 2024. Includes litigation costs of $13.8 million, and consulting fee and related costs of $3.2 million for the year ended December 31, 2024. Includes litigation costs of $4.4 million and consulting fees and related costs of $1.2 million for the three months ended December 31, 2023. Includes litigation costs of $28.0 million and consulting fees and related costs of $4.4 million for the year ended December 31, 2023.

(2)

Includes severance and other compensation related costs of $3.9 million, and reversal of IT contract termination costs of $0.6 million for the three months ended December 31, 2024. Includes reversal of IT contract termination costs of $1.2 million and severance and other compensation related costs of $12.3 million for the year ended December 31, 2024. Includes IT contract termination costs of $5.7 million and severance costs and other compensation related costs of $1.0 million for the three months ended December 31, 2023. Includes severance costs and other compensation related costs of $16.9 million and IT contract termination costs of $5.8 million for the year ended December 31, 2023.

(3)

Excludes $1.7 million of accelerated stock-based compensation for the three months ended and year ended December 31, 2023 in connection with the CEO departure, as these costs are presented in leadership transition costs.

(4)

Includes IT infrastructure realignment costs related to consolidating and migrating data centers to the cloud.

(5)

Includes $10.0 million of other income related to a litigation settlement and losses related to the Company’s equity method investment during the year ended December 31, 2023. The remaining amount of other expense (income), net fluctuation is attributable to currency rate fluctuations for the three months and year ended December 31, 2023.

 


Three Months Ended


December 31,


Year Ended


December 31,


2024


2023


2024


2023


Calculation of Free Cash Flow:

Net cash (used in) provided by operating activities

$           (3,115)

$             4,537

$        (15,130)

$       (19,765)

Purchases of property and equipment, including capitalized software

(3,638)

(6,220)

(25,142)

(28,657)

Total Free Cash Flow

$           (6,753)

$           (1,683)

$        (40,272)

$       (48,422)

 


December 31,

2024


December 31,

2023


ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$         183,237

$         210,782

Restricted cash

—

2,143

Accounts receivable, net

28,737

81,802

Prepaid expenses and other current assets

19,250

26,981

Total current assets

231,224

321,708

Operating lease right-of-use assets

48

4,135

Property and equipment, net

100,557

119,325

Contract acquisition costs, net

33,559

37,354

Intangible assets, net

15,070

61,625

Goodwill, net

222,554

285,631

Deferred tax assets, net

4,411

4,527

Other assets

355

1,208


Total assets


$         607,778


$         835,513


LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$           15,378

$           13,555

Accrued expenses and other current liabilities

66,530

97,024

Deferred revenue

57,980

81,858

Convertible senior notes

—

72,393

Operating lease liabilities

52

2,719

Total current liabilities

139,940

267,549

Convertible senior note, net of current portion

527,070

511,565

Operating lease liabilities, net of current portion

—

2,173

Deferred tax liabilities

3,542

2,930

Other liabilities

4,542

3,158

Total liabilities

675,094

787,375

Commitments and contingencies

Total stockholders’ equity

(67,316)

48,138


Total liabilities and stockholders’ equity


$         607,778


$         835,513

 

Investor Relations contact
[email protected]

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/liveperson-announces-fourth-quarter-2024-financial-results-302393739.html

SOURCE LivePerson

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GO Investors Have Opportunity to Lead Grocery Outlet Holding Corp. Securities Fraud Lawsuit

PR Newswire


NEW YORK
, March 5, 2025 /PRNewswire/ —

Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Grocery Outlet Holding Corp. (NASDAQ: GO) between November 7, 2023 and May 7, 2024, both dates inclusive (the “Class Period”), of the important March 31, 2025 lead plaintiff deadline.

So what: If you purchased Grocery Outlet securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Grocery Outlet class action, go to https://rosenlegal.com/submit-form/?case_id=34369 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than March 31, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

Details of the case: According to the lawsuit, during the Class Period, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Grocery Outlet’s transition to new and upgraded systems; notably, that Grocery Outlet was either not truly equipped to timely and effectively execute on the transition or otherwise failed to disclose the potential for significant setbacks to Grocery Outlet’s profitability as a result of delays and implementation issues which impacted Grocery Outlet’s visibility and performance. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Grocery Outlet class action, go to https://rosenlegal.com/submit-form/?case_id=34369 https://rosenlegal.com/submit-form/?case_id=28116call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:
      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      www.rosenlegal.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/go-investors-have-opportunity-to-lead-grocery-outlet-holding-corp-securities-fraud-lawsuit-302393595.html

SOURCE THE ROSEN LAW FIRM, P. A.

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Puma Biotechnology to Present at Barclays Annual Global Healthcare Conference

Puma Biotechnology to Present at Barclays Annual Global Healthcare Conference

LOS ANGELES–(BUSINESS WIRE)–
Puma Biotechnology, Inc. (NASDAQ: PBYI), a biopharmaceutical company, announced that Alan H. Auerbach, Chairman, Chief Executive Officer, President and Founder, will provide an overview of Puma at 2:00 p.m. ET on Tuesday, March 11, at Barclays 27th Annual Global Healthcare Conference. The conference will be held at the Loews Miami Beach.

A live webcast of the presentation will be available on the Puma Biotechnology website at https://www.pumabiotechnology.com. The presentation will be archived on the website and available for replay for 30 days.

About Puma Biotechnology

Puma Biotechnology, Inc. is a biopharmaceutical company with a focus on the development and commercialization of innovative products to enhance cancer care. Puma in-licensed the global development and commercialization rights to PB272 (neratinib, oral), in 2011. Neratinib, oral was approved by the U.S. Food and Drug Administration in 2017 for the extended adjuvant treatment of adult patients with early stage HER2-overexpressed/amplified breast cancer, following adjuvant trastuzumab-based therapy, and is marketed in the United States as NERLYNX® (neratinib) tablets. In February 2020, NERLYNX was also approved by the FDA in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2-based regimens in the metastatic setting. NERLYNX was granted marketing authorization by the European Commission in 2018 for the extended adjuvant treatment of adult patients with early stage hormone receptor-positive HER2-overexpressed/amplified breast cancer and who are less than one year from completion of prior adjuvant trastuzumab-based therapy. NERLYNX® is a registered trademark of Puma Biotechnology, Inc.

In September 2022, Puma entered into an exclusive license agreement for the development and commercialization of the anti-cancer drug alisertib, a selective, small molecule, orally administered inhibitor of aurora kinase A. Initially, Puma intends to focus the development of alisertib on the treatment of small cell lung cancer and breast cancer. In February 2024, Puma initiated ALISCA™-Lung1, a Phase II clinical trial of alisertib monotherapy for the treatment of patients with extensive-stage small cell lung cancer. In November 2024, Puma initiated ALISCA™-Breast1, a Phase II clinical trial of alisertib in combination with endocrine therapy for the treatment of patients with HER2-negative, HR-positive metastatic breast cancer.

Further information about Puma Biotechnology may be found at https://www.pumabiotechnology.com.

Alan H. Auerbach or Mariann Ohanesian, Puma Biotechnology, Inc., +1 424 248 6500

[email protected]

[email protected]

David Schull or Olipriya Das, Russo Partners, +1 212 845 4200

[email protected]

[email protected]

KEYWORDS: United States North America California Florida

INDUSTRY KEYWORDS: Research FDA Clinical Trials Practice Management Biotechnology Health Pharmaceutical Science Oncology

MEDIA:

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Virtus Convertible & Income Fund Announces Quarterly Distribution: 5.625% Series A Cumulative Preferred Shares

Virtus Convertible & Income Fund Announces Quarterly Distribution: 5.625% Series A Cumulative Preferred Shares

HARTFORD, Conn.–(BUSINESS WIRE)–Virtus Convertible & Income Fund (NYSE: NCV) announced today that it has declared a $0.3515625 per share cash distribution payable on March 31, 2025 to Series A cumulative preferred shareholders of record on March 17, 2025.

The Series A Cumulative Preferred Shares, which trade on the New York Stock Exchange under the symbol NCV PR A, are rated “A” by Fitch Ratings and have an annual dividend rate of $1.40625 per share. The 4,000,000 Series A Cumulative Preferred Shares were issued September 20, 2018 at $25.00 per share and pay distributions quarterly. This distribution represents the accrual period from January 1, 2025 through March 31, 2025. The Series A Cumulative Preferred Shares are now callable at any time at the liquidation value of $25.00 per share plus accrued dividends.

About the Fund

Virtus Convertible & Income Fund has an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners, Inc., is the investment adviser to the fund and Voya Investment Management is its subadviser.

For more information on this fund, contact shareholder services at (866) 270-7788, by email at [email protected], or through the Closed-End Funds section on the web at virtus.com.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the fund’s investment objective and risks, please see the fund’s annual report. A copy of the fund’s most recent annual report may be obtained free of charge by contacting “Shareholder Services” as set forth at the end of this press release.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

For Further Information:

Shareholder Services

(866) 270-7788

[email protected]

KEYWORDS: United States North America Connecticut

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

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ARS Pharmaceuticals Announces FDA Approval of neffy® 1 mg (epinephrine nasal spray) for Type I Allergic Reactions, Including Anaphylaxis, in Pediatric Patients Weighing 15 to < 30 Kilograms

neffy 1 mg is the first and only needle-free epinephrine treatment approved for younger children

SAN DIEGO, March 05, 2025 (GLOBE NEWSWIRE) — ARS Pharmaceuticals, Inc. (Nasdaq: SPRY), a biopharmaceutical company dedicated to empowering at-risk patients and caregivers to better protect themselves from allergic reactions that could lead to anaphylaxis, announced today that the U.S. Food and Drug Administration (FDA) has approved neffy® 1 mg (epinephrine nasal spray) for the treatment of Type I Allergic Reactions, including anaphylaxis, in children who are aged 4 years and older and weigh 15 to < 30 kilograms (33 to < 66 lb.). This approval represents the first significant innovation in the delivery of epinephrine for this patient population in more than 35 years.

In the general population, approximately one in 13 children have severe food allergies, and more than 40 percent have experienced severe reactions.1 Despite the clear link between early epinephrine use and better outcomes, research shows that approximately 40 percent of patients delay treatment2, and 56 percent of caregivers fear using needle-based auto-injectors on their child3. neffy eliminates needles, delivering a precise epinephrine dose via a simple nasal spray, almost instantly, with no nasal hold time required.

“Today’s FDA approval of neffy 1 mg marks a major milestone towards our efforts to transform the management of severe allergic reactions,” says Richard Lowenthal, Co-Founder, President, and CEO of ARS Pharma. “Many children and caregivers fear needle-based auto-injectors, which can delay lifesaving treatment. neffy’s needle-free, easy-to-use design addresses this unmet need, offering families a long-awaited alternative. With nearly four out of 10 U.S. epinephrine prescriptions written for children under the age of 18—and nearly a third of those for children weighing 15 to 30 kilograms4 —we believe neffy 1 mg will improve access to a needle-free option for the treatment of severe allergies and reduce hesitation in treating this vulnerable group. It will also eliminate risks like accidental needle injuries to children or caregivers.”

The approval of neffy 1 mg is based on data from extensive clinical trials, including pharmacokinetic (PK) and pharmacodynamic (PD) responses in pediatric and adult subjects that were consistent with those of epinephrine injection products. Adverse events in pediatric trials were generally mild and transient. Human factor studies also show children as young as 10 can use neffy effectively by following instructions, and that even untrained individuals, such as babysitters or teachers, can effectively administer neffy. The device has a shelf-life of 24 months at room temperature and tolerance to temperature exposures up to 122°F (50°C) based on testing for up to 3 months. If accidentally frozen, neffy can be thawed without impact on the product quality and reliability.

“The availability of a needle-free epinephrine option for children is a breakthrough in the treatment of severe allergic reactions,” says Dr. David Fleischer, Section Head of Allergy & Immunology, and Professor of Pediatrics, at Children’s Hospital Colorado. “Many people wait to administer epinephrine until symptoms progress or take antihistamines as a first line of defense because they are afraid of injection. neffy’s small, user-friendly design addresses these challenges, empowering people to actually carry epinephrine and act quickly and confidently during an allergic emergency. This innovation will likely significantly improve health outcomes and enhance quality of life.”

ARS Pharma is committed to access and affordability, and neffy 1 mg is expected to be available in the U.S. by the end of May 2025. The neffyConnect program provides patients, caregivers, and healthcare professionals with information to guide their treatment journey, details about medication fulfillment services, financial support and navigating insurance requirements. Most commercially insured patients will pay no more than $25 for two single-use neffy devices through a co-pay savings program. The co-pay savings card can be accessed at neffy.com and downloaded to an Apple Wallet and provided to the pharmacy. If the product isn’t covered by insurance, the cash price of $199 for two doses is available through BlinkRx and coupon can be downloaded from GoodRx for use at local retail pharmacies. For certain uninsured or underinsured U.S. residents meeting eligibility criteria and exhausted all other options, the ARS Pharma Patient Assistance Program (PAP) will provide neffy at no cost.

Eligible schools participating in the neffyinSchools program can receive neffy 1 mg upon availability. For more information, and to register for neffyConnect, visit www.neffy.com.

The approval of neffy 1 mg follows FDA approval for neffy 2 mg on August 9, 2024 for children and adults weighing 30kg ( 66 lb.), and approval for EURneffy in the EU by the European Commission on August 22, 2024.

About neffy®

neffy is a nasal spray used for emergency treatment of allergic reactions including anaphylaxis, in adults and children aged 4 years and older who weigh 33 lbs. or greater.

INDICATION AND IMPORTANT SAFETY INFORMATION FOR neffy (epinephrine nasal spray)

INDICATION

neffy is indicated for emergency treatment of type I allergic reactions, including anaphylaxis, in adult and pediatric patients aged 4 years and older who weigh 33 lbs. or greater.

IMPORTANT SAFETY INFORMATION

neffy contains epinephrine, a medicine used to treat allergic emergencies (anaphylaxis). Anaphylaxis can be life-threatening, can happen in minutes, and can be caused by stinging and biting insects, allergy injections, foods, medicines, exercise, or other unknown causes.

Always carry two neffy nasal sprays with you because you may not know when anaphylaxis may happen and because you may need a second dose of neffy if symptoms continue or come back. Each neffy contains a single dose of epinephrine. neffy is for use in the nose only.

Use neffy right away, as soon as you notice symptoms of an allergic reaction. If symptoms continue or get worse after the first dose of neffy, a second dose is needed. If needed, administer a second dose using a new neffy in the same nostril starting 5 minutes after the first dose. Get emergency medical help for further treatment of the allergic emergency (anaphylaxis), if needed after using neffy.

Tell your healthcare provider if you have underlying structural or anatomical nasal conditions, about all the medicines you take, and about all your medical conditions, especially if you have heart problems, kidney problems, low potassium in your blood, Parkinson’s disease, thyroid problems, high blood pressure, diabetes, are pregnant or plan to become pregnant, or plan to breastfeed.

Tell your healthcare provider if you take or use other nasal sprays or water pills (diuretics) or if you take medicines to treat depression, abnormal heart beats, Parkinson’s disease, heart disease, thyroid disease, medicines used in labor, and medicines to treat allergies. neffy and other medications may affect each other, causing side effects. neffy may affect the way other medicines work, and other medicines may affect how neffy works.

neffy may cause serious side effects. If you have certain medical conditions or take certain medicines, your condition may get worse, or you may have more or longer lasting side effects when you use neffy.

Common side effects of neffy include: nasal discomfort, headache, throat irritation, chest and nasal congestion, feeling overly excited, nervous or anxious, nose bleed, nose pain, sneezing, runny nose, dry nose or throat, tingling sensation, including in the nose, feeling tired, dizziness, nausea, and vomiting.

Tell your healthcare provider if you have any side effects that bother you or that do not go away after using neffy.

These are not all of the possible side effects of neffy. Call your healthcare provider for medical advice about side effects. To report side effects, contact ARS Pharmaceuticals Operations, Inc. at 1-877-MY-NEFFY (877-696-3339) or the FDA at 1-800-FDA-1088 or www.fda.gov/medwatch.

Please see the full Prescribing Information and Patient Information for neffy.

About Type I Allergic Reactions Including Anaphylaxis

Type I allergic reactions are serious and potentially life-threatening events that can occur within minutes of exposure to an allergen and require immediate treatment with epinephrine, the only FDA-approved medication for these reactions. While epinephrine auto-injectors have been shown to be highly effective, there are well published limitations that result in many patients and caregivers delaying or not administering treatment in an emergency situation. These limitations include fear of the needle, lack of portability, needle-related safety concerns, lack of reliability, and complexity of the devices. There are approximately 40 million people in the United States who experience Type I Allergic reactions. Of this group, over the last three years, approximately 20 million people have been diagnosed and treated for severe Type I allergic reactions that may lead to anaphylaxis, but (in 2023, for example) only 3.2 million filled their active epinephrine auto-injector prescription, and of those, only half consistently carry their prescribed auto-injector. Even if patients or caregivers carry an auto-injector, more than half either delay or do not administer the device when needed in an emergency.

About ARS Pharmaceuticals, Inc.

ARS Pharmaceuticals is a biopharmaceutical company dedicated to empowering at-risk patients and their caregivers to better protect patients from allergic reactions that could lead to anaphylaxis. The Company is commercializing neffy®  (trade name EURneffy® in the EU) (previously referred to as ARS-1), an epinephrine nasal spray indicated in the U.S. for emergency treatment of Type I allergic reactions, including anaphylaxis, adult and pediatric patients 4 years of age and older who weigh 15 kg or greater, and in the EU for emergency treatment of allergic reactions (anaphylaxis) due to insect stings or bites, foods, medicinal products, and other allergens as well as idiopathic or exercise induced anaphylaxis in adults and children who weigh 30 kg or greater. For more information, visit www.ars-pharma.com.

Forward Looking Statements

Statements in this press release that are not purely historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: the expectation that neffy will save lives; the effectiveness of neffy; neffyConnect’s ability to help patients and HCPs access financial support and medication fulfillment services; ARS Pharmaceuticals’ commercial coverage goals and the timing thereof; the expected timing for product availability of neffy 1 mg; neffy’s ability to improved health outcomes and quality of life; neffy’s shelf life and its effectiveness after being subject to extreme temperatures; and other statements that are not historical fact. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipate,” “expects,” “if,” “may,” “potential,” “on track to,” “plans,” “will,” “would,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon ARS Pharmaceuticals’ current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation: potential safety and other complications from neffy; the ability to maintain regulatory approval for neffy in its currently approved indications the scope, progress and expansion of developing and commercializing neffy; the potential for governments and payors to delay, limit or deny coverage for neffy; the size and growth of the market therefor and the rate and degree of market acceptance thereof vis-à-vis intramuscular injectable products;  ARS Pharmaceuticals’ ability to protect its intellectual property position; and the impact of government laws and regulations. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” in ARS Pharmaceuticals’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the Securities and Exchange Commission (“SEC”) on November 13, 2024. These documents can also be accessed on ARS Pharmaceuticals’ website at www.ars-pharma.com by clicking on the link “Financials & Filings” under the “Investors & Media” tab.

The forward-looking statements included in this press release are made only as of the date hereof. ARS Pharmaceuticals assumes no obligation and does not intend to update these forward-looking statements, except as required by law. For more information, visit www.ars-pharma.com, and follow us on LinkedIn and X.

ARS Investor Contact:
Justin Chakma
ARS Pharmaceuticals
[email protected]

ARS Media Contact:
Christy Curran
Sam Brown Inc.
615.414.8668
[email protected]

References:

  1. Food Allergy Research & Education. Facts and Statistics. Available at Facts and Statistics – FoodAllergy.org. Accessed January 24, 2025.
  2. Rooney E, et al. Poster Presentation at ACAAI 2022 (Louisville, KY).
  3. 3. Chad L, Ben-Shoshan M, Asai Y, et al. A majority of parents of children with peanut allergy fear using the epinephrine auto-injector. Allergy. 2013;68(12):1605-1609. https://doi.org/10.1111/all.12262.
  4. ARS Data on File, 2025


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Forge Global Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

Forge Global Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

  • Total Revenue Less Transaction Based Expenses was $78.7 million, up 13% year-over-year.
  • Total Marketplace Revenues Less Transaction Based Expenses was $37.0 million, up 46% year-over-year.
  • Total Trading Volume was $1.3 billion, up 73% year-over-year.
  • Total Custodial Administration Fees Less Transaction Based Expenses was $41.7 million, down 5% year-over-year.
  • Forge’s board of directors authorized a share repurchase program of up to $10 million of Forge’s common stock.

SAN FRANCISCO–(BUSINESS WIRE)–
Forge Global Holdings, Inc. (“Forge,” or the “Company”) (NYSE: FRGE), a leading private securities marketplace, today announced its financial results for the quarter and year ended December 31, 2024.

“We closed out 2024 with 13% year-over-year growth and a strong pipeline,” said Forge CEO Kelly Rodriques. “Our year-over-year revenue improvement included a 46% increase in marketplace revenues, which grew to $37.0 million. As Q4 came in near-even to Q3, I’m happy to report we’ve observed improving over-all market dynamics and growing deal activity, aided by the technology improvements we’ve delivered to support our leading marketplace.”

Financial Highlights for the Fourth Quarter of 2024

Revenue: Total revenue less transaction-based expenses was $18.3 million compared to $19.1 million quarter-over-quarter.

Operating Loss: Total operating loss was $18.7 million compared to $20.9 million quarter-over-quarter.

Net Loss: Net loss was $16.0 million compared to $18.8 million quarter-over-quarter.

Adjusted EBITDA: Total adjusted EBITDA loss was $10.9 million compared to $11.4 million quarter-over-quarter.

Cash Flow from Operating Activities: Net cash used in operating activities was $7.9 million compared to $5.8 million quarter-over-quarter.

Ending Cash Balance: Cash and cash equivalents as of December 31, 2024 was $105.1 million.

Share Count: Basic weighted-average number of shares used to compute net loss per share attributable to common stockholders for the quarter ended December 31, 2024, was 186 million shares and fully diluted outstanding share count as of December 31, 2024 was 201 million shares.

We estimate for the quarter ended March 31, 2025 that Forge will have 187 million weighted average basic shares outstanding, which will be used to calculate earnings per share in a loss position.

Fully diluted outstanding share count includes all common shares outstanding plus shares that would be issued in respect to outstanding restricted stock units, options and warrants, net of shares to be withheld in respect to exercise price of the respective instruments. Instruments that are out of the money are excluded from the fully diluted outstanding share count.

*Percentages may not be replicated based on the rounded figures presented.

KPIs for the Fourth Quarter 2024

  • Trading Volume went from $338.1 million to $298.5 million, down 12% quarter-over-quarter.
  • Net Take Rate went from 2.6% to 2.8% quarter-over-quarter.
  • Total Marketplace revenues, less transaction-based expenses went from $8.6 million to $8.4 million, down 2% quarter-over-quarter.
  • Total Custodial Accounts went from 2.28 million to 2.38 million, up 4% quarter-over-quarter.
  • Total Assets Under Custody went from $16.6 billion to $16.9 billion, up 2% quarter-over-quarter.
  • Total Custodial Administration Fee revenues, less transaction-based expenses went from $10.5 million to $9.8 million, down 6% quarter-over-quarter.

Additional Business Metrics for the Fourth Quarter 2024

  • Forge Trust Custodial Cash: In the quarter ended December 31, 2024, Forge Trust Custodial Cash totaled $483 million, up 3% quarter-over-quarter from $470 million, and down 4% year-over-year from $505 million.
  • Total Number of Companies with Indications of Interest (IOIs): In the quarter ended December 31, 2024, the total number of companies with IOIs was 535, up 4% quarter-over quarter, and up 10% year-over-year.
  • Headcount: Forge finished out the quarter ended December 31, 2024 with a total headcount of 300, down 9% year-over year from 331.

Financial Highlights for the Full Year 2024

  • Revenue: Total revenue less transaction-based expenses was $78.7 million compared to $69.4 million, up 13% year-over-year.
  • Operating Loss: Total operating loss down 10% year-over-year to $82.3 million compared to $91.4 million.
  • Net Loss: Net loss down 26% year-over-year to $67.8 million compared to $91.5 million.
  • Adjusted EBITDA: Total adjusted EBITDA loss down 10% year-over-year to $43.7 million compared to $48.8 million.
  • Cash Flow from Operating Activities: Net cash used in operating activities was $40.5 million compared to net cash used in operating activities of $41.5 million for the year ended December 31, 2023, a 2% improvement.

KPIs for the Full Year 2024

  • Trading Volume went from $0.8 billion to $1.3 billion, up 73% year-over-year.
  • Net Take Rate went from 3.3% to 2.8% year-over-year.
  • Total Marketplace revenues, less transaction-based expenses went from $25.4 million to $37.0 million, up 46% year-over-year.
  • Total Custodial Accounts went from 2.08 million to 2.38 million, up 14% year-over-year.
  • Total Assets Under Custody went from $15.6 billion to $16.9 billion, up 8% year-over-year.
  • Total Custodial Administration Fee revenues, less transaction-based expenses went from $44.0 million to $41.7 million, down 5% year-over-year.

Please refer to the section titled “Use of Non-GAAP Financial Information” and the tables within this press release which contain explanations and reconciliations of the Company’s non-GAAP financial measures.

Business Highlights

  • Share Repurchase Program: Forge’s board of directors authorized a share repurchase program of up to $10 million of Forge’s common stock. Repurchases under the program may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. The program does not obligate Forge to acquire any particular amount of its common stock, and may be modified, suspended, or terminated at any time at Forge’s discretion.
  • Forge Price Launched: Forge launched Forge Price, a proprietary indicative price calculated daily for approximately 200 pre-IPO companies. The innovative pricing model provides a derived price per share for each company by synthesizing data from various sources, including secondary market transactions, recent funding rounds, and IOIs collected by Forge. Forge Price provides more up-to-date pricing information compared to other standalone sources, such as secondary funding round prices and mutual fund marks, and underlies Forge’s other derived data product innovations.
  • Private Magnificent 7 Announced: Forge announced the Private Market Magnificent 7 to provide clients with visibility into seven of the top-performing companies in the Forge marketplace. Forge Price underlies the methodology for identifying the Private Market Magnificent 7, which are selected based on a variety of criteria, including company size, share price performance, secondary trading liquidity, market leadership, and brand equity.
  • Forge Accuidity Private Market Index Tracked by Accuidity:The Forge Accuidity Private Market Index, a first-of-its-kind investable index that tracks the performance of late-stage, venture-backed companies, was adopted by institutional asset manager Accuidity within their Megacorn investment strategy.
  • Forge Pro Released: Forge releases Forge Pro, our web application geared towards institutional clients that combines data visualization and visibility of detailed trade data, such as trading book views, extensive company data, and advanced pricing data. Through Forge Pro, clients are able to enter and manage IOIs and orders through a professional-grade interface designed for sophisticated market participants.

Webcast/Conference Call Details

Forge will host a webcast conference call today, March 5, 2025, at 4:30 p.m. Eastern Time / 1:30 p.m Pacific Time to discuss these financial results and business highlights. The listen-only webcast is available at https://ir.forgeglobal.com. Investors and participants can access the conference call over the phone by dialing 1 (800) 715-9871 from the United States, or +1 (646) 307-1963 internationally. The conference ID is 6194475.

Following the conference call, an on-demand replay of the webcast, as well as the slides shown during the call, will be made available on the Investor Relations page of the Company’s website at https://ir.forgeglobal.com.

Use of Non-GAAP Financial Information

In addition to our financial results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we present Adjusted EBITDA, a non-GAAP financial measure. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, when taken together with the corresponding GAAP financial measure, provides meaningful supplemental information regarding our performance by excluding specific financial items that have less bearing on our core operating performance. We consider Adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis.

However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. A reconciliation is provided below for Adjusted EBITDA to net loss, the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review Adjusted EBITDA and the reconciliation of Adjusted EBITDA to net loss, and not to rely on any single financial measure to evaluate our business.

We defined Adjusted EBITDA as net loss, adjusted to exclude: (i) interest expense, net, (ii) provision for or benefit from income taxes, (iii) depreciation and amortization, (iv) share-based compensation expense, (v) change in fair value of warrant liabilities, (vi) acquisition-related transaction costs, and (vii) other significant gains, losses, and expenses (such as impairments, transaction bonus) that we believe are not indicative of our ongoing results.

Forward-Looking Statements

This press release contains “forward-looking statements,” which generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “target,” “goal,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “forecast,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict, indicate, or relate to future events or trends or Forge’s future financial or operating performance, or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Forge’s beliefs regarding its financial position and operating performance, as well as future opportunities for Forge to expand its business. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, while considered reasonable by Forge and its management, are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. You should carefully consider the risks and uncertainties described in Forge’s documents filed, or to be filed, with the SEC. There may be additional risks that Forge presently does not know of or that it currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect Forge’s expectations, plans, or forecasts of future events and views as of the date of this press release. Forge anticipates that subsequent events and developments will cause its assessments to change. However, while Forge may elect to update these forward-looking statements at some point in the future, Forge specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Forge’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Forge

Forge (NYSE: FRGE) is a leading provider of marketplace infrastructure, data services and technology solutions for private market participants. Forge Securities LLC is a registered broker-dealer and a Member of FINRA that operates an alternative trading system.

FORGE GLOBAL HOLDINGS, INC.

Consolidated Balance Sheets

(In thousands of U.S. dollars, except share and per share data)

 

December 31,

2024

 

December 31,

2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

105,140

 

 

$

144,722

 

Restricted cash

 

1,116

 

 

 

1,062

 

Accounts receivable, net

 

4,706

 

 

 

4,067

 

Prepaid expenses and other current assets

 

8,205

 

 

 

13,253

 

Total current assets

$

119,167

 

 

$

163,104

 

Internal-use software, property and equipment, net

 

2,920

 

 

 

5,192

 

Goodwill and other intangible assets, net

 

126,456

 

 

 

129,919

 

Operating lease right-of-use assets

 

5,107

 

 

 

4,308

 

Payment-dependent notes receivable, noncurrent

 

7,412

 

 

 

5,593

 

Other assets, noncurrent

 

2,444

 

 

 

2,615

 

Total assets

$

263,506

 

 

$

310,731

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,941

 

 

$

1,831

 

Accrued compensation and benefits

 

13,430

 

 

 

11,004

 

Accrued expenses and other current liabilities

 

6,310

 

 

 

8,861

 

Operating lease liabilities, current

 

3,463

 

 

 

2,516

 

Total current liabilities

$

25,144

 

 

$

24,212

 

Operating lease liabilities, noncurrent

 

3,694

 

 

 

2,707

 

Payment-dependent notes payable, noncurrent

 

7,412

 

 

 

5,593

 

Warrant liabilities

 

192

 

 

 

9,616

 

Other liabilities, noncurrent

 

322

 

 

 

185

 

Total liabilities

$

36,764

 

 

$

42,313

 

Commitments and contingencies

 

 

 

Stockholders’ equity (deficit):

 

 

 

Common stock, 0.0001 par value; 186,399,412 and 176,899,814 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

 

19

 

 

 

18

 

Treasury stock, at cost; 157,193 and zero shares as of December 31, 2024 and December 31, 2023, respectively

 

(625

)

 

 

(625

)

Additional paid-in capital

 

570,588

 

 

 

543,846

 

Accumulated other comprehensive loss

 

572

 

 

 

911

 

Accumulated deficit

 

(346,972

)

 

 

(280,638

)

Total Forge Global Holdings, Inc. stockholders’ equity

$

223,582

 

 

$

263,512

 

Noncontrolling Interest

 

3,160

 

 

 

4,906

 

Total stockholders’ equity

$

226,742

 

 

$

268,418

 

Total liabilities and stockholders’ equity

$

263,506

 

 

$

310,731

 

FORGE GLOBAL HOLDINGS, INC.

Consolidated Statements of Operations

(In thousands of U.S. dollars, except share and per share data)

 

Three Months Ended

 

Year Ended

 

December 31, 2024

 

September 30, 2024

 

June 30, 3024

 

March 31, 2024

 

December 31, 2024

 

December 31, 2023

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Marketplace revenue

$

8,628

 

 

$

8,713

 

 

$

11,679

 

 

$

8,520

 

 

$

37,540

 

 

$

25,790

 

Custodial administration fees

 

9,961

 

 

 

10,503

 

 

 

10,603

 

 

 

10,722

 

 

 

41,789

 

 

 

44,031

 

Total revenues

$

18,589

 

 

$

19,216

 

 

$

22,282

 

 

$

19,242

 

 

$

79,329

 

 

$

69,821

 

Transaction-based expenses:

 

 

 

 

 

 

 

 

 

 

 

Transaction-based expenses

 

(316

)

 

 

(73

)

 

 

(256

)

 

 

(29

)

 

 

(674

)

 

 

(431

)

Total revenues, less transaction-based expenses

$

18,273

 

 

$

19,143

 

 

$

22,026

 

 

$

19,213

 

 

$

78,655

 

 

$

69,390

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

25,614

 

 

 

28,750

 

 

 

28,784

 

 

 

29,843

 

 

 

112,991

 

 

 

106,593

 

Technology and communications

 

3,587

 

 

 

3,185

 

 

 

2,649

 

 

 

3,060

 

 

 

12,481

 

 

 

14,507

 

General and administrative

 

1,384

 

 

 

1,877

 

 

 

2,508

 

 

 

5,062

 

 

 

10,831

 

 

 

12,510

 

Professional services

 

2,148

 

 

 

2,435

 

 

 

1,605

 

 

 

2,217

 

 

 

8,405

 

 

 

11,905

 

Depreciation and amortization

 

1,313

 

 

 

1,748

 

 

 

1,781

 

 

 

1,816

 

 

 

6,658

 

 

 

6,954

 

Rent and occupancy

 

1,940

 

 

 

1,036

 

 

 

1,107

 

 

 

1,135

 

 

 

5,218

 

 

 

4,884

 

Advertising and market development

 

986

 

 

 

1,015

 

 

 

1,243

 

 

 

1,090

 

 

 

4,334

 

 

 

3,486

 

Total operating expenses

$

36,972

 

 

$

40,046

 

 

$

39,677

 

 

$

44,223

 

 

$

160,918

 

 

$

160,839

 

Operating loss

$

(18,699

)

 

$

(20,903

)

 

$

(17,651

)

 

$

(25,010

)

 

$

(82,263

)

 

$

(91,449

)

Interest and other income:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,164

 

 

 

1,307

 

 

 

1,495

 

 

 

1,709

 

 

 

5,675

 

 

 

6,421

 

Change in fair value of warrant liabilities

 

1,766

 

 

 

931

 

 

 

2,280

 

 

 

4,447

 

 

 

9,424

 

 

 

(6,465

)

Other income, net

 

98

 

 

 

119

 

 

 

94

 

 

 

76

 

 

 

387

 

 

 

763

 

Total interest and other income

$

3,028

 

 

$

2,357

 

 

$

3,869

 

 

$

6,232

 

 

$

15,486

 

 

$

719

 

Loss before provision for income taxes

$

(15,671

)

 

$

(18,546

)

 

$

(13,782

)

 

$

(18,778

)

 

$

(66,777

)

 

$

(90,730

)

Provision for income taxes

 

294

 

 

 

298

 

 

 

258

 

 

 

216

 

 

 

1,066

 

 

 

819

 

Net loss

$

(15,965

)

 

$

(18,844

)

 

$

(14,040

)

 

$

(18,994

)

 

$

(67,843

)

 

$

(91,549

)

Net loss attributable to noncontrolling interest

$

(322

)

 

$

(502

)

 

$

(316

)

 

$

(370

)

 

$

(1,510

)

 

$

(1,328

)

Net loss attributable to Forge Global Holdings, Inc.

$

(15,643

)

 

$

(18,342

)

 

$

(13,724

)

 

$

(18,624

)

 

$

(66,333

)

 

$

(90,221

)

Net loss per share attributable to Forge Global Holdings, Inc. common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.08

)

 

$

(0.10

)

 

$

(0.08

)

 

$

(0.10

)

 

$

(0.36

)

 

$

(0.52

)

Diluted

$

(0.08

)

 

$

(0.10

)

 

$

(0.08

)

 

$

(0.10

)

 

$

(0.36

)

 

$

(0.52

)

Weighted-average shares used in computing net loss per share attributable to Forge Global Holdings, Inc. common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

185,842,467

 

 

 

184,158,571

 

 

 

182,681,065

 

 

 

179,910,522

 

 

 

183,160,263

 

 

 

173,402,167

 

Diluted

 

185,842,467

 

 

 

184,158,571

 

 

 

182,681,065

 

 

 

179,910,522

 

 

 

183,160,263

 

 

 

173,402,167

 

FORGE GLOBAL HOLDINGS, INC.

Consolidated Statements of Cash Flows

(In thousands of U.S. dollars)

 

Three Months Ended

 

Year Ended

 

December 31, 2024

 

September 30, 2024

 

June 30, 3024

 

March 31, 2024

 

December 31, 2024

 

December 31, 2023

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(15,965

)

 

$

(18,844

)

 

$

(14,040

)

 

$

(18,994

)

 

$

(67,843

)

 

$

(91,549

)

Adjustments to reconcile net loss to net cash used in operations:

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

5,541

 

 

 

7,622

 

 

 

7,859

 

 

 

9,467

 

 

 

30,489

 

 

 

34,334

 

Depreciation and amortization

 

1,313

 

 

 

1,748

 

 

 

1,781

 

 

 

1,816

 

 

 

6,658

 

 

 

6,954

 

Amortization of right-of-use assets

 

679

 

 

 

670

 

 

 

662

 

 

 

643

 

 

 

2,654

 

 

 

3,153

 

Loss on impairment of long lived assets

 

866

 

 

 

—

 

 

 

—

 

 

 

186

 

 

 

1,052

 

 

 

599

 

Allowance for doubtful accounts

 

(12

)

 

 

34

 

 

 

107

 

 

 

109

 

 

 

238

 

 

 

270

 

Change in fair value of warrant liabilities

 

(1,765

)

 

 

(932

)

 

 

(2,280

)

 

 

(4,447

)

 

 

(9,424

)

 

 

6,465

 

Change in fair value of contingent liability

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,545

 

Other

 

—

 

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

(10

)

 

 

(625

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

262

 

 

 

(466

)

 

 

923

 

 

 

(1,596

)

 

 

(877

)

 

 

(792

)

Prepaid expenses and other assets

 

839

 

 

 

2,049

 

 

 

(5,353

)

 

 

1,125

 

 

 

(1,340

)

 

 

2,018

 

Accounts payable

 

342

 

 

 

(120

)

 

 

(1,004

)

 

 

1,066

 

 

 

284

 

 

 

(1,216

)

Accrued expenses and other liabilities

 

(1,335

)

 

 

922

 

 

 

(4,636

)

 

 

2,782

 

 

 

(2,267

)

 

 

2,805

 

Accrued compensation and benefits

 

2,124

 

 

 

2,228

 

 

 

2,041

 

 

 

(3,967

)

 

 

2,426

 

 

 

(2,267

)

Operating lease liabilities

 

(788

)

 

 

(739

)

 

 

(491

)

 

 

(555

)

 

 

(2,573

)

 

 

(4,150

)

Net cash used in operating activities

$

(7,899

)

 

$

(5,828

)

 

$

(14,431

)

 

$

(12,375

)

 

$

(40,533

)

 

$

(41,456

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Receipts of term deposit maturities

 

—

 

 

 

—

 

 

 

6,559

 

 

 

—

 

 

 

6,559

 

 

 

2,115

 

Purchases of property and equipment

 

—

 

 

 

(125

)

 

 

(267

)

 

 

(400

)

 

 

(792

)

 

 

(527

)

Purchases of term deposits

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,748

)

Capitalized internal-use software development costs

 

(248

)

 

 

(48

)

 

 

—

 

 

 

—

 

 

 

(296

)

 

 

—

 

Net cash (used in) provided by investing activities

$

(248

)

 

$

(173

)

 

$

6,292

 

 

$

(400

)

 

$

5,471

 

 

$

(8,160

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of options, including proceeds from repayment of promissory notes

 

55

 

 

 

12

 

 

 

235

 

 

 

226

 

 

 

528

 

 

 

710

 

Taxes withheld and paid related to net share settlement of equity awards

 

(575

)

 

 

(406

)

 

 

(1,135

)

 

 

(2,302

)

 

 

(4,419

)

 

 

(653

)

Net cash (used in) provided by financing activities

$

(520

)

 

$

(394

)

 

$

(900

)

 

$

(2,076

)

 

$

(3,891

)

 

$

57

 

Effect of changes in currency exchange rates on cash and cash equivalents

 

(634

)

 

 

388

 

 

 

(78

)

 

 

(253

)

 

 

(575

)

 

 

378

 

Net decrease in cash and cash equivalents

 

(9,301

)

 

 

(6,007

)

 

 

(9,117

)

 

 

(15,104

)

 

 

(39,528

)

 

 

(49,181

)

Cash, cash equivalents and restricted cash, beginning of the period

 

115,557

 

 

 

121,564

 

 

 

130,681

 

 

 

145,785

 

 

 

145,784

 

 

 

194,965

 

Cash, cash equivalents and restricted cash, end of the period

$

106,256

 

 

$

115,557

 

 

$

121,564

 

 

$

130,681

 

 

$

106,256

 

 

$

145,784

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

105,140

 

 

$

114,454

 

 

$

120,475

 

 

$

129,606

 

 

$

105,140

 

 

$

144,722

 

Restricted cash

 

1,116

 

 

 

1,103

 

 

 

1,089

 

 

 

1,075

 

 

 

1,116

 

 

 

1,062

 

Total cash, cash equivalents and restricted cash, end of the period

$

106,256

 

 

$

115,557

 

 

$

121,564

 

 

$

130,681

 

 

$

106,256

 

 

$

145,784

 

FORGE GLOBAL HOLDINGS, INC.

Reconciliation of GAAP to Non-GAAP Results

(In thousands of U.S. dollars)

 

Three Months Ended

 

Year Ended

 

December 31, 2024

 

September 30, 2024

 

June 30, 3024

 

March 31, 2024

 

December 31, 2024

 

December 31, 2023

Net loss attributable to Forge Global Holdings, Inc.

$

(15,643

)

 

$

(18,342

)

 

$

(13,724

)

 

$

(18,624

)

 

$

(66,333

)

 

$

(90,221

)

Add:

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(1,164

)

 

 

(1,307

)

 

 

(1,495

)

 

 

(1,709

)

 

 

(5,675

)

 

 

(6,421

)

Provision for income taxes

 

294

 

 

 

298

 

 

 

258

 

 

 

216

 

 

 

1,066

 

 

 

819

 

Depreciation and amortization

 

1,313

 

 

 

1,748

 

 

 

1,781

 

 

 

1,816

 

 

 

6,658

 

 

 

6,954

 

Net loss attributable to noncontrolling interest

 

(322

)

 

 

(502

)

 

 

(316

)

 

 

(370

)

 

 

(1,510

)

 

 

(1,328

)

Loss or impairment on long lived assets

 

866

 

 

 

—

 

 

 

—

 

 

 

186

 

 

 

1,052

 

 

 

599

 

Share-based compensation expense

 

5,541

 

 

 

7,622

 

 

 

7,859

 

 

 

9,467

 

 

 

30,489

 

 

 

34,334

 

Change in fair value of warrant liabilities

 

(1,766

)

 

 

(931

)

 

 

(2,280

)

 

 

(4,447

)

 

 

(9,424

)

 

 

6,465

 

Adjusted EBITDA

$

(10,881

)

 

$

(11,414

)

 

$

(7,917

)

 

$

(13,465

)

 

$

(43,677

)

 

$

(48,799

)

FORGE GLOBAL HOLDINGS, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

KEY OPERATING METRICS

(In thousands of U.S. dollars)

Key Business Metrics

We monitor the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

 

The tables below reflect period-over-period changes in our key business metrics, along with the percentage change between such periods. We believe the following business metrics are useful in evaluating our business:

 

 

Three Months Ended

Dollars in thousands

 

December 31, 2024

 

September 30, 2024

 

Change

 

% Change

MARKETPLACE SOLUTIONS

 

 

 

 

 

 

 

 

Trades

 

 

646

 

 

 

680

 

 

 

(34

)

 

(5

)%

Volume

 

$

298,539

 

 

$

338,075

 

 

$

(39,536

)

 

(12

)%

Net Take Rate

 

 

2.8

%

 

 

2.6

%

 

 

0.2

%

 

8

%

Marketplace revenues, less transaction-based expenses

 

$

8,434

 

 

$

8,640

 

 

$

(206

)

 

(2

)%

 

 

Year Ended December 31,

Dollars in thousands

 

2024

 

2023

 

Change

 

% Change

MARKETPLACE SOLUTIONS

 

 

 

 

 

 

 

 

Trades

 

 

2,762

 

 

 

1,756

 

 

 

1,006

 

 

57

%

Volume

 

$

1,325,470

 

 

$

765,899

 

 

$

559,571

 

 

73

%

Net Take Rate

 

 

2.8

%

 

 

3.3

%

 

 

(0.5

)%

 

(15

)%

Marketplace revenues, less transaction-based expenses

 

$

36,988

 

 

$

25,359

 

 

$

11,629

 

 

46

%

  • Trades are defined as the total number of orders executed by us on behalf of private investors and shareholders. Increasing the number of orders is critical to increasing our revenue and, in turn, to achieving profitability.
  • Volume is defined as the total sales value for all securities traded through our Forge marketplace, which is the aggregate value of the issuer company’s equity attributed to both the buyer and seller in a trade and as such a $100 trade of equity between buyer and seller would be captured as $200 volume for us. Although we typically capture a commission on each side of a trade, we may not in certain cases due to factors such as the use of a third-party broker by one of the parties or supply factors that would not allow us to attract sellers of shares of certain issuers. Volume is influenced by, among other things, the pricing and quality of our services as well as market conditions that affect private company valuations, such as increases in valuations of comparable companies at IPO.
  • Net Take Rates are defined as our marketplace revenues, less markets-related transaction-based expenses, divided by Volume. These represent the percentage of fees earned by our marketplace on any transactions executed from the commission we charged on such transactions less transaction-based expenses, which is a determining factor in our revenue. The Net Take Rate can vary based upon the service or product offering and is also affected by the average order size and transaction frequency.

 

 

As of and for the three months ended

Dollars in thousands

 

December 31, 2024

 

September 30, 2024

 

Change

 

% Change

CUSTODY SOLUTION

 

 

 

 

 

 

 

 

Total Custodial Accounts

 

 

2,376,099

 

 

2,281,976

 

 

94,123

 

 

4

%

Assets Under Custody

 

$

16,897,318

 

$

16,620,450

 

$

276,868

 

 

2

%

Custodial administration fees, less transaction-based expenses

 

$

9,839

 

$

10,503

 

$

(664

)

 

(6

)%

 

 

As of and for the three months ended

Dollars in thousands

 

December 31, 2024

 

December 31, 2023

 

Change

 

% Change

CUSTODY SOLUTION

 

 

 

 

 

 

 

 

Total Custodial Accounts

 

 

2,376,099

 

 

2,078,868

 

 

297,231

 

 

14

%

Assets Under Custody

 

$

16,897,318

 

$

15,647,469

 

$

1,249,849

 

 

8

%

Custodial administration fees, less transaction-based expenses

 

$

9,839

 

$

10,907

 

$

(1,068

)

 

(10

)%

  • Total Custodial Accounts are defined as our clients’ custodial accounts that are established on our platform and billable. These relate to our Custodial Administration fees revenue stream and are an important measure of our business as the number of Total Custodial Accounts is an indicator of our future revenues from certain account maintenance, transaction and cash administration fees.
  • Assets Under Custody is the reported value of all client holdings held under our agreements, including cash submitted to us by the responsible party. These assets can be held at various financial institutions, issuers and in our vault. As the custodian of the accounts, we collect all interest and dividends, handle all fees and transactions and any other considerations for the assets concerned. Our fees are earned from the overall maintenance activities of all assets and are not charged on the basis of the dollar value of Assets Under Custody, but we believe that Assets Under Custody is a useful metric for assessing the relative size and scope of our business.

 

Investor Relations Contact:

Dominic Paschel

[email protected]

Media Contact:

Lindsay Riddell

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Finance Data Management Professional Services Technology Asset Management

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First Trust Specialty Finance and Financial Opportunities Fund Announces Mailing of Proxy Materials for Special Meeting of Shareholders

First Trust Specialty Finance and Financial Opportunities Fund Announces Mailing of Proxy Materials for Special Meeting of Shareholders

WHEATON, Ill.–(BUSINESS WIRE)–
First Trust Advisors L.P. (“FTA”) announced today that proxy materials for the proposed reorganization of First Trust Specialty Finance and Financial Opportunities Fund (NYSE: FGB), a closed-end fund managed by FTA, with and into FT Confluence BDC & Specialty Finance Income ETF (the “ETF”), a newly formed series of First Trust Exchange-Traded Fund VIII (the “Reorganization”) have been mailed to shareholders. Shareholders of record of FGB as of the close of business on January 10, 2025 are entitled to vote on the Reorganization at the special meeting of shareholders to be held at 12:00 p.m. Central time on April 21, 2025 (the “Meeting”).

Whether or not shareholders plan to attend the Meeting, it is important that their shares be represented and voted at the Meeting. Shareholders may vote their shares by one of the methods described in the proxy materials, which includes the combined proxy statement and prospectus that contains important information regarding the Reorganization. The proxy statement and prospectus is also available at https://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=3cff1a3e-7461-4dcf-82c7-34ff1ec7d5df. If shareholders have any questions regarding the proposal, or need assistance voting, they may call EQ Fund Solutions, LLC at (866) 796-7172.

FTA is a federally registered investment advisor and serves as the Fund’s investment advisor. FTA and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $266 billion as of January 31, 2025 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

Confluence Investment Management LLC (“Confluence”), an SEC registered investment advisor, serves as the investment sub-advisor to FGB and the new ETF. The Confluence team has more than 600 years of combined financial experience and 400 years of portfolio management/research experience, maintaining a track record that dates back to 1994. As of December 31, 2024, Confluence had $12.7 billion in assets under management and advisement (assets under management = $7.3 billion; assets under advisement = $5.4 billion).

ADDITIONAL INFORMATION / FORWARD-LOOKING STATEMENTS

This press release is not intended to, and shall not, constitute an offer to purchase or sell shares of the FGB or the new ETF; nor is this press release intended to solicit a proxy from any shareholder of FGB. FGB and its trustees and officers, FTA, and certain of their respective officers and employees, and other persons may be deemed under the rules of the Securities and Exchange Commission to be participants in the solicitation of proxies from shareholders in connection with the matters described above. Information about FGB’s trustees and officers, FTA and its officers and employees, and other persons may be found in the proxy statement.

Certain statements made in this news release that are not historical facts are referred to as “forward-looking statements” under the U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the historical experience of FTA and the funds managed by FTA and its present expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FTA and FGB undertake no responsibility to update publicly or revise any forward-looking statements.

Jeff Margolin – (630) 517-7643

Jim Dykas – (630) 517-7665

 

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Asset Management Professional Services Finance

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Core Scientific Announces February 2025 Production and Operations Updates

Core Scientific Announces February 2025 Production and Operations Updates

Earned 215 Self-Mined Bitcoin for a Total of 471 Bitcoin Year-to-Date and Our Customers Earned an Estimated 16 Bitcoin at Our Data Centers in February

AUSTIN, Texas–(BUSINESS WIRE)–Core Scientific, Inc. (Nasdaq: CORZ) (“Core Scientific” or “the Company”), a leader in digital infrastructure for high-performance computing and bitcoin mining,today released unaudited production and operations updates for February 2025.

Key Metrics Summary (unaudited)

Metric

February 2025

January 2025

Self-Mining Bitcoin Earned1

215

256

Hosting Bitcoin Earned by Customers2

16

17

Average Self-Mined Bitcoin Earned/Day

7.7

8.3

Self-Mining Energized Hash rate3

18.4

18.5

Hosting Energized Hash rate4

1.0

1.0

Total Energized Hash rate

19.4

19.5

Average Self-Mining Fleet Efficiency (J/TH)5

24.4

24.5
___________

1Self-MiningBitcoin Earned represents bitcoin rewards earned by bitcoin miners owned and operated by Core Scientific

2HostingBitcoin Earned represents estimated bitcoin rewards earned by customer-owned miners installed and operated by Core Scientific in our data centers, including bitcoin rewards earned by customers and paid to the Company pursuant to proceeds sharing agreements

3Self-Mining Energized Hash Rate represents the total rated capacity of all Company-owned bitcoin miners installed and operating in Core Scientific’s data centers. Includes previous generation miners removed to accommodate new miners and then re-deployed opportunistically to exploit favorable mining economics

4Hosting Energized Hash Rate represents the total rated capacity of all hosted bitcoin miners owned by customers, installed and operated by Core Scientific in our data centers

5Average Self-Mining Fleet Efficiency (J/TH) represents the weighted average power consumption in Joules per terahash based on the actual efficiency of each model of miner operating in Core Scientific’s owned self-mining fleet˙

Data Centers

As of month-end, the Company operated approximately 166,000 bitcoin miners in our data centers for both self-mining and hosting, representing a total energized hash rate of 19.4 EH/s.

Digital Asset Self-Mining

Core Scientific earned 215 bitcoin in February from its owned fleet of miners. As of month end, the Company operated approximately 159,000 owned bitcoin miners, representing approximately 96% of the bitcoin miners operating in its data centers and a total energized hash rate of 18.4 EH/s.

Hosting Services for Bitcoin Mining

In addition to its self-mining fleet, Core Scientific provided data center hosting services, technology and operating support for approximately 7,000 hosted, customer-owned bitcoin miners, representing approximately 4% of the bitcoin miners operating in the Company’s data centers as of February 28, 2025. Customer-owned bitcoin miners earned an estimated 16 bitcoin in February.

Grid Support

The Company reduced the consumption of power at its data centers on multiple occasions, delivering 50,373 megawatt hours to local electrical grids.

ABOUT CORE SCIENTIFIC

Core Scientific is a leader in digital infrastructure for high-performance computing. The company operates dedicated, purpose-built facilities and is a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own large fleet of computers (“miners”) to earn digital assets for our own account and to provide hosting services for large bitcoin mining customers and we are in the process of allocating and converting a significant portion of our nine operational data centers in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1) and Texas (3), and our facility in development in Oklahoma to support artificial intelligence-related workloads under a series of contracts that entail the modification of certain of our data centers to deliver hosting services for high-performance computing (“HPC”). To learn more, visit www.corescientific.com.

FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “opportunity,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “potential,” “hope” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements include, but are not limited, statements regarding potential benefits of or expectations regarding the strategic relationship, agreements and contemplated transactions with CoreWeave, impacts on the Company’s revenue, financial and other operating results, completion and timing of certain events, impacts on the Company’s trading multiple and ability to deliver shareholder value, the Company’s intention and ability to capitalize on additional or related opportunities, and the Company’s plans, objectives, expectations and intentions. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, which could include, but are not limited to, unanticipated difficulties or expenditures relating to the strategic relationship, agreements and contemplated transactions with CoreWeave; the possibility that the anticipated revenue, financial and other operational benefits of the strategic relationship, agreements and contemplated transactions and additional opportunities are not realized when expected or at all; disruptions of current plans and operations caused by the announcement and execution of the strategic relationship, agreements and contemplated transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business, regulatory or employee relationships, including those resulting from the announcement or execution of the strategic relationship, agreements and contemplated transactions; unexpected risks or the materialization of risks that are greater than anticipated; unavailability of expected power or materially adverse changes in the terms associated with available power; occurrence of any event, change or other circumstance that could give rise to the termination of the contracts with CoreWeave; delays in required approvals; the availability of government incentives; and legal proceedings, judgments or settlements in connection with the strategic relationship, agreements and contemplated transactions, as well as other risk factors set forth in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including those identified in the Company’s reports filed with the Securities and Exchange Commission, and if any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Accordingly, undue reliance should not be placed upon the forward-looking statements. The Company does not assume any duty or obligation (and does not undertake) to update or supplement any forward-looking statements.

Please follow us on:

https://www.linkedin.com/company/corescientific/

https://X.com/core_scientific

https://www.youtube.com/@Core_Scientific

Investors:

[email protected]

Media:

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KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Blockchain Cryptocurrency Finance Artificial Intelligence Data Management Professional Services Technology Fintech

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ParkOhio Announces Fourth Quarter and Full Year 2024 Results

ParkOhio Announces Fourth Quarter and Full Year 2024 Results

Fourth quarter:

  • Net sales from continuing operations of $388 million
  • GAAP EPS from continuing operations of $0.41 per diluted share vs. $0.54 in Q4 2023
  • Adjusted EPS from continuing operations of $0.67 per diluted share, up 24% vs. $0.54 in Q4 2023
  • Income from continuing operations of PKOH shareholders of $5.6 million vs. $6.9 million in Q4 2023
  • EBITDA, as defined, of $37 million, up 27% from $29 million in Q4 2023
  • Strong Q4 operating cash flows of $26 million and free cash flow of $29 million

Full year:

  • Net sales from continuing operations of $1.656 billion
  • Gross margin increased 60 basis points to 17.0%
  • GAAP EPS from continuing operations of $3.19 per diluted share compared to $2.72 in 2023
  • Adjusted EPS from continuing operations of $3.59 per diluted share, up 17% compared to $3.07 per diluted share in 2023
  • Income from continuing operations of PKOH shareholders of $42 million vs. $34 million in 2023
  • EBITDA from continuing operations improved 13% to $152 million from $134 million in 2023
  • Full year operating cash flows of $35 million and free cash flow of $15 million

CLEVELAND, OHIO–(BUSINESS WIRE)–
Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the fourth quarter and full year 2024.

“We concluded 2024 by continuing to demonstrate improved metrics around margin, cash flow and leverage even in a more moderate growth environment. Having spent the last several years reshaping our business portfolio, we believe we enter 2025 with a faster growing, more profitable, less capital intensive and more predictable business model through the business cycle,” said Matthew V. Crawford, Chairman and Chief Executive Officer.

FOURTH QUARTER AND FULL YEAR CONSOLIDATED RESULTS FROM CONTINUING OPERATIONS

In the fourth quarter of 2024, net sales from continuing operations were $388.4 million compared to $389.3 million in the 2023 period. Income from continuing operations attributable to ParkOhio common shareholders in the fourth quarter of 2024 was $5.6 million, or $0.41 per diluted share, compared to $6.9 million, or $0.54 per diluted share in the fourth quarter of 2023. Adjusted EPS in the fourth quarter of 2024, which excludes restructuring and other special items and a charge of $5.0 million in Other Expense for a litigation matter that originated in 2016 in our assembly components business, was $0.67 per diluted share in the fourth quarter of 2024 compared to $0.54 per diluted share in the 2023 period, an increase of 24% year-over-year. The improvement was driven by strong sales and margins in our Supply Technologies segment, continued strong results in the capital equipment business in our Engineered Products segment, and income tax benefits in the 2024 period related to research and development tax credits and reversals of certain tax valuation allowances. EBITDA, as defined increased 27% year-over-year to $37.0 million, or 9.5% of net sales, from $29.1 million in the 2023 period. Please refer to the table that follows for a reconciliation of income from continuing operations attributable to ParkOhio common shareholders to adjusted income from continuing operations attributable to ParkOhio common shareholders and income from continuing operations attributable to ParkOhio common shareholders to EBITDA, as defined.

Full year 2024 net sales were $1.656 billion compared to $1.660 billion in 2023. Gross margin increased 60 basis points to 17.0% in 2024 compared to 2023. Income from continuing operations attributable to ParkOhio common shareholders in 2024 was $42.2 million, or $3.19 per diluted share, compared to $34.0 million, or $2.72 per diluted share in 2023. Excluding special items, adjusted EPS from continuing operations was $3.59 per diluted share in 2024, an increase of 17% compared to $3.07 per diluted share in 2023. EBITDA, as defined in 2024 was $151.7 million, an increase of 13% compared to $134.2 million in 2023. Please refer to the tables that follow for a reconciliation of income from continuing operations attributable to ParkOhio common shareholders to adjusted income from continuing operations attributable to ParkOhio common shareholders and income from continuing operations attributable to ParkOhio common shareholders to EBITDA, as defined.

FOURTH QUARTER SEGMENT RESULTS FROM CONTINUING OPERATIONS

In our Supply Technologies segment, net sales in the fourth quarter of 2024 were $181.8 million, an increase of 2% compared to $177.5 million in the fourth quarter a year ago, driven by continued strong demand in many of the Company’s key end markets, with the largest increases in aerospace and defense, heavy-duty truck, electrical distribution and consumer electronics, partially offset by decreases in the power sports and industrial and agricultural equipment end markets. Sales in the aerospace and defense end market increased 21% in the 2024 period compared to the same period a year ago. The increase in our net sales was also driven by higher customer demand throughout North America and Europe for our proprietary products in our fastener manufacturing business. Segment operating income was $15.9 million in the fourth quarter of 2024 compared to $14.0 million in the fourth quarter 2023, and operating income margin was 80 basis points higher in the 2024 fourth quarter compared to the same quarter a year ago. The profit improvement in the fourth quarter of 2024 was driven by an increase in sales of higher-margin products, strong operational execution and continued strong demand in our fastener manufacturing business. For the full year 2024, net sales increased 2% to a record $775.8 million, driven by strength in the aerospace and defense end market and increased demand for our proprietary fastener products. Operating margin improved 200 basis points to a record 9.7%, driven by an increase in sales of higher-margin products; profit improvement initiatives in our supply chain business; and continued strong demand in our fastener manufacturing business.

In Assembly Components, net sales in the fourth quarter were $89.7 million compared to $97.0 million in the 2023 fourth quarter. The lower net sales in the 2024 quarter were impacted by OEM plant shut down schedules in December, lower product pricing on certain legacy programs, and lower unit volumes particularly on end-of-life programs. Segment operating income was $3.9 million in the fourth quarter of 2024 compared to $6.5 million in the 2023 quarter. On an adjusted basis excluding restructuring charges of $0.6 million in the 2024 period related to plant consolidation, operating income was $4.5 million in the 2024 period compared to $6.5 million in the 2023 period. The decrease in profitability in the fourth quarter of 2024 was driven by the lower sales levels, which more than offset the benefit of profit-improvement initiatives implemented over the past two years. For the full year 2024, net sales were $398.7 compared to $427.8 million in 2023, and segment operating income was $25.4 million in 2024 compared to $33.4 million a year ago, both driven by lower product pricing on certain legacy programs and lower unit volumes particularly on end-of-life programs.

In Engineered Products, net sales were $116.9 million in the 2024 fourth quarter, up 2% compared to $114.8 million in last year’s fourth quarter, driven by increased demand in our capital equipment business for both new capital equipment and aftermarket products and services. In our capital equipment business, new equipment backlog totaled $145 million at December 31, 2024 compared to $162 million at December 31, 2023. Bookings of new equipment in 2024 totaled $164 million compared to $175 million in 2023. In our forged and machined products business, fourth quarter 2024 sales were down 3% compared to the same quarter a year ago. Segment operating income in the 2024 fourth quarter was $3.1 million compared to $3.8 million in the 2023 quarter. On an adjusted basis excluding special charges in 2024 related to plant closure and other special charges totaling $1.9 million, segment operating income improved to $5.0 million in the fourth quarter of 2024 compared to $3.8 million in the 2023 period. Excluding special charges, the profitability increase in the 2024 quarter was driven by higher sales and improved profitability in our capital equipment business, partially offset by higher operating costs and lower sales in our forged and machined products business. For the full year 2024, net sales increased 3% to a record $481.7 million, driven by strong backlogs at the start of the year, continued strong demand for new capital equipment and a 12% year-over-year increase in our sales of aftermarket products and services. Operating income and margins were lower in 2024, driven by the higher operating costs in our forged and machined products business.

LIQUIDITY AND CASH FLOW

At December 31, 2024, our total liquidity was $198.2 million, which included cash on hand of $53.1 million and $145.1 million of unused borrowing availability under our credit arrangements and reflected an increase of $32.2 million compared to a year ago. In 2024, operating cash flows were $35.0 million and free cash flow was $15.1 million, which included $11.5 million of proceeds from sales of assets in connection with our plant consolidation actions. During 2024, we entered into an at-the-market (“ATM”) program authorizing the sale of up to $50.0 million of the Company’s common stock. Under the program, through December 31, 2024, we sold 0.5 million shares for aggregate net proceeds of $15.9 million. In addition, we sold an additional 0.5 million shares in 2024 outside of the ATM program for aggregate net proceeds of $14.5 million. The total net proceeds of $30.4 million were used to repay a portion of our outstanding indebtedness. At December 31, 2024, our net debt leverage as calculated using our EBITDA, as defined was 3.8x, an improvement from 4.4x a year ago.

2025 OUTLOOK – CONTINUING OPERATIONS

For 2025, we expect year-over-year sales growth of 2% to 4%, driven by stable demand in most of our key end markets. We also expect year-over-year improvement in adjusted operating income, adjusted net income, EBITDA as defined and free cash flow. As a result of recent actions with respect to tariffs on goods manufactured abroad, costs for certain goods which we import into the United States, including certain raw materials and components, are expected to increase. We are working with our supply chains and customers to mitigate the impact of such tariffs. Conversely, our U.S. manufacturing plants may realize a benefit from tariffs as a result of higher production and localized sourcing back into the U.S.

CONFERENCE CALL

A conference call reviewing ParkOhio’s fourth quarter and full year 2024 results will be broadcast live over the Internet on Thursday, March 6, commencing at 10:00 am Eastern Time. Simply log on to http://www.pkoh.com. An investor presentation is available on the Company’s website.

ParkOhio is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. Headquartered in Cleveland, Ohio, ParkOhio operates approximately 130 manufacturing sites and supply chain logistics facilities worldwide, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.

This news release contains forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: the impact supply chain and logistic issues have on our business, results of operations, financial position and liquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricing pressures and product innovation; demand for our products and services; the impact of labor disturbances affecting our customers; raw material availability and pricing; fluctuations in energy costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial condition of our customers, including the impact of any bankruptcies; our ability to successfully integrate recent and future acquisitions into existing operations; the amounts and timing, if any, of purchases of our common stock; changes in general economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions and changing government policies, laws and regulations, including those related to the current global uncertainties and crises, such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or hostilities, including the conflicts between Russia and Ukraine and in the Middle East, or political unrest, including the rising tension between China and the United States; public health issues, including the outbreak of infectious diseases and any impact on our facilities and operations and our customers and suppliers; our ability to meet various covenants, including financial covenants, contained in the agreements governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital; potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and foreign governmental regulations, including those affecting the environment or import and export controls and other trade barriers; inherent uncertainties involved in assessing our potential liability for environmental remediation-related activities; the outcome of pending and future litigation and other claims and disputes with customers; our dependence on the automotive and heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our ability to negotiate contracts with labor unions; our dependence on key management; our dependence on information systems; our ability to continue to pay cash dividends, and the timing and amount of any such dividends; and the other factors we describe under “Item 1A. Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and other uncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved. The Company assumes no obligation to update the information in this release.

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(In millions, except per share data)

Net sales

$

388.4

 

 

$

389.3

 

 

$

1,656.2

 

 

$

1,659.7

 

Cost of sales

 

323.9

 

 

 

325.2

 

 

 

1,374.8

 

 

 

1,388.3

 

Selling, general and administrative expenses

 

45.1

 

 

 

46.4

 

 

 

187.4

 

 

 

181.5

 

Restructuring and other special charges

 

2.5

 

 

 

—

 

 

 

4.9

 

 

 

6.6

 

Gains on sales of assets, net

 

(2.5

)

 

 

—

 

 

 

(2.5

)

 

 

(0.8

)

Other expense

 

5.0

 

 

 

—

 

 

 

5.0

 

 

 

—

 

Operating income

 

14.4

 

 

 

17.7

 

 

 

86.6

 

 

 

84.1

 

Other components of pension income and other postretirement benefits expense, net

 

1.4

 

 

 

0.6

 

 

 

5.2

 

 

 

2.5

 

Interest expense, net

 

(11.4

)

 

 

(11.7

)

 

 

(47.4

)

 

 

(45.1

)

Income from continuing operations before income taxes

 

4.4

 

 

 

6.6

 

 

 

44.4

 

 

 

41.5

 

Income tax benefit (expense)

 

0.4

 

 

 

—

 

 

 

(4.9

)

 

 

(8.5

)

Income from continuing operations

 

4.8

 

 

 

6.6

 

 

 

39.5

 

 

 

33.0

 

Loss attributable to noncontrolling interest

 

0.8

 

 

 

0.3

 

 

 

2.7

 

 

 

1.0

 

Income from continuing operations attributable to ParkOhio common shareholders

 

5.6

 

 

 

6.9

 

 

 

42.2

 

 

 

34.0

 

Loss from discontinued operations, net of tax

 

(5.1

)

 

 

(21.4

)

 

 

(10.4

)

 

 

(26.2

)

Net income (loss) attributable to ParkOhio common shareholders

$

0.5

 

 

$

(14.5

)

 

$

31.8

 

 

$

7.8

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share attributable to ParkOhio common shareholders:

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Continuing operations

$

0.41

 

 

$

0.56

 

 

$

3.27

 

 

$

2.76

 

Discontinued operations

 

(0.37

)

 

 

(1.73

)

 

 

(0.81

)

 

 

(2.13

)

Total

$

0.04

 

 

$

(1.17

)

 

$

2.46

 

 

$

0.63

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

Continuing operations

$

0.41

 

 

$

0.54

 

 

$

3.19

 

 

$

2.72

 

Discontinued operations

 

(0.37

)

 

 

(1.69

)

 

 

(0.79

)

 

 

(2.10

)

Total

$

0.04

 

 

$

(1.15

)

 

$

2.40

 

 

$

0.62

 

 

 

 

 

 

 

 

 

Weighted-average shares used to compute earnings (loss) per share:

 

 

 

 

 

 

 

Basic

 

13.6

 

 

 

12.4

 

 

 

12.9

 

 

 

12.3

 

Diluted

 

13.9

 

 

 

12.7

 

 

 

13.2

 

 

 

12.5

 

 

 

 

 

 

 

 

 

Cash dividends per common share

$

0.125

 

 

$

0.125

 

 

$

0.50

 

 

$

0.50

 

 

 

 

 

 

 

 

 

Other financial data:

 

 

 

 

 

 

 

EBITDA, as defined

$

37.0

 

 

$

29.1

 

 

$

151.7

 

 

$

134.2

 

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Adjusted earnings from continuing operations is a non-GAAP financial measure that the Company is providing in this press release. Adjusted earnings from continuing operations is income from continuing operations calculated in accordance with generally accepted accounting principles (“GAAP”), adjusted for special items. The Company presents this non-GAAP financial measure because management uses adjusted earnings from continuing operations to compare its operating performance on a consistent basis over multiple periods because they remove the impact of certain significant non-cash credits or charges and certain infrequent items impacting income. Adjusted earnings is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, income from continuing operations calculated in accordance with GAAP. Adjusted income from continuing operations herein may not be comparable to similarly titled measures of other companies. The following table reconciles income from continuing operations to adjusted earnings from continuing operations:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2024

 

2023

 

2024

 

2023

 

Earnings

 

Diluted

EPS

 

Earnings

 

Diluted

EPS

 

Earnings

 

Diluted

EPS

 

Earnings

 

Diluted

EPS

 

(In millions, except for earnings per share (EPS))

Income from continuing operations attributable to ParkOhio common shareholders

$

5.6

 

 

$

0.41

 

 

$

6.9

 

$

0.54

 

$

42.2

 

 

$

3.19

 

 

$

34.0

 

 

$

2.72

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other special charges

 

2.5

 

 

 

0.18

 

 

 

—

 

 

—

 

 

4.6

 

 

 

0.35

 

 

 

6.5

 

 

 

0.51

 

Acquisition-related expenses

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

0.3

 

 

 

0.02

 

 

 

0.1

 

 

 

0.01

 

Gains on sales of assets, net

 

(2.5

)

 

 

(0.18

)

 

 

—

 

 

—

 

 

(2.5

)

 

 

(0.19

)

 

 

(0.8

)

 

 

(0.06

)

Other expense(1)

 

5.0

 

 

 

0.36

 

 

 

 

 

 

 

5.0

 

 

 

0.38

 

 

 

 

 

Tax effect of adjustments

 

(1.2

)

 

 

(0.09

)

 

 

—

 

 

—

 

 

(1.8

)

 

 

(0.14

)

 

 

(1.3

)

 

 

(0.11

)

Non-controlling interest impact

 

(0.1

)

 

 

(0.01

)

 

 

—

 

 

—

 

 

(0.3

)

 

 

(0.02

)

 

 

—

 

 

 

—

 

Adjusted earnings from continuing operations

$

9.3

 

 

$

0.67

 

 

$

6.9

 

$

0.54

 

$

47.5

 

 

$

3.59

 

 

$

38.5

 

 

$

3.07

 

 

(1) During the fourth quarter of 2024, we recorded a charge of $5.0 million in Other Expense for a litigation matter that originated in 2016 in our assembly components business, representing our estimate of the reserve as of December 31, 2024.

The following table shows the impact of these adjustments on our segment results (continuing operations):

 

Cost of Sales

 

SG&A

 

Total

 

Cost of Sales

 

SG&A

 

Total

 

(In millions)

 

Three Months Ended December 31, 2024

 

Three Months Ended December 31, 2023

Supply Technologies

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

Assembly Components

 

—

 

 

0.6

 

 

0.6

 

 

—

 

 

—

 

 

—

Engineered Products

 

—

 

 

1.9

 

 

1.9

 

 

—

 

 

—

 

 

—

Corporate

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Total continuing operations

$

—

 

$

2.5

 

$

2.5

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

Year Ended December 31, 2023

Supply Technologies

$

—

 

$

0.2

 

$

0.2

 

$

—

 

$

0.2

 

$

0.2

Assembly Components

 

—

 

 

1.1

 

 

1.1

 

 

1.5

 

 

—

 

 

1.5

Engineered Products

 

—

 

 

3.6

 

 

3.6

 

 

0.2

 

 

4.7

 

 

4.9

Corporate

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

Total continuing operations

$

—

 

$

4.9

 

$

4.9

 

$

1.7

 

$

4.9

 

$

6.6

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

EBITDA, as defined is a non-GAAP financial measure that the Company is providing in this press release. EBITDA, as defined reflects income from continuing operations attributable to ParkOhio common shareholders before interest expense, income taxes, depreciation and amortization, and also excludes certain charges and corporate-level expenses as defined in the Company’s current revolving credit facility. The Company presents this non-GAAP financial measure because management uses EBITDA, as defined to assess the Company’s performance and believes that EBITDA is useful to investors as an indication of the Company’s compliance with its Debt Service Ratio covenant in its revolving credit facility. Additionally, EBITDA, as defined is a measure used under the Company’s revolving credit facility to determine whether the Company may incur additional debt under such facility. EBITDA, as defined is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, net income or cash flow information calculated in accordance with GAAP. EBITDA, as defined herein may not be comparable to similarly titled measures of other companies. The following table reconciles income from continuing operations attributable to ParkOhio common shareholders to EBITDA from continuing operations, as defined:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(In millions)

Income from continuing operations attributable to ParkOhio common shareholders

$

5.6

 

$

6.9

 

$

42.2

 

$

34.0

 

Add back:

 

 

 

 

 

 

 

Interest expense, net

 

11.4

 

 

11.7

 

 

47.4

 

 

45.1

 

Income tax expense

 

—

 

 

—

 

 

4.9

 

 

8.5

 

Depreciation and amortization

 

8.4

 

 

8.2

 

 

33.6

 

 

31.7

 

Stock-based compensation

 

1.5

 

 

1.6

 

 

5.6

 

 

6.5

 

Restructuring, business optimization and other costs

 

1.6

 

 

—

 

 

2.7

 

 

6.5

 

Other expense

 

5.0

 

 

—

 

 

5.0

 

 

—

 

Loss on sale of assets

 

—

 

 

—

 

 

—

 

 

0.4

 

Acquisition-related expenses

 

—

 

 

—

 

 

0.3

 

 

0.1

 

EBITDA loss attributable to Designated Subsidiary

 

3.4

 

 

0.7

 

 

9.9

 

 

2.8

 

Other

 

0.1

 

 

—

 

 

0.1

 

 

(1.4

)

EBITDA, as defined

$

37.0

 

$

29.1

 

$

151.7

 

$

134.2

 

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

(In millions)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

53.1

 

$

54.8

Accounts receivable, net

 

 

249.5

 

 

263.3

Inventories, net

 

 

422.9

 

 

411.1

Other current assets

 

 

110.5

 

 

95.2

Total current assets

 

 

836.0

 

 

824.4

Property, plant and equipment, net

 

 

182.9

 

 

184.9

Operating lease right-of-use assets

 

 

40.3

 

 

44.7

Goodwill

 

 

111.7

 

 

110.2

Intangible assets, net

 

 

71.9

 

 

73.3

Pension assets

 

 

85.3

 

 

75.1

Other long-term assets

 

 

37.0

 

 

28.1

Total assets

 

$

1,365.1

 

$

1,340.7

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

194.8

 

$

204.0

Current portion of long-term debt and short-term debt

 

 

8.4

 

 

9.4

Current portion of operating lease liabilities

 

 

10.7

 

 

10.6

Accrued employee compensation

 

 

35.7

 

 

31.8

Other accrued expenses

 

 

111.5

 

 

107.8

Total current liabilities

 

 

361.1

 

 

363.6

Long-term liabilities, less current portion:

 

 

 

 

Long-term debt

 

 

618.3

 

 

633.4

Long-term operating lease liabilities

 

 

29.8

 

 

34.4

Deferred income taxes

 

 

11.7

 

 

9.0

Other long-term liabilities

 

 

7.1

 

 

10.4

Total long-term liabilities

 

 

666.9

 

 

687.2

Park-Ohio Holdings Corp. and Subsidiaries shareholders’ equity

 

 

330.8

 

 

280.4

Noncontrolling interests

 

 

6.3

 

 

9.5

Total equity

 

 

337.1

 

 

289.9

Total liabilities and shareholders’ equity

 

$

1,365.1

 

$

1,340.7

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

(In millions)

OPERATING ACTIVITIES FROM CONTINUING OPERATIONS

 

 

 

Income from continuing operations

$

39.5

 

 

$

33.0

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities from continuing operations:

 

 

 

Depreciation and amortization

 

33.6

 

 

 

31.7

 

Stock-based compensation

 

5.6

 

 

 

6.5

 

Gains on sales of assets, net

 

(2.5

)

 

 

(0.8

)

Deferred income taxes

 

(14.6

)

 

 

(7.2

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

12.1

 

 

 

(14.1

)

Inventories

 

(14.8

)

 

 

(1.3

)

Prepaid and other current assets

 

(14.1

)

 

 

(1.2

)

Accounts payable and accrued expenses

 

(2.7

)

 

 

3.3

 

Other

 

(7.1

)

 

 

3.5

 

Net cash provided by operating activities from continuing operations

 

35.0

 

 

 

53.4

 

INVESTING ACTIVITIES FROM CONTINUING OPERATIONS

 

 

 

Purchases of property, plant and equipment

 

(31.4

)

 

 

(28.2

)

Proceeds from sales of assets

 

11.5

 

 

 

2.0

 

Proceeds from sale of discontinued operations

 

—

 

 

 

15.5

 

Business acquisitions, net of cash acquired

 

(11.0

)

 

 

(1.2

)

Net cash used in investing activities from continuing operations

 

(30.9

)

 

 

(11.9

)

FINANCING ACTIVITIES FROM CONTINUING OPERATIONS

 

 

 

Payments on revolving credit facility, net

 

(15.0

)

 

 

(22.3

)

Payments on term loans and other debt

 

(7.5

)

 

 

(7.2

)

Proceeds from other long-term debt

 

5.8

 

 

 

4.3

 

Proceeds from finance lease facilities, net

 

0.7

 

 

 

0.9

 

Net proceeds from common stock issuances

 

30.4

 

 

 

—

 

Payments related to prior acquisitions

 

(3.0

)

 

 

(2.9

)

Dividends

 

(7.2

)

 

 

(7.4

)

Payments of withholding taxes on share awards

 

(2.6

)

 

 

(2.0

)

Net cash provided by (used in) financing activities from continuing operations

 

1.6

 

 

 

(36.6

)

DISCONTINUED OPERATIONS1:

 

 

 

Total used in operating activities

 

(5.2

)

 

 

(2.9

)

Total used in investing activities

 

—

 

 

 

(3.9

)

Total used in financing activities

 

—

 

 

 

(2.4

)

Decrease in cash and cash equivalents from discontinued operations

 

(5.2

)

 

 

(9.2

)

Effect of exchange rate changes on cash

 

(2.2

)

 

 

0.9

 

Decrease in cash and cash equivalents

 

(1.7

)

 

 

(3.4

)

Cash and cash equivalents at beginning of the period

 

54.8

 

 

 

58.2

 

Cash and cash equivalents at end of year

$

53.1

 

 

$

54.8

 

Income taxes paid, net

$

14.5

 

 

$

7.3

 

Interest paid

$

47.0

 

 

$

47.6

 

 

(1) – Our continuing operations exclude the results of our Aluminum Products business unit, which was sold on December 29, 2023 and presented in discontinued operations for all periods presented.

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION (UNAUDITED)
 

 

Three Months Ended December 31, 2024

 

Supply

Technologies

 

Assembly

Components

 

Engineered

Products

 

Corporate

 

Total

 

(In millions)

 

 

Net sales

$

181.8

 

$

89.7

 

$

116.9

 

$

—

 

 

$

388.4

 

Cost of sales

 

147.9

 

 

80.6

 

 

95.4

 

 

—

 

 

 

323.9

 

Selling, general and administrative expenses

 

18.0

 

 

4.6

 

 

16.5

 

 

6.0

 

 

 

45.1

 

Restructuring, acquisition-related and other special charges

 

—

 

 

0.6

 

 

1.9

 

 

—

 

 

 

2.5

 

Segment operating income (loss)

$

15.9

 

$

3.9

 

$

3.1

 

$

(6.0

)

 

 

16.9

 

Gains on sales of assets

 

 

 

 

 

 

 

 

 

(2.5

)

Other expense

 

 

 

 

 

 

 

 

 

5.0

 

Operating income

 

 

 

 

 

 

 

 

 

14.4

 

Other components of pension and other postretirement benefits income, net

 

 

 

 

 

 

 

 

 

1.4

 

Interest expense, net

 

 

 

 

 

 

 

 

 

(11.4

)

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

4.4

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

Supply

Technologies

 

Assembly

Components

 

Engineered

Products

 

Corporate

 

Total

 

(In millions)

 

 

Net sales

$

177.5

 

$

97.0

 

$

114.8

 

$

—

 

 

$

389.3

 

Cost of sales

 

146.2

 

 

84.8

 

 

94.2

 

 

—

 

 

 

325.2

 

Selling, general and administrative expenses

 

17.3

 

 

5.7

 

 

16.8

 

 

6.6

 

 

 

46.4

 

Operating income (loss)

$

14.0

 

$

6.5

 

$

3.8

 

$

(6.6

)

 

 

17.7

 

Other components of pension and other postretirement benefits income, net

 

 

 

 

 

 

 

 

 

0.6

 

Interest expense, net

 

 

 

 

 

 

 

 

 

(11.7

)

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

6.6

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

Supply

Technologies

 

Assembly

Components

 

Engineered

Products

 

Corporate

 

Total

 

(In millions)

 

 

Net sales

$

775.8

 

$

398.7

 

$

481.7

 

$

—

 

 

$

1,656.2

 

Cost of sales

 

631.5

 

 

353.6

 

 

389.7

 

 

—

 

 

 

1,374.8

 

Selling, general and administrative expenses

 

69.1

 

 

18.6

 

 

70.7

 

 

29.0

 

 

 

187.4

 

Restructuring and other special charges

 

0.2

 

 

1.1

 

 

3.6

 

 

—

 

 

 

4.9

 

Segment operating income (loss)

$

75.0

 

$

25.4

 

$

17.7

 

$

(29.0

)

 

 

89.1

 

Gains on sales of assets, net

 

 

 

 

 

 

 

 

 

(2.5

)

Other expense

 

 

 

 

 

 

 

 

 

5.0

 

Operating income

 

 

 

 

 

 

 

 

 

86.6

 

Other components of pension and other postretirement benefits income, net

 

 

 

 

 

 

 

 

 

5.2

 

Interest expense, net

 

 

 

 

 

 

 

 

 

(47.4

)

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

44.4

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

Supply

Technologies

 

Assembly

Components

 

Engineered

Products

 

Corporate

 

Total

 

(In millions)

 

 

Net sales

$

763.4

 

$

427.8

 

$

468.5

 

$

—

 

 

$

1,659.7

 

Cost of sales

 

639.1

 

 

369.5

 

 

379.7

 

 

—

 

 

 

1,388.3

 

Selling, general and administrative expenses

 

65.1

 

 

23.4

 

 

64.8

 

 

28.2

 

 

 

181.5

 

Restructuring, acquisition-related and other special charges

 

0.2

 

 

1.5

 

 

4.9

 

 

—

 

 

 

6.6

 

Segment operating income (loss)

$

59.0

 

$

33.4

 

$

19.1

 

$

(28.2

)

 

 

83.3

 

Gains on sales of assets, net

 

 

 

 

 

 

 

 

 

(0.8

)

Operating income

 

 

 

 

 

 

 

 

 

84.1

 

Other components of pension and other postretirement benefits income, net

 

 

 

 

 

 

 

 

 

2.5

 

Interest expense, net

 

 

 

 

 

 

 

 

 

(45.1

)

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

41.5

 

PARK-OHIO HOLDINGS CORP. AND SUBSIDIARIES

SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Adjusted operating income is a non-GAAP financial measure that the Company is providing in this press release. Adjusted operating income is calculated as operating income (loss) plus adjustments for plant closure and consolidation, severance and other. The Company presents this non-GAAP financial measure because management uses adjusted operating income to compare its operating performance on a consistent basis over multiple periods because they remove the impact of certain significant non-cash credits or charges and certain infrequent items impacting income (loss). Adjusted operating income is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, earnings in accordance with GAAP. Adjusted operating income herein may not be comparable to similarly titled measures of other companies. The following table reconciles adjusted operating income to operating income (loss):

 

 

Three Months Ended December 31,

 

2024

 

2023

 

(In millions)

Operating income (loss):

As reported

 

Adjustments

 

As adjusted

 

As reported

 

Adjustments

 

As adjusted

Supply Technologies

$

15.9

 

 

$

—

 

 

$

15.9

 

 

$

14.0

 

 

$

—

 

$

14.0

 

Assembly Components

 

3.9

 

 

 

0.6

 

 

 

4.5

 

 

 

6.5

 

 

 

—

 

 

6.5

 

Engineered Products

 

3.1

 

 

 

1.9

 

 

 

5.0

 

 

 

3.8

 

 

 

—

 

 

3.8

 

Corporate

 

(6.0

)

 

 

—

 

 

 

(6.0

)

 

 

(6.6

)

 

 

—

 

 

(6.6

)

Gains on sales of assets

 

2.5

 

 

 

(2.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

Other expense

 

(5.0

)

 

 

5.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

Adjusted operating income

$

14.4

 

 

$

5.0

 

 

$

19.4

 

 

$

17.7

 

 

$

—

 

$

17.7

 

 

Year Ended December 31,

 

2024

 

2023

 

(In millions)

Operating income (loss):

As reported

 

Adjustments

 

As adjusted

 

As reported

 

Adjustments

 

As adjusted

Supply Technologies

$

75.0

 

 

$

0.2

 

 

$

75.2

 

 

$

59.0

 

 

$

0.2

 

 

$

59.2

 

Assembly Components

 

25.4

 

 

 

1.1

 

 

 

26.5

 

 

 

33.4

 

 

 

1.5

 

 

 

34.9

 

Engineered Products

 

17.7

 

 

 

3.6

 

 

 

21.3

 

 

 

19.1

 

 

 

4.9

 

 

 

24.0

 

Corporate

 

(29.0

)

 

 

—

 

 

 

(29.0

)

 

 

(28.2

)

 

 

—

 

 

 

(28.2

)

Gains on sales of assets

 

2.5

 

 

 

(2.5

)

 

 

—

 

 

 

0.8

 

 

 

(0.8

)

 

 

—

 

Other expense

 

(5.0

)

 

 

5.0

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted operating income

$

86.6

 

 

$

7.4

 

 

$

94.0

 

 

$

84.1

 

 

$

5.8

 

 

$

89.9

 

 

Matthew V. Crawford

Park-Ohio Holdings Corp.

(440) 947-2000

KEYWORDS: United States North America Ohio

INDUSTRY KEYWORDS: Manufacturing Logistics/Supply Chain Management Transport Machinery Engineering

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