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Fulgent Reports Fourth Quarter and Full Year 2024 Financial Results

• Full Year Total Revenue of $283.5 million

• Full Year Core Revenue grows 7% year-over-year to $281.2 million

• Ended 2024 with $828.6 million of cash, cash equivalents, restricted cash, and investments in marketable securities, representing cash per share of $26.87

EL MONTE, Calif.–(BUSINESS WIRE)–
Fulgent Genetics, Inc. (NASDAQ: FLGT) (“Fulgent,” or the “Company”), a technology-based company with a well-established laboratory services business and a therapeutic development business, today announced financial results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Results:

• Total Revenue of $76.2 million

• Core Revenue¹ grew 14% year-over-year to $76.0 million

• GAAP loss of $5.9 million, or ($0.19) per share

• Non-GAAP income of $1.2 million, or $0.04 per share

• Adjusted EBITDA income of $0.8 million

• Cash from operations $25.0 million

Full Year 2024 Results:

• Total Revenue of $283.5 million

• Core Revenue¹ grew 7% year-over-year to $281.2 million

• GAAP loss of $42.7 million, or ($1.41) per share

• Non-GAAP income of $15.0 million, or $0.49 per share

• Adjusted EBITDA loss of $2.8 million

• Cash from operations $21.1 million

• Cash, cash equivalents, restricted cash, and investments in marketable securities of $828.6 million

Note:

1) Core Revenue is revenue calculated in accordance with GAAP minus revenue from COVID-19 testing products and services including COVID-19 NGS testing revenue, each as calculated in accordance with GAAP.

Non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are described below under “Note Regarding Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP financial measure, GAAP income (loss), GAAP gross profit and margin, and GAAP operating income (loss) and margin, in the accompanying tables.

Ming Hsieh, Chairperson of the Board of Directors and Chief Executive Officer, said, “I am pleased with the progress of our business in 2024. Laboratory Services exhibited strong growth for the year. In Therapeutics Development, we now have a clinical pipeline, with FID-007 continuing to progress in a Phase 2 trial and FID-022 cleared by the U.S. FDA to begin a Phase 1 trial.”

Paul Kim, Chief Financial Officer, said, “We are pleased with our financial performance in 2024 and believe we have entered 2025 in a position of strength, with projected growth in our laboratory services business and a strong balance sheet to execute our objectives.”

Outlook:

For the full year 2025, Fulgent expects:

• Core Revenue of approximately $310 million

• GAAP loss of approximately ($1.95) per share

• Non-GAAP loss of approximately ($0.65) per share

• Cash, cash equivalents, and investments in marketable securities of approximately $780 million as of December 31, 2025*

*Cash expenditures may be higher or lower than currently estimated due to a variety of factors and circumstances, including as a result of the Company’s ongoing stock repurchase program or other expenditures outside the ordinary course of business, which could include M&A.

Conference Call Information

Fulgent will host a conference call for the investment community today at 8:30 AM ET (5:30 AM PT) to discuss its fourth quarter and full year 2024 results. The call may be accessed through a live audio webcast in the Investor Relations section of the Company’s website, http://ir.fulgentgenetics.com. An audio replay will be available at the same location.

Note Regarding Non-GAAP Financial Measures

Certain information set forth in this press release and/or to be discussed on the Company’s earnings call, including non-GAAP income (loss), non-GAAP income (loss) per share, adjusted EBITDA income (loss), non-GAAP gross profit and margin, and non-GAAP operating income (loss) and margin, are non-GAAP financial measures. Fulgent believes this information is useful to investors because it provides a basis for measuring the performance of the Company’s business, excluding certain income or expense items that management believes are not directly attributable to the Company’s operating results. Fulgent defines non-GAAP income (loss) as net income (loss) calculated in accordance with accounting principles generally accepted in the United States of America, or GAAP, plus amortization of intangible assets, plus goodwill impairment loss, plus equity-based compensation expenses, plus impairment of available-for-sale debt securities, plus or minus the non-GAAP tax effect, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company’s operations. The non-GAAP tax effect was calculated by excluding from the GAAP provision the impact of the amortization of intangible assets, goodwill impairment loss, equity-based compensation expenses, and impairment of available-for-sale debt securities. Fulgent defines adjusted EBITDA income (loss) as GAAP income (loss) plus or minus interest (expense) income, plus or minus provisions (benefits) for income taxes, plus goodwill impairment loss, plus equity-based compensation expenses, plus depreciation and amortization, plus impairment of available-for-sale debt securities, and plus or minus other charges or gains, as identified, that management believes are not representative of the Company’s operations. Fulgent defines non-GAAP gross profit as gross profit calculated in accordance with GAAP plus equity-based compensation included in cost of revenue as shown in the table below. Fulgent defines non-GAAP gross margin by taking non-GAAP gross profit and dividing it by GAAP revenue. Fulgent defines non-GAAP operating profit (loss) by taking GAAP operating profit (loss) and adding goodwill impairment loss, equity-based compensation, and amortization of intangible assets. Non-GAAP operating margin is calculated by taking non-GAAP operating profit (loss) and dividing by GAAP revenue. Fulgent may continue to incur expenses similar to the items added to or subtracted from GAAP income (loss) to calculate non-GAAP income (loss) and adjusted EBITDA income (loss); accordingly, the exclusion of these items in the presentation of these non-GAAP financial measures should not be construed as an implication that these items are unusual, infrequent or non-recurring. Management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measure of net income (loss), gross profit and margin, and operating income (loss) and margin, in evaluating the Company’s operating performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in conformity with GAAP, and non-GAAP financial measures as reported by Fulgent may not be comparable to similarly titled metrics reported by other companies.

About Fulgent

Fulgent is a technology-based company with a well-established laboratory services business and a therapeutic development business. Fulgent’s laboratory services business includes technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The Company aims to transform from a diagnostic business into a fully integrated precision medicine company.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: future performance; guidance, including guidance regarding expected quarterly and annual financial results, core revenues, GAAP loss, non-GAAP loss, and cash, cash equivalents and investments in marketable securities; evaluations and judgments regarding the stability of certain revenue sources, the Company’s cash position and sufficiency of its resources, momentum, trajectory, vision, future opportunities and future growth of the Company’s testing and laboratory services, technologies and expansion; the Company’s research and development efforts, including any implications that the results of earlier clinical trials will be representative or consistent with later clinical trials, the expected timing of enrollment and regulatory filings for these trials and the availability of data or results of these trials, including any implication that interim or preliminary data will be representative of final data; the Company’s identification and evaluation of opportunities and its ability to capitalize on opportunities, capture market share, or expand its presence in certain markets; and the Company’s ability to continue to grow its business.

Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on management’s current assumptions, expectations, and beliefs concerning future developments and their potential effect on the Company’s business. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: the market potential for, and the rate and degree of market adoption of, the Company’s tests; its ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; the Company’s ability to maintain the low internal costs of its business model; the Company’s ability to maintain an acceptable margin; risks related to volatility in the Company’s results, which can fluctuate significantly from period to period; risks associated with the composition of the Company’s customer base, which can fluctuate from period to period and can be comprised of a small number of customers that account for a significant portion of the Company’s revenue; the Company’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the Company’s level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, acquisitions, or other relationships; the success of the Company’s development efforts, including the Company’s ability to progress its candidates through clinical trials on the timelines expected; the Company’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and the Company’s ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events.

The forward-looking statements made in this press release speak only as of the date of this press release, and the Company assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law.

The Company’s reports filed with the U.S. Securities and Exchange Commission, or the SEC, including its annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 28, 2024, and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on the Company’s website upon their filing with the SEC. These reports contain more information about the Company, its business and the risks affecting its business, as well as its results of operations for the periods covered by the financial results included in this press release.

FULGENT GENETICS, INC.
Condensed Consolidated Balance Sheet Data
December 31, 2024 and December 31, 2023
(in thousands)
		December 31, 2024				December 31, 2023
ASSETS:
Cash and cash equivalents		$	55,144			$	97,473
Investments in marketable securities			773,313				750,252
Accounts receivable, net			69,021				51,132
Property, plant, and equipment, net			105,549				83,464
Other assets			216,937				253,007
Total assets		$	1,219,964			$	1,235,328
LIABILITIES & EQUITY:
Accounts payable, accrued liabilities and other liabilities		$	90,805			$	102,042
Total stockholders’ equity			1,129,159				1,133,286
Total liabilities & equity		$	1,219,964			$	1,235,328

FULGENT GENETICS, INC.
Condensed Consolidated Statement of Operations Data
Three and Twelve Months Ended December 31, 2024 and 2023
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Revenue		$	76,214			$	70,505			$	283,470			$	289,213
Cost of revenue (1)			44,365				45,276				176,255				184,757
Gross profit			31,849				25,229				107,215				104,456
Operating expenses:
Research and development (1)			12,113				11,952				48,816				41,440
Selling and marketing (1)			9,538				10,500				36,246				41,467
General and administrative (1)			24,341				31,706				88,106				88,999
Amortization of intangible assets			1,992				1,958				7,965				7,845
Goodwill impairment loss			—				120,234				—				120,234
Total operating expenses			47,984				176,350				181,133				299,985
Operating loss			(16,135	)			(151,121	)			(73,918	)			(195,529	)
Interest income			8,123				5,810				31,304				21,612
Interest expense			(40	)			137				170				(488	)
Impairment of available-for-sale debt securities			—				—				(10,073	)			—
Other income (expense), net			7				(22	)			561				320
Total other income, net			8,090				5,925				21,962				21,444
Loss before income taxes			(8,045	)			(145,196	)			(51,956	)			(174,085	)
(Benefit from) provision for income taxes			(1,855	)			(10,862	)			(8,136	)			1,154
Net loss from consolidated operations			(6,190	)			(134,334	)			(43,820	)			(175,239	)
Net loss attributable to noncontrolling interests			302				6,185				1,112				7,414
Net loss attributable to Fulgent		$	(5,888	)		$	(128,149	)		$	(42,708	)		$	(167,825	)
Net loss per common share attributable to Fulgent:
Basic		$	(0.19	)		$	(4.30	)		$	(1.41	)		$	(5.63	)
Diluted		$	(0.19	)		$	(4.30	)		$	(1.41	)		$	(5.63	)
Weighted-average common shares:
Basic			30,652				29,771				30,235				29,784
Diluted			30,652				29,771				30,235				29,784
(1) Equity-based compensation expense was allocated as follows:
Cost of revenue		$	1,851			$	2,375			$	7,799			$	9,749
Research and development			3,408				3,973				14,971				14,873
Selling and marketing			924				1,320				3,907				4,964
General and administrative			4,225				3,764				17,804				13,336
Total equity-based compensation expense		$	10,408			$	11,432			$	44,481			$	42,922

FULGENT GENETICS, INC.
Non-GAAP Income (Loss) Reconciliation
Three and Twelve Months Ended December 31, 2024 and 2023
(in thousands, except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss attributable to Fulgent		$	(5,888	)		$	(128,149	)		$	(42,708	)		$	(167,825	)
Amortization of intangible assets			1,992				1,958				7,965				7,845
Goodwill impairment loss			—				120,234				—				120,234
Equity-based compensation expense			10,408				11,432				44,481				42,922
Impairment of available-for-sale debt securities			—				—				10,073				—
Non-GAAP tax effect (1)			(5,349	)			2,794				(4,780	)			(15,473	)
Non-GAAP income (loss) attributable to Fulgent		$	1,163			$	8,269			$	15,031			$	(12,297	)
Net loss per common share attributable to Fulgent:
Basic		$	(0.19	)		$	(4.30	)		$	(1.41	)		$	(5.63	)
Diluted		$	(0.19	)		$	(4.30	)		$	(1.41	)		$	(5.63	)
Non-GAAP income (loss) per common share attributable to Fulgent:
Basic		$	0.04			$	0.28			$	0.50			$	(0.41	)
Diluted		$	0.04			$	0.28			$	0.49			$	(0.41	)
Weighted average common shares:
Basic			30,652				29,771				30,235				29,784
Diluted			31,184				29,771				30,530				29,784

(1) Tax rates as follows:

During the three and twelve months ended December 31, 2024 and 2023, the Company calculated an income tax provision on a non-GAAP basis.

FULGENT GENETICS, INC.
Non-GAAP Adjusted EBITDA Reconciliation
Three and Twelve Months Ended December 31, 2024 and 2023
(in thousands)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss attributable to Fulgent		$	(5,888	)		$	(128,149	)		$	(42,708	)		$	(167,825	)
Interest income, net			(8,083	)			(5,947	)			(31,474	)			(21,124	)
(Benefit from) provision for income taxes			(1,855	)			(10,862	)			(8,136	)			1,154
Goodwill impairment loss			—				120,234				—				120,234
Equity-based compensation expense			10,408				11,432				44,481				42,922
Depreciation and amortization			6,192				6,533				24,928				26,143
Impairment of available-for-sale debt securities			—				—				10,073				—
Adjusted EBITDA		$	774			$	(6,759	)		$	(2,836	)		$	1,504

FULGENT GENETICS, INC.
Non-GAAP Operating Margin
Three and Twelve Months Ended December 31, 2024 and 2023
(in thousands, except percentages)
		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Revenue		$	76,214			$	70,505			$	283,470			$	289,213
Cost of revenue			44,365				45,276				176,255				184,757
Gross profit			31,849				25,229				107,215				104,456
Gross margin			41.8	%			35.8	%			37.8	%			36.1	%
Equity-based compensation included in cost of revenue			1,851				2,375				7,799				9,749
Non-GAAP gross profit			33,700				27,604				115,014				114,205
Non-GAAP gross margin			44.2	%			39.2	%			40.6	%			39.5	%
Operating expenses			47,984				176,350				181,133				299,985
Equity-based compensation included in operating expenses			8,557				9,057				36,682				33,173
Amortization of intangible assets			1,992				1,958				7,965				7,845
Goodwill impairment loss			—				120,234				—				120,234
Non-GAAP operating expenses			37,435				45,101				136,486				138,733
Non-GAAP operating loss		$	(3,735	)		$	(17,497	)		$	(21,472	)		$	(24,528	)
Non-GAAP operating margin			-4.9	%			-24.8	%			-7.6	%			-8.5	%

 

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Investor Relations Contact:

The Blueshirt Group

Melanie Solomon, [email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Biotechnology Health Pharmaceutical Health Technology Oncology

MEDIA:

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Enterprise 2024 Schedule K-1 Tax Packages Now Available

HOUSTON–(BUSINESS WIRE)–
Enterprise Products Partners L.P. (NYSE: EPD) announced today that its 2024 tax packages, including schedule K-1s, are now available online.

The 2024 tax packages may be accessed through the K-1 Tax Package Support website, www.Taxpackagesupport.com/enterprise. The partnership expects to begin mailing the 2024 tax packages Friday, February 28, 2025 and complete mailing by Friday, March 7, 2025. For additional information, unitholders may call K-1 Tax Package Support toll free at (800) 599-9985 weekdays between 8 a.m. and 5 p.m. CT.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and marine terminals; crude oil gathering, transportation, storage and marine terminals; petrochemical and refined products transportation, storage and marine terminals; and a marine transportation business that operates on key U.S. inland and intracoastal waterway systems. The partnership’s assets currently include more than 50,000 miles of pipelines; over 300 million barrels of storage capacity for NGLs, crude oil, petrochemicals and refined products; and 14 billion cubic feet of natural gas storage capacity. Please visit www.enterpriseproducts.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250228424489/en/

Libby Strait, Investor Relations (713) 381-4754 or (866) 230-0745, [email protected]

Rick Rainey, Media Relations (713) 381-3635, [email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Other Natural Resources Maritime Utilities Oil/Gas Transport Natural Resources Energy

MEDIA:

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1stDibs Reports Fourth Quarter and Full Year 2024 Financial Results

NEW YORK–(BUSINESS WIRE)–
1stdibs.com, Inc. (NASDAQ: DIBS), a leading online marketplace for luxury design products (“1stDibs” or the “Company”), today reported financial results for its fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

• Net revenue was $22.8 million, an increase of 9% year-over-year.

• Gross profit was $16.5 million, an increase of 10% year-over-year.

• Gross margin was 72.3%, compared to 71.5% in the fourth quarter 2023.

• GAAP net loss was $5.2 million compared to a net loss of $2.9 million in the fourth quarter 2023.

• Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(1.6) million and (7.2)%, respectively, compared to $(1.7) million and (8.1)%, respectively, in the fourth quarter 2023.

• Cash, cash equivalents and short-term investments totaled $103.9 million as of December 31, 2024.

Full Year 2024 Financial Highlights

• Net revenue was $88.3 million, an increase of 4% year-over-year.

• Gross profit was $63.4 million, an increase of 6% year-over-year.

• Gross margin was 71.9%, compared to 70.3% in the year ended December 31, 2023.

• GAAP net loss was $18.6 million, compared to $22.7 million in the year ended December 31, 2023.

• Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin was $(8.0) million and (9.1)%, respectively, compared to $(13.3) million and (15.8)%, respectively, in the year ended December 31, 2023.

“2024 marked a turning point, highlighted by our highest GMV growth in three years in the fourth quarter,” said David Rosenblatt, 1stDibs Chief Executive Officer. “Market share gains and a return to revenue growth in 2024 despite a challenging market are clear signals that our strategy is working. We’re excited to continue driving progress in 2025.”

Tom Etergino, Chief Financial Officer of 1stDibs said, “We achieved significant progress in 2024, reducing operating expenses for the second consecutive year and delivering our strongest Adjusted EBITDA margins since becoming a public company. As we enter 2025, our focus remains on driving operating leverage and maintaining disciplined expense management.”

Other Recent Business Highlights and Fourth Quarter Key Operating Metrics

• Gross Merchandise Value (“GMV”) was $94.5 million, an increase of 9% year-over-year.

• Number of Orders was approximately 37K, an increase of 7% year-over-year.

• Active Buyers was approximately 64K, an increase of 6% year-over-year.

Financial Guidance and Outlook

The Company’s first quarter 2025 guidance is below.

	Q1 2025 Guidance
GMV	$90 million – $96 million
Net revenue	$21.7 million – $22.8 million
Adjusted EBITDA margin (non-GAAP)	(12%) – (8%)

Actual results may differ materially from our Financial Guidance and Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

A GAAP reconciliation to our non-GAAP guidance measure (adjusted EBITDA) is not available on a forward-looking basis without unreasonable effort due to the potential variability and uncertainty of expenses that may be incurred in the future. Stock-based compensation expense is impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this press release.

Webcast Information

1stDibs will host a webcast to discuss its fourth quarter and year ended 2024 financial results today at 8:00 a.m. Eastern Time. Investors and participants can access the webcast at the 1stDibs Investor Relations website (investors.1stdibs.com). A replay of the webcast will be available through the same link following the webcast, for one year thereafter.

Disclosure Information

In compliance with disclosure obligations under Regulation FD, 1stDibs announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, company blog posts, public conference calls and webcasts, as well as the investor relations website.

About 1stDibs

1stDibs is a leading online marketplace for connecting design lovers with highly coveted sellers and makers of vintage, antique, and contemporary furniture, home décor, art, jewelry, watches and fashion.

Forward-Looking Statements

This press release contains or references “forward-looking statements” and “forward-looking information” within the meaning of applicable federal and state securities laws (collectively, “forward-looking statements”). Forward-looking statements include statements relating to our financial guidance for the first quarter of 2025 and underlying assumptions; our ability to improve customer engagement and frequency; our ability to align our resources with strategic growth and profitability; and the impact of our marketing efforts. Any statements in this press release, other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans, objectives of management for future operations, long term operating expenses, and expectations for capital requirements, may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as: “accelerate,” “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “demand,” “estimate,” “expand,” “expect,” “focus,” “intend,” “may,” “might,” “objective,” “ongoing,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “progress,” “project,” “should,” “target,” “will,” “would,” or the negative of these terms, or other comparable terminology or similar expressions intended to identify statements about the future.

These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the following: (1) our continued efforts to lay the foundation for future growth; (2) our focus on efficiency and steps to align our expenses to current demand and the impact thereof; (3) our progress towards reaccelarating sustainable growth, reducing our cost, increasing operating leverage, and re-engineering our cost base; (4) the implementation of our stock repurchase program; and (5) our future results of operations and financial position, including our financial guidance and outlook. We cannot guarantee that any forward-looking statement will be accurate. Forward-looking statements are based on current expectations of future events and if these prove to be inaccurate, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to vary materially from those discussed or implied in the forward-looking statements. These risks and uncertainties include but are not limited to the following: (1) our ability to execute our business plan and strategies to achieve our strategic initiatives; (2) our ability to achieve future growth; (3) our ability to enhance GMV growth and shareholder value; (4) our ability to effectively manage costs; (5) our ability to execute our stock repurchase program; (6) our ability to reduce operating costs and realign investment priorities; and (7) macroeconomic conditions or geopolitical events or similar risks, as well as other risks, uncertainties, and other factors discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our Form 10-K for the year ended December 31, 2023 and other periodic reports and filings we make with the SEC. We qualify all of our forward-looking statements by these cautionary statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. These forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, or otherwise, except as required by law.

Key Operating Metrics Definitions

Gross Merchandise Value

We define Gross Merchandise Value (“GMV”) as the total dollar value from items sold by our sellers through 1stDibs in a given month, minus cancellations within that month, and excluding shipping and U.S. sales taxes. GMV includes all sales reported to us by our sellers, whether transacted through the 1stDibs marketplace or reported as an offline sale. We view GMV as a measure of the total economic activity generated by our online marketplace, and as an indicator of the scale and growth of our online marketplace and the health of our ecosystem. Our historical performance for GMV may not be indicative of future performance in GMV.

Number of Orders

We define Number of Orders as the total number of orders placed or reported through the 1stDibs marketplace in a given month, minus cancellations within that month. Our historical performance for Number of Orders may not be indicative of future performance in Number of Orders.

Active Buyers

We define Active Buyers as buyers who have made at least one purchase through our online marketplace during the 12 months ended on the last day of the period presented, net of cancellations. A buyer is identified by a unique email address; thus an Active Buyer could have more than one account if they were to use a separate unique email address to set up each account. We believe this metric reflects scale, engagement and brand awareness, and our ability to convert user activity on our online marketplace into transactions. Our historical performance for Active Buyers may not be indicative of future performance in new Active Buyers.

1STDIBS.COM, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share amounts)
	December 31, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	25,964			$	37,395
Short-term investments		77,919				101,926
Accounts receivable, net of allowance for doubtful accounts of $13 and $188 at December 31, 2024 and December 31, 2023, respectively		490				643
Prepaid expenses		2,859				3,032
Receivables from payment processors		2,833				2,670
Other current assets		1,799				2,214
Total current assets		111,864				147,880
Restricted cash, non-current		3,657				3,580
Property and equipment, net		3,564				3,384
Operating lease right-of-use assets		19,728				19,655
Goodwill		4,232				4,116
Other assets		2,713				2,200
Total assets	$	145,758			$	180,815
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,228			$	3,580
Payables due to sellers		8,605				6,521
Accrued expenses		11,475				10,883
Operating lease liabilities, current		4,186				3,107
Other current liabilities		1,965				3,618
Total current liabilities		28,459				27,709
Operating lease liabilities, non-current		17,970				18,812
Other liabilities		24				6
Total liabilities		46,453				46,527
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized as of December 31, 2024 and December 31, 2023; zero shares issued and outstanding as of December 31, 2024 and December 31, 2023		—				—
Common stock, $0.01 par value; 400,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 42,271,388 and 40,738,619 shares issued as of December 31, 2024 and December 31, 2023, respectively; and 35,827,866 and 39,915,136 outstanding as of December 31, 2024 and December 31, 2023, respectively		422				407
Treasury stock, at cost; 6,443,522 and 823,483 shares as of December 31, 2024 and December 31, 2023, respectively		(31,618	)			(3,496	)
Additional paid-in capital		463,224				451,282
Accumulated deficit		(332,352	)			(313,719	)
Accumulated other comprehensive income (loss)		(371	)			(186	)
Total stockholders’ equity		99,305				134,288
Total liabilities and stockholders’ equity	$	145,758			$	180,815

1STDIBS.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net revenue	$	22,770			$	20,922			$	88,257			$	84,684
Cost of revenue		6,311				5,967				24,831				25,111
Gross profit		16,459				14,955				63,426				59,573
Operating expenses:
Sales and marketing		10,504				8,633				38,084				36,640
Technology development		5,479				4,445				21,165				21,644
General and administrative		6,616				6,264				27,372				28,587
Provision for transaction losses		837				789				3,020				3,729
Total operating expenses		23,436				20,131				89,641				90,600
Loss from operations		(6,977	)			(5,176	)			(26,215	)			(31,027	)
Other income, net:
Interest income		1,247				1,706				5,942				6,639
Other, net		556				543				1,684				1,703
Total other income, net		1,803				2,249				7,626				8,342
Net loss before income taxes		(5,174	)			(2,927	)			(18,589	)			(22,685	)
Provision for income taxes		(36	)			(14	)			(44	)			(14	)
Net loss	$	(5,210	)		$	(2,941	)		$	(18,633	)		$	(22,699	)
Net loss per share—basic and diluted	$	(0.14	)		$	(0.07	)		$	(0.49	)		$	(0.57	)
Weighted average common shares outstanding—basic and diluted		36,327,939				39,953,131				37,820,400				39,724,697

1STDIBS.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
	Year Ended December 31,
		2024				2023
Cash flows from operating activities:
Net loss	$	(18,633	)		$	(22,699	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,986				2,278
Stock-based compensation expense		14,776				12,363
Provision for transaction losses, returns and refunds		1,080				875
Amortization of costs to obtain revenue contracts		311				326
Amortization of operating lease right-of-use assets		3,423				2,596
Accretion of discounts and amortization of premiums on short-term investments, net		41				(3,390	)
Other, net		(137	)			(318	)
Changes in operating assets and liabilities:
Accounts receivable		(228	)			59
Prepaid expenses and other current assets		44				(1,469	)
Receivables from payment processors		(163	)			(194	)
Other assets		(679	)			(2,136	)
Accounts payable and accrued expenses		(1,723	)			578
Payables due to sellers		2,083				(662	)
Operating lease liabilities		(3,259	)			(2,790	)
Other current liabilities and other liabilities		(1,832	)			1,027
Net cash used in operating activities		(2,910	)			(13,556	)
Cash flows from investing activities:
Maturities of short-term investments		91,983				92,653
Sales of short-term investments		18,296				—
Purchases of short-term investments		(86,368	)			(191,093	)
Development of internal-use software		(1,304	)			(1,706	)
Purchases of property and equipment		(618	)			(88	)
Other, net		302				2
Net cash provided by (used in) investing activities		22,291				(100,232	)
Cash flows from financing activities:
Proceeds from exercise of stock options		817				353
Payments for repurchase of common stock		(27,743	)			(3,374	)
Payments for taxes related to net share settlement of stock-based compensation awards		(3,780	)			(608	)
Net cash used in financing activities		(30,706	)			(3,629	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(29	)			349
Net decrease in cash, cash equivalents, and restricted cash		(11,354	)			(117,068	)
Cash, cash equivalents, and restricted cash at beginning of the period		40,975				158,043
Cash, cash equivalents, and restricted cash at end of the period	$	29,621			$	40,975

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin

In this press release, we provide Adjusted EBITDA, a non-GAAP financial measure that represents our net loss adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) other income, net; and (4) strategic alternative expenses. We also provide Adjusted EBITDA Margin, a non-GAAP financial measure that presents Adjusted EBITDA divided by net revenue. Below is a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA.

We have included Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures, because they are key measures used by our management team to help us to assess our operating performance and the operating leverage in our business. We also use these measures to analyze our financial results, establish budgets and operational goals for managing our business, and make strategic decisions. We believe that Adjusted EBITDA and Adjusted EBITDA Margin help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that we exclude from Adjusted EBITDA and Adjusted EBITDA Margin. Accordingly, we believe that these metrics provide useful information to investors and others in understanding and evaluating our results of operations, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key financial metrics used by our management in their financial and operational decision-making. We also believe that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors, and to analyze our cash performance.

The non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. The non-GAAP financial measures presented should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP. Further, these non-GAAP financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. Accordingly, these non-GAAP financial measures should be considered as supplemental in nature, and are not intended, and should not be construed, as a substitute for the related financial information calculated in accordance with GAAP. These limitations of Adjusted EBITDA and Adjusted EBITDA Margin include the following:

• The exclusion of certain recurring, non-cash charges, such as depreciation and amortization of property and equipment. While these are non-cash charges, we may need to replace the assets being depreciated in the future and Adjusted EBITDA does not reflect cash requirements for these replacements or new capital expenditure requirements;

• The exclusion of stock-based compensation expense, which has been a significant recurring expense and will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be an important component of our compensation strategy;

• The exclusion of other income, net, which includes interest income related to our cash, cash equivalents and short-term investments and realized and unrealized gains and losses on foreign currency exchange;

• The exclusion of strategic alternative expenses in connection with capital return strategies, buy- and sell-side mergers, acquisitions and partnerships which include integration costs, sale of a business or subsidiary, business optimization costs related to revisions of operational objectives and priorities which include restructuring charges, in all cases outside the ordinary course.

Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial performance measures, including net loss and our other GAAP results. The information in the tables below sets forth the non-GAAP financial measures along with the most directly comparable GAAP financial measures.

1STDIBS.COM, INC. Reconciliation of Net Loss to Adjusted EBITDA (Amounts in thousands) (Unaudited)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net loss	$	(5,210	)		$	(2,941	)		$	(18,633	)		$	(22,699	)
Excluding:
Depreciation and amortization		547				463				1,986				2,278
Stock-based compensation expense		3,768				3,023				14,776				12,363
Other income, net		(1,803	)			(2,249	)			(7,626	)			(8,342	)
Provision for income taxes		36				14				44				14
Strategic alternative expenses		1,019				(15	)			1,444				3,046
Adjusted EBITDA (non-GAAP)	$	(1,643	)		$	(1,705	)		$	(8,009	)		$	(13,340	)
Divided by:
Net revenue	$	22,770			$	20,922			$	88,257			$	84,684
Adjusted EBITDA Margin (non-GAAP)		(7.2	)%			(8.1	)%			(9.1	)%			(15.8	)%

 

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Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2024 Results and Announces Special Distribution of $1.21 per Common Unit

HOUSTON–(BUSINESS WIRE)–Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2024 results as follows:

		For the Three Months Ended				For the Year Ended
(In thousands) (Unaudited)		December 31, 2024
Net income		$	42,772			$	183,644
Operating cash flow		$	66,220			$	248,493
Free cash flow (1)		$	66,906			$	251,158

____________
(1)	See “Non-GAAP Financial Measures” and reconciliation tables at the end of this release.

Highlights:

• Generated $251 million of free cash flow

• Paid total distributions of $5.44 per common unit in 2024, consisting of regular quarterly distributions of $0.75 per common unit and a special cash distribution of $2.44 per common unit to cover unitholder tax liabilities associated with owning NRP’s common units during 2023

• Redeemed $72 million of preferred units at par with cash; of original $250 million preferred units, none remain outstanding

• Repurchased 1.54 million warrants with issuance of $65.7 million cash and 287,826 common units; of original 4 million warrants, none remain outstanding

• Executed five-year $200 million credit facility maturing 2029

• Declares special cash distribution of $1.21 per common unit to cover unitholder tax liabilities associated with owning NRP’s common units during 2024

“In 2024, NRP generated $251 million of free cash flow, redeemed all of the remaining 12% preferred units, retired all outstanding warrants, and ended the year with only $142 million of financial obligations, solely consisting of debt,” said Craig Nunez, NRP’s president & chief operating officer. “We made significant progress toward our goal of de-levering and de-risking the Partnership over the past year and remain committed to this strategy as the best approach to maximize intrinsic value per unit.”

NRP’s liquidity was $116.7 million at December 31, 2024, consisting of $30.4 million of cash and $86.3 million of borrowing capacity available under its revolving credit facility.

NRP also announced today that the board of directors of its general partner declared a special cash distribution of $1.21 per common unit to be paid on March 18, 2025, to unitholders of record on March 11, 2025. This special distribution is to help cover unitholder tax liabilities associated with owning NRP’s common units during 2024. Future distributions on NRP’s common units will be determined on a quarterly basis by the board of directors. The board of directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the board determines is necessary for future operating and capital needs.

Segment Performance

Mineral Rights

Mineral Rights net income in the fourth quarter and full year of 2024 decreased $10.7 million and $39.1 million, respectively, as compared to the prior year periods. Operating cash flow in the fourth quarter and full year of 2024 decreased $7.6 million and $17.8 million, respectively, as compared to the prior year periods. Free cash flow in the fourth quarter and full year of 2024 decreased $7.5 million and $17.6 million, respectively, as compared to the prior year periods. These decreases were primarily due to lower metallurgical coal pricing and lower thermal coal pricing and volumes in 2024, partially offset by one-time carbon neutral revenues and cash flow received in the fourth quarter of 2024. Approximately 80% of coal royalty revenues and approximately 60% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2024, and approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal in the full year of 2024.

Metallurgical and thermal coal prices remained weak throughout 2024, primarily due to muted steel demand impacting metallurgical coal and mild weather, high inventory levels, and low natural gas prices impacting thermal coal. While NRP does not expect significant changes in these factors or to pricing in 2025, metallurgical and thermal coal pricing is still higher compared to long-term historical norms. It appears a new price floor has resulted from input cost inflation as well as ongoing labor shortages and operators’ limited access to capital.

NRP continues to explore and identify carbon neutral revenue sources across its large portfolio of surface, mineral, and timber assets, including the sequestration of carbon dioxide in NRP’s underground pore space and standing forests, lithium production, and the generation of electricity using geothermal, solar, and wind energy. NRP has been notified by Exxon that its previously announced underground carbon sequestration lease agreement executed in 2022 would not be renewed for another lease term and has been terminated as per their rights in the agreement.

Soda Ash

Soda Ash net income in the fourth quarter and full year of 2024 decreased $13.9 million and $55.2 million, respectively, as compared to the prior year periods. Operating cash flow and free cash flow in the fourth quarter and full year of 2024 decreased $4.7 million and $42.6 million, respectively, as compared to the prior year periods. These decreases were driven by lower international soda ash sales prices due to increased global soda ash capacity and weaker global demand for new construction and automobiles.

NRP expects soda ash prices to remain low for the foreseeable future as it will take several years for the market to absorb the influx of new global capacity. However, many producers are currently operating below cost of production as the market is experiencing its lowest sales prices in decades. As this challenging market persists, distributions from Sisecam Wyoming are expected to be below historical levels.

Corporate and Financing

Corporate and Financing costs in the fourth quarter of 2024 decreased $2.4 million as compared to the prior year period primarily due to lower employee expenses and lower interest expense as compared to the prior year period. Corporate and Financing costs in the full year of 2024 increased $0.5 million as compared to the prior year period primarily due to higher interest expense for the full year of 2024 as compared to the prior year due to higher revolver draws in 2024 used to fully redeem the preferred units and warrants, partially offset by lower employee expenses in 2024. Operating cash flow and free cash flow in the fourth quarter of 2024 improved $0.7 million as compared to the prior year period primarily due to lower cash paid for interest as compared to the prior year quarter due to less debt outstanding. Operating cash flow and free cash flow for the full year of 2024 decreased $2.1 million as compared to the prior year primarily due to higher cash paid for interest as a result of higher revolver draws in 2024 used to fully redeem the preferred units and warrants.

In 2024, NRP fully retired the remaining 71,666 Class A Convertible Preferred Units at par, with cash and repurchased the remaining 1.54 million warrants with $65.7 million cash and issuing 287,826 common units. Of the originally issued 250,000 Class A Convertible Preferred Units, none remain outstanding, and of the originally issued 4 million warrants, none remain outstanding. Additionally, NRP increased its credit facility capacity 29% to $200 million and extended its maturity date two years from 2027 to 2029, allowing for continued financial flexibility for the partnership.

NRP’s consolidated leverage ratio was 0.6x at December 31, 2024.

In February 2025, NRP declared and paid a fourth quarter 2024 cash distribution of $0.75 per common unit. As previously mentioned, today NRP declared a special distribution of $1.21 per common unit to help cover unitholder tax liabilities associated with owning NRP’s common units during 2024.

Conference Call

A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link: https://registrations.events/direct/Q4I154485601. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full conference call we suggest registering at minimum 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.

Withholding Information for Foreign Investors

Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of NRP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, NRP’s distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the sum of the highest applicable rate plus ten percent (10%).

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash.

For additional information, please contact Tiffany Sammis at 713-751-7515 or [email protected]. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com.

Forward-Looking Statements

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: future distributions on the Partnership’s common units; the Partnership’s business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership’s lessees; Sisecam Wyoming LLC’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource Partners’ Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

“Adjusted EBITDA” is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco’s debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

“Distributable cash flow” or “DCF” is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures and distributions to non-controlling interest. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and othersto assess our ability to make cash distributions and repay debt.

“Free cash flow” or “FCF” is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and othersto assess our ability to make cash distributions and repay debt.

“Leverage ratio” represents the outstanding principal of NRP’s debt at the end of the period divided by the last twelve months’ Adjusted EBITDA as defined above. NRP believes that leverage ratio is a useful measure to management and investors to evaluate and monitor the indebtedness of NRP relative to its ability to generate income to service such debt and in understanding trends in NRP’s overall financial condition. Leverage ratio may not be calculated the same for us as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios.

-Financial Tables and Reconciliation of Non-GAAP Measures Follow-

Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Comprehensive Income
		For the Three Months Ended												For the Year Ended
		December 31,								September 30,				December 31,
(In thousands, except per unit data)		2024				2023				2024				2024				2023
Revenues and other income
Royalty and other mineral rights		$	61,781			$	72,922			$	50,405			$	234,149			$	278,733
Transportation and processing services			2,978				3,476				1,812				10,878				14,923
Equity in earnings of Sisecam Wyoming			931				14,764				8,109				18,135				73,397
Gain on asset sales and disposals			36				2,001				1				4,845				2,956
Total revenues and other income		$	65,726			$	93,163			$	60,327			$	268,007			$	370,009
Operating expenses
Operating and maintenance expenses		$	9,645			$	8,864			$	6,786			$	28,036			$	32,315
Depreciation, depletion and amortization			2,827				6,020				4,730				15,535				18,489
General and administrative expenses			6,958				8,954				5,935				25,151				26,111
Asset impairments			—				424				87				87				556
Total operating expenses		$	19,430			$	24,262			$	17,538			$	68,809			$	77,471
Income from operations		$	46,296			$	68,901			$	42,789			$	199,198			$	292,538
Interest expense, net		$	(3,524	)		$	(3,921	)		$	(4,194	)		$	(15,554	)		$	(14,103	)
Net income		$	42,772			$	64,980			$	38,595			$	183,644			$	278,435
Less: income attributable to preferred unitholders			—				(2,151	)			(655	)			(4,248	)			(16,719	)
Less: redemption of preferred units			—				—				(10,819	)			(24,485	)			(60,929	)
Net income attributable to common unitholders and the general partner		$	42,772			$	62,829			$	27,121			$	154,911			$	200,787
Net income attributable to common unitholders		$	41,917			$	61,572			$	26,578			$	151,813			$	196,771
Net income attributable to the general partner			855				1,257				543				3,098				4,016
Net income per common unit
Basic		$	3.21			$	4.87			$	2.04			$	11.69			$	15.59
Diluted			3.15				4.31				2.00				11.35				13.08
Net income		$	42,772			$	64,980			$	38,595			$	183,644			$	278,435
Comprehensive income (loss) from unconsolidated investment and other			(714	)			(5,367	)			82				1,452				(21,839	)
Comprehensive income		$	42,058			$	59,613			$	38,677			$	185,096			$	256,596

Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Cash Flows
		For the Three Months Ended												For the Year Ended
		December 31,								September 30,				December 31,
(In thousands)		2024				2023				2024				2024				2023
Cash flows from operating activities
Net income		$	42,772			$	64,980			$	38,595			$	183,644			$	278,435
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization			2,827				6,020				4,730				15,535				18,489
Distributions from unconsolidated investment			10,667				15,338				6,320				38,781				81,478
Equity earnings from unconsolidated investment			(931	)			(14,764	)			(8,109	)			(18,135	)			(73,397	)
Gain on asset sales and disposals			(36	)			(2,001	)			(1	)			(4,845	)			(2,956	)
Asset impairments			—				424				87				87				556
Bad debt expense			3,647				1,431				1,058				4,185				2,244
Unit-based compensation expense			2,431				3,007				3,002				11,309				10,910
Amortization of debt issuance costs and other			1,094				260				(1,655	)			(1,509	)			1,303
Change in operating assets and liabilities:
Accounts receivable			1,574				(4,254	)			(6,640	)			7,285				(164	)
Accounts payable			(73	)			(258	)			49				25				(1,108	)
Accrued liabilities			3,829				6,063				392				(2,088	)			(225	)
Accrued interest			(473	)			(641	)			457				(281	)			(406	)
Deferred revenue			419				1,480				14,854				17,200				(3,483	)
Other items, net			(1,527	)			701				1,006				(2,700	)			(698	)
Net cash provided by operating activities		$	66,220			$	77,786			$	54,145			$	248,493			$	310,978
Cash flows from investing activities
Proceeds from asset sales and disposals		$	37			$	2,002			$	1			$	4,846			$	2,963
Return of long-term contract receivable			686				633				673				2,665				2,463
Capital expenditures			—				—				—				—				(10	)
Net cash provided by investing activities		$	723			$	2,635			$	674			$	7,511			$	5,416
Cash flows from financing activities
Debt borrowings		$	15,000			$	33,800			$	23,000			$	167,850			$	248,834
Debt repayments			(70,332	)			(86,335	)			(36,000	)			(181,028	)			(262,396	)
Distributions to common unitholders and the general partner			(9,987	)			(9,670	)			(9,986	)			(72,146	)			(69,908	)
Distributions to preferred unitholders			—				(2,150	)			(1,605	)			(6,398	)			(22,069	)
Redemptions of preferred units			—				—				(31,666	)			(71,666	)			(178,334	)
Warrant settlements			—				(22,481	)			—				(65,689	)			(56,089	)
Other items, net			(2,080	)			(7	)			(2	)			(8,472	)			(3,534	)
Net cash used in financing activities		$	(67,399	)		$	(86,843	)		$	(56,259	)		$	(237,549	)		$	(343,496	)
Net increase (decrease) in cash and cash equivalents		$	(456	)		$	(6,422	)		$	(1,440	)		$	18,455			$	(27,102	)
Cash and cash equivalents at beginning of period			30,900				18,411				32,340				11,989				39,091
Cash and cash equivalents at end of period		$	30,444			$	11,989			$	30,900			$	30,444			$	11,989
Supplemental cash flow information:
Cash paid for interest		$	3,986			$	4,372			$	3,800			$	15,452			$	13,856

Natural Resource Partners L.P.
Financial Tables
Consolidated Balance Sheets
		December 31,
		2024				2023
(In thousands, except unit data)		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	30,444			$	11,989
Accounts receivable, net			31,469				41,086
Other current assets, net			1,961				2,218
Total current assets		$	63,874			$	55,293
Land			24,008				24,008
Mineral rights, net			379,638				394,483
Intangible assets, net			12,924				13,682
Equity in unconsolidated investment			257,355				276,549
Long-term contract receivable, net			23,480				26,321
Other long-term assets, net			11,628				7,540
Total assets		$	772,907			$	797,876
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable		$	909			$	885
Accrued liabilities			12,121				12,987
Accrued interest			302				584
Current portion of deferred revenue			4,341				4,599
Current portion of long-term debt, net			14,192				30,785
Total current liabilities		$	31,865			$	49,840
Deferred revenue			55,814				38,356
Long-term debt, net			127,876				124,273
Other non-current liabilities			6,244				7,172
Total liabilities		$	221,799			$	219,641
Commitments and contingencies
Class A Convertible Preferred Units (71,666 units issued and outstanding at December 31, 2023 at $1,000 par value per unit)		$	—			$	47,181
Partners’ capital
Common unitholders’ interest (13,049,123 and 12,634,642 units issued and outstanding at December 31, 2024 and 2023, respectively)		$	543,231			$	503,076
General partner’s interest			9,547				8,005
Warrant holders’ interest			—				23,095
Accumulated other comprehensive loss			(1,670	)			(3,122	)
Total partners’ capital		$	551,108			$	531,054
Total liabilities and partners’ capital		$	772,907			$	797,876

Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Partners’ Capital
		Common Unitholders								General				Warrant				Accumulated Other Comprehensive				Total Partners’
(In thousands)		Units				Amounts				Partner				Holders				Income (Loss)				Capital
Balance at December 31, 2022			12,506			$	404,799			$	5,977			$	47,964			$	18,717			$	477,457
Net income (1)			—				272,866				5,569				—				—				278,435
Redemptions of preferred units			—				(59,710	)			(1,219	)			—				—				(60,929	)
Distributions to common unitholders and the general partner			—				(68,510	)			(1,398	)			—				—				(69,908	)
Distributions to preferred unitholders			—				(21,628	)			(441	)			—				—				(22,069	)
Issuance of unit-based awards			129				—				—				—				—				—
Unit-based awards amortization and vesting, net			—				5,854				—				—				—				5,854
Capital contribution			—				—				142				—				—				142
Warrant settlements			—				(30,595	)			(625	)			(24,869	)			—				(56,089	)
Comprehensive loss from unconsolidated investment and other			—				—				—				—				(21,839	)			(21,839	)
Balance at December 31, 2023			12,635			$	503,076			$	8,005			$	23,095			$	(3,122	)		$	531,054
Net income (2)			—				179,971				3,673				—				—				183,644
Redemptions of preferred units			—				(23,995	)			(490	)			—				—				(24,485	)
Distributions to common unitholders and the general partner			—				(70,703	)			(1,443	)			—				—				(72,146	)
Distributions to preferred unitholders			—				(6,270	)			(128	)			—				—				(6,398	)
Issuance of unit-based awards			126				—				—				—				—				—
Unit-based awards amortization and vesting, net			—				2,894				—				—				—				2,894
Capital contribution			—				—				782				—				—				782
Warrant settlements			288				(41,742	)			(852	)			(23,095	)			—				(65,689	)
Comprehensive income from unconsolidated investment and other			—				—				—				—				1,452				1,452
Balance at December 31, 2024			13,049			$	543,231			$	9,547			$	—			$	(1,670	)		$	551,108

____________
(1)	Net income includes $16.7 million of income attributable to preferred unitholders that accumulated during the period, of which $16.4 million is allocated to the common unitholders and $0.3 million is allocated to the general partner.

(2)	Net income includes $4.2 million of income attributable to preferred unitholders that accumulated during the period, of which $4.2 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP’s unaudited business results by segment for the three months ended December 31, 2024 and 2023 and September 30, 2024:

		Operating Segments
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Three Months Ended December 31, 2024
Revenues		$	64,759			$	—			$	—			$	64,759
Equity in earnings of Sisecam Wyoming			—				931				—				931
Gain on asset sales and disposals			36				—				—				36
Total revenues and other income		$	64,795			$	931			$	—			$	65,726
Asset impairments		$	—			$	—			$	—			$	—
Net income (loss)		$	52,386			$	872			$	(10,486	)		$	42,772
Adjusted EBITDA (1)		$	55,209			$	10,608			$	(6,958	)		$	58,859
Cash flow provided by (used in):
Operating activities		$	62,575			$	10,608			$	(6,963	)		$	66,220
Investing activities		$	723			$	—			$	—			$	723
Financing activities		$	—			$	—			$	(67,399	)		$	(67,399	)
Distributable cash flow (1)		$	63,298			$	10,608			$	(6,963	)		$	66,943
Free cash flow (1)		$	63,261			$	10,608			$	(6,963	)		$	66,906
For the Three Months Ended December 31, 2023
Revenues		$	76,398			$	—			$	—			$	76,398
Equity in earnings of Sisecam Wyoming			—				14,764				—				14,764
Gain on asset sales and disposals			2,001				—				—				2,001
Total revenues and other income		$	78,399			$	14,764			$	—			$	93,163
Asset impairments		$	424			$	—			$	—			$	424
Net income (loss)		$	63,127			$	14,732			$	(12,879	)		$	64,980
Adjusted EBITDA (1)		$	69,567			$	15,306			$	(8,954	)		$	75,919
Cash flow provided by (used in):
Operating activities		$	70,147			$	15,306			$	(7,667	)		$	77,786
Investing activities		$	2,635			$	—			$	—			$	2,635
Financing activities		$	—			$	—			$	(86,843	)		$	(86,843	)
Distributable cash flow (1)		$	72,782			$	15,306			$	(7,667	)		$	80,421
Free cash flow (1)		$	70,780			$	15,306			$	(7,667	)		$	78,419
For the Three Months Ended September 30, 2024
Revenues		$	52,217			$	—			$	—			$	52,217
Equity in earnings of Sisecam Wyoming			—				8,109				—				8,109
Gain on asset sales and disposals			1				—				—				1
Total revenues and other income		$	52,218			$	8,109			$	—			$	60,327
Asset impairments		$	87			$	—			$	—			$	87
Net income (loss)		$	40,644			$	8,085			$	(10,134	)		$	38,595
Adjusted EBITDA (1)		$	45,456			$	6,296			$	(5,935	)		$	45,817
Cash flow provided by (used in):
Operating activities		$	53,610			$	6,297			$	(5,762	)		$	54,145
Investing activities		$	674			$	—			$	—			$	674
Financing activities		$	—			$	—			$	(56,259	)		$	(56,259	)
Distributable cash flow (1)		$	54,284			$	6,297			$	(5,762	)		$	54,819
Free cash flow (1)		$	54,283			$	6,297			$	(5,762	)		$	54,818

____________
(1)	See “Non-GAAP Financial Measures” and reconciliation tables at the end of this release.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following table presents NRP’s unaudited business results by segment for the year ended December 31, 2024 and 2023:

		Operating Segments
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Year Ended December 31, 2024
Revenues		$	245,027			$	—			$	—			$	245,027
Equity in earnings of Sisecam Wyoming			—				18,135				—				18,135
Gain on asset sales and disposals			4,845				—				—				4,845
Total revenues and other income		$	249,872			$	18,135			$	—			$	268,007
Asset impairments		$	87			$	—			$	—			$	87
Net income (loss)		$	206,403			$	17,964			$	(40,723	)		$	183,644
Adjusted EBITDA (1)		$	222,007			$	38,610			$	(25,151	)		$	235,466
Cash flow provided by (used in):
Operating activities		$	242,168			$	38,610			$	(32,285	)		$	248,493
Investing activities		$	7,511			$	—			$	—			$	7,511
Financing activities		$	(1,086	)		$	—			$	(236,463	)		$	(237,549	)
Distributable cash flow (1)		$	249,679			$	38,610			$	(32,285	)		$	256,004
Free cash flow (1)		$	244,833			$	38,610			$	(32,285	)		$	251,158
For the Year Ended December 31, 2023
Revenues		$	293,656			$	—			$	—			$	293,656
Equity in earnings of Sisecam Wyoming			—				73,397				—				73,397
Gain on asset sales and disposals			2,956				—				—				2,956
Total revenues and other income		$	296,612			$	73,397			$	—			$	370,009
Asset impairments		$	556			$	—			$	—			$	556
Net income (loss)		$	245,527			$	73,140			$	(40,232	)		$	278,435
Adjusted EBITDA (1)		$	264,554			$	81,221			$	(26,111	)		$	319,664
Cash flow provided by (used in):
Operating activities		$	259,983			$	81,207			$	(30,212	)		$	310,978
Investing activities		$	5,426			$	—			$	(10	)		$	5,416
Financing activities		$	(583	)		$	—			$	(342,913	)		$	(343,496	)
Distributable cash flow (1)		$	265,409			$	81,207			$	(30,222	)		$	316,394
Free cash flow (1)		$	262,446			$	81,207			$	(30,222	)		$	313,431

____________
(1)	See “Non-GAAP Financial Measures” and reconciliation tables at the end of this release.

Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Operating Statistics – Mineral Rights
		For the Three Months Ended												For the Year Ended
		December 31,								September 30,				December 31,
(In thousands, except per ton data)		2024				2023				2024				2024				2023
Coal sales volumes (tons)
Appalachia
Northern			315				92				470				1,031				1,145
Central			3,460				3,537				3,507				14,137				13,927
Southern			677				654				705				2,661				2,670
Total Appalachia			4,452				4,283				4,682				17,829				17,742
Illinois Basin			1,220				2,637				1,128				5,723				8,119
Northern Powder River Basin			366				1,259				944				2,826				4,589
Gulf Coast			206				801				436				1,342				1,477
Total coal sales volumes			6,244				8,980				7,190				27,720				31,927
Coal royalty revenue per ton
Appalachia
Northern		$	4.50			$	2.18			$	2.34			$	3.25			$	7.15
Central			6.51				9.12				6.55				7.13				8.95
Southern			9.77				14.04				9.56				10.22				12.81
Illinois Basin			1.98				3.57				1.76				2.26				3.61
Northern Powder River Basin			4.90				3.89				4.82				4.87				4.50
Gulf Coast			0.81				0.63				0.84				0.80				0.66
Combined average coal royalty revenue per ton			5.59				6.29				5.24				5.74				6.83
Coal royalty revenues
Appalachia
Northern		$	1,418			$	201			$	1,100			$	3,348			$	8,192
Central			22,517				32,269				22,958				100,845				124,631
Southern			6,614				9,181				6,743				27,185				34,205
Total Appalachia			30,549				41,651				30,801				131,378				167,028
Illinois Basin			2,417				9,426				1,987				12,927				29,350
Northern Powder River Basin			1,792				4,898				4,546				13,768				20,666
Gulf Coast			167				508				366				1,069				969
Unadjusted coal royalty revenues			34,925				56,483				37,700				159,142				218,013
Coal royalty adjustment for minimum leases			—				1				(95	)			(109	)			(2	)
Total coal royalty revenues		$	34,925			$	56,484			$	37,605			$	159,033			$	218,011
Other revenues
Production lease minimum revenues		$	2,592			$	1,297			$	437			$	4,365			$	3,322
Minimum lease straight-line revenues			4,116				5,975				4,117				16,530				19,389
Carbon neutral revenues			11,381				55				(39	)			15,703				2,969
Wheelage revenues			2,242				2,653				2,072				9,324				12,191
Property tax revenues			1,854				1,509				1,809				7,100				6,219
Coal overriding royalty revenues			294				1,010				227				2,358				2,175
Lease amendment revenues			1,239				748				1,071				3,724				3,070
Aggregates royalty revenues			740				701				662				2,904				2,876
Oil and gas royalty revenues			1,610				2,261				1,317				8,566				7,387
Other revenues			788				229				1,127				4,542				1,124
Total other revenues		$	26,856			$	16,438			$	12,800			$	75,116			$	60,722
Royalty and other mineral rights		$	61,781			$	72,922			$	50,405			$	234,149			$	278,733
Transportation and processing services revenues			2,978				3,476				1,812				10,878				14,923
Gain on asset sales and disposals			36				2,001				1				4,845				2,956
Total Mineral Rights segment revenues and other income		$	64,795			$	78,399			$	52,218			$	249,872			$	296,612

Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Adjusted EBITDA
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Three Months Ended December 31, 2024
Net income (loss)		$	52,386			$	872			$	(10,486	)		$	42,772
Less: equity earnings from unconsolidated investment			—				(931	)			—				(931	)
Add: total distributions from unconsolidated investment			—				10,667				—				10,667
Add: interest expense, net			—				—				3,524				3,524
Add: depreciation, depletion and amortization			2,823				—				4				2,827
Add: asset impairments			—				—				—				—
Adjusted EBITDA		$	55,209			$	10,608			$	(6,958	)		$	58,859
For the Three Months Ended December 31, 2023
Net income (loss)		$	63,127			$	14,732			$	(12,879	)		$	64,980
Less: equity earnings from unconsolidated investment			—				(14,764	)			—				(14,764	)
Add: total distributions from unconsolidated investment			—				15,338				—				15,338
Add: interest expense, net			—				—				3,921				3,921
Add: depreciation, depletion and amortization			6,016				—				4				6,020
Add: asset impairments			424				—				—				424
Adjusted EBITDA		$	69,567			$	15,306			$	(8,954	)		$	75,919
For the Three Months Ended September 30, 2024
Net income (loss)		$	40,644			$	8,085			$	(10,134	)		$	38,595
Less: equity earnings from unconsolidated investment			—				(8,109	)			—				(8,109	)
Add: total distributions from unconsolidated investment			—				6,320				—				6,320
Add: interest expense, net			—				—				4,194				4,194
Add: depreciation, depletion and amortization			4,725				—				5				4,730
Add: asset impairments			87				—				—				87
Adjusted EBITDA		$	45,456			$	6,296			$	(5,935	)		$	45,817

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Adjusted EBITDA
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Year Ended December 31, 2024
Net income (loss)		$	206,403			$	17,964			$	(40,723	)		$	183,644
Less: equity earnings from unconsolidated investment			—				(18,135	)			—				(18,135	)
Add: total distributions from unconsolidated investment			—				38,781				—				38,781
Add: interest expense, net			—				—				15,554				15,554
Add: depreciation, depletion and amortization			15,517				—				18				15,535
Add: asset impairments			87				—				—				87
Adjusted EBITDA		$	222,007			$	38,610			$	(25,151	)		$	235,466
For the Year Ended December 31, 2023
Net income (loss)		$	245,527			$	73,140			$	(40,232	)		$	278,435
Less: equity earnings from unconsolidated investment			—				(73,397	)			—				(73,397	)
Add: total distributions from unconsolidated investment			—				81,478				—				81,478
Add: interest expense, net			—				—				14,103				14,103
Add: depreciation, depletion and amortization			18,471				—				18				18,489
Add: asset impairments			556				—				—				556
Adjusted EBITDA		$	264,554			$	81,221			$	(26,111	)		$	319,664

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Distributable Cash Flow and Free Cash Flow
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Three Months Ended December 31, 2024
Net cash provided by (used in) operating activities		$	62,575			$	10,608			$	(6,963	)		$	66,220
Add: proceeds from asset sales and disposals			37				—				—				37
Add: return of long-term contract receivable			686				—				—				686
Less: maintenance capital expenditures			—				—				—				—
Distributable cash flow		$	63,298			$	10,608			$	(6,963	)		$	66,943
Less: proceeds from asset sales and disposals			(37	)			—				—				(37	)
Free cash flow		$	63,261			$	10,608			$	(6,963	)		$	66,906
Net cash provided by investing activities		$	723			$	—			$	—			$	723
Net cash used in financing activities		$	—			$	—			$	(67,399	)		$	(67,399	)
For the Three Months Ended December 31, 2023
Net cash provided by (used in) operating activities		$	70,147			$	15,306			$	(7,667	)		$	77,786
Add: proceeds from asset sales and disposals			2,002				—				—				2,002
Add: return of long-term contract receivable			633				—				—				633
Less: maintenance capital expenditures			—				—				—				—
Distributable cash flow		$	72,782			$	15,306			$	(7,667	)		$	80,421
Less: proceeds from asset sales and disposals			(2,002	)			—				—				(2,002	)
Free cash flow		$	70,780			$	15,306			$	(7,667	)		$	78,419
Net cash provided by investing activities		$	2,635			$	—			$	—			$	2,635
Net cash used in financing activities		$	—			$	—			$	(86,843	)		$	(86,843	)
For the Three Months Ended September 30, 2024
Net cash provided by (used in) operating activities		$	53,610			$	6,297			$	(5,762	)		$	54,145
Add: proceeds from asset sales and disposals			1				—				—				1
Add: return of long-term contract receivable			673				—				—				673
Less: maintenance capital expenditures			—				—				—				—
Distributable cash flow		$	54,284			$	6,297			$	(5,762	)		$	54,819
Less: proceeds from asset sales and disposals			(1	)			—				—				(1	)
Free cash flow		$	54,283			$	6,297			$	(5,762	)		$	54,818
Net cash provided by investing activities		$	674			$	—			$	—			$	674
Net cash used in financing activities		$	—			$	—			$	(56,259	)		$	(56,259	)

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Distributable Cash Flow and Free Cash Flow
(In thousands)		Mineral Rights				Soda Ash				Corporate and Financing				Total
For the Year Ended December 31, 2024
Net cash provided by (used in) operating activities		$	242,168			$	38,610			$	(32,285	)		$	248,493
Add: proceeds from asset sales and disposals			4,846				—				—				4,846
Add: return of long-term contract receivable			2,665				—				—				2,665
Less: maintenance capital expenditures			—				—				—				—
Distributable cash flow		$	249,679			$	38,610			$	(32,285	)		$	256,004
Less: proceeds from asset sales and disposals			(4,846	)			—				—				(4,846	)
Free cash flow		$	244,833			$	38,610			$	(32,285	)		$	251,158
Net cash provided by investing activities		$	7,511			$	—			$	—			$	7,511
Net cash used in financing activities		$	(1,086	)		$	—			$	(236,463	)		$	(237,549	)
For the Year Ended December 31, 2023
Net cash provided by (used in) operating activities		$	259,983			$	81,207			$	(30,212	)		$	310,978
Add: proceeds from asset sales and disposals			2,963				—				—				2,963
Add: return of long-term contract receivable			2,463				—				—				2,463
Less: maintenance capital expenditures			—				—				(10	)			(10	)
Distributable cash flow		$	265,409			$	81,207			$	(30,222	)		$	316,394
Less: proceeds from asset sales and disposals			(2,963	)			—				—				(2,963	)
Free cash flow		$	262,446			$	81,207			$	(30,222	)		$	313,431
Net cash provided by (used in) investing activities		$	5,426			$	—			$	(10	)		$	5,416
Net cash used in financing activities		$	(583	)		$	—			$	(342,913	)		$	(343,496	)

Leverage Ratio
(In thousands)		For the Year Ended December 31, 2024
Adjusted EBITDA		$	235,466
Debt—at December 31, 2024		$	142,347
Leverage Ratio		0.6x

(In thousands)		For the Year Ended December 31, 2023
Adjusted EBITDA		$	319,664
Debt—at December 31, 2023		$	155,525
Leverage Ratio		0.5x

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250228233398/en/

Tiffany Sammis

713-751-7515

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Coal Energy Natural Resources Mining/Minerals

MEDIA:

Posted on February 28, 2025 6:53 am

ANI Pharmaceuticals Reports Record Fourth Quarter and Full-Year 2024 Financial Results and Raises 2025 Guidance

• Generated record quarterly net revenues of $190.6 million, representing year-over-year growth of 44.8%
• Total Rare Disease quarterly net revenue of $87.0 million, which includes:
  • Record quarterly net revenue for Purified Cortrophin® Gel of $59.4 million, an increase of 42.3% year-over-year, and
  • ILUVIEN® and YUTIQ® net revenues of $27.6
    million in the first full quarter of ownership following the acquisition of Alimera Sciences
• Delivered record quarterly adjusted non-GAAP EBITDA of $50.0 million, an increase of 65.7% year-over-year
• Diluted GAAP loss per share of $(0.55) and adjusted non-GAAP diluted earnings per share of $1.63
• Increased 2025 guidance with exp
  ected net revenues of $756.0 million to $776.0 million and adjusted non-GAAP EBITDA of $190.0 million to $200.0 million; announced adjusted non-GAAP diluted earnings per share guidance of $6.12 to $6.49
• Rare Disease net revenues expected to represent 48% to 49% of total Company net revenues in 2025, including:
  • Purified Cortrophin
    Gel net revenues of $265.0 million to $274.0 million,
    representing year-over-year growth of 33.8% to 38.3%, and
  • ILUVIEN and YUTIQ net revenues of $97.0 million to $103.0 million

BAUDETTE, Minn., Feb. 28, 2025 (GLOBE NEWSWIRE) —  ANI Pharmaceuticals, Inc. (Nasdaq: ANIP) (ANI or the Company) today announced financial results and business highlights for the fourth quarter and full year ended December 31, 2024.

Nikhil Lalwani, President and CEO of ANI stated, “We’re thrilled to report another year of strong execution for ANI, capped by our record fourth quarter results, with total net revenues, adjusted non-GAAP EBITDA, and adjusted non-GAAP diluted EPS all finishing above our previously announced guidance for the full year. Cortrophin Gel generated nearly $200 million in sales during 2024, in just the third year since launch, and our Generics business delivered its third straight year of double-digit growth. In addition, we expanded our Rare Disease business with the addition of the durable ophthalmology franchise of ILUVIEN and YUTIQ, through the acquisition of Alimera Sciences in September.”

“With our business off to a strong start in 2025, particularly Cortrophin Gel, Generics, and Brands, we are raising our 2025 guidance for total net revenues and adjusted non-GAAP EBITDA. On the heels of what was a transformative year for our company, I’d like to thank the ANI team as well as our customers, suppliers, partners, and investors for helping us deliver on our purpose of ‘Serving Patients, Improving Lives,’” concluded Mr. Lalwani.

Change in Segment Reporting

Following the acquisition of Alimera and in accordance with FASB ASC 280, Segment Reporting, the Company has reorganized the segment information that is regularly provided to the chief operating decision maker. Starting in the fourth quarter, the Company is now organized into two reportable segments as follows:

• Rare Disease and Brands: Consists of Rare Disease products Cortrophin Gel, ILUVIEN, and YUTIQ, and a portfolio of approximately 16 branded products that were previously included in Established Brands.

• Generics and Other: Consists of generic pharmaceutical products including those sold through traditional wholesale and retail sales channels, sales of contract manufactured products, royalties on contract manufactured products, and revenue from product development services.

Fourth Quarter and Recent Business Highlights:

Rare Disease and Brands

Revenues for ANI’s lead Rare Disease asset Cortrophin Gel totaled $59.4 million for the fourth quarter of 2024, an increase of 42.3% over the same period in 2023, driven by increased volume from both overall ACTH market growth and share growth. During the quarter, the Company saw increasing demand with the highest number of quarterly new patient starts and new cases initiated since launch, and growth across all targeted specialties – ophthalmology, neurology, rheumatology nephrology and pulmonology. Momentum has continued in the first quarter of 2025 with the number of new cases initiated reaching a new high in February.

Cortrophin Gel remains on a strong multi-year growth trajectory with the overall ACTH category returning to growth in 2024 and the number of patients on ACTH therapy today still substantially lower than it was several years ago. Notably, approximately 40% of Cortrophin Gel prescribers were naïve to the ACTH category prior to prescribing Cortrophin Gel, and approximately 15% of Cortrophin Gel use is for acute gouty arthritis flares for which Cortrophin Gel is the only approved ACTH therapy.

Revenues for ILUVIEN and YUTIQ were $27.6 million for the fourth quarter, which was the first full quarter of ownership following the acquisition of Alimera Sciences. The Company believes there is significant room for growth for both ILUVIEN and YUTIQ given the novel, long-acting nature of the products and size of the addressable markets, and is executing on commercial, clinical, and operational initiatives to capture these growth opportunities. 

ANI has made substantial progress toward increasing supply security for the ILUVIEN and YUTIQ franchise. The Company has submitted a prior approval supplement (PAS) to the FDA seeking to add YUTIQ’s indication of chronic non-infectious uveitis affecting the posterior segment of the eye (NIU-PS) to the ILUVIEN label. The Company expects FDA approval of the PAS in the second quarter of 2025 and plans to market ILUVIEN for chronic NIU-PS in addition to its current indication of diabetic macular edema (DME) in the U.S. For reference, ILUVIEN is already approved and marketed for DME and NIU-PS outside the U.S., including in 17 European countries and the Middle East. In order to support the transition to ILUVIEN, in July 2024, ANI extended its partnership with Siegfried, its long-term supplier for ILUVIEN, through 2029, and contracted with Siegfried to upgrade equipment on the existing manufacturing line and significantly expand capacity through the addition of a second manufacturing line. In conjunction with these initiatives, ANI and EyePoint have agreed to non-renewal of the current supply agreement for supply of YUTIQ by EyePoint to ANI effective May 31, 2025.

Revenues for Brands increased 58.9% to $19.8 million, driven by increased demand for certain products, as has occurred periodically over the past two years. While this additional demand has persisted into the first quarter of 2025, the Company anticipates a normalized performance thereafter for the purpose of full year 2025 guidance.

Generics and Other

ANI’s Generics revenues increased 9.4% to $78.6 million during the quarter, driven by strong R&D capabilities and operational excellence leveraging its U.S.-based manufacturing footprint. The Company launched five new products during the quarter and 17 for the full year. ANI’s strong R&D and commercial productivity continued into the first quarter of 2025 with the launch of Prucalopride Tablets with 180 days of exclusivity.

Fourth Quarter 2024 Financial Results
	Three Months Ended December 31,
(in thousands)	2024		2023		Change			% Change
Rare Disease and Brands
Cortrophin Gel	$	59,400	$	41,749	$	17,651		42.3	%
ILUVIEN and YUTIQ		27,643		–		27,643		100.0	%
Rare Disease total net revenues	$	87,043	$	41,749	$	45,294		108.5	%
Brands		19,842		12,488		7,354		58.9	%
Rare Disease and Brands total net revenues	$	106,885	$	54,237	$	52,648		97.1	%
Generics and Other
Generic pharmaceutical products	$	78,600	$	71,826	$	6,774		9.4	%
Royalties and other pharmaceutical services		5,089		5,591		(502	)	(9.0	)%
Generics and Other total net revenues	$	83,689	$	77,417	$	6,272		8.1	%
Total net revenues	$	190,574	$	131,654	$	58,920		44.8	%

All comparisons are made versus the same period in 2023 unless otherwise stated.

Total net revenues for the fourth quarter of 2024 were $190.6 million, an increase of 44.8% over the prior year period. On an organic basis, excluding the acquisition of Alimera, total net revenues grew 23.8% year-over-year.

Net revenues for Rare Disease, which includes Cortrophin Gel, ILUVIEN and YUTIQ, increased 108.5% to $87.0 million. Cortrophin Gel net revenues increased 42.3% to $59.4 million driven by increased volume. ILUVIEN and YUTIQ generated net revenues of $27.6 million in the first full quarter following the acquisition of Alimera.

Net revenues for Brands increased 58.9% to $19.8 million driven by increased demand.

Net revenues for Generic pharmaceutical products increased 9.4% to $78.6 million driven by increased volumes in the base business and contribution from new products launches.

On a GAAP basis, gross margin decreased from 59.4% to 57.9%, primarily due to significant growth of royalty bearing products, including Cortrophin Gel, and amortization of the inventory fair value step up recognized in conjunction with the acquisition of Alimera. On a non-GAAP basis, gross margin increased from 59.6% to 63.5%, primarily driven by favorable product mix due to higher revenues from Cortrophin Gel and Brands and a full quarter of ILUVIEN and YUTIQ sales.

On a GAAP basis, research and development expenses increased 68.7% to $16.6 million due to expenses related to the NEW DAY and SYNCHRONICITY clinical trials, development of a Cortrophin Gel pre-filled syringe, and ongoing investment in generic R&D programs. On a non-GAAP basis, research and development expenses increased 68.1% to $16.2 million.

On a GAAP basis, selling, general, and administrative expenses increased 56.8% to $69.7 million, resulting from a full quarter of expense associated with the ANI and Alimera combined ophthalmology sales force, continued investment in Rare Disease sales and marketing activities, increased employment-related costs, including incentive-based compensation tied to record 2024 financial performance, and an overall increase in activities required to support the growth of our business. On a non-GAAP basis, selling, general, and administrative expenses increased 41.8% to $54.8 million.

On a GAAP basis, the Company reported a net loss attributable to common shareholders of $10.7 million, or $0.55 per share, for the fourth quarter of 2024 compared to net income of $0.7 million, or $0.04 per share, in the prior year period. On a non-GAAP basis, the Company reported diluted earnings per share of $1.63 for the fourth quarter of 2024 compared to $1.00 in the prior year period.

Adjusted non-GAAP EBITDA for the fourth quarter of 2024 was $50.0 million, an increase of 65.7% from the fourth quarter of 2023.

For reconciliations of adjusted non-GAAP EBITDA and adjusted non-GAAP diluted earnings per share to the most directly comparable GAAP financial measure, please see Table 3 and Table 4 below, respectively. 

Liquidity

As of December 31, 2024, the Company had $144.9 million in unrestricted cash and cash equivalents, $221.7 million in net accounts receivable and $639.2 million in principal value of outstanding debt (inclusive of our senior convertible notes). The Company generated year-to-date cash flow from operations of $64.0 million. 

Revised Full Year 2025 Guidance:
	Full Year 2025 Guidance	Previous Full Year 2025 Guidance	2024 Actual		Growth
Net Revenue (Total Company)	$756 million – $776 million	$739 million – $759 million	$614 million		23% – 26%
Cortrophin Gel Net Revenue	$265 million – $274 million	n/p	$198 million		34% – 38%
ILUVIEN and YUTIQ Net Revenue	$97 million – $103 million	n/p	$32 million		n/m
Adjusted Non-GAAP EBITDA	$190 million – $200 million	$182 million – $192 million	$156 million		22% – 28%
Adjusted Non-GAAP Diluted EPS	$6.12 – $6.49	n/p	$5.20		18% – 25%

n/p – not provided in January 13, 2025 preliminary guidance.

n/m – not meaningful percentage due to comparison of only a partial year of ILUVIEN and YUTIQ Net Revenue in 2024.

ANI expects total company adjusted non-GAAP gross margin between 63% and 64%. The Company will continue to tax effect non-GAAP adjustments for computation of adjusted non-GAAP diluted earnings per share as a tax rate of 26%, unless the item being adjusted is not tax deductible in whole or in part.

The Company anticipates approximately 20.1 million and 20.4 million shares outstanding for the purpose of calculating adjusted non-GAAP diluted EPS and expects its annual U.S. GAAP effective tax rate to be approximately 25%.

Upcoming Events

ANI plans to participate in the following investor events:

Raymond James Annual Institutional Investors Conference
March 4, 2025
Orlando, FL

Leerink Partners Global Healthcare Conference
March 11, 2025
Miami Beach, FL

Conference Call

The Company’s management will host a conference call today to discuss its fourth quarter and full-year 2024 results.

Date                  Time                  Toll free (U.S.)   Conference ID

Friday, February 28, 2025 8:00 a.m. ET 800-579-2543 4860276

This conference call will also be webcast and can be accessed from the “Investors” section of ANI’s website at www.anipharmaceuticals.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.
A replay of the conference call will also be available within two hours of the call’s completion and will remain accessible for two weeks by dialing 800-756-0554 and entering access code 4860276.

Non-GAAP Financial Measures

Adjusted non-GAAP EBITDA

ANI’s management considers adjusted non-GAAP EBITDA to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by non-cash stock-based compensation and differences in capital structures, tax structures, capital investment cycles, ages of related assets, and compensation structures among otherwise comparable companies. Management uses adjusted non-GAAP EBITDA when analyzing Company performance.

Adjusted non-GAAP EBITDA is defined as net (loss) income, excluding tax provision or benefit, interest expense, net, other expense, net, loss on extinguishment of debt, depreciation and amortization expense, non-cash stock-based compensation expense, M&A transaction and integration expenses, contingent consideration fair value adjustments, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations. Adjusted non-GAAP EBITDA should be considered in addition to, but not in lieu of, net income or loss reported under GAAP. A reconciliation of adjusted non-GAAP EBITDA to the most directly comparable GAAP financial measure is provided below.

ANI is not providing a reconciliation for the forward-looking full year 2025 adjusted EBITDA guidance because it does not currently have sufficient information to accurately estimate all of the variables and individual adjustments for such reconciliation, including “with” and “without” tax provision information. As such, ANI’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.

Adjusted non-GAAP Net Income

ANI’s management considers adjusted non-GAAP net income to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by the non-cash stock-based compensation, non-cash interest expense, depreciation and amortization, M&A transaction and integration expenses, contingent consideration fair value adjustment, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, loss on extinguishment of debt, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations. Management uses adjusted non-GAAP net income when analyzing Company performance.

Adjusted non-GAAP net income is defined as net (loss) income, plus the non-cash stock-based compensation, non-cash interest expense, depreciation and amortization, M&A transaction and integration expenses, contingent consideration fair value adjustment, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, loss on extinguishment of debt, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations, less the tax impact of these adjustments calculated using an estimated statutory tax rate. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI’s results. Adjusted non-GAAP net income should be considered in addition to, but not in lieu of, net income reported under GAAP. A reconciliation of adjusted non-GAAP net income to the most directly comparable GAAP financial measure is provided below.

Adjusted non-GAAP Diluted Earnings per Share






ANI’s management considers adjusted non-GAAP diluted earnings per share to be an important financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by the non-cash stock-based compensation, non-cash interest expense, depreciation and amortization, M&A transaction and integration expenses, contingent consideration fair value adjustment, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, loss on extinguishment of debt, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations. Management uses adjusted non-GAAP diluted earnings per share when analyzing Company performance.

Adjusted non-GAAP diluted earnings per share is defined as adjusted non-GAAP net income, as defined above, divided by the diluted weighted average shares outstanding during the period. Management will continually analyze this metric and may include additional adjustments in the calculation in order to provide further understanding of ANI’s results. Adjusted non-GAAP diluted earnings per share should be considered in addition to, but not in lieu of, diluted earnings (loss) per share reported under GAAP. A reconciliation of adjusted non-GAAP diluted earnings per share to the most directly comparable GAAP financial measure is provided below.

ANI is not providing a reconciliation for the forward-looking full year 2025 adjusted diluted earnings per share guidance because it does not currently have sufficient information to accurately estimate all of the variables and individual adjustments for such reconciliation, including “with” and “without” tax provision information. As such, ANI’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.

Other non-GAAP metrics

ANI’s management considers non-GAAP research and development expenses and non-GAAP selling, general, and administrative expenses to be financial indicators of ANI’s operating performance, providing investors and analysts with useful measures of operating results unaffected by non-cash stock-based compensation expense, M&A transaction and integration expenses, contingent consideration fair value adjustments, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations.

Management uses adjusted non-GAAP research and development expenses and non-GAAP selling, general, and administrative expenses when analyzing Company performance.

Non-GAAP research and development expenses is defined as research and development expenses, excluding non-cash stock-based compensation expense, M&A transaction and integration expenses, and certain other items that vary in frequency and impact on ANI’s results of operations.

Non-GAAP selling, general, and administrative expenses is defined as selling, general, and administrative expenses, excluding impact of Canada operations, non-cash stock-based compensation expense, M&A transaction and integration expenses, litigation expenses related to certain matters, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations.

Each of adjusted non-GAAP research and development expenses and non-GAAP selling, general, and administrative expenses should be considered in addition to, but not in lieu of, research and development expenses, and selling, general, and administrative expenses reported under GAAP, respectively.

A reconciliation of each of non-GAAP research and development expenses and non-GAAP selling, general and administrative expenses to the most directly comparable GAAP financial measure is provided below.

ANI’s management also considers non-GAAP gross margin to be a financial indicator of ANI’s operating performance, providing investors and analysts with a useful measure of operating results unaffected by unaffected by non-cash stock-based compensation expense, M&A transaction and integration expenses, contingent consideration fair value adjustments, unrealized gain on our investment in equity securities, gain on sale of the former Oakville, Ontario manufacturing site, litigation expenses related to certain matters, amortization of certain purchase price adjustments, severance expense, and certain other items that vary in frequency and impact on ANI’s results of operations. Management uses non-GAAP gross margin when analyzing Company performance.

Non-GAAP gross margin is defined as adjusted non-GAAP net revenues less non-GAAP cost of sales (excluding depreciation and amortization) divided by non-GAAP net revenues. Non-GAAP gross margin should be considered in addition to, but not in lieu of, gross margin reported under GAAP.

About ANI

ANI Pharmaceuticals, Inc. (Nasdaq: ANIP) is a diversified biopharmaceutical company committed to its mission of “Serving Patients, Improving Lives” by developing, manufacturing, and commercializing innovative and high-quality therapeutics. The Company is focused on delivering sustainable growth through its Rare Disease business, which markets novel products in the areas of ophthalmology, rheumatology, nephrology, neurology, and pulmonology; its Generics business, which leverages R&D expertise, operational excellence, and U.S.-based manufacturing; and its Brands business. For more information, visit www.anipharmaceuticals.com.

Forward-Looking Statements

To the extent any statements made in this release deal with information that is not historical, these are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, those relating to the commercialization and potential sales of the product and any additional product launches from the Company’s generic pipeline, 2025 guidance, other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “plans,” “potential,” “future,” “believes,” “intends,” “continue,” other words of similar meaning, derivations of such words and the use of future dates.

Uncertainties and risks may cause the Company’s actual results to be materially different than those expressed in or implied by such forward-looking statements. Uncertainties and risks include, but are not limited to: the ability of our approved products, including Cortrophin Gel, ILUVIEN and YUTIQ, to achieve commercialization at levels of market acceptance that will continue to allow us to achieve profitability; our ability to complete or achieve any, or all of the intended benefits of acquisitions and investments, including the acquisition of Alimera, in a timely manner or at all; the limitation of our cash flow as a result of the indebtedness and liabilities incurred from the recent acquisition of Alimera; the risks that our acquisitions and investments, including the recent acquisition of Alimera, could disrupt our business and harm our financial position and operating results; delays and disruptions in production of our approved products, increased costs and potential loss of revenues if we need to change suppliers due to the limited number of suppliers for our raw materials, active pharmaceutical ingredients, expedients, and other materials; delays and disruptions in production of our approved products as a result of our reliance on single source third party contract manufacturing supply for certain of our key products, including Cortrophin Gel, ILUVIEN and YUTIQ; delays or failure in obtaining and maintaining approvals by the FDA of the products we sell; changes in policy or actions that may be taken by the FDA, United States Drug Enforcement Administration and other regulatory agencies, and the focus of the current U.S. presidential administration, including among other things, drug recalls, regulatory approvals, facility inspections and potential enforcement actions; risks that we may face with respect to importing raw materials and delays in delivery of raw materials and other ingredients and supplies necessary for the manufacture of our products from both domestic and overseas sources due to supply chain disruptions or for any other reason; the ability of our manufacturing partners to meet our product demands and timelines; the impact of changes or fluctuations in exchange rates; our ability to develop, license or acquire, and commercialize new products; our obligations in agreements under which we license, develop or commercialize rights to products or technology from third parties and our ability to maintain such licenses; the level of competition we face and the legal, regulatory and/or legislative strategies employed by our competitors to prevent or delay competition from generic alternatives to branded products; our ability to protect our intellectual property rights; the impact of legislative or regulatory reform on the pricing for pharmaceutical products; the impact of any litigation to which we are, or may become, a party; our ability, and that of our suppliers, development partners, and manufacturing partners, to comply with laws, regulations and standards that govern or affect the pharmaceutical and biotechnology industries; our ability to maintain the services of our key executives and other personnel; and general business and economic conditions, such as inflationary pressures, geopolitical conditions including but not limited to the conflict between Russia and the Ukraine, the conflict in the Middle East, conflicts related to the attacks on cargo ships in the Red Sea, and the effects and duration of outbreaks of public health emergencies, and other risks and uncertainties that are described in ANI’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other periodic reports filed with the Securities and Exchange Commission.

More detailed information on these and additional factors that could affect the Company’s actual results are described in the Company’s filings with the Securities and Exchange Commission (SEC), including its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other filings with the SEC. All forward-looking statements in this news release speak only as of the date of this news release and are based on the Company’s current beliefs, assumptions, and expectations. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact Lisa M. Wilson, In-Site Communications, Inc.

212-452-2793  
[email protected]

SOURCE: ANI Pharmaceuticals, Inc.

FINANCIAL TABLES FOLLOW

ANI Pharmaceuticals, Inc. and Subsidiaries
Table 1: US GAAP Statements of Operations
(unaudited, in thousands, except per share amounts)
	Three Months Ended December 31,							Twelve Months Ended December 31,
		2024			2023				2024			2023
Net Revenues	$	190,574		$	131,654			$	614,376		$	486,816
Operating Expenses
Cost of sales (excluding depreciation and amortization)		80,280			53,420				250,210			181,513
Research and development		16,646			9,867				44,581			34,286
Selling, general, and administrative		69,719			44,462				249,636			161,697
Depreciation and amortization		22,600			15,194				67,731			59,791
Contingent consideration fair value adjustment		(1,893	)		1,985				(619	)		1,426
Gain on sale of building		–			–				(5,347	)		–
Restructuring activities		–			–				–			1,132
Intangible asset impairment charge		7,600			–				7,600			–
Total Operating Expenses, net		194,952			124,928				613,792			439,845
Operating (Loss) Income		(4,378	)		6,726				584			46,971
Other Expense, net
Unrealized (loss) gain on investment in equity securities		(1,991	)		–				6,307			–
Interest expense, net		(6,015	)		(5,746	)			(17,602	)		(26,940	)
Other expense, net		(1,378	)		(33	)			(4,033	)		(159	)
Loss on extinguishment of debt		–			–				(7,468	)		–
Income (Loss) Before (Benefit) Expense for Income Taxes		(13,762	)		947				(22,212	)		19,872
Income tax (benefit) expense		(3,486	)		(208	)			(3,690	)		1,093
Net (Loss) Income	$	(10,276	)	$	1,155			$	(18,522	)	$	18,779
Dividends on Series A Convertible Preferred Stock		(406	)		(406	)			(1,625	)		(1,625	)
Net (Loss) Income Available to Common Shareholders	$	(10,682	)	$	749			$	(20,147	)	$	17,154
Basic and Diluted (Loss) Income Per Share:
Basic (Loss) Income Per Share	$	(0.55	)	$	0.04			$	(1.04	)	$	0.86
Diluted (Loss) Income Per Share	$	(0.55	)	$	0.04			$	(1.04	)	$	0.85
Basic Weighted-Average Shares Outstanding		19,445			19,003				19,318			18,001
Diluted Weighted-Average Shares Outstanding		19,445			19,219				19,318			18,194

ANI Pharmaceuticals, Inc. and Subsidiaries
Table 2: US GAAP Balance Sheets
(unaudited, in thousands)
	December 31, 2024				December 31, 2023
Current Assets
Cash and cash equivalents	$	144,861			$	221,121
Restricted cash		33				–
Accounts receivable, net		221,726				162,079
Inventories		136,782				111,196
Assets held for sale		–				8,020
Prepaid expenses and other current assets		17,975				17,400
Investment in equity securities		6,307				–
Total Current Assets		527,684				519,816
Non-current Assets
Property and equipment, net		56,863				44,593
Deferred tax assets, net of deferred tax liabilities and valuation allowance		85,106				90,711
Intangible assets, net		541,834				209,009
Goodwill		59,990				28,221
Derivatives and other non-current assets		12,220				12,072
Total Assets	$	1,283,697			$	904,422
Current Liabilities
Current debt, net of deferred financing costs		9,172				850
Accounts payable		45,656				36,683
Accrued royalties		22,626				16,276
Accrued compensation and related expenses		37,725				23,786
Accrued government rebates		18,714				12,168
Income taxes payable		6,749				8,164
Returned goods reserve		39,274				29,678
Current contingent consideration		29				12,266
Accrued expenses and other		13,735				5,606
Total Current Liabilities		193,680				145,477
Non-current Liabilities
Non-current debt, net of deferred financing costs and current component		309,108				284,819
Non-current convertible notes, net of deferred financing costs		305,812				–
Non-current contingent consideration, net of current		19,825				11,718
Accrued licensor payments due		20,961				–
Other non-current liabilities		5,781				4,809
Total Liabilities	$	855,167			$	446,823
Mezzanine Equity
Convertible Preferred Stock, Series A		24,850				24,850
Stockholders’ Equity
Common Stock		2				2
Class C Special Stock		–				–
Preferred Stock		–				–
Treasury stock		(21,040	)			(10,081	)
Additional paid-in capital		519,653				514,103
Accumulated deficit		(100,279	)			(80,132	)
Accumulated other comprehensive income, net of tax		5,344				8,857
Total Stockholders’ Equity		403,680				432,749
Total Liabilities, Mezzanine Equity, and Stockholders’ Equity	$	1,283,697			$	904,422

ANI Pharmaceuticals, Inc. and Subsidiaries
Table 3: Adjusted non-GAAP EBITDA Calculation and US GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
										Reconciliation of certain adjusted non-GAAP accounts:
										Net Revenues					Cost of sales (excluding depreciation and amortization)						Selling, general, and administrative						Research and development
	Three Months Ended December 31,									Three Months Ended December 31,					Three Months Ended December 31,						Three Months Ended December 31,						Three Months Ended December 31,
	2024			2023						2024		2023			2024			2023			2024			2023			2024			2023
Net (Loss) Income	$	(10,276	)	$	1,155			As reported:		$	190,574	$	131,654		$	80,280		$	53,420		$	69,719		$	44,462		$	16,646		$	9,867
Add/(Subtract):
Interest expense, net		6,015			5,746
Other expense, net		1,378			33
(Benefit) provision for income taxes		(3,486	)		(208	)
Depreciation and amortization		22,600			15,194
Contingent consideration fair value adjustment		(1,893	)		1,985
Unrealized loss on investment in equity securities		1,991			—
Intangible asset impairment charge		7,600			—
Impact of Canada operations (1)		—			283			Impact of Canada operations (1)			—		—			—			(51	)		—			(232	)		—			—
Stock-based compensation		7,061			5,621			Stock-based compensation			—		—			(367	)		(185	)		(6,233	)		(5,196	)		(461	)		(240	)
M&A transaction and integration expenses		5,965			391			M&A transaction and integration expenses			—		—			—			—			(5,965	)		(391	)		—			—
Litigation expenses		1,657			—			Litigation expenses			—		—			—			—			(1,657	)		—			—			—
Inventory step-up amortization		10,375			—			Inventory step-up amortization			—		—			(10,375	)		—			—			—			—			—
Severance		1,057			—			Severance			—		—			—			—			(1,057	)		—			—			—
Adjusted non-GAAP EBITDA	$	50,044		$	30,200			As adjusted:		$	190,574	$	131,654		$	69,538		$	53,184		$	54,807		$	38,643		$	16,185		$	9,627
(1) Impact of Canada operations includes CDMO revenues, cost of sales relating to CDMO revenues, all selling, general, and administrative expenses, and all research and development expenses recorded in Canada in the period presented, exclusive of restructuring activities, stock-based compensation, and depreciation and amortization, which are included within their respective line items above. The adjustment of Canada operations represents revenues, cost of sales and expense that will not recur after the completion of the closure of our Canada operations (complete as of March 31, 2023) and the sale of the facility (complete as of March 31, 2024). The adjustment of Canada operations does not adjust for revenues, cost of sales, and expense that will recur at our other manufacturing facilities after the transfer of certain manufacturing activities is complete.
										Reconciliation of certain adjusted non-GAAP accounts:
										Net Revenues					Cost of sales (excluding depreciation and amortization)						Selling, general, and administrative						Research and development
	Twelve Months Ended December 31,									Twelve Months Ended December 31,					Twelve Months Ended December 31,						Twelve Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023						2024		2023			2024			2023			2024			2023			2024			2023
Net (Loss) Income	$	(18,522	)	$	18,779			As reported:		$	614,376	$	486,816		$	250,210		$	181,513		$	249,636		$	161,697		$	44,581		$	34,286
Add/(Subtract):
Interest expense, net		17,602			26,940
Other expense, net		4,033			159
Loss on extinguishment of debt		7,468			—
(Benefit) provision for income taxes		(3,690	)		1,093
Depreciation and amortization		67,731			59,791
Contingent consideration fair value adjustment		(619	)		1,426
Unrealized gain on investment in equity securities		(6,307	)		—
Intangible asset impairment charge		7,600			—
Gain on sale of building		(5,347	)		—
Restructuring activities		—			1,132
Impact of Canada operations(1)		—			2,697			Impact of Canada operations(1)			—		(565	)		—			(1,884	)		—			(1,304	)		—			(73	)
Stock-based compensation		29,344			20,652			Stock-based compensation			—		—			(1,277	)		(706	)		(26,533	)		(19,036	)		(1,534	)		(910	)
M&A transaction and integration expenses		20,163			1,148			M&A transaction and integration expenses			—		—			—			—			(20,163	)		(1,148	)		—			—
Litigation expenses		6,395			—			Litigation expenses			—		—			—			—			(6,395	)		—			—			—
Inventory step-up amortization		13,599			—			Inventory step-up amortization			—		—			(13,599	)		—			—			—			—			—
Severance		6,365			—			Severance			—		—			—			—			(6,365	)		—			—			—
Equity Payout		10,190			—			Equity Payout			—		—			—			—			(9,171	)		—			(1,019	)		—
Adjusted non-GAAP EBITDA	$	156,005		$	133,817			As adjusted:		$	614,376	$	486,251		$	235,334		$	178,923		$	181,009		$	140,209		$	42,028		$	33,303
(1) Impact of Canada operations includes CDMO revenues, cost of sales relating to CDMO revenues, all selling, general, and administrative expenses, and all research and development expenses recorded in Canada in the period presented, exclusive of restructuring activities, stock-based compensation, and depreciation and amortization, which are included within their respective line items above. The adjustment of Canada operations represents revenues, cost of sales and expense that will not recur after the completion of the closure of our Canada operations (complete as of March 31, 2023) and the sale of the facility (complete as of March 31, 2024). The adjustment of Canada operations does not adjust for revenues, cost of sales, and expense that will recur at our other manufacturing facilities after the transfer of certain manufacturing activities is complete.

ANI Pharmaceuticals, Inc. and Subsidiaries
Table 4: Adjusted non-GAAP Net Income and Adjusted non-GAAP Diluted Earnings per Share Reconciliation
(unaudited, in thousands, except per share amounts)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
Net (Loss) Income Available to Common Shareholders	$	(10,682	)	$	749		$	(20,147	)	$	17,154
Add/(Subtract):
Non-cash interest expense		232			804			149			3,335
Depreciation and amortization		22,600			15,194			67,731			59,791
Contingent consideration fair value adjustment		(1,893	)		1,985			(619	)		1,426
Restructuring activities		—			—			—			1,132
Gain on sale of building		—			—			(5,347	)		—
Unrealized loss (gain) on investment in equity securities		1,991			—			(6,307	)		—
Intangible asset impairment charge		7,600			—			7,600			—
Impact of Canada operations (1)		—			283			—			2,697
Stock-based compensation		7,061			5,621			29,344			20,652
M&A transaction and integration expenses		5,965			391			20,163			1,148
Litigation expenses		1,657			—			6,395			—
Inventory step-up amortization		10,375			—			13,599			—
Severance		1,057			—			6,365			—
Equity payout		—			—			10,190			—
Loss on extinguishment of debt		—			—			7,468			—
Other expense		1,335			—			3,869			—
Less:
Estimated tax impact of adjustments		(15,021	)		(5,827	)		(38,154	)		(21,643	)
Adjusted non-GAAP Net Income Available to Common Shareholders (2)	$	32,277		$	19,200		$	102,299		$	85,692
Diluted Weighted-Average
Shares Outstanding		19,445			19,219			19,318			18,194
Adjusted Diluted Weighted-Average
Shares Outstanding		19,785			19,219			19,668			18,194
Adjusted non-GAAP
Diluted Earnings per Share	$	1.63		$	1.00		$	5.20		$	4.71
(1) Impact of Canada operations includes CDMO revenues, cost of sales relating to CDMO revenues, all selling, general, and administrative expenses, and all research and development expenses recorded in Canada in the period presented, exclusive of restructuring activities, stock-based compensation, and depreciation and amortization, which are included within their respective line items above. The adjustment of Canada operations represents revenues, cost of sales and expense that will not recur after the completion of the closure of our Canada operations (complete as of March 31, 2023) and the sale of the facility (complete as of March 31, 2024). The adjustment of Canada operations does not adjust for revenues, cost of sales, and expense that will recur at our other manufacturing facilities after the transfer of certain manufacturing activities is complete.
(2) Adjusted non-GAAP Net Income Available to Common Shareholders excludes undistributed earnings to participating securities.